Community Energy Scheme UK Limited
Annual Report and Financial Statements
For the year ended 31 March 2021
Company Registration No. 10613447 (England and Wales)
Community Energy Scheme UK Limited
Company Information
Directors
D N Elbourne
P R Smit
Ms J Clare
Mr R M Butt
Company number
10613447
Registered office
Unit 8 Peerglow Centre
Marsh Lane
Ware
Hertfordshire
United Kingdom
SG12 9QL
Auditor
Moore Kingston Smith LLP
4 Victoria Square
St Albans
Hertfordshire
AL1 3TF
Business address
8 Peerglow Centre
Marsh Lane
Ware
Hertfordshire
United Kingdom
SG12 9QL
Community Energy Scheme UK Limited
Contents
Page
Directors' report
1 - 2
Independent auditor's report
3 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 21
Community Energy Scheme UK Limited
Directors' Report
For the year ended 31 March 2021
Page 1
The directors present their annual report and financial statements for the year ended 31 March 2021.
Principal activities
The principal activity of the company continued to be that of holding company.
Results and dividends
During the year the company made a loss after tax of £252,356 (2020: £97,856)
No dividends have been paid or proposed for the year (2020: £nil).
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
D N Elbourne
P R Smit
Ms J Clare
Mr R M Butt
Auditor
The auditor, Moore Kingston Smith LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s
auditor
is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s
auditor
is aware of that information.
Community Energy Scheme UK Limited
Directors' Report (Continued)
For the year ended 31 March 2021
Page 2
Going concern
As mentioned in the going concern disclosure note 1.2, the directors are confident that the company has sufficient financial resources to continue to trade and meet its liabilities as they fall due.
Greenhouse gas emissions, energy consumption and energy efficiency action
The company is exempt from reporting under SECR as a low energy user. The company is committed to environmental sustainability and aims to minimise its impact on the environment by continually sourcing its energy from renewable sources.
On behalf of the board
D N Elbourne
Director
16 December 2022
Community Energy Scheme UK Limited
Independent Auditor's Report
To the Members of Community Energy Scheme UK Limited
Page 3
Opinion
We have audited the financial statements of Community Energy Scheme UK Limited (the 'company') for the year ended 31 March 2021 which comprise the Profit and Loss Account, the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and notes to the financial statements, including significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 31 March 2021 and of its loss for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
Auditor's
responsibilities for the audit of the
financial statements
section of our report. We are independent of the
company
in accordance with the ethical requirements that are relevant to our audit of the
financial statements
in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Community Energy Scheme UK Limited
Independent Auditor's Report (Continued)
To the Members of Community Energy Scheme UK Limited
Page 4
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 Directors'
R
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the Directors' Report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the Directors'
R
eport
.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of
remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit; or
-
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the Directors' Report and take advantage of the small companies exemption from the requirement to prepare a Strategic Report.
Responsibilities of directors
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.
Community Energy Scheme UK Limited
Independent Auditor's Report (Continued)
To the Members of Community Energy Scheme UK Limited
Page 5
Auditor's responsibilities for the audit of the financial statements
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
.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
-
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. 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.
-
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company’s internal control.
-
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
-
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.
-
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Community Energy Scheme UK Limited
Independent Auditor's Report (Continued)
To the Members of Community Energy Scheme UK Limited
Page 6
Explanation as to what extent 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, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.
Our approach was as follows:
-
We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation.
-
We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance.
-
We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
-
We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
-
Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
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.
Silvia Vitiello (Senior Statutory Auditor)
for and on behalf of Moore Kingston Smith LLP
19 December 2022
Chartered Accountants
Statutory Auditor
4 Victoria Square
St Albans
Hertfordshire
AL1 3TF
Community Energy Scheme UK Limited
Profit and Loss Account
For the year ended 31 March 2021
Page 7
2021
2020
Notes
£
£
Administrative expenses
(210,609)
(85,480)
Interest receivable and similar income
6
442,072
498,873
Interest payable and similar expenses
7
(500,219)
(511,249)
Loss before taxation
(268,756)
(97,856)
Tax on loss
8
Loss for the financial year
(268,756)
(97,856)
The Profit and Loss Account has been prepared on the basis that all operations are continuing operations.
