Cool Space ACR Limited - Limited company accounts 17.3

REGISTERED NUMBER: 07845327 (England and Wales)

REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2017

FOR

COOL SPACE ACR LIMITED

Page

Company Information

1

Report of the Director

2

Report of the Independent Auditors

3

Income Statement

5

Balance Sheet

6

Notes to the Financial Statements

7

DIRECTOR:

A D Wood

SECRETARY:

G Danilewicz

REGISTERED OFFICE:

4 Ambley Green

Gillingham Business Park

Gillingham

Kent

ME8 0NJ

REGISTERED NUMBER:

07845327 (England and Wales)

AUDITORS:

RJP LLP

Chartered Certified Accountants &

Statutory Auditors

2 AC Court

High Street

Thames Ditton

Surrey

KT7 0SR

The director presents his report with the financial statements of the company for the year ended 30 September 2017.

PRINCIPAL ACTIVITY

Cool Space ACR Limited is trading through the defects and warranty periods of its completed contracts.

REVIEW OF BUSINESS

Cool Space ACR Limited is trading through the defects and warranty periods of its completed contracts.

DIRECTOR

A D Wood held office during the whole of the period from 1 October 2016 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing 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 he 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;

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 him to ensure that the financial statements comply with the Companies Act 2006. He 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.

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 he has taken all the steps that he ought to have taken as a

director in order to make himself aware of any relevant audit information and to establish that the company's auditors

are aware of that information.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small

companies.

ON BEHALF OF THE BOARD:

A D Wood - Director

14 December 2017

Opinion

We have audited the financial statements of Cool Space ACR Limited (the 'company') for the year ended

30 September 2017 which comprise the Income Statement, Balance Sheet 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).

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.

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 30 September 2017 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 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 Auditors' 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.

Material uncertainty related to going concern

We draw attention to note 14 in the financial statements, which indicates that the company has accumulated losses in

excess of net assets at the balance sheet date and bank borrowings that are secured against other group

companies.These events or conditions, along with other matters as set out in note 14, indicate that a material

uncertainty exists that may cast doubt on the company's ability to continue as a going concern. Our opinion is not

modified in respect of this matter.

Other information

The director is responsible for the other information. The other information comprises the information in 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 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, 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.

Opinion 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 Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Director has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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 Report of the Director.

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 director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit; or

-	the director was not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Director.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities, 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.

Our 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.

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.

Simon Paterson (Senior Statutory Auditor)

for and on behalf of RJP LLP

Chartered Certified Accountants &

Statutory Auditors

2 AC Court

High Street

Thames Ditton

Surrey

KT7 0SR

18 December 2017

TURNOVER

-

46,795

Cost of sales

(3,353

)

10,493

GROSS PROFIT

3,353

36,302

Administrative expenses

9,417

12,148

OPERATING (LOSS)/PROFIT

3

(6,064

)

24,154

Interest payable and similar expenses

25,898

-

(LOSS)/PROFIT BEFORE TAXATION

(31,962

)

24,154

Tax on (loss)/profit

4

-

-

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(31,962

)

24,154

FIXED ASSETS

Intangible assets

5

-

-

Tangible assets

6

-

6,306

-

6,306

CURRENT ASSETS

Debtors

7

7,211

13,968

CREDITORS

Amounts falling due within one year

8

2,007,693

1,988,794

NET CURRENT LIABILITIES

(2,000,482

)

(1,974,826

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(2,000,482

)

(1,968,520

)

CAPITAL AND RESERVES

Called up share capital

10

100

100

Retained earnings

11

(2,000,582

)

(1,968,620

)

SHAREHOLDERS' FUNDS

(2,000,482

)

(1,968,520

)

The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

The financial statements were approved by the director on 14 December 2017 and were signed by:

A D Wood - Director

1.	STATUTORY INFORMATION

Cool Space ACR Limited is a private company, limited by shares , registered in England and Wales. The company's

registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of 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.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The

Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party

transactions with wholly owned subsidiaries within the group.

