E & S Heating & Ventilation Limited - Limited company accounts 20.1
E & S Heating & Ventilation Limited - Limited company accounts 20.1
REGISTERED NUMBER: |
E & S Heating & Ventilation Limited |
Strategic Report, Report of the Director and |
Audited Financial Statements for the Year Ended 30 April 2021 |
E & S Heating & Ventilation Limited (Registered number: 01959886) |
Contents of the Financial Statements |
for the Year Ended 30 April 2021 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Director | 4 |
Report of the Independent Auditors | 6 |
Profit and Loss Account | 10 |
Other Comprehensive Income | 11 |
Balance Sheet | 12 |
Statement of Changes in Equity | 13 |
Cash Flow Statement | 14 |
Notes to the Cash Flow Statement | 15 |
Notes to the Financial Statements | 17 |
E & S Heating & Ventilation Limited |
Company Information |
for the Year Ended 30 April 2021 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
and Statutory Auditor |
Atlantic House |
8 Bell Lane |
Bellbrook Industrial Estate |
Uckfield |
East Sussex |
TN22 1QL |
E & S Heating & Ventilation Limited (Registered number: 01959886) |
Strategic Report |
for the Year Ended 30 April 2021 |
The director presents her strategic report for the year ended 30 April 2021. |
REVIEW OF BUSINESS |
The year ended 30 April 2021 started amidst the early days of the COVID pandemic with the UK in Lockdown and the Construction industry heavily impacted by the nationwide slow down. The business had a strong order book which could not be delivered & ultimately slipped several months. The business lost £339k in Q1 due to this reduction in turnover and furloughed 25% of its workforce in the early days of the pandemic. Over the course of the summer the team returned to work and activity recommenced on site with several new projects starting and existing projects coming back to life and in Q2 the business made a small profit of £53k. |
As the business entered Q3 the Brighton Hospital Project that had been in severe delay returned to the fore. The business incurred significant loss & expense re-energising the project and had much difficulty re-establishing labour relationships, losing the benefits of fixed price contracts previously negotiated. For many reasons including the site location, project history and COVID issues, the business found it very difficult to maintain the high levels of good quality labour needed to deliver the works and meet our client's expectations and had to provide labour at an inflated cost whilst being tied into contractual conditions. Furthermore, these works needed to be delivered over and above the already strong order book held by the business leading to demand outstripping capacity in their factory and outside manufacture (and additional cost) having to be sourced. The issues at Brighton hospital led to a loss of £370k over Q3. |
During Q4 the business worked hard to stabilise the position at Brighton hospital and delivered a profit of £113k |
As we moved into the new financial year 2021-2022 the business was optimistic about its prospects having secured a strong order book. Frustratingly the new projects suffered slippage due to time lost through COVID delays in the previous year and this impacted upon the early part of the new financial year. The business secured some fast-track work which returned the business to profit and we are optimistic and excited about the planned business growth through the end of the current financial year and 2022-2023. |
Further to the above operating loss, we took a prudent view on works yet to be certified which accounted for the remainder of losses for the year. |
The business was well supported by their bank, NatWest, and benefited from an initial CBILS loan in June 2020 of £400k and then a further loan of £250k in December 2020. The business also completed the purchase of Unit 4, The Square in November 2020, securing for the long term the necessary industrial space for its activities at its offices/factory in Hailsham. |
E & S Heating & Ventilation Limited (Registered number: 01959886) |
Strategic Report |
for the Year Ended 30 April 2021 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risks and uncertainties are those facing any business in the manufacturing and construction sectors. |
All such risks and uncertainties have been addressed by the director. |
Financial risk |
Financial risk management objectives and policies |
The director has reviewed the company's risk management policies and considers them to be adequate. |
Price risk, credit risk, liquidity risk and cash flow risk |
The company's principal financial instruments comprise bank overdrafts, trade creditors and loans to the business. The main purpose of these instruments is to finance the business' operations. |
In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest. All of the company's cash balances are held in such a way that achieves a competitive rate of interest. |
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. |
The shareholder loan included in other creditors is repayable when cash reserves permit and no interest is accrued on the balance. The company manages the liquidity risk by ensuring that there are sufficient funds to service the loan repayments. |
