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REGISTERED NUMBER: 01778335 (England and Wales)
















Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 December 2023

for

Coolers & Condensers Limited

Coolers & Condensers Limited (Registered number: 01778335)






Contents of the Financial Statements
for the Year Ended 31 December 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Income and Retained Earnings 10

Balance Sheet 11

Cash Flow Statement 12

Notes to the Cash Flow Statement 13

Notes to the Financial Statements 14


Coolers & Condensers Limited

Company Information
for the Year Ended 31 December 2023







DIRECTORS: D R Gillett
J Kianizadeh
P D Moseley
D South





SECRETARY: D South





REGISTERED OFFICE: 36 Brunel Way
Fareham
Hampshire
PO15 5SA





REGISTERED NUMBER: 01778335 (England and Wales)





AUDITORS: Roches
1 Manor Court
6 Barnes Wallis Road
Segensworth
Fareham
Hampshire
PO15 5TH

Coolers & Condensers Limited (Registered number: 01778335)

Strategic Report
for the Year Ended 31 December 2023

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

This Strategic Report has been prepared in accordance with the requirements of Section 414 of the Companies Act 2006. Its purpose is to inform members of the company and help them assess how the directors have performed their duty to promote the success of the company in accordance with Section 172 of the Companies Act 2006.

REVIEW OF BUSINESS
Financial review and key performance indicators:
2023 2022

Revenue £14.3m £14.3m

Gross margin 21.6% 22.1%

Operating margin 1.1% 5.7%

Net profit before tax £157k £818k


The Company is pleased with the performance in 2023 in which the company successfully relocated to much larger premises in Fareham. Despite the additional cost in moving the two factories and the loss of production during the move period the company has managed to maintain its sales and gross profit margins.

The new premises has significantly increased product capacity and will enable the company to achieve its growth plans.

The order book has remained strong throughout and the company is planning further capital investment to provide greater production output.


Coolers & Condensers Limited (Registered number: 01778335)

Strategic Report
for the Year Ended 31 December 2023

PRINCIPAL RISKS AND UNCERTAINTIES
The company is subject to risks and uncertainties relating to future business which might affect its financial performance. The board has implemented systems to identify risks, to assess them and ensure that reasonable mitigation plans are in place. In addition to generic risks which affect all businesses the board has identified the following principal risks and uncertainties:

Changing technology - The company may be affected by changes in technology which may render its current products and solutions obsolete or uncompetitive. This risk is minimised by continually developing and refining the products and monitoring activity of the competition.

Foreign exchange fluctuations - The company may be adversely affected by changes in foreign currency exchange rates. The directors regularly monitor the company's exposure and review hedging opportunities.

Credit risk - Investment of cash surpluses and borrowings are only made through major UK clearing banks. All customers who wish to trade on credit terms are subject to credit validation procedures. Provision is made for doubtful debts where necessary.

Cash flow - The company may be affected by cash flow pressures associated with adverse economic conditions, including reductions in bank facilities. Cash resources are monitored on an ongoing basis to ensure as far as possible that there are adequate funds available to meet operating requirements. The directors liaise with the company's bankers so as to instil confidence and continued support.

ON BEHALF OF THE BOARD:





Director


18 September 2024

Coolers & Condensers Limited (Registered number: 01778335)

Report of the Directors
for the Year Ended 31 December 2023

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

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the provision of world class solutions in the design and manufacture of heat exchange, refrigeration and cold storage products.

DIVIDENDS
The total distribution of dividends for the year ended 31 December 2023 will be £ 100,000 .

RESEARCH AND DEVELOPMENT
The company has continued to develop its product range to incorporate advances in materials and technology. In particular it is committed to low energy, environmentally friendly refrigeration and cold storage solutions for the future.

FUTURE DEVELOPMENTS
There have not been any events since the balance sheet date that need to be reported to shareholders.

