Tennals Fire & Security Limited Filleted accounts for Companies House (small and micro)

COMPLIANCE GROUP FIRE AND SECURITY LIMITED - Company Information

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COMPANY REGISTRATION NUMBER: 02456542

Tennals Fire & Security Limited

Filleted Unaudited Financial Statements

30 September 2021

Tennals Fire & Security Limited

Statement of Financial Position

30 September 2021

	2021		2020
			(restated)
Note	£	£	£

Fixed assets

Intangible assets	5	63,556	70,751
Tangible assets	6	864,716	1,087,743
		--------	-----------
		928,272	1,158,494

Current assets

Stocks		232,265	245,202
Debtors	7	2,208,504	2,346,912
Cash at bank and in hand		97,601	24,292
		-----------	-----------
		2,538,370	2,616,406

Creditors: amounts falling due within one year	8	2,506,653		2,499,257
		-----------		-----------
Net current assets			31,717	117,149
			--------	-----------
Total assets less current liabilities			959,989	1,275,643

Creditors: amounts falling due after more than one year	9		310,339	576,397

Provisions	92,634	133,053
	--------	-----------
Net assets	557,016	566,193
	--------	-----------

Capital and reserves

Called up share capital	51,350	51,350
Revaluation reserve	–	63,080
Profit and loss account	505,666	451,763
	--------	--------
Shareholders funds	557,016	566,193
	--------	--------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.

For the year ending 30 September 2021 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 financial statements for the year in question in accordance with section 476 ;

- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

Tennals Fire & Security Limited

Statement of Financial Position (continued)

30 September 2021

These financial statements were approved by the board of directors and authorised for issue on 22 March 2022 , and are signed on behalf of the board by:

Mr R Cullen

Director

Company registration number: 02456542

Tennals Fire & Security Limited

Notes to the Financial Statements

Year ended 30 September 2021

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Unit C5 Coomswood Business Park East, Coombs Road, Halesowen, England, B62 8BH.

2. Statement of compliance

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements. In reaching their judgement regarding going concern, the directors have considered the impact of the global Covid-19 pandemic on the company's activities. Although the pandemic is causing economic disruption, the long-term extent and quantum of that disruption remains unknown as at the date of approving these financial statements.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that 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 that are expected to apply to the reversal of the timing difference.

Operating leases

Lease income is recognised in profit or loss on a straight line basis over the lease term. The aggregate cost of lease incentives are recognised as a reduction to income over the lease term on a straight-line basis. Costs, including depreciation, incurred in earning the lease income are recognised as an expense. Any initial direct costs incurred in negotiating and arranging the operating lease are added to the carrying amount of the lease and recognised as an expense over the lease term on the same basis as the lease income.

Goodwill

Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

	Goodwill	-	10% straight line

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Long leasehold property	-	10% straight line
Plant and machinery	-	20% reducing balance
Fixtures, fittings and equipment	-	25% straight line
Motor vehicles	-	25% reducing balance

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are 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 are recognised in income in the period in which it becomes receivable. Grants relating to assets are 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 is recognised as deferred income and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Employee numbers

The average number of persons employed by the company during the year amounted to 62 (2020: 91 ).

5. Intangible assets

	Goodwill
	£
Cost
At 1 October 2020 (as restated) and 30 September 2021	71,950
	-------
Amortisation
At 1 October 2020	1,199
Charge for the year	7,195
	-------
At 30 September 2021	8,394
	-------
Carrying amount
At 30 September 2021	63,556
	-------
At 30 September 2020	70,751
	-------

