VIC UK INSULATION LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
Company registration number 11892284 (England and Wales)
VIC UK INSULATION LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
VIC UK INSULATION LIMITED
BALANCE SHEET
AS AT
31 AUGUST 2023
31 August 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
-
0
99,105
Current assets
Stocks
-
53,414
Debtors
5
11,564
86,786
Cash at bank and in hand
84
2,248
11,648
142,448
Creditors: amounts falling due within one year
6
(560,014)
(754,025)
Net current liabilities
(548,366)
(611,577)
Total assets less current liabilities
(548,366)
(512,472)
Creditors: amounts falling due after more than one year
7
-
0
(50,196)
Net liabilities
(548,366)
(562,668)
Capital and reserves
Called up share capital
200
200
Profit and loss reserves
(548,566)
(562,868)
Total equity
(548,366)
(562,668)

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

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 29 August 2024 and are signed on its behalf by:
Mr R J Ashford
Director
Company registration number 11892284 (England and Wales)
VIC UK INSULATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
- 2 -
1
Accounting policies
Company information

VIC UK Insulation Limited is a private company limited by shares incorporated in England and Wales. The registered office is Merit House, Whitewall Road, Medway City Estate, Rochester, ME2 4WS.

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 the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

The company ceased to trade in October 2022. Due to this, these accounts have not been prepared on the going concern basis. The departure from the going concern basis has not resulted in any changes to the underlying transactions or balances.

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.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

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.

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:

Plant and equipment
20% reducing balance
Fixtures and fittings
20% reducing balance

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 credited or charged to profit or loss.

VIC UK INSULATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 3 -
1.5
Impairment of fixed assets

At each reporting period end date, the company 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.

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.

1.6
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.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
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.

VIC UK INSULATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 4 -
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.

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 company 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.

1.9
Equity instruments

Equity instruments issued by the company 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 company.

1.10
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.

1.11
Retirement benefits

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

VIC UK INSULATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 5 -
1.12
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

1.13

Borrowing costs

All costs are recognised in the profit and loss account in the year in which they are incurred.

2
Judgements and key sources of estimation uncertainty

In the application of the company’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.

Tangible fixed assets

The company has recognised tangible fixed assets with a carrying value of £nil (2022 - £99,105) at the reporting date. Tangible assets are stated at their costs less provision for depreciation and impairment. Any tangible assets carried at revalued amounts are recorded at fair value at the date of revaluation less any subsequent accumulated deprecation and subsequent accumulated impairment losses.

 

In order to determine the fair value of tangible assets the company has used a valuation technique based on comparable market data. Valuations are obtained with sufficient regularity to ensure that the carrying value of revalued assets reflects current market conditions.

 

The company's accounting policy sets out the approach to calculating depreciation for calculating depreciation for tangible assets acquired. These estimates are based upon such factors as the expected use of the acquired asset and market conditions. At subsequent reporting dates the directors consider whether there are any factors such as changes in market conditions that indicate a need to reconsider the estimated used.

 

Where there are indications that the carrying value of tangible assets may be impaired the company undertakes tests to determine the recoverable amounts of assets. These tests require estimates for the ari value of asses less costs to sell and their value in us. Wherever possible the estimate of the fair value of assets is based upon observable market prices less the incremental costs of disposing the asset.

VIC UK INSULATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 6 -
3
Employees

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

2023
2022
Number
Number
Total
3
4
4
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Total
£
£
£
Cost
At 1 September 2022
192,425
358
192,783
Disposals
(192,425)
(358)
(192,783)
At 31 August 2023
-
0
-
0
-
0
Depreciation and impairment
At 1 September 2022
93,511
167
93,678
Depreciation charged in the year
8,242
16
8,258
Eliminated in respect of disposals
(101,753)
(183)
(101,936)
At 31 August 2023
-
0
-
0
-
0
Carrying amount
At 31 August 2023
-
0
-
0
-
0
At 31 August 2022
98,914
191
99,105
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
-
0
53,566
Amounts owed by group undertakings
8,700
30,304
Other debtors
638
-
0
Prepayments and accrued income
2,226
2,916
11,564
86,786
VIC UK INSULATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 7 -
6
Creditors: amounts falling due within one year
2023
2022
£
£
Factoring finance
-
0
25,023
Obligations under finance leases
-
0
34,636
Trade creditors
-
0
3,435
Amounts owed to group undertakings
-
0
113,369
Amounts owed to connected companies
554,872
554,872
Taxation and social security
-
0
16,159
Other creditors
2,742
2,504
Accruals and deferred income
2,400
4,027
560,014
754,025

The factoring finance was secured via a fixed and floating charge held by the lenders over the Company's assets.

