Hewaswater Engineering Ltd - Accounts to registrar (filleted) - small 17.3

REGISTERED NUMBER: 01957026 (England and Wales)

Unaudited Financial Statements

for the Year Ended 31 March 2017

for

HEWASWATER ENGINEERING LTD

Page

Company Information

1

Balance Sheet

2

to

3

Notes to the Financial Statements

4

to

11

DIRECTORS:

MEF James

RW James

SECRETARY:

E James

REGISTERED OFFICE:

Hewaswater

Sticker

St Austell

Cornwall

PL26 7LF

REGISTERED NUMBER:

01957026 (England and Wales)

ACCOUNTANTS:

Kelsall Steele Ltd

Chartered Accountants

Woodlands Court

Truro Business Park

Truro

Cornwall

TR4 9NH

FIXED ASSETS

Intangible assets

4

-

-

Tangible assets

5

579,786

236,709

Investments

6

1

1

579,787

236,710

CURRENT ASSETS

Stocks

24,894

24,894

Debtors

7

1,633,879

1,594,030

Cash at bank and in hand

114,695

22,178

1,773,468

1,641,102

CREDITORS

Amounts falling due within one year

8

866,771

299,440

NET CURRENT ASSETS

906,697

1,341,662

TOTAL ASSETS LESS CURRENT LIABILITIES

1,486,484

1,578,372

CREDITORS

Amounts falling due after more than one year

9

(34,363

)

(54,512

)

PROVISIONS FOR LIABILITIES

12

(44,780

)

(34,858

)

NET ASSETS

1,407,341

1,489,002

CAPITAL AND RESERVES

Called up share capital

13

101

101

Retained earnings

1,407,240

1,488,901

SHAREHOLDERS' FUNDS

1,407,341

1,489,002

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2017.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2017 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors on 28 December 2017 and were signed on its behalf by:

MEF James - Director

1.	STATUTORY INFORMATION

Hewaswater Engineering Ltd 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

The financial statements have been prepared in accordance with Financial Reporting Standard 102

Section 1A "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 except for the modification to a fair value basis for certain financial instruments as specified

in the accounting policies below.

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

Monetary amounts in these financial statements are rounded to the nearest pound sterling.

The director, after making enquiries and having considered the company's business, its financial plans

and the facilities available to finance the business, has a reasonable expectation that the company has

adequate resources to continue in operational existence for the foreseeable future. Accordingly, the

going concern basis is adopted in preparing the financial statements.

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 the total invoice value, excluding value added tax, of sales made during the

period.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2002, is being amortised evenly over its estimated useful life of ten years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured

at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Tangible assets are initially measured at cost. Such costs include costs directly attributable to making

the asset capable of operating as intended. Subsequent to initial recognition, tangible assets such as

plant and machinery, fixtures and fittings and motor vehicles are stated at cost less accumulated

depreciation and accumulated impairment.

Tangible assets are depreciated as follows:

Solar panels

-

Straight line over 25 years

Plant and machinery

-

10% Straight line

Fixtures, fittings and equipment

-

25% Straight line

Motor vehicles

-

25% Straight line

Impairment of fixed assets

At each reporting end date, the company reviews the carrying amounts of its tangible assets to

determine whether there is any indication that those assets have suffered an impairment loss. If any

such indication exists, the recoverable amount of the asset is estimated in order to determine the

extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of

an individual asset, the company estimates the recoverable amount of the cash-generating unit to

which the asset belongs.

The recoverable amount is the higher of fair value less costs to sell and value in use. In assessing

value in use, the estimated future cash flows are discounted to their present value using a pre-tax

discount rate that reflects current market assessments of the time value of money and the risks

specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying

amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable

amount. An impairment loss is recognised immediately in profit or loss.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have

ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset

(or cash generating unit) is increased to the revised estimate of its recoverable amount, but so that the

increased carrying amount does not exceed the carrying amount that would have been determined had

no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of

an impairment loss is recognised immediately in profit or loss.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for

obsolete and slow moving items.

