NORTHERN VACUUMS LIMITED


Directors	ETHERIDGE, Gerald William
	ETHERIDGE, Harold Grant
	ETHERIDGE, Joan Isobel


Registered Address	10 Abbey St
	Carlisle
	CA3 8TX


Registered Number	00575688 (England and Wales)

Notes to the Financial Statements
for the year ended 31 March 2023

1.	Statutory information
	The company is a private company limited by shares and registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	Basis of measurement used in financial statements
	The financial statements have been prepared under the historical cost convention on a going concern basis unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

3.	Accounting policies

	Functional and presentation currency policy
	The financial statements are presented in sterling and this is the functional currency of the company.

	Turnover policy
	Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and/or the rendering of services. Turnover from the sale of goods is recognized when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognized by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

Turnover policy

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and/or the rendering of services.

Turnover from the sale of goods is recognized when the significant risks and rewards of ownership of the goods have transferred to the buyer. 

Turnover from the rendering of services is recognized by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

	Property, plant and equipment policy
	Tangible fixed assets are stated at cost or valuation less depreciation. The assets residual values, useful lives and depreciation methods are reviewed and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposal are determined by comparing the proceeds with the carrying amount and are recognised in the Income Statement. Depreciation is provided on all tangible fixed assets as follows:

Property, plant and equipment policy

Tangible fixed assets are stated at cost or valuation less depreciation. 

The assets residual values, useful lives and depreciation methods are reviewed and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposal are determined by comparing the proceeds with the carrying amount and are recognised in the Income Statement.

Depreciation is provided on all tangible fixed assets as follows:


	Reducing balance (%)	Straight line (years)
Land and buildings	-	50
Fixtures and fittings	15	-
Vehicles	25	-

	Stocks policy
	Stocks are valued at the lower of cost and estimated selling price (less any associated costs to enable such sales to complete). At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete the sale. The impairment loss is recognized immediately in the Statement of Earnings.

	Taxation policy
	Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

	Deferred tax policy
	Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.

Deferred tax policy

Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. 

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.

	Government grants and other government assistance policy
	Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income. Grants of a revenue nature are recognised in the Income Statement in the same period as the related expenditure.

Government grants and other government assistance policy

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
 
Grants of a revenue nature are recognised in the Income Statement in the same period as the related expenditure.

	Leases policy
	Assets held under finance leases, which are leases where substantially all the risks and rewards of ownership of the asset have passed to the company, and hire purchase contracts are capitalised in the Statement of Financial Position. They are depreciated over the shorter of their useful lives or the term of the lease. All other lease arrangements are classified as an operating lease Payments made under operating leases are charged to the Income Statement on a straight line basis over the lease term.

Leases policy

Assets held under finance leases, which are leases where substantially all the risks and rewards of ownership of the asset have passed to the company, and hire purchase contracts are capitalised in the Statement of Financial Position. They are depreciated over the shorter of their useful lives or the term of the lease. All other lease arrangements are classified as an operating lease

Payments made under operating leases are charged to the Income Statement on a straight line basis over the lease term.

	Investments policy
	Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value where the difference between cost and fair value is material. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the Income Statement.

Investments policy

Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value where the difference between cost and fair value is material. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the Income Statement.

	Employee benefits policy
	The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further obligation. Contributions to defined contribution plans are expensed in the period to which they relate. Amounts not paid are shown in accruals in the Statement of financial position. The assets of the plan are held separately from the company in independently administered funds.

Employee benefits policy

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further obligation. 

Contributions to defined contribution plans are expensed in the period to which they relate.  Amounts not paid are shown in accruals in the Statement of financial position.  The assets of the plan are held separately from the company in independently administered funds.

	Valuation of financial instruments policy
	The Company enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

4.	Employee information


		2023		2022
	Average number of employees during the year	15		17

5.	Property, plant and equipment

	Land & buildings	Vehicles	Fixtures & fittings	Total
	£	£	£	£
Cost or valuation
At 01 April 22	398,489	84,930	20,888	504,307
Additions	-	53,315	-	53,315
At 31 March 23	398,489	138,245	20,888	557,622
Depreciation and impairment
At 01 April 22	175,540	60,082	18,863	254,485
Charge for year	7,970	16,208	304	24,482
At 31 March 23	183,510	76,290	19,167	278,967
Net book value
At 31 March 23	214,979	61,955	1,721	278,655
At 31 March 22	222,949	24,848	2,025	249,822

6.	Fixed asset investments
	Other investments relate to a 0.12% shareholding in Combined Independent Holdings Limited, a company registered in England and Wales. On 31 March 2022 this investment was revalued on a fair value basis and it is the opinion of the directors that this valuation has not materiality altered at the reporting date.

	Other investments¹	Total
	£	£
Cost or valuation
At 01 April 22	72,565	72,565
Revaluations	5,916	5,916
At 31 March 23	78,481	78,481
Net book value
At 31 March 23	78,481	78,481
At 31 March 22	72,565	72,565

	Notes
	¹Other investments other than loans

7.	Off balance sheet pension commitments
	The pension cost charge represents contributions payable by the company to the fund and amounted to £8,607 (2022 - £7,097) and £10,080 (2022 - £10,312) for employees and directors respectively.

8.	Stocks

	2023	2022
	£	£
Finished goods	544,908	464,631
Total	544,908	464,631

9.	Debtors

	2023	2022
	£	£
Trade debtors / trade receivables	44,825	97,879
Prepayments and accrued income	9,621	12,592
Total	54,446	110,471


	Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.

Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.

10.	Creditors within one year

	2023	2022
	£	£
Trade creditors / trade payables	145,346	111,129
Taxation and social security	26,600	62,941
Other creditors	70,123	72,069
Accrued liabilities and deferred income	58,455	51,712
Total	300,524	297,851


	Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.

11.	Provisions for liabilities
	The provision for deferred tax arises from the fair value adjustment on investments of £17,500 with the remainder being accelerated capital allowances claimed in respect of tangible assets.

	2023	2022
	£	£
Net deferred tax liability (asset)	34,500	27,500
Total	34,500	27,500

	Notes	2023		2022
		£	£	£	£
Fixed assets
Tangible assets	5		278,655		249,822
Investments	6		78,481		72,565
			357,136		322,387
Current assets
Stocks	8	544,908		464,631
Debtors	9	54,446		110,471
Cash at bank and on hand		183,960		229,285
		783,314		804,387
Creditors amounts falling due within one year	10	(300,524)		(297,851)
Net current assets (liabilities)			482,790		506,536
Total assets less current liabilities			839,926		828,923
Provisions for liabilities	11		(34,500)		(27,500)
Net assets			805,426		801,423
Capital and reserves
Called up share capital			887		887
Revaluation reserve			47,758		53,675
Other reserves			113		113
Profit and loss account			756,668		746,748
Shareholders' funds			805,426		801,423