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Company registration number: 00950992
Meddings Thermalec Limited
Unaudited filleted financial statements
31 March 2023
Meddings Thermalec Limited
Contents
Directors and other information
Statement of financial position
Notes to the financial statements
Meddings Thermalec Limited
Directors and other information
Directors Mr P M Meddings
Mr M S Dibbens
Company number 00950992
Registered office Kinglsey Close, East Way
Lee Mill Industrial Estate
Ivybridge
Devon
PL21 9LL
Meddings Thermalec Limited
Statement of financial position
31 March 2023
2023 2022
Note £ £ £ £
Fixed assets
Tangible assets 6 995,353 1,015,275
Investments 7 102 102
_______ _______
995,455 1,015,377
Current assets
Stocks 544,813 417,772
Debtors 8 741,182 689,765
Cash at bank and in hand 88,835 4,775
_______ _______
1,374,830 1,112,312
Creditors: amounts falling due
within one year 9 ( 2,720,913) ( 1,032,413)
_______ _______
Net current (liabilities)/assets ( 1,346,083) 79,899
_______ _______
Total assets less current liabilities ( 350,628) 1,095,276
Creditors: amounts falling due
after more than one year 10 ( 556,765) ( 644,249)
_______ _______
Net (liabilities)/assets ( 907,393) 451,027
_______ _______
Capital and reserves
Called up share capital 875,000 875,000
Profit and loss account ( 1,782,393) ( 423,973)
_______ _______
Shareholders (deficit)/funds ( 907,393) 451,027
_______ _______
For the year ending 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors responsibilities:
- 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;
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.
These financial statements were approved by the board of directors and authorised for issue on 18 September 2024 , and are signed on behalf of the board by:
Mr M S Dibbens
Director
Company registration number: 00950992
Meddings Thermalec Limited
Notes to the financial statements
Year ended 31 March 2023
1. General information
The company is a private company limited by shares, registered in England. The address of the registered office is Kinglsey Close, East Way, Lee Mill Industrial Estate, Ivybridge, Devon, PL21 9LL.
2. Statement of compliance
These financial statements have been prepared in compliance with the provisions of FRS 102, Section 1A, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
The company has net liabilities. The company is reliant upon the continued financial support of its fellow group companies in order to continue operations. The parent company has indicated its willingness to provide financial support to ensure that the company has sufficient resources to meet third parties debts as they fall due. Accordingly the accounts have been prepared on a going concern basis. If the support of the fellow group companies was withdrawn, then the going concern basis may not be acceptable. Adjustments may then have to be made to adjust the value of the assets to their recoverable amounts, to provide for any further liabilities that might arise, and to reclassify fixed assets and long term loans as current assets and current liabilities.
Consolidation
The company has taken advantage of the option not to prepare consolidated financial statements contained in Section 398 of the Companies Act 2006 on the basis that the company and its subsidiary undertakings comprise a small group.
Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Exceptional items
Exceptional items are disclosed separately in the financial statements in order to provide further understanding of the financial performance of the entity. They are material items of income or expense that have been shown separately because of their nature or amount.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Research and development
Research expenditure is written off in the year in which it is incurred. Development expenditure incurred is capitalised as an intangible asset only when all of the following criteria are met: - It is technically feasible to complete the intangible asset so that it will be available for use or sale; - There is the intention to complete the intangible asset and use or sell it; - There is the ability to use or sell the intangible asset; - The use or sale of the intangible asset will generate probable future economic benefits; - There are adequate technical, financial and other resources available to complete the development and to use or sell the intangible asset; and - The expenditure attributable to the intangible asset during its development can be measured reliably. Expenditure that does not meet the above criteria is expensed as incurred.
Tangible assets
tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant and machinery - 15 % reducing balance
Office equipment and fixtures - Between 10% of written down value and 5 years straight line
Motor vehicles - 25 % reducing balance
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Fixed asset investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses. Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
Stock and work in progress
Stocks are valued on a first in, first out basis, at the lower of cost and net realisable value after making due allowance for any obsolete or slow moving items. In the case of finished goods and work in progress, cost comprises direct materials, direct labour and an appropriate proportion of manufacturing fixed and variable overheads.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised in finance costs in profit or loss in the period in which it arises.