Financial instruments

The company has elected to apply the provisions of Section 11 "Basic Financial Instruments" and

Section 12 "Other Financial Instruments" of FRS102 to all of its financial instruments.

Financial assets and liabilities are recognised in the company's statement of financial position when

the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are classified into specified categories. The classification depends on

the nature and purpose of the financial asset or liability and is determined at the time of recognition.

Basic financial assets, which include trade and other receivables, including staff loans and cash and

bank balances, are initially measured at transaction price including transaction costs and are

subsequently carried at amortised cost using the effective interest method, 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.

Basic financial liabilities, which include trade and other payables are initially measured at transaction

price, unless the arrangement constitutes a financing transaction, where the debt instrument is

measured at the present value of the future payments discounted at a market rate of interest.

Other financial assets and / or liabilities are initially measured at their fair value, which is normally the

transaction price and are subsequently carried at fair value with all changes being recognised in the

profit or loss.

Financial liabilities are derecognised when, and only when, the company's obligations are discharged,

cancelled, or they expire.

Taxation

The tax expense represents the sum of the current tax expense and deferred tax expense. Current

tax assets are recognised when tax paid exceeds the tax payable.

Current and deferred tax is charged or credited to the profit or loss, except when it relates to items

charged or credited to other comprehensive income or equity, when the tax follows the transaction or

event it relates to and is also charged or credited to other comprehensive income, or equity.

Current tax assets and current tax liabilities as well as deferred tax assets and deferred tax liabilities

are offset, if and only if, there is a legally enforceable right to set off the amounts and the entity intends

either to settle on the net basis or to realise the asset and settle the liability simultaneously.

Current tax is based on taxable profit for the year. Taxable profit differs from total comprehensive

income because it excludes item of income or expense that are taxable or deductible in other periods.

Current tax assets and liabilities are measured using tax rates that have been enacted or substantively

enacted by the reporting period.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at

the balance sheet date where transactions or events have occured at that date that will result in an

obligation to pay more, or a right to pay less or to receive more tax, with the following exceptions:

Deferred tax assets are recognised only to the extent that the directors consider that it is more likely

than not that there will be suitable taxable profits from which the future reversal of the underlying timing

differences can be deducted.

Deferred tax is measures on an undiscounted basis at the tax rates that are expected to apply in the

periods in which timing differences reverse, base don tax rates and laws enacted or substantively

enacted at the balance sheet date.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets

and depreciated over the shorter of the lease term and their useful lives. Obligations under such

agreements are included in creditors net of the finance charge allocated to future periods. The finance

element of the rental payment is charged to the profit and loss account so as to produce constant

periodic rates of charge on the net obligations outstanding in each period.

Pension costs

The company operates a defined contribution pension scheme. Contributions payable to the

company's pension scheme are charged to profit or loss in the period to which they relate.

Long term contracts

Amounts recoverable on long term contracts which are included in debtors are stated at the net sales

value of the work done after provisions for contingencies and anticipated future losses on contracts,

less amounts received as progress payments on account. Excess progress payments are included in

creditors as payments received on account.

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those

costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee's

services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably

committed to terminate the employment of any employee or to provide termination benefits

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 29 (2016 - 26 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 April 2016

