T4 Mechanical and Electrical Ltd - Period Ending 2022-08-30
T4 Mechanical and Electrical Ltd - Period Ending 2022-08-30
Registration number:
T4 Mechanical and Electrical Ltd
for the Year Ended 30 August 2022
T4 Mechanical and Electrical Ltd
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account |
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Statement of Comprehensive Income |
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Balance Sheet |
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Statement of Changes in Equity |
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Statement of Cash Flows |
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Notes to the Financial Statements |
T4 Mechanical and Electrical Ltd
Company Information
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Directors |
Mr Jason Clout Mr Jeffrey Michael Prince Mr Dean Clout |
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Registered office |
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Auditors |
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T4 Mechanical and Electrical Ltd
Strategic Report for the Year Ended 30 August 2022
The directors present their strategic report for the year ended 30 August 2022.
Principal activity
The principal activity of the company is Mechanical and Electrical Contracting.
Fair review of the business
The performance of the Company during 2022 was steady through Q1 and Q2 with turnover increasing in Q3 and Q4 finishing the year in a strong position. The number and value of orders being placed increased throughout 2022 mainly due to projects which had been delayed in previous years due to economic events.
The Company was effected by rising material and labour prices which continue to rise, where possible action was taken to mitigate these effects, however profit margins in the short term are expected to be below the normal whilst legacy projects are completed.
The company's key financial and other performance indicators during the year were as follows:
|
Financial KPIs |
Unit |
2022 |
2021 |
|
Return On Capital Employed |
% |
41 |
26 |
|
Debtor days |
days |
110 |
96 |
|
Quick (Acid Test) Ratio |
2 |
1 |
Principal risks and uncertainties
The principal risks and uncertainties now for the business are the strength and output of the construction industry due to inflation in the last twelve months and the rise in the bank of England interest rates. Output in construction is expected to reduce by approx. 10% with the housing sector expecting a deeper decrease in output than the general construction industry. The Company has a strong order book for 2023 that it expects will see the company through until output levels rise again in 2024 once the economy has stabilised.
The above, and the cost of living crisis, is still impacting profit margins with material and labour prices continuing to rise, all be it at a slower rate than in the previous twelve months.
Approved and authorised by the
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T4 Mechanical and Electrical Ltd
Directors' Report for the Year Ended 30 August 2022
The directors present their report and the financial statements for the year ended 30 August 2022.
Directors of the company
The directors who held office during the year were as follows:
Future developments
Market Conditions in 2022 were challenging due to the cost of living crisis, inflation and rising interest rates. It is expected that whilst growth of the UK economy will remain flat throughout 2023, market conditions will improve with inflation returning to normal levels and interest rates stabilising. A slight decrease in output of the UK construction industry is expected in 2023, returning to growth in 2024.
The Company is well positioned to remain buoyant throughout these challenging economic times by operating across different sections of the UK construction market, with a strong order book going into 2023 with project ranging from commercial to residential.
Going concern
The Company's business is a Mechanical and Electrical Contractor. The company works in both the commercial and residential market and currently has orders secured in the region of £26m. The level of orders and cash balances give comfort to the ability of the company to trade successfully. Further detail about uncertainty and going concern are in the strategic report.
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Reappointment of auditors
In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Pure Audit Limited as auditors of the company is to be proposed at the forthcoming Annual General Meeting.
Approved and authorised by the
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......................................... |
T4 Mechanical and Electrical Ltd
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have 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 directors must not approve the financial statements unless they are 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 directors are required to:
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• |
select suitable accounting policies and apply them consistently; |
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• |
make judgements and accounting estimates that are reasonable and prudent; |
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• |
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are 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 them to ensure that the financial statements comply with the Companies Act 2006. They are 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.
T4 Mechanical and Electrical Ltd
Independent Auditor's Report to the Members of T4 Mechanical and Electrical Ltd
Opinion
We have audited the financial statements of T4 Mechanical and Electrical Ltd (the 'company') for the year ended 30 August 2022, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and 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 the financial statements:
• | give a true and fair view of the state of the company's affairs as at 30 August 2022 and of its profit 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 requirements of the Companies Act 2006. |
Basis for opinion
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 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 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 original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
T4 Mechanical and Electrical Ltd
Independent Auditor's Report to the Members of T4 Mechanical and Electrical Ltd
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Directors' Report.
