Village Heating Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 03748060 (England and Wales)

Unaudited Financial Statements for the Year Ended 31 May 2019

for

Village Heating Limited

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

4

DIRECTORS:

D Kelly

Mrs P H Varsani

REGISTERED OFFICE:

2nd Floor

Hygeia House

66 College Road

Harrow

Middlesex

HA1 1BE

REGISTERED NUMBER:

03748060 (England and Wales)

ACCOUNTANTS:

Lawrence Grant

Chartered Accountants

and Reporting Accountants

2nd Floor

Hygeia House

66 College Road

Harrow

Middlesex

HA1 1BE

FIXED ASSETS

Tangible assets

4

63,645

91,062

CURRENT ASSETS

Stocks

119,627

126,402

Debtors

5

1,216,339

1,138,139

Cash at bank and in hand

430,614

143,582

1,766,580

1,408,123

CREDITORS

Amounts falling due within one year

6

1,335,736

1,054,385

NET CURRENT ASSETS

430,844

353,738

TOTAL ASSETS LESS CURRENT LIABILITIES

494,489

444,800

CREDITORS

Amounts falling due after more than one year

7

(9,899

)

(15,066

)

PROVISIONS FOR LIABILITIES

(1,782

)

(5,143

)

NET ASSETS

482,808

424,591

CAPITAL AND RESERVES

Called up share capital

22,000

22,000

Capital redemption reserve

20,000

20,000

Retained earnings

440,808

382,591

SHAREHOLDERS' FUNDS

482,808

424,591

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 May 2019.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 May 2019 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors on 14 November 2019 and were signed on its behalf by:

D Kelly - Director

1.	STATUTORY INFORMATION

Village Heating Limited is a private company, limited by shares , registered in England and Wales. The

company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is measured at the fair value of the consideration received or receivable from net invoiced sales of

goods and services, excluding value added tax. The income is recognised when a sales invoice is raised once the

services have been provided. An adjustment is made at the year-end for accrued income for all services carried

out to the year but invoiced after the year end.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

15% reducing balance

Fixtures and fittings

-

15% reducing balance

Motor vehicles

-

20% reducing balance

Computer equipment

-

Straight line over 25 years

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow

moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to

the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the

statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from

those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that

have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the

timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they

will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held

under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases

are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element

of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the

lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to profit or loss in the period to which they relate.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement,

as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that

evidences a residual interest in the assets of the company after deducting all of its liabilities.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 66 (2018 - 58 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Motor

Computer

machinery

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 June 2018

97,561

23,616

278,456

97,553

497,186

Additions

4,982

-

-

890

5,872

Disposals

-

-

(149,044

)

-

(149,044

)

At 31 May 2019

102,543

23,616

129,412

98,443

354,014

DEPRECIATION

At 1 June 2018

79,209

19,264

216,729

90,922

406,124

Charge for year

3,500

653

9,367

4,874

18,394

Eliminated on disposal

-

-

(134,149

)

-

(134,149

)

At 31 May 2019

82,709

19,917

91,947

95,796

290,369

NET BOOK VALUE

At 31 May 2019

19,834

3,699

37,465

2,647

63,645

At 31 May 2018

18,352

4,352

61,727

6,631

91,062

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Motor

vehicles

£

COST

At 1 June 2018

and 31 May 2019

37,604

DEPRECIATION

At 1 June 2018

1,880

Charge for year

7,145

At 31 May 2019

9,025

NET BOOK VALUE

At 31 May 2019

28,579

At 31 May 2018

35,724

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade debtors

1,205,989

1,127,789

Other debtors

10,350

10,350

1,216,339

1,138,139

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Bank loans and overdrafts

142,680

-

Hire purchase contracts (see note 8)

5,165

5,164

Trade creditors

664,674

574,024

Taxation and social security

254,645

244,088

Other creditors

268,572

231,109

1,335,736

1,054,385

Village Heating Limited has an invoice discounting agreement with Royal Bank of Scotland, whereby 75% of the

invoices submitted in advance can be drawn against. The invoice discounting facility of Village Heating Limited

is £300,000.

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2019

2018

£

£

Hire purchase contracts (see note 8)

9,899

15,066

8.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2019

2018

£

£

Net obligations repayable:

Within one year

5,165

5,164

Between one and five years

9,899

15,066

15,064

20,230

Non-cancellable operating

leases

2019

2018

£

£

Within one year

19,386

53,932

Between one and five years

9,076

16,710

28,462

70,642

9.	SECURED DEBTS

The following secured debts are included within creditors:

2019

2018

£

£

Other creditors

84,475

180,404

In other creditors an amount of £84,475 (2018: £180,404) relates to amounts due to RBS Bank PLC, for invoice

discounting facilities provided by the bank.

The company has given a debenture dated 24 July 2008 to RBS Invoice Finance Limited, incorporating a fixed

and floating charge over all current and future assets of the company.

National Westminster Bank PLC has a first legal charge dated 8 December 2015 to the amount of £325,000 over

the Freehold property at 221-227 High Road, Harrow Weald, and it's associated assets.

10.	RELATED PARTY DISCLOSURES

At the year end date, the director Mrs. D Kelly had a credit balance of £7,406 (2018: £17,387) on his director's

current account. This is an interest free loan to the company and is shown within the other creditors.