Technical Demolition Services Ltd - Limited company accounts 18.2

REGISTERED NUMBER: 01684019 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2017

for

Technical Demolition Services Ltd

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Income Statement

6

Other Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

12

DIRECTORS:

T G Taperell

A A Taperell

C S Wilson

Miss V M Evans

Miss J A Hitchen

REGISTERED OFFICE:

Dock Road South

Bromborough

Wirral

CH62 4SQ

REGISTERED NUMBER:

01684019 (England and Wales)

AUDITORS:

Douglas Fairless Partnership

Chartered Certified Accountants

and Statutory Auditors

Seymour Chambers

92 London Road

Liverpool

Merseyside

L3 5NW

The directors present their strategic report for the year ended 31 December 2017.

During 2017 the company continued its primary activities in a more stable economic climate in the UK. Technical

Demolition Services continued to attract strong long term contracts. The company's overseas contracts have been

closely controlled giving a path to a profitable and punctual completion. During the year the company returned a cash

profit, however the company's depreciation policy on its substantial fixed asset register reduced this to a small retained

loss of £31,962. This together with the company's dividend policy and taxation, had an impact of reducing the

company's balance sheet marginally. The directors, feel the company together with its order ledger, is fully prepared to

improve on its performance for 2017 and are looking forward to continued profits and increased turnover into the future.

REVIEW OF BUSINESS

Turnover in the year decreased from £8,562,311 to £8,185,008 representing a 2.3% reduction in turnover. Management

maintained it policy of attracting profitable contracts and through effective management of its overseas contracts had the

impact of keeping the company's gross profit margin stable from 32.2% to 31.8%. As a result the company returned a

profit before depreciation and taxation of £776,247. however after after depreciation returned a small loss of £31,962.

With Technical Demolition Services demonstrating its ability to attract and effectively manage significant oversea

contracts the company feels it has the ability to recognise itself as a proven international contractor as well as enjoying

its position as a well established UK performer. The directors continue to attract contracts with a view to increasing

annual turnover

PRINCIPAL RISKS AND UNCERTAINTIES

The risk of litigation due to non compliance with Waste Management and Health & Safety legislation will always remain

one of the greatest risks to our profitability and image. However, due to our commitment to the ICE Demolition Protocol

and its objectives, the land and facilities purchased in 2009 have helped the company achieve an even higher standard

of waste management and therefore reducing the environmental impacts of demolition, dismantling and

decommissioning activities.

With the preservation of a strong and healthy balance sheet Technical Demolition Services are continuing to explore

higher value contracts both within the UK and overseas. In addition the volatility of raw materials market the directors

are continuing to look to reduce both direct and indirect costs in its preservation of a healthy balance sheet and profit

and loss account.

ON BEHALF OF THE BOARD:

T G Taperell - Director

28 September 2018

The directors present their report with the financial statements of the company for the year ended 31 December 2017.

DIVIDENDS

Interim dividends totalling £5,835 per share were paid during the year. the directors recommend that no final dividend be

paid.

The total distribution of dividends for the year ended 31 December 2017 will be £583,500.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2017 to the date of this report.

T G Taperell

A A Taperell

C S Wilson

Miss V M Evans

Miss J A Hitchen

POLITICAL DONATIONS AND EXPENDITURE

Charitable Donations - Heart Internet £266.68, Claire House - £2,500, Clatterbridge Centre - £4,000, Lighthouse Club -

£2,940, Radio City Cash for Kids £2,920 Stan Dowley £1,000.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are 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 each director has taken all the steps that he or she ought to

have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that

the company's auditors are aware of that information.

AUDITORS

The auditors, Douglas Fairless Partnership, will be proposed for re-appointment at the forthcoming Annual General

Meeting.

ON BEHALF OF THE BOARD:

T G Taperell - Director

28 September 2018

Opinion

We have audited the financial statements of Technical Demolition Services Ltd (the 'company') for the year ended

31 December 2017 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of

Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 31 December 2017 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 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.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to

you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic

Report and the Report of the Directors, 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 Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have 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 Strategic Report or the Report of the Directors.

