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 2020

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

D W Dwyer

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

170,876

63,645

CURRENT ASSETS

Stocks

117,546

119,627

Debtors

5

704,930

1,216,339

Cash at bank and in hand

461,951

430,614

1,284,427

1,766,580

CREDITORS

Amounts falling due within one year

6

1,057,303

1,335,736

NET CURRENT ASSETS

227,124

430,844

TOTAL ASSETS LESS CURRENT LIABILITIES

398,000

494,489

CREDITORS

Amounts falling due after more than one year

7

(4,734

)

(9,899

)

PROVISIONS FOR LIABILITIES

(3,398

)

(1,782

)

NET ASSETS

389,868

482,808

CAPITAL AND RESERVES

Called up share capital

22,000

22,000

Capital redemption reserve

20,000

20,000

Retained earnings

347,868

440,808

SHAREHOLDERS' FUNDS

389,868

482,808

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 May 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 May 2020 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 and authorised for issue on 28 October 2020 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.

Short leasehold

-

20% on cost

Plant and machinery

-

15% reducing balance

Fixtures and fittings

-

15% reducing balance

Motor vehicles

-

20% reducing balance

Computer equipment

-

Straight line over 3 years

Government grants

Government Grants are recognised as revenue when they are received, unless there is an obligation to return the funds if conditions of the grant are not met. If there is such an obligation, the grants are initially recorded as grants received in advance and recognised as revenue when conditions of the grant are satisfied.

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 58 (2019 - 66 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

Short

Plant and

and

leasehold

machinery

fittings

£

£

£

COST

At 1 June 2019

-

102,543

23,616

Additions

130,834

5,529

10,276

Disposals

-

-

-

At 31 May 2020

130,834

108,072

33,892

DEPRECIATION

At 1 June 2019

-

82,709

19,917

Charge for year

26,167

3,804

2,096

Eliminated on disposal

-

-

-

At 31 May 2020

26,167

86,513

22,013

NET BOOK VALUE

At 31 May 2020

104,667

21,559

11,879

At 31 May 2019

-

19,834

3,699

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 June 2019

129,412

98,443

354,014

Additions

-

3,361

150,000

Disposals

(21,466

)

-

(21,466

)

At 31 May 2020

107,946

101,804

482,548

DEPRECIATION

At 1 June 2019

91,947

95,796

290,369

Charge for year

6,222

2,636

40,925

Eliminated on disposal

(19,622

)

-

(19,622

)

At 31 May 2020

78,547

98,432

311,672

NET BOOK VALUE

At 31 May 2020

29,399

3,372

170,876

At 31 May 2019

37,465

2,647

63,645

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

Motor

vehicles

£

COST

At 1 June 2019

and 31 May 2020

37,604

DEPRECIATION

At 1 June 2019

9,025

Charge for year

4,813

At 31 May 2020

13,838

NET BOOK VALUE

At 31 May 2020

23,766

At 31 May 2019

28,579

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

688,479

1,205,989

Other debtors

16,451

10,350

704,930

1,216,339

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Bank loans and overdrafts

3,027

142,680

Hire purchase contracts (see note 8)

5,165

5,165

Trade creditors

497,986

664,674

Taxation and social security

350,136

254,645

Other creditors

200,989

268,572

1,057,303

1,335,736

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

2020

2019

£

£

Hire purchase contracts (see note 8)

4,734

9,899

8.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2020

2019

£

£

Net obligations repayable:

Within one year

5,165

5,165

Between one and five years

4,734

9,899

9,899

15,064

Non-cancellable operating

leases

2020

2019

£

£

Within one year

25,027

19,386

Between one and five years

737

9,076

25,764

28,462

9.	SECURED DEBTS

The following secured debts are included within creditors:

2020

2019

£

£

Other creditors

-

84,475

In other creditors an amount of £Nil (2019: £84,475) 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.This charge was satisfied on 2 June 2020.

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. This charge was satisfied on 2 June 2020.

10.	RELATED PARTY DISCLOSURES

During the year, total dividends of £2,000 were paid to the directors .

At the year end date, the director Mrs. D Kelly had a credit balance of £157,109 (2019: £7,406) on his director's current account. This is an interest free loan to the company and is shown within the other creditors.

11.	POST BALANCE SHEET EVENTS

In early 2020, the existence of a new coronavirus, known as COVID-19, was confirmed and since this time COVID-19 has spread across the world causing disruption to businesses and economic activity.The company considers the emergence and spread of COVID-19 to be a non-adjusting post balance sheet event.

As a result of COVID-19, the directors are of the opinion that the company has lost in the region of £200,000 of profit.

After the year end the company applied and received a Coronavirus Business Interruption Loan of £300,000, on 10 June 2020, with Lloyds Bank PLC.