Hewaswater Engineering Ltd - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 01957026 (England and Wales)

Unaudited Financial Statements

for the Year Ended 31 March 2019

for

HEWASWATER ENGINEERING LTD

Page

Company Information

1

Balance Sheet

2

to

3

Notes to the Financial Statements

4

to

10

DIRECTOR:

MEF James

SECRETARY:

E James

REGISTERED OFFICE:

Hewaswater

Sticker

St Austell

Cornwall

PL26 7LF

REGISTERED NUMBER:

01957026 (England and Wales)

ACCOUNTANTS:

Baldwins

Accountants

Unit A

Woodlands Court

Truro Business Park

Truro

Cornwall

TR4 9NH

FIXED ASSETS

Tangible assets

4

526,866

879,739

Investments

5

1

1

526,867

879,740

CURRENT ASSETS

Stocks

15,000

35,000

Debtors

6

1,111,072

1,172,593

Cash at bank and in hand

152,448

147,236

1,278,520

1,354,829

CREDITORS

Amounts falling due within one year

7

(491,648

)

(850,285

)

NET CURRENT ASSETS

786,872

504,544

TOTAL ASSETS LESS CURRENT LIABILITIES

1,313,739

1,384,284

CREDITORS

Amounts falling due after more than one year

8

(1,469

)

(17,222

)

PROVISIONS FOR LIABILITIES

11

(59,495

)

(70,050

)

NET ASSETS

1,252,775

1,297,012

CAPITAL AND RESERVES

Called up share capital

12

101

101

Retained earnings

1,252,674

1,296,911

SHAREHOLDERS' FUNDS

1,252,775

1,297,012

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

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

The director acknowledges his 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 Statement of Comprehensive Income has not been delivered.

The financial statements were approved by the director on 18 December 2019 and were signed by:

MEF James - Director

1.	STATUTORY INFORMATION

Hewaswater Engineering Ltd 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.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared in accordance with Financial Reporting Standard 102

Section 1A "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the

Companies Act 2006. The financial statements have been prepared under the historical cost

convention.

The financial statements are prepared in sterling which is the functional currency of the company.

Monetary amounts in these financial statements are rounded to the nearest pound sterling.

The director, after making enquiries and having considered the company's business, its financial plans

and the facilities available to finance the business, has a reasonable expectation that the company

has adequate resources to continue in operational existence for the foreseeable future. Accordingly,

the going concern basis is adopted in preparing the financial statements.

Preparation of consolidated financial statements

The financial statements contain information about Hewaswater Engineering Ltd as an individual

company and do not contain consolidated financial information as the parent of a group. The company

is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare

consolidated financial statements.

Related party exemption

The company has taken advantage of the exemption, available in Section 1A of Financial Reporting

Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to

disclose related party transactions with wholly owned subsidiaries within the group.

Turnover

Turnover represents the total invoice value, excluding value added tax, of sales made during the

period. Revenue in respect of services is recognised as the services are performed.

Long term contracts

Amounts recoverable on long term contracts which are included in debtors are stated at the net sales

value of the work done after provisions for contingencies and anticipated future losses on contracts,

less amounts received as progress payments on account. Excess progress payments are included in

creditors as payments received on account.

Tangible fixed assets

Tangible assets are initially measured at cost. Such costs include costs directly attributable to making

the asset capable of operating as intended. Subsequent to initial recognition, tangible assets such as

plant and machinery, fixtures and fittings and motor vehicles are stated at cost less accumulated

depreciation and accumulated impairment.

Tangible assets are depreciated as follows:

Land and buildings

-

Straight line over 25 years

Solar panels

-

Straight line over 25 years

Plant and machinery

-

10% Straight line

Fixtures, fittings and equipment

-

25% Straight line

Motor vehicles

-

25% Straight line

Impairment of fixed assets

At each reporting end date, the company reviews the carrying amounts of its tangible assets to

determine whether there is any indication that those assets have suffered an impairment loss. If any

such indication exists, the recoverable amount of the asset is estimated in order to determine the

extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of

an individual asset, the company estimates the recoverable amount of the cash-generating unit to

which the asset belongs.