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

D R Gillett
J Kianizadeh
P D Moseley
D South

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Coolers & Condensers Limited (Registered number: 01778335)

Report of the Directors
for the Year Ended 31 December 2023


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

ON BEHALF OF THE BOARD:





D South - Director


18 September 2024

Report of the Independent Auditors to the Members of
Coolers & Condensers Limited

Opinion
We have audited the financial statements of Coolers & Condensers Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and Notes to the 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 company's affairs as at 31 December 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Coolers & Condensers Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
Coolers & Condensers 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:

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

o the nature of the industry and sector, control environment and business performance including the design of the Company's remuneration policies, key drivers for directors' remuneration, bonus levels and performance targets;
o the Company's own assessment of the risks that irregularities may occur either as a result of fraud or error;
o results of our enquiries of management about their own identification and assessment of the risks of irregularities;
o any matters we identified having obtained and reviewed the Company's documentation of their policies and procedures relating to:
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and
o the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the areas in which management is required to exercise significant judgement, such as the disclosure of adjusting items. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory framework that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, Financial Conduct Authority regulations, pensions and tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company's ability to operate or to avoid a material penalty. These included the competition and anti-bribery laws, data protection and employment, environmental and health and safety regulations.

Audit response to risks identified
As a result of performing the above, we identified the disclosure of adjusting items as a key audit matter related to the potential risk of fraud. The key audit matters section of our report explains this matter in more detail and also describes the specific procedures we performed in response to that key audit matter.

In addition to the above, our procedures to respond to risks identified included the following:

o reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

o enquiring of management concerning actual and potential litigation and claims;


Report of the Independent Auditors to the Members of
Coolers & Condensers Limited

o performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

o reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and

o in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists audit teams, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Richard Roche (Senior Statutory Auditor)
for and on behalf of Roches
1 Manor Court
6 Barnes Wallis Road
Segensworth
Fareham
Hampshire
PO15 5TH

20 September 2024

Coolers & Condensers Limited (Registered number: 01778335)

Statement of Income and Retained Earnings
for the Year Ended 31 December 2023

31.12.23 31.12.22
as restated
Notes £    £   

TURNOVER 3 14,349,670 14,311,041

Cost of sales 11,252,607 11,142,546
GROSS PROFIT 3,097,063 3,168,495

Administrative expenses 2,978,267 2,350,414
118,796 818,081

Other operating income 90,705 49,696
OPERATING PROFIT 5 209,501 867,777

Interest receivable and similar income 617 -
210,118 867,777

Interest payable and similar expenses 6 53,293 49,349
PROFIT BEFORE TAXATION 156,825 818,428

Tax on profit 7 30,532 104,988
PROFIT FOR THE FINANCIAL YEAR 126,293 713,440

Retained earnings at beginning of year 1,510,598 1,197,158

Dividends 8 (100,000 ) (400,000 )

RETAINED EARNINGS AT END OF
YEAR

1,536,891

1,510,598

Coolers & Condensers Limited (Registered number: 01778335)

Balance Sheet
31 December 2023

31.12.23 31.12.22
as restated
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 10 658,607 351,575

CURRENT ASSETS
Stocks 11 2,730,967 3,128,171
Debtors 12 3,236,722 2,746,023
Cash at bank 27,565 66,481
5,995,254 5,940,675
CREDITORS
Amounts falling due within one year 13 5,021,929 4,717,143
NET CURRENT ASSETS 973,325 1,223,532
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,631,932

1,575,107

PROVISIONS FOR LIABILITIES 17 94,041 63,509
NET ASSETS 1,537,891 1,511,598

CAPITAL AND RESERVES
Called up share capital 18 1,000 1,000
Retained earnings 19 1,536,891 1,510,598
SHAREHOLDERS' FUNDS 1,537,891 1,511,598

The financial statements were approved by the Board of Directors and authorised for issue on 18 September 2024 and were signed on its behalf by:





D South - Director


Coolers & Condensers Limited (Registered number: 01778335)