6. Tangible assets

	Freehold property	Long leasehold property	Plant and machinery	Fixtures, fittings and equipment	Motor vehicles	Total
	£	£	£	£	£	£
Cost
At 1 Oct 2020 (as restated)	160,000	271,330	14,405	180,120	834,662	1,460,517
Additions	–	18,158	7,312	33,305	265,486	324,261
Disposals	( 160,000)	( 271,330)	–	( 8,130)	–	( 439,460)
	--------	--------	-------	--------	-----------	-----------
At 30 Sep 2021	–	18,158	21,717	205,295	1,100,148	1,345,318
	--------	--------	-------	--------	-----------	-----------
Depreciation
At 1 Oct 2020	–	108,166	3,118	132,254	129,236	372,774
Charge for the year	–	27,134	2,896	12,850	206,520	249,400
Disposals	–	( 135,300)	–	( 6,272)	–	( 141,572)
	--------	--------	-------	--------	-----------	-----------
At 30 Sep 2021	–	–	6,014	138,832	335,756	480,602
	--------	--------	-------	--------	-----------	-----------
Carrying amount
At 30 Sep 2021	–	18,158	15,703	66,463	764,392	864,716
	--------	--------	-------	--------	-----------	-----------
At 30 Sep 2020	160,000	163,164	11,287	47,866	705,426	1,087,743
	--------	--------	-------	--------	-----------	-----------

7. Debtors

	2021	2020
		(restated)
	£	£
Trade debtors	1,104,615	1,060,777
Amounts owed by group undertakings and undertakings in which the company has a participating interest	697,986	833,464
Other debtors	405,903	452,671
	-----------	-----------
	2,208,504	2,346,912
	-----------	-----------

8. Creditors: amounts falling due within one year

	2021	2020
		(restated)
	£	£
Bank loans and overdrafts	339,394	100,000
Trade creditors	537,508	590,095
Corporation tax	102,130	34,076
Social security and other taxes	305,185	606,436
Credit Card	308	–
Other creditors	1,222,128	1,168,650
	-----------	-----------
	2,506,653	2,499,257
	-----------	-----------

9. Creditors: amounts falling due after more than one year

	2021	2020
		(restated)
	£	£
Other creditors	310,339	576,397
	--------	--------

10. Prior period errors

During the year ended 30 September 2020, Tennals Fire & Security Limited sold a division of operations to Tennals Facilities Maintenance, that should have given rise to a profit on disposal of operations of £608,542. This was incorrectly recognised in the 2020 accounts as part of the intercompany balance between the two companies. The prior year amendment has had the effect of transferring £608,542 out of amounts owed to intercompany and in to profit on disposal of operations within the statement of comprehensive income. The result of this amendment has also resulted in an increased corporation tax charge of £8,012. The net effect on the profit and loss reserves as at 30 September 2020 is an increase of £600,530

11. Events after the end of the reporting period

In common with many businesses, the company is facing significant business disruption and uncertainty as a result of the economic and social impact of the global Covid-19 pandemic. The long-term consequences of the pandemic remain unknown as at the date of approving these financial statements. The situation is ongoing and the company is adopting a strategy to manage the everchanging circumstances as effectively as it can given its available resources.

12. Directors' advances, credits and guarantees

During the year the directors entered into the following advances and credits with the company:

	2021
	Balance brought forward	Advances/ (credits) to the directors	Balance outstanding
	£	£	£
Mr R Cullen	156,131	( 75,020)	81,111
	--------	-------	-------

	2020
	Balance brought forward	Advances/ (credits) to the directors	Balance outstanding
	£	£	£
Mr R Cullen	36,691	119,440	156,131
	-------	--------	--------

13. Related party transactions

The company was jointly owened by Fire Protection Recycling Limited and Tennals Limited,both companies of which Mr R Cullen is the majority shareholder. Mr R Cullen is also one of the managing directors of Tennals Group Limited. Fire Protection Recycling Limited are a joint shareholder in Tennals Group Limited. During the period the company supplied goods and services of £37,816 (2020: £5,857) to Fire Protection Recycling Limited. Purchases of £56,546 (2020: £32,687) were also made from Fire Protection Recycling Limited. At the year end there was an intercompany creditor balance of £696,022 (2020: £833,464) due to Tennals Group Limited.