Horseway Energy Ltd - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: 08909433 (England and Wales)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2023

FOR

HORSEWAY ENERGY LTD

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

N L Allpress

P W Allpress

REGISTERED OFFICE:

Hollyhouse Farm

Horseway

Chatteris

Cambridgeshire

PE16 6XQ

REGISTERED NUMBER:

08909433 (England and Wales)

AUDITORS:

Thompson Taraz Rand Audit and Assurance Limited

Statutory Auditors

10 Jesus Lane

Cambridge

Cambridgeshire

CB5 8BA

FIXED ASSETS

Tangible assets

5

1,588,035

1,577,992

Investments

6

20

20

1,588,055

1,578,012

CURRENT ASSETS

Stocks

192,204

256,656

Debtors

7

1,849,601

1,262,054

Cash at bank

154,886

67,935

2,196,691

1,586,645

CREDITORS

Amounts falling due within one year

8

(273,734

)

(95,208

)

NET CURRENT ASSETS

1,922,957

1,491,437

TOTAL ASSETS LESS CURRENT LIABILITIES

3,511,012

3,069,449

PROVISIONS FOR LIABILITIES

9

(314,102

)

(285,671

)

NET ASSETS

3,196,910

2,783,778

CAPITAL AND RESERVES

Called up share capital

10

1,985,000

1,985,000

Share premium

515,000

515,000

Retained earnings

696,910

283,778

SHAREHOLDERS' FUNDS

3,196,910

2,783,778

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Profit and loss account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 26 March 2024 and were signed on its behalf by:

N L Allpress - Director

1.	STATUTORY INFORMATION

Horseway Energy Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Revenue recognition

Revenue is recognised in respect of the sale of electricity and feed stocks to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

- the Company has transferred the significant risks and rewards of ownership to the buyer;

- the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

- the amount of revenue can be measured reliably; it is probable that the Company will receive the

consideration due under the transaction; and

- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Depreciation is provided on the following basis:

Temporary buildings - 5% straight line

Plant and machinery - 5-25% straight line

Culture - 20% straight line

Subsequent Expenditure and Major Inspections:

Subsequent expenditure shall add to the carrying amount of an item of property, plant and equipment the cost of replacing part of such an item when that cost is incurred if the replacement part is expected to provide incremental future benefits to the entity. The carrying amount of those parts that are replaced are derecognised through the profit and loss account.

When each major inspection is performed, its cost is recognised in the carrying amount of the item of property, plant and equipment as a replacement if the recognition criteria are satisfied. Any remaining carrying amount of the cost of the previous major inspection (as distinct from physical parts) is derecognised through the profit and loss account.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Financial instruments

Basic financial assets and basic financial liabilities as defined under section 11 of FRS 102, including trade and other debtors, trade and other creditors, cash and bank balances and investments in commercial paper, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with significant risk of change in value.

Finance costs

Finance costs are charged to the profit and loss account over the term of the debt using the effective interest method s that the amount charged is at a constant rate on the carrying amount. Issue and transaction costs are initially recognised as a reduction in the proceeds of the associated capital instrument and amortised to the profit and loss account over the term of the capital instrument.

Going concern

The year under review for Horseway Energy Ltd has remained challenging despite the overall improvement to the performance of the company. This is primarily due to the increase in the per kilo watt hour of cost electricity.

The Directors acknowledge the challenging trading conditions experienced by fellow subsidiary companies withing the group, who owe the Company significant sums at the balance sheet date and post year end.The going concern status of Horseway Energy is largely dependant on the return to profitability of its fellow group company and its ability to service the intercompany due to Horseway Energy .moving through 2024 and into 2025.

The director's having reviewed the position of the overall group for the 2024 financial year to date and note that the group has returned to a profitable and sustainable position in 2024 as a result of:

- Securing retail contracts that reflect the recent inflationary increases.

- Continuing to invest in new technologies to improve crop yields, mitigating the recent extreme weather patterns.

- Continuing to invest in processing facilities to improve efficiencies and mitigate rising labour costs.

- Carrying out a restructure resulting in a more streamlined and focussed processing operation.

For 2025 the Directors are confident the business will continue to generate sustainable profit levels and will continue to invest in facilities and infrastructure to ensure future success.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was NIL (2022 - NIL).

5.	TANGIBLE FIXED ASSETS

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST

At 1 July 2022

2,400

2,695,215

2,697,615

Additions

-

159,975

159,975

At 30 June 2023

2,400

2,855,190

2,857,590

DEPRECIATION

At 1 July 2022

900

1,118,723

1,119,623

Charge for year

120

149,812

149,932

At 30 June 2023

1,020

1,268,535

1,269,555

NET BOOK VALUE

At 30 June 2023

1,380

1,586,655

1,588,035

At 30 June 2022

1,500

1,576,492

1,577,992

6.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 July 2022

and 30 June 2023

20

NET BOOK VALUE

At 30 June 2023

20

At 30 June 2022

20

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Trade debtors

-

1,427

Amounts owed by group undertakings

1,775,516

1,163,791

Other debtors

74,085

96,836

1,849,601

1,262,054

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Trade creditors

192,870

37,519

Amounts owed to group undertakings

-

21,528

Taxation and social security

-

4,787

Other creditors

80,864

31,374

273,734

95,208

9.	PROVISIONS FOR LIABILITIES

2023

2022

£

£

Deferred tax

314,102

285,671

Deferred

tax

£

Balance at 1 July 2022

285,671

Provided during year

28,431

Balance at 30 June 2023

314,102

Deferred tax is recognised in respect of the excess of capital allowances over depreciation.

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2023

2022

value:

£

£

500,000

Ordinary A

1p

5,000

5,000

2,000,000

Ordinary B

99p

1,980,000

1,980,000

1,985,000

1,985,000

11.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Andrew Rand (Senior Statutory Auditor)

for and on behalf of Thompson Taraz Rand Audit and Assurance Limited

We draw attention to page 5 at note 3 of the financial statements The company has provided financial support to a fellow group company to enable those group companies to meet the increased cost of lending following the consequential increases to the Bank of England Base Rate.As stated on page 5 these events and conditions along with other matters set forth indicate that a material uncertainty that may cast significant doubt over the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

12.	RELATED PARTY DISCLOSURES

At the balance sheet date the company had an outstanding debtor due on a intercompany account due from its ultimate parent company of £664,925 (2022: £659,125). This balance is interest free and repayable on demand.

At the balance sheet date loans amounting to £1,110,591 (2022:£483,138) were due to the company from fellow subsidiary companies. These balances are interest free and repayable on demand.

13.	ULTIMATE CONTROLLING PARTY

The company is a wholly owned subsidiary of Horseway Holdings Limited, a company incorporated in England & Wales, copies of the consolidated financial statements can be obtained from the Company's Registered office Address of Hollyhouse Farm, Horseway, Chatteris, PE16 6XQ.

ULTIMATE CONTROLLING PARTY

The ultimate controlling parties are N L Allpress and P W Allpress, who own the entire share capital of Horseway Holdings Limited equally.