and 31 March 2017

40,000

AMORTISATION

At 1 April 2016

and 31 March 2017

40,000

NET BOOK VALUE

At 31 March 2017

-

At 31 March 2016

-

5.	TANGIBLE FIXED ASSETS

Land and

Solar

Plant and

buildings

panels

machinery

£

£

£

COST

At 1 April 2016

-

101,960

709,158

Additions

122,382

-

218,290

At 31 March 2017

122,382

101,960

927,448

DEPRECIATION

At 1 April 2016

-

4,282

593,964

Charge for year

-

4,078

36,474

At 31 March 2017

-

8,360

630,438

NET BOOK VALUE

At 31 March 2017

122,382

93,600

297,010

At 31 March 2016

-

97,678

115,194

Fixtures,

fittings

and

Motor

equipment

vehicles

Totals

£

£

£

COST

At 1 April 2016

126,936

62,375

1,000,429

Additions

9,941

49,495

400,108

At 31 March 2017

136,877

111,870

1,400,537

DEPRECIATION

At 1 April 2016

119,331

46,143

763,720

Charge for year

4,243

12,236

57,031

At 31 March 2017

123,574

58,379

820,751

NET BOOK VALUE

At 31 March 2017

13,303

53,491

579,786

At 31 March 2016

7,605

16,232

236,709

Included within the above are assets held under finance leases or hire purchase contracts as follows:

2017

2016

Net Book Value

Depreciation Charge

Net Book Value

Depreciation Charge

£

£

£

£

Plant and machinery

19,449

2,629

22,078

2,629

Solar panels

93,600

4,078

97,678

3,752

Total

113,048

6,707

119,756

6,381

6.	FIXED ASSET INVESTMENTS

Shares in

group

undertaking

£

COST

At 1 April 2016

and 31 March 2017

1

NET BOOK VALUE

At 31 March 2017

1

At 31 March 2016

1

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade debtors

423,357

385,333

Amounts owed by group undertakings

1,037,412

1,005,882

Amounts recoverable on contract

144,033

168,753

Other debtors

29,077

34,062

1,633,879

1,594,030

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Bank loans and overdrafts

-

17,080

Hire purchase contracts (see note 10)

20,149

24,362

Payments on account

36,820

44,020

Trade creditors

720,257

110,707

Taxation and social security

80,098

94,739

Other creditors

9,447

8,532

866,771

299,440

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2017

2016

£

£

Hire purchase contracts (see note 10)

34,363

54,512

10.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2017

2016

£

£

Net obligations repayable:

Within one year

20,149

24,362

Between one and five years

34,363

54,512

54,512

78,874

Non-cancellable

operating leases

2017

2016

£

£

Within one year

1,139

1,139

Between one and five years

2,278

3,418

3,417

4,557

11.	SECURED DEBTS

The following secured debts are included within creditors:

2017

2016

£

£

Hire purchase contracts

54,512

-

Hire purchases are secured against the assets to which they relate.

Debenture

A legal charge by way of a mortgage is secured against the assets of the company.

12.	PROVISIONS FOR LIABILITIES

2017

2016

£

£

Deferred tax

44,780

34,858

Deferred

tax

£

Balance at 1 April 2016

34,858

Movement in the year

9,922

Balance at 31 March 2017

44,780

13.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2017

2016

value:

£

£

100

Ordinary

£1

100

100

1

Ordinary preference

£1

1

1

101

101

Ordinary preference shares do not entitle the holder to receive notice or vote at any general meeting of

the company.

14.	PENSION COMMITMENTS

The company operates a defined contribution pension scheme. The total contributions made by the

company for directors and other employees totalled £2,257 (2016: £2,715). At the balance sheet date

the company owed the scheme £3441 (2016: £3,129).

15.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 March 2017 and

31 March 2016:

2017

2016

£

£

MEF James

Balance outstanding at start of year

19,091

25,624

Amounts advanced

10,145

19,927

Amounts repaid

(19,375

)

(26,460

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

9,861

19,091

RW James

Balance outstanding at start of year

14,196

8,318

Amounts advanced

53,221

14,248

Amounts repaid

(50,684

)

(8,370

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

16,733

14,196

Interest at the official rate has been charged on loans to the directors.

16.	CONTROLLING PARTY

Hewaswater Holding have a controlling interest by virtue of the majority shareholder being Hewaswater

Holdings Limited, the ultimate parent company of Hewaswater Engineering Limited.

17.	ULTIMATE CONTROLLING PARTY

MEF James is the ultimate controlling party by virtue of his majority shareholding in the parent

company Hewaswater Holdings Limited.