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:
• | adequate accounting records have not been kept, or 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 directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 4], the directors are 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 directors determine is 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 directors are 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 directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor 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 an auditor’s report 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:
T4 Mechanical and Electrical Ltd
Independent Auditor's Report to the Members of T4 Mechanical and Electrical Ltd
Extent to which the audit was considered capable of detecting irregularities, including fraud
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
The nature of the industry and sector, control environment and business performance including the design of the Company’s remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets;
results of our enquiries of management about their own identification and assessment of the risks of irregularities and any matters we identified having reviewed the Company’s policies and procedures;
the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in relation to revenue recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the Company operates in and focused on those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act 2006 and local tax legislation.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company’s ability to operate or to avoid a material fine or penalty.
Audit response to risks identified
As a result of performing the above, we identified revenue recognition as a key audit matter related to the potential risk of fraud. Our procedures to respond to risks identified included the following:
• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
• enquiring of management, concerning actual and potential litigation and claims;
• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
• obtaining an understanding of provisions and discussing with management to understand the basis of recognition or non-recognition of tax provisions; and
• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
T4 Mechanical and Electrical Ltd
Independent Auditor's Report to the Members of T4 Mechanical and Electrical Ltd
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 an auditor’s report 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.
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For and on behalf of
76 Canterbury Innovation Centre
University Road
Kent
CT2 7FG
T4 Mechanical and Electrical Ltd
Profit and Loss Account for the Year Ended 30 August 2022
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Note |
2022 |
2021 |
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|
Turnover |
|
|
|
|
Cost of sales |
( |
( |
|
|
Gross profit |
|
|
|
|
Administrative expenses |
( |
( |
|
|
Other operating income |
- |
|
|
|
Operating profit |
993,855 |
286,011 |
|
|
Other interest receivable and similar income |
|
|
|
|
Interest payable and similar expenses |
( |
( |
|
|
(71,888) |
(37,623) |
||
|
Profit before tax |
|
|
|
|
Tax on profit |
( |
( |
|
|
Profit for the financial year |
|
|
The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
T4 Mechanical and Electrical Ltd
Statement of Comprehensive Income for the Year Ended 30 August 2022
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2022 |
2021 |
|
|
Profit for the year |
|
|
|
Total comprehensive income for the year |
|
|
T4 Mechanical and Electrical Ltd
(Registration number: 06881322)
Balance Sheet as at 30 August 2022
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Note |
2022 |
2021 |
|
|
Fixed assets |
|||
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Tangible assets |
|
|
|
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Current assets |
|||
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Stocks |
|
|
|
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Debtors |
|
|
|
|
Cash at bank and in hand |
|
|
|
|
|
|
||
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Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current assets |
|
|
|
|
Total assets less current liabilities |
|
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
|
Provisions for liabilities |
( |
( |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
100 |
100 |
|
|
Retained earnings |
1,725,947 |
1,296,825 |
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|
Shareholders' funds |
1,726,047 |
1,296,925 |
Approved and authorised by the
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T4 Mechanical and Electrical Ltd
Statement of Changes in Equity for the Year Ended 30 August 2022
|
Share capital |
Retained earnings |
Total |
|
|
At 31 August 2021 |
|
|
|
|
Profit for the year |
- |
|
|
|
Dividends |
- |
( |
( |
|
At 30 August 2022 |
|
|
|
|
Share capital |
Retained earnings |
Total |
|
|
At 1 September 2020 |
|
|
|
|
Profit for the year |
- |
|
|
|
Dividends |
- |
( |
( |
|
At 30 August 2021 |
|
|
|
T4 Mechanical and Electrical Ltd
Statement of Cash Flows for the Year Ended 30 August 2022
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Note |
2022 |
2021 |
|
|
Cash flows from operating activities |
|||
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Profit for the year |
|
|
|
|
Adjustments to cash flows from non-cash items |
|||
|
Depreciation and amortisation |
|
|
|
|
(Profit)/loss on disposal of tangible assets |
( |
|
|
|
Finance income |
( |
( |
|
|
Finance costs |
|
|
|
|
Income tax expense |
|
|
|
|
|
|
||
|
Working capital adjustments |
|||
|
Increase in stocks |
( |
( |
|
|
Increase in trade debtors |
( |
( |
|
|
Increase in trade creditors |
|
|
|
|
Cash generated from operations |
( |
|
|
|
Income taxes paid |
( |
( |
|
|
Net cash flow from operating activities |
( |
( |
|
|
Cash flows from investing activities |
|||
|
Interest received |
|
|
|
|
Acquisitions of tangible assets |
( |
( |
|
|
Proceeds from sale of tangible assets |
|
- |
|
|
Net cash flows from investing activities |
( |
( |
|
|
Cash flows from financing activities |
|||
|
Interest paid |
( |
( |
|
|
Proceeds from bank borrowing draw downs |
( |
|
|
|
Repayment of other borrowing |
|
- |
|
|
Payments to finance lease creditors |
( |
( |
|
|
Dividends paid |
( |
( |
|
|
Net cash flows from financing activities |
|
( |
|
|
Net decrease in cash and cash equivalents |
( |
( |
|
|
Cash and cash equivalents at 31 August |
|
|
|
|
Cash and cash equivalents at 30 August |
446,921 |
808,298 |
|
T4 Mechanical and Electrical Ltd
Notes to the Financial Statements for the Year Ended 30 August 2022
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
UK
The principal place of business is:
36 Ormside Way
Redhill
Surrey
RH1 2LW
UK
These financial statements were authorised for issue by the
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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 were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom 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.
