Tower Heating Ltd. - Accounts to registrar (filleted) - small 18.1

REGISTERED NUMBER: 05292661 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2017

FOR

TOWER HEATING LTD.

Page

Company information

1

Balance sheet

2

Notes to the financial statements

4

Directors:

N A Tomlinson

G A Tomlinson

S N Tomlinson

Secretary:

N A Tomlinson

Registered office:

47a Liverpool Road

Formby

Liverpool

Merseyside

L37 6BT

Registered number:

05292661 (England and Wales)

Accountants:

MHA Moore and Smalley

Chartered Accountants

Hoghton Chambers

Hoghton Street

Southport

PR9 0TB

Fixed assets

Intangible assets

4

16,689

13,033

Tangible assets

5

64,525

53,932

81,214

66,965

Current assets

Stocks

3,000

3,000

Debtors

6

29,428

36,186

Cash at bank and in hand

134,422

76,775

166,850

115,961

Creditors

Amounts falling due within one year

7

141,909

98,505

Net current assets

24,941

17,456

Total assets less current liabilities

106,155

84,421

Creditors

Amounts falling due after more than one year

8

(17,873

)

(11,224

)

Provisions for liabilities

(10,683

)

(10,376

)

Net assets

77,599

62,821

Capital and reserves

Called up share capital

100

100

Retained earnings

77,499

62,721

Shareholders' funds

77,599

62,821

The Company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 September 2017.

The members have not required the Company to obtain an audit of its financial statements for the year ended 30 September 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 Profit and loss has not been delivered.

The financial statements were approved by the Board of Directors on 10 May 2018 and were signed on its behalf by:

G A Tomlinson - Director

1.	Statutory information

Tower Heating 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 FRS 102 "The Financial Reporting

Standard applicable in the UK and Republic of Ireland" ("FRS102") and the requirements of the

Companies Act 2006 as applicable to Companies subject to the small companies regime. The

disclosure requirements of Section 1A of FRS102 have been applied other than where additional

disclosure is required to show a true and fair view.

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 £.

The financial statements have been prepared under the historical cost convention. The principal

accounting policies adopted are set out below.

These financial statements for the year ended 30 September 2017 are the first financial statements of

Tower Heating Limited prepared in accordance with FRS 102, The Financial Reporting Standard

applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 October 2015.

The reported financial position and financial performance for the previous year are not affected by the

transition to FRS102.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and

services provided in the normal course of business, and is shown net of VAT. The fair value of

consideration takes into account trade discounts and settlement discounts.

Revenue is recognised when the significant risks and rewards and the amount of revenue can be

measured reliably and, it is probable that the economic benefits associated with the transaction will

flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured

reliably.

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 fixed assets are initially measured at cost and subsequently measured at cost net of

depreciation and any impairment losses.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated

useful life:

Plant and Machinery

- 20% reducing balance

Motor Vehicles

- 25% reducing balance

Fixtures and Fittings

- 15% reducing balance

Computer Equipment

- 3 years straightline

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 .

Impairment of fixed assets

At each reporting period 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.

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.

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, unless the relevant asset is carried at a

revalued amount, in which case the reversal of the impairment loss is treated as a revaluation

increase.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call

with banks, other short-term liquid investments with original maturities of three months or less, and

bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Stocks

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

obsolete and slow moving items. Cost comprises direct materials and, where applicable, direct labour

costs and those overheads that have been incurred in bringing the stocks to their present location and

condition.

Stocks held for distribution at no nominal consideration are measured at the lower of replacement cost

and cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of

stocks over its estimated selling price less costs to complete and sell is recognised as an impairment

loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Financial instruments

The Company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and

Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's balance sheet when the Company becomes

party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements,

when there is a legally enforceable right to set off the recognised amounts and there is an intention to

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

Basic financial assets

Basic financial assets, which include debtors 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. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual

arrangements entered into. An equity instrument is any contract that evidences a residual interest in

the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and

preference shares that are classified as debt, are initially recognised at transaction price unless the

arrangement constitutes a financing transaction, where the debt instrument is measured at the present

value of the future receipts discounted at a market rate of interest. Financial liabilities classified as

payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary

course of business from suppliers. Amounts payable are classified as current liabilities if payment is

due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are

recognised initially at transaction price and subsequently measured at amortised cost using the

effective interest method.

Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue

costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at

the discretion of the company.

Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as

reported in the profit and loss account because it excludes items of income or expense that are

taxable or deductible in other years and it further excludes items that are never taxable or deductible.

The Company’s liability for current tax is calculated using tax rates that have been enacted or

substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing

difference arises from goodwill or from the initial recognition of other assets and liabilities in a

transaction that effect neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the

extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of

the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the

period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the

profit and loss account, except when it relates to items charged or credited directly to equity, in which

case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the

company has a legally enforceable right to offset current tax assets and liabilities and deferred tax and

liabilities levied by the same tax authority.

Deferred tax

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

the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods

different from those in which they are recognised in financial statements. Deferred tax is measured

using tax rates and laws that have been enacted or substantively enacted by the year end and that are

expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable

that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Amounts payable under operating leases are charged to the profit and loss account on a straight line

basis over the period of the lease.

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 an employee or to provide termination benefits.

Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall

due.

3.	Employees and directors

The average number of employees during the year was 14 .

4.	Intangible fixed assets

Goodwill

£

Cost

At 1 October 2016

21,723

Additions

10,000

At 30 September 2017

31,723

Amortisation

At 1 October 2016

8,690

Amortisation for year

6,344

At 30 September 2017

15,034

Net book value

At 30 September 2017

16,689

At 30 September 2016

13,033

5.	Tangible fixed assets

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

£

£

£

Cost

At 1 October 2016

2,092

61,498

4,114

67,704

Additions

-

27,725

-

27,725

At 30 September 2017

2,092

89,223

4,114

95,429

Depreciation

At 1 October 2016

227

11,937

1,608

13,772

Charge for year

304

15,457

1,371

17,132

At 30 September 2017

531

27,394

2,979

30,904

Net book value

At 30 September 2017

1,561

61,829

1,135

64,525

At 30 September 2016

1,865

49,561

2,506

53,932

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Motor

vehicles

£

Cost

At 1 October 2016

35,779

Additions

27,725

At 30 September 2017

63,504

Depreciation

At 1 October 2016

4,105

Charge for year

11,879

At 30 September 2017

15,984

Net book value

At 30 September 2017

47,520

At 30 September 2016

31,674

6.

Debtors: amounts falling due within one year

2017

2016

£

£

Trade debtors

26,625

14,359

Other debtors

100

100

Directors' current accounts

-

20,000

Prepayments

2,703

1,727

29,428

36,186

7.

Creditors: amounts falling due within one year

2017

2016

£

£

Hire purchase contracts

13,330

8,153

Trade creditors

46,086

33,493

Taxation and social security

53,365

37,100

Other creditors

29,128

19,759

141,909

98,505

8.

Creditors: amounts falling due after more than one year

2017

2016

£

£

Hire purchase contracts

17,873

11,224

9.	Secured debts

The following secured debts are included within creditors:

2017

2016

£

£

Hire purchase contracts

31,203

19,377

10.	Ultimate controlling party