Company registration number 02122995 (England and Wales)
INSULTEC LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
INSULTEC LIMITED
COMPANY INFORMATION
Directors
D Punj
J A Punj
Secretary
D Punj
Company number
02122995
Registered office
7 Britannia Court
The Green
West Drayton
Middlesex
UB7 7PN
Accountants
M J Bushell Ltd
8 High Street
Brentwood
Essex
CM14 4AB
INSULTEC LIMITED
CONTENTS
Page
Directors' report
1
Accountants' report
2
Profit and loss account
3
Group statement of comprehensive income
4
Group balance sheet
5 - 6
Company balance sheet
7
Group statement of changes in equity
8
Company statement of changes in equity
9
Notes to the financial statements
10 - 22
INSULTEC LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company and group continued to be that of Thermal Insulation contractors.

Results and dividends

The results for the year are set out on page 3.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

D Punj
J A Punj
Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
D Punj
Director
5 August 2024
INSULTEC LIMITED
CHARTERED ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF INSULTEC LIMITED FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Insultec Limited for the year ended 31 December 2023 set out on pages 3 to 22 from the accounting records and from information and explanations you have given us.

 

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com/regulation.

This report is made solely to the board of directors of Insultec Limited, as a body, in accordance with the terms of our engagement letter dated 25 February 2020. Our work has been undertaken solely to prepare for your approval the financial statements of Insultec Limited and state those matters that we have agreed to state to the board of directors of Insultec Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Insultec Limited and its board of directors as a body, for our work or for this report.

It is your duty to ensure that Insultec Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of Insultec Limited. You consider that Insultec Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Insultec Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

M J Bushell Ltd
5 August 2024
Chartered Accountants
8 High Street
Brentwood
Essex
CM14 4AB
INSULTEC LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
2023
2022
Notes
£
£
Turnover
4,622,090
5,243,717
Cost of sales
(3,653,520)
(4,205,089)
Gross profit
968,570
1,038,628
Administrative expenses
(754,847)
(501,386)
Other operating income
222,935
262,365
Operating profit
436,658
799,607
Interest receivable and similar income
4
5,241
24,426
Interest payable and similar expenses
(126)
-
0
Profit before taxation
441,773
824,033
Tax on profit
(13,078)
(155,179)
Profit for the financial year
428,695
668,854
Profit for the financial year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

INSULTEC LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
2023
2022
£
£
Profit for the year
428,695
668,854
Other comprehensive income
Actuarial gain/(loss) on defined benefit pension schemes
-
0
(32,899)
Currency translation gain taken to retained earnings
34,644
231,862
Other comprehensive income for the year
34,644
198,963
Total comprehensive income for the year
463,339
867,817
Total comprehensive income for the year is all attributable to the owners of the parent company.
INSULTEC LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 5 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
-
-
Tangible assets
5
346,304
365,387
Investments
6
2,418,404
1,631,124
2,764,708
1,996,511
Current assets
Stocks
-
14,863
Debtors
8
932,267
2,440,689
Cash at bank and in hand
1,199,089
1,299,750
2,131,356
3,755,302
Creditors: amounts falling due within one year
9
(759,486)
(1,772,239)
Net current assets
1,371,870
1,983,063
Total assets less current liabilities
4,136,578
3,979,574
Creditors: amounts falling due after more than one year
10
-
(170,316)
Provisions for liabilities
11
7,683
41,980
Net assets excluding pension liability
4,144,261
3,851,238
Defined benefit pension liability
12
-
(170,316)
Net assets
4,144,261
3,680,922
Capital and reserves
Called up share capital
49,955
49,955
Share premium account
22,800
22,800
Capital redemption reserve
45
45
Profit and loss reserves
4,071,461
3,608,122
Total equity
4,144,261
3,680,922

For the financial year ended 31 December 2023 the group was entitled to exemption from audit under section 477 of the Companies Act 2006.

Directors' responsibilities under the Companies Act 2006:

 

INSULTEC LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 6 -

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

The financial statements were approved by the board of directors and authorised for issue on 5 August 2024 and are signed on its behalf by:
05 August 2024
D Punj
Director
Company registration number 02122995 (England and Wales)
INSULTEC LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 7 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
5
333,090
342,517
Investments
6
46,280
46,280
379,370
388,797
Current assets
Stocks
-
14,863
Debtors
8
717,704
2,090,329
Cash at bank and in hand
1,161,706
451,238
1,879,410
2,556,430
Creditors: amounts falling due within one year
9
(681,526)
(1,636,645)
Net current assets
1,197,884
919,785
Net assets
1,577,254
1,308,582
Capital and reserves
Called up share capital
49,955
49,955
Share premium account
22,800
22,800
Capital redemption reserve
45
45
Profit and loss reserves
1,504,454
1,235,782
Total equity
1,577,254
1,308,582

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £268,672 (2022 - £474,171 profit).

