Registered number: NI045625
Annual report
for the year ended 31 March 2025
Moyle Interconnector (Financing) plc
Annual report for the year ended 31 March 2025
Contents Pages
Directors and advisers 1
Strategic report 2 - 20
Directors’ report 21 - 23
Independent auditors’ report to the members of Moyle Interconnector (Financing) plc 24 - 31
Consolidated statement of profit and loss and other comprehensive income 32
Consolidated and Parent Company balance sheet 33
Consolidated and Parent Company statement of changes in equity 34
Consolidated and Parent Company cash flow statements 35
Notes to the financial statements 36 - 62
Moyle Interconnector (Financing) plc
1
Directors and advisers
Directors
Patrick Larkin Executive Director
Gerard McIlroy Executive Director
Company secretary
Gerard McIlroy
Registered office
First Floor
The Arena Building
85 Ormeau Road
Belfast
BT7 1SH
Principal place of business
First Floor
The Arena Building
85 Ormeau Road
Belfast
BT7 1SH
Solicitors
Arthur Cox Northern Ireland
Victoria House
15-17 Gloucester Street
Belfast
BT1 4LS
Bankers
Barclays Bank plc
Donegall House
Donegall Square North
Belfast
BT1 5GB
Independent auditors
Grant Thornton (NI) LLP
Chartered Accountants and Statutory Auditors
12-15 Donegall Square West
Belfast
BT1 6JH
Moyle Interconnector (Financing) plc
Strategic report for the year ended 31 March 2025
2
The Directors manage Moyle Interconnector ’s
operations at the Mutual Energy (“MEL”) group
level.
Operational Performance
STABLE, RELIABLE INFRASTRUCTURE
2024-25 has been a successful year operationally
for the Moyle Group, with the Moyle
Interconnector having supplied 37% of Northern
Ireland’s electricity (2.6TWh) given the excellent
availability of the interconnector at 98.5%.
This high level of availability, with no lost time
health and safety incidents
1
during the year, has
helped to generate a record level of cash totalling
£58.3m
1
during 2024-25.
The Moyle Group could not deliver the excellent
level of operational performance without support
from our key contractors. Siemens plc provide the
appropriate technical expertise and capabilities
to monitor 24/7 system control rooms and
undertake routine maintenance or
comprehensive emergency responses when
required.
HEALTH & SAFETY EMBEDDED IN OUR CULTURE
Our culture places a high emphasis on health and
safety, with robust systems in place for the
benefit of our employees, contractors and the
wider public.
In November 2024 the Mutual Energy group
hosted a Health, Safety, Environment & Wellbeing
Seminar for staff and our key contracting partners
which provided an opportunity to share valuable
best practice advice and ideas, particularly
around how to respond to critical incidents and
dealing with the consequences of our actions.
The Mutual Energy group achieved re-
accreditation for ISO 55001, the internationally
recognised standard for the effective and robust
management of assets throughout the asset life
cycle in October 2024.
ENABLING ACCESS TO LOWER CARBON FUELS
AND EVOLVING POLICY
Throughout the year we have worked closely with
the government, regulators and key industry
stakeholders to promote the long-term interests
of Northern Ireland energy consumers addressing
the critical issues of sustainability, security of
supply and affordability of electricity.
99.7
98.9
79.9
*
99.5
98.5
0
20
40
60
80
100
120
2021 2022 2023 2024 2025
Moyle Interconnector Availability %
1
* 2023 availability was lower due to the scheduled outages required to
replace the Moyle Interconnector control system.
1
KPI calculation included on page 9.
Moyle Interconnector (Financing) plc
Strategic report for the year ended 31 March 2025
3
Financial Performance
OVERVIEW
2024-25 was an unprecedented year for the Moyle
Group, with a profit before tax of £97.5m (2024:
£20.5m). This increase in profitability was
achieved by a significant growth in revenues from
power transfers alongside the reversal of the prior
year bad debt allowance of £20.2m following the
favourable outcome of the arbitration case in July
2024.
At the March 2024 year-end the arbitration
process in relation to the restriction without
compensation by the System Operator for
Northern Ireland (SONI) of Moyle’s electricity
exports from Ireland to Great Britain had not yet
been decided and a provision of £20.2m against a
possible unfavourable outcome was made in the
accounts for 2023 -24. This bad debt allowance
was subsequently reversed in the current year
following the final determination in December
2024 which ruled fully in Moyle’s favour.
REVENUE
Net revenue increased by 43.8% to £92.6m (2024:
£64.4m) with growth mainly generated from
revenue from power transfers of £69.9m (2024:
£40.3m) for the Moyle Interconnector due to the
price differential between the high prices in the
Single Electricity Market (SEM) and low prices in
Great Britain (GB), combined with continuing high
levels of availability for the Moyle Interconnector.
For much of the financial year this price
differential was particularly evident. An increase
in wind generation in GB relative to demand
assisted in keeping prices low in comparison to
the SEM and, similarly, during periods of relatively
low wind, higher prices in Ireland occurred as the
market required expensive, inefficient generation
equipment to run.
In January 2025, there was a significant change in
the electricity market, with the Greenlink
Interconnector between Ireland and GB beginning
commercial operations. Whilst the new
interconnector operating within the market is
expected to reduce revenues from power
transfers in the coming years, the increased level
of interconnection will help lower Northern
Ireland wholesale electricity prices.
Capacity market income also continued in an
upward trend with £16.0m (2024: £12.0m)
recorded for 2024-25. This increase was expected
given the growth in the value of the capacity
contracts secured, with this trend set to continue
into future years.
As expected, a reduction in tariffs during 2024-25
resulted in system services income declining to
£10.4m (2024: £15.0m).
The overall uplift in electricity revenues was offset
by the tariff rebate that was returned to energy
consumers totalling £3.6m (2024: £3.0m).
Moyle Interconnector (Financing) plc
Strategic report for the year ended 31 March 2025
4
Financial Performance (continued)
EXPENDITURE
Operating Expenditure
Operating expenses, which includes business
expenses, amortisation and depreciation costs, in
2024-25 totalled £21.6m (2024: £20.7m).
Business expenses have increased by £0.8m to
£15.0m (2024: £14.2m) due mainly to the uplift in
the Bryson Charitable Group donation.
Excluding donations, business expenses have
only marginally increased by £0.1m, with higher
imbalance charges and insurance costs offset by
reductions in maintenance and legal fee costs in
the year, with legal costs having declined as
higher costs were incurred in 2023-24 in relation
to the arbitration case.
Total amortisation and depreciation costs (net of
government grants) of £6.6m (2024: £6.5m) were
expended, with costs aligned to the prior year.
Other Operating Income
Other Operating Income of £0.6m (2024: £Nil)
relates to the recovery of Moyle’s legal costs
following the arbitration case.
Finance Income and Costs
With the Moyle Interconnector 100% debt funded,
finance costs represent a significant proportion of
the total cost base.
Moyle Group’s bonds, which are listed on the
London Stock Exchange, are index-linked, which
means that the debt outstanding is recalculated
semi-annually to reflect the impact of changes in
the reference indexation rate (RPI), with the
resulting increase in debt outstanding recognised
as a finance cost in the profit or loss. Whilst any
inflation costs will ultimately be paid to the
lenders over the life of the debt, the impact of
inflation on finance costs and cash paid within
each period are not aligned.
For 2024-25, finance income exceeded finance
costs due to the high cash balances held and
additional interest income receivable on amounts
owed under the legal dispute.
Finance costs for 2024-25 totalled £4.4m (2024:
£8.6m), with this significant reduction being the
result of the decline in inflation rates.
Finance income totalled £10.1m (2024: £5.6m),
with the increase being due to higher cash
balances held during the year and interest income
receivable following the arbitration as explained
above.
-10 0 10 20 30
2024
2025*
Electricity
Split of costs by expense type
Business Expenses Amoritisation and Depreciation
Net Finance Costs
*2024-25 net finance costs are a credit balance as finance income
exceeded finance costs.
Moyle Interconnector (Financing) plc
Strategic report for the year ended 31 March 2025
5
Financial Performance (continued)
BALANCE SHEET
Moyle Group’s balance sheet position has
strengthened significantly, with net assets
totalling £232.1m at 31
st
March 2025 (2024:
£160.1m).
Capital Expenditure
Capital additions, excluding right-of-use assets, in
2024-25 totalled £0.9m, with the main
investments being the development of an
Uninterruptible Power Supply (UPS) and
installation of a solar array at the Ballycronan-
More site. These are ongoing and included within
“Assets under Construction” at 31 March 2025, as
well as the remaining costs of installation of fire
detection panels.
Cash Balance
The cash balance (including cash held on deposit
which is classified as financial assets) at the year
end was strong at £184.3m
1
(2024: £126.0m), as a
result of the additional revenue generated during
the year.
The Moyle Group have an obligation to hold
sufficient levels of cash under our debt financing
arrangements, but with such exceptional cash
levels at this year end, the Board have decided to
return £80m of Moyle’s cash to consumers over
the next five years.
Supporting Consumers
Supporting Northern Ireland’s energy consumers
is an integral part of our strategic goals and the
improved cash generation in the Moyle Group has
provided an opportunity for the Mutual Energy
Board to provide increased financial support. In
consultation with key stakeholders, the Mutual
Energy Board has been reviewing its policy on how
to best utilise some of Mutual Energy group’s cash
to support consumers.
The policy considers both investment
opportunities that are in the longer-term interests
of energy consumers and targeted measures of
financial assistance for both domestic and
commercial consumers.
The Mutual Energy Board had previously set a
target of £30m to be returned to consumers from
the Moyle business over a five-year period.
Following a review, the Board has increased the
target to £80m over the next five years. During the
current year the Moyle Group returned £3.6m to
consumers via the electricity tariff and a further
£4m was donated to the Bryson Charitable Group
support scheme to assist those living in fuel
poverty, with 15,200 households supported by the
scheme.
1
KPI calculation included on page 9.
Moyle Interconnector (Financing) plc
Strategic report for the year ended 31 March 2025
6
1
KPI calculation included on page 9.
Financial Performance (continued)
Debt Financing and Cost of Capital
As the infrastructure assets are 100% debt
financed, the Mutual Energy group assess the
overall cost impact of these investments on
Northern Ireland energy consumers.
The savings from Mutual Energy group’s low cost
of capital is a key measure of performance. This is
calculated by comparing the Mutual Energy
group’s financing costs to costs which would have
been incurred if the debt was financed at the rates
charged by a comparative NI energy utility.
Mutual Energy group’s average real cost of capital
for 2024-25 was 1.11% compared to 3.18% for a
typical Northern Ireland utility company. This
lower cost of capital has generated cumulative
savings of £231.5m since 2003, which is a
significant saving attained on behalf of energy
consumers and reflects the benefits of operating
as a mutual company.
Moyle Interconnector Group’s cost of capital is
2.9376%, and has been incorporated into the
Mutual Energy group average cost of capital
shown.
Annual Debt Service Cover Ratio (ADSCR)
1
Another key performance measure for the Moyle
Group is the debt service cover ratio which
assesses the ability of the Group to pay the
principal and interest payments under the debt
financing. The Moyle Group has again exceeded
the minimum level required in the current year.
-
50
100
150
200
250
0%
1%
2%
3%
4%
5%
6%
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
£m cumulative consumer saving
cost of capital
year
Mutual Energy group Cost of capital savings vs comparator
(March 2025 prices)
1
Cumulative saving (current prices) Mutual Energy group
Typical NI utility
Moyle Interconnector (Financing) plc
Strategic report for the year ended 31 March 2025
7
Strategic Objectives
The Moyle Group continues to make progress in delivering its four strategic priorities. The efforts across
the operational team during this year demonstrate the commitment to these objectives with the table
below illustrating the progress made against each individually.
Strategic
Objectives
Strategic
Definition
Importance
Performance
Measures
Performance against strategy
1. Operate
assets safely and
cost effectively
Operate assets
safely and cost
effectively,
outsourcing
where
appropriate.
Safety of our
staff,
contractors
and wider
community is
paramount.
1. Asset availability.
2. Number of lost time
incidents.
3. Maintain ISO 55001
standard for asset
management.
4. Contractor KPIs
monitored as part of
effective contract
management
processes.
• 98.5% Moyle interconnector
availability during 2024-25.
• No lost time incidents during the
current year.
• ISO 55001 (Asset Management
System) re-certification achieved
in October 2024.
• All critical contractor KPIs met.
2. Generate and
return savings to
Northern Ireland
consumers
Deliver savings
to current and
future Northern
Ireland
consumers over
the life of the
assets.
Affordable
energy costs
are a priority
for
consumers.
1. Cash returns to
energy consumers.
2. Cumulative savings
generated based on
Mutual Energy group’s
average cost of capital
rate compared to an NI
energy utility
comparator.
3. Sufficient levels of
cash generated.
• Total of £7.6m returned to
consumers via tariff or targeted
payments during 2024-25.
• Cumulative savings of £231.5m
since 2003 based on 1.11%
average cost of capital vs 3.18%
for a typical Northern Ireland
utility.
• Strong cash inflows of £58.3m
generated from Moyle
Interconnector.
3. Accelerate
decarbonisation
Take an active
role in
collaboration
with key
stakeholders in
the acceleration
of
decarbonisation
through
interventions
and investments
which benefit
Northern Ireland
energy
consumers.
Increased
focus on
sustainability,
by energy
consumers
and by
society as a
whole.
1. Annual CO
2
savings
as a result of
consumers switching to
lower or renewable
energy sources.
2. Targets set for
reducing carbon
emissions, with actual
results monitored
against these.
3. Collaboration with
key stakeholders on
energy transition
incentives.
• CO
2
savings for the current year of
c325,000 tonnes.
• Mutual Energy group’s 2024-25
emissions are below 2020 base
year, with good progress made
towards the 30% reduction target.
• The Mutual Energy group achieved
Gold status in Northern Ireland’s
Business in the Community’s
annual environmental
benchmarking survey 2024.
• Involvement in a number of
renewable energy initiatives.
Moyle Interconnector (Financing) plc
Strategic report for the year ended 31 March 2025
8
Strategic Objectives (continued)
Strategic
Objectives
Strategic
Definition
Importance
Performance Measures
Performance against
strategy
4. Manage risk on
Northern Ireland’s
consumers’ behalf
Manage market
change and
regulatory
development to
minimise risks to
the Northern
Ireland
consumer.
Protect
consumers
from market
changes and
adverse
regulatory
decisions.
1. Participation in key
government initiatives or
discussions.
2. Compliance with our
regulatory licence.
• Achieved equitable
treatment for costs arising
from System Operator
actions restricting the
Moyle Interconnector.
• Memorandum of
Understanding (MOU)
agreed with SONI to ensure
consistency and whole
system planning which will
protect the long-term
interests of consumers.
Moyle Interconnector (Financing) plc
Strategic report for the year ended 31 March 2025
9
Key Performance Indicators (KPI) Calculations
Cash generated from operations
Cash generated in each of the businesses
post tax.