Going concern
The financial statements have been prepared on a going concern basis.
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 sales/value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
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.
T4 Mechanical and Electrical Ltd
Notes to the Financial Statements for the Year Ended 30 August 2022
The current income 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 |
|
Fixtures & fittings |
25% reducing balance |
|
Computer equipment |
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.
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 cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
T4 Mechanical and Electrical Ltd
Notes to the Financial Statements for the Year Ended 30 August 2022
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
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.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
|
Turnover |
The analysis of the company's revenue for the year from continuing operations is as follows:
T4 Mechanical and Electrical Ltd
Notes to the Financial Statements for the Year Ended 30 August 2022
|
Year ended 30 August 2022 |
1 September 2020 to 30 August 2021 |
|
|
Sale of goods |
|
|
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
|
Year ended 30 August 2022 |
1 September 2020 to 30 August 2021 |
|
|
Government grants |
- |
|
|
Other gains and losses |
The analysis of the company's other gains and losses for the year is as follows:
|
Year ended 30 August 2022 |
1 September 2020 to 30 August 2021 |
|
|
Gain/loss on disposal of property, plant and equipment |
|
( |
|
Operating profit |
Arrived at after charging/(crediting)
|
Year ended 30 August 2022 |
1 September 2020 to 30 August 2021 |
|
|
Depreciation expense |
|
|
|
Operating lease expense - plant and machinery |
|
( |
|
Operating lease expense - other |
10,356 |
12,548 |
|
(Profit)/loss on disposal of property, plant and equipment |
( |
|
|
Other interest receivable and similar income |
|
Year ended 30 August 2022 |
1 September 2020 to 30 August 2021 |
|
|
Interest income on bank deposits |
|
|
T4 Mechanical and Electrical Ltd
Notes to the Financial Statements for the Year Ended 30 August 2022
|
Interest payable and similar expenses |
|
Year ended 30 August 2022 |
1 September 2020 to 30 August 2021 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
|
Interest expense on other finance liabilities |
|
|
|
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
Year ended 30 August 2022 |
1 September 2020 to 30 August 2021 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Other post-employment benefit costs |
|
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
|
2022 |
2021 |
|
|
Production |
|
|
|
Administration and support |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
Year ended 30 August 2022 |
1 September 2020 to 30 August 2021 |
|
|
Remuneration |
|
|
T4 Mechanical and Electrical Ltd
Notes to the Financial Statements for the Year Ended 30 August 2022
|
Auditors' remuneration |
|
Year ended 30 August 2022 |
1 September 2020 to 30 August 2021 |
|
|
Audit of the financial statements |
|
|
|
Taxation |
Tax charged/(credited) in the income statement
|
Year ended 30 August 2022 |
1 September 2020 to 30 August 2021 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
Deferred taxation |
||
|
Arising from changes in tax rates and laws |
|
( |
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2021 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2022 |
2021 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Effect of revenues exempt from taxation |
( |
- |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Tax (decrease)/increase from effect of capital allowances and depreciation |
( |
|
|
Tax increase/(decrease) from other short-term timing differences |
|
( |
|
Other tax effects for reconciliation between accounting profit and tax expense (income) |
- |
( |
|
Total tax charge |
|
|
T4 Mechanical and Electrical Ltd
Notes to the Financial Statements for the Year Ended 30 August 2022
