Highland Wood Energy Limited - Limited company - abbreviated - 11.6

REGISTERED NUMBER: SC260419 (Scotland)

ABBREVIATED ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2014

FOR

HIGHLAND WOOD ENERGY LIMITED

Page

Company Information

1

Abbreviated Balance Sheet

2

Notes to the Abbreviated Accounts

4

DIRECTOR:

Bruno Leo Nello Berardelli

SECRETARY:

Craig Sutherland

REGISTERED OFFICE:

c/o Abacus Services

Abacus Building,

8 High Street

Oban

Argyll

PA34 4BG

REGISTERED NUMBER:

SC260419 (Scotland)

ACCOUNTANTS:

R A Clement Associates

5 Argyll Square

Oban

Argyll

PA34 4AZ

FIXED ASSETS

Intangible assets

2

-

-

Tangible assets

3

1,199,668

895,800

1,199,668

895,800

CURRENT ASSETS

Stocks

411,239

386,766

Debtors

1,120,921

1,070,246

Investments

57,000

38,000

Cash at bank and in hand

1,835

7,513

1,590,995

1,502,525

CREDITORS

Amounts falling due within one year

2,208,772

1,976,439

NET CURRENT LIABILITIES

(617,777

)

(473,914

)

TOTAL ASSETS LESS CURRENT LIABILITIES

581,891

421,886

CREDITORS

Amounts falling due after more than one year

4

343,149

292,126

NET ASSETS

238,742

129,760

CAPITAL AND RESERVES

Called up share capital

5

2,000

2,000

Profit and loss account

236,742

127,760

SHAREHOLDERS' FUNDS

238,742

129,760

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2014.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2014 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his 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 abbreviated accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

The financial statements were approved by the director on 5 June 2015 and were signed by:

Bruno Leo Nello Berardelli - Director

1.	ACCOUNTING POLICIES

Accounting convention

The financial statements have been prepared under the historical cost convention and in accordance with the

Financial Reporting Standard for Smaller Entities (effective April 2008).

Turnover

Turnover represents net invoiced sales of goods, excluding value added tax.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2010, is being amortised evenly over its estimated useful life of one years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

20% on cost and 6.67% on cost

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33% on reducing balance

Included in Plant & Machinery are two biomass boiler installations which are used for the provision of heat to

specific customers. One is at Mallaig Swimming Pool; the asset cost £151,711 and is being depreciated at a rate

of 6.6% on cost. The other is in the process of being commissioned; costs incurred at 31 December 2014 were

£666,628, £303,641 (2013); this asset has not been depreciated in these financial statements. Depreciation will

be charged at 6.6% on cost once the boiler is in commission.

Stocks

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

moving items.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance

sheet date.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held

under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases

are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to the profit and loss account over the relevant period. The

capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the

period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to the profit and loss account in the period to which they relate.

2.	INTANGIBLE FIXED ASSETS

Total

£

COST

At 1 January 2014

and 31 December 2014

1

AMORTISATION

At 1 January 2014

and 31 December 2014

1

NET BOOK VALUE

At 31 December 2014

-

At 31 December 2013

-

3.	TANGIBLE FIXED ASSETS

Total

£

COST

At 1 January 2014

1,282,657

Additions

377,527

Disposals

(7,213

)

At 31 December 2014

1,652,971

DEPRECIATION

At 1 January 2014

386,857

Charge for year

71,376

Eliminated on disposal

(4,930

)

At 31 December 2014

453,303

NET BOOK VALUE

At 31 December 2014

1,199,668

At 31 December 2013

895,800

4.

CREDITORS

Creditors include the following debts falling due in more than five years:

2014

2013

£

£

Repayable by instalments

167,503

142,855

5.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2014

2013

value:

£

£

2,000

Ordinary

£1

2,000

2,000

6.	DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES

The Director of Highland Wood Energy Ltd and his wife are controlling Directors of Lochaber Heat Supply.

Highland Wood Energy Ltd. supplies Lochaber Heat Supply with wood fuel and maintenance services; during

the year the value of these transactions were £22,814..

7.	HIGHLAND WOOD ENERGY EMPLOYEE BENEFITS TRUST

By resolution of the Company's board of Directors on 27 May 2012 a trust known as the Highland Wood Energy

Employee Benefits Trust ("Trust") was established. The Trust is intended to be an employees' share scheme

within the meaning of Section 743 if the Companies Act 1985.

The Trust has four Trustees, of which one is Bruno Berardelli, one of the Directors of Highland Wood Energy

Limited.

On 27 June 2012 the Directors approved a loan facility to the Trust of up to £76,000, the terms of the loan are

that it should be repaid ten years after draw down. The purpose of the loan is for the purchase of shares in the

Company by the Trust. The first draw down was on 5 July 2012 for £19,000. Further £19,000 draw downs by

the Trust took place in July 2013 and 2014. At the date of approval of these financial statements the loan

balance stood at £57,000.