Financial Summary for 2017
|Buchan Consolidated Operating Statement ||Full Year to December 2016 (£) ||Full Year to December 2017 (£) |
|Income ||517,059 ||571,505 |
|Operating Costs ||(89,078) ||(172,561) |
|Depreciation ||(176,375) ||(193,333) |
|Profit before interest and tax ||251,606 ||205,611 |
|Bond Interest ||(82,500) ||(165,000) |
|Profit before tax ||169,106 ||40,611 |
|Operating Profit (%) ||32.7% ||7.1% |
The 2017 full year profit before tax was £40,611, a material decrease from £169,106 in 2016. Despite increasing income, this reduction in profitability relates to a budgeted increase in operational costs andthe first full year of Bond interest costs. The company’s income has improved by 10.5% in 2017 when compared with 2016. The majority of this increase relates to the 6.7% year on year increase in energy yield and also the increase in the powersales prices.
For 2017, the operating costs have almost doubled from 2016 levels. This increase in budgeted costs relates to the first full year of turbine maintenance costs and the costs of the third party asset management arrangements. Under the terms of the turbine maintenance agreement, there was a period at the beginning of the service period which was provided at no charge. During 2017 the company has seen the full twelve months bond interest payments. The interest rate of the Bond is fixed going forwards.