E & S Heating & Ventilation Limited - Limited company accounts 18.2

REGISTERED NUMBER: 01959886 (England and Wales)

E & S Heating & Ventilation Limited

Strategic Report, Report of the Director and

Audited Financial Statements for the Year Ended 30 April 2018

Page

Company Information

1

Strategic Report

2

Report of the Director

4

Report of the Independent Auditors

6

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTOR:

Ms A J Shephard

REGISTERED OFFICE:

E & S Heating & Ventilation Limited

Diplocks Way

Hailsham

East Sussex

BN27 3JF

REGISTERED NUMBER:

01959886 (England and Wales)

AUDITORS:

Swindells LLP

Chartered Accountants

and Statutory Auditor

Atlantic House

8 Bell Lane

Bellbrook Industrial Estate

Uckfield

East Sussex

TN22 1QL

The director presents her strategic report for the year ended 30 April 2018.

REVIEW OF BUSINESS

The year ended 30 April 2018 represented a significant improvement in trading for the company.

Following on from last year, the company had a strong order book and was delivering the work that had

previously been secured across a number of sectors including Healthcare, Life Sciences and Crossrail.

The project slippage that continues to affect the construction industry is ongoing into the current year

making forward capacity planning very challenging.

The uncertainty around Brexit should resolve during the forthcoming year and we foresee many more

construction projects in the pipeline, and the outlook for 2019 and beyond is optimistic.

The company continues to carry out significant projects in London and the South East of England and has

maintained its reputation for quality work delivered on time.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties are those facing any business in the manufacturing and construction

sectors.

All such risks and uncertainties have been addressed by the director.

Financial risk

Financial risk management objectives and policies

The director has reviewed the company's risk management policies and considers them to be adequate.

Price risk, credit risk, liquidity risk and cash flow risk

The company's principal financial instruments comprise bank overdrafts, trade creditors and loans to the

business. The main purpose of these instruments is to finance the business' operations.

In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity

of funding and flexibility through the use of overdrafts at floating rates of interest. All of the company's

cash balances are held in such a way that achieves a competitive rate of interest.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

The shareholder loan included in other creditors is repayable when cash reserves permit and no interest is

accrued on the balance. The company manages the liquidity risk by ensuring that there are sufficient funds

to service the loan repayments.

Future developments

The company has invested in the recruitment of skilled workers which will improve the efficiency and

productivity of the business in the future.

DEVELOPMENT AND PERFORMANCE OF THE BUSINESS

Key performance indicators

2018

2017

2015

2014

2013

Turnover

16,998,361

17,353,829

8,051,421

8,615,822

8,973,530

Turnover growth

46.9%

115.5%

(6.6%

(4.0%

)

11.8%

Position of the business

At the end of the year, the net assets totalled £760,581 (2017 - £512,864).

ON BEHALF OF THE BOARD:

Ms A J Shephard - Director

28 January 2019

The director presents her report with the financial statements of the company for the year ended 30 April 2018.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of a heating, ventilation and air

conditioning contractor.

DIVIDENDS

No dividends will be distributed for the year ended 30 April 2018.

DIRECTOR

Ms A J Shephard held office during the whole of the period from 1 May 2017 to the date of this report.

DISCLOSURE IN THE STRATEGIC REPORT

In accordance with s.414C(11) of the Companies Act 2006, information on financial and other risks required

by Schedule 7 to be contained in the Director's Report, are set out in the Strategic Report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, 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 she 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;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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 her to ensure that the financial statements comply with the Companies Act 2006. She

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 she has taken all the steps that

she ought to have taken as a director in order to make herself aware of any relevant audit information and

to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

Ms A J Shephard - Director

28 January 2019

Opinion

We have audited the financial statements of E & S Heating & Ventilation Limited (the 'company') for the

year ended 30 April 2018 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 30 April 2018 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 director's use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

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

the Strategic Report and 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, except to the extent

otherwise explicitly stated in our report, 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 we

identify such material inconsistencies or apparent material misstatements, we are required to determine

whether there is a material misstatement in the financial statements or a material misstatement of the

other information. 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 Director 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 Director 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 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.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page four, 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.

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.

Melanie Richardson BA(Hons) FCA (Senior Statutory Auditor)

for and on behalf of Swindells LLP

Chartered Accountants

and Statutory Auditor

Atlantic House

8 Bell Lane

Bellbrook Industrial Estate

Uckfield

East Sussex

TN22 1QL

28 January 2019

TURNOVER

16,998,361

17,353,829

Cost of sales

13,285,897

13,217,941

GROSS PROFIT

3,712,464

4,135,888

Administrative expenses

3,373,405

4,392,225

OPERATING PROFIT/(LOSS)

5

339,059

(256,337

)

Exceptional items

6

-

107,076

339,059

(363,413

)

Interest receivable and similar income

7

-

347

339,059

(363,066

)

Interest payable and similar expenses

8

73,009

86,941

PROFIT/(LOSS) BEFORE TAXATION

266,050

(450,007

)

Tax on profit/(loss)

9

18,333

(35,045

)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

247,717

(414,962

)

PROFIT/(LOSS) FOR THE YEAR

247,717

(414,962

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

247,717

(414,962

)

FIXED ASSETS

Intangible assets

10

1,031,026

1,125,341

Tangible assets

11

106,885

138,640

1,137,911

1,263,981

CURRENT ASSETS

Stocks

12

254,108

277,186

Debtors

13

5,280,731

5,007,519

Cash at bank and in hand

1,248

1,212

5,536,087

5,285,917

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

14

4,953,374

5,247,904

NET CURRENT ASSETS

582,713

38,013

TOTAL ASSETS LESS CURRENT LIABILITIES

1,720,624

1,301,994

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

15

960,043

789,130

NET ASSETS

760,581

512,864

CAPITAL AND RESERVES

Called up share capital

19

132

132

Share premium

20

259,168

259,168

Retained earnings

20

501,281

253,564

SHAREHOLDERS' FUNDS

760,581

512,864

The financial statements were approved by the director on 28 January 2019 and were signed by:

