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REGISTERED NUMBER: 01665995 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2023

FOR

THERMAL ECONOMICS LIMITED

THERMAL ECONOMICS LIMITED (REGISTERED NUMBER: 01665995)

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










Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Statement of Comprehensive Income 9

Statement of Financial Position 10

Statement of Changes in Equity 11

Statement of Cash Flows 12

Notes to the Statement of Cash Flows 13

Notes to the Financial Statements 14


THERMAL ECONOMICS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 OCTOBER 2023







DIRECTORS: R Belanyi
H Brown





SECRETARY: R Belanyi





REGISTERED OFFICE: 8 Cardiff Road
Luton
Bedfordshire
LU1 1PP





REGISTERED NUMBER: 01665995 (England and Wales)





AUDITORS: Ad Valorem Audit Services Limited
Chartered Certified Accountants
& Statutory Auditors
2 Manor Farm Court
Old Wolverton Road
Old Wolverton
Milton Keynes
Buckinghamshire
MK12 5NN

THERMAL ECONOMICS LIMITED (REGISTERED NUMBER: 01665995)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023


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

REVIEW OF BUSINESS
The company's principal activity is that of specialist suppliers of sound and thermal insulation technology products.

Turnover and net profit before tax have decreased this year by 27.8% and 25.5% respectively. Despite the difficult trading conditions in the housing market, the company's financial position has remained strong throughout the year.

PRINCIPAL RISKS AND UNCERTAINTIES
The company's activities are entirely within the construction and civil engineering industry. The company's products are sold to a large number of customers through both direct and indirect channels. The loss of any major customer is seen as a potential risk but the directors are confident that, in the light of the company's continuing product development, any lost sales would soon be replaced.

Where it is practicable and cost-effective to do so, the company insures against normal commercial risks, notably in the areas of public liability and employer's liability.

The risks to which the company is exposed are continually monitored by the directors, and steps are taken to mitigate and manage those risks where it is considered reasonable and practicable to do so.

KEY PERFORMANCE INDICATORS
Period Turnover Profit Before Tax
31 October 2023 £17,137,666 £2,603,417
31 October 2022 £23,739,057 £3,492,421

ON BEHALF OF THE BOARD:





R Belanyi - Director


28 July 2024

THERMAL ECONOMICS LIMITED (REGISTERED NUMBER: 01665995)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 OCTOBER 2023


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

DIVIDENDS
Interim dividends per share were paid as follows:
400 - 14 November 2022
250 - 8 February 2023
100 - 11 May 2023
150 - 12 July 2023
250 - 5 October 2023
£1,150

The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 October 2023 will be £ 2,300,000 .

RESEARCH AND DEVELOPMENT
The company will monitor any research and development opportunities as appropriate.

FUTURE DEVELOPMENTS
The company will continue to strive to improve it's market share and profitability.

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

R Belanyi
H Brown

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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.

THERMAL ECONOMICS LIMITED (REGISTERED NUMBER: 01665995)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 OCTOBER 2023


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.

ON BEHALF OF THE BOARD:





R Belanyi - Director


28 July 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
THERMAL ECONOMICS LIMITED


Opinion
We have audited the financial statements of Thermal Economics Limited (the 'company') for the year ended 31 October 2023 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 October 2023 and of its profit 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 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 Auditors' 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 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
THERMAL ECONOMICS LIMITED


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.

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 three, 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
THERMAL ECONOMICS LIMITED


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:

In our process of identifying fraud risks we assessed events or conditions that indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud ("fraud risk factors") to determine how fraud risks are relevant to our audit. Based on the auditing standards we addressed two fraud risks that were relevant to our audit, in relation to revenue recognition and management override of controls. Based upon our analysis of fraud risk factors, we have not identified any additional fraud risks.

Our audit procedures included an evaluation of the design, implementation as well as the operating effectiveness of internal controls relevant to mitigate these risks. We also performed substantive audit procedures, including detailed testing of high risk journal entries and procedures to satisfy ourselves that revenue has been properly recognised in the financial statements in accordance with financial reporting standards and the Company's accounting policies. Through these procedures, we did not identify any material actual or suspected incidences of fraud.