Future developments |
The company has invested in the recruitment of skilled workers which will improve the efficiency and |
productivity of the business in the future. |
DEVELOPMENT AND PERFORMANCE OF THE BUSINESS |
Key performance indicators | 2021 | 2020 | 2019 | 2018 | 2017 |
Turnover | 14,682,902 | 12,144,010 | 13,665,650 | 16,998,361 | 17,353,829 |
Turnover growth | 20.9% | (11.1% | (19.6% | (2.0% | 115.5% |
Position of the business |
At the end of the year, the net liabilities totalled £182,813 (2020 - net assets £1,533,310). |
ON BEHALF OF THE BOARD: |
E & S Heating & Ventilation Limited (Registered number: 01959886) |
Report of the Director |
for the Year Ended 30 April 2021 |
The director presents her report with the financial statements of the company for the year ended 30 April 2021. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of a heating, ventilation and air conditioning contractor. |
DIVIDENDS |
No dividends will be distributed for the year ended 30 April 2021. |
DIRECTOR |
DISCLOSURE IN THE STRATEGIC REPORT |
In accordance with s.414C(11) of the Companies Act 2006, information on financial and other risks required by Schedule 7 to be contained in the Director's Report, are set out in the Strategic Report. |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless she is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable her to ensure that the financial statements comply with the Companies Act 2006. She is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
E & S Heating & Ventilation Limited (Registered number: 01959886) |
Report of the Director |
for the Year Ended 30 April 2021 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and she has taken all the steps that she ought to have taken as a director in order to make herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
E & S Heating & Ventilation Limited |
Qualified opinion |
We have audited the financial statements of E & S Heating & Ventilation Limited (the 'company') for the year ended 30 April 2021 which comprise the Profit and Loss Account, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 30 April 2021 and of its loss for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the Companies Act 2006. |
Basis for opinion |
We were not able to obtain sufficient evidence to satisfy ourselves concerning the stock value of £138,065 held as at 30 April 2020. This was because we were not able to observe the counting of the physical stock as at 30 April 2020 as a result of the Covid-19 pandemic. Owing to the nature of the company’s records, we were unable to obtain sufficient appropriate audit evidence regarding the stock valuation by using other audit procedures. Consequently we were unable to determine whether any adjustment to this amount at 30 April 2020 was necessary, or whether there was any consequential effect on the cost of sales for the year ended 30 April 2021. |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report. |
Report of the Independent Auditors to the Members of |
E & S Heating & Ventilation Limited |
Other information |
The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
Except for the matter described in the basis for qualified opinion section of our report, in the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
Arising solely from the limitation on the scope of our work relating to stock, referred to above: |
- | we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and |
- | we were unable to determine whether adequate accounting records have been kept. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us |
to report to you if, in our opinion: |
- | returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of director's remuneration specified by law are not made. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
E & S Heating & Ventilation Limited |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- | the company's internal controls have been discussed and understood prior to our audit testing. Internal controls have been tested through walkthrough testing, to assess whether controls are adequate, whether they are being followed, and whether irregularities and fraud are prevented. |
- | deficiencies in internal controls have been highlighted and explained to management, along with recommendations as to how deficiencies can be improved and the risk of irregularity and fraud occurrence minimised. |
- | representations have been provided by management that there were no identified cases of fraud or instances of non-compliance during or since the accounting period. |
- | substantive testing has been carried out to test the validity of transactions, with entries in the accounting system vouched to corresponding third party documentation and evidence of appropriate authorisation. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
E & S Heating & Ventilation Limited |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants |
and Statutory Auditor |
Atlantic House |
8 Bell Lane |
Bellbrook Industrial Estate |
Uckfield |
East Sussex |
TN22 1QL |
E & S Heating & Ventilation Limited (Registered number: 01959886) |
