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REGISTERED NUMBER: SC289495 (Scotland)










Financial Statements

for the Year Ended

31 October 2023

for

THE ELECTRIC HEATING COMPANY LTD

THE ELECTRIC HEATING COMPANY LTD (REGISTERED NUMBER: SC289495)






Contents of the Financial Statements
for the Year Ended 31 October 2023




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


THE ELECTRIC HEATING COMPANY LTD

Company Information
for the Year Ended 31 October 2023







DIRECTORS: T W Walters
C Allan
D Barrett
D Leng





REGISTERED OFFICE: Block 5, Unit 40
Third Road
Blantyre Industrial Estate
Blantyre
G72 0UP





REGISTERED NUMBER: SC289495 (Scotland)





AUDITORS: WDM Associates (Statutory Auditors)
Oakfield House
378 Brandon Street
Motherwell
ML1 1XA

THE ELECTRIC HEATING COMPANY LTD (REGISTERED NUMBER: SC289495)

Balance Sheet
31 October 2023

2023 2022
Notes £    £   
FIXED ASSETS
Intangible assets 4 - -
Tangible assets 5 261,189 336,008
261,189 336,008

CURRENT ASSETS
Stocks 504,992 382,405
Debtors 6 4,101,685 3,595,445
Cash at bank and in hand 572,977 796,834
5,179,654 4,774,684
CREDITORS
Amounts falling due within one year 7 (1,062,499 ) (1,330,740 )
NET CURRENT ASSETS 4,117,155 3,443,944
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,378,344

3,779,952

CREDITORS
Amounts falling due after more than one year 8 (15,239 ) (69,132 )

PROVISIONS FOR LIABILITIES - (4,294 )
NET ASSETS 4,363,105 3,706,526

CAPITAL AND RESERVES
Called up share capital 17,022 17,022
Share premium 28,974 28,974
Retained earnings 4,317,109 3,660,530
SHAREHOLDERS' FUNDS 4,363,105 3,706,526

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 Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 23 July 2024 and were signed on its behalf by:




D Barrett - Director



C Allan - Director


THE ELECTRIC HEATING COMPANY LTD (REGISTERED NUMBER: SC289495)

Notes to the Financial Statements
for the Year Ended 31 October 2023

1. STATUTORY INFORMATION

The Electric Heating Company Ltd is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


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.

Turnover
Turnover represents the amounts derived from the provision of goods and services, excluding value added tax and trade discounts.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2006, was being amortised evenly over 20 years. The balance of goodwill brought forward from 2013 was written off in full in 2014 as the value was no longer relevant.

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.

Development costs are being amortised evenly over their estimated useful life of nil years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Freehold property - 2% on cost
Plant and machinery - 15% on reducing balance
Fixtures and fittings - 50% on cost and 20% on reducing balance
Motor vehicles - 25% on reducing balance

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

Basic financial instruments
Basic financial instruments, which include trade and other debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost.

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.


THE ELECTRIC HEATING COMPANY LTD (REGISTERED NUMBER: SC289495)

Notes to the Financial Statements - continued
for the Year Ended 31 October 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
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 20 (2022 - 18 ) .

4. INTANGIBLE FIXED ASSETS
Development
Goodwill costs Totals
£    £    £   
COST
At 1 November 2022
and 31 October 2023 48,611 58,534 107,145
AMORTISATION
At 1 November 2022
and 31 October 2023 48,611 58,534 107,145
NET BOOK VALUE
At 31 October 2023 - - -
At 31 October 2022 - - -

THE ELECTRIC HEATING COMPANY LTD (REGISTERED NUMBER: SC289495)

Notes to the Financial Statements - continued
for the Year Ended 31 October 2023

5. TANGIBLE FIXED ASSETS
Fixtures
Freehold Plant and and Motor
property machinery fittings vehicles Totals
£    £    £    £    £   
COST
At 1 November 2022 261,678 22,299 133,652 111,097 528,726
Additions - - 9,501 - 9,501
Disposals - - - (75,694 ) (75,694 )
At 31 October 2023 261,678 22,299 143,153 35,403 462,533
DEPRECIATION
At 1 November 2022 45,898 19,671 111,684 15,465 192,718
Charge for year 5,232 396 6,296 7,741 19,665
Eliminated on disposal - - - (11,039 ) (11,039 )
At 31 October 2023 51,130 20,067 117,980 12,167 201,344
NET BOOK VALUE
At 31 October 2023 210,548 2,232 25,173 23,236 261,189
At 31 October 2022 215,780 2,628 21,968 95,632 336,008

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST
At 1 November 2022 111,097
Disposals (75,694 )
At 31 October 2023 35,403
DEPRECIATION
At 1 November 2022 15,465
Charge for year 7,741
Eliminated on disposal (11,039 )
At 31 October 2023 12,167
NET BOOK VALUE
At 31 October 2023 23,236
At 31 October 2022 95,632

6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 583,209 636,934
Amounts owed by group undertakings 3,474,104 2,931,667
Deferred tax asset 3,803 -
Prepayments 40,569 26,844
4,101,685 3,595,445

THE ELECTRIC HEATING COMPANY LTD (REGISTERED NUMBER: SC289495)

Notes to the Financial Statements - continued
for the Year Ended 31 October 2023

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Hire purchase contracts (see note 9) 4,060 12,742
Trade creditors 665,729 722,703
Tax 125,507 325,654
Social security and other taxes 32,364 34,459
VAT 194,514 224,882
Accrued expenses 40,325 10,300
1,062,499 1,330,740

8. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Hire purchase contracts (see note 9) 15,239 69,132

9. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 4,060 12,742
Between one and five years 15,239 69,132
19,299 81,874

Non-cancellable operating leases
2023 2022
£    £   
Within one year 24,417 24,417
Between one and five years 39,189 63,642
63,606 88,059

THE ELECTRIC HEATING COMPANY LTD (REGISTERED NUMBER: SC289495)

Notes to the Financial Statements - continued
for the Year Ended 31 October 2023

10. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Hire purchase contracts 19,299 81,874

Hire purchase creditors are secured over the assets concerned.

Virgin Money hold a standard security over the property at Unit 40, Block 5 Third Road and a floating charge over all the property and undertakings of the company.

Foresight Group LLP (as security Trustee) hold a floating charge over all the property and undertakings of the company.

The charges are ranked as follows:

1st: Virgin Money standard security
2nd: Virgin Money floating charge
3rd: Foresight LLP floating charge

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

The Report of the Auditors was unqualified.

Graham Bonomy (Senior Statutory Auditor)
for and on behalf of WDM Associates (Statutory Auditors)

12. 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.

During the year, the company paid management fees of £295,497 to EHC Holdco, the ultimate parent company.

13. POST BALANCE SHEET EVENTS

The property was sold to EHC Holdco Limited on 27th February 2024 for £300,000.