Availability
𝑪𝒂𝒑𝒂𝒄𝒊𝒕𝒚 𝑨𝒗𝒂𝒊𝒍𝒂𝒃𝒍𝒆 × 𝑯𝒐𝒖𝒓𝒔 𝑨𝒗𝒂𝒊𝒍𝒂𝒃𝒍𝒆
𝑻𝒐𝒕𝒂𝒍 𝑷𝒍𝒂𝒏𝒕 𝑪𝒂𝒑𝒂𝒄𝒊𝒕𝒚 × 𝑯𝒐𝒖𝒓𝒔 𝒊𝒏 𝒀𝒆𝒂𝒓
NB unavailability excludes upstream
outages
Total plant capacity relates to capacity
under existing connection agreements.
Cost of capital v an NI comparator
The Mutual Energy Group incurs financing costs in
respect of debt entered into for the purpose of the
business. The Group’s average cost of capital is
compared to the costs which would have been
incurred if financed at the rates charged by a Northern
Ireland energy utility comparator over this period.
The KPI is the savings made as a result of the lower
cost of capital than the comparator company. The
savings are calculated as the cost which would have
been incurred by a comparator financing the Group’s
debt compared to the costs actually incurred.
Lost time incidents
Lost time incidents are calculated as the
number of lost time incidents per 100,000
hours worked by staff and contractors.
Annual Debt Service Cover Ratio
The Annual Debt Service Cover Ratios are calculated in
accordance with the terms of the bonds for the
operational company. The basis of calculation is
Available Cash / Debt Service in the next 12 months.
In each case Available Cash = the difference between
income and expenses in the period + cash in designated
bank accounts, where cash in the designated bank
accounts is limited to 1x Debt service.
CO
2
savings
Greening the existing networks – developing options for lower or
zero emission fuels to transport through the networks
Electricity interconnector
To calculate the CO
2
savings associated with the Moyle
Interconnector, the calculation determines the carbon intensity of
each system by weighting the carbon emissions per MW of the
marginal unit by the proportion of non-renewable generation on the
system in each hour time period. It then multiplies this difference in
the carbon emissions per MW by the actual flow on Moyle. This
gives the total carbon savings of Moyle each hour. We then sum
these hourly figures across the year to give total CO
2
savings
resulting from Moyle.
CO
2
saved in Group operations
CO
2
usage is calculated using UK Government greenhouse gas
reporting conversion factors published by the Department for
Energy Security and Net Zero, in line with the 2019 HM Government
Environmental Reporting Guidelines).
Moyle Interconnector (Financing) plc
Strategic report for the year ended 31 March 2025
10
Responsible Business Reporting
With people at the core of our strategy, the Moyle Group has a responsibility to conduct its business in the
best interests of Northern Ireland energy consumers, our employees and the wider community. We act
responsibly by considering sustainability, inclusivity and diversity across our business operations.
ACCELERATING DECARBONISATION
One of the Moyle Group’s four strategic priorities is to
accelerate decarbonisation, through collaboration with key
stakeholders to identify initiatives and projects in response
to the pressing environmental challenges. A three-tier
strategic response plan has been developed at the Mutual
Energy group level to assist in lowering CO
2
emissions.
A fourth environmental goal is also in place which has an
operational focus on reducing emissions through our own
day-to-day activities. However, given the nature of our
business as an electricity transmission operator, a greater
level of CO
2
savings can be achieved through our three
strategic environmental goals than through our own
operational efforts.
Enabling access to lower carbon fuels
Our electricity interconnector generates CO
2
emissions savings as it provides a core tool in managing the
electrical system to accommodate intermittent generation such as wind and solar. In times of high wind
in Ireland the wholesale electricity price tends to fall and the interconnectors tend to export to GB. When
intermittent generation produces low levels of output, the wholesale price generally rises and the
interconnectors tend to import power from GB, often essential to keeping the system operating.
For 2024-25:
• c325,000
1
tonnes of CO
2
emissions were avoided
due to the Moyle Interconnector enabling
Transmission System Operators (TSOs) to access
cleaner energy sources
2
;
• 10%
1
of Northern Ireland’s electricity generated
from wind exported by the Moyle Interconnector
(0.2TWh) displacing higher carbon alternatives in
Great Britain; and
• The installation of a 200KW solar panel solution is
nearing completion at the Ballycronan-More site.
Further information on the strategic response plan, climate change initiatives and governance as well as
carbon emissions reporting is included within the Mutual Energy annual report.
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
2020-21 2021-22 2022-23 2023-24 2024-25
tonnes
CO
2
savings
1
Moyle
1. ENABLING
ACCESS TO
LOWER
CARBON
FUELS
2. GREENING
THE EXISTING
NETWORKS
3. INFLUENCING
POLICY AND
PARTICIPATING
IN PROJECTS
LOWER CO
2
EMISSIONS
1
KPI calculation included on page 9.
2
We used an outside party, WattTime, to provide the current year data on the marginal emissions of the plant on the electrical systems in GB and in Ireland,
from which we can determine, on an hour-by-hour basis, the CO
2
content and the effect the interconnector has.
Moyle Interconnector (Financing) plc
Strategic report for the year ended 31 March 2025
11
Responsible Business Reporting (continued)
UNDERSTANDING OUR STAKEHOLDERS
Engagement with key stakeholders is important to ensuring that their specific interests and how our
business actions impact each group are understood. The Moyle Group is committed to acting fairly
between stakeholder groups, with high ethical standards and corporate values underpinning any
stakeholder engagement.
Stakeholders
SHIPPERS
EMPLOYEES
PARTNERS,
CONTRACTORS &
SUPPLIERS
FINANCIERS
REGULATORS/
GOVERNMENT
CONSUMERS
Importance to us
The Moyle
interconnector
supplies to
electricity
operators.
Attract and retain
high performing
staff. Staff should
feel fairly
rewarded for their
efforts and
engaged to make
valuable
contribution to our
business
activities.
Collaborative and
trusted working
relationships,
particularly as we
rely on contractors
for maintenance of
our assets.
Rely on their
funding to
support
significant
capital
investments and
for approval of
material
changes.
Policy
development and
regulatory issues
impact how we
operate.
Consumers are at
the heart of our
strategic
objectives.
What matters
most to them
-Stable and
reliable
infrastructure
-Appropriate
monitoring of
asset
performance
-Health and safety
-Training and
development
-Balanced
remuneration
package
-Inclusion and
engagement
-Health and safety
-Creditworthiness
-Regular
engagement and
collaborative
working style
-Financial
stability and
operational
success
-Moyle Group’s
ability to pay
back debt as it
falls due
-Cost efficient
operations
-Our response to
sustainability
issues and how
our assets could
be used to help
achieve the
government’s
climate targets
-Compliance with
licence terms
-Affordable energy
costs
-Protected from
changes in
government or
market policy
-Response to
climate change
matters
How are we
responding
-ISO55001
Accreditation
-Joint
consultations with
operators
- Health, Safety,
Environment &
Wellbeing seminar
-Development
framework
-Feedback surveys
-Weekly group
update
-Quarterly
business updates
-Remuneration
linked to group
performance
-Robust contract
management
-Site inspections
-Emergency
response testing
-RoSPA audit
-Regular
engagement
through formalised
meetings
-Formalised
reporting
-Compliant with
covenants and
financial
reporting
requirements
-Engagement in
annual ratings
review process
-Budget control
processes in place
to ensure that
operations are
cost effective
-Regular meetings
-Participation in
government
funded initiatives
-Involvement in
‘Call for Evidence’
(CfE) proposals
-Consistent
returns to
consumers year
on year
-Donations to
charitable group
to support fuel
poverty
-Meetings with
Northern Ireland
Consumer
Council
-Initiatives
undertaken
through the
Business in the
Community
programme
Read more
Operational
performance
Page 2
Strategic
Objectives
Pages 7-8
Operational
performance
Page 2
Our Employees
Pages 12-14
Operational
performance
Page 2
Financial
performance
Pages 3-6
Strategic
Objectives
Pages 7-8
Operational
performance
Page 2
Financial
performance
Pages 3-6
Moyle Interconnector (Financing) plc
Strategic report for the year ended 31 March 2025
12
Responsible Business Reporting (continued)
UNDERSTANDING OUR STAKEHOLDERS (CONTINUED)
The Directors have acted in good faith to promote the success of the Moyle Group and Company for the
benefit of its members as a whole. In doing so, as a minimum, they have given regard to the matters set
out in Section 172(1)(a) to (f) of the Companies Act 2006, with sections (b) to (d) covered in the table on
page 11 which outlines the interests of our employees, the need to foster business relationships with our
suppliers, our customers and others and furthermore, the impact that our business operations has on the
community and environment.
Sections (a) and (f), which consider the likely consequences of any decision in the long term as well as
the need to act fairly between the members of the Company, are at the core of our strategic objectives as
detailed on pages 7 and 8, with section (e) the desirability of the company to maintain a reputation for
high standards of business conduct illustrated below through the Mutual Energy group values and
business etiquette.
OUR EMPLOYEES
Mutual Energy group’s supportive and collaborative cultural tone is set by the Board, which is illustrated
through the core values above. These values are embedded across the Mutual Energy group, having been
communicated to employees through the Business Principles and Code of Ethics policies, as well as
through regular team engagements. Mutual Energy recognise how important staff are to the business, and
there is a continued focus on ensuring that each individual feels valued as part of the Mutual Energy
group through a shared sense of purpose, inclusion and respect.
OUR
VALUES
Integrity
Trust
Openness
Partnership
Teamwork
Moyle Interconnector (Financing) plc
Strategic report for the year ended 31 March 2025
13
Responsible Business Reporting (continued)
OUR EMPLOYEES (CONTINUED)
To attract, develop and retain high performing employees, the Mutual Energy group have developed
initiatives and KPIs that are important to our staff as shown in the table below.
•Share in success with employee remuneration linked to company
performance across the Mutual Energy group.
•6-monthly strategy and performance events are held to ensure staff
are informed and share in the Mutual Energy group's vision and
purpose.
•Personal performance evaluation system in place which sets targets
and rewards staff for personal and team efforts.
Recognition & Reward
Our staff should feel fairly rewarded
for their efforts.
•Development Framework is used to identify training needs,
formalise progression plans and to support cross team transitions.
•Training is encouraged and monitored to ensure employees continue
to have opportunities to develop their existing skill set.
•KPI for Mutual Energy group: 6.4 training days per employee in
2024-25 (2023-24: 3.6 days).
Learning & Development
We want to support and develop our
staff in their careers.
•Committed to recruiting and promoting individuals on the basis of
merit and ability, regardless of age, gender, race, religion, sexual
orientation or disability.
•Equality, Diversity and Inclusion are embedded in Mutual Energy
group policy and practices.
Diversity & Inclusion
An inclusive workplace where all staff
feel respected.
•Private medical insurance is provided to employees and their
immediate family
•Biennial health assessments, and other health and wellbeing
support is available to employees.
•KPI: Mutual Energy group's annual absenteeism rate of 2.2 days per
employee (2023-24: 2.8 days) for 2024-25 is well below the 2024 UK
average of 4.4 days.
Health & Wellbeing
We want to protect the physical and
mental wellbeing our staff.
•Electric vehicle scheme introduced for all Mutual Energy
employees, with free charging points installed at the office.
•Staff have opportunities to get involved in Business in the
Community initiatives and have collaborated with SGN to support
the Royal Society for the Protection of Birds at the Portmore Lough
nature reserve during the year to encourage wildlife growth.
Sustainability Schemes
We recognise that reducing our
carbon footprint is a team effort.
Moyle Interconnector (Financing) plc
Strategic report for the year ended 31 March 2025
14
Responsible Business Reporting (continued)
OUR EMPLOYEES (CONTINUED)
Total staff headcount (including directors), split
by gender, at the end of each year is shown in the
table below. For 2024-25, there has been an
increase in female representation on the Mutual
Energy group Board with the appointment of
Maureen O’Reilly.
Employment Legislation
The Mutual Energy group complies with the
Employments Rights Act, Modern Slavery Act
and all other applicable UK law as an absolute
minimum and recognises the importance of
treating our employees fairly.
Mutual Energy group
Moyle Interconnector Financing plc
2025
2024
2025
2024
Male
Female
Total
Male
Female
Total
Male
Female
Total
Male
Female
Total
Board
5
2
7
7
1
8
2
-
2
2
-
2
Senior
Management
8
1
9
8
1
9
2
-
2
2
-
2
All employees
& Board
34
15
49
34
15
49
10
2
12
9
-
9
Moyle Interconnector (Financing) plc
Strategic report for the year ended 31 March 2025
15
Principal Risks and Uncertainties
RISK MANAGEMENT PROCESS
Risk management process is overseen by Mutual
Energy on behalf of the whole Mutual Energy
group, with Moyle staff involved in the process.
The risk management process is embedded
throughout the Mutual Energy group, with both a
bottom-up and top-down system in place. The
Board, its committees, management and
employees are committed to the identification
and management of risks associated with the
delivery of our strategic objectives.
The risk management process comprises four
steps as shown below:
Managers of each business unit are responsible
for the identification and monitoring of risks
within their own functional area. A risk register is
maintained by each business unit, and these are
subject to formal quarterly reviews by the wider
management team.
The risk assessment process considers the
likelihood and impact of each risk in turn, with
an overall score applied, and is then compared
to the Mutual Energy group’s risk appetite as
determined by Board. The review of the registers
ensures that appropriate scoring and adequate
controls are in place for each risk recognised.
An effective governance model for reviewing the
consolidated risk register is in place within the
Mutual Energy group, with the Asset Oversight
Committee responsible for assessing the
operational risks identified, and the Audit and
Risk Committee overseeing the full register on a
biannual basis.
The Committees also evaluate the findings from
the internal compliance monitoring reviews
which ensures that the Mutual Energy group
policies and procedures, which form part of the
mitigating controls against the risks identified,
are updated accordingly.
Control within Mutual Energy is maintained
through:
• a management structure with clearly
defined responsibilities, authority levels
and lines of reporting;
• the appointment of suitably qualified
staff in specialised business areas;
• a comprehensive financial planning and
accounting framework; and
• a formal reporting structure.
These methods of control are subject to periodic
review as to their continued suitability. Mutual
Energy group’s system of internal control is
designed to manage rather than eliminate the
risk of failure to achieve business objectives and
can provide only reasonable, and not absolute,
assurance against material misstatement or
loss.
RISK ASSESSMENT
Assessments of risk were carried out,
throughout the year ended 31 March 2025 and
up to the date of approval of the Annual Report
and Financial Statements, in line with this
process. The Board, during its annual review of
the effectiveness of the Mutual Energy group’s
internal control and risk management systems,
did not identify, nor was advised of, any failings
or weaknesses which it has determined to be
significant.
4.
Monitor
3.
Mitigate
2.Assess
1.