Cash Flow Statement
for the Year Ended 31 December 2023

31.12.23 31.12.22
as restated
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 296,908 (74,664 )
Interest paid (53,293 ) (49,349 )
Tax paid (112,121 ) -
Net cash from operating activities 131,494 (124,013 )

Cash flows from investing activities
Purchase of tangible fixed assets (424,214 ) (35,010 )
Sale of tangible fixed assets 2,500 -
Interest received 617 -
Net cash from investing activities (421,097 ) (35,010 )

Cash flows from financing activities
Equity dividends paid (100,000 ) (400,000 )
Net cash from financing activities (100,000 ) (400,000 )

Decrease in cash and cash equivalents (389,603 ) (559,023 )
Cash and cash equivalents at beginning of
year

2

(605,796

)

(46,773

)

Cash and cash equivalents at end of year 2 (995,399 ) (605,796 )

Coolers & Condensers Limited (Registered number: 01778335)

Notes to the Cash Flow Statement
for the Year Ended 31 December 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
31.12.23 31.12.22
as restated
£    £   
Profit before taxation 156,825 818,428
Depreciation charges 103,968 74,716
Loss on disposal of fixed assets 10,714 -
Finance costs 53,293 49,349
Finance income (617 ) -
324,183 942,493
Decrease/(increase) in stocks 397,204 (806,944 )
Increase in trade and other debtors (490,699 ) (781,334 )
Increase in trade and other creditors 66,220 571,121
Cash generated from operations 296,908 (74,664 )

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 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 27,565 66,481
Bank overdrafts (1,022,964 ) (672,277 )
(995,399 ) (605,796 )
Year ended 31 December 2022
31.12.22 1.1.22
as restated
£    £   
Cash and cash equivalents 66,481 33,026
Bank overdrafts (672,277 ) (79,799 )
(605,796 ) (46,773 )


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank and in hand 66,481 (38,916 ) 27,565
Bank overdrafts (672,277 ) (350,687 ) (1,022,964 )
(605,796 ) (389,603 ) (995,399 )
Total (605,796 ) (389,603 ) (995,399 )

Coolers & Condensers Limited (Registered number: 01778335)

Notes to the Financial Statements
for the Year Ended 31 December 2023

1. STATUTORY INFORMATION

Coolers & Condensers Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services.

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer.

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

Tangible fixed assets
Depreciation is provided at the following rates in order to write off each asset over its estimated useful life or if held under finance lease, over the lease term, whichever is shorter.
Long leasehold - Over the term of the lease.
Plant & machinery - Straight line over 4-10 years.
Computer equipment - Straight line over 4 years.

Stocks
Stocks, work in progress and finished goods are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method.

The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.

Work in progress and finished goods costs include materials, as incurred, and a relevant proportion of the total labour and overhead costs according to the stage of completion.

Financial instruments
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable and loans to related parties.

Financial assets & financial liabilities are initially recognised at the transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. However, if the arrangement constitutes a financing transaction then it is measured at the present value of the future receipts discounted at a market rate of interest.

Financial assets & financial liabilities classified as receivable within one year are not amortised.


Coolers & Condensers Limited (Registered number: 01778335)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. 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 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.

Foreign currencies
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction.

At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.

Hire purchase and leasing commitments
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases.

The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments.

Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life.

Operating lease payments are recognised as an expense on a straight line basis over the lease term.

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

Coolers & Condensers Limited (Registered number: 01778335)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

3. TURNOVER

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

An analysis of turnover by geographical market is given below:

31.12.23 31.12.22
as restated
£    £   
United Kingdom 12,350,072 13,111,392
Europe 1,720,770 854,548
United States of America 55,001 -
Asia 223,827 330,745
Rest of the World - 14,356
14,349,670 14,311,041

4. EMPLOYEES AND DIRECTORS
31.12.23 31.12.22
as restated
£    £   
Wages and salaries 2,865,868 2,556,045
Other pension costs 140,049 153,498
3,005,917 2,709,543

The average number of employees during the year was as follows:
31.12.23 31.12.22
as restated

