TORANDCO_LIMITED - Accounts

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime with Part 15 of the Companies Act 2006.

Torandco Limited is a private company limited by shares incorporated in England and Wales under the Companies Act 2006. The registered office is Everdene House, Deansleigh Road, Bournemouth, Dorset, United Kingdom, BH7 7DU.

These financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The preparation of financial statements in compliance with Section 1A of FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies.

The following principal accounting policies have been applied:

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts and value added tax. The following criteria must also be met before turnover is recognised:

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

•     the amount of turnover can be measured reliably;

•     it is probable that the company will receive the consideration due under the contract;

•     the stage of completion of the contract at the end of the reporting period can be measured reliably; and

•     the costs incurred and the costs to complete the contract can be measured reliably.

Turnover which has been recognised but not invoiced by the balance sheet date is included in debtors within accrued income. Full provision is made for losses on all contracts in the period in which they are first foreseen.

Tangible fixed assets are measured at historic cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Historical cost include expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Repairs and maintenance are charged to the statement of profit and loss during the period in which they are incurred.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of significant change since the last reporting date.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

All borrowing costs are recognised in the statement of profit and loss in the year in which they are incurred.

The tax expense represents the sum of the tax currently payable and deferred tax.

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

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

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

•     the recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

•     any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the difference between fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contribution into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as expenses in the statement of profit and loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Rentals paid/received under operating leases are charged/credited to the statement of profit and loss on a straight line basis over the period of the lease.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Debtors

Trade debtors are recognised initially at the transaction price, less any 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.

Creditors

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

In preparing these financial statements, the directors have made the following judgements:

Determine whether leases entered into by the group either as a lessor or a lessee are operating finance leases. The decisions depend on an assessment of whether the risks and rewards ownership have been transferred from the lessor to the lessee on a lease by lease basis.

The accounting policies detail the treatment of work in progress and related revenue recognition. The key estimate relates to the period in which the work was undertaken albeit this is based on time records and is therefore reasonably factual. This is considered an appropriate basis for the valuation of accrued income.

The average monthly number of employees, including the directors, during the year was:

Debtors falling due after more than one year totalled £58,912 (2022 - £68,258) and are included in other debtors and accrued income.

The company's capital and reserves are as follows:

Called up share capital

Called up share capital represents the nominal value of the shares issued.

Share premium account

The share premium account includes the premium on issue of equity shares, net of any issue costs.

Capital redemption reserve

The capital redemption reserve contains the nominal value of own shares that have been acquired by the company and cancelled.

Profit and loss reserve

The profit and loss reserve represents cumulative profits and losses, net of dividends paid, contributions to the EOT and other adjustments.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Interest free loans to directors totalled £12,509 (2022 - £6,831) and are included in other debtors. Amounts due in greater than one year included within this amount are £9,549 (2022 - £4,832).

Interest bearing loans include a loan to a director of £7,015 (2022 - £8,112) which is included in other debtors. Amounts due in greater than one year included within this amount are £5,715 (2022 - £6,912). Interest is charged at 2.5% (2022 - 2.5%).

On 17 December 2021 100% of the issued share capital of the parent company, TOR&CO Holdings Limited, was acquired by the TOR Employee Ownership Trust ("the Trust"). The Trust holds shares for the future benefit of the group's employees.

During the year, a gift of £775,000 (2022: £860,441) was made by the company to the Trust to finance instalment payments of the acquisition consideration. This has been treated as a contribution from the profit and loss reserve. Further contributions over the coming years are anticipated, being structured to be affordable by reference to cashflow requirements.

The smallest group in which the results of the company are consolidated is that headed by TOR&CO Holdings Limited. The registered address of TOR&CO Holdings Limited is Everdene House, Deansleigh Road, Bournemouth, Dorset, BH7 7DU.