The Directors of Sutton Bridge Power Generation ("the Company") present their Strategic Report for the year ended 31 March 202 2 .
The Company has presented its financial statements under Financial Reporting Standard 102 (FRS 102). The Company is registered in England and Wales.
Principal Activity
The principal activity of the Company during the year continued to be the operation and maintenance of a gas-fired power station at Sutton Bridge, Lincolnshire.
Health, Safety and Environmental
Health and Safety (“H&S”) has and will continue to be of utmost importance to the Company, its directors and staff.
The Directors are happy to report that Health and Safety (“H&S”) continued to be excellent with no lost time accidents, a low level of near misses and a high level of management and staff safety walks.
The Company’s excellent environmental record continued with no breaches during the year.
Financial performance
The loss for the year before taxation, amounted to £8,759,000 (2021: £226,940,000 profit). The prior year results are significantly impacted by an exceptional income balance in the year of £244,572,000.
The current year performance is inline with the directors’ expectations of a plant that is in a preserved state.
On 24 August 2020 the Company went into administration and placed the power station into a state of managed preservation which triggered a number of impairments in the year ended March 2020, however, on 26 March 2021 the Company successfully exited administration via a Creditors Voluntary Arrangement (“CVA”). As part of this process, £244,978,000 of liability balances were released creating an exceptional income in the profit and loss account for the year ended 31 March 2021. This release comprised of £237,320,000 of amounts previously due to group companies and £7,658,000 of trade creditor balances as certain external supplier contracts were terminated. The year ended 31 March 2021 also saw a further impairment being recognised against amounts due from group companies of £406,000 due to the impact of administration in those respective companies.
Following the restructuring of liabilities from the CVA process, as at 31 March 2021, the Company has strengthened its balance sheet significantly with net assets of £114,978,000 (2021: £123,708,000 net assets) and net current liabilities of £5,260,000 (2021: £773,000 net current assets).
On March 27 th 2022, the CVA was completed.
Future Outlook
Following the successful exit of administration, the Directors plan that the station will be held in a state of managed preservation whilst strategic options are explored.
In addition, the Directors and management team are continually looking at ways to optimise the cost base to help the financial performance of the business.
The business still faces a number of areas of uncertainty such as those detailed in the principal risks and uncertainties section below.
The management of the Company and the execution of the Company’s strategy are subject to risks typically associated with the operation of a power plant in the UK. The key business risks and uncertainties affecting the Company, when operational, and other power plants in the UK market include volatility within the UK and European energy markets and health and safety and plant availability.
As noted in the Future Outlook section of this report, following the successful exit of the administration the station will be held in a state of managed preservation, the key principal risk to the Company still remains that of Health and Safety.
Health and Safety risk
The Health and Safety of all employees, contractors and visitors who attend the site is a key risk for the Company. To mitigate this risk the Company staff attend regular H&S updates. H&S KPIs are key statistics managed by the senior staff. Feedback systems and other H&S initiatives are used to help create a culture that has H&S as one of its key priorities.
Whilst in pr e se r vation , the main objectives of the Company are to maintain an exemplary Health and Safety record .
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Year ended 31 March 202 2 |
Year ended 31 March 202 1 |
Definition, method of calculation |
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Days without Lost Time Accident |
409 |
44 |
The number of days since the last accident that require an employee or contractor to be off work for a period greater than 24 hours. |
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The Directors have selected Days without Lost Time Accident as its Health and Safety KPI due to its industry standard calculation and comparison.
Future KPIs will be reviewed by the Directors in light of the ongoing preservation status.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 March 2022.
The results for the year are set out on page 9.
The Directors cannot recommend the payment of a dividend (202 1 : £nil).
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Details of the Company’s future outlook are disclosed in the Strategic Report.
The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Objectives and policies
The Company's operations expose it to a variety of financial risks that include the effects of interest rate risk and cash flow risk. The Company has in place a risk management program that seeks to limit the adverse effects of these risks on the financial performance of the Company .
On 24 June 2020 Calon Energy Limited ('the parent Group’) – the parent company of Sutton Bridge Power Generation (‘the Company’) entered administration.
The Directors have prepared a cash flow forecast for the period to 31 March 2025 which represents the Directors’ best estimate of the future development of the Company.
Having consulted with the secured lender, the Directors had agreed the material terms of an appropriate funding agreement which all parties envisaged would be signed. However whilst this arrangement was being finalised, the parties operated a flexible funding arrangement which provided funding on a month-by-month basis at the discretion of the secured lender.