Community Energy Scheme UK Limited
Statement of Comprehensive Income
For the year ended 31 March 2021
Page 8
2021
2020
£
£
Loss for the year
(268,756)
(97,856)
Other comprehensive income
-
-
Total comprehensive income for the year
(268,756)
(97,856)
Community Energy Scheme UK Limited
Balance Sheet
As at 31 March 2021
Page 9
2021
2020
Notes
£
£
£
£
Fixed assets
Intangible assets
9
1,320,000
1,500,000
Investments
10
3
3
1,320,003
1,500,003
Current assets
Debtors
12
13,132,159
12,623,018
Cash at bank and in hand
89,673
174,738
13,221,832
12,797,756
Creditors: amounts falling due within one year
13
(33,257)
(20,643)
Net current assets
13,188,575
12,777,113
Total assets less current liabilities
14,508,578
14,277,116
Creditors: amounts falling due after more than one year
14
(8,366,288)
(7,866,070)
Net assets
6,142,290
6,411,046
Capital and reserves
Called up share capital
16
7,089,501
7,089,501
Profit and loss reserves
(947,211)
(678,455)
Total equity
6,142,290
6,411,046
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 16 December 2022 and are signed on its behalf by:
Ms J Clare
Director
Company Registration No. 10613447
Community Energy Scheme UK Limited
Statement of Changes in Equity
For the year ended 31 March 2021
Page 10
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2019
3,351,000
(580,599)
2,770,401
Year ended 31 March 2020:
Loss and total comprehensive income for the year
-
(97,856)
(97,856)
Issue of share capital
16
3,738,501
-
3,738,501
Balance at 31 March 2020
7,089,501
(678,455)
6,411,046
Year ended 31 March 2021:
Loss and total comprehensive income for the year
-
(268,756)
(268,756)
Balance at 31 March 2021
7,089,501
(947,211)
6,142,290
Community Energy Scheme UK Limited
Notes to the Financial Statements
For the year ended 31 March 2021
Page 11
1
Accounting policies
Company information
Community Energy Scheme UK Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
Unit 8 Peerglow Centre, Marsh Lane, Ware, Hertfordshire, United Kingdom, SG12 9QL.
The company's activity continued to be that of investment in solar power technology.
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.
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. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
-
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues
: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
-
Section 33 ‘Related Party Disclosures’
:
Compensation for key management personnel
.
The company has taken advantage of the exemption under section 400 of the
Companies Act 2006 not to prepare consolidated accounts. The
financial statements
present information about the company as an individual entity and not about its group
.
Community Energy Scheme UK Limited is subsidiary of ABN AMRO Bank N.V and the results of Community Energy Scheme UK Limited are included in the consolidated financial statements of ABN AMRO Bank N.V which are available from Unit 8 Peerglow Centre, Marsh Lane, Ware, SG12 9QL.
Community Energy Scheme UK Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2021
1
Accounting policies
(Continued)
Page 12
1.2
Going concern
The financial statements
true
are
prepared on the going concern basis
. The directors of the parent company have confirmed that they will not call in the loans within 12 months of the date of approval of the financial statements and has also confirmed that further support will be provided if necessary to enable the company to continue to trade and meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements.
As at 31 March 2021 the company had net assets of £6
,142,2
90 (2020: £6,411,046) and made a loss for the year of £2
68,756
(2020: £97,856).
Revenue generation and the timely settlement of terms and invoices by customers has a direct bearing
on the Company’s ability to generate sufficient cash flows for working capital purposes and fund existing
operations and to finance future growth plans. For these reasons, the generation of sufficient operating
cash flows remains at heightened risk.
The directors have stress tested the revenue assumptions included in the Group’s cash projections
through to 31 January 2024
under a number of scenarios by forecasting a reduction in revenues by
more than 10%, 25% and 50% and have considered measures in line with the Business Continuity
Plans that can be taken to defer certain overheads for a period of at least 12 months from the date of
approval of these financial statements. Based on these tests and based on the current level of bank
balances available to the Company, the directors believe the Company will generate sufficient working
capital and cash flows to continue in operational existence. Whilst these assumptions have been
incorporated into the cash projections, the directors are optimistic that the impact on the Group will not be as severe as this, based on external indicators.
1.3
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Development costs
10% on cost
1.4
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in
profit
or
loss
.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Community Energy Scheme UK Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2021
1
Accounting policies
(Continued)
Page 13
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible 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
Cash at bank and in hand
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
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 balance sheet 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
and cash and bank balances, 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.
Community Energy Scheme UK Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2021
1
Accounting policies
(Continued)
Page 14
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
, bank loans, loans from
fellow group companies and preference shares that are classified as debt, 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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
Community Energy Scheme UK Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2021
1
Accounting policies
(Continued)
Page 15
1.8
Share-based payments
When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.
Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.
Currently all parties have agreed to set aside the share options.
2
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.
Provision for doubtful debts
The directors consider all contracts the company enters in to and makes judgements based on the expected outcomes.
Impairment
The carrying amount of intangible assets is reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists then the asset's recoverable amount is estimated.
3
Turnover and other revenue
2021
2020
£
£
Other significant revenue
Interest income
442,072
498,873
Community Energy Scheme UK Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2021
Page 16
4
Operating loss
2021
2020
Operating loss for the year is stated after charging:
£
£
Exchange (gains)/losses
84
Fees payable to the company's auditor for the audit of the company's financial statements
16,400
10,000
Amortisation of intangible assets
180,000
180,000
Exchange differences recognised in profit or loss during the year, except for those arising on financial instruments measured at fair value through profit or loss, amounted to
£nil (2020: £84).
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
6
Interest receivable and similar income
2021
2020
£
£
Interest income
Interest receivable from group companies
442,072
498,873
7
Interest payable and similar expenses
2021
2020
£
£
Interest payable to group undertakings
500,219
511,249
8
Taxation
Community Energy Scheme UK Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2021
8
Taxation
(Continued)
Page 17
The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2021
2020
£
£
Loss before taxation
(268,756)
(97,856)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
(51,064)
(18,593)
Unutilised tax losses carried forward
51,064
18,593
Taxation charge for the year
-
-
9
Intangible fixed assets
Development costs
£
Cost
At 1 April 2020 and 31 March 2021
1,800,000
Amortisation and impairment
At 1 April 2020
300,000
Amortisation charged for the year
180,000
At 31 March 2021
480,000
Carrying amount
At 31 March 2021
1,320,000
At 31 March 2020
1,500,000
10
Fixed asset investments
2021
2020
Notes
£
£
Investments in subsidiaries
11
3
3
11
Subsidiaries
Details of the company's subsidiaries at 31 March 2021 are as follows:
Community Energy Scheme UK Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2021
11
Subsidiaries
(Continued)
Page 18
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Community Energy Scheme Stoke Limited
England & Wales
Ordinary
100.00
RTB Community Energy Scheme Limited
England & Wales
Ordinary
100.00
RAC003 Limited
England & Wales
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Community Energy Scheme Stoke Limited
(1,107,525)
(484,788)
RTB Community Energy Scheme Limited
1
RAC003 Limited
1
12
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
1,714
1,714
Amounts owed by group undertakings
6,402,379
6,151,483
Other debtors
4,151
2,082
6,408,244
6,155,279
2021
2020
Amounts falling due after more than one year:
£
£
Amounts owed by group undertakings
6,723,915
6,467,739
Total debtors
13,132,159
12,623,018
Amounts owed by group undertakings are unsecured and bears interest rate at 7%. The loan is repayable in 2043.
Community Energy Scheme UK Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2021
Page 19
13
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
16,554
20,640
Other creditors
3
3
Accruals and deferred income
16,700
33,257
20,643
14
Creditors: amounts falling due after more than one year
2021
2020
Notes
£
£
Other borrowings
15
8,366,288
7,866,070
The parent company loan is repayable in 2043 and bears interest at 7%.
Amounts included above which fall due after five years are as follows:
Payable other than by instalments
(7,866,070)
(7,866,070)
15
Group loans
2021
2020
£
£
Loans from group undertakings
8,366,288
7,866,070
Payable after one year
8,366,288
7,866,070
The parent company loan is repayable in 2043 and bears interest at 7%.
16
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A of £1 each
418,875
418,875
418,875
418,875
Ordinary B of £1 each
6,670,626
6,670,626
6,670,626
6,670,626
7,089,501
7,089,501
7,089,501
7,089,501
Community Energy Scheme UK Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2021
16
Share capital
(Continued)
Page 20
The company has two classes of shares and all issued shares rank pari passu in all respect and share issued were to increase the capital base of the company.
17
Events after the reporting date
Ofgem has launched an investigation into Community Energy Scheme UK’s sales and customer service practices. All information requested has been supplied and the directors are confident of a successful outcome.
18
Ultimate controlling party
The ultimate parent company is ABN AMRO Bank N.V. by virtue of its majority shareholding.
The largest and smallest group in which these figures are consolidated is that of ABN AMRO Bank N.V., a company registered in The Netherlands. Consolidated financial statements are publically available from Unit 8 Peerglow Centre, Marsh Lane, Ware, SG12 9QL.