Identify
Moyle Interconnector (Financing) plc
Strategic report for the year ended 31 March 2025
16
Principal Risks and Uncertainties (continued)
PRINCIPAL RISKS
The principal risks identified by the Moyle Group
are those which could impact our ability to
successfully deliver the strategic objectives. To
ensure consistency in how we monitor and
report on the risks identified, the risks are
categorised into six types:
1. Operational risk
2. Business environment and market risk
3. Financial risk
4. Political and regulatory risk
5. Project delivery risk
6. Corporate strategy and communication
risk
2024-25 Risk review outcomes
There were no new risks identified during the
year, but the Moyle Group’s risks were subject to
regular review and were updated as required.
Two risks, Cyber and Inadequate Corporate
Strategy, have heightened during this year, with
Reliance on Third Parties and Market risks having
declined. Further information on the risks is
presented in the tables on pages 17-20.
Moyle Interconnector (Financing) plc
Strategic report for the year ended 31 March 2025
17
Principal Risks and Uncertainties (continued)
Risk trend key
Increased Decreased Stable
Operational risk: The risk of loss resulting from inadequate or failed internal processes, people and systems, or from external
events.
Risk
Risk description and potential
impact
Mitigations and actions taken
Risk
trend
Cyber
Information and operational technology
systems necessary to support business
activities. Any significant operational
event could lead to loss of access to
systems or data, adversely impacting
business operations.
• Resilient infrastructure in place and disaster recovery
environments available.
• A Cyber Security Policy is in place along with access
security and protocols.
• Penetration testing is carried out at regular intervals.
• National Centre for Cyber Security, Centre for the
Protection of National Infrastructure and security
consultants liaised with as required.
• Work is ongoing to fully implement the principles of
ISO 27001.
This risk has increased due to the heightened level
of perceived cyber threats.
People and
HR
The failure to effectively manage talent,
ensure appropriate training and
resourcing, retain and motivate
competent staff and plan for
leadership succession could impede
the realisation of strategic objectives.
• The business operates a performance-based culture
with competitive pay and conditions benchmarked
against the market.
• Close engagement with staff and utilisation of a
development framework to identify areas for training
and to assist with succession planning.
• Human Resource policies are in place, the operation
of which mitigate risks in this area.
Business
continuity
One-off events or public health
emergencies, epidemics or pandemics,
have the potential to significantly
impact the Moyle Group's operations
through a reduction in staff availability
and business interruption.
• A business continuity plan is in place, with key tasks
identified and more than one individual trained in
each.
• Plan was thoroughly tested by the Covid pandemic
and is proven to work well.
Reliance
upon third
parties
Reliance on 3rd Parties to supply
business critical services can result in
counterparty risk.
• Contract management plans are in place which
identify key deliverables and ensure regular reporting.
• Due diligence is performed, where required, to
ensure financial stability.
• Termination rights and exit planning are in place,
where appropriate.
This risk has reduced as a number of longer term
contracts have been secured with key suppliers
across the Moyle Group.
Third party
interference
Ineffective processes, procedures or
management enable third parties to
cause catastrophic failure leading to
the unavailability of Moyle, costly and
lengthy repairs and reputational
damage.
• Experienced qualified maintenance subcontractors
are used and managed through the contractual
process with frequent performance monitoring.
• Contractors are required to work under a set of
processes and procedures which enable
management of the associated network risks.
Moyle Interconnector (Financing) plc
Strategic report for the year ended 31 March 2025
18
Principal Risks and Uncertainties (continued)
Operational risk (continued)
Risk
Risk description and potential
impact
Mitigations and actions taken
Risk
trend
Health &
safety
Failure to maintain robust and effective
health and safety practices, or failure
to identify and manage wellbeing in the
workforce may lead to injury to staff,
contractor or public or have an adverse
impact on the organisation’s
operations.
• A health & safety policy, management system, and
plans are in place which are reviewed annually.
• Risk assessments, method statements, audits,
inspections and training are regularly performed.
Business environment and market risk: The risk to the organisation of potentially failing to meet its objectives following
significant changes or negative events within the external environment in which it operates.
Risk
Risk description and potential
impact
Mitigations and actions taken
Risk
trend
Market
Market changes for electricity in
Northern Ireland could result in
reduced usage of assets,
insufficient revenue recovery,
default on debt, damage to
reputation of mutual model or fines.
Longer term the market changes
could be driven by climate change
and net zero targets.
• Licence provisions implementing a collection agency
agreement in the electricity business is designed to
protect against such changes.
• An influencing strategy is in place to positively impact
market developments.
This risk has decreased in the period due to the
favourable outcome of the arbitration case.
Financial risk: The risk of failing to safeguard the organisation’s assets, financial impropriety or financial misreporting. Inadequate
financing, liquidity problems, non-compliance with covenants, market changes or failure of counterparties could lead to failure of
financial structure. It includes fraud risk which is seen as the risk of internal or external fraud leading to financial loss, service disruption
and reputational damage.
Risk
Risk description and potential
impact
Mitigations and actions taken
Risk
trend
Poor financial
management
or an
inappropriate
financing
structure
Poor financial management could
result in breach of financing
covenants, compliance failure,
financial loss or failure of
financial structure.
• Authority limits, budgeting and financial processes and
governance structure provide effective controls.
• A strict ring back process is in place to verify payee
changes.
• Financing costs are fully recovered through income
allowances, reducing exposure to inflation risk.
• Processes are in place to monitor covenant compliance.
• Treasury policy requirements, reflecting financing
document requirements, mitigate risks associated with
Moyle Group’s financial assets and liabilities.
• The Moyle Group has low liquidity risk due to strong cash
flows, fully funded reserve accounts and £10m of liquidity
facilities in place.
Moyle Interconnector (Financing) plc
Strategic report for the year ended 31 March 2025
19
Principal Risks and Uncertainties (continued)
Political and regulatory risk: Risks driven by regulatory or political attitudes to the industry generally or Mutual Energy in
particular.
Risk
Risk description and potential
impact
Mitigations and actions taken
Risk
trend
Adverse economic
or compliance
regulatory change
As the Moyle Group own a
regulated business it is exposed
to regulatory risk as well as being
subject to a number of laws.
Changes in economic
regulation, compliance
regulation or government policy
can be costly and failure to
comply with current and future
laws/regulations could
negatively affect the Moyle
Group’s business and our
financial position.
• A proactive approach is taken to consultations on any
issue which could affect Moyle Group’s business
interests, with legal advice sought where appropriate.
• Moyle Group’s relationships with NIAUR and DfE are
managed at senior level through frequent meetings and
correspondence in line with the Mutual Energy group’s
communication strategy.
• A full suite of processes are in place to ensure
compliance. Our asset management systems, health
and safety management and environmental systems
are essential in ensuring legislative compliance.
• Cyber compliance is prevalent given the ongoing Cyber
Assessment Framework (CAF) workplan which stems
from the NIS directive. We are actively engaged with the
Competent Authority and actions are ongoing to meet
the requirements of the CAF workplan.
Project delivery risk: The risk of an event or occurrence that may negatively impact on the delivery of a project.
Risk
Risk description and potential
impact
Mitigations and actions taken
Risk
trend
Failure of project
management
Poor contracting or management,
insufficient resources or extreme
weather could cause project
delays resulting in financial
losses, reputational damage,
damage to assets or loss of
availability.
• Controls are project specific, but centre round
project execution plans and project governance
arrangements for each project.
• Contractors are closely monitored, with stakeholder
engagement plans and insurance in place.
Moyle Interconnector (Financing) plc
Strategic report for the year ended 31 March 2025
20
Principal Risks and Uncertainties (continued)
Corporate strategy and communication risk: The risk associated with failure to achieve the strategic and business
objectives.
Risk
Risk description and potential
impact
Mitigations and actions taken
Risk
trend
Inadequate
corporate
strategy
Inadequate corporate strategy
and communication with external
stakeholders could result in
reputational damage, regulatory
action, loss of support from
members or lost growth
opportunities or failure to deliver
strategic objectives.
• The Board retains responsibility for strategy as a reserved
matter and manages communications directly in line with
its communication plan, using outsourcing as appropriate.
• A member of staff has been appointed to have oversight of
the day-to-day operation of Mutual Energy group
communications and management of the external
consultant.
This risk has increased due to the uncertainty
surrounding government policy and direction on how to
achieve the carbon targets set, which makes it difficult
to ensure that the Mutual Energy group strategy is
aligned to policy.
Failure to
prepare for
energy
transition or
climate
change
Failure to prepare for energy
transition or respond to climate-
related events, and/or having an
inadequate operating model that
is not flexible to adapt to these
changes, which could result in
significant financial, operational
and reputational impacts.
• The Mutual Energy group’s decarbonisation strategic
objective ensures the Board’s cycle of strategy evaluation
and business planning gives explicit regard to energy
transition.
• The Mutual Energy group’s investment in energy transition
staff seeks to involve the business as much as possible in
future developments and manage the risk in this area.
• An Environmental Aspects Register is maintained and
reviewed to assess specific risks in this area.
Forward-looking statements
The Strategic report contains forward-looking statements. Due to the inherent uncertainties, including both
economic and business risk factors underlying such forward-looking information, the actual results of
operations, financial position and liquidity may differ materially from those expressed or implied by these
forward-looking statements.
By order of the Board
Gerard McIlroy
Director
27 June 2025
Moyle Interconnector (Financing) plc
21
Directors’ report for the year ended 31 March 2025
The Directors present their annual report and the audited financial statements of the Group and Parent Company for
the year ended 31 March 2025.
General information on the Company can be found on page 1 and within note 1 to the financial statements.
Results
The Group’s profit for the financial year is £73,124,000 (2024: £15,338,000).
A review of our operational and financial performance, research and development activity, current position and future
developments is included in our Strategic report and this is included in this report by cross-reference.
Directors
The Directors, who served the Group during the year, and up to the date of signing the financial statements, were:
Patrick Larkin
Gerard McIlroy
Going concern
The Group is cash generative and is forecast to remain cash positive. The forecast cash generated is adequate to meet
the Group’s liabilities as they fall due for a period of at least 12 months from the date of approval of the financial
statements, including the scheduled bond payments, and to comply with financing covenants, including the required
Annual Debt Service Cover Ratio. Reserve accounts are fully funded and £10m of liquidity facilities are in place.
Accordingly, the Directors consider it appropriate to adopt the going concern basis in the preparation of the financial
statements.
Financial risk management
Please refer to note 23 to these financial statements for a description of the financial risks that the Group faces and
how it addresses those risks.
Post balance sheet events
There were no subsequent events that need to be brought to the attention of the users of the financial statements.
Corporate Governance
The Company is subject to and complies with UK law comprising the Companies Act 2006 and the Disclosure and
Transparency Rules, and the Listing Rules of the UK Listing Authority. The Company does not apply additional
requirements to those required by the above. Each of the service providers engaged by the Company is subject to their
own corporate governance requirements.
The Directors are responsible for establishing and maintaining adequate internal control and risk management
systems of the Company in relation to the financial reporting process. Such systems are designed to manage rather
than eliminate the risk of failure to achieve the Company’s financial reporting objectives and can only provide
reasonable and not absolute assurance against material misstatement or loss. The Board has established processes
regarding internal control and risk management systems to ensure its effective oversight of the financial reporting
process.
For further details, refer to the notes to the financial statements, particularly note 23 on financial risk management.
Moyle Interconnector (Financing) plc
22
Directors’ report for the year ended 31 March 2025 (continued)
Political contributions
Neither the Company nor its subsidiary have any political donations or incurred any political expenditure in the year
(2024: £nil).
Streamlined Energy & Carbon Report
Mutual Energy Limited, the ultimate parent undertaking, reports energy and carbon information on behalf of the entire
Mutual Energy group, including the Group and Company. This information can be found in Mutual Energy’s Strategic
Report within their Annual Report.
Other information
An indication of likely future developments in the business have been included in the Strategic Report on pages 2 to 20.
Directors’ indemnities
The Group has made a qualifying third party indemnity provision for the benefits of its Directors during the year and it
remained in force at the date of this report.
Statement of Directors' responsibilities in respect of the annual report and the financial
statements
The Directors are responsible for preparing the annual report and the Group and Parent Company financial statements in
accordance with applicable law and regulations.
Company law requires the Directors to prepare Group and Parent Company financial statements for each financial year.
Under that law they are required to prepare the Group financial statements in accordance with UK adopted international
accounting standards and applicable law, and have elected to prepare the Company financial statements on the same
basis.
Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true
and fair view of the state of affairs of the Group and Parent Company and of their profit or loss for that period. In preparing
the Group and Company financial statements, the Directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable, relevant and reliable;
• state whether applicable Accounting Standards have been followed, subject to any material departures disclosed and
explained in the financial statements;
• assess the Group and Company’s ability to continue as a going concern, disclosing, as applicable, matters related to
going concern; and
• use the going concern basis of accounting unless they either intend to liquidate the Group or Company or to cease
operations, or have no realistic alternative but to do so.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the
Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Company and
enable them to ensure that its financial statements comply with the Companies Act 2006. They are responsible for such
internal controls as they determine are necessary to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are
reasonably open to them to safeguard the assets of the Group and to prevent and detect fraud and other irregularities.
Moyle Interconnector (Financing) plc
23
Directors’ report for the year ended 31 March 2025 (continued)
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the
company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial
statements and other information included in the Directors report may differ from legislation in other jurisdictions.
Under applicable law and regulations, the Directors are also responsible for preparing a strategic report, Directors’ report,
and Corporate Governance Statement that complies with that law and those regulations.
Responsibility statement of the Directors in respect of the annual financial report
Each of the Directors, whose names and functions are listed on page 1 of this annual report, confirm that, to the best of
each person’s knowledge and belief:
• the financial statements, prepared in accordance with the applicable set of accounting standards, give a true
and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings
included in the consolidation taken as a whole; and
• the strategic report includes a fair review of the development and performance of the business and the
position of the issuer and the undertakings included in the consolidation taken as a whole, together with a
description of the principal risks and uncertainties that they face.
Auditor
In accordance with section 489 of the Companies Act 2006, a resolution for the re-appointment of Grant Thornton (NI)
LLP as auditor of the Company is to be proposed at the forthcoming Annual General Meeting.
Statement of disclosure of information to auditor
So far as each of the Directors in office at the date of approval of these financial statements is aware:
• there is no relevant audit information of which the Group and Company’s auditor is unaware; and
• they have taken all the steps that they ought to have taken as Directors in order to make themselves aware of any
relevant audit information and to establish that the Group and Company’s auditor is aware of that information.
On behalf of the Board
Gerard McIlroy 27 June 2025
Director
First Floor |
The Arena Building |
85 Ormeau Road |
Belfast |
| BT7 1SH |
Independent auditor’s report to the members of Moyle Interconnector Financing plc
24
Report on the audit of the financial statements
Opinion
We have audited the financial statements of Moyle Interconnector Financing plc (“the Company”) and its subsidiary
(“the Group’’), which comprise the Consolidated statement of profit and loss and other comprehensive income, the
Consolidated and Parent Company balance sheet, the Consolidated and Parent Company statement of changes in equity
and the Consolidated and Parent Company cash flow statements for the year ended 31 March 2025, and the related notes
to the financial statements, and material accounting policy information.
