Thorne International Boiler Services Ltd - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 01129729 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30TH JULY 2021

FOR

THORNE INTERNATIONAL BOILER SERVICES

LIMITED

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

3

DIRECTOR:

N C Jeavons

REGISTERED OFFICE:

Broad Lanes

Bilston

Wolverhampton

West Midlands

WV14 0RQ

REGISTERED NUMBER:

01129729 (England and Wales)

ACCOUNTANTS:

Howards Limited

Chartered Certified Accountants

Newport House

Newport Road

Stafford

Staffordshire

ST16 1DA

FIXED ASSETS

Tangible assets

5

3,250

12,037

CURRENT ASSETS

Stocks

43,000

43,576

Debtors

6

2,459,051

2,443,752

Prepayments and accrued income

41,733

55,242

Cash at bank and in hand

994,608

859,641

3,538,392

3,402,211

CREDITORS

Amounts falling due within one year

7

2,394,836

2,093,980

NET CURRENT ASSETS

1,143,556

1,308,231

TOTAL ASSETS LESS CURRENT LIABILITIES

1,146,806

1,320,268

PROVISIONS FOR LIABILITIES

-

(347

)

ACCRUALS AND DEFERRED INCOME

(316,680

)

(331,134

)

NET ASSETS

830,126

988,787

CAPITAL AND RESERVES

Called up share capital

2,500

2,500

Retained earnings

827,626

986,287

SHAREHOLDERS' FUNDS

830,126

988,787

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30th July 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 30th July 2021 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 Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 28th July 2022 and were signed by:

N C Jeavons - Director

1.	STATUTORY INFORMATION

Thorne International Boiler Services Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 01129729 and the registered office address is Broad Lanes, Bilston, Wolverhampton, West Midlands, WV14 0RQ.

The principal activity of the company is that of the supply of boilers, boiler spares and industrial equipment.

2.	STATEMENT OF COMPLIANCE

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

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Functional currency

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

Significant judgements and estimates

In determining and applying accounting policies, judgement is often required in respect of items where the choice of specific policy, accounting estimate or assumption to be followed could materially affect the reported results or net asset position of the company; it may later be determined that a different choice would have been more appropriate. Management considers that certain accounting estimates and assumptions relating to revenue, taxation, tangible fixed assets, provisions and contingent liabilities and accruals are its critical accounting estimates.

Turnover

The turnover shown in the profit and loss account represents amounts invoiced during the year, exclusive of VAT.

In respect of long-term contracts, turnover represents the value of work done in the year, including estimates of amounts not invoiced. Turnover in respect of long-term contracts and contracts for on-going services is recognised by reference to the stage of completion.

Tangible fixed assets

Depreciation is calculated so as to write off the cost of assets, less their residual value, over their estimated useful lives as follows:

Fixtures and fittings - 15% on cost

Motor vehicles - 25% on cost

Computer equipment - 33.33% on cost

On disposal, the difference between the net disposal proceeds and the carrying amount of the item sold is recognised in profit or loss, and included in other operating income.

Stock

Stock is valued at lower of cost or the net realisable value. Cost is calculated on a first in first out basis.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

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.

Long-term contracts

Long-term contracts are assessed on a contract-by-contract basis and reflected in the profit and loss account by recording turnover and related costs as contract activity progresses. Turnover is ascertained in a manner appropriate to the stage of completion of the contract and the business. Where it is considered that the outcome of a long-term contract can be assessed with reasonable certainty before its conclusion, the prudently calculated attributable profit is recognised in the profit and loss account as the difference between the reported turnover and related costs for that contract.

The amount by which recorded turnover is in excess of payments on account is classified as ‘amounts recoverable on contracts’ and separately disclosed within debtors.

The balance of payments on account (in excess of amounts (i) matched with turnover; and (ii) offset against long-term contract balances) is classified as payments on account and separately disclosed within creditors.

Provisions

Provisions are recognised when the company has a legal or constructive obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

Impairment of non financial assets

At each reporting date non-financial assets not carried at fair value, like goodwill and plant, property and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount of any asset or group of related assets, which is the higher of value in use and the fair value less cost to sell, is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit or loss.

Inventories are also assessed for impairment at each reporting date. The carrying amount of each item of inventory, or group of similar items, is compared with its selling price less costs to complete and sell. If an item of inventory or group of similar items is impaired, its carrying amount is reduced to selling price less costs to complete and sell, and an impairment loss is recognised immediately in profit or loss.

If an impairment loss is subsequently reversed, the carrying amount of the asset or group of related assets is increased to the revised estimate of its recoverable amount, but not to exceed the amount that would have been determined had no impairment loss been recognised for the asset or group of related assets in prior periods. A reversal of an impairment loss is recognised immediately in profit or loss.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 29 (2020 - 34 ) .

5.	TANGIBLE FIXED ASSETS

Fixtures,

fittings

and

Motor

Computer

equipment

vehicles

equipment

Totals

£

£

£

£

COST

At 31st July 2020

and 30th July 2021

87,281

103,932

40,475

231,688

DEPRECIATION

At 31st July 2020

87,281

97,432

34,938

219,651

Charge for year

-

3,250

5,537

8,787

At 30th July 2021

87,281

100,682

40,475

228,438

NET BOOK VALUE

At 30th July 2021

-

3,250

-

3,250

At 30th July 2020

-

6,500

5,537

12,037

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade debtors

708,264

411,399

Other debtors

1,750,787

2,032,353

2,459,051

2,443,752

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade creditors

633,594

944,216

Taxation and social security

119,353

152,449

Other creditors

1,641,889

997,315

2,394,836

2,093,980

8.	SECURED DEBTS

The company's bank holds the following security:

Cross guarantee and debenture with TIBS Energy Limited dated 20th June 2013.

Charge over property at Broad Lanes, Bilston, dated 23rd July 1998.

The company also has an unlimited guarantee given by its related company Jevlock Engineering Limited.

9.	CONTINGENT LIABILITIES

There exists various bonds with recourse. These amount to £57,626 (2020: £57,626). Full details of these bonds can be obtained from the company bankers.

10.	OTHER FINANCIAL COMMITMENTS

The company has future operating lease commitments totalling £39,486 (2020: £35,282).