Cornish Wind Ltd - Period Ending 2016-12-31

Registration number: 08822887

Cornish Wind Ltd

Unaudited Filleted Financial Statements

for the Year Ended 31 December 2016
 

Houndiscombe Consultants Limited
T/A Condy Mathias Chartered Accountants
3 Atlas House
West Devon Business Park
Tavistock
Devon
PL19 9DP

Cornish Wind Ltd

Contents

Company Information	1
Accountants' Report	2
Balance Sheet	3
Notes to the Financial Statements	4 to 9

Cornish Wind Ltd

Company Information

Directors

Mr Richard Mark Quinn Mr Michael Winston Davey Mr Andrew Roger Jones

Registered office

Suite 26 Atlas House West Devon Business Park Tavistock Devon PL19 9DP

Accountants

Houndiscombe Consultants Limited T/A Condy Mathias Chartered Accountants 3 Atlas House West Devon Business Park Tavistock Devon PL19 9DP

Page 1

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Cornish Wind Ltd
for the Year Ended 31 December 2016

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Cornish Wind Ltd for the year ended 31 December 2016 as set out on pages 3 to 9 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at
http://www.icaew.com/en/members/regulations-standards-and-guidance/.

This report is made solely to the Board of Directors of Cornish Wind Ltd, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts of Cornish Wind Ltd and state those matters that we have agreed to state to the Board of Directors of Cornish Wind Ltd, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Cornish Wind Ltd and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Cornish Wind Ltd has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Cornish Wind Ltd. You consider that Cornish Wind Ltd is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of Cornish Wind Ltd. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.

......................................

Houndiscombe Consultants Limited
T/A Condy Mathias Chartered Accountants
3 Atlas House
West Devon Business Park
Tavistock
Devon
PL19 9DP

28 September 2017

Page 2

Cornish Wind Ltd

(Registration number: 08822887)
Balance Sheet as at 31 December 2016

	Note	2016 £	2015 £
Fixed assets
Tangible assets	3	877,253	928,852
Current assets
Debtors	4	87,554	149,690
Cash at bank and in hand		25,471	37,451
		113,025	187,141
Creditors: Amounts falling due within one year	5	(234,911)	(465,819)
Net current liabilities		(121,886)	(278,678)
Total assets less current liabilities		755,367	650,174
Creditors: Amounts falling due after more than one year	5	(286,938)	(417,913)
Provisions for liabilities		(98,246)	(72,894)
Net assets		370,183	159,367
Capital and reserves
Called up share capital		3	3
Profit and loss account		370,180	159,364
Total equity		370,183	159,367

For the financial year ending 31 December 2016 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 22 September 2017 and signed on its behalf by:
 

......................................... Mr Richard Mark Quinn Director

......................................... Mr Michael Winston Davey Director

......................................... Mr Andrew Roger Jones Director

The notes on pages 4 to 9 form an integral part of these financial statements.

Page 3

Cornish Wind Ltd

Notes to the Filleted Financial Statements for the Year Ended 31 December 2016

1	General information

The company is a private company limited by share capital incorporated in England and Wales.

The address of its registered office is:
Suite 26
Atlas House
West Devon Business Park
Tavistock
Devon
PL19 9DP
United Kingdom

The principal place of business is:
Rose Park Farm
Otterham
Camelford
Cornwall
PL32 9SW

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Wind turbine	5% straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Page 4

Cornish Wind Ltd

Notes to the Filleted Financial Statements for the Year Ended 31 December 2016

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Page 5

Cornish Wind Ltd

Notes to the Filleted Financial Statements for the Year Ended 31 December 2016

3	Tangible assets

	Other property, plant and equipment  £	Total £
Cost or valuation
At 1 January 2016	1,031,918	1,031,918
At 31 December 2016	1,031,918	1,031,918
Depreciation
At 1 January 2016	103,066	103,066
Charge for the year	51,599	51,599
At 31 December 2016	154,665	154,665
Carrying amount
At 31 December 2016	877,253	877,253
At 31 December 2015	928,852	928,852

Page 6

Cornish Wind Ltd

Notes to the Filleted Financial Statements for the Year Ended 31 December 2016

4

Debtors

	2016 £	2015 £
Trade debtors	65	15,420
Other debtors	87,489	134,270
Total current trade and other debtors	87,554	149,690

5

Creditors

	Note	2016 £	2015 £
Due within one year
Bank loans and overdrafts	6	130,531	126,531
Trade creditors		178	206
Amounts owed to group undertakings and undertakings in which the company has a participating interest	7	26,957	95,601
Taxation and social security		2,064	5,366
Other creditors		75,181	238,115
		234,911	465,819
Due after one year
Loans and borrowings	6	286,938	417,913

	2016 £	2015 £
After more than five years by instalments	-	11,901

6	Loans and borrowings

	2016 £	2015 £
Non-current loans and borrowings
Bank borrowings	189,321	291,724
Other borrowings	97,617	126,189
	286,938	417,913

Page 7

Cornish Wind Ltd

Notes to the Filleted Financial Statements for the Year Ended 31 December 2016

	2016 £	2015 £
Current loans and borrowings
Bank borrowings	101,959	97,959
Other borrowings	28,572	28,572
	130,531	126,531

Bank borrowings

The company has a Barclays bank loan which is denominated in sterling with a nominal interest rate of 3.5%, and the final instalment is due on 5 August 2019. The carrying amount at year end is £291,281 (2015 - £389,683). The loan is secured by a legal charge over land known as 'Turbine site, Trethorne, Kennards House, Launceston'.

Included in the loans and borrowings are the following amounts due after more than five years:

Other loans after five years

Loan from R D & A R Jones which is repayable over 7 years at an interest rate of 7%.

7	Related party transactions

Transactions with directors

Other transactions with directors

Included within creditors is a loan account from Brownbrink Limited, a company controlled by Mr M W Davey, director, of £26,957 (2015: £95,601).

Included within other creditors is a director's current account from Mr R M Quinn of £27,754 (2015: £137,754).

Included within other creditors is a director's current account from Mr A R Jones of £26,115 (2015: £94,759).

These loans are repayable on demand. Interest is charged periodically on these loans as agreed by the directors.

Included within other creditors is a further loan of £126,189 (2015: £154,761) from a partnership known as R D & A R Jones, a partnership in which Mr A R Jones, director, is a partner. Interest is being charged at a rate of 7% per annum. This loan is being repaid over 7 years.

The directors' have provided a personal guarantee of £330,000 to the bank in respect of the loan from Barclays Bank.

Page 8

Cornish Wind Ltd

Notes to the Filleted Financial Statements for the Year Ended 31 December 2016

8	Transition to FRS 102

This is the first year that the company has presented its results under FRS 102. The last financial statements under United Kingdom Generally Accepted Accounting Practice (UK GAAP) were for the year ended 31 December 2015. The date of transition to FRS 102 was 1 January 2015.

The changes in accounting policies have had no impact on the profit for the financial year ended 31 December 2015 nor the total equity as at 1 January 2015 and 31 December 2015 between UK GAAP as previously reported and FRS 102.

Page 9