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REGISTERED NUMBER: 03418561 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

FOR

AIRCO REFRIGERATION AND AIRCONDITIONING
LIMITED

AIRCO REFRIGERATION AND AIRCONDITIONING
LIMITED (REGISTERED NUMBER: 03418561)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 5

Report of the Independent Auditors 7

Income Statement 10

Other Comprehensive Income 11

Balance Sheet 12

Statement of Changes in Equity 13

Cash Flow Statement 14

Notes to the Cash Flow Statement 15

Notes to the Financial Statements 16


AIRCO REFRIGERATION AND AIRCONDITIONING
LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 MARCH 2023







DIRECTORS: N Fisher
C A Goodwin
N D Oxtoby
J Oxtoby





SECRETARY: A Dent





REGISTERED OFFICE: Airco House
Goulton Street
Hull
HU3 4DL





REGISTERED NUMBER: 03418561 (England and Wales)





AUDITORS: Wyatt Morris Golland Ltd
Statutory Auditors
Park House
200 Drake Street
Rochdale
Lancashire
OL16 1PJ

AIRCO REFRIGERATION AND AIRCONDITIONING
LIMITED (REGISTERED NUMBER: 03418561)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

The directors present their strategic report for the year ended 31 March 2023.

Once again the Company continues to experience significant growth year on year. The core services remain - Consultancy, installation, maintenance & repair of air conditioning refrigeration, plumbing, heating, and renewables.
The increased and strengthened management team continues to out perform its targets and the Company expansion program.
Growth has been experienced in all sectors, and we have seen more high value projects from a variety of clients, some existing and some new. Growth has also been seen with the expansion of a permanent presence in South Yorkshire with new premises and staff, expanding our original investment into the area.
Delivery of our services and our back-office functions have further developed with adoption of greater automation and cloud hosted services. This step has allowed remote working capability and a more robust platform on which we can scale up with greater ease.
Government guidance on buildings continues to be a major factor for many clients and its incentives for renewables has stimulated growth along with the general shift, headed by larger corporations and government bodies, being taken to reduce their carbon footprints.
Our field-based team continues to expand to meet the demands of present and on-going market needs. Fleet expenditure has risen in line with staff growth.
Once again the Company has added several large clients on nationwide agreements, this does impact in both a positive and a negative way. On the positive side it allows us to grow the workforce and benefit from economies of scale. Negative impact is that the early stages of large fleets of assets demand more 'front loaded' cost, administration and understanding.


AIRCO REFRIGERATION AND AIRCONDITIONING
LIMITED (REGISTERED NUMBER: 03418561)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

REVIEW OF BUSINESS
Our finance team are very adaptable and focused and manage debt with firm control and use automated reminder systems and paperless billing. Authorisation platforms have changed to both meet the growth in purchasing whilst ensuring approvals are routed strategically for audit and review.
R&D is recorded and managed each year, we also engage with a specialist R&D claims partner to ensure we claim correctly and accurately each year.
We continue to have a strong relationships with our funding partners and often review services and opportunities in line with our needs through the growth.
The board highlighted several strategic targets, data centres, NHS, business critical businesses and the local authority ASHP contract and additional housing partnership agreements as the renewables department is strong and very effective in this sector.
By introducing a ventilation manager/designer, accompanied by a CAD specialist we have a portfolio of service which we can offer to all our clients.
The client spend is spread quite widely with no one client accounting for more than 7% of our income.
A good proportion of our business remains in the government sector which ensures reliable payments and often sooner than terms seen in the private sector.
The current larger clients, with significant spend include:
- Mitsubishi Chemicals
- Priory Group
- Sheffield University
- Poundland
- East Riding of Yorkshire Council
- Virgin Media Group
- Anchor Housing
- West Hertfordshire Hospitals Trust
- Police Authorities
The order book continues year on year to be stronger than the last ensuring future and further growth.
Demand in our sector is still very strong and our size and coverage places us well to capitalize from this.
The Business monitors its department performance with KPI's appropriate to each team, reviewed annually.
The weekly sales review meeting includes:
- reviews weekly, monthly, year to date and comparison on previous years
- Nature of enquiries and volume against previous year
- Strategic and tactical guidance from the Directors on significant opportunities
The quarterly Sales Review Covers:
- Sales revenue
- Margins
- Team development
- Growth in existing client base
- New Client growth
The annual Sales plan Reviews and sets targets for:
- Department minimum standards - sales, installs, PPM, TM44 (this list is not exhaustive)
- Margin expectation
- Strategic targets
Operational reviews are undertaken monthly to review
- Strategic client profitability
- Resource demands

