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REGISTERED NUMBER: 12432518 (England and Wales)















Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31st December 2023

for

CLIMATEC GROUP HOLDINGS
LIMITED

CLIMATEC GROUP HOLDINGS
LIMITED (REGISTERED NUMBER: 12432518)

Contents of the Consolidated Financial Statements
for the year ended 31st December 2023










Page

Company Information 1

Group Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Consolidated Profit and Loss Account 10

Consolidated Other Comprehensive Income 11

Consolidated Balance Sheet 12

Company Balance Sheet 13

Consolidated Statement of Changes in Equity 14

Company Statement of Changes in Equity 15

Consolidated Cash Flow Statement 16

Notes to the Consolidated Cash Flow Statement 17

Notes to the Consolidated Financial Statements 19


CLIMATEC GROUP HOLDINGS
LIMITED

Company Information
for the year ended 31st December 2023







DIRECTORS: Mr J P Bates
Mr S P Muskett





REGISTERED OFFICE: Monometer House
Rectory Grove
Leigh-on-Sea
Essex
SS9 2HL





REGISTERED NUMBER: 12432518 (England and Wales)





AUDITORS: Barrons Limited
Chartered Accountants
& Statutory Auditors
Monometer House
Rectory Grove
Leigh on Sea
Essex
SS9 2HN

CLIMATEC GROUP HOLDINGS
LIMITED (REGISTERED NUMBER: 12432518)

Group Strategic Report
for the year ended 31st December 2023


The directors present their strategic report of the company and the group for the year ended 31st December 2023.

Business Review
In terms of turnover, there was very little difference between the figures reported in last year's accounts and those here, with a small adverse difference of £41k on a turnover in excess of £21 million.

Profitability after tax however did show a decline, down by £140k on the 2023 figures. The catalyst of this being a marked drop in both turnover and profitability in our aluminium business, Alu-Tec (UK) Ltd.

This can be attributed, we believe, to two main factors. Firstly, the cost of aluminium compared to UPVC, which in the current economic climate, does make aluminium less affordable than perhaps it was previously. Secondly, there were issues with the U values that need to be attained which have proved problematic, making aluminium a little less suitable certainly for project work, which makes up a fair proportion of our aluminium business.

However, despite the aforementioned issues as a group, taking everything into consideration, we do not think that we can be too unhappy with the results reported here. Of course there is always room for improvement but in the scheme of things, we like to think that we have continued to perform relatively well in the circumstances.

Principle Risks & Uncertainties
The U value problem, as mentioned previously, has now been addressed so this hopefully will prove to be a positive move forward, although we do think that it will take some time to get back to the 2022 levels of turnover and profitability that we saw in our aluminium business.

The hiring and retention of staff throughout the group, especially shop floor fabricators, can prove to be a problem due to the competition in the local workforce, which is very buoyant at present giving potential candidates a variety of job opportunities that are open to them.

We do not think you can ever dismiss the possibility of another economic crisis or the fallout from world events, which has no doubt impacted on our sector with a number of window companies going out of business over the last 12 months so this is something we certainly need to be mindful of.

Lead time of certain products in both UPVC and aluminium do still from time to time cause us problems, although nowhere near as bad as it was just after Covid. However, this does need to be kept on top of, especially on products sourced from outside the UK.

Finally, there is an uncertainty of possible changes to government taxes and regulations and the adverse impact that these could have on both our cashflow and our customer and supplier base.

Key Performance Indicators
2023 saw a decrease in turnover of just over £41k or a fall of 0.19% whilst profitability was down on the 2022 figure by approximately £140k, which equates to just over 13%.

There was an increase in our overall direct labour costs, up by £329k on the 2022 figure which now reads at 21.18% of turnover, compared to the 19.59% reported last year. Our stock usage did however fare a little better, running at 52.74% of the turnover as opposed to 53.26% last year.

Other Information and Explanations

Future Outlook
The Climatec Group are, we believe, in a strong position moving forward with the diversity of products that we can offer and the continued level of orders and contracts that we have in place.


