Chartered Accountants

Canford Renewable Energy Limited

Contents

Company Information	1
Accountants' Report	2
Balance Sheet	3
Notes to the Financial Statements	4 to 10

Canford Renewable Energy Limited

Company Information

Directors

Mr W E Riddle Mr Stuart Hudson

Registered office

Energy Site Control Centre Arena Way Wimborne Dorset BH21 3BW

Accountants

Edwards & Keeping Chartered Accountants Unity Chambers 34 High East Street Dorchester Dorset DT1 1HA

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Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Canford Renewable Energy Limited
for the Year Ended 31 January 2017

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Canford Renewable Energy Limited for the year ended 31 January 2017 as set out on pages 3 to 10 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at
http://www.icaew.com/en/members/regulations-standards-and-guidance/.

This report is made solely to the Board of Directors of Canford Renewable Energy Limited, as a body, in accordance with the terms of our engagement letter dated 21 October 2015. Our work has been undertaken solely to prepare for your approval the accounts of Canford Renewable Energy Limited and state those matters that we have agreed to state to the Board of Directors of Canford Renewable Energy Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Canford Renewable Energy Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Canford Renewable Energy Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Canford Renewable Energy Limited. You consider that Canford Renewable 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 accounts of Canford Renewable 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 accounts.

Edwards & Keeping
Chartered Accountants
Unity Chambers
34 High East Street
Dorchester
Dorset
DT1 1HA

31 October 2017

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Canford Renewable Energy Limited

(Registration number: 02890411)
Balance Sheet as at 31 January 2017

	Note	2017		2016
		£	£	£	£
Fixed assets
Tangible assets	4		4,544,776		4,279,984
Investment property	5		1,284,688		1,619,679
			5,829,464		5,899,663
Current assets
Stocks	6	2,000		2,000
Debtors	7	4,749,926		4,296,087
Cash at bank and in hand		1,588,247		2,959,042
		6,340,173		7,257,129
Creditors: Amounts falling due within one year	8	(6,983,948)		(7,790,214)
Net current liabilities			(643,775)		(533,085)
Total assets less current liabilities			5,185,689		5,366,578
Creditors: Amounts falling due after more than one year	8		(289,237)		(392,935)
Provisions for liabilities			(73,503)		(81,818)
Net assets			4,822,949		4,891,825
Capital and reserves
Called up share capital		100		100
Revaluation reserve		(129,592)		(129,592)
Profit and loss account		4,952,441		5,021,317
Total equity			4,822,949		4,891,825

For the financial year ending 31 January 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised for issue by the Board on 31 October 2017 and signed on its behalf by:
 

Mr W E Riddle Director

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Canford Renewable Energy Limited

Notes to the Financial Statements
for the Year Ended 31 January 2017

1	General information

The company is a private company limited by share capital incorporated in England.

The address of its registered office is:
Energy Site Control Centre
Arena Way
Wimborne
Dorset
BH21 3BW
England

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Freehold land and buildings	No depreciation is provided in respect of the freehold land and buildings. Except for short life buildings which are depreciated at 10% straight line basis
Plant and machinery	5% - 20% straight line basis
Fixtures and fittings	20% straight line basis
Motor vehicles	20% straight line basis

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

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Canford Renewable Energy Limited

Notes to the Financial Statements
for the Year Ended 31 January 2017

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

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Canford Renewable Energy Limited

Notes to the Financial Statements
for the Year Ended 31 January 2017

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 16 (2016 - 14).

4	Tangible assets

	Land and buildings £	Fixtures and fittings  £	Motor vehicles  £	Plant and machinery  £
Cost or valuation
At 1 February 2016	3,924,705	4,600	130,559	1,016,898
Additions	336,211	-	20,528	16,580
At 31 January 2017	4,260,916	4,600	151,087	1,033,478
Depreciation
At 1 February 2016	89,082	4,050	112,198	591,448
Charge for the year	21,960	550	7,362	78,655
At 31 January 2017	111,042	4,600	119,560	670,103
Carrying amount
At 31 January 2017	4,149,874	-	31,527	363,375
At 31 January 2016	3,835,623	550	18,361	425,450

	Total £
Cost or valuation
At 1 February 2016	5,076,762
Additions	373,319
At 31 January 2017	5,450,081
Depreciation
At 1 February 2016	796,778
Charge for the year	108,527
At 31 January 2017	905,305
Carrying amount
At 31 January 2017	4,544,776
At 31 January 2016	4,279,984

Included within the net book value of land and buildings above is £4,149,873 (2016 - £3,835,624) in respect of freehold land and buildings.
 

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Canford Renewable Energy Limited

Notes to the Financial Statements
for the Year Ended 31 January 2017

5	Investment properties

	2017 £
At 1 February	1,619,679
Transfers to and from property, plant and equipment	(334,991)
At 31 January	1,284,688

The investment properties were revalued on 2 October 2013 by Mr W E Riddle (Director) who is internal to the company. The basis of this valuation was the approximate market value based on the purchase price, renovation costs and fair value adjustments.

The directors consider the valuation to still be appropriate.

There has been no valuation of investment property by an independent valuer.

6

Stocks

	2017 £	2016 £
Stock	2,000	2,000

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Canford Renewable Energy Limited

Notes to the Financial Statements
for the Year Ended 31 January 2017

7

Debtors

	2017 £	2016 £
Trade debtors	1,494,956	1,398,005
Other debtors	3,254,970	2,898,082
	4,749,926	4,296,087
Less non-current portion	(1,192,972)	(1,112,972)
	3,556,954	3,183,115

Details of non-current trade and other debtors

£1,192,972 (2016 £1,112,972) Loan to Holton Golf Ltd is classified as non current. The company is experiencing trading losses and Canford Renewable Energy Limited has agreed not to call upon amounts owed by Horton Golf Ltd for a period in excess of 12 months from signing the balance sheet. Horton Golf Ltd is a wholly owned company of an EPUT and anticipates the full support of the owner, a pension scheme, which will take necessary steps to refinance should the need arise.

8

Creditors

	Note	2017 £	2016 £
Due within one year
Loans and borrowings	9	103,663	115,534
Trade creditors		135,067	68,637
Taxation and social security		120,849	239,507
Other creditors		6,624,369	7,366,536
		6,983,948	7,790,214
Due after one year
Loans and borrowings	9	289,237	392,935