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REGISTERED NUMBER: 04582363 (England and Wales)


















Earthing Risk Management Limited

Financial Statements for the Year Ended 30 June 2023






Earthing Risk Management Limited (Registered number: 04582363)






Contents of the Financial Statements
for the year ended 30 June 2023




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


Earthing Risk Management Limited

Company Information
for the year ended 30 June 2023







DIRECTORS: N Minns
P Papanastasiou
M J Straker
J R Shipley





SECRETARY: J R Shipley





REGISTERED OFFICE: Yorkshire House
York Road
Little Driffield
Driffield
East Yorkshire
YO25 5XA





REGISTERED NUMBER: 04582363 (England and Wales)





AUDITORS: Baines Jewitt Limited
Statutory Auditor
Spitfire House
19 Falcon Court
Preston Farm Industrial Estate
Stockton on Tees
TS18 3TU

Earthing Risk Management Limited (Registered number: 04582363)

Balance Sheet
30 June 2023

2023 2022
Notes £    £   
FIXED ASSETS
Tangible assets 4 20,673 16,051

CURRENT ASSETS
Debtors 5 1,301,525 1,301,195
Cash at bank and in hand 217,504 156,449
1,519,029 1,457,644
CREDITORS
Amounts falling due within one year 6 (227,837 ) (212,322 )
NET CURRENT ASSETS 1,291,192 1,245,322
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,311,865

1,261,373

PROVISIONS FOR LIABILITIES (4,659 ) (1,820 )
NET ASSETS 1,307,206 1,259,553

CAPITAL AND RESERVES
Called up share capital 7 23 23
Share premium 283,582 283,582
Retained earnings 1,023,601 975,948
SHAREHOLDERS' FUNDS 1,307,206 1,259,553

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

In accordance with Section 444 of the Companies Act 2006, the Profit and loss account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 28 March 2024 and were signed on its behalf by:





J R Shipley - Director


Earthing Risk Management Limited (Registered number: 04582363)

Notes to the Financial Statements
for the year ended 30 June 2023

1. STATUTORY INFORMATION

Earthing Risk Management 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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared on a going concern basis. The directors have taken note of the guidance issued by the Financial Reporting Council on Going Concern Assessments in determining that this is the appropriate basis of preparation of the financial statements and have considered a number of factors. This has specifically included reviewing banking facilities in place and detailed forecasting using sensitivity analysis to ensure that the worst case scenario situation does not put the going concern concept at risk.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Turnover
Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows:

Rendering of services

Turnover represents the value of services provided under contracts to the extent that there is a right to consideration and is recorded at the value of that consideration due. Where a contract has only been partially completed at the balance sheet date turnover represents the value of the services provided to date based on a proportion of the total expected consideration at completion.

Contract work in progress is included in debtors stated at net realisable value. Cumulative turnover (i.e. the total turnover recorded in respect of the contract in the profit and loss accounts of all accounting periods since inception of the contract) is compared with total payments on account. If turnover exceeds payments on account an "amount recoverable on contracts" is established and separately disclosed within debtors. If payments on account are greater than turnover to date, the excess is classified within creditors.

Payments on account include all direct expenditure and an appropriate proportion of fixed and variable overheads.

Tangible fixed assets
Tangible fixed assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. Cost includes those costs that are directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Plant and machinery etc - 25% on reducing balance and 25% on cost


Earthing Risk Management Limited (Registered number: 04582363)

Notes to the Financial Statements - continued
for the year ended 30 June 2023

2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and loss account, 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.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


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.

Operating lease rentals
Rentals payable under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

Debtors and creditors receivable / payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the statement of comprehensive income in other administrative expenses.

Loans and borrowings
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment.

Impairment
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 13 (2022 - 13 ) .

Earthing Risk Management Limited (Registered number: 04582363)

Notes to the Financial Statements - continued
for the year ended 30 June 2023

4. TANGIBLE FIXED ASSETS
Plant and
machinery
etc
£   
COST
At 1 July 2022 132,407
Additions 23,097
Disposals (37,769 )
At 30 June 2023 117,735
DEPRECIATION
At 1 July 2022 116,356
Charge for year 8,372
Eliminated on disposal (27,666 )
At 30 June 2023 97,062
NET BOOK VALUE
At 30 June 2023 20,673
At 30 June 2022 16,051

5. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 242,469 198,178
Amounts owed by group undertakings 818,314 812,738
Amounts recoverable on contract 194,531 208,408
Other debtors 46,211 81,871
1,301,525 1,301,195

6. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade creditors 13,414 10,990
Amounts owed to group undertakings 60,365 60,365
Taxation and social security 84,167 72,027
Other creditors 69,891 68,940
227,837 212,322

7. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
1,100 Ordinary A £0.01 11 11
900 Ordinary B £0.01 9 9
330 Ordinary C £0.01 3 3
23 23

Earthing Risk Management Limited (Registered number: 04582363)

Notes to the Financial Statements - continued
for the year ended 30 June 2023

8. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Donald Adams FCA (Senior Statutory Auditor)
for and on behalf of Baines Jewitt Limited

9. CONTINGENT LIABILITIES

The company is party to an unlimited debenture in favour of HSBC UK Bank Plc, together with its ultimate parent undertaking, in respect of group borrowings which are secured by fixed and floating charges over all assets of the company. The potential liability under the arrangement at 30 June 2023 was £2,315,715 (2022: £3,000,000).

The company is party to an unlimited debenture in favour of three of the directors, together with its ultimate parent undertaking, in respect of group borrowings which are secured by fixed and floating charges over all assets of the company. The potential liability under the arrangement at 30 June 2023 was £826,715 (2022: £947,245).

10. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

11. ULTIMATE CONTROLLING PARTY

The ultimate parent company is LSTC Group Limited. The registered office of this company is Yorkshire House, York Road, Little Driffield, Driffield, East Yorkshire, YO25 5XA. The consolidated financial statements of LSTC Group Limited are available to the public and may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.