The recoverable amount is the higher of fair value less costs to sell and value in use. 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 for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying

amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable

amount. An impairment loss is recognised immediately in profit or loss.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have

ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset

(or cash generating unit) is increased to the revised estimate of its recoverable amount, but so that the

increased carrying amount does not exceed the carrying amount that would have been determined

had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A

reversal of an impairment loss is recognised immediately in profit or loss.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost less impairment.

Stocks

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

obsolete and slow moving items.

Financial instruments

The company has elected to apply the provisions of Section 11 "Basic Financial Instruments" and

Section 12 "Other Financial Instruments" of FRS102 to all of its financial instruments.

Financial assets and liabilities are recognised in the company's statement of financial position when

the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are classified into specified categories. The classification depends on

the nature and purpose of the financial asset or liability and is determined at the time of recognition.

Basic financial assets, which include trade and other receivables, including staff loans and cash and

bank balances, are initially measured at transaction price including transaction costs and are

subsequently carried at amortised cost using the effective interest method, unless the arrangement

constitutes a financing transaction, where the transaction is measured at the present value of the

future receipts discounted at a market rate of interest.

Basic financial liabilities, which include trade and other payables are initially measured at transaction

price, unless the arrangement constitutes a financing transaction, where the debt instrument is

measured at the present value of the future payments discounted at a market rate of interest.

Financial liabilities are derecognised when, and only when, the company's obligations are discharged,

cancelled, or they expire.

Taxation

The tax expense represents the sum of the current tax expense and deferred tax expense. Current

tax assets are recognised when tax paid exceeds the tax payable.

Current and deferred tax is charged or credited to the profit or loss, except when it relates to items

charged or credited to other comprehensive income or equity, when the tax follows the transaction or

event it relates to and is also charged or credited to other comprehensive income, or equity.

Current tax assets and current tax liabilities as well as deferred tax assets and deferred tax liabilities

are offset, if and only if, there is a legally enforceable right to set off the amounts and the entity intends

either to settle on the net basis or to realise the asset and settle the liability simultaneously.

Current tax is based on taxable profit for the year. Taxable profit differs from total comprehensive

income because it excludes item of income or expense that are taxable or deductible in other periods.

Current tax assets and liabilities are measured using tax rates that have been enacted or substantively

enacted by the reporting period.

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

the balance sheet date where transactions or events have occured at that date that will result in an

obligation to pay more, or a right to pay less or to receive more tax.

Deferred tax assets are recognised only to the extent that the directors consider that it is more likely

than not that there will be suitable taxable profits from which the future reversal of the underlying

timing differences can be deducted.

Deferred tax is measures on an undiscounted basis at the tax rates that are expected to apply in the

periods in which timing differences reverse, base don tax rates and laws enacted or substantively

enacted at the balance sheet date.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets

and depreciated over the shorter of the lease term and their useful lives. Obligations under such

agreements are included in creditors net of the finance charge allocated to future periods. The finance

element of the rental payment is charged to the profit and loss account so as to produce constant

periodic rates of charge on the net obligations outstanding in each period.

Pension costs

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.

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those

costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee's

services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably

committed to terminate the employment of any employee or to provide termination benefits

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 33 (2018 - 32 ) .

4.	TANGIBLE FIXED ASSETS

Land and

Solar

Plant and

buildings

panels

machinery

£

£

£

COST

At 1 April 2018

141,969

101,960

1,304,581

Additions

-

-

3,155

Disposals

-

-

(565,907

)

At 31 March 2019

141,969

101,960

741,829

DEPRECIATION

At 1 April 2018

-

12,439

694,562

Charge for year

4,259

4,078

37,197

Eliminated on disposal

-

-

(268,476

)

At 31 March 2019

4,259

16,517

463,283

NET BOOK VALUE

At 31 March 2019

137,710

85,443

278,546

At 31 March 2018

141,969

89,521

610,019

Fixtures,

fittings

and

Motor

equipment

vehicles

Totals

£

£

£

COST

At 1 April 2018

137,327

81,665

1,767,502

Additions

2,410

-

5,565

Disposals

(77,340

)