The financial reporting framework that has been applied in the preparation of the financial statements is applicable law
and accounting standards including UK-adopted international accounting standards (UK-adopted IAS).
In our opinion, Moyle Interconnector Financing plc’s financial statements:
• give a true and fair view in accordance with UK-adopted IAS of the financial position of the Group and the
Company as at 31 March 2025 and of the Group financial performance and the Group and Parent Company
cash flows for the year then ended; and
• have been properly prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (‘ISAs (UK)’) and applicable law.
Our responsibilities under those standards are further described in the ‘Responsibilities of the auditor for the audit of the
financial statements’ section of our report. We are independent of the Group and Company in accordance with the ethical
requirements that are relevant to our audit of the financial statements in the United Kingdom, including the FRC’s Ethical
Standard and the ethical pronouncements established by Chartered Accountants Ireland, applied as determined to be
appropriate in the circumstances for the entity. We have fulfilled our other ethical responsibilities in accordance with
these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors’ use of going concern basis of accounting in
the preparation of the financial statements is appropriate. Our evaluation of the validity of the directors’ assessment of
the Group and Company’s ability to continue to adopt the going concern basis of accounting included:
• We assessed and challenged the key assumptions used by management in prospective financial information,
namely budgets and forecasts which covered at least 12 months from date of approval of the financial
statements. In particular we carried out a sensitivity analysis on the key assumptions within the model to
determine the level of working capital head room available for the Group and the Company;
• We compared budgeted financial results to actual financial results for the current year to critically assess
management’s point of estimate;
• We inspected the financing agreement from the lender of the level of committed financing, and the associated
covenant requirements where applicable; and
• We inspected the financing agreement to assess the restriction on the use of funds and compared these with the
restrictions to management’s model.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions
that, individually or collectively, may cast significant doubt on the Group and Company’s ability to continue as a going
concern for a period of at least twelve months from the date when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant
sections of this report.
Independent auditor’s report to the members of Moyle Interconnector Financing plc
25
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
financial statements of the current financial period and include the most significant assessed risks of material misstatement
(whether or not due to fraud) we identified, including those which had the greatest effect on: the overall audit strategy,
the allocation of resources in the audit, and the directing of efforts of the engagement team. These matters were addressed
in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and therefore we
do not provide a separate opinion on these matters.
Overall audit strategy
We designed our audit by determining materiality and assessing the risks of material misstatement in the financial
statements. In particular, we looked at where the directors made subjective judgements, for example, in respect of
significant accounting estimates that involved making assumptions and considering future events that are inherently
uncertain. We also addressed the risk of management override of internal controls, including evaluating whether there
was any evidence of potential bias that could result in a risk of material misstatement due to fraud.
Based on our considerations as set out below, our areas of focus included:
• Valuation of intangible assets (Group);
• Valuation of investment in subsidiary (Parent Company); and
• Accuracy of income and costs in associated with the dispute in relation to revenue constraints which has now
been decided (Group).
How we tailored the audit scope
The Group has one operating segment being the operation of the Moyle Interconnector which links the electricity
transmission systems of Northern Ireland and Scotland. We tailored the scope of our audit taking into account the
areas where the risk of misstatement was considered material to the Group and Company, taking into account the
nature of the Group and Company’s business and the industry in which it operates. We performed an audit of the
complete financial information of the Group’s component. Components represent business units across the Group
considered for audit scoping purposes.
In establishing the overall approach to our audit, we assessed the risk of material misstatement at a Group and
Company level, taking into account the nature, likelihood and potential magnitude of any misstatement. As part of our
risk assessment, we considered the control environment in place at Moyle Interconnector Financing plc.
Materiality and audit approach
The scope of our audit is influenced by our application of materiality. We set certain quantitative thresholds for
materiality. These, together with qualitative considerations, such as our understanding of the entity and its environment,
the history of misstatements, the complexity of the Group and Company and the reliability of the control environment,
helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate
the effect of misstatements, both individually and on the financial statements as a whole.
Based on our professional judgement, we determined materiality for the Group financial statements as a whole to be
£846k (2024: £670k) for the year ended 31 March 2025, determined as being 0.25% of total assets (2024: 0.25%). We
have applied this benchmark because the main objective of the Group is to operate the Moyle Interconnector and
associated assets, and to repay loans used to purchase the assets which serve the principal activity of the business.
We have set Performance materiality for the Group at 75% of materiality, being £635k (2024: £503k), having
considered the risk of misstatements in prior years, business risks and fraud risks associated with the entity and it’s the
control environment. This is to reduce to an appropriately low level the probability that the aggregate of uncorrected
and undetected misstatements in the financial statements exceeds materiality for the financial statements as a whole.
We agreed with the Audit and Risk Committee that we would report to them misstatements identified during our audit
above 5% of overall Group materiality.
Independent auditor’s report to the members of Moyle Interconnector Financing plc
26
Materiality and audit approach (continued)
Based on our professional judgement, we determined materiality for the Parent Company financial statements as a
whole to be £199k (2024: £179k) for the year ended 31 March 2025, determined as being 0.25% of total assets (2024:
0.25%). We have applied this benchmark because the main objective of the company is to operate the Moyle
Interconnector asset and to repay loans used to purchase the assets which serve the principal activity of the business.
We have set Performance materiality for the Parent Company at £149k (2024: £134k), being 75% of materiality, having
considered the risk of misstatements in prior years, business risks and fraud risks associated with the entity and it’s the
control environment. This is to reduce to an appropriately low level the probability that the aggregate of uncorrected
and undetected misstatements in the financial statements exceeds materiality for the financial statements as a whole.
We agreed with the Audit and Risk committee that we would report to them misstatements identified during our audit
above 5% of overall Parent Company materiality.
Significant matters identified
The risks of material misstatement that had the greatest effect on our audit, including the allocation of our resources
and effort, are set out below as significant matters together with an explanation of how we tailored our audit to address
these specific areas in order to provide an opinion on the financial statements as a whole. This is not a complete list of
all risks identified by our audit.
Valuation of intangible asset (Group) £20m (2024: £22m)
Description of significant matter
Our audit approach
There is a risk that the intangibles held by the
Group are not carried at their realisable value on
the statement of financial position, in line with
the requirements of UK-adopted IAS. The
Group has intangible assets of £20m which were
created in the consolidation of the Parent and the
Subsidiary undertaking. The carrying value of
these intangible assets are material to the user of
the financial statements.
Significant auditor’s attention was deemed
appropriate because of the materiality of the
intangible assets. The recoverability of the
carrying value the Group’s intangible assets are
supported by the overall performance of the
business, including consideration of prospective
information.
Impairment is considered annually at the
reporting date by the directors.
As a result, we considered this to be a key audit
matter.
Information on the intangible asset can be found
in note 8 to the financial statements.
Our procedures included, but not limited to:
• Obtaining an understanding and evaluation of the
design and implementation of key controls relevant
to the valuation processes;
• Obtaining an understanding of the licence, and
direction with the Group’s regulator. The licence
allows the Group to operate the electricity network;
• Obtaining financial projections of the Group and
critically assessing the key assumptions made by the
directors in respect of predicting the expected
revenue receipts and costs incurred for the remaining
life of the licence;
• Reviewing and challenging the assumptions
regarding the remaining useful economic life of the
licence, and assessed the accuracy of the closing
balance and amortisation charged in the year;
• Assessing the level of headroom available between
the projected discounted surplus at the end of the
life of the licence and the carrying value of the
licence; and
• Reviewing the accounting treatment and associated
disclosures in the financial statements for conformity
with the requirements of UK-adopted IAS.
We completed our planned audit procedures, with no
exceptions noted.
Independent auditor’s report to the members of Moyle Interconnector Financing plc
27
Valuation of investment in subsidiary undertaking (Parent Company) £21m (2024: £21m)
Description of significant matter
Our audit approach
The Parent Company has an investment in a
subsidiary undertaking of £21m. There is no
observable market price quoted for this investment.
There is a risk that the investment held by the Parent
Company is not carried at realisable value on the
statement of financial position, in line with the
requirements of UK-adopted IAS.
Significant auditor’s attention was deemed
appropriate because of the materiality of the
investment. The recoverability of carrying value the
Parent Company’s investment is supported by the
overall performance of the business, including
consideration of prospective information.
Impairment is considered annually at the reporting
date by the directors.
As a result, we considered this to be a key audit
matter.
Information on the investment can be found in note
9 to the financial statements.
Our procedures included, but not limited to:
• Obtaining an understanding and evaluation of the
design and implementation of key controls relevant to
the valuation processes;
• Obtaining an understanding of the underlying
investment in the subsidiary and how this links to the
overall performance of the Group;
• Obtaining financial projections for the subsidiary and
critically assessing the key assumptions made by the
directors in respect of predicting the expected revenue
receipts and costs; incurred for the remaining life of
the assets;
• Assessing the level of headroom available between the
projected discounted surplus at the end of the life of
the subsidiary’s assets and the carrying value of the
investment in subsidiary; and
• Reviewing the accounting treatment and associated
disclosures in the financial statements for conformity
with the requirements of UK-adopted IAS.
We completed our planned audit procedures, with no
exceptions noted.
Independent auditor’s report to the members of Moyle Interconnector Financing plc
28
Accuracy of income and costs associated with the dispute in relation to revenue constraints which has now
been decided (Group)
Description of significant matter
Our audit approach
In the year ended 31 March 2024 management
included an allowance for bad debt in relation to
income of £20,241k which was due from SONI in
relation to capacity restraints imposed by SONI
against Moyle Interconnected Limited during the
period from September 2021 to March 2024. At the
time of approval of the financial statements for the
year ended 31 March 2024 there was a live
arbitration case to settle this dispute and as such, an
allowance for this amount was made in the financial
statements.
In July 2024, the arbitrator provided a ruling that
Moyle were successful in their claim against SONI
and were therefore entitled in full to the revenue
associated with the capacity constraints. In addition,
the ruling also stated that the associated legal costs,
and interest relating to the accrued revenue was
recoverable from SONI to Moyle. Due to the value
of these amounts, the treatment of these amounts
within the financial statements is assessed to be a key
audit matter.
Information on the reversal of the provision can be
found in note 12 to the financial statements.
Our procedures included, but not limited to:
• Obtaining an understanding and evaluation of
the design and implementation of key controls
relevant to the reporting processes;
• Reviewing of legal documentation and minutes
in respect of the case to assess whether all key
judgements have been understood.
• Reviewing the placement of income to confirm
that this is included within other income.
• Reviewing the placement of the associated
costs to confirm that these are included
expenses and accruals if relevant.
• Reviewing the amounts recorded as
recoverable to assess whether the balances
calculated by management are complete and
accurate.
• Audit of disclosures in respect of the issue and
ensure that the disclosure appropriately reflects
the current updates in respect of the legal case.
• Subsequent reviews to assess, if necessary, all
updates have been correctly disclosed in the
financial statements.
We completed our planned audit procedures, with
no exceptions noted.
Other information
Other information comprises information included in the annual report, other than the financial statements and our
auditor’s report thereon, including the Directors’ Report and the Strategic Report.
The directors are responsible for the other information. Our opinion on the financial statements does not cover the other
information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance
conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial statements or our knowledge
obtained in the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies in the
financial statements, we are required to determine whether there is a material misstatement in the financial statements or
a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a
material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Independent auditor’s report to the members of Moyle Interconnector Financing plc
29
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• the information given in the Strategic Report and the Directors’ Report for the financial year for which the
financial statements are prepared is consistent with the financial statements; and
• the Strategic Report and the Directors’ Report have been prepared in accordance with applicable legal
requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit,
we have not identified any material misstatements in the Strategic Report and the Directors’ Report. We have nothing to
report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• adequate accounting records have not been kept, or returns adequate for our audit have not been received from
branches not visited by us; or
• the financial statements are not in agreement with the accounting records and returns; or
• certain disclosures of directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
Responsibilities of management and those charged with governance for the financial statements
As explained more fully in the Directors' responsibilities statement, management is responsible for the preparation of the
financial statements which give a true and fair view in accordance with UK-adopted IAS, and for such internal control
as directors determine necessary to enable the preparation of financial statements are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Group and Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis
of accounting unless management either intends to liquidate the Group or company or to cease operations, or has no
realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group and Company’s financial reporting process.
Responsibilities of the auditor for the audit of the financial statements
The objectives of an auditor are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes their opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs
(UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
A further description of an auditor’s responsibilities for the audit of the financial statements is located on the Financial
Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s
report.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line
with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.
Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatement in the financial
statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs
(UK). The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
Independent auditor’s report to the members of Moyle Interconnector Financing plc
30
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
(continued)
Based on our understanding of the Group and industry, we identified that the principal risks of non-compliance with
laws and regulations related to compliance with the London Stock Exchange Listing Rules, Data Privacy law,
Employment Law, Environmental Regulations, Pensions Legislation, Health & Safety and the directives issued by the
Utilities Regulator in Northern Ireland, and we considered the extent to which non-compliance might have a material
effect on the financial statements. We also considered those laws and regulations that have a direct impact on the
preparation of the financial statements such as the Companies Act 2006 and UK tax legislation. We evaluated
management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of
override of controls), and determined that the principal risks were related to posting inappropriate journal entries to
manipulate financial performance and management bias through judgements and assumptions in significant accounting
estimates, in particular in relation to significant one-off or unusual transactions. We apply professional scepticism through
the audit to consider potential deliberate omission or concealment of significant transactions, or incomplete/inaccurate
disclosures in the financial statements.
In response to these principal risks, our audit procedures included but were not limited to:
• enquiries of management, the board, and the Audit and Risk committee on the policies and procedures in place
regarding compliance with laws and regulations, including consideration of known or suspected instances of
non-compliance and whether they have knowledge of any actual, suspected or alleged fraud;
• inspection of the Group’s regulatory and legal correspondence and review of minutes of board and Audit and
Risk committee meetings during the year to corroborate inquiries made;
• gaining an understanding of the entity’s current activities, the scope of authorisation and the effectiveness of its
control environment to mitigate risks related to fraud;
• discussion amongst the engagement team in relation to the identified laws and regulations and regarding the risk
of fraud, and remaining alert to any indications of non-compliance or opportunities for fraudulent manipulation
of financial statements throughout the audit;
• identifying and testing journal entries to address the risk of inappropriate journals and management override of
controls;
• designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing;
• challenging assumptions and judgements made by management in their significant accounting estimates,
including estimating the useful economic life of assets, judgements made in the continuing implementation of
IFRS 16: leases and estimating the assumptions used in the calculation of the decommissioning provision;
• review of the financial statement disclosures to underlying supporting documentation and inquiries of
management; and
• the audit engagement partner considered the experience and expertise of the engagement team to ensure that the
team had appropriate competence and capabilities to identify or recognise non-compliance with the laws and
regulation.
