Fraddon Biogas Limited - Period Ending 2016-12-31

Fraddon Biogas Limited

Annual Report and Unaudited Financial Statements
Year Ended 31 December 2016

Registration number: 08803919

Fraddon Biogas Limited

Contents

Company Information	1
Balance Sheet	2 to 3
Notes to the Financial Statements	4 to 7

Fraddon Biogas Limited

Company Information

Directors

Mr W K Reed Mr A Laniado

Registered office

Cleave Farm Templeton Tiverton Devon EX16 8BP

Accountants

Francis Clark LLP Chartered Accountants Vantage Point Woodwater Park Pynes Hill Exeter EX2 5FD

Page 1

Fraddon Biogas Limited

Balance Sheet

31 December 2016

	Note	2016 £	2015 £
Fixed assets
Tangible assets	4	8,692,572	8,640,605
Current assets
Debtors	5	871,988	548,664
Cash at bank and in hand		-	19,827
		871,988	568,491
Creditors: Amounts falling due within one year	6	(1,492,117)	(657,304)
Net current liabilities		(620,129)	(88,813)
Total assets less current liabilities		8,072,443	8,551,792
Creditors: Amounts falling due after more than one year	6	(9,695,387)	(8,439,455)
Net (liabilities)/assets		(1,622,944)	112,337
Capital and reserves
Called up share capital		20	20
Share premium reserve		2,214,533	2,214,533
Profit and loss account		(3,837,497)	(2,102,216)
Total equity		(1,622,944)	112,337

The notes on pages 4 to 7 form an integral part of these financial statements.

Page 2

Fraddon Biogas Limited

Balance Sheet

31 December 2016

For the financial year ending 31 December 2016 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved and authorised by the Board on 23 March 2017 and signed on its behalf by:
 

.........................................

Mr A Laniado

Director

Company Registration Number: 08803919

The notes on pages 4 to 7 form an integral part of these financial statements.

Page 3

Fraddon Biogas Limited

Notes to the Financial Statements

Year Ended 31 December 2016

1	General information

The company is a private company limited by share capital incorporated in England and Wales.

The address of its registered office is:
Cleave Farm
Templeton
Tiverton
Devon
EX16 8BP

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

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 Section 1A, and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Change in basis of accounting

The company's financial statements have been prepared in accordance with FRS102 - the Financial Reporting Standard applicable in the UK and Republic of Ireland. The company has transferred from previously extant UK GAAP to FRS102 as at 1 January 2014. There is no material impact on the reported financial position and financial performance.

There are no material departures from FRS102.

Going concern

The financial statements have been prepared on a going concern basis. The directors have prepared cashflow projections which show that the plant generates sufficient future income to be considered a going concern for the foreseeable future.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Page 4

Fraddon Biogas Limited

Notes to the Financial Statements

Year Ended 31 December 2016

Asset class	Depreciation method and rate
Plant and machinery	5% straight line

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Bank loans; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.


 

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 2 (2015 - 2).

Page 5

Fraddon Biogas Limited

Notes to the Financial Statements

Year Ended 31 December 2016

4	Tangible assets

	Plant and machinery  £	Total £
Cost or valuation
At 1 January 2016	8,900,196	8,900,196
Additions	515,109	515,109
At 31 December 2016	9,415,305	9,415,305
Depreciation
At 1 January 2016	259,591	259,591
Charge for the year	463,142	463,142
At 31 December 2016	722,733	722,733
Carrying amount
At 31 December 2016	8,692,572	8,692,572
At 31 December 2015	8,640,605	8,640,605

5

Debtors

	2016  £	2015  £
Trade debtors	138	3,959
Other debtors	36,510	206,780
Prepayments	835,340	337,925
	871,988	548,664

6

Creditors

	Note	2016  £	2015  £
Due within one year
Bank overdrafts		965,968	116,269
Trade creditors		384,627	379,285
Other creditors		569	-
Accrued expenses		140,953	161,750
		1,492,117	657,304
Due after one year
Loan notes held by equity shareholders (secured)		9,695,387	8,439,455

Page 6

Fraddon Biogas Limited

Notes to the Financial Statements

Year Ended 31 December 2016

Included in creditors are the following amounts due after more than five years:

Loan notes held by equity shareholders

The company has issued debentures that are repayable 20 years from the date of issue. Interest is accrued at 12.5%. The debentures are secured on the assets of the company.

	2016 £	2015 £
After more than five years not by instalments	9,695,387	8,439,455

7	Financial commitments, guarantees and contingencies

The total amount of financial commitments not included in the balance sheet is £1,940,000 (2015 - £2,030,000).

Page 7