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 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 5 August 2024 and are signed on its behalf by:
05 August 2024
D Punj
Director
Company registration number 02122995 (England and Wales)
INSULTEC LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 January 2022
49,955
22,800
45
2,740,305
2,813,105
Year ended 31 December 2022:
Profit for the year
-
-
-
668,854
668,854
Other comprehensive income:
Actuarial gains on defined benefit plans
-
-
-
(32,899)
(32,899)
Currency translation differences
-
-
-
231,862
231,862
Total comprehensive income
-
-
-
867,817
867,817
Balance at 31 December 2022
49,955
22,800
45
3,608,122
3,680,922
Year ended 31 December 2023:
Profit for the year
-
-
-
428,695
428,695
Other comprehensive income:
Currency translation differences
-
-
-
34,644
34,644
Total comprehensive income
-
-
-
463,339
463,339
Balance at 31 December 2023
49,955
22,800
45
4,071,461
4,144,261
INSULTEC LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 January 2022
49,955
22,800
45
761,611
834,411
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
474,171
474,171
Balance at 31 December 2022
49,955
22,800
45
1,235,782
1,308,582
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
268,672
268,672
Balance at 31 December 2023
49,955
22,800
45
1,504,454
1,577,254
INSULTEC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
1
Accounting policies
Company information

Insultec Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 7 Britannia Court, The Green, West Drayton, Middlesex, UB7 7PN.

 

The group consists of Insultec Limited and all of its subsidiaries.

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, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

 

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Insultec Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.3
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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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 estimated reliably. 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 estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

INSULTEC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 11 -

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:

Land and buildings Freehold
3 to 31.5 years straight line
Land and buildings Leasehold
50 years straight line
Fixtures, fittings & equipment
20-25% straight line
Computer equipment
20-25% straight line
Motor vehicles
20-25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.5
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.6
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

INSULTEC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.7
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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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

1.8
Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

1.9
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

INSULTEC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

INSULTEC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.11
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.12
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

INSULTEC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. 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 if, and only if, there is 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.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

 

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.

 

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

1.15
Leases
INSULTEC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.16
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 are included in the profit and loss account for the period.

 

The assets and liabilities of overseas subsidiaries denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Profits and losses are translated at average exchange rates for the relevant accounting periods. Exchange differences arising on consolidation are taken directly to the Profit and Loss Account Reserve and are recognised in the Statement of Comprehensive Income.

 

2
Judgements and key sources of estimation uncertainty

In the application of the group’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 in the 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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Stage of completion of construction contracts

The stage of completion of construction contracts needs to be assessed at the balance sheet date in order to determine the appropriate value of turnover and attributable profit / loss to be recognised in the profit and loss account in the reporting period. This requires judgements to be made in respect of forecasting future costs that will need to be incurred to complete the contracts.

3
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Total
5
5
5
5
INSULTEC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
4
Interest receivable and similar income
2023
2022
£
£
Other interest receivable and similar income
5,241
24,426
5
Tangible fixed assets
Group
Land and buildings Freehold
Land and buildings Leasehold
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
482,470
471,348
207,158
777
80,922
1,242,675
Additions
9,817
-
0
-
0
-
0
-
0
9,817
Exchange adjustments
(23,906)
-
0
(10,123)
(58)
(4,010)
(38,097)
At 31 December 2023
468,381
471,348
197,035
719
76,912
1,214,395
Depreciation and impairment
At 1 January 2023
460,131
128,831
207,158
246
80,922
877,288
Depreciation charged in the year
18,326
9,427
-
0
-
0
-
0
27,753
Exchange adjustments
(22,799)
-
0
(10,123)
(18)
(4,010)
(36,950)
At 31 December 2023
455,658
138,258
197,035
228
76,912
868,091
Carrying amount
At 31 December 2023
12,723
333,090
-
0
491
-
0
346,304
At 31 December 2022
22,339
342,517
-
0
531
-
0
365,387
Company
Land and buildings Leasehold
Fixtures, fittings & equipment
Total
£
£
£
Cost
At 1 January 2023 and 31 December 2023
471,348
2,855
474,203
Depreciation and impairment
At 1 January 2023
128,831
2,855
131,686
Depreciation charged in the year
9,427
-
0
9,427
At 31 December 2023
138,258
2,855
141,113
Carrying amount
At 31 December 2023
333,090
-
0
333,090
At 31 December 2022
342,517
-
0
342,517
INSULTEC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
6
Fixed asset investments
Group
Company
2023
2022
2023
2022
£
£
£
£
Shares in group undertakings and participating interests
-
-
46,280
46,280
Other investments other than loans
2,418,404
1,631,124
-
-
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 January 2023
1,631,124
Additions
2,812,485
Valuation changes
(80,843)
Disposals
(1,944,362)
At 31 December 2023
2,418,404
Carrying amount
At 31 December 2023
2,418,404
At 31 December 2022
1,631,124
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
46,280
Carrying amount
At 31 December 2023
46,280
At 31 December 2022
46,280
7
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Insultec China
China
Ordianry
-
100.00
Insultec Hong Kong
Hong Kong
Ordinary
100.00
-
Insultec Vietnam
Vietnam
Ordinary
100.00
-
Thermal Insulation Services Inc
USA
Ordinary
100.00
-
INSULTEC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
8
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
678,918
2,036,397
672,277
2,029,222
Other debtors
245,138
221,946
45,427
61,107
924,056
2,258,343
717,704
2,090,329
Amounts falling due after more than one year:
Trade debtors
8,211
182,346
-
0
-
0
Total debtors
932,267
2,440,689
717,704
2,090,329
9
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade creditors
286,789
1,540,101
243,684
1,492,457
Corporation tax payable
104,619
188,808
85,394
113,479
Other taxation and social security
19,373
28,721
15,310
16,709
Other creditors
348,705
14,609
337,138
14,000
759,486
1,772,239
681,526
1,636,645
10
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Trade creditors
-
0
-
0
-
0
-
0
Other creditors
-
0
170,316
-
0
-
0
11
Provisions for liabilities
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Deferred tax liabilities
(7,683)
(41,980)
-
0
-
0
INSULTEC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
12
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
8,495
9,595

