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REGISTERED NUMBER: 02476049 (England and Wales)













Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2021

for

ELECTRICAL TESTING LIMITED

ELECTRICAL TESTING LIMITED (REGISTERED NUMBER: 02476049)






Contents of the Financial Statements
for the year ended 31 December 2021




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Income Statement 7

Other Comprehensive Income 8

Balance Sheet 9

Statement of Changes in Equity 10

Cash Flow Statement 11

Notes to the Cash Flow Statement 12

Notes to the Financial Statements 13


ELECTRICAL TESTING LIMITED

Company Information
for the year ended 31 December 2021







DIRECTORS: Mr S A Hobbs
Mr A J Hobbs
Mrs E J Hobbs
Mr J N Hill
Mr B Humphrys
Mr J Barker



SECRETARY: Mrs M Hobbs



REGISTERED OFFICE: The Bridge
Acle
Norwich
Norfolk
NR13 3AT



REGISTERED NUMBER: 02476049 (England and Wales)



SENIOR STATUTORY AUDITOR: Mr Jeremy Laurence Hyde FCCA



AUDITORS: Lees Chartered Certified Accountants
Ingram House
6 Meridian Way
Norwich
NR7 0TA

ELECTRICAL TESTING LIMITED (REGISTERED NUMBER: 02476049)

Strategic Report
for the year ended 31 December 2021

This report is based on the financial statements for Electrical Testing Ltd to 31st December 2021. They contain company information (list of directors, company number etc), a report from the directors, a report from the auditors, an income statement, balance sheet and profit and loss account.

Within these accounts are other comments from our financial auditors that are legalistic and detail the legislation that the company has adhered to and that the accounts have been prepared correctly.

The purpose of this report is to review the performance of the business in 2021.

REVIEW OF BUSINESS
With 2020 being an extraordinary year of trading due to the Covid pandemic, meaningful comparisons on profit and costs are difficult to carry out and would not be reflective of the good work in 2021.

The key financial performance indicators are considered to be gross margin, current ratio (i.e. the ability to pay short term obligations with the current assets held) and stock turnover.

The gross margin has decreased to 40% (2020 - 48%) which, given the beneficial impact of the Covid pandemic in 2020 and consequential increase in efficiency, was expected. The current ratio has increased to 4.9 (2020 - 3.6) and stock turnover has increased to 17.5 (2020 - 16.4). The directors have made a conscious effort to maximise cash reserves in order to finance any working capital disruptions and also minimise stock holding, which has been facilitated with the introduction and development of a bespoke stock system.

The financial statements for the organisation demonstrate another resilient year of trading and an improving performance relating to resource, structure, procurement and supporting systems.

PRINCIPAL RISKS AND UNCERTAINTIES
Principal risks and uncertainties are categorised as operational risks, commercial risks, ethical risks, environmental risks and training risks.

Risk analysis is considered a key business activity and we maintain a risk control spreadsheet that:-

1) Accurately identifies the category of risk
2) Provides details of the risk
3) Specifies the measures in place to minimise the risk and:
4) Details the potential consequences if the risk is not managed or mitigated

The risk register is discussed during board meetings and is regularly reviewed, updated and revised as necessary. It is considered that all risks identified are currently managed or mitigated.

COVID 19 UPDATE
We are continually reviewing guidance issued by Government and Health Authorities to ensure the safety of our employees and staff and to minimise any additional potential risks to our operations posed by Covid-19. We issue this statement as part of the periodic review of our processes and procedures in relation to the Covid-19 Pandemic.

Throughout the worldwide pandemic, our essential staff have been working on the UK's highways, ensuing that the roads remain safe and operational for our Keyworkers. We will continue with this work, ensuring the same for the businesses that will drive the Nation's economy forward.

All workstreams that fall under ETL Highways, ETL Connections and ETL Training now operate as 'business as usual' in accordance with Government advice for the Construction, Business and Transport Sectors, advice directly from Government Ministers on media channels and advice from Trade Associations.

We remain keenly committed to providing a high-quality service. Our new working arrangements have worked well during the restrictions imposed during this Pandemic, with our own staff, and just as importantly our clients staying supportive and flexible in this most challenging of times.

More information is available on our website at www.electricaltesting.co.uk and we will issue further updates should circumstances alter our current position of 'business as usual'.

BY ORDER OF THE BOARD:




Mr S A Hobbs - Director


12 September 2022

ELECTRICAL TESTING LIMITED (REGISTERED NUMBER: 02476049)

Report of the Directors
for the year ended 31 December 2021

The directors present their report with the financial statements of the company for the year ended 31 December 2021.

PRINCIPAL ACTIVITY
We are a leading provider of Highways Services in the United Kingdom. With over 30 years of experience, we have built the business on a foundation of trust, performance and unparalleled customer service.

Our team of chartered engineers and specialists work with a large range of clients across the UK, from local authorities and contractors to consultants and individuals. We're proud to be recognised as a significant independent player in the world of electrical inspection and testing, connections and training in cities and on highways across the country.


We're respected as one of the first independent companies to receive accreditation under the National Electricity Registration Scheme (NERS) run by Lloyds Register on behalf of the UK Distribution Network Operators.

With a commitment to modernisation, impartiality and technological innovation, we aim higher, to raise the bar and set the standards for others to follow.

We employ only the best staff, offering a broad range of experience and skills across industry, and we inspect and test a complete range of premises including Government buildings, MOD sites, petrol and oil installations, swimming pools, tower blocks, shopping malls, council assets, utility company assets, museums, public buildings, office blocks and private homes.

We offer a wide spectrum of services including electrical testing and inspections, Underground cable route tracing and plotting, Thermographic surveys, Street lighting data collection surveys, Jointing (live/dead) of street light columns, Structural testing street lighting using Dipstik, Underground cable fault locating.

We are approved to the highest standards for technical expertise, quality, environmental standards and health & safety. This is demonstrated with registrations held through UKAS, Lloyds (NERS), HEA (HERS), NICEIC, Lantra Awards and City and Guilds.

DIVIDENDS
The total distribution of dividends for the year ended 31 December 2021 will be £330,000 (2020 - £301,561).

RESEARCH AND DEVELOPMENT
Research and Development (R&D) costs are accrued across a number of areas within the business with the key focus being on continual development of our patented Dipstik Technology and the company's underpinning software systems. R&D costs have been written off to the profit and loss account due to the inherent uncertainty of there being any future benefit.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2021 to the date of this report.

Mr S A Hobbs
Mr A J Hobbs
Mrs E J Hobbs
Mr J N Hill
Mr B Humphrys

Other changes in directors holding office are as follows:

Mr J Barker - appointed 11 October 2021

Throughout the period Mr S A Hobbs, Mr A J Hobbs and Mrs E J Hobbs were directors of Electrical Testing (Holdings) Limited, the ultimate parent company.


ELECTRICAL TESTING LIMITED (REGISTERED NUMBER: 02476049)

Report of the Directors
for the year ended 31 December 2021

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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.

BY ORDER OF THE BOARD:





Mr S A Hobbs - Director


12 September 2022

Report of the Independent Auditors to the Members of
Electrical Testing Limited

Opinion
We have audited the financial statements of Electrical Testing Limited (the 'company') for the year ended 31 December 2021 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 2021 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
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

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, 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Opinions 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.

Report of the Independent Auditors to the Members of
Electrical Testing Limited


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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to employment laws and tax legislation, and we considered the extent to which non­ compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included:

- discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation;
- evaluating management's controls designed to prevent and detect irregularities;
- identifying and testing of journal entries for appropriateness and evaluating the business rationale of significant transactions outside the normal course of business; and
- reviewing significant accounting estimates for management bias.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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.




Mr Jeremy Laurence Hyde FCCA (Senior Statutory Auditor)
for and on behalf of Lees Chartered Certified Accountants
Ingram House
6 Meridian Way
Norwich
NR7 0TA

12 September 2022

ELECTRICAL TESTING LIMITED (REGISTERED NUMBER: 02476049)

Income Statement
for the year ended 31 December 2021

2021 2020
Notes £    £   

TURNOVER 11,970,261 11,455,799

Cost of sales 7,158,829 5,910,735
GROSS PROFIT 4,811,432 5,545,064

Administrative expenses 3,769,565 3,794,867
OPERATING PROFIT 4 1,041,867 1,750,197

Interest receivable and similar income 579 3,521
1,042,446 1,753,718

Interest payable and similar expenses 5 698 4,211
PROFIT BEFORE TAXATION 1,041,748 1,749,507

Tax on profit 6 79,692 164,721
PROFIT FOR THE FINANCIAL YEAR 962,056 1,584,786

ELECTRICAL TESTING LIMITED (REGISTERED NUMBER: 02476049)

Other Comprehensive Income
for the year ended 31 December 2021

2021 2020
Notes £    £   

PROFIT FOR THE YEAR 962,056 1,584,786


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

962,056

1,584,786

ELECTRICAL TESTING LIMITED (REGISTERED NUMBER: 02476049)

Balance Sheet
31 December 2021

2021 2020
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 8 914,397 972,104

CURRENT ASSETS
Stocks 9 430,851 386,876
Debtors 10 2,517,887 2,389,277
Cash at bank and in hand 2,681,539 2,417,804
5,630,277 5,193,957
CREDITORS
Amounts falling due within one year 11 1,160,707 1,432,683
NET CURRENT ASSETS 4,469,570 3,761,274
TOTAL ASSETS LESS CURRENT
LIABILITIES

5,383,967

4,733,378

CREDITORS
Amounts falling due after more than one
year

12

-

(7,448

)

PROVISIONS FOR LIABILITIES 15 (95,074 ) (69,093 )
NET ASSETS 5,288,893 4,656,837

CAPITAL AND RESERVES
Called up share capital 16 2 2
Retained earnings 17 5,288,891 4,656,835
SHAREHOLDERS' FUNDS 5,288,893 4,656,837

The financial statements were approved by the Board of Directors and authorised for issue on 12 September 2022 and were signed on its behalf by:





Mr S A Hobbs - Director


ELECTRICAL TESTING LIMITED (REGISTERED NUMBER: 02476049)

Statement of Changes in Equity
for the year ended 31 December 2021

Called up
share Retained Total
capital earnings equity
£    £    £   

Balance at 1 January 2020 2 3,373,610 3,373,612

Changes in equity
Dividends - (301,561 ) (301,561 )
Total comprehensive income - 1,584,786 1,584,786
Balance at 31 December 2020 2 4,656,835 4,656,837

Changes in equity
Dividends - (330,000 ) (330,000 )
Total comprehensive income - 962,056 962,056
Balance at 31 December 2021 2 5,288,891 5,288,893

ELECTRICAL TESTING LIMITED (REGISTERED NUMBER: 02476049)

Cash Flow Statement
for the year ended 31 December 2021

2021 2020
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,162,606 1,766,792
Interest paid (12 ) (12 )
Interest element of finance lease payments
paid

(686

)

(4,199

)
Tax paid (335,471 ) 68,743
Net cash from operating activities 826,437 1,831,324

Cash flows from investing activities
Purchase of tangible fixed assets (187,003 ) (511,483 )
Sale of tangible fixed assets - 2,796
Interest received 579 3,521
Net cash from investing activities (186,424 ) (505,166 )

Cash flows from financing activities
Capital repayments in year (45,541 ) (176,062 )
Amount introduced by directors 969 63,470
Amount withdrawn by directors (1,706 ) (1,881 )
Equity dividends paid (330,000 ) (301,561 )
Net cash from financing activities (376,278 ) (416,034 )

Increase in cash and cash equivalents 263,735 910,124
Cash and cash equivalents at beginning
of year

2

2,417,804

1,507,680

Cash and cash equivalents at end of year 2 2,681,539 2,417,804

ELECTRICAL TESTING LIMITED (REGISTERED NUMBER: 02476049)

Notes to the Cash Flow Statement
for the year ended 31 December 2021

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2021 2020
£    £   
Profit before taxation 1,041,748 1,749,507
Depreciation charges 228,102 230,623
Loss on disposal of fixed assets 16,608 24,594
Finance costs 698 4,211
Finance income (579 ) (3,521 )
1,286,577 2,005,414
Increase in stocks (43,975 ) (53,816 )
Increase in trade and other debtors (4,765 ) (188,466 )
(Decrease)/increase in trade and other creditors (75,231 ) 3,660
Cash generated from operations 1,162,606 1,766,792

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 2021
31.12.21 1.1.21
£    £   
Cash and cash equivalents 2,681,539 2,417,804
Year ended 31 December 2020
31.12.20 1.1.20
£    £   
Cash and cash equivalents 2,417,804 1,507,680


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.21 Cash flow At 31.12.21
£    £    £   
Net cash
Cash at bank and in hand 2,417,804 263,735 2,681,539
2,417,804 263,735 2,681,539
Debt
Finance leases (52,989 ) 45,541 (7,448 )
(52,989 ) 45,541 (7,448 )
Total 2,364,815 309,276 2,674,091

ELECTRICAL TESTING LIMITED (REGISTERED NUMBER: 02476049)

Notes to the Financial Statements
for the year ended 31 December 2021

1. STATUTORY INFORMATION

Electrical Testing 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 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 is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

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.

