Company Registration No. 09778578 (England and Wales)
Gravel Pit Biogas Limited
Financial statements
for the year ended 30 September 2019
Pages for filing with the Registrar
Gravel Pit Biogas Limited
Contents
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 11
Gravel Pit Biogas Limited
Statement of financial position
As at 30 September 2019
Page 1
2019
2018
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
4
10,836,581
11,176,107
Current assets
Stocks
-
500
Debtors
5
1,242,573
1,455,882
Cash at bank and in hand
78,834
12,016
1,321,407
1,468,398
Creditors: amounts falling due within one year
6
(1,322,848)
(2,057,762)
Net current liabilities
(1,441)
(589,364)
Total assets less current liabilities
10,835,140
10,586,743
Creditors: amounts falling due after more than one year
7
(16,760,478)
(13,850,208)
Net liabilities
(5,925,338)
(3,263,465)
Capital and reserves
Called up share capital
9
200
200
Share premium account
49,820
49,820
Profit and loss reserves
(5,975,358)
(3,313,485)
Total equity
(5,925,338)
(3,263,465)
The directors of the company have elected not to include a copy of the income statement within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
Gravel Pit Biogas Limited
Statement of financial position (continued)
As at 30 September 2019
Page 2
The financial statements were approved by the board of directors and authorised for issue on 30 June 2020 and are signed on its behalf by:
Graham Mackenzie
Director
Company Registration No. 09778578
Gravel Pit Biogas Limited
Notes to the financial statements
For the year ended 30 September 2019
Page 3
1
Accounting policies
Company information
Gravel Pit Biogas Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
123 Pall Mall, London, SW1Y 5EA.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
The company meets its day to day working capital requirements through loans from shareholders.
true
The shareholders have stated that they will not recall the loans to the company whilst it would damage the interests of external creditors. On this basis, the directors consider it appropriate to prepare the financial statements on a going concern basis.
1.3
Turnover
Turnover represents amounts receivable from the generation of gas through anaerobic digestion, net of VAT. Turnover from the sale of biomethane is recognised when gas is exported to the grid, that being the point at which the significant risks and rewards of ownership have passed to the buyer.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings
5 - 20% straight line
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
.
Depreciation is charged from the month following completion of the asset or the commencement of its use.
Gravel Pit Biogas Limited
Notes to the financial statements (continued)
For the year ended 30 September 2019
1
Accounting policies (continued)
Page 4
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
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.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs
to
sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash at bank and in hand
Cash at bank and in hand
are basic financial assets
and
include cash in hand, deposits held at call with banks
and
other short-term liquid investments with original maturities of three months or less
.
Gravel Pit Biogas Limited
Notes to the financial statements (continued)
For the year ended 30 September 2019
1
Accounting policies (continued)
Page 5
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
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
Basic financial liabilities, including creditors and loans from
fellow group companies
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
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.9
Equity instruments
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.
Gravel Pit Biogas Limited
Notes to the financial statements (continued)
For the year ended 30 September 2019
1
Accounting policies (continued)
Page 6
1.10
Leases
Rentals payable under operating leases are charged to income on a straight line basis over the
lease
term
.
1.11
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the income statement for the period.
2
Critical accounting judgements and key sources of estimation uncertainty
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant
effect on amounts recognised in the financial statements.
Impairment of Fixed Assets
At each reporting period end, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication of impairment. If there is any such indication, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
3
Employees
The company had no employees during the current or prior year.
Gravel Pit Biogas Limited
Notes to the financial statements (continued)
For the year ended 30 September 2019
Page 7
4
Tangible fixed assets
Land and buildings
£
Cost
At 1 October 2018
11,868,342
Additions
421,268
Disposals
(160,141)
At 30 September 2019
12,129,469
Depreciation and impairment
At 1 October 2018
692,235
Depreciation charged in the year
600,653
At 30 September 2019
1,292,888
Carrying amount
At 30 September 2019
10,836,581
At 30 September 2018
11,176,107
Included within the carrying amount of land and buildings is loan interest totalling £1,796,307 (2018: £1,897,035).
5
Debtors
2019
2018
as restated
Amounts falling due within one year:
£
£
Trade debtors
31,134
-
Other debtors
1,211,439
1,455,882
1,242,573
1,455,882
Gravel Pit Biogas Limited
Notes to the financial statements (continued)
For the year ended 30 September 2019
Page 8
6
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
1,198,794
1,493,346
Other creditors
124,054
564,416
1,322,848
2,057,762
Iona Environmental Infrastructure LP has fixed charges over certain assets of the company as well as a floating charge over the entire property and undertaking of the company.
7
Creditors: amounts falling due after more than one year
2019
2018
£
£
Other creditors
16,760,478
13,850,208
Interest of 12.5% per annum is payable on loans of £16,510,478 (2018: £13,850,208). During the year, £1,878,259 (2018: £1,585,308) was accrued. £1,878,259 (2018: £1,585,308) has been taken to profit or loss.