CLIMATEC GROUP HOLDINGS
LIMITED (REGISTERED NUMBER: 12432518)

Group Strategic Report
for the year ended 31st December 2023

We have, and are still investing in, new plant and machinery and have additional space available having leased a new factory unit to take on an additional workload should the need arise, with the ultimate goal to expand the business further.

There are obviously a few concerns, as previously mentioned, and whether the current levels of turnover and profit can be sustained, remains to be seen. However, with continued regular monitoring of our performance, we see no reason as to why we cannot have another profitable year's trading and post a decent set of figures in 2024.

ON BEHALF OF THE BOARD:





Mr S P Muskett - Director


6th August 2024

CLIMATEC GROUP HOLDINGS
LIMITED (REGISTERED NUMBER: 12432518)

Report of the Directors
for the year ended 31st December 2023


The directors present their report with the financial statements of the company and the group for the year ended 31st December 2023.

DIVIDENDS
The total distribution of dividends for the year ended 31st December 2023 will be £ 168,000 .

DIRECTORS
The directors shown below have held office during the whole of the period from 1st January 2023 to the date of this report.

Mr J P Bates
Mr S P Muskett

Other changes in directors holding office are as follows:

Mr S P Barker and Mr D G Williams ceased to be directors after 31st December 2023 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Annual Report 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). 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 judgments and accounting estimates that are reasonable and prudent
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements
- 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.

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 group'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 group's auditors are aware of that information.

CLIMATEC GROUP HOLDINGS
LIMITED (REGISTERED NUMBER: 12432518)

Report of the Directors
for the year ended 31st December 2023


AUDITORS
The auditors, Barrons Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr S P Muskett - Director


6th August 2024

Report of the Independent Auditors to the Members of
Climatec Group Holdings
Limited


Opinion
We have audited the financial statements of Climatec Group Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st December 2023 which comprise the Consolidated Profit and Loss Account, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 31st December 2023 and of the group's 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 group 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 group's and the parent 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 Group 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
Climatec Group Holdings
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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company 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 four, 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
Climatec Group Holdings
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:

Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

The following laws and regulations were identified as being of significance to the entity:

- Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation and distributable profits legislation.

- Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include operating licence, environmental regulations and health and safety legislation.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of; inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence: testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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.

Report of the Independent Auditors to the Members of
Climatec Group Holdings
Limited


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.




Mark Radford FCCA (Senior Statutory Auditor)
for and on behalf of Barrons Limited
Chartered Accountants
& Statutory Auditors
Monometer House
Rectory Grove
Leigh on Sea
Essex
SS9 2HN

6th August 2024

CLIMATEC GROUP HOLDINGS
LIMITED (REGISTERED NUMBER: 12432518)

Consolidated Profit and Loss Account
for the year ended 31st December 2023

2023 2022
Notes £    £    £    £   

TURNOVER 21,220,885 21,261,967

Cost of sales 15,776,678 15,554,695
GROSS PROFIT 5,444,207 5,707,272

Distribution costs 898,286 847,575
Administrative expenses 3,336,407 3,462,707
4,234,693 4,310,282
1,209,514 1,396,990

Other operating income 12,000 -
OPERATING PROFIT 4 1,221,514 1,396,990

Interest receivable and similar income 349 4
1,221,863 1,396,994

Interest payable and similar expenses 5 27,390 27,344
PROFIT BEFORE TAXATION 1,194,473 1,369,650

Tax on profit 6 284,904 319,586
PROFIT FOR THE FINANCIAL YEAR 909,569 1,050,064
Profit attributable to:
Owners of the parent 909,569 1,050,064

CLIMATEC GROUP HOLDINGS
LIMITED (REGISTERED NUMBER: 12432518)

Consolidated Other Comprehensive Income
for the year ended 31st December 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 909,569 1,050,064


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

909,569
Prior year adjustment 79,548
TOTAL COMPREHENSIVE INCOME
SINCE LAST ANNUAL REPORT

1,129,612

Total comprehensive income attributable to:
Owners of the parent 909,569 1,129,612

CLIMATEC GROUP HOLDINGS
LIMITED (REGISTERED NUMBER: 12432518)

Consolidated Balance Sheet
31st December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 259,321 301,373
Tangible assets 10 816,135 820,550
Investments 11 - -
1,075,456 1,121,923