The primary responsibility for the prevention and detection of irregularities including fraud rests with those charged with
governance and management. As with any audit, there remains a risk of non-detection or irregularities, as these may
involve collusion, forgery, intentional omissions, misrepresentations or override of internal controls.
The purpose of our audit work and to whom we owe our responsibilities
This report is made solely to the company’s members, as a body, in accordance with chapter 3 of Part 16 of the Companies
Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are
required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do
not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our
audit work, for this report, or for the opinions we have formed.
Independent auditor’s report to the members of Moyle Interconnector Financing plc
31
Report on other legal and regulatory requirements
We were appointed by the Board of Directors on 16 January 2025 to audit the financial statements for the year ended 31
March 2025.
This is the third year in which Grant Thornton (NI) LLP have carried out the external audit of the Group and the
Company.
The audit opinion is consistent with the additional report to the Audit and Risk committee.
Ms. Louise Kelly (Senior Statutory Auditor)
For and on behalf of
Grant Thornton (NI) LLP
Chartered Accountants & Statutory Auditors
Belfast
27 June 2025
Moyle Interconnector (Financing) plc
32
Consolidated statement of profit and loss and other comprehensive income for
the year ended 31 March 2025
2025
2024
Note
£’000
£’000
Revenue
2a
Revenue rebate
2a
(3,638 )
(3,008 )
Revenue – continuing operations
2a
Operating expenses
2b
(21,586 )
(20,722 )
Reversal of/(allowance for) doubtful debt
2b
(20,241 )
Other operating income
Operating profit
Finance income
4
Finance expenses
4
(4,386 )
(8,565 )
Finance income/(expenses) - net
4
(2,918 )
Profit before tax
Taxation
5
(24,410 )
(5,190 )
Profit and total comprehensive income for the year
attributable to the owners of the parent
15
All results arise from continuing operations.
The notes on pages 36 to 62 are an integral part of these consolidated financial statements.
Moyle Interconnector (Financing) plc
33
Consolidated and Parent Company balance sheet as at 31 March 2025
The notes on pages 36 to 62 are an integral part of these consolidated financial statements.
The Group financial statements on pages 32 to 62 were authorised for issue by the Board of Directors on 27 June 2025 and
were signed on its behalf by:
Patrick Larkin
Gerard McIlroy
Director
Director
Moyle Interconnector (Financing) plc Registered number: NI045625
Group | Company | ||||
2025 | 2024 | 2025 | 2024 | ||
Note | £’000 | £’000 | £’000 | £’000 | |
Assets | |||||
Non-current assets | |||||
Property, plant and equipment | 7 | - | - | ||
Intangible assets | 8 | - | - | ||
Investment in subsidiary undertaking | 9 | - | - | 20,950 | 20,950 |
Other investments | 10 | - | - | ||
Trade and other receivables | 11 | 39,112 | 44,060 | ||
| 60,062 | 65,010 | ||||
Current assets | |||||
Trade and other receivables | 12 | 19,532 | 6,620 | ||
Tax receivable | - | - | |||
Cash and cash equivalents | 13 | 151 | 150 | ||
| 19,683 | 6,770 | ||||
Total assets | 79,745 | 71,780 | |||
Equity and liabilities | |||||
Equity attributable to the owners of the parent | |||||
Share capital | 14 | 200 | 200 | ||
Retained earnings | 15 | 25,131 | (133) | ||
Total equity | 25,331 | 67 | |||
Liabilities | |||||
Non-current liabilities | |||||
Interest bearing loans and borrowings | 16 | 46,629 | 52,492 | ||
Provisions | 18 | - | - | ||
Deferred tax liabilities | 19 | - | - | ||
Government grant | 20 | - | - | ||
46,629 | 52,492 | ||||
Current liabilities | |||||
Trade and other payables | 21 | 45 | 11,471 | ||
Tax payable | - | - | 1 | - | |
Interest bearing loans and borrowings | 16 | 7,739 | 7,750 | ||
Government grant | 20 | - | - | ||
7,785 | 19,221 | ||||
Total liabilities | 54,414 | 71,713 | |||
Total equity and liabilities | 79,745 | 71,780 |
Moyle Interconnector (Financing) plc
34
Consolidated and Parent Company statement of changes in equity for the year
ended 31 March 2025
Group
Share capital
£’000
Retained
earnings
£’000
Total equity
£’000
At 1 April 2023
Issue of ordinary shares
-
Profit and total comprehensive income for the year
-
At 31 March 2024
Dividend paid
-
(1,650 )
(1,650 )
Profit and total comprehensive income for the year
-
At 31 March 2025
Share capital
Retained
earnings
Total equity
Company
£’000
£’000
£’000
At 1 April 2023
50
(68)
(18)
Loss and total comprehensive expense for the year
-
(65)
(65)
Issue of ordinary shares
150
-
150
At 31 March 2024
200
(133)
67
Dividend paid
-
(1,650)
(1,650)
Profit and total comprehensive income for the year
-
26,914
26,914
At 31 March 2025
200
25,131
25,331
The notes on pages 36 to 62 are an integral part of these consolidated financial statements.
Moyle Interconnector (Financing) plc
35
Consolidated and Parent Company cash flow statements for the year ended 31
March 2025
Group
Company
2025
2024
2025
2024
Note
£’000
£’000
£’000
£’000
Cash flows from operating activities
Profit before tax
26,851
-
Adjustments for:
Finance expenses - net
4
(5,691 )
4,017
7,699
Depreciation of property, plant and equipment
7
-
-
Amortisation and release of government grant
20
(987 )
(987 )
-
-
Amortisation of intangible assets
8
-
-
Movement in trade and other receivables
(2,517 )
4,972
2,066
Reversal of/(allowance for) doubtful debt
(20,241 )
-
-
Movement in trade and other payables
(2,126 )
(7,311)
(9,778)
Dividends received
-
-
(26,851)
-
Income tax paid
(15,168 )
(10,500 )
(35)
-
Net cash from/(used in) operating activities
1,643
(13)
Cash flows from investing activities
Interest received
16
2
Amounts received from related parties
-
-
9,900
10,088
Purchases of property, plant and equipment
(2,017 )
(1,059 )
-
-
Net cash from investing activities
9,916
10,090
Cash flows from financing activities
Interest and indexation paid (including borrowing
fees)
(6,369 )
(6,298 )
(6,222)
(6,244)
Repayment of borrowings
(3,686 )
(3,848 )
(3,686)
(3,848)
Lease payments
(187 )
(137 )
-
-
Dividends paid
(1,650 )
(1,650)
-
Issue of shares
-
150
Net cash used in financing activities
(11,892 )
(10,133 )
(11,558)
(9,942)
Net increase in cash and cash equivalents
1
135
Cash and cash equivalents at 1 April
13
150
15
Cash and cash equivalents at 31 March
13
151
150
The notes on pages 36 to 62 are an integral part of these consolidated financial statements.
Moyle Interconnector (Financing) plc
36
Notes to the financial statements for the year ended 31 March 2025
1 Material accounting policies and critical accounting estimates/judgements
General information
a public company limited by shares , incorporated, registered and domiciled in Northern Ireland
the company is NI045625 and the address of its registered office is First Floor, The Arena Building, 85 Ormeau Road,
Belfast, BT7 1SH.
The Group financial statements are presented in Sterling and all values are rounded to the nearest thousand pounds
(£’000) except when otherwise indicated. All of the Group and Company’s assets and liabilities are denominated in
Sterling with the exception of certain payables and receivables in relation to Euro sales contracts.
The Group financial statements consolidate those of the Company and its subsidiary (together referred to as the
“Group”). The Parent Company financial statements present information about the Company as a separate entity and not
about its Group.
The Group financial statements were authorised for issue by the Board of Directors on 27 June 2025 and were signed on
consolidated financial statements are set out below. These policies have been consistently applied to all the years
presented, unless otherwise stated.
Basis of preparation
The Group financial statements have been prepared and approved by the Directors in accordance with UK adopted
international accounting standards (“UK-adopted IAS”) as applied in accordance with the provisions of the Companies
have been prepared on a going concern basis, under the historical cost convention except for certain financial
instruments as per the accounting policies below.
The preparation of financial statements in conformity with UK-adopted IAS requires the use of certain critical accounting
estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting
policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are
significant to the consolidated financial statements are disclosed on pages 44 and 45. The Company has availed of the
exemption permitted by Section 408 of the Companies Act 2006, and so the Parent Company’s statement of profit and
loss and other comprehensive income has not been included in these financial statements.
Going concern
The Group is cash generative and is forecast to remain cash positive. The forecast cash generated is adequate to meet the
Group’s liabilities as they fall due for at least 12 months from the date of approval of the financial statements including the
scheduled bond payments, and to comply with financing covenants, including the required Annual Debt Service Cover
Ratio. Reserve accounts are fully funded and £10m of liquidity facilities are in place. Accordingly, the Directors consider it
appropriate to adopt the going concern basis in the preparation of the financial statements.
New standards, amendments or interpretations
Newly adopted standards
The Group has adopted the following IFRSs in these financial statements:
• Classification of Liabilities as Current or Non-current (Amendments to IAS 1)
• Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)
• Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7)
Moyle Interconnector (Financing) plc
37
Notes to the financial statements for the year ended 31 March 2025
1 Material accounting policies and critical accounting estimates/judgements (continued)
New standards, amendments or interpretations (continued)
Newly adopted standards (continued)
The adoption of these amendments to IFRSs did not result in material changes to the Group or Parent Company financial
Adopted IFRS not yet applied
The following Adopted IFRSs have been issued but have not been applied by the Group or Parent Company in these financial
statements. Their application is not expected to have a material effect on the financial statements unless otherwise
indicated and no disclosures have been made:
• Lack of Exchangeability (Amendments to IAS 21)
• Amendments to the Classification and Measurement of Financial Instruments (Amendments
• to IFRS 9 and 7)
• IFRS 18 ‘Presentation and Disclosure in Financial Statements’
• IFRS 19 ‘Subsidiaries without Public Accountability: Disclosures’
Basis of consolidation
The consolidated financial statements consolidate the financial statements of Moyle Interconnector (Financing) plc and its
subsidiary undertaking drawn up to 31 March 2025. Subsidiaries are all entities (including structured entities) over which
the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from
its involvement with the entity and has the ability to affect those returns through its power over the entity. In assessing
control, the Group takes into consideration potential voting rights. The acquisition date is the date on which control is
transferred to the acquirer. Subsidiaries are fully consolidated from the date on which control is transferred to the
Group. They are deconsolidated from the date that control ceases.
Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions,
are eliminated. Unrealised gains arising from transactions with equity-accounted investees are eliminated against the
investment to the extent of the Group’s interest in the investee. Unrealised losses are eliminated in the same way as
unrealised gains, but only to the extent that there is no evidence of impairment.
Segment reporting
The Group has one business segment, the selling of capacity on the Moyle Interconnector for the transmission of
electricity between Scotland and Northern Ireland and one geographical segment, the United Kingdom. Accordingly
Foreign exchange
Transactions in foreign currencies are translated to the respective functional currencies of Group entities at the foreign
exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at
the reporting date are retranslated to the functional currency at the foreign exchange rate ruling at that date. Foreign
exchange differences arising on translation are recognised in the income statement. Non-monetary assets and liabilities
that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of
the transaction.
Moyle Interconnector (Financing) plc
38
Notes to the financial statements for the year ended 31 March 2025
1 Material accounting policies and critical accounting estimates/judgements (continued)
Revenue
Revenue is made up of two parts: commercial revenue and tariff revenue. All revenue is generated within the United
Kingdom and is shown net of value-added tax, returns, rebates and discounts and after eliminating sales within the
Group. Revenues recognised in the period in which the services are provided to the System Operators or customers.
Commercial Revenue
Commercial revenue, totalling £96,212,000 (2024: £67,296,000), comprises the fair value of the consideration received
or receivable for making available the capability of the interconnector to the System Operators, SONI and National Grid
ESO via the overarching market arrangements. This capability is provided to the System Operators via either direct
contracts for services or industry wide contractual arrangements. The revenues are accounted for in line with the
delivery of the services provided under the overarching market arrangements.
Tariff Revenue
The interconnector is entitled to collect revenue via a tariff known as the Collection Agency Income Requirement
(CAIRt). CAIRt revenue is recognised in line with the income recovered by SONI on Moyle’s behalf via Northern Ireland
electricity tariffs, as provided for in Moyle’s Collection Agency Agreement. No CAIRt revenue was required throughout
the current or prior year.
Revenue Rebate
When there is an agreement in place to rebate revenue via a tariff reduction, tariff revenue rebates are recognised in line
with the rebates passed through to Northern Ireland electricity tariffs by SONI, on Moyle’s behalf. In the current year a
revenue rebate of £3,638,000 (2024: £3,008,000) was paid (see note 2a for further details).
Finance income and finance expenses
Finance income comprises interest income on funds invested, negative interest on leases and net foreign exchange
gains. Interest income is recognised as it accrues in profit or loss, using the effective interest method. Finance
expenses include interest expense on borrowings, unwinding of the discount on provisions, net foreign exchange losses
and interest expense on amounts owed by related parties. Interest expense is recognised as it accrued in profit or loss
using the effective interest method. Borrowing costs that are not directly attributable to the acquisition, construction or
Dividends
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid.
Final equity dividends are recognised when approved at an annual general meeting.
Intangible assets
Acquired licences are shown at historical cost. Licences have a finite useful life and are carried at cost less
accumulated amortisation. Amortisation is calculated using the straight-line method to allocate the cost of licences
over their estimated useful lives. The estimated remaining useful economic life of the licences is 12 years. The useful
economic life of the licence is linked to the regulatory direction which allows for the recovery of repayment of debts
through Moyle’s licence.
Property, plant and equipment
Property, plant and equipment is stated at historical cost less accumulated depreciation and accumulated impairment
losses. The initial cost of an asset comprises purchase cost plus any costs directly attributable to bringing the asset
into operation and an estimate of any decommissioning costs. Subsequent costs are included in the asset’s carrying
amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits
associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount
of the replaced part is derecognised. An asset is derecognised upon disposal or when no future economic benefit is
expected to arise from the asset. All other repairs and maintenance are charged to the statement of profit and loss
during the financial period in which they are incurred.
Moyle Interconnector (Financing) plc
39
Notes to the financial statements for the year ended 31 March 2025
1 Material accounting policies and critical accounting estimates/judgements (continued)
Property, plant and equipment (continued)
The charge for depreciation is calculated so as to write off the depreciable amount of assets over their estimated useful
economic lives on a straight line basis.
The useful economic lives of each major class of depreciable asset are as follows:
Interconnector assets 25 - 40 years*
Control equipment 15 - 20 years**
Plant & Machinery 15 years
Right-of-use assets 5-22 years
*The weighted useful economic life of the interconnector assets is 35.5 years.
