How we helped increase future rental income for a business with sustainability at its heart.

Client

Dewlay cheesemakers

Highlights

The results for our client were:

• Seven year back payment of income

• Rental income increased by 20% in 2017

• Future rental income set to increase by 12% per year.

Why did they come to us?

Third generation owners Nick and Richard Kenyon, of family cheesemakers Dewlay, in Lancashire, pride themselves on running a sustainable business (and making great cheese).

Dewlay had been working successfully with a wind turbine operator for many years and were happy with the comprehensive information that their energy company provided. However, renewable energy is a new industry and constantly changing price tariffs, they found it difficult to be sure that all revenue sources were being captured. They asked us to help by carrying out one of our specialist audits and analysis of their lease agreement.

Before the review, we virtually never discussed the royalty with the turbine owner. This will definitely change now that we have a better understanding. Working with Accounting for Energy was extremely easy. They are experts in their field and are in no way pushy or condescending.”

-Ben Arden, Financial Controller

What was our approach?

Dewlay were happy with the comprehensive information that their wind turbine operator provided, who they have successfully worked with for many years.

Understandably, Dewlay wanted to protect their relationship with their energy company, so we worked hard alongside them to make sure that was the case. Communication was vital to this project, so we made sure we updated Nick and Richard regularly throughout our work.

The site operator was helpful and gave us the information we needed. Nick and Richard were able to carry on making great cheese, while we completed our historical audit with clear findings that they could present to their energy company.

Our audit report gave the Kenyon brothers a deeper understanding of the wind farm’s historical performance and contribution to the local environment, while our detailed audit has ensured they are getting the full benefits from the energy being produced on their land.

I would recommend Accounting for Energy because they are clearly experts in this area, and they were good to work with. It was an easy decision to get them on board because we really didn’t have the expertise or the time to be trawling through the lease and power purchase agreement.”

-Nick Kenyon, CEO

Key Results

• We secured a seven year back payment income on behalf of Dewlay – the equivalent to an entire year of rental income.

• As a direct result of our review, the company’s rental income also increased by 20% in 2017, and by 30% during one of the seven years we reviewed.

• What’s more, Dewlay’s rental income is now set to increase by 12% per year.

• Our lease agreement analysis and historical audit will assist Dewlay to maximise the future benefits of GWDL wind farm and gave them a deeper understanding of the sites historical performance and contribution to the local environment.

• Upon the request of Dewlay’s CEO Nick, we were able to calculate their cost savings for every turn of the turbine.

Environmental benefits

The dairy industry is known for its high energy consumption but forward-thinking cheesemakers, Dewlay have sustainability at the heart of their business were delighted to help them maximise the benefits from their renewables.

We are continuously looking to improve our environmental sustainability credentials and our turbine enables us to reduce the high energy bills in what is an energy intensive industry, as well reduce our business carbon footprint. It has also given us some price stability in what is a volatile energy market.”

-Nick Kenyon, CEO

It was great to work with the Dewlay team. To read our ‘Spotlight on….’ Interview with Nick, click the icon below: