REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 December 2021 |
for |
ELECTRICAL TESTING LIMITED |
REGISTERED NUMBER: |
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: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
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: |
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. |
Other changes in directors holding office are as follows: |
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: |
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. |
for and on behalf of |
Ingram House |
6 Meridian Way |
Norwich |
NR7 0TA |
ELECTRICAL TESTING LIMITED (REGISTERED NUMBER: 02476049) |
Income Statement |
for the year ended 31 December 2021 |
2021 | 2020 |
Notes | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
OPERATING PROFIT | 4 |
Interest receivable and similar income |
1,042,446 | 1,753,718 |
Interest payable and similar expenses | 5 |
PROFIT BEFORE TAXATION |
Tax on profit | 6 |
PROFIT FOR THE FINANCIAL YEAR |
ELECTRICAL TESTING LIMITED (REGISTERED NUMBER: 02476049) |
Other Comprehensive Income |
for the year ended 31 December 2021 |
2021 | 2020 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
ELECTRICAL TESTING LIMITED (REGISTERED NUMBER: 02476049) |
Balance Sheet |
31 December 2021 |
2021 | 2020 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 8 |
CURRENT ASSETS |
Stocks | 9 |
Debtors | 10 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 11 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
12 |
( |
) |
PROVISIONS FOR LIABILITIES | 15 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 16 |
Retained earnings | 17 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
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 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2020 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2021 |
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 |
Interest paid | ( |
) | ( |
) |
Interest element of finance lease payments paid |
( |
) |
( |
) |
Tax paid | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Capital repayments in year | ( |
) | ( |
) |
Amount introduced by directors | 969 | 63,470 |
Amount withdrawn by directors | (1,706 | ) | (1,881 | ) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year |
2 |
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 |
Depreciation charges |
Loss on disposal of fixed assets |
Finance costs | 698 | 4,211 |
Finance income | (579 | ) | (3,521 | ) |
1,286,577 | 2,005,414 |
Increase in stocks | ( |
) | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
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 | 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 |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 |
Land and buildings | Over the lease period |
Plant and machinery etc | 15% - 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 |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2021 | 2020 |
Directors | 5 | 5 |
Sales | 2 | 2 |
Administration | 32 | 28 |
2021 | 2020 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
2021 | 2020 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
2021 | 2020 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Depreciation - assets on finance leases |
Loss on disposal of fixed assets |
Auditors' remuneration |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2021 | 2020 |
£ | £ |
Bank interest |
Leasing |
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 |
Adjustment for prior years | (97,721 | ) | (152,200 | ) |
Total current tax |
Deferred tax |
Tax on profit |
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 |
Profit multiplied by the standard rate of corporation tax in the UK of (2020 - |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) | ( |
) |
Adjustments to tax charge in respect of previous periods | ( |
) | ( |
) |
Structures & building allowance | ( |
) | ( |
) |
Super deduction allowance | ( |
) |
Enhanced R&D deduction | ( |
) |
Change in tax rate |
Total tax charge | 79,692 | 164,721 |
7. | DIVIDENDS |
2021 | 2020 |
£ | £ |
Interim |
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 |
Additions |
Disposals | ( |
) |
At 31 December 2021 |
DEPRECIATION |
At 1 January 2021 |
Charge for year |
Eliminated on disposal | ( |
) |
At 31 December 2021 |
NET BOOK VALUE |
At 31 December 2021 |
At 31 December 2020 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 January 2021 |
Additions |
Disposals | ( |
) |
At 31 December 2021 |
DEPRECIATION |
At 1 January 2021 |
Charge for year |
Eliminated on disposal | ( |
) |
At 31 December 2021 |
NET BOOK VALUE |
At 31 December 2021 |
At 31 December 2020 |
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 |
Transfer to ownership | (246,422 | ) |
At 31 December 2021 |
DEPRECIATION |
At 1 January 2021 |
Charge for year |
Transfer to ownership | (228,021 | ) |
At 31 December 2021 |
NET BOOK VALUE |
At 31 December 2021 |
At 31 December 2020 |
9. | STOCKS |
2021 | 2020 |
£ | £ |
Stocks |
10. | DEBTORS |
2021 | 2020 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Applications | 393,160 | 1,295,329 |
Other debtors |
Directors' loan accounts | 10,095 | 9,358 |
Tax |
VAT debtor | 105,472 | - |
Prepayments and accrued income |
Amounts falling due after more than one year: |
Tax |
Aggregate amounts |
11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Finance leases (see note 13) |
Trade creditors |
Tax |
Social security and other taxes |
Other creditors |
Accrued expenses |
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) |
13. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Finance leases |
2021 | 2020 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable operating | leases |
2021 | 2020 |
£ | £ |
Within one year |
Between one and five years |
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 |
Charge to Income Statement during year |
Balance at 31 December 2021 |
16. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | £ | £ |
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 |
Profit for the year |
Dividends | ( |
) |
At 31 December 2021 |
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 |
£ | £ |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
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. |