The Finance Team monitor and target:
- Monthly invoice value
- Work in Progress
- Outstanding debt be period
- Debtor days
- Credit cards - spend and allocation
- Stock and equipment allocation
The Operational Hubs monitor and target:
- Response
- First time fix
- Warranty
- Work in progress
- A host of client specific KPI's
HR Monitor and report:
- Absence
- Training
- H&S
- Recruitment

AIRCO REFRIGERATION AND AIRCONDITIONING
LIMITED (REGISTERED NUMBER: 03418561)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

- Any Disciplinary actions

PRINCIPAL RISKS AND UNCERTAINTIES
The industry is in high demand and there is no sign of this changing in the medium to long term, but we should always be aware that legislation, changes in power generation and global government policy could impact our industry.
Renewables are growing rapidly, and we are aware that there are still huge opportunities in this sector.
Staffing remains challenging as demand still outstrips supply, this places an upward pressure on wages and conditions, however, the current year has seen a level of stabilisation.
During the year there was an initial cost of different funding, increasing the finance costs and resultant effect on profit, however this has been addressed in the current year.

OTHER INFORMATION AND EXPLANATIONS
During the previous financial year Airco endured some major challenges with the new computer systems and cyber attack, these have now been totally resolved and strategically securely dealt with.

ON BEHALF OF THE BOARD:





N Fisher - Director


26 December 2023

AIRCO REFRIGERATION AND AIRCONDITIONING
LIMITED (REGISTERED NUMBER: 03418561)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MARCH 2023

The directors present their report with the financial statements of the company for the year ended 31 March 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of installation and servicing of airconditioning and refrigeration systems.

DIVIDENDS
No interim dividends were paid during the year ended 31 March 2023.

The directors recommend final dividends per share as follows:

Ordinary A 1 shares 10.25
Ordinary B 1 shares 714.94
Ordinary C 1 shares 83000.00

The total distribution of dividends for the year ended 31 March 2023 will be £ 220,032 .

DIRECTORS
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report.

N Fisher
C A Goodwin
N D Oxtoby

Other changes in directors holding office are as follows:

J Oxtoby - appointed 11 July 2022

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). 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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AIRCO REFRIGERATION AND AIRCONDITIONING
LIMITED (REGISTERED NUMBER: 03418561)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MARCH 2023


AUDITORS
The auditors, Wyatt Morris Golland Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:




N Fisher - Director


26 December 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
AIRCO REFRIGERATION AND AIRCONDITIONING
LIMITED

Qualified opinion

We have audited the financial statements of Airco Refrigeration and Airconditioning Limited (the company) for the year ended 31 March 2023 which comprise the Income Statement, Balance Sheet and 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, except for the effects of the matter described in the Basis for Qualified Opinion section, the financial statements:
- Give a true and fair view of the state of the company's affairs as at 31 December 2022 and of its loss 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 were not appointed as auditor of the company until after 31 March 2023 and therefore did not attend the stock take at the end of the year. Consequently we were unable to confirm the physical quantities of inventories and cannot therefore provide assurance to the accuracy at that date. However, from analytical review of both the income statement and balance sheet, we have not identified any anomalies that would suggest inventories were incorrectly stated. The profit margins remain consistent with prior years and post year end management information and all other testing that has been completed has been satisfactory.

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 Auditor’s 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 qualified 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
AIRCO REFRIGERATION AND AIRCONDITIONING
LIMITED


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.

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

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations

To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
AIRCO REFRIGERATION AND AIRCONDITIONING
LIMITED


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.




