Southwestern Sustainability Limited - Period Ending 2018-03-31

Southwestern Sustainability Limited

Annual Report and Unaudited Financial Statements
Year Ended 31 March 2018

Registration number: 09268909

Southwestern Sustainability Limited

Contents

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

Southwestern Sustainability Limited

Company Information

Directors

Mr M P Hoyle Mr S M Cole Mr J Boss

Registered office

6th Floor St Magnus House 3 Lower Thames Street London EC3R 6HD

Accountants

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

Page 1

Southwestern Sustainability Limited

Balance Sheet

31 March 2018

	Note	2018 £	2017 £
Fixed assets
Tangible assets	4	5,654,531	5,163,279
Deferred tax		798,425	434,912
		6,452,956	5,598,191
Current assets
Stocks	5	237,957	434,443
Debtors	6	207,928	518,017
Cash at bank and in hand		221,728	150,255
		667,613	1,102,715
Creditors: Amounts falling due within one year	7	(664,440)	(211,060)
Net current assets		3,173	891,655
Total assets less current liabilities		6,456,129	6,489,846
Creditors: Amounts falling due after more than one year	7	(3,240,826)	(1,955,504)
Provisions for liabilities		(388,466)	(285,983)
Net assets		2,826,837	4,248,359
Capital and reserves
Called up share capital		100,002	100,002
Share premium reserve		4,750,000	4,750,000
Profit and loss account		(2,023,165)	(601,643)
Total equity		2,826,837	4,248,359

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

Page 2

Southwestern Sustainability Limited

Balance Sheet

31 March 2018

For the financial year ending 31 March 2018 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 10 December 2018 and signed on its behalf by:
 

......................................... Mr S M Cole Director

Company Registration Number: 09268909

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

Page 3

Southwestern Sustainability Limited

Notes to the Financial Statements

Year Ended 31 March 2018

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:
6th Floor
St Magnus House
3 Lower Thames Street
London
EC3R 6HD

The principal place of business is:
Oil Mill Lane
Clyst St Mary
Exeter
EX5 1AF

These financial statements were authorised for issue by the Board on 10 December 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 - '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.

Reclassification of comparative amounts

The provision for deferred tax has been reallocated in the prior year to show the asset on trade losses and liability on fixed asset timing differences separately.

Revenue recognition

Turnover represents amounts chargeable, net of value added tax, in respect of the sale of electricity and connected services to customers.

Foreign currency transactions and balances

Transactions in foreign currencies are recorded at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the closing rates at the balance sheet date. All exchange differences are included in the profit and loss account.

Page 4

Southwestern Sustainability Limited

Notes to the Financial Statements

Year Ended 31 March 2018

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 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

Stocks

Stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. Net realisable value is based on selling price less anticipated costs to completion and selling costs.

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.

Page 5

Southwestern Sustainability Limited

Notes to the Financial Statements

Year Ended 31 March 2018

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Other 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 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.

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

There were no persons employed by the company (including directors) during the current and prior year.

Page 6

Southwestern Sustainability Limited

Notes to the Financial Statements

Year Ended 31 March 2018

4	Tangible assets

	Plant and Machinery £	Total £
Cost or valuation
At 1 April 2017	5,163,279	5,163,279
Additions	736,014	736,014
At 31 March 2018	5,899,293	5,899,293
Depreciation
Charge for the year	244,762	244,762
At 31 March 2018	244,762	244,762
Carrying amount
At 31 March 2018	5,654,531	5,654,531
At 31 March 2017	5,163,279	5,163,279

Plant and machinery depreciation was charged from June 2017 as the asset was in a period of scaling up during the first part of the current year.

5

Stocks

	2018 £	2017 £
Raw materials and consumables	237,957	434,443

6

Debtors

	2018  £	2017  £
Trade debtors	50,001	-
Other debtors	148,687	481,579
Prepayments	9,240	36,438
	207,928	518,017

Page 7

Southwestern Sustainability Limited

Notes to the Financial Statements

Year Ended 31 March 2018

7

Creditors

	Note	2018  £	2017  £
Due within one year
Trade creditors		363,382	140,415
Other creditors		25,413	25,695
Accrued expenses		275,645	44,950
		664,440	211,060
Due after one year
Loans and borrowings	8	3,240,826	1,955,504

8	Loans and borrowings

	2018 £	2017 £
Loans and borrowings due after one year
Other borrowings	3,240,826	1,955,504

Other borrowings

Included in other borrowings at the year end is £3,240,826 (2017 - £1,955,504) on which the following security has been provided: Floating charge over all of the borrower's rights to and title and interest in the whole of its property, assets, rights and revenues.

9	Share capital

Allotted, called up and fully paid shares

	2018		2017
	No.	£	No.	£
Ordinary 'A' shares of £0.01 each	5,000,100	50,001	5,000,100	50,001
Ordinary 'B' shares of £0.01 each	5,000,100	50,001	5,000,100	50,001
	10,000,200	100,002	10,000,200	100,002

Rights, preferences and restrictions

The Ordinary 'A' shares and Ordinary 'B' shares rank equally in respect of voting rights and distributions from the company.

Page 8

Southwestern Sustainability Limited

Notes to the Financial Statements

Year Ended 31 March 2018

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 £1,027,000 (2017 - £300,000).

 

This falls due as follows:

	2018  £	2017  £
Not later than one year	55,000	15,000
Later than one year and not later than five years	220,000	75,000
Later than five years	752,000	210,000
	1,027,000	300,000

11

Control

The company has no ultimate controlling party.

Page 9