Interest of 4% per annum is payable on loans of £250,000 (2018: nil). During the year, £6,521 (2018: nil) was accrued. £6,521(2018: nil) has been taken to profit or loss.
Creditors which fall due after five years are as follows:
2019
2018
£
£
Payable by instalments
-
10,387,656
8
Deferred taxation
The directors have considered future profit projections and do not expect to utilise tax losses of £1,109,850 (2018: £346,292)
as it is not probable that they will be recovered against future taxable profits
.
Gravel Pit Biogas Limited
Notes to the financial statements (continued)
For the year ended 30 September 2019
Page 9
9
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
200 Ordinary shares of £1 each
200
200
10
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Kenneth McDowell.
The auditor was Saffery Champness LLP.
11
Operating lease commitments
Lessee
The company has entered into an agreement for the lease of land at £50,000 per annum until 25 September 2040, with a break option on the 20th anniversary of the project's commercial cperations date.
12
Events after the reporting date
Working capital loans
Subsequent to the balance sheet date, additional loans totaling £
450
,000 were received from Iona
Environmental Infrastructure LP to fund working
capital. In April 2020, all loan note instruments and associated interest were consolidated into fixed rate secured loan notes 2036.
COVID-19
Subsequent to the year end the company, like many others throughout the UK, has been affected by the COVID-19 pandemic. At the date of approval of the financial statements, the
company
have prepared and approved up to date management accounts, budgets and cash flow projections. As well as this, t
he shareholders have stated that they will not recall the loans to the company whilst it would damage the interests of external creditors.
Having considered the matters above, the
company is
of the view that
it
will have sufficient resources to continue to operate and meet debts as they fall due for the foreseeable future. The financial statements have therefore been drawn up on a going concern basis.
Gravel Pit Biogas Limited
Notes to the financial statements (continued)
For the year ended 30 September 2019
Page 10
13
Related party relationships and transactions
During the year, loans totalling £932,923 (2018: £470,000) were advanced by Iona Environmental Infrastructure LP and £150,000 (2018: nil) was repaid during the year. As at the year end, the company owed Iona Environmental Infrastructure LP £16,510,478 (2018: £13,850,208). This balance is included within note 8 under "other creditors". Interest of £1,877,348 (2018: £1,584,481) was charged on these loans during the year.
Interest of £5,654 (2018: £4,743) has been accrued on the loan from Iona Environmental Infrastructure LP and is included within note 7 under "other creditors".
Iona Capital Limited charged directors fees of £16,459 (2018: £16,094) and management charges of £27,364 (2018:£26,801) in the year. Iona Capital Limited is a member of Iona El (General Partner) LLP, which is the General Partner of Iona Environmental Infrastructure LP.
Two directors of the company, Christopher Jones and David Jones, are partners in D & J A Jones. During the year, loans totalling £250,000 (2018: nil) were advanced by D & J A Jones. As at the year end, the company owed D & J A Jones £250,000 (2018: nil), this balance is included within note 8 under "other creditors". Interest of £6,521 (2018: nil) was accrued on these loans during the year and is included within note 7 under "other creditors".
Purchases of £565,682 (2018: £533,691) were made between the company and D & J A Jones with an outstanding trade creditor balance at the year end of £246,297 (2018: £299,701).
14
Parent company
In the opinion of the directors, the immediate controlling party is Iona Environmental Infrastructure LP due to their majority shareholding in the company.
15
Prior year adjustment
The company has recognised prior year adjustments as follows:
Reconciliation of changes in equity
1 October
30 September
2017
2018
£
£
Adjustments to prior year
Deferred tax asset
(101,062)
(346,292)
Equity as previously reported
(425,305)
(2,917,173)
Equity as adjusted
(526,367)
(3,263,465)
Gravel Pit Biogas Limited
Notes to the financial statements (continued)
For the year ended 30 September 2019
15
Prior year adjustment (continued)
Page 11
Reconciliation of changes in loss for the previous financial period
2018
£
Adjustments to prior year
Deferred tax asset
(245,229)
Loss as previously reported
(2,491,868)
Loss as adjusted
(2,737,097)
Notes to reconciliation
Deferred tax asset
The directors have reassessed assumptions around the recognition of deferred tax assets and consider that the company did not have projected profits such as to be able to recognise deferred tax assets in prior years. On this basis, the previously presented deferred tax assets have been released by way of a prior year adjustment.
2019-09-30
2018-10-01
false
30 June 2020
CCH Software
CCH Accounts Production 2019.301
No description of principal activity
This audit opinion is unqualified
Philip Davies
Michael Dunn
Christopher Jones
David Jones
Graham Mackenzie
Peter Mills
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