Christian Morris BSc ACA (Senior Statutory Auditor)
for and on behalf of Wyatt Morris Golland Ltd
Statutory Auditors
Park House
200 Drake Street
Rochdale
Lancashire
OL16 1PJ

26 December 2023

AIRCO REFRIGERATION AND AIRCONDITIONING
LIMITED (REGISTERED NUMBER: 03418561)

INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023

2023 2022
Notes £    £   

TURNOVER 3 19,047,609 16,666,168

Cost of sales 13,522,132 11,999,479
GROSS PROFIT 5,525,477 4,666,689

Administrative expenses 5,156,928 4,301,376
368,549 365,313

Other operating income 81,658 70,710
OPERATING PROFIT 5 450,207 436,023

Interest receivable and similar income 646 6
450,853 436,029
Gain/loss on revaluation of investment property 43,900 -
494,753 436,029

Interest payable and similar expenses 6 218,687 102,076
PROFIT BEFORE TAXATION 276,066 333,953

Tax on profit 7 88,407 91,334
PROFIT FOR THE FINANCIAL YEAR 187,659 242,619

AIRCO REFRIGERATION AND AIRCONDITIONING
LIMITED (REGISTERED NUMBER: 03418561)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 187,659 242,619


OTHER COMPREHENSIVE INCOME
Revaluation reserve 745,045 -
Fair value reserve 43,900 -
Revaluation depreciation transfer 255,204 -
Retained earnings reserve transfer (32,925 ) -
Income tax relating to components of other
comprehensive income

(197,236

)

-
OTHER COMPREHENSIVE INCOME FOR
THE YEAR, NET OF INCOME TAX

813,988

-
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

1,001,647

242,619

AIRCO REFRIGERATION AND AIRCONDITIONING
LIMITED (REGISTERED NUMBER: 03418561)

BALANCE SHEET
31 MARCH 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 - -
Tangible assets 10 3,171,455 2,075,760
Investments 11 30 30
Investment property 12 404,400 360,500
3,575,885 2,436,290

CURRENT ASSETS
Stocks 13 1,777,299 1,647,204
Debtors 14 5,378,128 4,665,809
Cash at bank and in hand 455,412 328,757
7,610,839 6,641,770
CREDITORS
Amounts falling due within one year 15 6,631,874 5,313,637
NET CURRENT ASSETS 978,965 1,328,133
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,554,850

3,764,423

CREDITORS
Amounts falling due after more than one year 16 (1,946,002 ) (2,197,561 )

PROVISIONS FOR LIABILITIES 20 (544,371 ) (284,000 )
NET ASSETS 2,064,477 1,282,862

CAPITAL AND RESERVES
Called up share capital 21 10,000 10,000
Revaluation reserve 22 558,784 -
Fair value reserve 22 32,925 -
Retained earnings 22 1,462,768 1,272,862
SHAREHOLDERS' FUNDS 2,064,477 1,282,862

The financial statements were approved by the Board of Directors and authorised for issue on 26 December 2023 and were signed on its behalf by:





N Fisher - Director


AIRCO REFRIGERATION AND AIRCONDITIONING
LIMITED (REGISTERED NUMBER: 03418561)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023

Called up Fair
share Retained Revaluation value Total
capital earnings reserve reserve equity
£    £    £    £    £   
Balance at 1 April 2021 10,000 1,219,843 - - 1,229,843

Changes in equity
Dividends - (189,600 ) - - (189,600 )
Total comprehensive income - 242,619 - - 242,619
Balance at 31 March 2022 10,000 1,272,862 - - 1,282,862

Changes in equity
Dividends - (220,032 ) - - (220,032 )
Total comprehensive income - 409,938 558,784 32,925 1,001,647
Balance at 31 March 2023 10,000 1,462,768 558,784 32,925 2,064,477

AIRCO REFRIGERATION AND AIRCONDITIONING
LIMITED (REGISTERED NUMBER: 03418561)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 361,199 550,316
Interest paid (137,942 ) (45,909 )
Interest element of hire purchase payments paid (80,745 ) (56,167 )
Tax paid (96,028 ) (38,843 )
Net cash from operating activities 46,484 409,397

Cash flows from investing activities
Purchase of tangible fixed assets (465,479 ) (208,035 )
Sale of tangible fixed assets 200 -
Interest received 646 6
Net cash from investing activities (464,633 ) (208,029 )

Cash flows from financing activities
New loans in year 1,418,892 367,500
Loan repayments in year (143,947 ) (105,360 )
Capital repayments in year (421,351 ) (166,114 )
Amount withdrawn by directors (88,758 ) (7,952 )
Equity dividends paid (220,032 ) (189,600 )
Net cash from financing activities 544,804 (101,526 )

Increase in cash and cash equivalents 126,655 99,842
Cash and cash equivalents at beginning of year 2 328,757 228,915

