Sharpness Wind Project Limited - Period Ending 2017-08-31

Sharpness Wind Project Limited

Annual Report and Unaudited Financial Statements
Year Ended 31 August 2017

Registration number: 09259832

Sharpness Wind Project Limited

Contents

Company Information	1
Balance Sheet	2 to 3
Notes to the Financial Statements	4 to 9

Sharpness Wind Project Limited

Company Information

Directors

Mr J J Fabby Mr E J W Bakker

Registered office

Lowin House Tregolls Road Truro Cornwall TR1 2NA

Accountants

Francis Clark LLP Lowin House Tregolls Road Truro Cornwall TR1 2NA

Page 1

Sharpness Wind Project Limited

Balance Sheet

31 August 2017

	Note	2017 £	2016 £
Fixed assets
Tangible assets	4	1,123,466	1,168,721
Investments	5	372,453	372,453
		1,495,919	1,541,174
Current assets
Debtors	6	214,947	111,337
Cash at bank and in hand		28,914	56,335
		243,861	167,672
Creditors: Amounts falling due within one year	7	(1,891,877)	(1,807,134)
Net current liabilities		(1,648,016)	(1,639,462)
Net liabilities		(152,097)	(98,288)
Capital and reserves
Called up share capital		100	100
Profit and loss account		(152,197)	(98,388)
Total equity		(152,097)	(98,288)

The notes on pages 4 to 9 form an integral part of these financial statements.

Page 2

Sharpness Wind Project Limited

Balance Sheet

31 August 2017

For the financial year ending 31 August 2017 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 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 and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 30 May 2018 and signed on its behalf by:
 

......................................... Mr J J Fabby Director

Company Registration Number: 09259832

The notes on pages 4 to 9 form an integral part of these financial statements.

Page 3

Sharpness Wind Project Limited

Notes to the Financial Statements

Year Ended 31 August 2017

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:
Lowin House
Tregolls Road
Truro
Cornwall
TR1 2NA

The principal place of business is:
Sharpness Docks
Berkeley
Gloucestershire
GL13 9UX

These financial statements were authorised for issue by the Board on 30 May 2018.

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 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' 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 September 2015. There is no material impact on the reported financial position and financial performance.

Going concern

The financial statements have been prepared on a going concern basis. The company is in its start up phase and has the financial support of the directors / shareholders to enable it to meet liabilities as they fall due. Future revenue is secured under a 20 year power purchase agreement and the directors anticipate that the company's results will shortly show a profit.

Page 4

Sharpness Wind Project Limited

Notes to the Financial Statements

Year Ended 31 August 2017

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the generation of electricity. Turnover is shown net of value added tax, returns, rebates and discounts.

The company recognises revenue when the amount of revenue can be reliably measured and it is probable that future economic benefits will flow to the entity.

Tax

Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

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:

Asset class	Depreciation method and rate
Plant and machinery	Straight line over 20 years
Motor vehicles	20%, straight line
Leasehold land	Straight line over term of lease

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Page 5

Sharpness Wind Project Limited

Notes to the Financial Statements

Year Ended 31 August 2017

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors; 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.

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.




 

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 2 (2016 - 2).

Page 6

Sharpness Wind Project Limited

Notes to the Financial Statements

Year Ended 31 August 2017

4	Tangible assets

	Short leasehold land and buildings £	Motor vehicles  £	Other property, plant and equipment  £	Total £
Cost or valuation
At 1 September 2016	360,000	22,995	845,062	1,228,057
Additions	-	-	17,775	17,775
At 31 August 2017	360,000	22,995	862,837	1,245,832
Depreciation
At 1 September 2016	14,400	2,683	42,253	59,336
Charge for the year	14,400	4,599	44,031	63,030
At 31 August 2017	28,800	7,282	86,284	122,366
Carrying amount
At 31 August 2017	331,200	15,713	776,553	1,123,466
At 31 August 2016	345,600	20,312	802,809	1,168,721

Included within the net book value of land and buildings above is £331,200 (2016 - £345,600) in respect of short leasehold land and buildings.
 

5	Investments

	2017 £	2016 £
Investments in subsidiaries	372,453	372,453

Subsidiaries	£
Cost or valuation
At 1 September 2016 and 31 August 2017	372,453
Carrying amount
At 31 August 2017	372,453
At 31 August 2016	372,453

Page 7

Sharpness Wind Project Limited

Notes to the Financial Statements

Year Ended 31 August 2017

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking	Registered office	Holding	Proportion of voting rights and shares held
			2017	2016
Subsidiary undertakings
Sharpness Wind Project No 2 Limited	Lowin House, Tregolls Road, Truro, Cornwall TR1 2NA	Ordinary	100%	100%

Sharpness Wind Project No 2 Limited is not trading.

The profit for the financial period of Sharpness Wind Project No 2 Limited was £- and the aggregate amount of capital and reserves at the end of the period was £360,100.

6

Debtors

	2017  £	2016  £
Trade debtors	9,636	10,226
Other debtors	202,228	98,066
Prepayments	3,083	3,045
	214,947	111,337

7

Creditors

Creditors: amounts falling due within one year

	Note	2017  £	2016  £
Due within one year
Loans and borrowings	8	1,301,856	1,321,839
Trade creditors		16,252	2,817
Amounts due to group undertakings	11	360,000	360,000
Accrued expenses		213,769	122,478
		1,891,877	1,807,134

Creditors includes a director's loan of £584,265 (2016 - £601,136) which is secured.

Page 8

Sharpness Wind Project Limited

Notes to the Financial Statements

Year Ended 31 August 2017

8	Loans and borrowings

	2017 £	2016 £
Current loans and borrowings
Other borrowings	1,301,856	1,321,839

9	Share capital

Allotted, called up and fully paid shares

	2017		2016
	No.	£	No.	£
Ordinary shares of £1 each	100	100	100	100

10	Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £38,378 (2016 - £40,056). At 31 August 2017 the company had annual commitments under operating leases.

11	Related party transactions

Summary of transactions with subsidiaries
 

Sharpness Wind Project No 2 Limited
  The company operates a loan account with its subsidiary company in respect of the assignment of a lease of land at Sharpness Docks. At the balance sheet date the amount due to Sharpness Wind Project No 2 Limited was £360,000 (2016 £360,000). The loan is interest free.

12	Parent and ultimate parent undertaking

The ultimate controlling party is the directors.

Page 9