Fraddon Biogas Limited - Period Ending 2017-12-31

Fraddon Biogas Limited

Annual Report and Unaudited Financial Statements
Year Ended 31 December 2017

Registration number: 08803919

Fraddon Biogas Limited

Contents

Company Information	1
Directors' Report	2
Balance Sheet	3 to 4
Notes to the Financial Statements	5 to 10

Fraddon Biogas Limited

Company Information

Directors

Mr A Laniado Mr J Lourens

Registered office

Penare Farm Higher Fraddon St Columb TR9 6NL

Accountants

Francis Clark LLP Chartered Accountants Centenary House Peninsula Park Rydon Lane Exeter EX2 7XE

Page 1

Fraddon Biogas Limited

Directors' Report

Year Ended 31 December 2017

The directors present their report and the financial statements for the year ended 31 December 2017.

Directors' commentary

The Director's consider EBITDA (Earnings before interest, depreciation and amortisation) to be the main key performance indicator for the company, and are pleased with the improvement reported in the current financial period and the predicted trend going forward. The EBITDA for the current and previous financial years are as follows:

	Year ended 31 December 2017	Year ended 31 December 2016	Year ended 31 December 2015
	£	£	£
Earnings before interest, depreciation and amortisation	190,524	(166,207)	(276,046)

Directors of the company

The directors who held office during the year were as follows:

Mr W K Reed (Resigned 25 August 2017)

Mr A Laniado

Mr J Lourens (appointed 25 August 2017)

Principal activity

The principal activity of the company is generation and sale of renewable energy and the provision of associated services.

Small companies provision statement

This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved by the Board on 27 September 2018 and signed on its behalf by:

......................................... Mr A Laniado Director

Page 2

Fraddon Biogas Limited

Balance Sheet

31 December 2017

	Note	2017 £	(As restated) 2016 £
Fixed assets
Tangible assets	4	8,592,424	8,692,572
Current assets
Debtors	5	1,058,851	871,988
Creditors: Amounts falling due within one year	6	(1,619,444)	(1,492,117)
Net current liabilities		(560,593)	(620,129)
Total assets less current liabilities		8,031,831	8,072,443
Creditors: Amounts falling due after more than one year	6	(11,233,813)	(9,695,387)
Provisions for liabilities		904,000	644,000
Net liabilities		(2,297,982)	(978,944)
Capital and reserves
Called up share capital		20	20
Share premium reserve		2,214,533	2,214,533
Profit and loss account		(4,512,535)	(3,193,497)
Total equity		(2,297,982)	(978,944)

The notes on pages 5 to 10 form an integral part of these financial statements.

Page 3

Fraddon Biogas Limited

Balance Sheet

31 December 2017

For the financial year ending 31 December 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 27 September 2018 and signed on its behalf by:
 

......................................... Mr A Laniado Director

Company Registration Number: 08803919

The notes on pages 5 to 10 form an integral part of these financial statements.

Page 4

Fraddon Biogas Limited

Notes to the Financial Statements

Year Ended 31 December 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:
Penare Farm
Higher Fraddon
St Columb
TR9 6NL

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. There are no material departures from FRS102.

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.

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.

Prior period errors

The prior period figures have been restated to account for the deferred tax provision. As a result of this adjustment the provision for liabilities has increased by £537,000 and the taxation charge in the profit and loss has increased by £115,000.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the company’s activities. Turnover is shown net of value added tax.

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.

Page 5

Fraddon Biogas Limited

Notes to the Financial Statements

Year Ended 31 December 2017

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	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. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Page 6

Fraddon Biogas Limited

Notes to the Financial Statements

Year Ended 31 December 2017

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 during the year was 4 (2016 - none)

Page 7

Fraddon Biogas Limited

Notes to the Financial Statements

Year Ended 31 December 2017

4	Tangible assets

	Plant and machinery  £	Total £
Cost or valuation
At 1 January 2017	9,415,305	9,415,305
Additions	386,223	386,223
At 31 December 2017	9,801,528	9,801,528
Depreciation
At 1 January 2017	722,733	722,733
Charge for the year	486,371	486,371
At 31 December 2017	1,209,104	1,209,104
Carrying amount
At 31 December 2017	8,592,424	8,592,424
At 31 December 2016	8,692,572	8,692,572

5

Debtors

	2017  £	2016  £
Trade debtors	78,245	138
Accrued Income	918,752	844,910
Prepayments	61,854	26,940
	1,058,851	871,988

Page 8

Fraddon Biogas Limited

Notes to the Financial Statements

Year Ended 31 December 2017

6

Creditors

Creditors: amounts falling due within one year

	Note	2017  £	2016  £
Due within one year
Loans and borrowings	7	1,072,264	965,968
Trade creditors		422,576	384,627
Social security and other taxes		3,575	-
Other creditors		-	569
Accrued expenses		121,029	140,953
		1,619,444	1,492,117
Due after one year
Loans and borrowings	7	11,233,813	9,695,387

Creditors: amounts falling due after more than one year

	Note	2017 £	2016 £
Due after one year
Loans and borrowings	7	11,233,813	9,695,387

	2017 £	2016 £
Due after more than five years
After more than five years not by instalments	11,035,766	9,695,387

	-	-

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%.

Page 9

Fraddon Biogas Limited

Notes to the Financial Statements

Year Ended 31 December 2017

7	Loans and borrowings

Loans and borrowings

Included in loans and borrowings at the year end is £11,309,470 (2016 - £9,695,387) on which security has been provided. The debentures £11,035,766 (2016 £9,695,387) are secured on the assets of the company. The other loans £250,000 (2016 £nil) are secured on the assets of the company. The finance lease liabilities £23,704 (2016 £nil) are secured on the assets to which they relate.

8	Share capital

Allotted, called up and fully paid shares

	2017		2016
	No.	£	No.	£
Ordinary shares of £0.01 each	1,000	10.00	1,000	10.00
Ordinary A shares of £0.01 each	1,000	10.00	1,000	10.00
	2,000	20	2,000	20

Rights, preferences and restrictions

The Ordinary and Ordinary A shares have full voting rights and are entitled to dividends and any other distributions.

9	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 £1,850,000 (2016 - £1,940,000).

Page 10