We have evaluated facts and circumstances in order to assess laws and regulations relevant to the Company. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general and sector experience, through discussion with the Directors and other management (as required by auditing standards) and discussed with the Directors and other management the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the Company is subject to laws and regulations that directly affect the financial statements including taxation and financial reporting (including related company legislation) and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly, the Company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect:

- Employment legislation, reflecting the Company's workforce
- Health and safety regulation, reflecting the Company's production, distribution and operating processes
- Data privacy, reflecting the Company's management of personal and corporate data

Auditing standards limit the required audit procedures to identify non-compliance with these regulations to enquiry of the Directors and other management and inspection of regulatory and legal correspondence, if any. Through these procedures we did not identify any material actual or suspected non-compliance in any of the above areas.


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
THERMAL ECONOMICS LIMITED

We note that our audit is not primarily designed to detect non-compliance with laws and regulations and the Directors and other management are responsible for such internal control as the Directors and other management of the Company determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to errors or fraud, including compliance with laws and regulations. Additionally, owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations

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.

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.




Darren Kerins FCCA (Senior Statutory Auditor)
for and on behalf of Ad Valorem Audit Services Limited
Chartered Certified Accountants
& Statutory Auditors
2 Manor Farm Court
Old Wolverton Road
Old Wolverton
Milton Keynes
Buckinghamshire
MK12 5NN

29 July 2024

THERMAL ECONOMICS LIMITED (REGISTERED NUMBER: 01665995)

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2023

2023 2022
Notes £ £ £ £

TURNOVER 4 17,137,666 23,739,057

Cost of sales 13,217,560 18,894,184
GROSS PROFIT 3,920,106 4,844,873

Distribution costs 102,509 99,076
Administrative expenses 1,281,673 1,299,247
1,384,182 1,398,323
2,535,924 3,446,550

Other operating income 47,722 47,722
OPERATING PROFIT 6 2,583,646 3,494,272

Interest receivable and similar income 27,516 4,836
2,611,162 3,499,108

Interest payable and similar expenses 7 7,745 6,687
PROFIT BEFORE TAXATION 2,603,417 3,492,421

Tax on profit 8 593,939 648,898
PROFIT FOR THE FINANCIAL YEAR 2,009,478 2,843,523

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

2,009,478

2,843,523

THERMAL ECONOMICS LIMITED (REGISTERED NUMBER: 01665995)

STATEMENT OF FINANCIAL POSITION
31 OCTOBER 2023

2023 2022
Notes £ £ £ £
FIXED ASSETS
Tangible assets 10 412,855 420,874

CURRENT ASSETS
Stocks 11 356,837 339,533
Debtors: amounts falling due within one
year

12

3,862,875

6,073,653
Cash at bank and in hand 301,063 337,993
4,520,775 6,751,179
CREDITORS
Amounts falling due within one year 13 1,762,450 3,709,916
NET CURRENT ASSETS 2,758,325 3,041,263
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,171,180

3,462,137

PROVISIONS FOR LIABILITIES 16 3,368 3,803
NET ASSETS 3,167,812 3,458,334

CAPITAL AND RESERVES
Called up share capital 17 2,000 2,000
Share premium 18 500 500
Retained earnings 18 3,165,312 3,455,834
SHAREHOLDERS' FUNDS 3,167,812 3,458,334

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





R Belanyi - Director


THERMAL ECONOMICS LIMITED (REGISTERED NUMBER: 01665995)

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

Called up
share Retained Share Total
capital earnings premium equity
£ £ £ £
Balance at 1 November 2021 2,000 3,212,311 500 3,214,811

Changes in equity
Dividends - (2,600,000 ) - (2,600,000 )
Total comprehensive income - 2,843,523 - 2,843,523
Balance at 31 October 2022 2,000 3,455,834 500 3,458,334

Changes in equity
Dividends - (2,300,000 ) - (2,300,000 )
Total comprehensive income - 2,009,478 - 2,009,478
Balance at 31 October 2023 2,000 3,165,312 500 3,167,812

THERMAL ECONOMICS LIMITED (REGISTERED NUMBER: 01665995)