Profit and Loss Account |
for the Year Ended 30 April 2021 |
2021 | 2020 |
Notes | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
(1,334,830 | ) | 70,116 |
Other operating income |
OPERATING (LOSS)/PROFIT | 5 | ( |
) |
Interest receivable and similar income | 6 |
(1,269,569 | ) | 95,274 |
Interest payable and similar expenses | 7 |
(LOSS)/PROFIT BEFORE TAXATION | ( |
) |
Tax on (loss)/profit | 8 | ( |
) |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR |
( |
) |
E & S Heating & Ventilation Limited (Registered number: 01959886) |
Other Comprehensive Income |
for the Year Ended 30 April 2021 |
2021 | 2020 |
Notes | £ | £ |
(LOSS)/PROFIT FOR THE YEAR | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
E & S Heating & Ventilation Limited (Registered number: 01959886) |
Balance Sheet |
30 April 2021 |
2021 | 2020 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
13 |
NET CURRENT (LIABILITIES)/ASSETS | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
14 |
NET (LIABILITIES)/ASSETS | ( |
) |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Share premium | 19 |
Retained earnings | 19 | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) |
The financial statements were approved by the director and authorised for issue on |
E & S Heating & Ventilation Limited (Registered number: 01959886) |
Statement of Changes in Equity |
for the Year Ended 30 April 2021 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 May 2019 |
Changes in equity |
Total comprehensive income | - | - |
Balance at 30 April 2020 |
Changes in equity |
Reduction in share capital | (534,739 | ) | - | - | (534,739 | ) |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 30 April 2021 | ( |
) | ( |
) |
E & S Heating & Ventilation Limited (Registered number: 01959886) |
Cash Flow Statement |
for the Year Ended 30 April 2021 |
2021 | 2020 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) | ( |
) |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) |
Net cash from operating activities | ( |
) | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
New loans in year |
Shareholder loan movement | ( |
) |
New hire purchase finance | 17,599 | - |
Hire purchase repayments in year | (3,420 | ) | - |
Amount introduced by directors | 86,500 | - |
Amount withdrawn by directors | (36,500 | ) | - |
Share redemption | ( |
) |
Net cash from financing activities | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
(456,612 |
) |
109,526 |
Cash and cash equivalents at end of year |
2 |
( |
) |
( |
) |
E & S Heating & Ventilation Limited (Registered number: 01959886) |
Notes to the Cash Flow Statement |
for the Year Ended 30 April 2021 |
1. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2021 | 2020 |
£ | £ |
(Loss)/profit before taxation | ( |
) |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) |
Finance costs | 23,452 | 6,312 |
Finance income | (6 | ) | (34 | ) |
(1,157,688 | ) | 216,794 |
Increase in stocks | ( |
) | ( |
) |
(Increase)/decrease in trade and other debtors | ( |
) |
Increase/(decrease) in trade and other creditors | ( |
) |
Cash generated from operations | ( |
) | ( |
) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 April 2021 |
30.4.21 | 1.5.20 |
£ | £ |
Cash and cash equivalents | 624 | 1,061 |
Bank overdrafts | ( |
) | ( |
) |
(401,277 | ) | (456,612 | ) |
Year ended 30 April 2020 |
30.4.20 | 1.5.19 |
£ | £ |
Cash and cash equivalents | 1,061 | 109,526 |
Bank overdrafts | ( |
) |
(456,612 | ) | 109,526 |
E & S Heating & Ventilation Limited (Registered number: 01959886) |
Notes to the Cash Flow Statement |
for the Year Ended 30 April 2021 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.5.20 | Cash flow | At 30.4.21 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,061 | (437 | ) | 624 |
Bank overdrafts | (457,673 | ) | 55,772 | (401,901 | ) |
(456,612 | ) | (401,277 | ) |
Debt |
Finance leases | - | (14,180 | ) | (14,180 | ) |
Debts falling due within 1 year | - | (332,808 | ) | (332,808 | ) |
Debts falling due after 1 year | - | (648,732 | ) | (648,732 | ) |
- | (995,720 | ) | (995,720 | ) |
Total | (456,612 | ) | (940,385 | ) | (1,396,997 | ) |
E & S Heating & Ventilation Limited (Registered number: 01959886) |
Notes to the Financial Statements |
for the Year Ended 30 April 2021 |
1. | STATUTORY INFORMATION |
E & S Heating & Ventilation Limited is a |
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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. |
Turnover |
Turnover represents the value of work carried out in the year. Profit is recognised net of VAT and discounts on long term contracts in proportion to the work completed after making allowance for future risks and uncertainties. Immediate provision is made for all foreseeable losses. |
Goodwill |
Intangible fixed assets |
Computer software is being amortised evenly over its estimated useful life of three years. |
Other intangible fixed assets, being capitalised development expenditure, is being amortised evenly over its estimated useful life of three years. The development costs have been capitalised due to their use in future business sales. |