Cash and cash equivalents at end of year 2 455,412 328,757

AIRCO REFRIGERATION AND AIRCONDITIONING
LIMITED (REGISTERED NUMBER: 03418561)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Profit before taxation 276,066 333,953
Depreciation charges 370,032 466,448
Profit on disposal of fixed assets (198 ) -
Gain on revaluation of fixed assets (43,900 ) -
Increase in deferred tax - 555,552
Finance costs 218,687 102,076
Finance income (646 ) (6 )
820,041 1,458,023
Increase in stocks (130,095 ) (384,430 )
Increase in trade and other debtors (591,561 ) (1,673,877 )
Increase in trade and other creditors 262,814 1,150,600
Cash generated from operations 361,199 550,316

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 March 2023
31.3.23 1.4.22
£    £   
Cash and cash equivalents 455,412 328,757
Year ended 31 March 2022
31.3.22 1.4.21
£    £   
Cash and cash equivalents 328,757 228,915


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.4.22 Cash flow At 31.3.23
£    £    £   
Net cash
Cash at bank and in hand 328,757 126,655 455,412
328,757 126,655 455,412
Debt
Finance leases (1,387,939 ) (74,717 ) (1,462,656 )
Debts falling due within 1 year (145,567 ) (923,618 ) (1,069,185 )
Debts falling due after 1 year (1,135,129 ) 144,740 (990,389 )
(2,668,635 ) (853,595 ) (3,522,230 )
Total (2,339,878 ) (726,940 ) (3,066,818 )

AIRCO REFRIGERATION AND AIRCONDITIONING
LIMITED (REGISTERED NUMBER: 03418561)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

1. STATUTORY INFORMATION

Airco Refrigeration And Airconditioning 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 as modified by the revaluation of certain assets.

Preparation of consolidated financial statements
The company havs taken advantage of Companies Act 2006 section 405, exempting the company from being required to prepare group accounts on the basis that no subsidiary undertaking needs to be included in the consolidation. Under Companies Act 2006 section 405, the companies dormant subsidiary undertakings are excluded from being consolidated on the grounds of materiality.

Significant judgements and estimates
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised int he period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing material adjustment to the carrying amount of assets and liabilities are as follows:

Stock valuation
Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell.
The company's stock valuation is based on the experience and knowledge of management, and their in depth knowledge of the cost of their goods. They make suitable provision as necessary to provide for aging and refitted stock.

Depreciation
The depreciation policy has been set according to management's experience of the useful lives of a typical asset in each category, something which is reviewed annually. It is not considered practical to use a per unit basis to allocate depreciation without undue cost and therefore amounts are charged annually. The depreciation charged during the year was £370,032 (2022:£466,448) which the directors feel is a fair reflection of the benefits derived from the consumption of the tangible fixed assets in use during the period.

Changes in accounting policies
During the year, the company changed the accounting policy in respect of depreciation of motor vehicles. The 20% straight line policy left vehicles fully written off in the balance sheet after 5 years when value remained. It was therefore deemed more accurate to account for the depreciation at 20% reducing balance.

In addition, the freehold property which has previously been depreciated at 2% straight line has been revalued and the company has adopted a revaluation policy moving forwards.

AIRCO REFRIGERATION AND AIRCONDITIONING
LIMITED (REGISTERED NUMBER: 03418561)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

2. ACCOUNTING POLICIES - continued

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

Revenue 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 installation 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.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion costs incurred and costs to complete can be reliably estimated. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be reliably estimated, revenue is recognised only on the extent of the expenses recognised that it is probable will be recovered.

Rental income represents amounts receivable in respect of the rent of properties, net of VAT, and is recognised on an accrued straight line basis over the period of occupation.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2013, is being amortised evenly over its estimated useful life of five years.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery - 12.5% on cost and 25% and 50% straight line
Fixtures and fittings - 20% on cost
Motor vehicles - 20% on reducing balance

Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

Investment property
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

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

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

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 and loss. Reversals of impairment losses are also recognised in profit and loss.

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.


