Melton Wind Limited Filleted accounts for Companies House (small and micro)

MELTON WIND LIMITED - Company Information

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COMPANY REGISTRATION NUMBER: 09177064

Melton Wind Limited

Filleted Unaudited Financial Statements

30 June 2019

Melton Wind Limited

Balance Sheet

30 June 2019

	2019	2018
Note	£	£

Fixed assets

Tangible assets	5	9,296,479	9,738,140

Current assets

Debtors	6	493,276	365,885
Cash at bank and in hand		47,389	468,387
		---------	---------
		540,665	834,272

Creditors: amounts falling due within one year	7	( 10,078,070)	( 10,928,408)
		-------------	-------------
Net current liabilities		( 9,537,405)	( 10,094,136)
		------------	-------------
Total assets less current liabilities		( 240,926)	( 355,996)

Provisions	8	( 377,609)	( 263,343)
		---------	---------
Net liabilities		( 618,535)	( 619,339)
		---------	---------

Capital and reserves

Called up share capital	1	1
Profit and loss account	( 618,536)	( 619,340)
	---------	---------
Shareholder deficit	( 618,535)	( 619,339)
	---------	---------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the profit and loss account has not been delivered.

For the year ending 30 June 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

- The member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;

- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

Melton Wind Limited

Balance Sheet (continued)

30 June 2019

These financial statements were approved by the board of directors and authorised for issue on 20 March 2020 , and are signed on behalf of the board by:

Mr M Betts

Director

Company registration number: 09177064

Melton Wind Limited

Notes to the Financial Statements

Year ended 30 June 2019

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Maritime House, Harbour walk, Hartlepool, TS24 0UX.

2. Statement of compliance

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

At the balance sheet date the company has a negative profit and loss reserve. However, the accounts have been prepared on the going concern basis for the reasons set out in note 11.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised 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 that are expected to apply to the reversal of the timing difference.

Foreign currencies

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Wind Turbine and associated development costs have been included within plant and machinery in tangible fixed assets. Depreciation has commenced as the site has become operational. Land improvement costs are not depreciated.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Plant and machinery	-	Straight line over 25 years
Land improvement	-	Straight line over 25 years

Wind turbine site development costs are depreciated straight line over 25 years.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the balance sheet and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

4. Tax on profit

Major components of tax expense

	2019	2018
	£	£

Deferred tax:

Origination and reversal of timing differences	114,266	176,818
	---------	---------
Tax on profit	114,266	176,818
	---------	---------

Reconciliation of tax expense

The tax assessed on the profit on ordinary activities for the year is higher than (2018: higher than) the standard rate of corporation tax in the UK of 19 % (2018: 19 %).

	2019	2018
	£	£
Profit on ordinary activities before taxation	115,070	60,164
	---------	--------
Profit on ordinary activities by rate of tax	21,863	11,431
Effect of expenses not deductible for tax purposes	6,684	–
Effect of capital allowances and depreciation	( 148,753)	( 221,398)
Utilisation of tax losses	–	209,967
Unused tax losses	120,206	–
Deferred tax movement	114,266	176,818
	---------	---------
Tax on profit	114,266	176,818
	---------	---------

5. Tangible assets

	Plant and machinery	Land improvements	Total
	£	£	£
Cost
At 1 July 2018	10,148,008	63,461	10,211,469
Additions	( 36,060)	–	( 36,060)
	-------------	--------	-------------
At 30 June 2019	10,111,948	63,461	10,175,409
	-------------	--------	-------------
Depreciation
At 1 July 2018	470,499	2,830	473,329
Charge for the year	404,470	2,012	406,482
Disposals	( 881)	–	( 881)
	-------------	--------	-------------
At 30 June 2019	874,088	4,842	878,930
	-------------	--------	-------------
Carrying amount
At 30 June 2019	9,237,860	58,619	9,296,479
	-------------	--------	-------------
At 30 June 2018	9,677,509	60,631	9,738,140
	-------------	--------	-------------

6. Debtors

	2019	2018
	£	£
Trade debtors	94,331	80,892
Other debtors	398,945	284,993
	---------	---------
	493,276	365,885
	---------	---------

7. Creditors: amounts falling due within one year

	2019	2018
	£	£
Bank loans and overdrafts	3,428,571	4,788,457
Trade creditors	177,048	313,499
Amounts owed to group undertakings and undertakings in which the company has a participating interest	6,438,293	5,706,292
Social security and other taxes	16,846	41,173
Other creditors	17,312	78,987
	-------------	-------------
	10,078,070	10,928,408
	-------------	-------------

At the year-end £3,428,571 (2018: £4,788,457) was owed to a United Kingdom banking provider as a Sterling Base Rate Loan which at 30 June 2019 had repayment terms ending within one year.

8. Provisions

	Deferred tax (note 9)
	£
At 1 July 2018	263,343
Additions	114,266
	---------
At 30 June 2019	377,609
	---------

9. Deferred tax

The deferred tax included in the balance sheet is as follows:

	2019	2018
	£	£
Included in provisions (note 8)	377,609	263,343
	---------	---------

The deferred tax account consists of the tax effect of timing differences in respect of:

	2019	2018
	£	£
Accelerated capital allowances	649,320	521,864
Unused tax losses	( 271,711)	( 258,521)
	---------	---------
	377,609	263,343
	---------	---------

10. Financial instruments at fair value

There are no financial instruments that would be considered non-basic.

11. Going concern

In the light of the net liabilities position as at the year end, the directors have reviewed the going concern assumption of the company. The company continues to have the support of it immediate parent company and its fellow subsidiaries of the Seneca Global Energy Limited group. As a result of this the directors have concluded that the company can continue as a going concern for at least twelve months from the date of these accounts.

12. Related party transactions

Related party transactions were undertaken under normal commercial terms.

13. Controlling party

There is no overall controlling party.