Amortisation is included within administrative expenses in the income statement. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. |
E & S Heating & Ventilation Limited (Registered number: 01959886) |
Notes to the Financial Statements - continued |
for the Year Ended 30 April 2021 |
2. | ACCOUNTING POLICIES - continued |
Government grants |
Government grants in respect of capital expenditure are credited to a deferred income account and released to profit over the expected useful lives of the relevant assets in equal annual instalments. |
Government grants of a revenue nature are credited to income so as to match them with the expenditure to which they relate. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Equity instruments |
Non-redeemable preference shares were classified as equity as they bore discretionary dividends, did not contain any obligations to deliver cash or other financial assets and did not require settlement in a variable number of the company's equity instruments. Discretionary dividends thereon were recognised as equity distributions on approval by the Company's shareholders. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, 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 balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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 balance sheet 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. |
E & S Heating & Ventilation Limited (Registered number: 01959886) |
Notes to the Financial Statements - continued |
for the Year Ended 30 April 2021 |
2. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts are capitalised in the balance sheet. They are depreciated over their estimated useful lives. |
The interest element of these obligations is charged to the 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 the profit and loss account on a straight line basis over the period of the lease. |
Long term contracts |
Long term contracts are stated at costs incurred, net of amounts transferred to the profit and loss account in respect of work carried out to date, less foreseeable losses and applicable payments on account. The net balances are shown as debtors (amounts recoverable on contracts) and creditors (advance payments on account of contracts). |
Debtors |
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
Creditors |
Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Going concern |
The director has assessed whether the going concern basis of preparation continues to be appropriate, based on whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the company to continue as a going concern. This assessment has been required in the light of the significant uncertainty around the short to medium term impact of the spread of the Covid-19 virus. |
In order to assist the company with its cash flow requirements additional shareholder loans of £350,000 were received in November 2021. The shareholders have made flexible arrangements for repayment of these loans there by supporting the company with future funding. |
At the time of approving the financial statements the director believes that all appropriate measures have been or will be taken to ensure that the company will be able to continue its operations for at least the next 12 months and thus conclude that the going concern basis remains appropriate. |
E & S Heating & Ventilation Limited (Registered number: 01959886) |
Notes to the Financial Statements - continued |
for the Year Ended 30 April 2021 |
3. | EMPLOYEES AND DIRECTORS |
2021 | 2020 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2021 | 2020 |
Sales and manufacturing | 75 | 70 |
Directors | 1 | 1 |
4. | DIRECTORS' EMOLUMENTS |
2021 | 2020 |
£ | £ |
Director's remuneration |
Director's pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
5. | OPERATING (LOSS)/PROFIT |
The operating loss (2020 - operating profit) is stated after charging/(crediting): |
2021 | 2020 |
£ | £ |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( |
) |
Goodwill amortisation |
Other intangibles amortisation |
Computer software amortisation | ( |
) |
Auditors' remuneration |
E & S Heating & Ventilation Limited (Registered number: 01959886) |
Notes to the Financial Statements - continued |
for the Year Ended 30 April 2021 |
6. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2021 | 2020 |
£ | £ |
Deposit account interest |
Other interest receivable |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2021 | 2020 |
£ | £ |
Bank interest |
Other interest payable |
8. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
2021 | 2020 |
£ | £ |
Current tax: |
UK corporation tax | ( |
) |
Tax losses carried back | (97,743 | ) | - |
Tax on (loss)/profit | ( |
) |
UK corporation tax has been charged at 19% (2020 - 19%). |
E & S Heating & Ventilation Limited (Registered number: 01959886) |
Notes to the Financial Statements - continued |
for the Year Ended 30 April 2021 |
8. | TAXATION - continued |
Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2021 | 2020 |
£ | £ |
(Loss)/profit before tax | ( |
) |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Depreciation in excess of capital allowances |
Utilisation of tax losses | ( |