|
Tangible assets |
|
Furniture, fittings and equipment |
Motor vehicles |
Other tangible assets |
Total |
|
|
Cost or valuation |
||||
|
At 31 August 2021 |
|
|
|
|
|
Additions |
|
|
- |
|
|
Disposals |
- |
( |
- |
( |
|
At 30 August 2022 |
|
|
|
|
|
Depreciation |
||||
|
At 31 August 2021 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
Eliminated on disposal |
- |
( |
- |
( |
|
At 30 August 2022 |
|
|
|
|
|
Carrying amount |
||||
|
At 30 August 2022 |
|
|
|
|
|
At 30 August 2021 |
|
|
|
|
|
Stocks |
|
30 August 2022 |
30 August 2021 |
|
|
Other inventories |
|
|
|
Debtors |
|
30 August 2022 |
30 August 2021 |
|
|
Trade debtors |
|
|
|
Other debtors |
|
|
|
Prepayments |
|
|
|
Gross amount due from customers for contract work |
|
|
|
Total current trade and other debtors |
|
|
|
Cash and cash equivalents |
|
30 August 2022 |
30 August 2021 |
|
|
Cash at bank |
|
|
|
Short-term deposits |
|
|
|
|
|
T4 Mechanical and Electrical Ltd
Notes to the Financial Statements for the Year Ended 30 August 2022
|
Creditors |
|
Note |
30 August 2022 |
30 August 2021 |
|
|
Due within one year |
|||
|
Loans and borrowings |
|
|
|
|
Trade creditors |
|
|
|
|
Social security and other taxes |
|
|
|
|
Outstanding defined contribution pension costs |
|
|
|
|
Other payables |
|
|
|
|
Accrued expenses |
|
|
|
|
Income tax liability |
172,277 |
135,171 |
|
|
|
|
||
|
Due after one year |
|||
|
Loans and borrowings |
|
|
|
Provisions for liabilities |
|
Deferred tax |
Total |
|
|
At 31 August 2021 |
|
|
|
Increase (decrease) in existing provisions |
|
|
|
At 30 August 2022 |
|
|
|
|
||
|
Share capital |
Allotted, called up and fully paid shares
|
2022 |
2021 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
100 |
|
100 |
|
Loans and borrowings |
|
30 August 2022 |
30 August 2021 |
|
|
Non-current loans and borrowings |
||
|
Bank borrowings |
|
|
|
HP and finance lease liabilities |
|
|
|
Other borrowings |
|
- |
|
|
|
|
T4 Mechanical and Electrical Ltd
Notes to the Financial Statements for the Year Ended 30 August 2022
|
30 August 2022 |
30 August 2021 |
|
|
Current loans and borrowings |
||
|
Bank borrowings |
|
|
|
HP and finance lease liabilities |
|
|
|
Other borrowings |
|
|
|
|
|
|
Bank borrowings
|
The loan term is 5 years with no capital repayments in the first year. The loan is being repaid in monthly instalments of £833 each. |
|
The loan is repayable monthly for a period of 3 years. The loan is being repaid in monthly instalments of £1,465 each. |
|
The loan is secured via a fixed and floating charge over all property or undertaking of the company. |
|
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
|
2022 |
2021 |
|
|
Not later than one year |
|
- |
|
Later than one year and not later than five years |
|
- |
|
|
- |
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
|
Dividends |
Interim dividends paid
T4 Mechanical and Electrical Ltd
Notes to the Financial Statements for the Year Ended 30 August 2022
|
2022 |
2021 |
|||
|
Interim dividend of £ |
|
|
||
Interim dividends paid
|
2022 |
2021 |
|||
|
Interim dividend of £ |
|
|
||
|
Related party transactions |
T4 Mechanical and Electrical Ltd
Notes to the Financial Statements for the Year Ended 30 August 2022
|
Other transactions with directors |
The company supplied materials worth £76,510 to its directors. At the year end, the directors owed £76,510 to the company.
Summary of transactions with entities with joint control or significant interest
During the year, purchases of £215,795 (2021: £197,269) were made from Lidex Control Systems Ltd, a company under common control. A balance of £31,959 was owed to Lidex Control Systems Ltd at the year end and is included within trade creditors.
Summary of transactions with other related parties
The company supplied materials worth £49,662 to L Clout, an employee of the company. At the year end, L Clout owed £46,945 to the company.
The company supplied materials worth £3,432 to M Gibbens, an employee of the company. At the year end, M Gibbens owed £1,019 to the company.