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 three, 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 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.

Auditors' 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.

Use of our report

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.

Gregory Newton FCCA (Senior Statutory Auditor)

for and on behalf of Douglas Fairless Partnership

Chartered Certified Accountants

and Statutory Auditors

Seymour Chambers

92 London Road

Liverpool

Merseyside

L3 5NW

28 September 2018

TURNOVER

3

8,185,008

8,562,311

Cost of sales

5,581,754

5,803,540

GROSS PROFIT

2,603,254

2,758,771

Distribution costs

16,874

22,126

Administrative expenses

2,624,789

2,723,867

2,641,663

2,745,993

(38,409

)

12,778

Other operating income

2,493

-

OPERATING (LOSS)/PROFIT

5

(35,916

)

12,778

Interest receivable and similar income

98,721

416

62,805

13,194

Amounts written off investments

6

6,185

-

56,620

13,194

Interest payable and similar expenses

7

88,582

81,587

LOSS BEFORE TAXATION

(31,962

)

(68,393

)

Tax on loss

8

(128,637

)

(46,842

)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

96,675

(21,551

)

PROFIT/(LOSS) FOR THE YEAR

96,675

(21,551

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

96,675

(21,551

)

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

5,465,935

6,206,966

Investments

12

750,000

756,185

6,215,935

6,963,151

CURRENT ASSETS

Debtors

13

3,894,318

2,614,377

Cash at bank and in hand

2,230

757,010

3,896,548

3,371,387

CREDITORS

Amounts falling due within one year

14

2,730,891

2,185,349

NET CURRENT ASSETS

1,165,657

1,186,038

TOTAL ASSETS LESS CURRENT LIABILITIES

7,381,592

8,149,189

CREDITORS

Amounts falling due after more than one year

15

(657,555

)

(841,694

)

PROVISIONS FOR LIABILITIES

19

(591,784

)

(715,170

)

NET ASSETS

6,132,253

6,592,325

CAPITAL AND RESERVES

Called up share capital

20

100

100

Revaluation reserve

21

1,992,843

1,966,090

Retained earnings

21

4,139,310

4,626,135

SHAREHOLDERS' FUNDS

6,132,253

6,592,325

The financial statements were approved by the Board of Directors on 28 September 2018 and were signed on its behalf by:

T G Taperell - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2016

100

4,797,686

1,976,841

6,774,627

Changes in equity

Dividends

-

(150,000

)

-

(150,000

)

Total comprehensive income

-

(21,551

)

(10,751

)

(32,302

)

Balance at 31 December 2016

100

4,626,135

1,966,090

6,592,325

Changes in equity

Dividends

-

(583,500

)

-

(583,500

)

Total comprehensive income

-

96,675

26,753

123,428

Balance at 31 December 2017

100

4,139,310

1,992,843

6,132,253

Cash flows from operating activities

Cash generated from operations

1

(1,229,156

)

1,116,714

Interest paid

(19,114

)

(15,710

)

Interest element of hire purchase payments paid

(69,468

)

(65,877

)

Tax paid

(26

)

57,079

Net cash from operating activities

(1,317,764

)

1,092,206

Cash flows from investing activities

Purchase of tangible fixed assets

(60,993

)

47,427

Sale of tangible fixed assets

-

435,244

Interest received

98,721

416

Net cash from investing activities

37,728

483,087

Cash flows from financing activities

New loans in year

-

280,000

Loan repayments in year

(8,146

)

-

Capital repayments in year

267,665

(775,181

)

Amount withdrawn by directors

(15,846

)

15,555

Equity dividends paid

(583,500

)

(150,000

)

Net cash from financing activities

(339,827

)

(629,626

)

(Decrease)/increase in cash and cash equivalents

(1,619,863

)

945,667

Cash and cash equivalents at beginning of year

2

757,010

(188,657

)

Cash and cash equivalents at end of year

2

(862,853

)

757,010

1.	RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.12.17

31.12.16

£

£

Loss before taxation

(31,962

)