Whilst it is still anticipated that the funding agreement will be entered into, the directors and secured lender anticipate that the flexible funding arrangement will be retained for the foreseeable future.
Based on the ongoing positive relationship with the secured lender and following preparation of detailed forecasts, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future and as such, believe that it remains appropriate to prepare the financial statements on a going concern basis. In making this judgement, the Directors expect that the Company’s principal activity of the operation of a gas-fired power station at Sutton Bridge, Lincolnshire will continue.
The Directors also recognise that from an accounting perspective the absence of any formal long term funding arrangement creates a small level of uncertainty and therefore risk that the required level of support may not be received for the necessary timescales.
This constitutes a material uncertainty related to the assumptions described above which may cast doubt on the Company’s ability to continue as a going concern. The financial statements do not include the adjustments that would result if the Company were unable to continue as a going concern. In the event the Company ceased to be a going concern, the adjustments would include writing down the carrying value of assets, to their recoverable amount and providing for any further liabilities that might arise.
In addition to the third party funding, the directors have confirmation from the parent Group companies that the intercompany amounts due to them will not be requested within 12 months of the approval date of these accounts. The parent Group companies have confirmed that it is not currently their intention to demand repayment. Due to the relationship with the parent Group companies, the directors are of the view that the intercompany amounts will not be requested in the next 12 months, however the confirmation received does create a material uncertainty as it is not a guarantee that the intercompany creditors will not be recalled within 12 months from the approval dates of these accounts.
Notwithstanding the material uncertainties described above, on the basis of sensitivities applied to the cash flow forecast and that further support can be agreed in the relevant timescale, the Directors have a reasonable expectation that the Company can continue to meet its liabilities as they fall due, for a period of at least 12 months from the date of approval of this report.
Basis for opinion
Material uncertainty relating to going concern
We draw attention to note 1 in the financial statements, which indicates that the company and its funders have put in place short-term funding arrangements sufficient for the company to exit administration. However, there remains some uncertainty on the exact timing of signing the longer-term funding agreement thus giving rise to a risk that the required level of support may not be received in the necessary timescales or at all. In addition, note 1 also details that although the group has received confirmation that it is not the current intention for the lending group entities to recall the amounts owed by the company in the 12 months from the date of the approval of these accounts, this is not a guarantee and therefore creates a material uncertainty.
As stated in note 1, these events or conditions, along with the other matters as set forth in note 1 to the financial statements, indicate that a material uncertainty exists that may cast doubt on the Company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit :
the information given in the strategic report and the directors' r eport for the financial year for which the financial statements are prepared is consistent with the financial statements ; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
As explained more fully in the directors' r esponsibilities s tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements , the directors are responsible for assessing the company ' s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements .
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
Sutton Bridge Power Generation is a private unlimited company incorporated in England and Wales . The registered office is Severn Power Station, West Nash Road, Newport, United Kingdom, NP18 2BZ.
The functional currency of the Company is considered to be pounds sterling because that is the currency of the primary economic environment in which the Company operates.
On 24 June 2020 Calon Energy Limited ('the parent Group’) – the parent company of Sutton Bridge Power Generation (‘the Company’) entered administration.
The Directors have prepared a cash flow forecast for the period to 31 March 2025 which represents the Directors’ best estimate of the future development of the Company.
Having consulted with the secured lender, the Directors had agreed the material terms of an appropriate funding agreement which all parties envisaged would be signed. However whilst this arrangement was being finalised, the parties operated a flexible funding arrangement which provided funding on a month-by-month basis at the discretion of the secured lender.
Whilst it is still anticipated that the funding agreement will be entered into, the directors and secured lender anticipate that the flexible funding arrangement will be retained for the foreseeable future.
Based on the ongoing positive relationship with the secured lender and following preparation of detailed forecasts, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future and as such, believe that it remains appropriate to prepare the financial statements on a going concern basis. In making this judgement, the Directors expect that the Company’s principal activity of the operation of a gas-fired power station at Sutton Bridge, Lincolnshire will continue.
The Directors also recognise that from an accounting perspective the absence of any formal long term funding arrangement creates a small level of uncertainty and therefore risk that the required level of support may not be received for the necessary timescales.