AIRCO REFRIGERATION AND AIRCONDITIONING
LIMITED (REGISTERED NUMBER: 03418561)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

2. ACCOUNTING POLICIES - continued
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
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.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2023 2022
£    £   
Sales of goods & installations 16,009,872 12,294,065
Sales of service & maintenance 3,037,737 4,372,103
19,047,609 16,666,168

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 19,047,609 16,666,168
19,047,609 16,666,168

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 6,154,827 5,102,160
Social security costs 527,162 446,043
Other pension costs 30,083 20,743
6,712,072 5,568,946

The average number of employees during the year was as follows:
2023 2022

Directors 4 3
Cost of sales 170 149
Administration 20 20
194 172

AIRCO REFRIGERATION AND AIRCONDITIONING
LIMITED (REGISTERED NUMBER: 03418561)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

4. EMPLOYEES AND DIRECTORS - continued

2023 2022
£    £   
Directors' remuneration 8,784 7,665

5. OPERATING PROFIT

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

2023 2022
£    £   
Hire of plant and machinery 17,010 29,629
Depreciation - owned assets 370,031 466,448
Profit on disposal of fixed assets (198 ) -
Auditors' remuneration 17,000 10,400

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank loan interest 104,295 45,909
Other interest 1,592 -
Fines 32,055 -
Hire purchase 80,745 56,167
218,687 102,076

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 14,297 91,334

Deferred tax 74,110 -
Tax on profit 88,407 91,334

AIRCO REFRIGERATION AND AIRCONDITIONING
LIMITED (REGISTERED NUMBER: 03418561)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

7. TAXATION - continued

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

2023 2022
£    £   
Profit before tax 276,066 333,953
Profit multiplied by the standard rate of corporation tax in the UK of 25% (2022 -
19%)

69,017

63,451

Effects of:
Expenses not deductible for tax purposes 8,983 1,689
Utilisation of tax losses (3,210 ) (4,718 )
Extra deferred tax due to change in tax rate 80,952 -
Change in tax rate effect on corporation tax (4,515 ) -
Capital allowances super deduction (32,011 ) (12,950 )
Over provision from prior year (30,809 ) 43,862
Total tax charge 88,407 91,334

Tax effects relating to effects of other comprehensive income

2023
Gross Tax Net
£    £    £   
Revaluation reserve 745,045 (186,261 ) 558,784
Fair value reserve 43,900 (10,975 ) 32,925
Revaluation depreciation transfer 255,204 - 255,204
Retained earnings reserve transfer (32,925 ) - (32,925 )
1,011,224 (197,236 ) 813,988

8. DIVIDENDS
2023 2022
£    £   
Ordinary A shares of 1 each
Final 102,000 84,000
Ordinary B shares of 1 each
Final 35,032 33,600
Ordinary C share of 1
Final 83,000 72,000
220,032 189,600

AIRCO REFRIGERATION AND AIRCONDITIONING
LIMITED (REGISTERED NUMBER: 03418561)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

9. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 April 2022
and 31 March 2023 286,894
AMORTISATION
At 1 April 2022
and 31 March 2023 286,894
NET BOOK VALUE
At 31 March 2023 -
At 31 March 2022 -

10. TANGIBLE FIXED ASSETS
Fixtures
Freehold Plant and and Motor
property machinery fittings vehicles Totals
£    £    £    £    £   
COST OR VALUATION
At 1 April 2022 973,655 307,460 236,013 2,240,474 3,757,602
Additions - 19,328 5,818 440,333 465,479
Disposals - - - (16,600 ) (16,600 )
Revaluations 745,045 - - - 745,045
At 31 March 2023 1,718,700 326,788 241,831 2,664,207 4,951,526
DEPRECIATION
At 1 April 2022 255,204 243,445 194,623 988,570 1,681,842
Charge for year - 34,243 22,587 313,201 370,031
Eliminated on disposal - - - (16,598 ) (16,598 )
Revaluation adjustments (255,204 ) - - - (255,204 )
At 31 March 2023 - 277,688 217,210 1,285,173 1,780,071
NET BOOK VALUE
At 31 March 2023 1,718,700 49,100 24,621 1,379,034 3,171,455
At 31 March 2022 718,451 64,015 41,390 1,251,904 2,075,760

The net book value of tangible fixed assets held under finance leases or hire purchase contracts amounted to £1,333,202 (2022 - £1,251,040).

Cost or valuation at 31 March 2023 is represented by:

Fixtures
Freehold Plant and and Motor
property machinery fittings vehicles Totals
£    £    £    £    £   
Valuation in 2023 745,045 - - - 745,045
Cost 973,655 326,788 241,831 2,664,207 4,206,481
1,718,700 326,788 241,831 2,664,207 4,951,526

During the year, the company obtained a valuation from Lawrence Hannah Property & Construction Consultants. At the year end, the directors have reviewed the valuation in line with commercial property indices.

