NW Firecontrol Ltd - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 06314891 (England and Wales)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2018

FOR

NW FIRECONTROL LTD

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

3

DIRECTORS:

Cllr F Molfetta

Cllr M Parkinson

Cllr S Nelson

Cllr R G Rudd

Cllr J Willis

Cllr G M Ellis

SECRETARY:

Mrs F R Hodson

REGISTERED OFFICE:

North West Fire Control Lingley Mere

Business Park

Lingley Green Avenue

Warrington

Cheshire

WA5 3UZ

REGISTERED NUMBER:

06314891 (England and Wales)

AUDITORS:

Fairhurst

Statutory Auditor

Chartered Accountants

Douglas Bank House

Wigan Lane

Wigan

Lancashire

WN1 2TB

FIXED ASSETS

Intangible assets

3

1,464,433

1,825,603

Tangible assets

4

119,965

164,373

1,584,398

1,989,976

CURRENT ASSETS

Debtors

5

1,115,094

724,824

Cash at bank

657,525

1,144,707

1,772,619

1,869,531

CREDITORS

Amounts falling due within one year

6

3,071,975

3,596,389

NET CURRENT LIABILITIES

(1,299,356

)

(1,726,858

)

TOTAL ASSETS LESS CURRENT LIABILITIES

285,042

263,118

PENSION LIABILITY

10

(3,141,900

)

(3,093,900

)

NET LIABILITIES

(2,856,858

)

(2,830,782

)

RESERVES

Income and expenditure account

8

(2,856,858

)

(2,830,782

)

(2,856,858

)

(2,830,782

)

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 Statement of Comprehensive Income has not been delivered.

The financial statements were approved by the Board of Directors on 30 November 2018 and were signed on its behalf by:

Cllr F Molfetta - Director

1.	STATUTORY INFORMATION

NW Firecontrol Ltd is a private company, limited by guarantee , 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.

The impact of disclosure requirements of the Retirement Benefits Scheme, has resulted in a significant liability

being shown on the balance sheet and an increase in the pension cost included in the profit and loss account.

These disclosures will not directly affect the levels of cash pension contributions payable and this has been taken

into account when considering the applicability of the going concern basis. The company has an agreement with

each of the authorities (who jointly control the company) that contains obligations about the ongoing funding of

the company. In addition, the authorities are committed to the continuation of the current fire control

arrangements (provided by the company) as they deliver considerable savings and would be very difficult for the

authorities to take back 'in-house'. Whilst the agreements with the authorities do not specifically commit them to

cover the pension liabilities, there is no doubt that the authorities must ensure that the company continues to be a

going concern.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

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.

Patents and Licences are being amortised evenly over their estimated useful life of five years.

Computer software is being amortised from 1 June 2014 as the software was brought into operation during May

2014. Computer software is being amortised evenly over its estimated useful life of seven years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Fixtures and fittings

-

25% on cost and 4% on cost

Computer equipment

-

33% on cost

Hire purchase and leasing commitments

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

lease.

Pension costs and other post-retirement benefits

Employees of NW Firecontrol Limited participate in the Cheshire Pension Fund which is a defined benefit

pension scheme. The scheme is a Local Government Pensions Scheme managed by Cheshire West and Chester

Borough Council. The assets of the scheme are invested and managed independently of the finances of the

company.

The operating costs of providing retirement benefits to employees are recognised in the accounting periods in

which the benefits are earned. The related finance costs, expected return on assets and any other changes in fair

value of the assets and liabilities, are recognised in the accounting period in which they arise. The operating

costs, finance costs and expected return on assets are recognised in the statement of comprehensive income with

any other changes in fair value of assets and liabilities being recognised in other comprehensive income.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial

assets and liabilities such as trade and other accounts receivable and payable. Basic financial instruments are

recognised at cost.

3.	INTANGIBLE FIXED ASSETS

Patents

and

Computer

licences

software

Totals

£

£

£

COST

At 1 April 2017

15,000

2,695,275

2,710,275

Additions

-

38,766

38,766

At 31 March 2018

15,000

2,734,041

2,749,041

AMORTISATION

At 1 April 2017

12,750

871,922

884,672

Amortisation for year

2,250

397,686

399,936

At 31 March 2018

15,000

1,269,608

1,284,608

NET BOOK VALUE

At 31 March 2018

-

1,464,433

1,464,433

At 31 March 2017

2,250

1,823,353

1,825,603

4.	TANGIBLE FIXED ASSETS

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1 April 2017

247,167

493,409

740,576

Additions

3,434

1,701

5,135

At 31 March 2018

250,601

495,110

745,711

DEPRECIATION

At 1 April 2017

95,056

481,147

576,203

Charge for year

42,366

7,177

49,543

At 31 March 2018

137,422

488,324

625,746

NET BOOK VALUE

At 31 March 2018

113,179

6,786

119,965

At 31 March 2017

152,111

12,262

164,373

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade debtors

391,125

347,983

Other debtors

723,969

376,841

1,115,094

724,824

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade creditors

107

22,362

Taxation and social security

164,777

136,533

Other creditors

2,907,091

3,437,494

3,071,975

3,596,389

7.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2018

2017

£

£

Within one year

1,354,861

1,354,861

Between one and five years

5,419,445

5,419,445

In more than five years

13,934,653

15,289,514

20,708,959

22,063,820

Rent of £338,715 is due quarterly for the Control Centre occupied by the company. The lease is for a term of 25

years with effect from 14 July 2008.

8.