) |
R&D enhanced expenditure | ( |
) | ( |
) |
Losses carried forward |
Total tax (credit)/charge | (111,637 | ) | 29,348 |
9. | INTANGIBLE FIXED ASSETS |
Other | Computer |
Goodwill | intangibles | software | Totals |
£ | £ | £ | £ |
COST |
At 1 May 2020 |
and 30 April 2021 |
AMORTISATION |
At 1 May 2020 |
Amortisation for year |
At 30 April 2021 |
NET BOOK VALUE |
At 30 April 2021 |
At 30 April 2020 |
E & S Heating & Ventilation Limited (Registered number: 01959886) |
Notes to the Financial Statements - continued |
for the Year Ended 30 April 2021 |
10. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1 May 2020 |
Additions |
Disposals |
At 30 April 2021 |
DEPRECIATION |
At 1 May 2020 |
Charge for year |
Eliminated on disposal |
At 30 April 2021 |
NET BOOK VALUE |
At 30 April 2021 |
At 30 April 2020 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 May 2020 |
Additions |
Disposals | ( |
) | ( |
) |
At 30 April 2021 |
DEPRECIATION |
At 1 May 2020 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 30 April 2021 |
NET BOOK VALUE |
At 30 April 2021 |
At 30 April 2020 |
Included within the net book value of tangible fixed assets is £13,003 (2020 - £nil) in respect of assets held under finance leases. Depreciation for the year on those assets was £2,367 (2020 - £nil). |
E & S Heating & Ventilation Limited (Registered number: 01959886) |
Notes to the Financial Statements - continued |
for the Year Ended 30 April 2021 |
11. | STOCKS |
2021 | 2020 |
£ | £ |
Finished goods |
Stock recognised in cost of sales during the year as an expense was £3,768,557 (2020 - £1,863,182). |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Trade debtors |
Amounts recoverable on contract |
Other debtors |
Tax |
VAT |
Prepayments and accrued income |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Bank loans and overdrafts (see note 15) |
Hire purchase contracts (see note 16) |
Trade creditors |
Tax |
Social security and other taxes |
VAT | 130,902 | - |
Other creditors |
Directors' current accounts | 50,000 | - |
Accruals and deferred income |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2021 | 2020 |
£ | £ |
Bank loans (see note 15) |
Hire purchase contracts (see note 16) |
E & S Heating & Ventilation Limited (Registered number: 01959886) |
Notes to the Financial Statements - continued |
for the Year Ended 30 April 2021 |
15. | LOANS |
An analysis of the maturity of loans is given below: |
2021 | 2020 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans | 264,168 | - |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2021 | 2020 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable | operating leases |
2021 | 2020 |
£ | £ |
Within one year |
Between one and five years |
E & S Heating & Ventilation Limited (Registered number: 01959886) |
Notes to the Financial Statements - continued |
for the Year Ended 30 April 2021 |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
2021 | 2020 |
£ | £ |
Bank overdrafts |
Mortgage | 331,539 | - |
Bank borrowings are secured by way of a fixed and floating charge over the assets of the company, together with a charge of deposit dated 1 December 2004. |
The mortgage is secured by way of a fixed charge over the property that it financed. |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | £ | £ |
Ordinary | £1 | 132 | 132 |
NIL | Preference | £1 | - | 534,739 |
132 | 534,871 |
The company's non-redeemable ordinary shares carry one vote for each share and are eligible for dividend. |
The company's preference shares were non-voting save on a winding-up, a capital reduction or variation of the rights, with no right to dividend. They were non-redeemable save at the discretion of the director or with the consent of holders of a majority of the ordinary shares. |
The preference shares ranked ahead of the ordinary shares in a capital distribution on a winding-up. |
During the year, the company redeemed all 534,739 preference shares at par. |
E & S Heating & Ventilation Limited (Registered number: 01959886) |
Notes to the Financial Statements - continued |
for the Year Ended 30 April 2021 |
19. | RESERVES |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 May 2020 | 998,439 |
Deficit for the year | ( |
) | ( |
) |
At 30 April 2021 | ( |
) | (182,945 | ) |
20. | RELATED PARTY DISCLOSURES |
Last year amounts owed to shareholders totalling £534,739 were converted into 534,739 Preference shares of £1 each. During the current year the company redeemed all 534,739 preference shares at par and in addition paid the shareholders £165,000 (2020 - £420,669). At the year end date the shareholders owed the company £50,930 (2020 - £420,669). During the year the director made advances to the company totalling £86,500 (2020 - £nil) and was repaid £36,500 (2020 - £nil). At the balance sheet date the company owed amounts totalling £50,000 (2020 - £nil) to the director. These balances are interest free, unsecured and repayable on demand. |
21. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is |
22. | RESEARCH AND DEVELOPMENT |
The aggregate amount of research and development expenditure recognised as an expense during the year was £41,661 (2020 - £40,296). |