Turnover

Turnover represents revenue earned under a wide variety of contracts to provide mechanical and air conditioning

services. Revenue is recognised as earned when, and to the extent that, the company obtains the right to

consideration in exchange for its performance under these contracts. It is measured at the fair value of the right

to consideration, which includes an appropriate element of attributable profit (exclusive of Value Added Tax).

Revenue is generally recognised as contract activity progresses so that for incomplete contracts it reflects the

partial performance of the contractual obligations. For such contracts the amount of revenue recorded reflects

the accrual of the right to consideration by reference to the value of work performed.

Goodwill

Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of identifiable

assets and liabilities. Goodwill is recognised within fixed assets in the year in which it arises, it has subsequently

been fully impaired.

Tangible fixed assets

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off

the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following

bases:

Motor vehicles

-

25% on cost

Office equipment

-

10% on cost

The carrying values of tangible fixed assets are reviewed for impairment when events or changes in

circumstances indicate that the carrying value may not be recoverable.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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.

3.	OPERATING (LOSS)/PROFIT

The operating loss (2016 - operating profit) is stated after charging:

30.9.17

30.9.16

£

£

Depreciation - owned assets

6,306

6,484

Auditors' remuneration

1,750

3,850

4.

TAXATION

Analysis of the tax charge

No liability to UK corporation tax arose for the year ended 30 September 2017 nor for the year ended

30 September 2016.

5.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 October 2016

and 30 September 2017

81,947

AMORTISATION

At 1 October 2016

and 30 September 2017

81,947

NET BOOK VALUE

At 30 September 2017

-

At 30 September 2016

-

6.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1 October 2016

and 30 September 2017

62,877

DEPRECIATION

At 1 October 2016

56,571

Charge for year

6,306

At 30 September 2017

62,877

NET BOOK VALUE

At 30 September 2017

-

At 30 September 2016

6,306

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.9.17

30.9.16

£

£

Other debtors

7,211

13,968

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.9.17

30.9.16

£

£

Bank loans and overdrafts

781,966

718,287

Trade creditors

-

19,240

Amounts owed to group undertakings

1,225,727

1,225,727

Other creditors

-

25,540

2,007,693

1,988,794

The bank loans and overdrafts are secured under a group facility in the name of DMA Group Limited. The group

facility is secured by an unlimited inter-company composite guarantee by the group members and a first legal

charge over a fellow subsidiary's freehold property and its associated assets.

9.	SECURED DEBTS

The director of the parent company, S W Kingsman, has provided a personal guarantee, limited to £750,000, for

all amounts due to the group's bankers.

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

30.9.17

30.9.16

value:

£

£

100

Ordinary

£1.00

100

100

11.

RESERVES

Retained

earnings

£

At 1 October 2016

(1,968,620

)

Deficit for the year

(31,962

)

At 30 September 2017

(2,000,582

)

12.	CONTINGENT LIABILITIES

The company is party to a composite cross guarantee given to the group's bankers, covering the bank overdrafts

of the companies within the DMA Group Limited group. The potential liability at the balance sheet date was

£2,589,867 (2016 - £2,090,665).

13.	ULTIMATE PARENT COMPANY

The immediate and ultimate controlling parent undertaking is DMA Group Limited, which is registered in England

and has the same registered office as that of Cool Space ACR Limited. Copies of that company's group financial

statements may be obtained from the Registrar of Companies.

14.	GOING CONCERN

At the balance sheet date the company has accumulated losses in excess of net assets. The company meets its

day to day working capital requirements through a group banking facility. The facility is part of a group

arrangement involving Kingsman (Holdings) Limited, a fellow subsidiary undertaking, secured by a first charge on

the subsidiary's freehold property and an inter-company composite cross guarantee, along with a personal

guarantee given by S W Kingsman.

On this basis, the directors consider it appropriate to prepare the financial statements on the going concern basis.

The financial statements do not include any adjustment that would result from the company not being a going

concern.

At the year end the company is trading through the defects and warranty periods of its completed contracts.