(14,500

)

(657,747

)

At 31 March 2019

62,397

67,165

1,115,320

DEPRECIATION

At 1 April 2018

128,434

52,328

887,763

Charge for year

4,269

11,202

61,005

Eliminated on disposal

(77,338

)

(14,500

)

(360,314

)

At 31 March 2019

55,365

49,030

588,454

NET BOOK VALUE

At 31 March 2019

7,032

18,135

526,866

At 31 March 2018

8,893

29,337

879,739

Included within the above are assets held under finance leases or hire purchase contracts as follows:

31/3/19

31/3/18

Net Book Value

Depreciation Charge

Net Book Value

Depreciation Charge

£

£

£

£

Plant and machinery

-

-

16,820

2,629

Solar panels

85,443

4,078

89,521

4,078

Total

85,443

4,078

109,341

6,707

5.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 April 2018

and 31 March 2019

1

NET BOOK VALUE

At 31 March 2019

1

At 31 March 2018

1

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/3/19

31/3/18

£

£

Trade debtors

379,307

440,868

Amounts owed by group undertakings

491,401

437,369

Amounts recoverable on contracts

157,938

206,107

Other debtors

82,426

88,249

1,111,072

1,172,593

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/3/19

31/3/18

£

£

Bank loans and overdrafts

62,352

133,304

Hire purchase contracts (see note 9)

15,753

17,141

Payments on account

-

33,790

Trade creditors

281,501

560,217

Taxation and social security

50,238

99,739

Other creditors

81,804

6,094

491,648

850,285

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31/3/19

31/3/18

£

£

Hire purchase contracts (see note 9)

1,469

17,222

9.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

31/3/19

31/3/18

£

£

Net obligations repayable:

Within one year

15,753

17,141

Between one and five years

1,469

17,222

17,222

34,363

Non-cancellable

operating leases

31/3/19

31/3/18

£

£

Within one year

1,139

1,139

Between one and five years

-

1,139

1,139

2,278

10.	SECURED DEBTS

The following secured debts are included within creditors:

31/3/19

31/3/18

£

£

Hire purchase contracts

17,222

34,363

Hire purchases are secured against the assets to which they relate.

Debenture

Natwest bank holds a fixed and floating charge over the assets and undertaking of the company.

11.	PROVISIONS FOR LIABILITIES

31/3/19

31/3/18

£

£

Deferred tax - timing

difference

59,495

70,050

59,495

70,050

Deferred

tax

£

Balance at 1 April 2018

70,050

Movement in the year

(10,555

)

Balance at 31 March 2019

59,495

12.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31/3/19

31/3/18

value:

£

£

100

Ordinary

£1

100

100

1

Ordinary preference

£1

1

1

101

101

Ordinary preference shares do not entitle the holder to receive notice or vote at any general meeting of

the company.

13.	PENSION COMMITMENTS

The company operates a defined contribution pension scheme. The total contributions made by the

company for directors and other employees totalled £9,364 (2018: £4,781). At the balance sheet date

the company owed the scheme £1,285 (2018: £537).

14.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 March 2019 and

31 March 2018:

31/3/19

31/3/18

£

£

MEF James

Balance outstanding at start of year

9,188

9,861

Amounts advanced

16,181

9,225

Amounts repaid

(9,212

)

(9,898

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

16,157

9,188

RW James

Balance outstanding at start of year

77,595

16,734

Amounts advanced

64,180

77,712

Amounts repaid

(77,991

)

(16,851

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

63,784

77,595

Interest at the official rate of 2.5% has been charged on loans to the directors.

15.	CONTROLLING PARTY

The immediate parent company and controlling party is Hewaswater Holdings Limited.

16.	ULTIMATE CONTROLLING PARTY

MEF James is the ultimate controlling party by virtue of his majority shareholding in the parent

company Hewaswater Holdings Limited.