** The weighted useful economic life of the control system assets is 15.0 years.
The assets’ residual values and useful economic lives are reviewed, and adjusted if appropriate, at each reporting date. 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.
Assets under construction are stated at historical cost less any impairment in value. Historical cost includes expenditure
that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset's carrying value
amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits
associated with the item will flow to the entity and the cost of the item can be measured reliably. Assets under
Leases
The Group does not act as a lessor on any leases. The accounting policies presented below set out the policies for
recognising leases where the Group acts as a lessee.
At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a
lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for
consideration.
At commencement or on modification of a contract that contains a lease component, the Group allocates the
consideration in the contract to each lease component on the basis of their relative stand-alone prices.
The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is
initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made
at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and
remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives
received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the
earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of the
asset are determined on the same basis as those of property, plant and equipment. In addition, the right-of-use asset is
periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement
date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s
incremental borrowing rate. The Group uses its incremental borrowing rate as the discount rate.
Moyle Interconnector (Financing) plc
40
Notes to the financial statements for the year ended 31 March 2025
1 Material accounting policies and critical accounting estimates/judgements (continued)
Leases (continued)
Lease payments included in the measurement of the lease liability comprise the following:
- fixed payments;
- variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the
commencement date;
- lease payments in an optional renewal period if the Group is reasonably certain to exercise an extension option;
and
penalties for early termination of a lease unless the Group is reasonably certain not to terminate early.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a
change in future lease payments arising from a change in an index or rate, or if the Group changes its assessment of
whether it will exercise a purchase extension or termination option.
When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-
of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The Group presents right-of-use assets in ‘property, plant and equipment’ and lease liabilities in ‘interest bearing loans
and borrowings’ in the balance sheet (see notes 7 and 16 respectively).
Short-term leases and leases of low-value assets
The Group has elected not to recognise right-of-use assets and lease liabilities for lease of low-value assets and short-
term leases. The Group recognises the lease payments associated with these leases as an expense on a straight-line
Investments
Investments in subsidiaries are recognised initially at fair value and subsequently measured at cost less impairment.
Investments in other unquoted companies are recorded at cost, which is the consideration paid. These assets are
Impairment of non-financial assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such
indication exists the Group makes an estimate of the asset’s recoverable amount. An asset’s recoverable amount is the
higher of an asset’s or cash-generating unit’s fair value less costs to sell and its value in use and is determined for an
individual asset or CGU. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered
impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are
discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time
value of money and the risks specific to the asset. Impairment losses of continuing operations are recognised in the
Reversal of impairment losses
Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has
decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to
determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount
does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no
Financial instruments
(i) Recognition and initial measurement
Trade receivables and debt securities issued are initially recognised when they are originated. All other financial assets
and financial liabilities are initially recognised when the Group becomes a party to the contractual provisions of the
instrument.
A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially
measured at fair value plus, for an item not at fair value through profit or loss, transaction costs that are directly
attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured
Moyle Interconnector (Financing) plc
41
Notes to the financial statements for the year ended 31 March 2025
1 Material accounting policies and critical accounting estimates/judgements (continued)
Financial instruments (continued)
(ii) Classification and subsequent measurement
Financial assets
(a) Classification
On initial recognition, a financial asset is classified as measured at: amortised cost; or fair value through other
comprehensive income (FVOCI) – equity investment. Financial assets are not reclassified subsequent to their initial
recognition unless the Group changes its business model for managing financial assets, in which case all affected
financial assets are reclassified on the first day of the first reporting period following the change in the business model.
A financial asset is measured at amortised cost if it meets both of the following conditions:
- it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
- its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest
on the principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present
subsequent changes in the investment’s fair value in other comprehensive income (OCI). This election is made on an
investment-by-investment basis.
Investments in subsidiaries are carried at cost less impairment.
Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits with original maturities of three months or less.
Bank overdrafts that are repayable on demand and form an integral part of the Group’s cash management are included as
a component of cash and cash equivalents for the purpose only of the cash flow statement.
(b) Subsequent measurement and gains and losses
Financial assets at amortised cost - these assets are subsequently measured at amortised cost using the effective
interest method. The amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses
and impairment are recognised in profit or loss. Any gain or loss on derecognition is recognised in profit or loss.
Equity investments at FVOCI - these assets are subsequently measured at fair value. Dividends are recognised as income
in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and
losses are recognised in OCI and are never reclassified to profit or loss.
Financial liabilities and equity
Financial instruments issued by the Group are treated as equity only to the extent that they meet either of the following
two conditions:
(a) they include no contractual obligations upon the Group to deliver cash or other financial assets or to exchange
financial assets or financial liabilities with another party under conditions that are potentially unfavourable to the
Group; or
(b) where the instrument will or may be settled in the Company’s own equity instruments, it is either a non-derivative
that includes no obligation to deliver a variable number of the Company’s own equity instruments or is a derivative
that will be settled by the Company’s exchanging a fixed amount of cash or other financial assets for a fixed number
of its own equity instruments.
To the extent that this definition is not met, the proceeds of issue are classified as a financial liability. Where the
instrument so classified takes the legal form of the Company’s own shares, the amounts presented in these financial
statements for called up share capital and share premium account exclude amounts in relation to those shares.
Financial liabilities are classified as measured at amortised cost. Financial liabilities are subsequently measured at
amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are
Moyle Interconnector (Financing) plc
42
Notes to the financial statements for the year ended 31 March 2025
1 Material accounting policies and critical accounting estimates/judgements (continued)
Financial instruments (continued)
(iii) Impairment
The Group recognises loss allowances for expected credit losses (ECLs) on financial assets and contract assets
measured at amortised cost.
The Group measures loss allowances at an amount equal to lifetime ECL, except for bank balances for which credit risk
(i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since
initial recognition which are measured as 12-month ECL.
Loss allowances for trade receivables and contract assets are always measured at an amount equal to lifetime ECL.
When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when
estimating ECL, the Group considers reasonable and supportable information that is relevant and available without undue
cost or effort. This includes both quantitative and qualitative information and analysis, based on the Group’s historical
experience and informed credit assessment and including forward-looking information.
Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument.
12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the
reporting date (or a shorter period if the expected life of the instrument is less than 12 months).
The maximum period considered when estimating ECLs is the maximum contractual period over which the Group is
exposed to credit risk.
Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash
shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows
that the Group expects to receive). ECLs are discounted at the effective interest rate of the financial asset.
Credit-impaired financial assets
At each reporting date, the Group assesses whether financial assets carried at amortised cost are credit-impaired. A
financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on the estimated future cash
flows of the financial asset have occurred.
Write-offs
The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no realistic
Derecognition - financial assets
The Group derecognises a financial asset when:
• the contractual rights to the cash flows from the financial asset expire; or
• it transfers the rights to receive the contractual cash flows in a transaction in which either:
• substantially all of the risks and rewards of ownership of the financial asset are transferred; or
• the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain
control of the financial asset.
Derecognition - financial liabilities
The Group derecognises a financial liability when its contractual obligations are discharged or cancelled, or expired. The
Group also derecognises a financial liability when its terms are modified and the cash flows of the modified liability are
substantially different, in which case a new financial liability based on the modified terms is recognised at fair value.
On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration
paid (including any non-cash assets transferred or liabilities assumed) is recognised in profit or loss.
Moyle Interconnector (Financing) plc
43
Notes to the financial statements for the year ended 31 March 2025
1 Material accounting policies and critical accounting estimates/judgements (continued)
Financial liabilities at amortised cost (financial instruments)
(a) Borrowings
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at
amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in
the statement of profit and loss over the period of the borrowings using the effective interest method.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability
for at least 12 months after the reporting date.
(b) Trade and other payables
Trade payables 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 payment is due within one year or less. If not, they are
presented as non-current liabilities. Trade and other payables are recognised initially at fair value and subsequently
measured at amortised cost using the effective interest method.
Decommissioning provision
A provision is recognised in the balance sheet when the Group has a present legal or constructive obligation as a result of
a past event, that can be reliably measured and it is probable that an outflow of economic benefits will be required to
settle the obligation.
Decommissioning costs are provided at the present value of the expenditures expected to settle the obligation, using
estimated cash flows based on current prices. The unwinding of the decommissioning provision is included within
finance expenses in the statement of profit and loss. The estimated future costs of the decommissioning obligations are
regularly reviewed and adjusted as appropriate, through property, plant and equipment, for new circumstances or
changes in law or technology. The decommissioning costs have been capitalised within property, plant and equipment
and depreciated in line with Group policy.
Taxation
Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the profit and loss account
except to the extent that it relates to items recognised directly in equity or other comprehensive income, in which case it is
recognised directly in equity or other comprehensive income. Current tax is the expected tax payable or receivable on the
taxable income or loss for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any
carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.
• initial recognition of assets or liabilities that affect neither accounting nor taxable profit other than in a business
combination; and
• differences relating to investments in subsidiaries to the extent that they will probably not reverse in the
foreseeable future.
The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount
of assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date. Deferred income tax
assets are recognised to the extent that it is probable that future taxable profit will be available against which the
temporary differences can be utilised.
Government grants
Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be
received and the Group will comply with all attached conditions. Government grants relating to property, plant and equipment
are included in current and non-current liabilities as deferred government grants and are credited to the profit or loss on a
Moyle Interconnector (Financing) plc
44
Notes to the financial statements for the year ended 31 March 2025
1 Material accounting policies and critical accounting estimates/judgements (continued)
Employee benefits
The Group and Company have no directly employed staff of their own. Amounts included in staff costs relate to costs
directly charged from Mutual Energy in respect of employees performing asset management activities for the Group
Critical accounting estimates and judgements
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including
expectations of future events that are believed to be reasonable under the circumstances.
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by
definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing
a material adjustment to the carrying value of assets and liabilities within the next financial year are discussed below:
Estimates
(a) Estimate of useful economic life of assets
The Group assesses the useful economic life of assets on an annual basis.
The remaining useful economic life of the interconnector was assessed at 18 years (2024: 19) at the beginning of the year.
If the remaining useful economic life had been assessed as one year more depreciation would have decreased by
£210,000 (2024: £200,000) and if the remaining useful economic life had been assessed as one year less depreciation
would have increased by £235,000 (2024: £223,000). The net book value of the Moyle Interconnector assets is disclosed in
note 7.
The remaining useful economic life of the licences was determined as approximately 13 (2024: 14) years at the beginning
of the year. If the remaining useful economic life had been assessed at 14 (2024: 15) years amortisation would have
decreased by £119,000 (2024: £111,000) and if the remaining useful economic life had been assessed at 12 (2024: 13)
years amortisation would have increased by £138,000 (2024: £128,000).
(b) Estimate of assumptions used in the calculation of the decommissioning provision
The decommissioning provision has been estimated at current prices and has therefore been increased to
decommissioning date by an inflation rate of 3.24% (2024: 3.20%) based on expected time of expenditure of 17 years
(2024: 18 years). The decommissioning provision has been discounted using a rate of 5.13% (2024: 4.34%). The effect of
changing the discount rate, inflation rate and timing of expenditure on the decommissioning provision is disclosed in the
table below.
Increase/(decrease) in provision
2025
2024
£’000
£’000
Increase in inflation rate by 1%
485
561
Decrease in inflation rate by 1%
(415)
(476)
Increase in discount rate by 1%
(405)
(467)
Decrease in discount rate by 1%
480
560
Increase in useful economic life of the asset by one year
(49)
(32)
Decrease in useful economic life of the asset by one year
50
33
Moyle Interconnector (Financing) plc
45
Notes to the financial statements for the year ended 31 March 2025
1 Material accounting policies and critical accounting estimates/judgements (continued)
Critical accounting estimates and judgements (continued)
Judgements
(c) Judgements made in the application of IFRS 16 Leases
The remaining useful lives of the right of use assets in respect of the Group’s Crown Estate lease was determined to be in
line with the useful life of the Moyle Interconnector, which aligns with the non-cancellable period of the lease used to
determine the lease liability.
(d) Contractual arrangements under EU market coupling
Revenue, which will vary dependent on market circumstances, is recorded in line with the services provided to the system
operators in each financial year. The movement of power across the interconnector is effectively predefined by the market
rules and will move from the lower priced market to the higher priced market in accordance with a schedule provided by
the System Operator in Northern Ireland (SONI), unless this is inconsistent with a system support contract in which case
the power will move for a short period in line with separate contractual arrangements with National Grid ESO or SONI. The
Group does not sell directly to market participants, rather its base entitlement is to the value of the power flown across
the interconnector, which is the difference in market price between the two markets multiplied by the amount of power
moved after adjusting for losses. The Group is obliged to make available to Eirgrid and SONI, operating as a body known as
SEMOpx, the full capacity, subject to restrictions imposed by the System Operators, of the Interconnector for this
purpose. SEMOpx make the capacity available in intraday auctions bilaterally coupled with the GB market. The scheduling
of the physical movement of power across the interconnector in the majority of conditions is subject to the requirements
of the System Operators (albeit in accordance with pre-defined rules). The schedule is amended in line with defined
responses in certain conditions based upon independent contracts with National Grid ESO and SONI. The activities of the
interconnector are therefore subject to the requirements of Eirgrid, SONI and National Grid ESO for the majority of time,
however the Company is still exposed to the risks of financial loss from outages and to variations in revenue driven by the
power price differential between GB and Ireland. Revenue recognition is therefore aligned with the services provided to
the system operators in each period.
(e) Timing of receipts
Included within Group trade and other receivables is an amount of £20,212,000 (£11,095,000 non-current and £9,117,000
current) (2024: €23,666,000 plus €4,733,000 VAT (£20,241,000 Sterling equivalent plus £4,042,000 VAT), all current), in
relation to capacity constraints imposed against Moyle Interconnector which were the subject of a legal dispute.
Arbitration proceedings have since confirmed Moyle’s entitlement to this revenue and it has been agreed that the
remaining debt and associated interest will be recovered in 12 monthly instalments over the period November 2025 to
October 2026. The quantum of each monthly payment is not known in advance as these are dependent on amounts
recovered through the tariff, however, judgement has been used to estimate the portion obtained in each month based on
historic profiles of income recovery through electricity tariffs.
Moyle Interconnector (Financing) plc
46
Notes to the financial statements for the year ended 31 March 2025
2a Revenue from contracts with customers
Moyle Interconnector Limited sells interconnector services including the rights to transmit electricity between Scotland
and Northern Ireland along with ancillary services to support the electricity networks in Northern Ireland and Great Britain.
All revenue is generated within the United Kingdom. Revenue is shown net of value-added tax and rebates and after
eliminating income within the group. Revenue is recognised in accordance with the terms of the licence issued by the
regulatory authority, namely in line with the applicable costs incurred by the Group over the same period.
The Group’s accrued income meets the definition of a contract asset. The Group’s accrued income is disclosed in note 12.
