Company registration number 02830447 (England and Wales)
IAN HOBBS TECHNICAL SERVICES LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
PAGES FOR FILING WITH REGISTRAR
IAN HOBBS TECHNICAL SERVICES LTD
BALANCE SHEET
AS AT
30 JUNE 2023
30 June 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
5
544,715
574,259
Investment properties
6
-
0
2,183,025
544,715
2,757,284
Current assets
Stocks
424,129
258,947
Debtors
7
2,223,239
644,920
Cash at bank and in hand
224,283
431,170
2,871,651
1,335,037
Creditors: amounts falling due within one year
8
(1,130,529)
(1,058,301)
Net current assets
1,741,122
276,736
Total assets less current liabilities
2,285,837
3,034,020
Creditors: amounts falling due after more than one year
9
(195,064)
(450,320)
Provisions for liabilities
9
(64,938)
(198,125)
Net assets
2,025,835
2,385,575
Capital and reserves
Called up share capital
10,000
10,000
Non-distributable profits reserve
-
0
790,723
Distributable profit and loss reserves
2,015,835
1,584,852
Total equity
2,025,835
2,385,575

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 30 June 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

IAN HOBBS TECHNICAL SERVICES LTD
BALANCE SHEET (CONTINUED)
AS AT
30 JUNE 2023
30 June 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 8 April 2024 and are signed on its behalf by:
I C Hobbs
C A Hobbs
Director
Director
Company Registration No. 02830447
IAN HOBBS TECHNICAL SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 3 -
1
Accounting policies
Company information

Ian Hobbs Technical Services Ltd is a private company, limited by shares and incorporated in England and Wales. The registered office is Unit 8, Charlton Business Park, Westfield Industrial Estate, Radstock, BA3 4BE. The company's registration number is 02830447.

 

The principal activity of the company during the year continued to be that of M & E engineering specifically including air conditioning, refrigeration, electrical, ventilation and renewables.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Turnover from contracts for the provision of professional services is recognised on completion.

1.3
Intangible fixed assets - goodwill

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
5% straight line
Plant and equipment
15% reducing balance
Fixtures and fittings
15% reducing balance
Motor vehicles
25% reducing balance
IAN HOBBS TECHNICAL SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 4 -

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is charged to profit or loss.

1.5
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.7
Stocks and WIP

Stocks and WIP are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks and WIP held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

IAN HOBBS TECHNICAL SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 5 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

IAN HOBBS TECHNICAL SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 6 -
1.14
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

2
Exceptional item

On 6 September 2022, the company transferred the investment properties to Hobbs Property Ltd as part of a reorganisation, resulting in a loss on transfer of £768,025.

 

3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Total
41
35
4
Intangible fixed assets
Goodwill
£
Cost
At 1 July 2022 and 30 June 2023
45,000
Amortisation
At 1 July 2022 and 30 June 2023
45,000
Carrying amount
At 30 June 2023
-
0
At 30 June 2022
-
0
IAN HOBBS TECHNICAL SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 7 -
5
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 July 2022
48,894
80,037
105,778
774,970
1,009,679
Additions
8,868
-
0
12,287
96,051
117,206
Disposals
-
0
-
0
(236)
-
0
(236)
At 30 June 2023
57,762
80,037
117,829
871,021
1,126,649
Depreciation
At 1 July 2022
8,117
62,553
49,301
315,449
435,420
Depreciation charged in the year
2,248
2,623
9,656
132,057
146,584
Eliminated in respect of disposals
-
0
-
0
(70)
-
0
(70)
At 30 June 2023
10,365
65,176
58,887
447,506
581,934
Carrying amount
At 30 June 2023
47,397
14,861
58,942
423,515
544,715
At 30 June 2022
40,777
17,484
56,477
459,521
574,259
6
Investment property
2023
£
Fair value
At 1 July 2022
2,183,025
Transfers
(2,183,025)
At 30 June 2023
-
0

On 6 September 2022, the investment properties totalling £1,415,000 were transferred to Hobbs Property Ltd, as part of a reorganisation.

7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
699,173
475,172
Other debtors
1,452,834
91,447
Prepayments and accrued income
71,232
78,301
2,223,239
644,920
IAN HOBBS TECHNICAL SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 8 -
8
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
103,446
116,204
Obligations under finance leases
109,837
99,955
Trade creditors
509,207
556,287
Corporation tax
182,765
96,312
Other taxation and social security
94,616
59,976
Other creditors
108,064
64,749
Accruals and deferred income
22,594
64,818
1,130,529
1,058,301

Obligations under finance lease and hire purchase contracts are secured against the assets to which they relate.

The other bank loan is secured by a fixed and floating charge over the assets of the company.

9
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans
20,644
288,605
Obligations under finance leases
174,420
161,715
195,064
450,320

See note 8 for security details.

10
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
65,542
136,096
Revaluations
-
62,633
Short term timing differences
(604)
(604)
64,938
198,125
IAN HOBBS TECHNICAL SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
10
Deferred taxation
(Continued)
- 9 -
2023
Movements in the year:
£
Liability at 1 July 2022
198,125
Credit to profit or loss
(70,554)
Transfer on disposal
(62,633)
Liability at 30 June 2023
64,938
11
Operating lease commitments
Lessee

On 6 September 2022, the company entered into a license to occupy the property owned by Hobbs Property Ltd, whom is related by ownership, the annual license fee is £28,000.

12
Related party transactions

At the year end, Hobbs Property Ltd a company in which is related by ownership, owes the company £1,421,328, it is interest free and repayable when sufficient funds are available.

 

13
Directors' transactions

At the year end, amounts totalling £9,520 (2022: £8,129 ) were owed to a director of the company.

 

At the year end, amounts totalling £7,888 (2022: £1,159) were owed by a director of the company.

14
Parent company

On 30 August 2022, Hobbs Investments (South West) Ltd, acquired 100% of the share capital of Ian Hobbs Technical Services Limited.

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