This constitutes a material uncertainty related to the assumptions described above which may cast doubt on the Company’s ability to continue as a going concern. The financial statements do not include the adjustments that would result if the Company were unable to continue as a going concern. In the event the Company ceased to be a going concern, the adjustments would include writing down the carrying value of assets, to their recoverable amount and providing for any further liabilities that might arise.
In addition to the third party funding, the directors have confirmation from the parent Group companies that the intercompany amounts due to them will not be requested within 12 months of the approval date of these accounts. The parent Group companies have confirmed that it is not currently their intention to demand repayment. Due to the relationship with the parent Group companies, the directors are of the view that the intercompany amounts will not be requested in the next 12 months, however the confirmation received does create a material uncertainty as it is not a guarantee that the intercompany creditors will not be recalled within 12 months from the approval dates of these accounts.
Notwithstanding the material uncertainties described above, on the basis of sensitivities applied to the cash flow forecast and that further support can be agreed in the relevant timescale, the Directors have a reasonable expectation that the Company can continue to meet its liabilities as they fall due, for a period of at least 12 months from the date of approval of this report.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss .
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss , unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss , unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
Basic financial assets, including trade and other receivables, cash and bank balances are initially recognised at transaction price.
Financial assets are derecognised when substantially all the risks and rewards of the ownership of the asset are transferred to another party.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss , except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities, including trade and other payables, bank loans and loans from fellow Group companies are initially recognised at transaction price.
Debt is initially stated at the amount of the net proceeds after deduction of issue costs. The carrying amount is increased by the finance cost in respect of the accounting period and reduced by payments made in the period.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are s ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value th r ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Derivative financial instruments
The Company uses derivative financial instruments to reduce exposure to foreign exchange risk and commodity price movements. The Company does not hold or issue derivative financial instruments for speculative purposes.
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designed and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
Fair value measurement
The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, an entity estimates the fair value by using a valuation technique.
Finance costs
Finance costs of debt are recognised in the statement of income and retained earnings over the remaining term of such instruments, at a constant rate on the carrying amount.
Interest Income
Interest income is recognised when it is probable that the economic benefits will flow to the Company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on initial recognition.
Decommissioning costs
At the statement of financial position date, provision is made for the net present value of the estimated cost of decommissioning the power station at the end of its useful life. A related decommissioning asset is recognised in tangible fixed assets and is amortised over the remaining life of the power station. The unwinding of the discount on the provision is included in the statement of income and retained earnings within net interest payable and similar charges.
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
In the application of the Company’s accounting policies, which are described above, the Directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Critical judgements in applying the Company’s accounting policies
The following are the critical judgements that the Directors have made in the process of applying the Company’s accounting policies and that have the most significant effect on the amount recognised in the financial statements.
An estimation is required of the value in use of the cash-generating unit to which the fixed assets belong. The value in use pre-tax cash flow projections are based on the Group’s business plan. The business plan is based on past experience, and adjusted to reflect market trends, economic conditions, key risks, the implementation of strategic objectives and changes in commodity prices, as appropriate. Commodity prices used in the planning process are based on observable market data. In completing the impairment review the Directors have satisfied themselves that the estimates made are reasonable. However, the Company’s activities are in a complex market and historically challenging conditions, and a number of sensitivities indicate further impairments, highlighting the importance of those judgements taken.
In order to assess whether it is appropriate for the Group to be reported as a going concern, the Directors apply judgement, having considered the business activities, the Group's principal risks and uncertainties, cash flow projections and external factors. In arriving at this judgement there are a large number of assumptions and estimates involved in calculating these future cash flow projections and the prospect of securing the additional support that will be required.
The key assumptions concerning the future and other key sources of estimation uncertainty at the statement of financial position date, that have a risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Determining whether fixed assets are impaired requires an estimation of the value in use of the cash-generating unit to which the fixed assets belong. The value in use calculation requires the Directors to estimate the future cash flows expected to arise from the cash-generating unit and a suitable discount rate in order to calculate present value. The future cash flows are based on estimates of commodity prices, plant activity and market conditions which are inherently uncertain .
The estimated cost of decommissioning at the end of the useful economic life of the plant is reviewed periodically and provision is made for the estimated cost at the statement of financial position date. The total expected future decommissioning costs are uncertain and dependent on the life of the plant and the future inflation rates applied to the most recent valuation of decommissioning costs . The provision is also dependent on the selection of a suitable discount rate to calculate present value. Changes to these selected rates produce material changes in the value of the provision as shown below.