Disaggregation of revenue
2025
2024
Group
£’000
£’000
Commercial revenue:
Revenue from power transfers
69,543
40,125
Revenue from power transfers which were constrained
338
155
System services
10,364
15,028
Capacity market
15,967
11,988
Total commercial revenue
96,212
67,296
Other
14
121
Revenue
96,226
67,417
Tariff revenue rebate
(3,638)
(3,008)
Net revenue
92,588
64,409
As noted on page 45, in critical accounting judgments and estimates section (d), the scheduling of the physical flow of
power on the Moyle Interconnector is subject to the requirements of the system operators. The market arrangements are
enduring and have no end date. The resulting revenue from power transfers is variable income depending upon the
difference in market spreads. The Group’s system services and capacity market revenue split by customer (for those
exceeding 10% of total revenues) is as follows:
2025
2024
£’000
£’000
Customer A
21,060
23,694
The tariff revenue rebate relates to a rebate of revenue previously recovered through the tariff mechanism in order to
reduce costs for energy consumers.
Commercial revenue includes £70.3m (2024: £40.4m) which was receivable in Euro.
Moyle Interconnector (Financing) plc
47
Notes to the financial statements for the year ended 31 March 2025
2b Operating expenses
Group
2025
£’000
2024
£’000
Staff costs (note 3)
683
755
Depreciation and amortisation (excluding right-of-use
assets)
7,426
Depreciation of right-of-use assets
122
114
Amortisation of deferred government grants (note 20)
(987)
(987)
Auditors’ remuneration:
Audit of these financial statements
19
18
Audit of financial statements of parent and subsidiary
26
22
Other services
15
15
(Reversal of)/allowance for doubtful debt
(20,241)
20,241
Maintenance and insurance
4,893
4,900
Other expenses
9,389
8,485
Total operating expenses
1,345
40,963
Other expenses include a fuel poverty donation of £4.0m (2024: £3.25m) and costs incurred for rates and group
overheads, together with administrative expenses.
3 Staff numbers and costs
2025
2024
Group
£’000
£’000
Wages and salaries
524
608
Social security costs
64
74
Pension costs
95
73
683
The average monthly number of employees during the year (including Directors holding contracts of service with the
recharged in respect of employees of the wider Mutual Energy Group which are directly attributable to the Moyle
Interconnector Financing Group and does not include Directors’ emoluments which are disclosed separately below. The
Parent Company and its subsidiary undertaking have no directly employed staff of their own.
The Group’s Directors were not remunerated for their services to the Company but instead received emoluments for their
services to the Mutual Energy Group of companies. The portion of these costs recharged to the Moyle Interconnector
Financing Group are set out below:
2025
2024
£’000
£’000
Directors’ emoluments
Aggregate emoluments
322
The portion of remuneration and amounts receivable under long term incentive schemes of the highest paid director
attributable to the Group was £179,000 (2024: £159,000), of which £9,000 (2024: £9,000) related to company
contributions to a defined contribution pension scheme.
Moyle Interconnector (Financing) plc
48
Notes to the financial statements for the year ended 31 March 2025
4 Finance income and expense
2025
2024
Group
£’000
£’000
Finance expenses:
Borrowings (including borrowing fees)
4,034
Bank charges
86
86
Lease interest expense
41
42
Foreign exchange loss
97
616
Unwinding of discount on decommissioning provision (note 18)
128
120
Finance expenses
4,386
Finance income:
Short-term bank deposits
(7,906)
(5,633)
Other interest income
(2,171)
(14)
Finance income
(10,077)
Finance (income)/expenses – net
(5,691)
Other interest income includes interest earned on unpaid trade and other receivables.
5 Taxation
Recognised in profit and loss
2025
2024
Group
£’000
£’000
Current income tax:
Current tax on profits for the year
12,282
2,267
Group relief claimed
12,282
2,969
Adjustments in respect of prior years
15
46
Total current income tax
24,579
5,282
Deferred income tax:
Origination and reversal of temporary differences
(169)
(50)
Adjustments in respect of prior years
-
(42)
Total deferred income tax (note 19)
(169)
(92)
Tax charge
24,410
Moyle Interconnector (Financing) plc
49
Notes to the financial statements for the year ended 31 March 2025
5 Taxation (continued)
The tax charge in the statement of profit and loss for the year is higher than the standard rate of corporation tax in the UK
of 25% (2024: 25%). The differences are reconciled below:
Reconciliation of effective tax rate
2025
£’000
2024
£’000
Profit before tax
97,534
20,528
Tax calculated at the UK standard rate of corporation tax of 25% (2024: 25%)
24,384
5,132
Effects of:
Tax exempt revenue
-
54
Expenses not deductible for tax
11
-
Adjustments in respect of prior years
15
4
Tax charge
24,410
5,190
Future tax changes
The corporation tax rate is 25% for companies generating taxable profits of more than £250,000. Deferred tax has been
calculated at the rate at which the balances are expected to be settled, based on tax rates that have been substantively
enacted at the balance sheet date (see note 19).
6 Loss attributable to members of the Parent Company
As permitted by Section 408 of the Companies Act 2006, the Parent Company’s statement of profit and loss has not been
included in these financial statements. The profit dealt with in the financial statements of the Parent Company is
£26,914,000 (2024: £65,000 loss).
Moyle Interconnector (Financing) plc
50
Notes to the financial statements for the year ended 31 March 2025
7 Property, plant and equipment
Interconnector
assets
Control
equipment
Plant &
Machinery
Assets under
construction
Right-of-
use
assets
Total
Group
£’000
£’000
£’000
£’000
£’000
£’000
Cost
At 1 April 2023
176,161
26,089
192
-
2,683
205,125
Movement in decommissioning
provision
(277)
-
-
-
-
(277)
Additions
-
-
-
424
47
471
Disposals
-
-
-
-
(37)
(37)
At 31 March 2024
175,884
26,089
192
424
2,693
205,282
Movement in decommissioning
provision
(365)
-
-
-
-
(365)
Additions
-
274
-
586
174
1,034
Transfer into Use
-
424
-
(424)
-
-
At 31 March 2025
175,519
26,787
192
586
2,867
205,951
Accumulated depreciation
At 1 April 2023
100,038
870
18
-
546
101,472
Depreciation charge for the year
3,992
1,734
13
-
114
5,853
Disposals
-
-
-
-
(37)
(37)
31 March 2024
104,030
2,604
31
-
623
107,288
Depreciation charge for the year
3,991
1,761
13
-
122
5,887
At 31 March 2025
108,021
4,365
44
-
745
113,175
Net book value
At 31 March 2025
67,498
22,422
148
586
2,122
92,776
At 31 March 2024
71,854
23,485
161
424
2,070
97,994
At 1 April 2023
76,123
25,219
174
-
2,137
103,653
Depreciation expense of £5,887,000 (2024: £5,853,000) has been charged fully to operating expenses.
The borrowings of the Company are secured on the property, plant and equipment of the Group.
As noted on page 45, the activities of the interconnector asset set out above are subject to the requirements of the system
operators under the overarching market arrangements.
Assets under construction relates to new solar panels and upgrade of uninterruptible power supplies. In 2024 assets
under construction related to control equipment. At 31 March 2025 the Group had capital commitments of £804,000
Moyle Interconnector (Financing) plc
51
Notes to the financial statements for the year ended 31 March 2025
8 Intangible assets
Licences
Group
£’000
Cost
At 1 April 2023, 31 March 2024 and at 31 March 2025
56,477
Accumulated amortisation
At 1 April 2023
33,220
Amortisation for the year
1,661
At 31 March 2024
34,881
Amortisation for the year
1,661
At 31 March 2025
36,542
Net book value
At 31 March 2025
19,935
At 31 March 2024
21,596
At 1 April 20223
23,257
Licences include intangible assets acquired through business combinations. Licences have been granted for a minimum
of 35 years. The Parent Company has no intangible assets.
The Group has concluded that these assets have a remaining useful economic life of 12 years as at 31 March 2025 (13
years as at 31 March 2024). Amortisation expense of £1,661,000 (2024: £1,661,000) has been fully charged to operating
9 Investment in subsidiary undertaking
Company
£’000
Cost and carrying amount
At 1 April 2023, 31 March 2024 and at 31 March 2025
20,950
Investments in subsidiaries are recognised initially at fair value and subsequently measured at cost less impairment.
The Company’s subsidiary undertaking which is incorporated in Northern Ireland and whose registered address is First
Floor, The Arena Building, 85 Ormeau Road, Belfast, BT7 1SH, is:
Name of company
Holding
Proportion
held
Nature of
Business
Moyle Interconnector
Limited
Ordinary shares
100%
Operation of Moyle Interconnector
Moyle Interconnector (Financing) plc
52
Notes to the financial statements for the year ended 31 March 2025
10 Other investments
Other
investments
Group
£’000
Cost and carrying amount
At 1 April 2023, 31 March 2024 and at 31 March 2025
212
Other Investments represent an amount the subsidiary invested in a 5% share in Joint Allocation Office (JAO) S.A., at a
cost of £212,000. The investments are held at fair value which equates to the cost paid.
11 Trade and other receivables (non-current)
Group
Company
2025
2024
2025
2024
£’000
£’000
£’000
£’000
Loans due from subsidiary undertaking
-
-
45,626
50,590
Trade receivables due from fellow subsidiary undertaking
16
13
-
-
Trade receivables due from subsidiary undertaking
-
-
12,936
-
Trade receivables
11,095
-
-
-
Other receivables
1,172
-
-
-
12,283
13
58,562
50,590
Loans due from subsidiary undertaking (current assets) (note
12)
-
-
(6,514)
(6,530)
Trade receivables due from fellow subsidiary undertaking
(current assets) (note 12)
(16)
(13)
-
-
Trade receivables due from subsidiary undertaking (current
assets) (note 12)
-
-
(12,936)
-
12,267
-
39,112
44,060
All of the Company’s non-current loans are denominated in Sterling. None of the Company’s loans are past due. The
Company has no history of default in respect of its loans. The maximum exposure to credit risk at the reporting date is the
carrying value of each class of receivable mentioned above. The fair value of the Company’s loans is £48,859,000 (2024:
£55,219,000). This fair value has been calculated by discounting the future contracted interest cash flows using a discount
rate of 1.67% (2024: 1.37%) that reflects the maturity profile of the Company’s loans. If the discount rate had been 2.00%
the fair value would have been £48,258,000. In calculating fair value, RPI interest is excluded from the loan’s future cash
flows and excluded from the related discount rate. The current effective interest rate, inclusive of interest and Retail Price
Index indexation, for the loan is 3.32%.
12 Trade and other receivables (current)
Group
Company
2025
2024
2025
2024
£’000
£’000
£’000
£’000
Trade receivables
9,463
152
-
-
Trade receivables due from related parties (note 22)
16
13
12,936
-
Loans due from subsidiary undertakings (note 22)
-
-
6,514
6,530
Prepayments
2,757
2,307
79
87
Accrued income
5,370
5,372
-
-
Other receivables
2,321
5,360
1
1
VAT receivable
-
2
2
2
19,927
13,206
19,532
6,620
Moyle Interconnector (Financing) plc
53
Notes to the financial statements for the year ended 31 March 2025
12 Trade and other receivables (current) (continued)
All of the Group’s and Company’s trade and other receivables are denominated in Sterling with the exception of certain
balances receivable in Euro as a result of Euro sales contracts as follows: i) trade receivables includes €396,000 due
(£331,000 Sterling equivalent) (2024: includes €178,000 due (£152,000 Sterling equivalent)); and ii) accrued income
includes €1,559,000 due (£1,304,000 Sterling equivalent) (2024: includes €865,000 due (£739,000 Sterling equivalent));
and iii) other receivables includes €8,000 (£7,000 Sterling equivalent) (2024: €2,000 (£2,000 Sterling equivalent).
Included within Group trade receivables is £20,212,000 (£11,095,000 non-current and £9,117,000 current) (2024:
€23,666,000 plus €4,733,000 VAT (£20,241,000 Sterling equivalent plus £4,042,000 VAT), all current) which is due in
relation to capacity constraints imposed against Moyle Interconnector Limited during the period from September 2021 to
March 2024. In the prior year an allowance of £24,283,000 was made against this receivable, but this was reversed
following a favourable outcome from arbitration. The VAT portion has since been recovered, with the remainder of the
balance to be recovered by October 2026.
Apart from those balances identified in the paragraph above, none of the remaining Group’s or Company’s trade and other
receivables are impaired or past due and no impairment losses on trade and other receivables were recognised in profit
and loss in the year (2024: £nil). No provisions were deemed to be required at the reporting date as the Group and
Company has no history of default in respect of its trade and other receivables and no current expectation of such.
The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivable mentioned
above. The fair value of the Group’s and Company’s trade and other receivables is not materially different to their carrying
values.
Loans due from subsidiary undertakings are unsecured and carry interest at a rate of 3.52% (2023: 3.52%) and are
receivable within 12 months. Trade receivables due from fellow subsidiaries are unsecured, interest free and are
13 Cash and cash equivalents
Group
Company
2025
2024
2025
2024
£’000
£’000
£’000
£’000
Cash and cash equivalents
184,297
126,026
151
150
Cash and cash equivalents earn interest at a range from Bank of England base rate less 3.25% to Bank of England base
rate plus 0.05%, or nil if higher. During the year some cash and cash equivalents were placed on deposits with maturities
great than 90 days but less than 364 days. These financial assets earned interest at a range from Bank of England base
rate less 0.27% to Bank of England base rate plus 0.80%. None of the cash and cash equivalents are restricted.
Moyle Interconnector (Financing) plc
54
Notes to the financial statements for the year ended 31 March 2025
14 Share capital
2025
2024
Group and Company
£’000
£’000
Allotted, called up and fully paid
150,000 ordinary A shares of £1 each
150
150
50,000 ordinary B shares of £1 each
50
50
200
200
The holders of ordinary A shares are entitled to receive dividends, as declared from time to time by the Company and are
entitled to one vote per share at meetings of the Company. The holders of ordinary B shares are not entitled to receive
dividends but are entitled to one vote per share at meetings of the Company.
