Notes to the Company Financial Statements

16. Low Carbon Seed Fund

The Group managed the Low Carbon Seed Fund (LCSF) in which it had an interest. The Directors considered that the Group neither exercised control nor had the potential to control the partnership. In accordance with IAS 27, ‘Consolidated Separate Financial Statements’, this partnership was therefore excluded from the Group consolidation. Investments in the limited liability partnership were stated at the Group’s share of net assets in this undertaking at fair value.

Investments in the LCSF were matched with an equal and opposite creditor evidencing that these were ring-fenced as fund income and could not be used by the Group until the fund value exceeded a hurdle rate (the lower of £2 million and the total amount of capital contributions drawn down by the partnership) before any distributions could be made.

During the year the Group exited its interest in the partnership.