REGISTERED NUMBER: |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
FOR |
INVERCLYDE RENEWABLES LLP |
REGISTERED NUMBER: |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
FOR |
INVERCLYDE RENEWABLES LLP |
INVERCLYDE RENEWABLES LLP (REGISTERED NUMBER: SO304001) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the year ended 31 December 2022 |
Page |
General Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 3 |
INVERCLYDE RENEWABLES LLP |
GENERAL INFORMATION |
for the year ended 31 December 2022 |
DESIGNATED MEMBERS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Statutory Auditor |
Magma House, 16 Davy Court |
Castle Mound Way |
Rugby |
CV23 0UZ |
INVERCLYDE RENEWABLES LLP (REGISTERED NUMBER: SO304001) |
BALANCE SHEET |
31 December 2022 |
2022 | 2021 |
Notes | £'000 | £'000 |
FIXED ASSETS |
Tangible assets | 4 |
CURRENT ASSETS |
Debtors | 5 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 6 | ( |
) | ( |
) |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 8 | ( |
) | ( |
) |
NET ASSETS/(LIABILITIES) ATTRIBUTABLE TO MEMBERS |
391 |
(533 |
) |
LOANS AND OTHER DEBTS DUE TO MEMBERS |
9 |
1,227 |
303 |
MEMBERS' OTHER INTERESTS |
Capital accounts | 30 | 30 |
Other reserves | ( |
) | ( |
) |
391 | (533 | ) |
TOTAL MEMBERS' INTERESTS |
Loans and other debts due to members | 9 | 1,227 | 303 |
Members' other interests | (836 | ) | (836 | ) |
391 | (533 | ) |
In accordance with Section 444 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008, the Income Statement has not been delivered. |
The financial statements were approved by the members of the LLP and authorised for issue on |
INVERCLYDE RENEWABLES LLP (REGISTERED NUMBER: SO304001) |
NOTES TO THE FINANCIAL STATEMENTS |
for the year ended 31 December 2022 |
1. | STATUTORY INFORMATION |
Inverclyde Renewables LLP is a limited liability partnership, limited by members' capital, registered in Scotland. The address of the registered office is Suite G Riverview House, Friarton Road, Perth, Scotland, PH2 8DF. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements are denominated in Sterling (£) as this is the functional currency of the LLP. All amounts in the financial statements have been rounded to the nearest £1,000. |
Going concern |
As at 31 December 2022 the LLP had net current liabilities of £22,782,000 (2021: £24,707,000) and net assets of £391,000 (2021: net liabilities of £533,000). The Designated Members have prepared cash flow forecasts and consider that the LLP has sufficient resources and support to meet it liabilities as they fall due for at least 12 months from the signing of these financial statements and has therefore prepared the financial statements on a going concern basis. The parent company company have confirmed that they will not request repayment of the amounts owed of £25,595,000 (2021: £26,350,000) until the LLP has sufficient resources to repay the amounts. |
Turnover |
Turnover represents the fair value of the consideration received or receivable for goods rendered during the period, exclusive of value added tax, derived from the generation of electricity. |
Revenue from 'Brown' energy is recognised when the electricity is generated. Other renewable benefits are recognised when the value can be reliably ascertained. |
Tangible fixed assets |
Tangible assets are stated at historical cost less depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
Depreciation commences when the asset is ready for its intended use. The residual values and remaining useful lives are reassessed at each reporting date. When parts of tangible fixed assets have different useful lives, those components are accounted for as separate items of tangible fixed assets. An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing the proceeds received with carrying amount and are recognised with other income/(expenditure) net in the income statement. Depreciation is charged at the following rates: |
Plant and machinery | - | 25 years from the date the asset was brought into use. |
Decommissioning costs | - | Over remaining lease term |
Borrowing costs |
General and specific borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognised in the income statement in the period in which they are incurred. |
Financial instruments |
The LLP has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments. |
(i) Financial assets |
Basic financial assets, including other debtors and cash and bank balances are initially recognised at transaction price, 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. |
INVERCLYDE RENEWABLES LLP (REGISTERED NUMBER: SO304001) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2022 |
2. | ACCOUNTING POLICIES - continued |
Trade debtors are measured at the undiscounted amount of the cash or other consideration expected to be paid or received. |
Such assets are subsequently carried at amortised cost using the effective interest method. |
(ii) Financial liabilities |
Basic financial liabilities, including trade creditors and other creditors 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. |
Members' loans (being repayable on demand), trade debtors and trade creditors are measured at the undiscounted amount of the cash or other consideration expected to be paid or received. |
Operating leases |
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease. |
Members' participation rights |
