FULL_CIRCLE_POWER_LIMITED - Accounts

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

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

Full Circle Power Limited is a private company limited by shares incorporated in Northern Ireland. The registered office is 56 Craigmore Road, Ringsend, Garvagh, Co Londonderry, BT51 5HF.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The principal accounting policies adopted are set out below.

These financial statements for the year ended 30 June 2017 are the first financial statements of Full Circle Power Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 July 2015. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Details of the company's subsidiaries at 30 June 2017 are as follows:

The Bank of Ireland holds security for banking facilities it provides to River Ridge Holdings Limited and River Ridge Recycling (Portadown) Limited. Security for these debts are provided by River Ridge Holdings Limited and its subsidiary companies, which includes Full Circle Power Limited. Specific details of the security are as follows:

• A first mortgage / charge over each of the following properties:

• 56 Craigmore Road, Garvagh, Co. Derry BT51 5HF

• Unit 5 Newbuildings Industrial Estate, Victoria Road, Newbuildings, Co. Derry BT47 2SX

• Enviropac, Electra Road, Maydown, Co. Derry BT47 6UL

• 91 Moy Road, Portadown, Co. Armagh BT62 1QW

• 110-114 Duncrue Street, Belfast BT3 9AR

• 105 Limestone Road, Belfast BT15 3AB

• A first ranking debenture in respect of - River Ridge Holdings Limited, River Ridge Recycling (Portadown) Limited, River Ridge Recycling Limited, River Ridge Energy Limited, Full Circle Power Limited, Pioneer Fuels Limited, Coleraine Skip Hire & Recycling Limited, River Ridge Recycling (Belfast) Limited, Wastebeater (Belfast) Limited - charging all of their assets and undertakings;

• An inter-company cross guarantee from River Ridge Holdings Limited, River Ridge Recycling (Portadown) Limited, River Ridge Recycling Limited, River Ridge Energy Limited, Full Circle Power Limited, Pioneer Fuels Limited, Coleraine Skip Hire & Recycling Limited, River Ridge Recycling (Belfast) Limited and Wastebeater (Belfast) Limited;

• A charge over (i) the shares held by River Ridge Holdings Limited in Coleraine Skip Hire & Recycling Limited, River Ridge Recycling Limited and River Ridge Energy Limited (ii) the shares held by Coleraine Skip Hire & Recycling Limited in Full Circle Power Limited and Pioneer Fuels Limited (iii) the shares held by River Ridge Recycling Limited in River Ridge Recycling (Portadown) Limited and River Ridge (Belfast) Limited (iv) the shares held by Full Circle Power Limited in River Ridge Energy Limited; and, (v) the shares held by River Ridge Recycling (Portadown) Limited in Full Circle Power Limited, Pioneer Fuels Limited and Wastebeater (Belfast) Limited;

• An assignment of the life policy on the life of Mr. Brett Ross with cover in the sum of £3 million;

• A Subordination Deed in the form agreed between inter alia the Bank, BGF and the Borrower;

• A deposit of all environmental licenses of the Group with the Bank together with a signed, completed and updated license transfer form and power of attorney in respect of each license;

• A first fixed charge over the trade debtors of the Group;

• A deed of confirmation in respect of all existing security.

The company has three classes of ordinary shares which entitles the holders to receive notice of and attend, speak and vote at all general meetings.

As the income statement has been omitted from the filing copy of the financial statements the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Turnover represents amounts invoiced to Full Circle Generation Ltd, a company in which Mr Brett Ross is a director. There was no amount outstanding at the year end (2016 - £76,080).

Included within debtors, note 10, is an amount of £Nil (2016 - £17,410) due from Coleraine Skip Hire & Recycling Limited.

During the year a management charge of £Nil (2016 - £228,080) was paid to Coleraine Skip Hire & Recycling Limited.

During the year a management charge of £20,000 (2016 - £Nil) was paid to River Ridge Holdings Limited.

At the balance sheet date Coleraine Skip Hire & Recycling Limited owned 80% of Full Circle Power Limited. In addition River Ridge Holdings Limited owned 100% of Coleraine Skip Hire & Recycling Limited.

Included within debtors, note 10, is an amount of £66,108 (2016 - £Nil) due from River Ridge Energy Ltd. At the balance sheet date Full Circle Power Limited owned 20% of River Ridge Energy Ltd.

Included within creditors, note 11, is an amount of £2,500 (2016 - £Nil) due to River Ridge Recycling (Portadown) Ltd. At the balance sheet date River Ridge Recycling (Portadown) Ltd owned 10% of Full Circle Power Limited.

The immediate controlling party is Coleraine Skip Hire & Recycling Limited, a company registered in Northern Ireland.