Carno 2 LLP - Accounts to registrar (filleted) - small 23.2.5
Carno 2 LLP - Accounts to registrar (filleted) - small 23.2.5
REGISTERED NUMBER: |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 5 APRIL 2023 |
FOR |
CARNO 2 LLP |
CARNO 2 LLP (REGISTERED NUMBER: OC331330) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the year ended 5 April 2023 |
Page |
General Information | 1 |
Statement of Financial Position | 2 |
Notes to the Financial Statements | 3 |
CARNO 2 LLP |
GENERAL INFORMATION |
for the year ended 5 April 2023 |
DESIGNATED MEMBERS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Statutory Auditor |
Magma House, 16 Davy Court |
Castle Mound Way |
Rugby |
CV23 0UZ |
BANKERS: |
3rd Floor |
120 Cavendish Street |
London |
W1W 6XX |
SOLICITORS: |
Princes Exchange |
1 Earl Grey Street |
Edinburgh |
EH3 9AQ |
CARNO 2 LLP (REGISTERED NUMBER: OC331330) |
STATEMENT OF FINANCIAL POSITION |
5 April 2023 |
2023 | 2022 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
CURRENT ASSETS |
Debtors | 5 |
Investments | 6 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 7 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
8 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 12 | ( |
) | ( |
) |
NET ASSETS ATTRIBUTABLE TO MEMBERS |
14,934,786 |
3,639,616 |
LOANS AND OTHER DEBTS DUE TO MEMBERS |
13 |
14,934,786 |
3,639,616 |
TOTAL MEMBERS' INTERESTS |
Loans and other debts due to members | 13 | 14,934,786 | 3,639,616 |
In accordance with Section 444 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008, the Profit and Loss Account has not been delivered. |
The financial statements were approved by the members of the LLP and authorised for issue on |
CARNO 2 LLP (REGISTERED NUMBER: OC331330) |
NOTES TO THE FINANCIAL STATEMENTS |
for the year ended 5 April 2023 |
1. | STATUTORY INFORMATION |
Carno 2 LLP (OC331330) is a Limited Liability Partnership registered in England and Wales. Its registered office is 1 Des Roches Square, Witney, OX28 4BE. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with the provisions of Section 1A "Small entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the requirements of the Statement of Recommended Practice, accounting by Limited Liability Partnerships. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets. |
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented, unless otherwise stated. |
The financial statements are presented in Sterling (£). |
Turnover |
Turnover represents the fair value of the consideration received or receivable for goods rendered during the period, exclusive of value added tax, derived from the generation of electricity. |
Revenue from 'Brown' energy and revenue from Renewable Obligation Certificates (ROCs), is recognised when the related electricity is generated. |
Other renewable benefits are recognised when the value can be reliably ascertained. |
Tangible fixed assets |
Tangible fixed assets are stated at cost less depreciation. Cost represents purchase price together with any incidental costs of acquisition. Finance costs are included in the cost of tangible assets when they are directly attributable to the construction of tangible fixed assets. |
Depreciation is provided at the following annual rates in order to write off each asset, net of anticipated disposal proceeds, over its estimated useful economic life. Depreciation is charged at the following rates: |
Plant and machinery - period over the lease term. |
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
Financial instruments |
The LLP has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments. |
(i) Financial assets |
Basic financial assets, including other debtors and cash and bank balances are initially recognised at transaction price, 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. |
Such assets are subsequently carried at amortised cost using the effective interest method. |
(ii) Financial liabilities |
Basic financial liabilities, including trade creditors and other creditors 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. |
Derivatives, including interest rate swaps, are not basic financial instruments. Derivatives are initially recorded at fair value on the date the derivative contract is entered into and are subsequently re-measured at fair value. Changes in the fair value of derivatives are recognised in the profit and loss account in finance costs or finance income as appropriate. |
Members' loans (being repayable on demand), trade debtors and trade creditors are measured at the undiscounted amount of the cash or other consideration expected to be paid or received. |
CARNO 2 LLP (REGISTERED NUMBER: OC331330) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 5 April 2023 |
2. | ACCOUNTING POLICIES - continued |
Members' participation rights |
Members' participation rights are the rights of a member against the LLP that arise under the member's agreement (for example, in respect of amounts subscribed or otherwise contributed, remuneration and profits). |
Amounts subscribed or otherwise contributed by members, for example members' capital, are classed as equity if the LLP has an unconditional right to refuse payment to members. If the LLP does not have such an unconditional right, such amounts are classified as liabilities. |
Profits and losses are divided automatically in accordance to the members agreement and therefore such profits and losses are classed as an expense through the profit and loss rather than an appropriation of equity. |
All amounts due to the members that are classified as liabilities are presented in the balance sheet within Loans and other debt due to members, and are charged to profit and loss account within Members' remuneration charged as an expense. Amounts due to members that are classified as equity are shown in the balance sheet within 'Members' other interests'. |
Taxation |
