Company registration number SC714905 (Scotland)
WIND 2 PROJECT 5 LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
WIND 2 PROJECT 5 LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
WIND 2 PROJECT 5 LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
263,967
221,466
Current assets
Debtors
5
777
266,170
Cash at bank and in hand
204,423
100
205,200
266,270
Creditors: amounts falling due within one year
6
(428,170)
(424,990)
Net current liabilities
(222,970)
(158,720)
Net assets
40,997
62,746
Capital and reserves
Called up share capital
7
69,813
69,813
Profit and loss reserves
(28,816)
(7,067)
Total equity
40,997
62,746
The directors of the company have elected not to include a copy of the profit and loss account 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.
The financial statements were approved by the board of directors and authorised for issue on 4 December 2023 and are signed on its behalf by:
Mrs Sarah Louise Smith
Director
Company Registration No. SC714905
WIND 2 PROJECT 5 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
1
Accounting policies
Company information
Wind 2 Project 5 Limited is a private company limited by shares incorporated in Scotland. The registered office is Wind 2 Office, 2 Walker Street, Edinburgh, Midlothian, Scotland, EH3 7LA.
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 amounts 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.
1.2
Going concern
These financial statements are prepared on the going concern basis. However, the directors are aware of certain material uncertainties which may cause doubt on the company's ability to continue as a going concern, being that of the ability to obtain planning permission for the development.
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.
Assets in the course of construction are not depreciated.
1.4
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).
1.5
Cash and cash equivalents
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.
1.6
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.
WIND 2 PROJECT 5 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 3 -
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.
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 payments 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. Amounts 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.
1.7
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.
1.8
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 profit and loss account 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.
WIND 2 PROJECT 5 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 4 -
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 profit and loss account, 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.
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.
Impairment of assets under construction
A review of impairment indicators carried out by management did not identify any indicators of impairment over the carrying value of assets under construction. The directors conclude that the carrying value is supported by the future cash flows that will be generated from generation of electricity and after careful consideration on the progress of the underlying development of the wind farm, the project is considered viable technically and economically.
3
Employees
The average monthly number of persons employed by the company during the year was:
2023
2022
Number
Number
Total
WIND 2 PROJECT 5 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -
4
Tangible fixed assets
Assets under construction
£
Cost
At 1 April 2022
221,466
Additions
42,501
At 31 March 2023
263,967
Depreciation and impairment
At 1 April 2022 and 31 March 2023
Carrying amount
At 31 March 2023
263,967
At 31 March 2022
221,466
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Amounts owed by connected undertakings
224,534
VAT recoverable
777
41,636
777
266,170
6
Creditors: amounts falling due within one year
2023
2022
£
£
Other borrowings
419,445
399,721
Trade creditors
6,849
23,519
Accruals and deferred income
1,876
1,750
428,170
424,990
7
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of £1 each
100
100
100
100
B Ordinary shares of £1 each
100
100
100
100
200
200
200
200
WIND 2 PROJECT 5 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
7
Called up share capital
(Continued)
- 6 -
2023
2022
2023
2022
Preference share capital
Number
Number
£
£
Issued and fully paid
Preference shares of £1 each
69,613
69,613
69,613
69,613
Preference shares classified as equity
69,613
69,613
Total equity share capital
69,813
69,813
8
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.
Senior Statutory Auditor:
Michael Caputo FCA
Statutory Auditor:
Xeinadin Audit Limited
WIND 2 PROJECT 5 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
9
Related party transactions
During the period the company was advanced £nil (2022: £394,479) by its shareholder ORI JV Holdings 2 Limited. The company accrued interest of £19,724 (2022: £5,242) on the balance. At 31 March 2023 the company owed £419,445 (2022: £399,721) to ORI JV Holdings 2 Limited, which is included in creditors in note 6 to the accounts.
At 31 March 2023 the company was owed £nil (2022: £224,534) by entities related by common ownership, as included in note 5 to the accounts.
During the period the company made net purchases of £29,196 (2022: £208,104) from entities in which director GK Jewson has significant influence. Such purchases were capitalised in fixed assets. At 31 March 2023 trade creditors of £2,159 (2022: £15,119) are recorded in the accounts in respect of these transactions.
All transactions are carried out under normal commercial terms.
10
Parent company
The ordinary share capital of the company is equally owned by ORI JV Holdings 2 Limited and W2H2 LLP. The registered office of ORI JV Holdings 2 Limited is UK House, 5th Floor, 164-182 Oxford Street, London, United Kingdom, W1D 1NN and the registered office of W2H2 LLP is Unit 4, Linden House, Mold Business Park, Wrexham Road, Flintshire, CH7 1XP.