Environcom (North West) Limited - Period Ending 2021-12-31

Environcom (North West) Limited

Contents

Company Information	1
Balance Sheet	2
Statement of Changes in Equity	3
Notes to the Financial Statements	4 to 11

Environcom (North West) Limited

Company Information

Directors

Mr Jonathan Andrew Parsons Mr Crispin John Stephenson

Registered office

Environcom Spittlegate Level Grantham NG31 7UH

Auditors

Cannon Williamson Albion House Pinchbeck Road Spalding Lincolnshire PE11 1QD

Environcom (North West) Limited

(Registration number: 06472943)
Balance Sheet as at 31 December 2021

	Note	2021 £	2020 £
Fixed assets
Tangible assets	6	230,554	231,997
Current assets
Stocks	7	76,727	77,909
Debtors	8	409,660	252,089
Cash at bank and in hand		27,429	43,458
		513,816	373,456
Creditors: Amounts falling due within one year	9	(533,334)	(450,204)
Net current liabilities		(19,518)	(76,748)
Total assets less current liabilities		211,036	155,249
Creditors: Amounts falling due after more than one year	9	(131,778)	(37,714)
Net assets		79,258	117,535
Capital and reserves
Called up share capital	10	2	2
Profit and loss account		79,256	117,533
Shareholders' funds		79,258	117,535

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 31 March 2022 and signed on its behalf by:
 

.........................................

Mr Jonathan Andrew Parsons
Director

Environcom (North West) Limited

Statement of Changes in Equity for the Year Ended 31 December 2021

	Share capital £	Profit and loss account £	Total £
At 1 January 2021	2	117,533	117,535
Loss for the year	-	(38,277)	(38,277)
Total comprehensive income	-	(38,277)	(38,277)
At 31 December 2021	2	79,256	79,258

	Share capital £	Profit and loss account £	Total £
At 1 January 2020	2	(4,209,417)	(4,209,415)
Loss for the year	-	(166,469)	(166,469)
Other comprehensive income	-	4,493,419	4,493,419
Total comprehensive income	-	4,326,950	4,326,950
At 31 December 2020	2	117,533	117,535

Environcom (North West) Limited

Notes to the Financial Statements for the Year Ended 31 December 2021

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Environcom
Spittlegate Level
Grantham
NG31 7UH
United Kingdom

These financial statements were authorised for issue by the Board on 31 March 2022.

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These 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.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Summary of disclosure exemptions

The company has taken advantage of the exemptions available under FRS 102 paragraph 33.1A not to disclose intra-group trading as the subsidiaries are all wholly owned by Environcom Limited.

Name of parent of group

These financial statements are consolidated in the financial statements of Environcom Limited.

The financial statements of Environcom Limited may be obtained from Companies House, Crown Way Cardiff, CF14 3UZ or www.companieshouse.gov.uk.

Audit report

The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 31 March 2022 was David Thomas Williamson, who signed for and on behalf of Cannon Williamson.

Judgements

The directors have made no material judgements or key estimates in preparing these financial statements.

Revenue recognition

Turnover comprises revenue recognised by the company in respect of goods and services supplied during the year, exclusive of Value Added Tax (VAT) and discounts.

Turnover is recognised when goods are dispatched or services supplied.

Environcom (North West) Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

2	Accounting policies (continued)

Government grants

Government grants are recognised on an accruals basis.

Foreign currency transactions and balances

The company’s functional and presentational currency is GBP.

Foreign currency transactions are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit and loss account.

Tax

Tax is recognised in the profit and loss account, except for items that are required to be accounted for directly through equity. In these instances, taxation would be recognised in equity also.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

•Deferred tax assets are only recognised if it is thought probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
•Any deferred tax balances are reversed if and when all conditions for retaining associated allowances have been met.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Leasehold improvements	25%-33% straight line
Plant and machinery	10%-25% straight line
Fixtures and fittings	25% reducing balance

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Environcom (North West) Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

2	Accounting policies (continued)

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of purchase cost and net realisable value, after making due allowance for obsolete and slow-moving stock. Costs includes all direct costs and an appropriate proportion of fixed and variable overheads.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

The Company as lessee

Rentals paid under operating leases are charged to the profit and loss account on a straight- line basis over the lease term.

