Garth Wind Limited - Filleted accounts

GARTH WIND LIMITED - Company Information

Registered number

SC451598

Garth Wind Limited

Filleted Accounts

31 March 2018

Garth Wind Limited
Registered number:		SC451598
Balance Sheet
as at 31 March 2018

Notes			2018			2017
£				£
Fixed assets
Tangible assets	3		8,018,016			8,123,661

Current assets
Debtors	4	275,465			85,378
Derivative financial instrument		-			3,193
Cash at bank and in hand		461,257			269,280
		736,722			357,851

Creditors: amounts falling due within one year	5	(995,457)			(1,300,876)

Net current liabilities			(258,735)			(943,025)

Total assets less current liabilities			7,759,281			7,180,636

Creditors: amounts falling due after more than one year	6		(7,534,875)			(7,193,414)



Net assets/(liabilities)			224,406			(12,778)

Capital and reserves
Called up share capital			1			1
Profit and loss account			224,405			(12,779)

Shareholders' funds			224,406			(12,778)

The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.




A Nisbet
Director
Approved by the board on 21 September 2018

Garth Wind Limited
Notes to the Accounts
for the year ended 31 March 2018


1	Accounting policies

	Basis of preparation
	The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). The presentation currency is £ sterling. Garth Wind Limited has now commenced its operating phase thereby generating income. The accounts have therefore been prepared on a going concern basis.

	Turnover and revenue recognition
	Turnover represents sales of electricity in the period net of VAT. Sales are recognised at the point at which the company has fulfilled its contractual obligation and the risks and rewards attaching to the product have been transferred to the customer.

	Tangible fixed assets
	Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Borrowing costs during the period of construction are capitalised. Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows.

	Plant and machinery:	5% straight line (no depreciation charged on assets under construction).

	Debtors
	Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts.

	Creditors
	Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.

	Taxation
	A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.

	Accounting Policies (continued)
	Foreign currency translation
	Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.

	Leased assets
	A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. Operating lease payments are recognised as an expense on a straight line basis over the lease term.

	Financial instruments
	Financial assets and financial liabilities are recognised when the company becomes party to the contractual provisions of the instrument. Basic financial assets and liabilities are recognised initially at transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt interest. Debt instruments are subsequently measured at amortised cost using the effective interest method. The company applies hedge accounting in relation to the foreign currency risk of unrecognised firm commitments deriving from the construction of wind turbines which are invoiced in Euros. The hedge of the foreign currency risk of an unrecognised firm commitment is accounted for as a fair value hedge. The gain or loss on the hedging instrument is recognised in profit or loss and the hedging gain or loss on the hedged item adjusts the carrying amount of the hedged item. As the hedged item is an unrecognised firm commitment, the cumulative hedging gain or loss on the hedged item is recognised as an asset or liability with a corresponding gain or loss recognised in profit or loss. No other strategy has been adopted with respect of the risk management of the wind turbines as the company believes the asset to have been appropriately hedged. The initial carrying amount of the asset or liability that results from the company meeting the firm commitment is adjusted to include the cumulative hedging gain or loss of the hedged item that was recognised in the Balance Sheet.

2	Audit information

	The audit report is unqualified.

	Senior statutory auditor:	John F S Pratt
	Firm:	Whitelaw Wells
	Date of audit report:	21 September 2018


3	Tangible fixed assets
					Plant and machinery etc
£
	Cost
	At 1 April 2017				8,123,661
	Additions				312,876
	At 31 March 2018				8,436,537

	Depreciation
	Charge for the year				418,521
	At 31 March 2018				418,521

	Net book value
	At 31 March 2018				8,018,016
	At 31 March 2017				8,123,661
	Finance costs of £386,402 (2017: £258,922) directly attributable to the construction of the tangible fixed assets have been capitalised as part of the cost of these assets.

4	Debtors		2018		2017
£				£

	Trade debtors		167,601		6,951
	Deferred tax asset		59,249		2,441
	Other debtors		48,615		75,986
			275,465		85,378


5	Creditors: amounts falling due within one year		2018		2017
£				£

	Bank loans and overdrafts		818,481		749,094
	Trade creditors		19,584		23,043
	Taxation and social security costs		52,926		-
	Other creditors		104,466		528,739
			995,457		1,300,876


6	Creditors: amounts falling due after one year		2018		2017
£				£

	Bank loans		7,534,875		7,193,414


7	Loans		2018		2017
£				£
	Creditors include:
	Instalments falling due for payment after more than five years		5,484,232		4,534,145


	Secured bank loans		8,001,588		7,640,028

	Triodos Bank NV and Scottish Enterprise hold a bond, fixed and floating charge over the assets of the company.


8	Capital commitments		2018		2017
£				£

	Amounts contracted for but not provided in the accounts		-		198,474


9	Other financial commitments

	Lease commitments are based on a percentage of gross income each year. There is no minimum commitment.


10	Controlling party

	The ultimate controlling party is North Yell Development Council.


11	Other information

	Garth Wind Limited is a private company limited by shares and incorporated in Scotland. Its registered office is:
	Keldahoul
	Cullivoe
	Yell
	Shetland
	ZE2 9DD

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