(68,393

)

Depreciation charges

802,024

932,123

Profit on disposal of fixed assets

-

(64,766

)

Gain on revaluation of fixed assets

-

(10,748

)

Amounts recoverable on contracts

(508,729

)

221,469

Impairment of investment

6,186

-

Finance costs

88,582

81,587

Finance income

(98,721

)

(416

)

257,380

1,090,856

Increase in trade and other debtors

(771,213

)

(491,514

)

(Decrease)/increase in trade and other creditors

(715,323

)

517,372

Cash generated from operations

(1,229,156

)

1,116,714

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of

these Balance Sheet amounts:

Year ended 31 December 2017

31.12.17

1.1.17

£

£

Cash and cash equivalents

2,230

757,010

Bank overdrafts

(865,083

)

-

(862,853

)

757,010

Year ended 31 December 2016

31.12.16

1.1.16

£

£

Cash and cash equivalents

757,010

5,028

Bank overdrafts

-

(193,685

)

757,010

(188,657

)

1.	STATUTORY INFORMATION

Technical Demolition Services 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.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with 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.

Turnover

Turnover represents net invoice value of scrap sold or services provided, excluding value added tax.

Revenue is recognised based on the stage completion of contracts or on the delivery of a service. Revenue on

scrap materials is recognised based on the date scrap materials are generated from a demolition project.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 1995, is being amortised evenly over its estimated useful life of twenty 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

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

2% on cost

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

10% on reducing balance

Motor vehicles

-

15% on reducing balance

Computer equipment

-

25% on reducing balance

Investments in associates

Investments in associate undertakings are recognised at cost.

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.

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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the

balance sheet date. Transactions in foreign currencies recorded in the profit & loss account are translated into

sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in

arriving at the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those

held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance

leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element

of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the

lease.

Pension costs and other post-retirement benefits

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.

Amounts recoverable on contracts

Amounts recoverable on contracts in relation to long term contracts are classified in debtors and represent the

amount by which recorded turnover is in excess of payments on account.

Investments in associates

Investments in Associates have been classified as fixed assets and are carried at cost. The loan to Associate is

carried at cost and is considered to be repayable on demand.

3.

TURNOVER

The turnover and loss before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business for the year ended 31 December 2017 is given below:

£

Sale of goods

8,185,008

8,185,008

This analysis is not considered to be applicable to the year ended 31 December 2016.

4.	EMPLOYEES AND DIRECTORS

31.12.17

31.12.16

£

£

Wages and salaries

2,064,847

2,527,857

Social security costs

224,636

302,170

Other pension costs

20,744

24,964

2,310,227

2,854,991

The average number of employees during the year was as follows:

31.12.17

31.12.16

Production

71

58

Administration

3

5

Management

9

7

83

70

31.12.17

31.12.16

£

£

Directors' remuneration

186,060

189,193

5.	OPERATING (LOSS)/PROFIT

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

31.12.17

31.12.16

£

£

Other operating leases

16,874

22,126

Depreciation - owned assets

675,569

708,573

Depreciation - assets on hire purchase contracts

126,455

223,551

Profit on disposal of fixed assets

-

(64,766

)

Auditors' remuneration

7,530

8,000

Auditors' remuneration for non audit work

9,040

11,060

Other non- audit services

-

30

Foreign exchange differences

(2,493

)

-

6.

AMOUNTS WRITTEN OFF INVESTMENTS

31.12.17

31.12.16

£

£

Amounts w/o invs

6,185

-

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.17

31.12.16

£

£

Bank interest

7,366

15,710

Bank loan interest

11,748

-

Hire purchase

69,468

65,877

88,582

81,587

8.

TAXATION

Analysis of the tax credit

The tax credit on the loss for the year was as follows:

31.12.17

31.12.16

£

£

Current tax:

UK corporation tax

57,414

7,706

Corporation tax adjustment

(89,418

)

-

Total current tax

(32,004

)

7,706

Deferred tax

(96,633

)

(54,548

)

Tax on loss

(128,637

)

(46,842

)