AIRCO REFRIGERATION AND AIRCONDITIONING
LIMITED (REGISTERED NUMBER: 03418561)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

11. FIXED ASSET INVESTMENTS
Unlisted
investments
£   
COST
At 1 April 2022
and 31 March 2023 30
NET BOOK VALUE
At 31 March 2023 30
At 31 March 2022 30

12. INVESTMENT PROPERTY
Total
£   
FAIR VALUE
At 1 April 2022 360,500
Revaluations 43,900
At 31 March 2023 404,400
NET BOOK VALUE
At 31 March 2023 404,400
At 31 March 2022 360,500

Fair value at 31 March 2023 is represented by:
£   
Valuation in 2023 43,900
Cost 360,500
404,400

During the year, the company obtained a valuation from Lawrence Hannah Property & Construction Consultants. At the year end, the directors have reviewed the valuation in line with commercial property indices.

13. STOCKS
2023 2022
£    £   
Work-in-progress 871,154 942,423
Finished goods 906,145 704,781
1,777,299 1,647,204

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 4,727,342 4,263,415
Other debtors 55,799 31,350
Directors' current accounts 393,683 304,925
Tax 57,666 25,666
Prepayments 143,638 40,453
5,378,128 4,665,809

AIRCO REFRIGERATION AND AIRCONDITIONING
LIMITED (REGISTERED NUMBER: 03418561)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 17) 1,069,185 145,567
Hire purchase contracts (see note 18) 507,043 325,507
Trade creditors 2,765,084 2,525,680
Corporation tax 14,297 64,028
Social security and other taxes 806,647 742,994
Other creditors 68,541 200,700
Accrued expenses 1,401,077 1,309,161
6,631,874 5,313,637

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Bank loans (see note 17) 990,389 1,135,129
Hire purchase contracts (see note 18) 955,613 1,062,432
1,946,002 2,197,561

17. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 1,069,185 145,567

Amounts falling due between one and two years:
Bank loans - over 1 year 990,389 1,135,129

18. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 507,043 325,507
Between one and five years 955,613 1,062,432
1,462,656 1,387,939

Non-cancellable operating leases
2023 2022
£    £   
Within one year 13,186 5,807
Between one and five years 10,716 241
23,902 6,048

AIRCO REFRIGERATION AND AIRCONDITIONING
LIMITED (REGISTERED NUMBER: 03418561)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

19. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank loans 2,059,574 1,280,696

Bank loans are secured by fixed and floating charges over the freehold buildings and assets of the company and a personal guarantee from the directors.

20. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 544,371 284,000

Deferred
tax
£   
Balance at 1 April 2022 284,000
Charge to Income Statement during year 260,371
Balance at 31 March 2023 544,371

21. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
9,950 Ordinary A 1 9,950 9,950
49 Ordinary B 1 49 49
1 Ordinary C 1 1 1
10,000 10,000

22. RESERVES
Fair
Retained Revaluation value
earnings reserve reserve Totals
£    £    £    £   

At 1 April 2022 1,272,862 - - 1,272,862
Profit for the year 187,659 187,659
Dividends (220,032 ) (220,032 )
Revaluation in the year - 813,988 - 813,988
Reserve transfer 222,279 (255,204 ) 32,925 -
At 31 March 2023 1,462,768 558,784 32,925 2,054,477

AIRCO REFRIGERATION AND AIRCONDITIONING
LIMITED (REGISTERED NUMBER: 03418561)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

23. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 March 2023 and 31 March 2022:

2023 2022
£    £   
N Fisher
Balance outstanding at start of year 304,925 296,973
Amounts advanced 269,068 324,952
Amounts repaid (180,310 ) (317,000 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 393,683 304,925

The directors loan account has 0% interest being charged on it by the company.

24. RELATED PARTY DISCLOSURES

Other related parties
2023 2022
£    £   
Purchases 29,725 30,091
Management charges 430,716 359,008
Other administration costs 51,287 17,201
Amount due to related party 56,702 41,947

The above transactions were entered into with Chlorogas Limited, a company under common control of the directors.

25. ULTIMATE CONTROLLING PARTY

The controlling party is N Fisher.