Members' participation rights are the rights of a member against the LLP that arise under the member's agreement (for example, in respect of amounts subscribed or otherwise contributed, remuneration and profits). |
Amounts subscribed or otherwise contributed by members, for example members' capital, are classed as equity if the LLP has an unconditional right to refuse payment to members. If the LLP does not have such an unconditional right, such amounts are classified as liabilities. |
Profits are divided automatically in accordance to the members agreement and therefore such profits are classed as an expense through the profit and loss rather than an an appropriation of equity. |
The losses of the LLP shall, with effect from commencement date, be borne by the LLP and not allocated to the members. The members shall procure that all losses of the LLP are debited to an other reserve. |
All amounts due to the members that are classified as liabilities are presented in the balance sheet within 'Loans and other debt due to members' and are charged to profit and loss account within 'Members' remuneration charged as an expense'. Amounts due to members that are classified as equity are shown in the balance sheet within 'Members' other interests'. Losses are included within 'other reserves'. |
Taxation |
The taxation payable on the LLP's profits is the liability of each member during the year. |
Provisions |
Provision is made for the net present value of the estimated future decommissioning costs at the end of the operating life of the wind farm. The provision is calculated using estimated costs of decommissioning, and these estimates have been arrived at by consideration of the expected costs of contracts to remove the installed plant. |
The estimates are discounted at a rate that reflects current market assessments of the time value of money. A corresponding asset is recognised and included within the wind farm assets and is depreciated over the life of the wind farm. The estimated future cost of decommissioning obligations are regularly reviewed and adjusted as appropriate for new circumstances or changes in law or technology. |
Cash and cash equivalents |
Cash and cash equivalents includes cash in hand, deposits held at call with banks and other short-term highly liquid investments with original maturities of three months or less. |
3. | EMPLOYEE INFORMATION |
The average number of employees during the year was NIL (2021 - NIL). |
INVERCLYDE RENEWABLES LLP (REGISTERED NUMBER: SO304001) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2022 |
4. | TANGIBLE FIXED ASSETS |
Plant and |
machinery |
£'000 |
COST |
At 1 January 2022 |
Additions |
At 31 December 2022 |
DEPRECIATION |
At 1 January 2022 |
Charge for year |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
Included within plant and machinery is interest capitalised of £1,237,000 (2021: £1,237,000). Interest was capitalised at the rate of 7%. |
5. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£'000 | £'000 |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£'000 | £'000 |
Trade creditors |
Amounts owed to group undertakings |
Taxation and social security |
Other creditors |
At the balance sheet date, the LLP had an amount outstanding to Inverclyde Windfarm Limited of £25,595,000 (2021: £25,595,000). The LLP has been granted this loan facility for the development and construction of a windfarm. The loan bears no interest and is repayable on demand. |
7. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2022 | 2021 |
£'000 | £'000 |
Within one year |
Between one and five years |
In more than five years |
INVERCLYDE RENEWABLES LLP (REGISTERED NUMBER: SO304001) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2022 |
8. | PROVISIONS FOR LIABILITIES |
Other |
provisions |
£'000 |
Balance at 1 January 2022 | ( |
) |
Balance at 31 December 2022 | ( |
) |
Provisions are made for the net present value of the estimated future decommissioning costs at the end of the operating life of the wind farm. The provision is calculated using estimated costs of decommissioning. An average inflation rate has been applied and this has been discounted at the LLP's weighted average cost of capital. |
9. | LOANS AND OTHER DEBTS DUE TO MEMBERS |
2022 | 2021 |
£'000 | £'000 |
Amounts owed to members in respect of profits | 1,227 | 303 |
Falling due within one year | 1,227 | 303 |
Loans and other debts due to 'A members' rank pari passu with other unsecured creditors. |
During the year, profits allocated to 'B Members' were £205,000 (2021: £185,000). During the year £205,000 (2021: £180,000) was distributed to 'B Members'. At 31 December 2022, £nil (2021: £nil) was due to 'B Members'. |
10. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was unqualified. |
for and on behalf of |
11. | RELATED PARTY DISCLOSURES |
The LLP has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
12. | ULTIMATE PARENT COMPANY |
The LLP's immediate controlling entity is Inverclyde Windfarm Limited, company number SC396025; incorporated in Scotland. |
The ultimate parent company is James Jones & Sons Limited which is the parent company incorporated in Scotland. |
Group financial statements are available from James Jones & Sons Limited whose registered office is Broomage Avenue, Larbert, FK5 4NQ. |
ULTIMATE CONTROLLING PARTY |
The company has no ultimate controlling party, as no one person has a significant shareholding in the ultimate parent company. |