Ms A J Shephard - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 November 2015

132

668,526

259,168

927,826

Changes in equity

Total comprehensive income

-

(414,962

)

-

(414,962

)

Balance at 30 April 2017

132

253,564

259,168

512,864

Changes in equity

Total comprehensive income

-

247,717

-

247,717

Balance at 30 April 2018

132

501,281

259,168

760,581

Cash flows from operating activities

Cash generated from operations

1

179,911

(103,082

)

Interest paid

(27,095

)

(14,758

)

Tax paid

35,045

77,220

Net cash from operating activities

187,861

(40,620

)

Cash flows from investing activities

Purchase of intangible fixed assets

(2,642

)

(51,474

)

Purchase of tangible fixed assets

(21,772

)

(49,885

)

Sale of tangible fixed assets

19,000

750

Interest received

-

347

Net cash from investing activities

(5,414

)

(100,262

)

Cash flows from financing activities

New loans in year

-

140,791

Loan repayments in year

(120,000

)

-

Net cash from financing activities

(120,000

)

140,791

Increase/(decrease) in cash and cash equivalents

62,447

(91

)

Cash and cash equivalents at beginning of year

2

(493,657

)

(493,566

)

Cash and cash equivalents at end of year

2

(431,210

)

(493,657

)

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

Period

1.11.15

Year Ended

to

30.4.18

30.4.17

£

£

Profit/(loss) before taxation

266,050

(450,007

)

Depreciation charges

149,864

203,963

Profit on disposal of fixed assets

(18,380

)

(750

)

Finance costs

73,009

86,941

Finance income

-

(347

)

470,543

(160,200

)

Decrease/(increase) in stocks

23,078

(186,836

)

Increase in trade and other debtors

(308,258

)

(2,875,810

)

(Decrease)/increase in trade and other creditors

(5,452

)

3,119,764

Cash generated from operations

179,911

(103,082

)

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 30 April 2018

30.4.18

1.5.17

£

£

Cash and cash equivalents

1,248

1,212

Bank overdrafts

(432,458

)

(494,869

)

(431,210

)

(493,657

)

Period ended 30 April 2017

30.4.17

1.11.15

£

£

Cash and cash equivalents

1,212

11,096

Bank overdrafts

(494,869

)

(504,662

)

(493,657

)

(493,566

)

1.	STATUTORY INFORMATION

E & S Heating & Ventilation 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.

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 the value of work carried out in the year. Profit is recognised on long term

contracts in proportion to the work completed after making allowance for future risks and

uncertainties. Immediate provision is made for all foreseeable losses.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2010, is being amortised evenly over its estimated useful life of twenty years.

Intangible fixed assets

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

Other intangible fixed assets, being capitalised development expenditure, is being amortised evenly

over its estimated useful life of three years. The development costs have been capitalised due to

their use in future business sales.

Amortisation is included within administrative expenses in the income statement.

Tangible fixed assets

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

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

20% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

33% on cost

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated

impairment losses.

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making

due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and

handling costs in bringing stocks to their present location and condition.

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 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.

Operating leases

Rentals paid under operating leases are charged to the profit and loss account on a straight line basis

over the period of the lease.

Long term contracts

Long term contracts are stated at costs incurred, net of amounts transferred to the profit and loss

account in respect of work carried out to date, less foreseeable losses and applicable payments on

account. The net balances are shown as debtors (amounts recoverable on contracts) and creditors

(advance payments on account of contracts).

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are

measured initially at fair value, net of transaction costs, and are measured subsequently at

amortised cost using the effective interest method, less any impairment.

Creditors

Short term trade creditors are measured at the transaction price. Other financial liabilities, including

bank loans, are measured initially at fair value, net of transaction costs, and are measured

subsequently at amortised cost using the effective interest method.

3.	EMPLOYEES AND DIRECTORS

Period

1.11.15

Year Ended

to

30.4.18

30.4.17

£

£

Wages and salaries

2,971,904

3,821,017

Social security costs

312,633

396,742

Other pension costs

50,073

63,702

3,334,610

4,281,461

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

Period

1.11.15

Year Ended

to

30.4.18

30.4.17

Sales and manufacturing

83

73

Directors

1

1

84

74

4.	DIRECTORS' EMOLUMENTS

Period

1.11.15

Year Ended

to

30.4.18

30.4.17

£

£

Director's remuneration

80,292

140,614

Director's pension contributions to money purchase schemes

4,289

6,420

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

1

1

5.	OPERATING PROFIT/(LOSS)

The operating profit (2017 - operating loss) is stated after charging/(crediting):

Period

1.11.15

Year Ended

to

30.4.18

30.4.17

£

£

Depreciation - owned assets

52,907

81,170

Profit on disposal of fixed assets

(18,380

)

(750

)

Goodwill amortisation

79,777

119,667

Other intangibles amortisation

13,297

-

Computer software amortisation

3,883

3,126

Auditors' remuneration

35,158

31,934

6.	EXCEPTIONAL ITEMS

Period

1.11.15

Year Ended

to

30.4.18

30.4.17

£

£

Exceptional items

-

(107,076

)

During 2017, the company was subject to an external fraud. As a result, the company suffered a loss

of £107,076 which is not recoverable.

7.

INTEREST RECEIVABLE AND SIMILAR INCOME

Period

1.11.15

Year Ended

to

30.4.18

30.4.17

£

£

Deposit account interest

-

4

Other interest receivable

-

343

-

347