Company registration number 13357447 (England and Wales)
TERRATHERM LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
TERRATHERM LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 5
TERRATHERM LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
37,668
15,544
Current assets
Stocks
88,927
74,888
Debtors
4
820,669
231,364
Cash at bank and in hand
55,954
145,890
965,550
452,142
Creditors: amounts falling due within one year
5
(693,145)
(233,061)
Net current assets
272,405
219,081
Total assets less current liabilities
310,073
234,625
Provisions for liabilities
(9,417)
(2,427)
Net assets
300,656
232,198
Capital and reserves
Called up share capital
6
100
100
Profit and loss reserves
300,556
232,098
Total equity
300,656
232,198
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 31 December 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.
The financial statements were approved by the board of directors and authorised for issue on 3 April 2024 and are signed on its behalf by:
Mr D P Blackmore
Director
Company Registration No. 13357447
TERRATHERM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
Terratherm Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 3&4, Maritme Court, Bedwas House Industrial Estate, Caerphilly, CF83 8HU.
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. 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.
1.3
Tangible fixed assets
Tangible fixed assets are measured at cost, 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 improvements
20% on cost
Plant and equipment
20% on cost
Fixtures and fittings
20% on cost
Computers
33% on cost
Motor vehicles
20% on cost
1.4
Stocks
Stocks 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.
1.5
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.
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 profit and loss account in other administrative expenses.
TERRATHERM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
1.6
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.
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.
1.7
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.8
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
3
2
TERRATHERM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
3
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
19,844
19,844
Additions
8,262
8,773
3,400
8,340
28,775
Disposals
(147)
(147)
At 31 December 2023
8,262
8,773
3,400
8,193
19,844
48,472
Depreciation and impairment
At 1 January 2023
4,300
4,300
Depreciation charged in the year
693
780
357
714
3,968
6,512
Eliminated in respect of disposals
(8)
(8)
At 31 December 2023
693
780
357
706
8,268
10,804
Carrying amount
At 31 December 2023
7,569
7,993
3,043
7,487
11,576
37,668
At 31 December 2022
15,544
15,544
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
399,544
224,751
Amounts owed by group undertakings
151,773
Other debtors
269,352
6,613
820,669
231,364
5
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
218,430
119,134
Amounts owed to group undertakings
37,779
Corporation tax
36,432
54,730
Other taxation and social security
10,346
5,282
Other creditors
427,937
16,136
693,145
233,061
TERRATHERM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
6
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
7
Directors' transactions
The directors operate a current loan account with the company, which is debited with payments made by the company on behalf of the directors and credited with funds introduced and undrawn directors' fees. At the year end, the amount owed to the directors was £0 (2022 - £10,479); this amount being included in creditors: amounts falling due within one year.
8
Related party transactions
Included in debtors: amounts falling due within one year is an amount of £151,773 (2022 - £37,779 creditor) for a loan to Thermal Energy Group Ltd, its parent company.
9
Parent company
The parent company is Thermal Energy Group Ltd, whose registered office address is Unit 1b Gallagher Retail Park, Parc Pontypandy, Caerphilly, CF83 3GX.