Company Registration No. SC099049 (Scotland)
ADC Energy Limited
Unaudited financial statements
for the year ended 30 April 2021
Pages for filing with registrar
ADC Energy Limited
Chartered Accountants' report to the board of directors on the preparation of the
unaudited statutory financial statements of ADC Energy Limited
1
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of ADC Energy Limited for the year ended 30 April 2021 which comprise, the statement of financial position and the related notes from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the I
CAS
we are subject to its ethical and other professional requirements which are detailed at https://www.icas.com/professional-resources/practice/support-and-guidance/framework-for-the-preparation-of-accounts-revised-j
une
-20
20
.
This report is made solely to the Board of Directors of ADC Energy Limited, as a body, in accordance with the terms of our engagement letter dated 15 April 2010. Our work has been undertaken solely to prepare for your approval the financial statements of ADC Energy Limited and state those matters that we have agreed to state to the Board of Directors of ADC Energy Limited, as a body, in this report in accordance with the requirements of the ICAS as detailed at https://www.icas.com/professional-resources/practice/support-and-guidance/framework-for-the-preparation-of-accounts-revised-j
une
-20
20
.
To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than ADC Energy Limited and its Board of Directors as a body, for our work or for this report.
It is your duty to ensure that ADC Energy Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets,
liabilities, financial position and profit
of ADC Energy Limited. You consider that ADC Energy Limited is exempt from the statutory audit
requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of ADC Energy Limited. For this reason, we have not verified the accuracy or completeness of the
accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
James Milne
Chartered Accountants
5 Bon Accord Square
Aberdeen
AB11 6XZ
31 January 2022
ADC Energy Limited
Statement of financial position
As at 30 April 2021
30 April 2021
2
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
3
2,274,180
1,890,304
Current assets
Debtors
3,656,692
2,591,812
Cash at bank and in hand
188,284
452,322
3,844,976
3,044,134
Creditors: amounts falling due within one year
(1,814,522)
(671,614)
Net current assets
2,030,454
2,372,520
Total assets less current liabilities
4,304,634
4,262,824
Creditors: amounts falling due after more than one year
4
(715,799)
(466,164)
Provisions for liabilities
(45,231)
(43,680)
Net assets
3,543,604
3,752,980
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
3,543,504
3,752,880
Total equity
3,543,604
3,752,980
ADC Energy Limited
Statement of financial position (continued)
As at 30 April 2021
30 April 2021
3
In accordance with section 444 of the Companies Act 2006 all
of
the members of the company have consented to the
preparation of abridged financial statements pursuant to paragraph 1A of Schedule 1 to the Small Companies and Groups (Accounts and Directors’ Report) Regulations (S.I. 2008/409)(b).
The directors of the company have elected not to include a copy of the income statement within the financial statements.
true
For the financial year ended 30 April 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered 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 31 January 2022 and are signed on its behalf by:
Douglas G. Hay
Austin Hay
Director
Director
Company Registration No. SC099049
ADC Energy Limited
Notes to the financial statements
for the year ended 30 April 2021
4
1
Accounting policies
Company information
ADC Energy Limited is a
private
company
limited by shares
incorporated in
Scotland
.
The registered office is
32-34 Queen's Road, Aberdeen, AB15 4YF.
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.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover represents revenue recognised in the accounts. Revenue is recognised when the company fulfils its contractual obligations to customers by supplying goods and services and excludes value added tax. Where services are performed gradually over time revenue is recognised as activity progresses by reference to the value of work performed.
1.3
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:
Freehold land and buildings
No depreciation is provided on buildings
Plant and equipment
25% reducing balance
Fixtures and fittings
25% reducing balance and 3 years 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
.
1.4
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.
ADC Energy Limited
Notes to the financial statements (continued)
for the year ended 30 April 2021
1
Accounting policies (continued)
5
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.
1.5
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
income statement
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
income statement
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.6
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
ADC Energy Limited
Notes to the financial statements (continued)
for the year ended 30 April 2021
1
Accounting policies (continued)
6
1.7
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.8
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.9
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
in the period
are included in profit or loss.
2
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
131,789
310,590
Adjustments in respect of prior periods
(51,692)
Total current tax
80,097
310,590
Deferred tax
Origination and reversal of timing differences
1,551
(2,430)
Total tax charge
81,648
308,160
ADC Energy Limited
Notes to the financial statements (continued)
for the year ended 30 April 2021
7
3
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost or valuation
At 1 May 2020
1,800,000
34,206
472,810
2,307,016
Additions
378,391
1,563
38,514
418,468
At 30 April 2021
2,178,391
35,769
511,324
2,725,484
Depreciation and impairment
At 1 May 2020
30,936
385,776
416,712
Depreciation charged in the year
853
33,739
34,592
At 30 April 2021
31,789
419,515
451,304
Carrying amount
At 30 April 2021
2,178,391
3,980
91,809
2,274,180
At 30 April 2020
1,800,000
3,270
87,034
1,890,304
The property has been included in the financial statements based on the valuation at 30th April 2018.
If the revalued assets were stated on a historical cost basis rather than a fair value basis, the total amounts included would have been as follows:
2021
2020
£
£
Cost
3,072,449
2,694,058
ADC Energy Limited
Notes to the financial statements (continued)
for the year ended 30 April 2021
8
4
Creditors: amounts falling due after more than one year
Creditors which fall due after five years are as follows:
2021
2020
£
£
Payable by instalments
305,399
200,859
5
Related party transactions
Transactions with related parties
TRAMS Data Management Limited is a company in which Douglas G. Hay and Euphemia M. Hay are directors. At 30th April 2021 a balance of £30,565 (2020 - £50,252) was due to TRAMS Data Management Limited.
6
Directors' transactions
During the year the directors entered into the following advances and credits with the company:
Description
Opening debit balance
Amounts advanced
Amounts repaid
Closing debit balance
£
£
£
£
Austin Hay - Director's loan
58,087
47,644
(77,500)
28,231
Douglas G. Hay - Director's loan
663,392
659,880
(841,500)
481,772
721,479
707,524
(919,000)
510,003