CURRENT ASSETS
Stocks 12 1,699,304 1,696,958
Debtors 13 2,703,874 2,961,344
Cash at bank and in hand 934,023 537,070
5,337,201 5,195,372
CREDITORS
Amounts falling due within one year 14 3,088,914 3,711,354
NET CURRENT ASSETS 2,248,287 1,484,018
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,323,743

2,605,941

CREDITORS
Amounts falling due after more than one
year

15

(222,012

)

(240,527

)

PROVISIONS FOR LIABILITIES 19 (175,374 ) (180,626 )
NET ASSETS 2,926,357 2,184,788

CAPITAL AND RESERVES
Called up share capital 20 1,000 1,000
Share premium 21 99,000 99,000
Retained earnings 21 2,826,357 2,084,788
SHAREHOLDERS' FUNDS 2,926,357 2,184,788

The financial statements were approved by the Board of Directors and authorised for issue on 6th August 2024 and were signed on its behalf by:





Mr S P Muskett - Director


CLIMATEC GROUP HOLDINGS
LIMITED (REGISTERED NUMBER: 12432518)

Company Balance Sheet
31st December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 - -
Tangible assets 10 - -
Investments 11 3,000,000 3,000,000
3,000,000 3,000,000

CREDITORS
Amounts falling due within one year 14 2,900,000 2,900,000
NET CURRENT LIABILITIES (2,900,000 ) (2,900,000 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

100,000

100,000

CAPITAL AND RESERVES
Called up share capital 20 1,000 1,000
Share premium 21 99,000 99,000
SHAREHOLDERS' FUNDS 100,000 100,000

Company's profit for the financial year 168,000 90,000

The financial statements were approved by the Board of Directors and authorised for issue on 6th August 2024 and were signed on its behalf by:





Mr S P Muskett - Director


CLIMATEC GROUP HOLDINGS
LIMITED (REGISTERED NUMBER: 12432518)

Consolidated Statement of Changes in Equity
for the year ended 31st December 2023

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   
Balance at 1st January 2022 1,000 1,045,176 99,000 1,145,176
Prior year adjustment - 79,548 - 79,548
As restated 1,000 1,124,724 99,000 1,224,724

Changes in equity
Dividends - (90,000 ) - (90,000 )
Total comprehensive income - 1,050,064 - 1,050,064
Balance at 31st December 2022 1,000 2,084,788 99,000 2,184,788

Changes in equity
Dividends - (168,000 ) - (168,000 )
Total comprehensive income - 909,569 - 909,569
Balance at 31st December 2023 1,000 2,826,357 99,000 2,926,357

CLIMATEC GROUP HOLDINGS
LIMITED (REGISTERED NUMBER: 12432518)

Company Statement of Changes in Equity
for the year ended 31st December 2023

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   
Balance at 1st January 2022 1,000 - 99,000 100,000

Changes in equity
Dividends - (90,000 ) - (90,000 )
Total comprehensive income - 90,000 - 90,000
Balance at 31st December 2022 1,000 - 99,000 100,000

Changes in equity
Dividends - (168,000 ) - (168,000 )
Total comprehensive income - 168,000 - 168,000
Balance at 31st December 2023 1,000 - 99,000 100,000

CLIMATEC GROUP HOLDINGS
LIMITED (REGISTERED NUMBER: 12432518)

Consolidated Cash Flow Statement
for the year ended 31st December 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,032,083 1,279,886
Interest paid (13,161 ) (16,004 )
Interest element of hire purchase payments
paid

(14,229

)

(11,340

)
Tax paid (173,896 ) (169,235 )
Net cash from operating activities 830,797 1,083,307

Cash flows from investing activities
Purchase of tangible fixed assets (148,828 ) (86,539 )
Sale of tangible fixed assets 21,500 56,346
Sale of fixed asset investments - 645
Interest received 349 4
Net cash from investing activities (126,979 ) (29,544 )

Cash flows from financing activities
Loan repayments in year (55,556 ) (55,555 )
Capital repayments in year (49,138 ) (96,915 )
Amount withdrawn by directors (34,171 ) (572,246 )
Equity dividends paid (168,000 ) (90,000 )
Net cash from financing activities (306,865 ) (814,716 )