Community Energy Scheme UK Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2021
Page 21
19
Related party transactions
The company received loans from its parent company, ABN AMRO Bank N.V. At the balance sheet date this amounted to £7,331,583 (2020: £6,893,892). During the year interest of £437,691 (2020: £448,602) accrued on this loan at a market rate of interest.
The company also received support funding from Solarplicity UK Holdings Limited. At the balance sheet date this amounted to £1,034,705 (2020: £972,178). During the year interest of £62,527 (2020: £62,648) accrued on this loan
The company has taken advantage of exemptions under the terms of FRS 102 not to disclose related party transactions with wholly owned subsidiaries within the group.
Community Energy Scheme UK Limited
Management Information
For the year ended 31 March 2021
2021-03-31
2020-04-01
false
CCH Software
CCH Accounts Production 2022.300
D N Elbourne
P R Smit
Ms J Clare
Mr R M Butt
10613447
2020-04-01
2021-03-31
10613447
bus:Director1
2020-04-01
2021-03-31
10613447
bus:Director2
2020-04-01
2021-03-31
10613447
bus:Director3
2020-04-01
2021-03-31
10613447
bus:Director6
2020-04-01
2021-03-31
10613447
bus:Director4
2020-04-01
2021-03-31
10613447
bus:RegisteredOffice
2020-04-01
2021-03-31
10613447
2021-03-31
10613447
2019-04-01
2020-03-31
10613447
core:RetainedEarningsAccumulatedLosses
2019-04-01
2020-03-31
10613447
core:RetainedEarningsAccumulatedLosses
2020-04-01
2021-03-31
10613447
core:OtherResidualIntangibleAssets
2021-03-31
10613447
core:OtherResidualIntangibleAssets
2020-03-31
10613447
core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill
2021-03-31
10613447
core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill
2020-03-31
10613447
2020-03-31
10613447
core:CurrentFinancialInstruments
core:WithinOneYear
2021-03-31
10613447
core:CurrentFinancialInstruments
core:WithinOneYear
2020-03-31
10613447
core:Non-currentFinancialInstruments
core:AfterOneYear
2021-03-31
10613447
core:Non-currentFinancialInstruments
core:AfterOneYear
2020-03-31
10613447
core:CurrentFinancialInstruments
2021-03-31
10613447
core:CurrentFinancialInstruments
2020-03-31
10613447
core:ShareCapital
2021-03-31
10613447
core:ShareCapital
2020-03-31
10613447
core:RetainedEarningsAccumulatedLosses
2021-03-31
10613447
core:RetainedEarningsAccumulatedLosses
2020-03-31
10613447
core:ShareCapital
2019-03-31
10613447
core:RetainedEarningsAccumulatedLosses
2019-03-31
10613447
2019-03-31
10613447
core:ShareCapitalOrdinaryShares
2021-03-31
10613447
core:ShareCapitalOrdinaryShares
2020-03-31
10613447
core:ShareCapital
2019-04-01
2020-03-31
10613447
core:IntangibleAssetsOtherThanGoodwill
2020-04-01
2021-03-31
10613447
core:UKTax
2020-04-01
2021-03-31
10613447
core:UKTax
2019-04-01
2020-03-31
10613447
core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill
2020-03-31
10613447
core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill
2020-04-01
2021-03-31
10613447
core:Non-currentFinancialInstruments
2021-03-31
10613447
core:Non-currentFinancialInstruments
2020-03-31
10613447
core:Subsidiary1
2020-04-01
2021-03-31
10613447
core:Subsidiary2
2020-04-01
2021-03-31
10613447
core:Subsidiary3
2020-04-01
2021-03-31
10613447
core:Subsidiary1
1
2020-04-01
2021-03-31
10613447
core:Subsidiary2
2
2020-04-01
2021-03-31
10613447
core:Subsidiary3
3
2020-04-01
2021-03-31
10613447
core:AfterOneYear
2021-03-31
10613447
core:AfterOneYear
2020-03-31
10613447
bus:PrivateLimitedCompanyLtd
2020-04-01
2021-03-31
10613447
bus:FRS102
2020-04-01
2021-03-31
10613447
bus:Audited
2020-04-01
2021-03-31
10613447
bus:FullAccounts
2020-04-01
2021-03-31
xbrli:pure
xbrli:shares
iso4217:GBP