Sheppey Energy Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 10285991 (England and Wales)

Unaudited Financial Statements

for the Period 1 August 2018 to 31 March 2019

for

Sheppey Energy Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

M G McAllister

T J Giles

N J McAllister

SECRETARY:

P G Knell

REGISTERED OFFICE:

Trafalgar House

Meridian Business Park

Meridian Way

Norwich

NR7 OTA

REGISTERED NUMBER:

10285991 (England and Wales)

ACCOUNTANTS:

Hardcastle Burton LLP

Lake House

Market Hill

Royston

Hertfordshire

SG8 9JN

FIXED ASSETS

Tangible assets

4

2,999,182

-

CURRENT ASSETS

Stocks

167,436

-

Debtors

5

536,762

1

Cash at bank

6,596

-

710,794

1

CREDITORS

Amounts falling due within one year

6

1,418,959

-

NET CURRENT (LIABILITIES)/ASSETS

(708,165

)

1

TOTAL ASSETS LESS CURRENT LIABILITIES

2,291,017

1

CREDITORS

Amounts falling due after more than one year

7

2,293,466

-

NET (LIABILITIES)/ASSETS

(2,449

)

1

CAPITAL AND RESERVES

Called up share capital

100

1

Retained earnings

9

(2,549

)

-

SHAREHOLDERS' FUNDS

(2,449

)

1

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the period ended 31 March 2019.

The members have not required the company to obtain an audit of its financial statements for the period ended 31 March 2019 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 applicable to companies subject to the small companies regime.

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

The financial statements were approved by the Board of Directors on 19 December 2019 and were signed on its behalf by:

M G McAllister - Director

1.	STATUTORY INFORMATION

Sheppey Energy Limited is a private company, limited by shares , registered in England and Wales. The

company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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 the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The accounts have been prepared on the going concern basis despite the fact that the company has net current

liabilities of £708,165. With continued financial support from the other creditors (finance providers), the

directors have a reasonable expectation that the company has adequate resources to continue in operational

existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in

preparing the financial statements.

Tangible fixed assets

At the year end the plant and machinery was still in construction. No depreciation will be provided until the plant

is in full working condition. Once the plant has been fully constructed its estimated useful life will be 20 years.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow

moving items.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of

its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the company

becomes party to the contractual provisions of the instrument.

Basic financial assets, which include debtors, are initially measured at transaction price including transaction

costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement

constitutes a financing transaction, where the transaction is measured at the present value of the future receipts

discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities, including creditors and loans that are classified as debt, are initially recognised at

transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is

measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities

classified as payable within one year are not amortised.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of

business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or

less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction

price and subsequently measured at amortised cost using the effective interest method.

Taxation

Taxation for the period comprises current and deferred tax. Tax is recognised in the Statement of Income and

Retained Earnings, 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 period 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.

Comparatives

The accounting period covered by the financial statements is shortened to 31st March 2019.

The reason for shortening the period was to align the accounting period with the parent company. Due to this

change in period, the comparatives are not entirely comparable.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the period was 2 (2018 - NIL ) .

4.	TANGIBLE FIXED ASSETS

Plant and

machinery

£

COST

Additions

2,999,182

At 31 March 2019

2,999,182

NET BOOK VALUE

At 31 March 2019

2,999,182

The borrowing costs have been capitalised as part of the plant and machinery cost. The total interest element

included in the production cost of the plant and machinery during the period was £30,501

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.19

31.7.18

£

£

Other debtors

536,762

1

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.19

31.7.18

£

£

Trade creditors

1,317,993

-

Amounts owed to group undertakings

18,526

-

Other creditors

82,440

-

1,418,959

-

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.3.19

31.7.18

£

£

Other creditors

2,293,466

-

8.	SECURED DEBTS

The following secured debts are included within creditors:

31.3.19

31.7.18

£

£

Other creditors

2,293,466

-

Other creditors represents a bank loan which is secured by way of a fixed and floating charge over all the assets

of the company. The bank loan is repayable on 15 February 2022.

9.

RESERVES

Retained

earnings

£

Deficit for the period

(2,549

)

At 31 March 2019

(2,549

)

10.	CAPITAL COMMITMENTS

31.3.19

31.7.18

£

£

Contracted but not provided for in the

financial statements

7,710,092

-

11.	RELATED PARTY DISCLOSURES

During the period the company bought assets worth £489,439 from the parent company. At the balance sheet

date the company owed £18,526 to the parent.

12.	ULTIMATE CONTROLLING PARTY

The company is a 72.5% owned subsidiary of Farm Renewables Limited, a company registered in England and

Wales.