Ayrenergy Ltd - Accounts to registrar (filleted) - small 18.1

REGISTERED NUMBER: SC363794 (Scotland)

Unaudited Financial Statements

for the Year Ended 31 August 2017

for

Ayrenergy Ltd

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

N J Skea

Mrs L K Skea

W J H Kirkness

SECRETARY:

Mrs L K Skea

REGISTERED OFFICE:

Barns of Ayre

Deerness

Orkney

KW17 2QJ

REGISTERED NUMBER:

SC363794 (Scotland)

ACCOUNTANTS:

Foubister & Bain

4 Broad Street

Kirkwall

Orkney

KW15 1NX

FIXED ASSETS

4,407,659

Tangible assets

3

4,147,417

CURRENT ASSETS

143,507

Debtors

4

183,621

579,001

Cash at bank

969,887

722,508

1,153,508

CREDITORS

323,631

Amounts falling due within one year

5

377,516

398,877

NET CURRENT ASSETS

775,992

4,806,536

TOTAL ASSETS LESS CURRENT LIABILITIES

4,923,409

CREDITORS

(3,315,910

)

Amounts falling due after more than one year

6

(3,174,123

)

(93,673

)

PROVISIONS FOR LIABILITIES

(137,972

)

1,396,953

NET ASSETS

1,611,314

CAPITAL AND RESERVES

1,040,266

Called up share capital

1,040,266

356,687

Retained earnings

571,048

1,396,953

SHAREHOLDERS' FUNDS

1,611,314

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2017.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2017 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors on 12 March 2018 and were signed on its behalf by:

N J Skea - Director

1.	STATUTORY INFORMATION

Ayrenergy Ltd is a private company, limited by shares , registered in Scotland. The company's registered number

and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

Turnover relates to the sale of electricity and related income and is recognised 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 not

recognised until the significant risks and rewards of ownership of the electricity have passed to the buyer and the

amount of revenue can be readily ascertained.

Tangible fixed assets

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

Wind Turbine

5 % on cost - Straight line

Plant and Machinery

25% on cost - Straight line

Depreciation will be provided from the first month after the date of commissioning of the wind turbine in order

to write off the asset over its estimated useful life.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the

balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at

the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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.

Directors' remuneration

All payments for services provided by Directors as directors are charged to Profit and Loss Account as Directors'

Remuneration. Other services not in connection with the management of the company are charged as appropriate

to Tangible Fixed Assets or Profit and Loss Account.

3.	TANGIBLE FIXED ASSETS

Land,

buildings

Plant and

and

machinery

Totals

turbines

etc

£

£

£

COST

At 1 September 2016

and 31 August 2017

5,202,240

5,201,516

724

DEPRECIATION

At 1 September 2016

794,581

794,023

558

Charge for year

260,242

260,076

166

At 31 August 2017

1,054,823

1,054,099

724

NET BOOK VALUE

At 31 August 2017

4,147,417

4,147,417

-

At 31 August 2016

4,407,659

4,407,493

166

Included in the above are finance charges, including interest and bank charges amounting to £170,261 at cost.

(2016 - £170,261)

4.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade debtors

168,459

128,082

Other debtors

15,162

15,425

183,621

143,507

5.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Bank loans and overdrafts

141,787

133,589

Trade creditors

7,274

3,228

Taxation

42,955

42,617

Other creditors

185,500

144,197

377,516

323,631

6.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2017

2016

£

£

Bank loans

3,124,123

3,265,910

Other creditors

50,000

50,000

3,174,123

3,315,910

Amounts falling due in more than five years:

Repayable by instalments

Operating Loan B

514,347

832,587

Operating Loan C

1,500,000

1,500,000

2,014,347

2,332,587

The creditor of £50,000 represents loans by participants as at 31 August 2017 (2016 - £50,000).

7.	SECURED DEBTS

The following secured debts are included within creditors:

2017

2016

£

£

Bank loans

3,265,910

3,399,499

The bank loan is secured by a bond and floating charge over the whole assets of the company. The bank also has

a non-residential mortgage over the lease at the Barns of Ayre site.

8.	CONTINGENT LIABILITIES

The company has contingent liabilities in connection with guarantees and assurances provided in connection with

financial and other arrangements associated with the construction of the windfarm.

9.	OTHER FINANCIAL COMMITMENTS

The company has entered into a lease agreement with the landowner Norrian Limited, on whose land the wind

turbines are situated.

Annual commitments under the terms of the lease are calculated as 6% of the gross turnover per annum.

Payments due under the terms of the lease during the year amounted to £58,008 (2016 - £48,301). The sum due

to Norrian Limited, a related company at 31 August 2017 was £163,497 (2016 - £105,417).

10.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

At 31 August 2017 the company had loans of £25,000 from Mr & Mrs Norman Skea together with a further loan

of £25,000 from Mr & Mrs W Kirkness. (2016 - £50,000).