7
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
-
0
50,196
8
Operating lease commitments

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2023
2022
£
£
-
0
84,832
9
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

VIC UK INSULATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
9
Related party transactions
(Continued)
- 8 -
Transaction value
Balance owed from/(owed to)
2023
2022
2023
2022
£
£
£
£
Loan owed to a group company written off
36,704
-
-
-
Sales to group companies
67,636
349,852
8,700
30,304
Purchases from a company who is a PSC
-
349,091
(554,872)
(554,872)
Other information

The loans detailed above, are interest free, they are unsecured and have no fixed repayment schedules. The transactions detailed above, with a company who is a shareholder, were carried out at market rate and the outstanding balance is included in amounts payable to connected companies.

10
Parent company

During the period under review, the company was under the ultimate control of its parent company, Merit Group Holdings Limited. Their registered office is Merit House, Units 1-4 Whitewall Road, Medway City Estate, Rochester, Kent, ME2 4WS

11
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Emphasis of matter - financial statements prepared on a basis other than that of a going concern

In forming our opinion on the financial statements, which is not qualified, we have considered the adequacy of the disclosure made in note 1.2, going concern to the financial statements concerning the company's ability to continue as a going concern.

 

As disclosed in note 1.2, the directors have concluded that the company is not a going concern following the decision to cease to trade in October 2022. The financial statements have been prepared on a basis other than going concern.

Senior Statutory Auditor:
Mr Mark Attwood FCCA
Statutory Auditor:
Kreston Reeves LLP
Date of audit report:
29 August 2024
2023-08-312022-09-01false29 August 2024CCH SoftwareCCH Accounts Production 2024.100No description of principal activityThis audit opinion is unqualifiedMr R J AshfordMr P LigtenbergMr S P Weekesfalsefalse118922842022-09-012023-08-31118922842023-08-31118922842022-08-3111892284core:PlantMachinery2023-08-3111892284core:FurnitureFittings2023-08-3111892284core:PlantMachinery2022-08-3111892284core:FurnitureFittings2022-08-3111892284core:CurrentFinancialInstrumentscore:WithinOneYear2023-08-3111892284core:CurrentFinancialInstrumentscore:WithinOneYear2022-08-3111892284core:Non-currentFinancialInstrumentscore:AfterOneYear2023-08-3111892284core:Non-currentFinancialInstrumentscore:AfterOneYear2022-08-3111892284core:ShareCapital2023-08-3111892284core:ShareCapital2022-08-3111892284core:RetainedEarningsAccumulatedLosses2023-08-3111892284core:RetainedEarningsAccumulatedLosses2022-08-3111892284bus:Director12022-09-012023-08-3111892284core:PlantMachinery2022-09-012023-08-3111892284core:FurnitureFittings2022-09-012023-08-31118922842021-09-012022-08-3111892284core:PlantMachinery2022-08-3111892284core:FurnitureFittings2022-08-31118922842022-08-3111892284core:CurrentFinancialInstruments2023-08-3111892284core:CurrentFinancialInstruments2022-08-3111892284core:Non-currentFinancialInstruments2023-08-3111892284core:Non-currentFinancialInstruments2022-08-3111892284bus:PrivateLimitedCompanyLtd2022-09-012023-08-3111892284bus:SmallCompaniesRegimeForAccounts2022-09-012023-08-3111892284bus:FRS1022022-09-012023-08-3111892284bus:Audited2022-09-012023-08-3111892284bus:Director22022-09-012023-08-3111892284bus:CompanySecretary12022-09-012023-08-3111892284bus:FullAccounts2022-09-012023-08-31xbrli:purexbrli:sharesiso4217:GBP