Increase in cash and cash equivalents 396,953 239,047
Cash and cash equivalents at beginning of
year

2

537,070

298,023

Cash and cash equivalents at end of year 2 934,023 537,070

CLIMATEC GROUP HOLDINGS
LIMITED (REGISTERED NUMBER: 12432518)

Notes to the Consolidated Cash Flow Statement
for the year ended 31st December 2023


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
Profit before taxation 1,194,473 1,369,650
Depreciation charges 173,795 191,302
Loss on disposal of fixed assets - 201,315
Finance costs 27,390 27,344
Finance income (349 ) (4 )
1,395,309 1,789,607
Increase in stocks (2,346 ) (83,936 )
Decrease/(increase) in trade and other debtors 257,470 (57,268 )
Decrease in trade and other creditors (618,350 ) (368,517 )
Cash generated from operations 1,032,083 1,279,886

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31st December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 934,023 537,070
Year ended 31st December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 537,070 298,023


CLIMATEC GROUP HOLDINGS
LIMITED (REGISTERED NUMBER: 12432518)

Notes to the Consolidated Cash Flow Statement
for the year ended 31st December 2023


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank and in hand 537,070 396,953 934,023
537,070 396,953 934,023
Debt
Finance leases (316,386 ) 49,138 (267,248 )
Debts falling due within 1 year (55,556 ) - (55,556 )
Debts falling due after 1 year (101,852 ) 55,556 (46,296 )
(473,794 ) 104,694 (369,100 )
Total 63,276 501,647 564,923

CLIMATEC GROUP HOLDINGS
LIMITED (REGISTERED NUMBER: 12432518)

Notes to the Consolidated Financial Statements
for the year ended 31st December 2023


1. STATUTORY INFORMATION

Climatec Group Holdings 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 General Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover
The turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before the revenue is recognised:

Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
- the Company has transferred the significant risks and rewards of ownership to the buyer;
- the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
- the amount of revenue can be measured reliably;
- it is probable that the Company will receive the consideration due under the transaction; and
- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
- the amount of revenue can be measured reliably;
- it is probable that the Company will receive the consideration due under the contract;
- the stage of completion of the contract at the end of the reporting period can be measured reliably; and
- the costs incurred and the costs to complete the contract can be measured reliably.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of businesses in 2020 is being amoritised over 10 years.

CLIMATEC GROUP HOLDINGS
LIMITED (REGISTERED NUMBER: 12432518)

Notes to the Consolidated Financial Statements - continued
for the year ended 31st December 2023


2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Tangible fixed assets are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less residual value over their estimated useful lives, using either a straight line or reducing balance method, as indicated below.

Depreciation is provided on the following basis:

Leasehold land and buildings- 10% Straight Line
Plant and machinery- 15% Reducing Balance
Fixtures and Fittings- 10% Reducing Balance
Computers- 33% Straight Line
Motor Vehicles- 25% Reducing Balance

The asset's residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Stocks
Stocks are stated at the lower of cost and estimated selling price less cost to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.

At each balance sheet date, stocks are assessed for impairment. If Stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit and loss.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

CLIMATEC GROUP HOLDINGS
LIMITED (REGISTERED NUMBER: 12432518)

Notes to the Consolidated Financial Statements - continued
for the year ended 31st December 2023


2. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

3. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 6,417,527 6,004,672

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

Directors 4 4
Other staff 170 165
174 169

The average number of employees by undertakings that were proportionately consolidated during the year was 174 (2022 - 169 ) .

2023 2022
£    £   
Directors' remuneration 89,788 74,513

4. OPERATING PROFIT

The operating profit is stated after charging:

2023 2022
£    £   
Depreciation - owned assets 131,743 149,895
Loss on disposal of fixed assets - 201,315
Goodwill amortisation 42,052 42,052
Auditors' remuneration 33,120 19,900

5. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest 9,720 10,104
Interest on overdue taxation 3,441 5,900
Hire purchase 14,229 11,340
27,390 27,344

CLIMATEC GROUP HOLDINGS
LIMITED (REGISTERED NUMBER: 12432518)

Notes to the Consolidated Financial Statements - continued
for the year ended 31st December 2023


6. 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 290,156 276,691

Deferred tax (5,252 ) 42,895
Tax on profit 284,904 319,586

7. INDIVIDUAL PROFIT AND LOSS ACCOUNT

As permitted by Section 408 of the Companies Act 2006, the Profit and Loss Account of the parent company is not presented as part of these financial statements.