RESERVES

Income

and

expenditure

account

£

At 1 April 2017

(2,830,782

)

Deficit for the year

(432,076

)

Actuarial surplus/(deficit)

406,000

At 31 March 2018

(2,856,858

)

9.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

James J Weston FCCA (Senior Statutory Auditor)

for and on behalf of Fairhurst

10.	EMPLOYEE BENEFIT OBLIGATIONS

The amounts recognised in surplus or deficit are as follows:

Defined benefit

pension plans

2018

2017

£

£

Current service cost

770,000

422,000

Net interest from net defined benefit asset/liability

89,000

40,000

Past service cost

-

-

859,000

462,000

Actual return on plan assets

214,000

227,000

Changes in the present value of the defined benefit obligation are as follows:

Defined benefit

pension plans

2018

2017

£

£

Opening defined benefit obligation

10,774,900

7,147,900

Current service cost

770,000

422,000

Contributions by scheme participants

130,000

124,000

Interest cost

303,000

267,000

Benefits paid

(11,000

)

(8,000

)

Remeasurements:

Actuarial (gains)/losses from changes in demographic assumptions

-

139,000

Actuarial (gains)/losses from changes in financial assumptions

(332,000

)

2,287,000

Other experience remeasurement

-

396,000

11,634,900

10,774,900

Changes in the fair value of scheme assets are as follows:

Defined benefit

pension plans

2018

2017

£

£

Opening fair value of scheme assets

7,681,000

6,087,000

Contributions by employer

405,000

333,000

Contributions by scheme participants

130,000

124,000

Expected return

214,000

227,000

Benefits paid

(11,000

)

(8,000

)

Return on plan assets (excluding interest income)

74,000

918,000

8,493,000

7,681,000

The amounts recognised in other comprehensive income are as follows:

Defined benefit

pension plans

2018

2017

£

£

Actuarial (gains)/losses from changes in demographic assumptions

-

(139,000

)

Actuarial (gains)/losses from changes in financial assumptions

332,000

(2,287,000

)

Other experience remeasurement

-

(396,000

)

Return on plan assets (excluding interest income)

74,000

918,000

406,000

(1,904,000

)

The major categories of scheme assets as a percentage of total scheme assets are as follows:

Defined benefit

pension plans

2018

2017

Equities

42%

55%

Bonds

46%

36%

Property

8%

7%

Cash

4%

2%

100%

100%

Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

2018

2017

Discount rate

2.70%

2.70%

Future salary increases

2.60%

2.70%

Future pension increases

2.30%

2.40%

11.	CAPITAL COMMITMENTS

2018

2017

£

£

Contracted but not provided for in the

financial statements

847,135

-

12.	RELATED PARTY DISCLOSURES

Greater Manchester Combined Authority

Subscriber member

On the 8th May 2017 the Greater Manchester Combined Authority (Fire and Rescue Functions) Order 2017

came into force. In accordance with the Order, the Greater Manchester Fire and Rescue Authority (GMFRA) was

abolished and the Greater Manchester Combined Authority (GMCA) became the fire and rescue authority for the

Greater Manchester Area. A Fire Committee of the GMCA was appointed by the Mayor made up of elected

members from the constituent councils in Greater Manchester.

In the period under review, the company is due income from Greater Manchester Combined Authority (GMCA)

of £1,283,759 (2017: £997,428) being the funding provided to GMCA by the Department of Communities and

Local Government, as GMCA is the lead authority for the North West region .

GMCA paid invoices on behalf of the company amounting to £Nil (2017: £Nil), these amounts were reimbursed

to GMCA by the company.

2018

2017

£

£

Amount due to related party at the balance sheet date

483,586

1,767,345

Greater Manchester Combined Authority

Subscriber member

During the year amounts were received and receivable from this subscriber member as follows:

2018

2017

£

£

Service charges

2,175,371

2,078,577

Interest

4,200

2,461

Use of facilities

346

238

Grants received

-

-

Recharged costs

17,251

-

2,197,168

2,081,276

Purchases of £1,073,275 (2017: £705,069) were made from this subscriber member.

2018

2017

£

£

Amount due from related party at the balance sheet date

17,340

-

Cheshire Fire Authority

Subscriber member

During the year amounts were received and receivable from this subscriber member as follows:

2018

2017

£

£

Service charges

807,354

771,431

Use of facilities

2,534

3,467

Grant

392,150

-

Recharged costs

32,077

-

1,234,115

832,964

Purchases of £11,230 (2017: £11,965) were made from this subscriber member.

2018

2017

£

£

Amount due from related party at the balance sheet date

250,982

243,293

Lancashire Combined Authority

Subscriber member

During the year amounts were received and receivable from this subscriber member as follows:

2018

2017

£

£

Service charges

1,143,751

1,092,860

Use of facilities

605

332

1,144,356

1,093,192

Purchases of £Nil (2017: £Nil) were made from this subscriber member.

2018

2017

£

£

Amount due from related party at the balance sheet date

-

78

Cumbria County Council

Subscriber member

During the year amounts were received and receivable from this subscriber member as follows:

2018

2017

£

£

Service charges

358,824

342,858

Use of facilities

126

-

358,950

342,858

Purchases of £Nil (2017: £Nil) were made from this subscriber member.

2018

2017

£

£

Amount due from related party at the balance sheet date

110,866

102,857

13.	POST BALANCE SHEET EVENTS

The Kerslake Report was published on 27 March 2018 in respect of the Manchester Arena attack on 22nd May

2017. There are currently no claims against NW Firecontrol Ltd in respect of this, however the Coroner's

investigations are ongoing.

14.	ULTIMATE CONTROLLING PARTY

The ultimate controlling parties are the four subscriber members being Cheshire Fire Authority, Cumbria County

Council, Greater Manchester Combined Authority and Lancashire Combined Fire Authority each with 25%

control.

15.	LIMITED BY GUARANTEE

The Company is limited by guarantee and does not have any share capital. The liability of the four subscriber

members is limited. Each member of the Company undertakes to contribute an amount not exceeding £1 in the

event of a winding up.