15 Retained earnings
Group
£’000
At 1 April 2023
145,051
Total comprehensive income for the year
15,338
At 31 March 2024
160,389
Total comprehensive income for the year
73,124
Dividends paid
(1,650)
At 31 March 2025
231,863
Company
£’000
At 1 April 2023
(68)
Total comprehensive expense for the year
(65)
At 31 March 2024
(133)
Total comprehensive income for the year
26,914
Dividends paid
(1,650)
At 31 March 2025
Moyle Interconnector (Financing) plc
55
Notes to the financial statements for the year ended 31 March 2025
16 Interest bearing loans and borrowings
Group
Company
2025
2024
2025
2024
£’000
£’000
£’000
£’000
Non-current
2.9376% Index linked guaranteed secured bond
46,629
52,492
46,629
52,492
Lease Liabilities
1,930
1,911
-
-
Total Non-current
48,559
54,403
46,629
52,492
Current
2.9376% Index linked guaranteed secured bond
7,739
7,750
7,739
7,750
Lease liabilities
113
104
-
-
Total Current
7,852
7,854
7,739
7,750
Total borrowings
56,411
62,257
54,368
60,242
Changes in liabilities from financing activities
Group
Company
Loans and
borrowings
Lease
liabilities
Total
Loans and
borrowings
£’000
£’000
£’000
£’000
Balance at 1 April 2023
62,633
2,063
64,696
62,633
Changes from financing cash flows
Repayment of borrowings
(3,848)
-
(3,848)
(3,848)
Lease payments
-
(137)
(137)
-
Interest paid
(6,244)
-
(6,244)
(6,244)
Total changes from financing cash
flows
(10,092)
(137)
(10,229)
(10,092)
Other changes
Lease addition
47
47
-
Lease interest expense
-
42
42
-
Interest and indexation expense
7,701
-
7,701
7,701
Total non cash changes
7,701
89
7,790
7,701
Balance at 31 March 2024
60,242
2,015
62,257
60,242
Changes from financing cash flows
Repayment of borrowings
(3,686)
-
(3,686)
(3,686)
Lease payments
-
(187)
(187)
-
Interest and indexation paid
(6,222)
-
(6,222)
(6,222)
Total changes from financing cash
flows
(9,908)
(187)
(10,095)
(9,908)
Other changes
Lease revaluation
-
174
174
-
Lease interest expense
-
41
41
-
Interest and indexation expense
4,034
-
4,034
4,034
Total non cash changes
4,034
215
4,249
4,034
Balance at 31 March 2025
54,368
2,043
56,411
54,368
Moyle Interconnector (Financing) plc
56
Notes to the financial statements for the year ended 31 March 2025
16 Interest bearing loans and borrowings (continued)
The 2.9376% guaranteed secured bond 2033 was issued to finance the acquisition of Moyle Interconnector Limited and to
repay indebtedness owed to members of Viridian Group PLC and are indexed linked to the Retail Price Index. The bond is
listed on the London Stock Exchange and is secured by fixed and floating charges over all the assets of the Group, and
also by way of an unconditional and irrevocable financial guarantee given by Assured Guaranty (Europe) Limited as to
scheduled payments of principal and interest, excluding default interest. In return for this guarantee, every six months the
Group pays an index linked fee of 0.125% of the outstanding balance of the bond. The fair value of the bond is £57,293,000
(2024: £64,622,000). This fair value has been calculated by discounting the future contracted interest cash flows using a
discount rate of 1.67% (2024: 1.37%) that reflects the maturity profile of the Group’s and the Company’s borrowings.
Increasing/decreasing the discount rate by 0.5% would result in a fair value of £56,239,000/£58,379,000 respectively. In
calculating fair value, RPI interest is excluded from the bond’s future cash flows and excluded from the related discount
rate. The current effective interest rate, inclusive of interest and Retail Price Index indexation, for the bond is 2.89% (2024:
2.91%). The undiscounted maturity profile of the Group’s and the Company’s borrowings are shown in note 23.
Lease liabilities represent future payments in respect of Crown Estate leases (see note 17).
17 Leases
The Group holds a Crown Estate lease, entered into in 2001, which gives exclusive right to use and maintain the cables
which are on or under the seabed. The lease runs to 31 March 2100, with a right to cancel with 12 months’ notice from 31
March 2031. Lease payments are subject to review in 2027 and 2057. The lease provides for uplifts on rent payments every
5 years in line with changes in the Retail Prices Index. There are no extension options for any period after 31 March 2100.
The Group is restricted from entering into any sub-lease arrangements in relation to this lease.
The Group leases wayleaves which are short-term and has elected not to recognise right-of-use assets and lease
liabilities for these leases.
Information about leases for which the Group is a lessee is presented below.
Right-of-use assets
The right-of-use assets, as presented in property, plant and equipment (see note 7), relate to the Crown Estate lease
noted above.
Amounts recognised in the profit or loss
The following amounts have been recognised in profit or loss for which the Group is a lessee:
Group
2025
£’000
2024
£’000
Depreciation expense in respect of right-of-use assets
122
114
Lease liabilities interest expense/(income)
41
42
Expenses relating to short-term leases
1
8
Amounts recognised in statement of cash flows
Group
2025
£’000
2024
£’000
Total cash outflow for leases
187
137
Moyle Interconnector (Financing) plc
57
Notes to the financial statements for the year ended 31 March 2025
18 Provisions
Decommissioning
provision
Group
£’000
At 1 April 2023
3,117
Cost adjustments through property, plant and equipment
(277)
Unwinding of discount during the year
120
At 31 March 2024
2,960
Cost adjustments through property, plant and equipment
(365)
Unwinding of discount during the year
128
At 31 March 2025
2,723
Provision has been made for expenditure to be incurred in meeting the expected costs arising from the future
decommissioning of the Interconnector in 17 years, at the end of its useful economic life. This provision is expected to be
utilised within 17 years. The provision represents the present value of the current estimated costs of dismantling the
connections to the main electricity grids in Scotland and Northern Ireland. The provision has been discounted at a rate of
5.13% (2024: 4.34%).
19 Deferred tax liabilities
The gross movement on the deferred tax liability is as follows:
Group
£’000
At 1 April 2023
15,614
Recognised in profit and loss
(92)
At 31 March 2024
15,522
Recognised in profit and loss
(169)
At 31 March 2025
15,353
Movement in deferred tax liabilities during the year is as follows:
Accelerated
capital
allowances
Valuation
of
intangible
assets
Total
Group
£’000
£’000
£’000
At 1 April 2023
9,799
5,815
15,614
Profit and loss credit for the year
323
(415)
(92)
At 31 March 2024
10,122
5,400
15,522
Profit and loss charge for the year
246
(415)
(169)
At 31 March 2025
10,368
4,985
Moyle Interconnector (Financing) plc
58
Notes to the financial statements for the year ended 31 March 2025
20 Government grant
Group
£’000
At 1 April 2023
18,751
Amortised during the year (note 2b)
(987)
At 31 March 2024
17,764
Amortised during the year (note 2b)
(987)
At 31 March 2025
16,777
Moyle Interconnector Limited, a subsidiary of the Group, was awarded a government grant in 1999 in respect of the costs
of construction of the project. All obligations in respect of this grant have now been met. The current portion of the
21 Trade and other payables
Group
Company
2025
2024
2025
2024
£’000
£’000
£’000
£’000
Trade payables
684
380
-
-
Trade payables due to related parties (note 22)
12,748
3,413
-
11,454
Accruals
1,442
2,542
45
VAT
29
707
-
-
Other payables
170
1,938
-
-
15,073
8,980
45
11,471
All of the Group’s and Company’s trade and other payables are denominated in Sterling with the exception of certain
balances payable in Euro in relation to Euro sales contracts as follows: i) Trade payables includes €18,000 owed (£15,000
sterling equivalent) (2024: €nil owed (£nil sterling equivalent)) ii); and other payables includes €nil owed (£nil sterling
equivalent) (2024: includes €2,067,000 owed (£1,768,000 sterling equivalent)).
The fair value of trade and other payables is not materially different from their carrying value.
Trade payables due to related parties are unsecured, interest free and are repayable on demand.
Included in accruals are capital creditors of £118,000 (2024: £1,274,000).
Moyle Interconnector (Financing) plc
59
Notes to the financial statements for the year ended 31 March 2025
22 Related party transactions
The ultimate controlling party of the Group are the members of Mutual Energy Limited.
During the year the Group entered into transactions, in the ordinary course of business, with related parties.
Transactions entered into, and balances outstanding at 31 March with related parties, are as follows:
Value of transaction
2025
2024
Group
Nature of transaction
£’000
£’000
Parent undertakings
Charges payable
(2,623)
(2,313)
Fellow subsidiary undertakings
Survey and security costs payable
(161)
(159)
Fellow subsidiary undertakings
Group relief claimed
(12,327)
(2,969)
Value of transaction
2025
2024
Company
Nature of transaction
£’000
£’000
Subsidiary undertaking
Interest receivable
4,101
7,752
Parent undertakings
Dividend payable
(1,650)
-
Subsidiary undertaking
Dividend receivable
26,851
-
Subsidiary undertaking
Receipts in respect of investing
activities
9,900
10,088
Fellow subsidiary undertakings
Group relief claimed
4
(36)
Subsidiary undertaking
Group relief claimed
64
-
Key management compensation
Key management personnel are considered to be the Directors, being those persons having authority and responsibility
for planning, directing and controlling the activities of the Group, both directly and indirectly. Key management
Amount owed (to)/from
related party
2025
2024
Group
£’000
£’000
Fellow subsidiary undertakings – current assets
16
13
Parent undertakings – current liabilities
(397)
(411)
Fellow subsidiary undertakings – current liabilities
(12,351)
(3,002)
Amount owed (to)/from
related party
2025
2024
Company
£’000
£’000
Subsidiary undertakings – non-current assets
39,112
44,060
Subsidiary undertakings – current assets
19,446
6,530
Fellow subsidiary undertakings – current assets
4
-
Fellow subsidiary undertakings – current liabilities
-
(36)
Subsidiary undertakings – current liabilities
-
(11,417)
Moyle Interconnector (Financing) plc
60
Notes to the financial statements for the year ended 31 March 2025
23 Financial instruments
The Group and Company’s financial instruments are classified as follows:
Assets and liabilities
Category of financial instrument
Other investments
Equity instruments at fair value through other
comprehensive income
Trade and other receivables
Financial assets at amortised cost
Cash and cash equivalents
Financial assets at amortised cost
Interest bearing loans and borrowings
Financial liabilities at amortised cost
Trade and other payables
Financial liabilities at amortised cost
The Group’s and the Company’s contractual undiscounted cash flows (including principal and interest payments) of its
financial liabilities are as follows:
At 31 March 2025
Within
1 year
1-2
years
2-3
years
3-4
years
4-5
years
More
than 5
years
Total
Group
£’000
£’000
£’000
£’000
£’000
£’000
£’000
2.9376% bond
9,348
9,001
8,393
8,355
7,251
18,696
61,044
Lease liabilities
113
115
118
118
112
1,467
2,043
Trade and other
payables*
15,044
-
-
-
-
-
15,044
24,505
9,116
8,511
8,473
7,363
20,163
78,131
At 31 March 2024
Within
1 year
1-2
years
2-3
years
3-4
years
4-5
years
More
than 5
years
Total
Group
£’000
£’000
£’000
£’000
£’000
£’000
£’000
2.9376% bond
9,543
9,027
8,692
8,105
8,068
25,057
68,492
Lease liabilities
104
106
108
111
111
1,475
2,015
Trade and other
payables*
8,273
-
-
-
-
-
8,273
17,920
9,133
8,800
8,216
8,179
26,532
78,780
At 31 March 2025
Within
1 year
1-2
years
2-3
years
3-4
years
4-5
years
More
than 5
years
Total
Company
£’000
£’000
£’000
£’000
£’000
£’000
£’000
2.9376% bond
9,348
9,001
8,393
8,355
7,251
18,696
61,044
Trade and other
payables
45
-
-
-
-
-
45
9,393
9,001
8,393
8,355
7,251
18,696
61,089
At 31 March 2024
Within
1 year
1-2
years
2-3
years
3-4
years
4-5
years
More
than 5
years
Total
Company
£’000
£’000
£’000
£’000
£’000
£’000
£’000
2.9376% bond
9,543
9,027
8,692
8,105
8,068
25,057
68,492
Trade and other
payables
11,471
-
-
-
-
-
11,471
21,014
9,027
8,692
8,105
8,068
25,057
79,963
Moyle Interconnector (Financing) plc
61
Notes to the financial statements for the year ended 31 March 2025
23 Financial instruments (continued)
Financial risk management
Other price risks
The Group operates the interconnector which links the electricity transmission systems of Northern Ireland and Scotland
under a licence agreement with the Northern Ireland Authority for Utility Regulation. The Group earns its revenue from
providing capability to transfer power between two markets, selling services to grid operators and from payments for making
the asset available. In the event that the Group does not earn sufficient revenues to cover its operating expenses, interest on
borrowings and repayment of borrowings, the Group’s licence allows the Group to make a call on its customers for any
shortfall. Accordingly, the Group has limited financial risk.
The Group’s interest rate risk arises from its long-term borrowings. These borrowings are index linked to the Retail Price
Index and expose the Company to interest rate risk. A change in the Retail Price Index by 1% would have
increased/decreased finance expenses, profit and equity during the year by £615,000 (2024: £645,000). A recurring
annual retail price index of 2% would increase the total repayments on the 2.9376% bond by £11,388,000 over the
remaining lifetime of the bond, which would be recovered from customers under the Group’s license. The Group does not
need to actively manage its exposure to interest rate risk as a result of its licence agreement mentioned in the preceding
paragraph. The Group issued its long-term borrowings to refinance its transmission assets at the lowest possible rates in
order to reduce the costs of transmission to the consumers of Northern Ireland.
(b) Credit risk
The Group has limited exposure to credit risk as its customers are high profile electricity suppliers, who provide
designated levels of security by way of parent company guarantees or letters of credit.
Included within Group trade and other receivables is an amount of £20,212,000 (£11,095,000 non-current and £9,117,000
current) (2024: €23,666,000 plus €4,733,000 VAT (£20,241,000 Sterling equivalent plus £4,042,000 VAT), all current), in
relation to capacity constraints imposed against Moyle Interconnector which were the subject of a legal dispute.
Arbitration proceedings have since confirmed Moyle’s entitlement to this revenue and a settlement plan has been agreed
with the remaining debt and associated interest expected to be recovered in full by October 2026.
Apart from those balances identified in the paragraph above, the Group’s trade and other receivables, including amounts
due from related parties, are not impaired or past due and management does not expect any losses from non-
performance by its customers.
(c) Liquidity risk
As a result of the option under the Group’s licence agreement to call on customers in the event of any liquidity shortfall
the Group has limited liquidity risk. The Group holds significant cash reserves which are only placed on deposit to the
extent that these funds are not expected to be required. Should additional funds be required, for example if additional
costs arise, counterparties default on payment, or revenue is lower than expected, these deposits can be returned. A
Capital risk management
The Group has no obligation to increase member’s funds as the company’s ultimate parent undertaking is a company
limited by guarantee. The company’s management of its borrowings and credit risk is referred to in the preceding
paragraphs.
Moyle Interconnector (Financing) plc
62
Notes to the financial statements for the year ended 31 March 2025
24 Ultimate parent undertaking
The immediate parent undertakings are Moyle Holdings No. 2 Limited , a company incorporated in Northern Ireland who
owns 150,000 A shares and Moyle Holdings Limited, a company incorporated in Northern Ireland who owns 50,000
ordinary B shares.
The ultimate parent undertaking and the largest group to prepare consolidated accounts in which the entity is included is
prepared and are available to the public from First Floor, The Arena Building, 85 Ormeau Road, Belfast, BT7 1SH
25 Subsequent events
There are no events after the reporting date requiring adjustment or disclosure in the financial statements.