The holding company operates a defined contribution pension scheme. In prior years this extended to the

USA subsidiary. The assets of the scheme are held separately from those of the group in independently

administered funds.

Defined benefit schemes

The USA subsidiary operates a defined benefit scheme. The plan covers all employees who have attained the age of 21 and have completed one year of service. The accrued benefit is 2.25% of average monthly earnings for each year of benefit accrual up to 30 years offset by the Unit Offset Percentage of final average monthly earnings for each year of benefit accrual up to 30 years. Normal retirement age is 65 with five years of participation. The plan was frozen as of 30 April 2016.

 

The company funding policy is to contribute annually between the minimum and maximum limits calculated under the US Pension Protection Act regulations. The scheme is administered by Hessel & Associates, LLC of Illinois USA.

 

This scheme was terminated and closed on 31 August 2023.

2023
2022
Key assumptions
%
%
Discount rate
5
5
Expected rate of increase of pensions in payment
2
2
Expected rate of salary increases
2
2
Mortality assumptions
2023
2022

Assumed life expectations on retirement at age 65:

Years
Years

The amounts included in the balance sheet arising from obligations in respect of defined benefit plans are as follows:

2023
2022
Group
£
£
Present value of defined benefit obligations
-
1,676,411
Fair value of plan assets
-
(1,506,095)
Deficit in scheme
-
170,316
The company had no post employment benefits at 31 December 2023 or 1 January 2023.
INSULTEC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Retirement benefit schemes
(Continued)
- 21 -
Group
2023
2022
Amounts recognised in the profit and loss account
£
£
Costs/(income):
Net interest on net defined benefit liability/(asset)
-
81,191
Group
2023
2022
Amounts recognised in other comprehensive income
£
£
Costs/(income):
Actual return on scheme assets
(19,438)
(49,266)
Less: calculated interest element
-
-
Return on scheme assets excluding interest income
(19,438)
(49,266)
Actuarial changes related to obligations
-
1,506
IFRS ONLY Exchange differences
(8,440)
15,817
Total costs/(income)
(27,878)
(31,943)
Group
2023
Movements in the present value of defined benefit obligations
Liabilities at 1 January 2023
1,676,411
Benefits paid
(1,444,268)
Exchange differences
(83,067)
Other
(149,076)
At 31 December 2023
-

The defined benefit obligations arise from plans which are wholly or partly funded.

Group
2023
Movements in the fair value of plan assets
£
Fair value of assets at 1 January 2023
1,506,095
Return on plan assets (excluding amounts included in net interest)
19,438
Benefits paid
(1,444,268)
Exchange differences
(74,627)
Other
(6,638)
At 31 December 2023
-
INSULTEC LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Retirement benefit schemes
(Continued)
- 22 -
Group
2023
2022
Fair value of plan assets
£
£
Equity instruments
-
1,506,095
13
Financial commitments, guarantees and contingent liabilities

On 9 December 2014, the company entered into a legal charge with HSBC Bank PLC. This contains a legal mortgage over the leasehold property - Unit 7, Britannia Court.

 

On 17 November 2014, the company entered into a debenture with HSBC Bank PLC. This contains a fixed and floating charge over all assets held by the company.

14
Related party transactions
Transactions with related parties

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Group
Other related parties
89,544
10,975
Company
Other related parties
89,544
10,975

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
Other related parties
92,293
11,322
Company
Other related parties
92,293
11,322
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