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. 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 a constant periodic rate of charge on the net obligation outstanding at each period.

Environcom (North West) Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

2	Accounting policies (continued)

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year.

Once the company has paid its contributions it has no further obligations. Amounts unpaid at the period end are recognised as accruals. The assets and liabilities of the plan are held separately from the company in independently administered funds.

3	Government grants

COVID-19 Job Retention Scheme
The amount of grants recognised in the financial statements was £7,830 (2020 - £142,119).

 

4	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 38 (2020 - 38).

Taxation

There is no charge to corporation tax in as the company has brought forward losses of £5,539,264.

The company has an unprovided for deferred tax asset of £1,452,755 (2020 - £1,478,485) relating to losses carried forward and accelerated capital allowances. This has not been recognised as it is not certain that this asset will be utilised in the near future.

The unprovided for deferred tax asset has been calculated at 25%. This is the main rate of corporation tax with effect from 1 April 2023. Should the deferred tax asset be utilised it is expected that the company would realise the asset at this rate.

Environcom (North West) Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

6	Tangible assets

	Land and buildings £	Furniture, fittings and equipment  £	Other tangible assets £	Total £
Cost or valuation
At 1 January 2021	17,237	136,656	766,189	920,082
Additions	11,868	76,094	6,265	94,227
At 31 December 2021	29,105	212,750	772,454	1,014,309
Depreciation
At 1 January 2021	12,490	90,476	585,119	688,085
Charge for the year	4,744	32,072	58,854	95,670
At 31 December 2021	17,234	122,548	643,973	783,755
Carrying amount
At 31 December 2021	11,871	90,202	128,481	230,554
At 31 December 2020	4,747	46,180	181,070	231,997

Included within the net book value of land and buildings above is £11,871 (2020 - £4,747) in respect of short leasehold land and buildings improvements.
 

7

Stocks

	2021 £	2020 £
Raw materials and consumables	28,957	27,297
Finished goods and goods for resale	47,770	50,612
	76,727	77,909

Environcom (North West) Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

8

Debtors

	2021 £	2020 £
Trade debtors	330,742	164,737
Prepayments	78,918	84,520
Other debtors	-	2,832
	409,660	252,089

9

Creditors

Creditors: amounts falling due within one year

	Note	2021 £	2020 £
Due within one year
Loans and borrowings	12	25,143	11,667
Trade creditors		203,071	351,275
Taxation and social security		84,591	18,000
Accruals and deferred income		216,119	66,618
Other creditors		4,410	2,644
		533,334	450,204

Creditors: amounts falling due after more than one year

	Note	2021 £	2020 £
Due after one year
Loans and borrowings	12	12,571	37,714
Other non-current financial liabilities		119,207	-
		131,778	37,714

Environcom (North West) Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

10	Share capital

Allotted, called up and fully paid shares

	2021		2020
	No.	£	No.	£
Ordinary shares of £1 each	2	2	2	2

11

Reserves

The changes to each component of equity resulting from items of other comprehensive income for the current year were as follows:

Trading income and expenditure only.

The changes to each component of equity resulting from items of other comprehensive income for the prior year were as follows:

	Retained earnings £	Total £
Intra group debt release	4,493,419	4,493,419

12	Loans and borrowings

	2021 £	2020 £
Non-current loans and borrowings
Other borrowings	12,571	37,714

	2021 £	2020 £
Current loans and borrowings
Other borrowings	25,143	11,667

Other borrowings

The carrying amount of Amounts owed to group undertakings at year end is £119,207 (2020 - £Nil).

Environcom (North West) Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

13	Parent and ultimate parent undertaking

The company's immediate parent is Environcom England Limited, incorporated in England and Wales.

 The ultimate parent is Environcom Limited, incorporated in Scotland.

  These financial statements are available upon request from Companies House, Crown Way, Cardiff, CF14 3UZ.

 The ultimate controlling party is C Stephenson and J Parsons.