8. DIVIDENDS
2023 2022
£    £   
ORDINARY A shares of 1p each
Interim 42,000 22,500
ORDINARY B shares of 1p each
Interim 126,000 67,500
168,000 90,000

9. INTANGIBLE FIXED ASSETS

Group
Goodwill
£   
COST
At 1st January 2023
and 31st December 2023 420,520
AMORTISATION
At 1st January 2023 119,147
Amortisation for year 42,052
At 31st December 2023 161,199
NET BOOK VALUE
At 31st December 2023 259,321
At 31st December 2022 301,373

CLIMATEC GROUP HOLDINGS
LIMITED (REGISTERED NUMBER: 12432518)

Notes to the Consolidated Financial Statements - continued
for the year ended 31st December 2023


10. TANGIBLE FIXED ASSETS

Group
Improvements
Long to Plant and
leasehold property machinery
£    £    £   
COST
At 1st January 2023 193,257 68,121 1,223,478
Additions 22,445 16,922 73,257
Disposals (115,393 ) - -
Impairments - - (21,500 )
At 31st December 2023 100,309 85,043 1,275,235
DEPRECIATION
At 1st January 2023 154,697 29,262 574,747
Charge for year 8,041 7,981 96,506
Eliminated on disposal (115,393 ) - -
At 31st December 2023 47,345 37,243 671,253
NET BOOK VALUE
At 31st December 2023 52,964 47,800 603,982
At 31st December 2022 38,560 38,859 648,731

Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
COST
At 1st January 2023 95,924 16,757 174,767 1,772,304
Additions 12,260 8,275 15,669 148,828
Disposals - - (146,369 ) (261,762 )
Impairments - - - (21,500 )
At 31st December 2023 108,184 25,032 44,067 1,637,870
DEPRECIATION
At 1st January 2023 24,929 7,542 160,577 951,754
Charge for year 6,756 2,399 10,060 131,743
Eliminated on disposal - - (146,369 ) (261,762 )
At 31st December 2023 31,685 9,941 24,268 821,735
NET BOOK VALUE
At 31st December 2023 76,499 15,091 19,799 816,135
At 31st December 2022 70,995 9,215 14,190 820,550

CLIMATEC GROUP HOLDINGS
LIMITED (REGISTERED NUMBER: 12432518)

Notes to the Consolidated Financial Statements - continued
for the year ended 31st December 2023


10. TANGIBLE FIXED ASSETS - continued

Group

Included above are assets held under hire purchase contracts and finance leases with a total net book value of £336,572 (2022: £413,305) and a total depreciation charge in the year of £55,233 (2022: £44,005).

11. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1st January 2023
and 31st December 2023 3,000,000
NET BOOK VALUE
At 31st December 2023 3,000,000
At 31st December 2022 3,000,000

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Alu-Tec (UK) Limited
Registered office: United Kingdom
Nature of business: Manufacture of Doors & Windows
%
Class of shares: holding
Ordinary 100.00
2023 2022
£    £   
Aggregate capital and reserves 2,335,171 2,060,676
Profit for the year 274,495 483,145

Climatec Windows Limited
Registered office: United Kingdom
Nature of business: Manufacture of Doors & Windows
%
Class of shares: holding
Ordinary 100.00
2023 2022
£    £   
Aggregate capital and reserves 3,034,308 2,563,477
Profit for the year 638,831 582,359

CLIMATEC GROUP HOLDINGS
LIMITED (REGISTERED NUMBER: 12432518)

Notes to the Consolidated Financial Statements - continued
for the year ended 31st December 2023