The taxation payable on the LLP's profits is the personal liability of the member during the year. Consequently, neither the LLP nor related deferred taxation are accounted for in the financial statements. |
Provisions |
Provision is made for the net present value of the estimated future decommissioning costs at the end of the operating life of the wind farm. This provision is made when construction of the wind farm has reached a stage when decommissioning of the constructed plant would incur material costs. The provision is calculated using estimated costs of decommissioning, and these estimates have been arrived at by consideration of the expected costs of contracts to remove the installed plant. The estimates are discounted at a rate that reflects current market assessments of the time value of money. A corresponding asset is recognised and included within the wind farm assets and is depreciated over the life of the wind farm. The estimated future cost of decommissioning obligations are regularly reviewed and adjusted as appropriate for new circumstances or changes in law or technology. |
Current asset investments |
Current asset investments includes short-term deposits held with banks, with original maturities of more than three months. |
Cash and cash equivalents |
Cash and cash equivalents includes cash in hand, deposits held at call with banks and other short-term highly liquid investments with original maturities of three months or less. |
Operating leases |
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease. |
Critical accounting estimates and assumptions |
(i) Useful economic lives of tangible assets |
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. |
(ii) Fair value of derivatives |
The designated members measure derivatives at fair value, which is determined using valuation techniques that utilise observable inputs. The key assumptions used in valuing the swaps at the reporting date are the 6 month SONIA rates (2022: 6 month SONIA rates). |
(iii) Provisions |
Provision is made for asset decommissioning obligations, dilapidations and contingencies. These provisions require management's best estimate of the costs that will be incurred based on legislative and contractual requirements. In addition, the timing of the cash flows and the discounts rates used to establish net present value of the obligations require management's judgement. |
CARNO 2 LLP (REGISTERED NUMBER: OC331330) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 5 April 2023 |
3. | EMPLOYEE INFORMATION |
The average number of employees during the year was NIL (2022 - NIL). |
4. | TANGIBLE FIXED ASSETS |
Plant and |
machinery |
£ |
COST |
At 6 April 2022 |
and 5 April 2023 |
DEPRECIATION |
At 6 April 2022 |
Charge for year |
At 5 April 2023 |
NET BOOK VALUE |
At 5 April 2023 |
At 5 April 2022 |
5. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Other debtors |
6. | CURRENT ASSET INVESTMENTS |
2023 | 2022 |
£ | £ |
Short-term deposits | 646,453 | 622,287 |
7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans |
Trade creditors |
Taxation and social security |
Other creditors |
8. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans |
Other creditors |
Included within creditors falling due after more than one year is an amount of £nil (2022: £1,323,000) in respect of liabilities which fall due for payment after more than five years from the balance sheet date. |
CARNO 2 LLP (REGISTERED NUMBER: OC331330) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 5 April 2023 |
9. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
The operating leases are in respect of the land upon which the wind farm is sited and the annual charge is based primarily upon the levels of electricity generated. |
10. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Bank loans |
The bank loan is secured by a fixed and floating charge over the assets of the Limited Liability Partnership. |
11. | FINANCIAL INSTRUMENTS |
2023 | 2022 |
£ | £ |
Financial (asset) / liabilities at fair value through profit and loss |
Derivative financial instruments | (355,810 | ) | 37,507 |
The LLP entered into an interest rate swap to mitigate the interest rate risk of its bank loans. At the reporting date, the interest rate swap fixes the interest at 2.305% + 6 month SONIA and is due for settlement by 2027, payable by instalments. The interest rate swap is included within other debtors and is measured at fair value, which is determined using valuation techniques that utilise observable inputs. The key assumptions used in valuing the interest rate swap at the reporting date are the 6 month SONIA rates (2022: 6 month SONIA rates). |
12. | PROVISIONS FOR LIABILITIES |
Other |
provisions |
£ |
Balance at 6 April 2022 |
Provided during year |
Balance at 5 April 2023 |
13. | LOANS AND OTHER DEBTS DUE TO MEMBERS |
Loans and other debts due to members rank behind other unsecured creditors. |
14. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was unqualified. |
for and on behalf of |
CARNO 2 LLP (REGISTERED NUMBER: OC331330) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 5 April 2023 |
15. | RELATED PARTY DISCLOSURES |
The LLP has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
During the year the LLP received site management services from a company in which a Designated Member is also a director and majority shareholder, totalling £70,898 (2022: £65,784). At the year end the LLP owed £24,505 (2022: £21,581) in respect of these services. |
During the year the LLP paid management charges to a related company totalling £6,000 (2022: £6,000). At the year end the LLP owed £3,000 (2022: £nil). |
During the year the LLP paid management charges to a related company totalling £18,000 (2022: £18,000). At the year end the LLP owed £6,000 (2022: £6,000). |
16. | ULTIMATE CONTROLLING PARTY |
During the current and previous year there was no controlling party, as no individual member had a controlling vote at the year end. |