Land and buildingsOver the lease period
Plant and machinery etc15% - 25% reducing balance, 25% straight line

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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.

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.

ELECTRICAL TESTING LIMITED (REGISTERED NUMBER: 02476049)

Notes to the Financial Statements - continued
for the year ended 31 December 2021

3. EMPLOYEES AND DIRECTORS
2021 2020
£    £   
Wages and salaries 1,754,114 1,685,749
Social security costs 50,860 53,439
Other pension costs 26,477 22,267
1,831,451 1,761,455

The average number of employees during the year was as follows:
2021 2020

Directors 5 5
Sales 2 2
Administration 32 28
39 35

2021 2020
£    £   
Directors' remuneration 414,719 431,126
Directors' pension contributions to money purchase schemes 2,932 2,628

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

Money purchase schemes 3 2

Information regarding the highest paid director is as follows:
2021 2020
£    £   
Emoluments etc 172,011 227,085
Pension contributions to money purchase schemes 1,319 1,314

4. OPERATING PROFIT

The operating profit is stated after charging:

2021 2020
£    £   
Other operating leases 64,042 48,616
Depreciation - owned assets 150,757 111,080
Depreciation - assets on finance leases 77,345 119,542
Loss on disposal of fixed assets 16,608 24,594
Auditors' remuneration 10,750 4,500

5. INTEREST PAYABLE AND SIMILAR EXPENSES
2021 2020
£    £   
Bank interest 12 12
Leasing 686 4,199
698 4,211

ELECTRICAL TESTING LIMITED (REGISTERED NUMBER: 02476049)

Notes to the Financial Statements - continued
for the year ended 31 December 2021

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2021 2020
£    £   
Current tax:
UK corporation tax 151,432 310,084
Adjustment for prior years (97,721 ) (152,200 )
Total current tax 53,711 157,884

Deferred tax 25,981 6,837
Tax on profit 79,692 164,721

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2021 2020
£    £   
Profit before tax 1,041,748 1,749,507
Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2020 - 19%)

197,932

332,406

Effects of:
Expenses not deductible for tax purposes 3,716 2,272
Income not taxable for tax purposes (40,229 ) (21,755 )
Adjustments to tax charge in respect of previous periods (97,721 ) (152,200 )
Structures & building allowance (2,572 ) (764 )
Super deduction allowance (5,447 ) -
Enhanced R&D deduction - (92,111 )
Change in tax rate 24,013 96,873
Total tax charge 79,692 164,721

7. DIVIDENDS
2021 2020
£    £   
Interim 330,000 301,561

ELECTRICAL TESTING LIMITED (REGISTERED NUMBER: 02476049)

Notes to the Financial Statements - continued
for the year ended 31 December 2021

8. TANGIBLE FIXED ASSETS
Improvements Fixtures
to Plant and and
property machinery fittings
£    £    £   
COST
At 1 January 2021 635,302 297,783 37,733
Additions 2,352 120,534 918
Disposals - (29,875 ) -
At 31 December 2021 637,654 388,442 38,651
DEPRECIATION
At 1 January 2021 57,839 193,050 16,756
Charge for year 23,371 27,437 5,388
Eliminated on disposal - (13,267 ) -
At 31 December 2021 81,210 207,220 22,144
NET BOOK VALUE
At 31 December 2021 556,444 181,222 16,507
At 31 December 2020 577,463 104,733 20,977

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 January 2021 701,234 252,293 1,924,345
Additions - 63,199 187,003
Disposals - - (29,875 )
At 31 December 2021 701,234 315,492 2,081,473
DEPRECIATION
At 1 January 2021 533,728 150,868 952,241
Charge for year 123,928 47,978 228,102
Eliminated on disposal - - (13,267 )
At 31 December 2021 657,656 198,846 1,167,076
NET BOOK VALUE
At 31 December 2021 43,578 116,646 914,397
At 31 December 2020 167,506 101,425 972,104

ELECTRICAL TESTING LIMITED (REGISTERED NUMBER: 02476049)

