AVG Imperial Ltd - Accounts to registrar - small 17.2

REGISTERED NUMBER: 09347372 (England and Wales)

Audited Financial Statements for the Year Ended 31 December 2016

for

AVG Imperial Ltd

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

Mr M F Harkin

Mr J W Routledge

Mr M J Strong

REGISTERED OFFICE:

Hughes House

Cargo Fleet Road

Middlesbrough

TS3 6AG

REGISTERED NUMBER:

09347372 (England and Wales)

AUDITORS:

JBC Accountants Limited

Statutory Auditor

3B Lockheed Court

Preston Farm

Stockton on Tees

TS18 3SH

SOLICITORS:

Penningtons Manches LLP

125 Wood Street

London

EC2V 7AW

FIXED ASSETS

Tangible assets

3

23,258,448

7,050,316

CURRENT ASSETS

Debtors

4

1,784,422

1,669,253

Cash at bank

4,588,572

319,891

6,372,994

1,989,144

CREDITORS

Amounts falling due within one year

5

1,602,208

789,851

NET CURRENT ASSETS

4,770,786

1,199,293

TOTAL ASSETS LESS CURRENT LIABILITIES

28,029,234

8,249,609

CREDITORS

Amounts falling due after more than one year

6

27,811,579

7,667,119

NET ASSETS

217,655

582,490

CAPITAL AND RESERVES

Called up share capital

8

1,000

1,000

Share premium

749,900

749,900

Retained earnings

(533,245

)

(168,410

)

SHAREHOLDERS' FUNDS

217,655

582,490

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors on 29 September 2017 and were signed on its behalf by:

Mr D J Hughes - Director

1.	STATUTORY INFORMATION

AVG Imperial Ltd 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 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 Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going Concern

Trading will commence in the year to 31 December 2017. After reviewing the company's forecasts and

projections, the directors' have a reasonable expectation that it has adequate resources to continue in operational

existence for the foreseeable future. The company has therefore adopted the going concern basis in preparing its

financial statements.

Tangible fixed assets

Assets under construction will not be depreciated until they are brought into use.

No depreciation will be provided on Land.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account,

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 year 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.

Borrowing costs

Borrowing costs that are directly attributable to the construction of Tangible fixed assets have been capitalised

and included as part of the cost of those assets.

3.	TANGIBLE FIXED ASSETS

Assets

under

construction

Land

Totals

£

£

£

COST

At 1 January 2016

6,219,444

830,872

7,050,316

Additions

16,208,132

-

16,208,132

At 31 December 2016

22,427,576

830,872

23,258,448

NET BOOK VALUE

At 31 December 2016

22,427,576

830,872

23,258,448

At 31 December 2015

6,219,444

830,872

7,050,316

Borrowing costs amounting to £2,372,450 have been capitalised in the year.

Assets under construction, with a net book value of £19,607,342, have been financed by loans advanced by SQN

Asset Finance Income Fund Limited. Title is restricted in respect of these assets, which have been pledged as

security for the liabilities as per note 10.

4.

DEBTORS

2016

2015

£

£

Amounts falling due within one year:

Amounts owed by group undertakings

130,887

-

Other debtors

12,500

12,500

VAT

178,564

194,282

321,951

206,782

Amounts falling due after more than one year:

Amounts owed by group undertakings

1,462,471

1,462,471

Aggregate amounts

1,784,422

1,669,253

5.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2016

2015

£

£

Trade creditors

1,205,505

377,039

Amounts owed to group undertakings

182,225

184,000

Other creditors

207,978

223,812

Accrued expenses

6,500

5,000

1,602,208

789,851

.

6.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2016

2015

£

£

Other loans - 1-2 years

1,324,404

208,519

Other loans - 2-5 years

4,856,728

1,007,219

Other loans - more than 5 year

20,066,665

4,988,910

Amounts owed to group undertakings

1,563,782

1,462,471

27,811,579

7,667,119

Amounts falling due in more than five years:

Repayable by instalments

Other loans - more than 5 year

20,066,665

4,988,910

The company entered into a sale and leaseback agreement with SQN Asset Finance Income Fund Limited (SQN)

dated 8 December 2015, in respect of a food waste anaerobic digestion project at Imperial Park, Middlesbrough,

which is currently under construction. The lease will commence on completion of the project, which is expected

in late 2017. This lease will take the form of a finance lease.

During the pre hire period (from 8 December 2015 to lease commencement), the project costs will be financed

by SQN. The amount included in 'Other Loans' above represents the amount owing to the finance company at

31st December 2016 and includes accrued interest of £2,419,296. Interest has been charged at a rate of 12% per

annum.

7.	SECURED DEBTS

The following secured debts are included within creditors:

2016

2015

£

£

Other loans

26,247,797

6,204,648

SQN Asset Finance Income Fund Limited hold a fixed charge over the land at Imperial Park, South Bank,

Middlesbrough and a floating charge over all property or undertakings of the company.

8.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2016

2015

value:

£

£

1,000

Ordinary

£1

1,000

1,000

9.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Lynne Dickson FCA (Senior Statutory Auditor)

for and on behalf of JBC Accountants Limited

10.	OTHER FINANCIAL COMMITMENTS

The company has entered into a contract with BioConstruct GmbH, in relation to the engineering, procurement

and construction of a food waste anaerobic digestion plant. The contract sum is £20,805,000; to date,

£17,684,250 has been invoiced.

11.	ULTIMATE CONTROLLING PARTY

The controlling party is AVG Holdings (Cleveland) Limited.

The ultimate controlling party is AVG Power Limited.

These companies share the registered office of AVG Imperial Limited, details of which can be found in the

Company Information page.