11. FIXED ASSET INVESTMENTS - continued

Climatec Home Improvements Limited
Registered office: United Kingdom
Nature of business: Supply and fitting of Doors & Windows
%
Class of shares: holding
Ordinary 100.00
2023 2022
£    £   
Aggregate capital and reserves 197,557 159,263
Profit for the year 38,294 26,613


12. STOCKS

Group
2023 2022
£    £   
Raw materials 1,699,304 1,696,958

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group
2023 2022
£    £   
Trade debtors 2,376,054 2,655,492
Other debtors 42,875 13,736
Prepayments and accrued income 284,945 292,116
2,703,874 2,961,344

CLIMATEC GROUP HOLDINGS
LIMITED (REGISTERED NUMBER: 12432518)

Notes to the Consolidated Financial Statements - continued
for the year ended 31st December 2023


14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Bank loans and overdrafts (see note 16) 55,556 55,556 - -
Hire purchase contracts (see note 17) 91,532 177,711 - -
Trade creditors 1,788,271 1,986,338 - -
Amounts owed to group undertakings - - 2,900,000 2,806,224
Tax 568,810 452,550 - -
Social security and other taxes 136,798 152,129 - -
VAT 226,627 277,167 - -
Other creditors 78,601 187,063 - 60,000
Invoice finance - 334,862 - -
Directors' current accounts - 34,171 - 33,776
Accruals and deferred income 142,719 53,807 - -
3,088,914 3,711,354 2,900,000 2,900,000

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group
2023 2022
£    £   
Bank loans (see note 16) 46,296 101,852
Hire purchase contracts (see note 17) 175,716 138,675
222,012 240,527

16. LOANS

An analysis of the maturity of loans is given below:

Group
2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 55,556 55,556
Amounts falling due between one and two years:
Bank loans - 1-2 years 46,296 55,556
Amounts falling due between two and five years:
Bank loans - 2-5 years - 46,296

CLIMATEC GROUP HOLDINGS
LIMITED (REGISTERED NUMBER: 12432518)

Notes to the Consolidated Financial Statements - continued
for the year ended 31st December 2023


17. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 91,532 177,711
Between one and five years 175,716 138,675
267,248 316,386

Group
Non-cancellable operating leases
2023 2022
£    £   
Within one year 219,067 195,567
Between one and five years 543,307 573,294
In more than five years 137,409 144,322
899,783 913,183

18. SECURED DEBTS

The following secured debts are included within creditors:

Group
2023 2022
£    £   
Hire purchase contracts 267,248 -

Hire purchase contracts are secured against the assets to which they relate.

Invoice discounting and overdraft facilities are secured by way of both fixed and floating charges over the assets of the company.

There is a cross guarantee in place between Climatec Group Holdings Limited and it's subsidiary undertakings on all borrowings outstanding within the group at the balance sheet date.

The long term loan obtained in 2020 is supported by the Coronavirus Business Interruption Loan Scheme (CBILS) provided by the government.

CLIMATEC GROUP HOLDINGS
LIMITED (REGISTERED NUMBER: 12432518)

Notes to the Consolidated Financial Statements - continued
for the year ended 31st December 2023


19. PROVISIONS FOR LIABILITIES

Group
2023 2022
£    £   
Deferred tax 175,374 180,626

Group
Deferred
tax
£   
Balance at 1st January 2023 180,626
Accelerated capital allowances (5,252 )
Balance at 31st December 2023 175,374

20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
25,000 ORDINARY A 1p 250 250
75,000 ORDINARY B 1p 750 750
1,000 1,000

21. RESERVES

Group
Retained Share
earnings premium Totals
£    £    £   

At 1st January 2023 2,084,788 99,000 2,183,788
Profit for the year 909,569 909,569
Dividends (168,000 ) (168,000 )
At 31st December 2023 2,826,357 99,000 2,925,357

CLIMATEC GROUP HOLDINGS
LIMITED (REGISTERED NUMBER: 12432518)

Notes to the Consolidated Financial Statements - continued
for the year ended 31st December 2023


21. RESERVES - continued

Company
Retained Share
earnings premium Totals
£    £    £   

At 1st January 2023 - 99,000 99,000
Profit for the year 168,000 168,000
Dividends (168,000 ) (168,000 )
At 31st December 2023 - 99,000 99,000


22. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.