Defined benefit plan
The company operates a defined benefit pension scheme, which requires contributions to be made to separately administered funds. Contributions to this fund are charged in the profit and loss account as incurred. The regular cost is attributed to individual years using the Projected Unit Credit method. Variations in pension cost, which are identified as a result of actuarial valuations, are not reflected in the accounts. This is contrary to the accounting requirements of FRS 102 (Section 1A). The company will contribute to new members of staff personal pension plans and contributions are charged when they are payable to the scheme.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 33 (2022: 35 ).
5. Exceptional items
2023 2022
£ £
Loan waiver by parent company - 2,000,000
_______ _______
6. Tangible assets
Plant and machinery Fixtures, fittings and equipment Total
£ £ £
Cost
At 1 April 2022 1,267,221 48,900 1,316,121
Additions 140,675 17,353 158,028
_______ _______ _______
At 31 March 2023 1,407,896 66,253 1,474,149
_______ _______ _______
Depreciation
At 1 April 2022 280,918 19,928 300,846
Charge for the year 169,047 8,903 177,950
_______ _______ _______
At 31 March 2023 449,965 28,831 478,796
_______ _______ _______
Carrying amount
At 31 March 2023 957,931 37,422 995,353
_______ _______ _______
At 31 March 2022 986,303 28,972 1,015,275
_______ _______ _______
7. Investments
Shares in group undertakings and participating interests
£
Cost
At 1 April 2022 and 31 March 2023 102
_______
Impairment
At 1 April 2022 and 31 March 2023 -
_______
Carrying amount
At 31 March 2023 102
_______
At 31 March 2022 102
_______
8. Debtors
2023 2022
£ £
Trade debtors 236,228 257,773
Amounts owed by group undertakings and undertakings in which the company has a participating interest 7,411 31,195
Other debtors 497,543 400,797
_______ _______
741,182 689,765
_______ _______
9. Creditors: amounts falling due within one year
2023 2022
£ £
Bank loans and overdrafts 2,182 9,799
Trade creditors 712,555 376,802
Amounts owed to group undertakings and undertakings in which the company has a participating interest 1,609,821 8,361
Social security and other taxes 178,830 303,670
Other creditors 217,525 333,781
_______ _______
2,720,913 1,032,413
_______ _______
10. Creditors: amounts falling due after more than one year
2023 2022
£ £
Other creditors 556,765 644,249
_______ _______
11. Operating leases
The company as lessee
The total future minimum lease payments under non-cancellable operating leases are as follows:
£ £
Later than 5 years 1,080,000 -
_______ _______
Lease commitment on trading premises.
12. Related party transactions
During the year the company entered into the following transactions with related parties:
Transaction value Balance owed by/(owed to)
2023 2022 2023 2022
£ £ £ £
Subsidiary undertaking - - ( 7,054) ( 7,228)
Parent undertaking - ( 1,945,600) ( 1,602,767) 28,020
Other group undertakings - 27,558 4,236 ( 1,133)
Associated company - - - 3,175
_______ _______ _______ _______
13. Controlling party
The parent undertaking and ultimate holding company is W J Meddings (Holdings) Limited, a company incorporated in England and whose registered office is Kingsley Close, East Way, Lee Mill Industrial Estate, Ivybridge, Devon, PL21 9LL.
14. Defined benefit pension scheme
The company subscribes to the pension scheme operated by the Meddings group which is a funded pension scheme for the holding company and its subsidiary undertakings. This scheme provides benefits on final pensionable pay. The assets of the scheme are held separately from those of the group, being invested with fund managers.
Pension contributions to the scheme are charged to the profit and loss account as they are made. The contributions are determined by a qualified actuary on the basis of triennial valuations using the Projected Unit Funding method. A full actuarial valuation was carried out and updated to 31 December 2022.
This most recent valuation as at 31 December 2022 showed that: Market value of scheme assets £891,000 Present value of scheme liabilities £826,000 Pension scheme surplus £65,000
The contributions of the company and employees are 8% and 4% of earnings respectively.
The defined benefit scheme was closed to new members on 6 April 2002. Under the Projected Unit Funding method, the current service cost would be expected to increase over time as members of the scheme approach retirement.