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£'000 |
Provision at 31 March 2022 |
5,574 |
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Discount rate changed to 1.78% |
5,635 |
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Inflation changed to 5% |
6,283 |
On 26 March 2021 the Company successfully exited administration via a Creditors Voluntary Arrangement (“CVA”). As part of this process, £244,978,000 of liability balances were released , creating an exceptional income in the profit and loss account for the year ended 31 March 2021. This release comprised of £237,32 0 ,000 of amounts previously due to group companies and £7,658,000 of trade creditor balances as certain external supplier contracts were terminated. The year ended 31 March 2021 also saw a further impairment being recognised against amounts due from group companies of £406,000 due to the impact of administration in those respective companies
The average monthly number of persons (including directors) employed by the company during the year was:
Their aggregate remuneration comprised:
Directors do not receive remuneration by the Company itself. In the prior year, t wo Directors we re remunerated by other companies within the Group through salaries for their services to the group as a whole. Their total remuneration was £0 (202 1: £ 626, 000) with pension contributions for one Director of £ 0 (202 1 : £1 7 ,000). The highest paid director received emoluments of £0 (202 1 : £ 42 4,000) and pension contributions of £ 0 (202 1 : £ 0 ). The number of directors accruing retirement benefits under a money purchase scheme is 0 (2021: 1).
Two directors were remunerated by the Company through fees for services to the Group as a whole.
Total fees paid in the year were £403,000 (2021: £173,000) . It is not possible to allocate their remuneration between their services as Directors of different companies.
Investment income includes the following:
The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
Included in plant and machinery is £3,077,000 (2021: £3,077,000) comprising the net book value of the asset relating to the decommissioning provision.
The cumulative borrowing costs capitalised total £37,144,000 (2021: £37,144,000). Interest was charged on the loans relating to capital expenditure at a rate of 4.5% above the LIBOR base rate.
During the current year, no impairment of group debtor balances was triggered. In the prior year, an impairment of £406,000 in the amount due from Group companies was recognised in the Company.
The amounts owed by Group companies are unsecured.
In the prior year, a reduction of £237,321,000 in the amount due to Group companies was recognised in the Company along with a £7,658,000 reduction in trade creditors where several contracts were terminated. No such reductions occurred in the current year.
Other loans relates to the funding received from the secured lender. This funding has a variable interest rate of 9% and there are no fixed terms for repayment.
The decommissioning provision provides for the future costs of decommissioning the Sutton Bridge Power station. The provision is based on the net present value of the Company’s share of the expenditure which may be incurred at the end of the life of the power station (currently estimated to be around 1 7 years’ time).
The company operate d a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
On 30 April 2015 Calon Energy Limited drew on an existing facility in place with Beal Bank. The facilities agreement provided debt to purchase the Sutton Power Generation Limited Power site. The shares in Severn Power Limited and the asset purchased were provided as security for the facilities.
As mentioned in the Going Concern note the details of the new facility are currently in negotiation with the secured lender and are expecting to be completed during the following year.
In accordance with section 33 of FRS102 ‘Related party disclosures’, the Company is exempt from disclosing transactions with entities that are part of the Calon Energy Group as it is a wholly-owned subsidiary of Calon Energy Limited.
During the prior year, the Company transacted on an arm’s length basis with Macquarie Bank Limited in relation to the Energy Management Service Agreement as follows. There were no such transactions in the year ended 31 March 2022.
Year ended 31 March 2021
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Value of transactions (to)/from the Group during the year £’000 |
Outstanding amount due to/(from) the Group as at 31 March 2021 £’000 |
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Transaction fees |
(131) |
- |
Carbon trading charges |
- |
- |
Other fees |
(180) |
- |
Net sales of power |
16,122 |
- |
Net purchases of gas |
(9,476) |
- |
Net purchases of carbon |
(18,338) |
- |
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(12,003) |
- |
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Sutton Bridge Power Systems (London) Limited owns 100% of the ordinary share capital in Sutton Bridge Power Generation and is considered to be the immediate parent company.
Calon Energy Limited, a company incorporated in England and Wales, heads the smallest group for which consolidated financial statements would be prepared and is regarded as the ultimate controlling party of the Group. However, on 24 June 2020 both Sutton Bridge Power Systems (London) Limited and Calon Energy Limited entered administration and therefore there is no requirement to prepare consolidated financial statements.