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023

2023 2022
Notes £ £
Cash flows from operating activities
Cash generated from operations 1 2,844,428 3,257,133
Interest paid (7,745 ) (6,687 )
Tax paid (600,001 ) (653,557 )
Net cash from operating activities 2,236,682 2,596,889

Cash flows from investing activities
Purchase of tangible fixed assets (2,385 ) (2,079 )
Interest received 27,516 4,836
Net cash from investing activities 25,131 2,757

Cash flows from financing activities
Amount introduced by directors 1,257 -
Equity dividends paid (2,300,000 ) (2,600,000 )
Net cash from financing activities (2,298,743 ) (2,600,000 )

Decrease in cash and cash equivalents (36,930 ) (354 )
Cash and cash equivalents at
beginning of year

2

337,993

338,347

Cash and cash equivalents at end of
year

2

301,063

337,993

THERMAL ECONOMICS LIMITED (REGISTERED NUMBER: 01665995)

NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£ £
Profit before taxation 2,603,417 3,492,421
Depreciation charges 10,404 11,855
Finance costs 7,745 6,687
Finance income (27,516 ) (4,836 )
2,594,050 3,506,127
Increase in stocks (17,304 ) (25,016 )
Decrease/(increase) in trade and other debtors 2,210,778 (795,098 )
(Decrease)/increase in trade and other creditors (1,943,096 ) 571,120
Cash generated from operations 2,844,428 3,257,133

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 October 2023
31/10/23 1/11/22
£ £
Cash and cash equivalents 301,063 337,993
Year ended 31 October 2022
31/10/22 1/11/21
£ £
Cash and cash equivalents 337,993 338,347


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1/11/22 Cash flow At 31/10/23
£ £ £
Net cash
Cash at bank and in hand 337,993 (36,930 ) 301,063
337,993 (36,930 ) 301,063
Total 337,993 (36,930 ) 301,063

THERMAL ECONOMICS LIMITED (REGISTERED NUMBER: 01665995)

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


1. STATUTORY INFORMATION

Thermal Economics 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.

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


2. STATEMENT OF COMPLIANCE

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.

3. ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS
The financial statements have been prepared under the historical cost convention.

TURNOVER
The company's turnover represents the value, excluding value added tax, of goods and services supplied to customers during the year. Revenue is recognised at the point when the goods or services have been supplied to the customer and a right to consideration arises therefrom.

TANGIBLE FIXED ASSETS
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.
Freehold property - 2% on cost
Fixtures and fittings - 25% on reducing balance

No depreciation is provided on freehold land.

STOCKS
Stocks, which comprise finished goods held for sale, are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.


THERMAL ECONOMICS LIMITED (REGISTERED NUMBER: 01665995)

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


3. ACCOUNTING POLICIES - continued
TAXATION
Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. it is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. 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.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset.

RESEARCH AND DEVELOPMENT
Expenditure on research and development is written off in the year in which it is incurred.


FOREIGN CURRENCIES
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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.

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 income statement in administrative expenses.

FACTORING
The company adopts the separate presentation method to account for liabilities due to the factoring company in respect of proceeds received from the factor, as the agreement is with full recourse.

THERMAL ECONOMICS LIMITED (REGISTERED NUMBER: 01665995)

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


4. TURNOVER

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

An analysis of turnover by geographical market is given below:

2023 2022
£ £
United Kingdom 17,137,666 23,739,057
17,137,666 23,739,057

5. EMPLOYEES AND DIRECTORS
2023 2022
£ £
Wages and salaries 784,346 774,769
Social security costs 92,822 97,341
Other pension costs 40,393 36,246
917,561 908,356

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

Directors 2 2
Sales 7 7
Admin 3 3
Technical 4 5
16 17

2023 2022
£ £
Directors' remuneration 79,310 78,000

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

THERMAL ECONOMICS LIMITED (REGISTERED NUMBER: 01665995)

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


6. OPERATING PROFIT

The operating profit is stated after charging:

2023 2022
£ £
Hire of plant and machinery 5,470 5,392
Depreciation - owned assets 10,404 11,855
Auditors' remuneration 7,500 7,500
Auditors' remuneration for non audit work 7,728 5,136

