Europe Air Conditioning Ltd - Period Ending 2022-03-31

Europe Air Conditioning Ltd

Contents

Balance Sheet	1 to 2
Notes to the Unaudited Financial Statements	3 to 8

Europe Air Conditioning Ltd

(Registration number: 05733009)
Balance Sheet as at 31 March 2022

	Note	2022		2021
		£	£	£	£
Fixed assets
Tangible assets	5		109,257		90,676
Current assets
Stocks		3,599		-
Debtors	6	1,154,126		1,047,327
Cash at bank and in hand		223,211		248,291
		1,380,936		1,295,618
Creditors: Amounts falling due within one year	7	(776,885)		(845,698)
Net current assets			604,051		449,920
Total assets less current liabilities			713,308		540,596
Creditors: Amounts falling due after more than one year	7		(78,666)		(73,272)
Provisions for liabilities			(27,000)		(17,000)
Net assets			607,642		450,324
Capital and reserves
Called up share capital	8	100		100
Profit and loss account		607,542		450,224
Total equity			607,642		450,324

Europe Air Conditioning Ltd

(Registration number: 05733009)
Balance Sheet as at 31 March 2022

For the financial year ending 31 March 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

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 20 December 2022 and signed on its behalf by:
 

......................................... I P Dobson Director

Europe Air Conditioning Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2022

1	General information

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

The address of its registered office is:
12a Russell Court
Cottingley Business Park
Cottingley
Bingley
BD16 1PE

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 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' including the disclosure and presentation requirements of Section 1A 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.

The company's functional and presentation currency is pound sterling.

Summary of disclosure exemptions

The company has taken advantage of the exemption under Financial Reporting Standard 102 Section 1AC.35 from disclosing transactions and balances with fellow group undertakings that are wholly owned.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

The company recognises revenue when the amount of revenue can be reliably measured and it is probable that future economic benefits will flow to the entity.

Contract revenue recognition

In the case of long term contracts, credit is taken appropriate to the stage of completion when the outcome of the contract can be ascertained with reasonable certainty.

Europe Air Conditioning Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2022

Government grants

Grants are measured at the fair value of the asset received or receivable.

Grants relating to revenue shall be recognised in income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate.

A grant that becomes receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs shall be recognised in income in the period in which it becomes receivable.

Grants relating to assets shall be recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred it shall be recognised as deferred income and not deducted from the carrying amount of the asset.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

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
Plant and machinery	25% reducing balance
Motor vehicles	25% reducing balance
Computer equipment	33% on cost

Work in progress

Contract work in progress is valued at the amount recoverable based on the stage of completion. The amount recoverable includes direct costs, attributable overheads and a proportion of the estimated profits, deducting foreseeable losses. Contract work in progress is stated after taking into account contract sales values.

Europe Air Conditioning Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2022

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

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

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Europe Air Conditioning Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2022

Financial instruments

Financial assets

Basic financial assets, including trade and other receivables, are initially recognised at transaction price, 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 for a similar asset. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss and any subsequent reversal is recognised in profit or loss.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Financial liabilities

Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year was 29 (2021 - 24).

4	Government grants

During the year the company has received grant income of nil (2021 - £57,575) in respect of the Coronavirus Job Retention Scheme.

During the year the company has received grant income of £501 (2021 - nil) in respect of The Coronavirus Statutory Sick Pay Rebate Scheme.

Europe Air Conditioning Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2022

5	Tangible assets

	Plant and machinery  £	Computer equipment  £	Motor vehicles  £	Total £
Cost or valuation
At 1 April 2021	12,540	6,859	158,960	178,359
Additions	-	4,479	47,662	52,141
Disposals	-	-	(39,765)	(39,765)
At 31 March 2022	12,540	11,338	166,857	190,735
Depreciation
At 1 April 2021	12,057	6,706	68,920	87,683
Charge for the year	121	398	23,223	23,742
Eliminated on disposal	-	-	(29,947)	(29,947)
At 31 March 2022	12,178	7,104	62,196	81,478
Carrying amount
At 31 March 2022	362	4,234	104,661	109,257
At 31 March 2021	483	153	90,040	90,676

6

Debtors

		2022 £	2021 £
Trade debtors		963,167	874,304
Amounts owed by group undertakings		1,625	-
Other debtors		29,286	1,170
Prepayments		17,527	10,282
Gross amount due from customers for contract work		142,521	161,571
		1,154,126	1,047,327

Europe Air Conditioning Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2022

7

Creditors

		2022 £	2021 £
Due within one year
Loans and borrowings		25,695	14,836
Trade creditors		552,376	576,654
Amounts owed to group undertakings		-	60,735
Taxation and social security		30,138	60,140
Accruals and deferred income		9,073	3,469
Other creditors		77,603	70,864
Corporation tax liability		82,000	59,000
		776,885	845,698

Creditors due within one year include obligations under finance lease and hire purchase contracts of £16,743 (2021 - £14,319) which are secured on the assets to which they relate.

	Note	2022 £	2021 £
Due after one year
Loans and borrowings		78,666	73,272

Creditors due over one year include obligations under finance lease and hire purchase contracts of £41,618 (2021 - £24,908) which are secured on the assets to which they relate.

Creditors include bank loans repayable by instalments of £nil (2021 - £22,239) due after more than five years.

8	Share capital

Allotted, called up and fully paid shares

	2022		2021
	No.	£	No.	£
Ordinary shares of £1 each	100	100	100	100

9	Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £42,014 (2021 - £15,082). The financial commitment is in respect of operating leases.