Notes to the Financial Statements - continued
for the year ended 31 December 2021

8. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under finance leases are as follows:
Motor
vehicles
£   
COST
At 1 January 2021 316,560
Transfer to ownership (246,422 )
At 31 December 2021 70,138
DEPRECIATION
At 1 January 2021 195,337
Charge for year 77,345
Transfer to ownership (228,021 )
At 31 December 2021 44,661
NET BOOK VALUE
At 31 December 2021 25,477
At 31 December 2020 121,223

9. STOCKS
2021 2020
£    £   
Stocks 430,851 386,876

10. DEBTORS
2021 2020
£    £   
Amounts falling due within one year:
Trade debtors 1,310,513 677,267
Applications 393,160 1,295,329
Other debtors 832 14,765
Directors' loan accounts 10,095 9,358
Tax 18,035 -
VAT debtor 105,472 -
Prepayments and accrued income 677,685 390,064
2,515,792 2,386,783

Amounts falling due after more than one year:
Tax 2,095 2,494

Aggregate amounts 2,517,887 2,389,277

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021 2020
£    £   
Finance leases (see note 13) 7,448 45,541
Trade creditors 477,183 390,676
Tax 151,432 310,084
Social security and other taxes 98,089 517,547
Other creditors 70,000 70,000
Accrued expenses 356,555 98,835
1,160,707 1,432,683

ELECTRICAL TESTING LIMITED (REGISTERED NUMBER: 02476049)

Notes to the Financial Statements - continued
for the year ended 31 December 2021

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2021 2020
£    £   
Finance leases (see note 13) - 7,448

13. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Finance leases
2021 2020
£    £   
Net obligations repayable:
Within one year 7,448 45,541
Between one and five years - 7,448
7,448 52,989

Non-cancellable operating leases
2021 2020
£    £   
Within one year 160,212 92,949
Between one and five years 79,745 112,298
239,957 205,247

14. SECURED DEBTS

The following secured debts are included within creditors:

2021 2020
£    £   
Finance leases 7,448 52,989

15. PROVISIONS FOR LIABILITIES
2021 2020
£    £   
Deferred tax 95,074 69,093

Deferred
tax
£   
Balance at 1 January 2021 69,093
Charge to Income Statement during year 25,981
Balance at 31 December 2021 95,074

16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2021 2020
value: £    £   
2 Ordinary £1 2 2

ELECTRICAL TESTING LIMITED (REGISTERED NUMBER: 02476049)

Notes to the Financial Statements - continued
for the year ended 31 December 2021

17. RESERVES
Retained
earnings
£   

At 1 January 2021 4,656,835
Profit for the year 962,056
Dividends (330,000 )
At 31 December 2021 5,288,891

Reserves wholly relate to distributable profit and loss reserves.

18. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 December 2021 and 31 December 2020:

2021 2020
£    £   
Mr A J Hobbs
Balance outstanding at start of year 1,073 -
Amounts advanced 104 1,073
Amounts repaid (1,073 ) -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 104 1,073

Mr S A Hobbs
Balance outstanding at start of year 8,088 71,558
Amounts advanced 7,064 8,088
Amounts repaid (5,358 ) (71,558 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 9,794 8,088

Mr J N Hill
Balance outstanding at start of year 198 -
Amounts advanced - 198
Amounts repaid - -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 198 198

Interest has been charge at HM Revenue & Customs' authorised rate where applicable.

19. RELATED PARTY DISCLOSURES

During the year sales of £1,439 (2020 - £4,007) were made to, and purchases of £366,763 (2020 - £304,682) were made from related companies. At the balance sheet date an amount of £79,968 (2020 - £62,904) was due to and £nil (2020 - £3,180) due from related companies.

At the balance sheet date the company owed £70,000 (2020 - £70,000) in respect of a loan from related parties.

20. ULTIMATE CONTROLLING PARTY

The company is a wholly owned subsidiary of Electrical Testing (Holdings) Limited incorporated in England.

Ultimate control of the company rests with Mr A J Hobbs and Mrs E J Hobbs.

ELECTRICAL TESTING LIMITED (REGISTERED NUMBER: 02476049)

Notes to the Financial Statements - continued
for the year ended 31 December 2021

21. PENSION SCHEME

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the profit or loss in the period to which they relate. There were no outstanding pension commitments at the year end.