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£ £
Bank interest 7,745 6,630
Interest on tax - 57
7,745 6,687

8. 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 591,398 661,590
Adjustment for earlier years 2,976 (12,968 )
Total current tax 594,374 648,622

Deferred tax (435 ) 276
Tax on profit 593,939 648,898

THERMAL ECONOMICS LIMITED (REGISTERED NUMBER: 01665995)

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


8. 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 2,603,417 3,492,421
Profit multiplied by the standard rate of corporation tax in the UK of
22.518% (2022 - 19%)

586,237

663,560

Effects of:
Expenses not deductible for tax purposes 3,445 3,297
Depreciation in excess of capital allowances 1,720 1,689
Adjustments to tax charge in respect of previous periods 2,976 (12,968 )
Research and development tax credit - (7,474 )
Enhanced capital allowances (4 ) (119 )
Change of deferred tax rate - 637
Movement in deferred tax (435 ) 276
Total tax charge 593,939 648,898

9. DIVIDENDS
2023 2022
£ £
Ordinary shares of £1 each
Interim 2,300,000 2,600,000

THERMAL ECONOMICS LIMITED (REGISTERED NUMBER: 01665995)

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


10. TANGIBLE FIXED ASSETS
Fixtures
Freehold and
property fittings Totals
£ £ £
COST
At 1 November 2022 495,355 113,869 609,224
Additions - 2,385 2,385
At 31 October 2023 495,355 116,254 611,609
DEPRECIATION
At 1 November 2022 90,876 97,474 188,350
Charge for year 6,067 4,337 10,404
At 31 October 2023 96,943 101,811 198,754
NET BOOK VALUE
At 31 October 2023 398,412 14,443 412,855
At 31 October 2022 404,479 16,395 420,874

Included in the cost of freehold property is freehold land of £146,189 (2022 - £146,189) which is not depreciated.

11. STOCKS
2023 2022
£ £
Stocks 356,837 339,533

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£ £
Trade debtors 3,766,028 5,928,471
Other debtors 46,694 108,810
Prepayments and accrued income 50,153 36,372
3,862,875 6,073,653

THERMAL ECONOMICS LIMITED (REGISTERED NUMBER: 01665995)

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


13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£ £
Trade creditors 956,554 1,832,544
Tax 308,808 314,435
Social security and other taxes 21,476 20,749
VAT 323,116 351,168
Other creditors 89,996 1,136,661
Directors' current accounts 1,763 506
Accruals and deferred income 60,737 53,853
1,762,450 3,709,916

14. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£ £
Within one year 37,822 35,274
Between one and five years 60,311 64,041
98,133 99,315

15. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£ £
Advances from factors 90,075 1,136,739

The amount received in respect of factored debts is due to an invoice discounting facility which is secured on trade debtors.

16. PROVISIONS FOR LIABILITIES
2023 2022
£ £
Deferred tax 3,368 3,803

Deferred tax
£
Balance at 1 November 2022 3,803
Movement for the year (435 )
Balance at 31 October 2023 3,368

The provision for deferred taxation relates to accelerated capital allowances.

THERMAL ECONOMICS LIMITED (REGISTERED NUMBER: 01665995)

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


17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £ £
2,000 Ordinary £1 2,000 2,000

18. RESERVES
Retained Share
earnings premium Totals
£ £ £

At 1 November 2022 3,455,834 500 3,456,334
Profit for the year 2,009,478 2,009,478
Dividends (2,300,000 ) (2,300,000 )
At 31 October 2023 3,165,312 500 3,165,812

19. PENSION COMMITMENTS

Pension contributions during the year amounted to £40,393 (2022: £36,246). The amount of unpaid contributions at the year end was £Nil (2022: £Nil).

20. RELATED PARTY DISCLOSURES

During the year, total dividends of £2,300,000 were paid to the directors .

Entities with control, joint control or significant influence over the entity

31.10.23 31.10.22
£ £
Sales 57,353 70,064
Amount due from related party 42,400 105,047
Amount due to related party 1,763 506