Administration 16 15
Development 3 2
Distribution 3 2
Manufacturing 44 44
Sales 7 7
73 70

31.12.23 31.12.22
as restated
£    £   
Directors' remuneration 219,171 208,737
Directors' pension contributions to money purchase schemes 70,421 93,485

Information regarding the highest paid director is as follows:
31.12.23 31.12.22
as restated
£    £   
Emoluments etc 79,500 69,500
Pension contributions to money purchase schemes 4,800 14,400

Coolers & Condensers Limited (Registered number: 01778335)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

5. OPERATING PROFIT

The operating profit is stated after charging:

31.12.23 31.12.22
as restated
£    £   
Hire of plant and machinery 9,975 4,911
Other operating leases 105,160 105,160
Depreciation - owned assets 103,968 74,719
Loss on disposal of fixed assets 10,714 -
Auditors' remuneration 8,648 8,004
Directors emoluments* 302,091 311,434

6. INTEREST PAYABLE AND SIMILAR EXPENSES
31.12.23 31.12.22
as restated
£    £   
Bank interest 36,543 40,549
Bank loan interest 16,750 8,800
53,293 49,349

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.12.23 31.12.22
as restated
£    £   
Current tax:
UK corporation tax - 112,121

Deferred tax 30,532 (7,133 )
Tax on profit 30,532 104,988

Coolers & Condensers Limited (Registered number: 01778335)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

7. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.23 31.12.22
as restated
£    £   
Profit before tax 156,825 818,428
Profit multiplied by the standard rate of corporation tax in the UK of
23.521% (2022 - 19%)

36,887

155,501

Effects of:
Expenses not deductible for tax purposes 2,282 1,283
Capital allowances in excess of depreciation (55,502 ) -
Depreciation in excess of capital allowances - 7,116
Utilisation of tax losses 16,333 (51,779 )

Deferred taxation - effect of timing differences 30,532 (7,133 )


Total tax charge 30,532 104,988

In 2021 an increase in the corporation tax rate to 25% with effect from 1 April 2023 was substantively enacted. The 23.521% rate used above reflects the change in rate throughout the period under review. The 25% rate is used to measure UK deferred taxes in 2023 & 2022 to the extent the related timing differences were expected to reverse after 1 April 2023.

8. DIVIDENDS
31.12.23 31.12.22
as restated
£    £   
Interim 100,000 400,000

9. PRIOR YEAR ADJUSTMENT

Warranty costs in 2022 were shown in the accounts under administrative expenses. However, it is now considered more appropriate for these costs to be categorised under cost of sales and so are shown as such in 2023. The comparative figures have therefore been amended accordingly for consistency of presentation. The amount of warranty costs in 2022 amounted to £159,843. There is no impact on the net profit for the year.

Coolers & Condensers Limited (Registered number: 01778335)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

10. TANGIBLE FIXED ASSETS
Long Plant and Computer
leasehold machinery equipment Totals
£    £    £    £   
COST
At 1 January 2023 23,013 490,599 19,328 532,940
Additions 83,566 272,588 68,060 424,214
Disposals - (47,229 ) - (47,229 )
At 31 December 2023 106,579 715,958 87,388 909,925
DEPRECIATION
At 1 January 2023 4,688 168,711 7,966 181,365
Charge for year 4,390 89,421 10,157 103,968
Eliminated on disposal - (34,015 ) - (34,015 )
At 31 December 2023 9,078 224,117 18,123 251,318
NET BOOK VALUE
At 31 December 2023 97,501 491,841 69,265 658,607
At 31 December 2022 18,325 321,888 11,362 351,575

11. STOCKS
31.12.23 31.12.22
as restated
£    £   
Stocks 2,153,021 2,531,311
Work-in-progress 547,305 525,212
Finished goods 30,641 71,648
2,730,967 3,128,171

Impairment losses totalling £18,061 (2022 : -£11,939) have been reversed in the period, in relation to slow-moving and obsolete stock. The impairment loss and reversal have been included in cost of sales.

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
as restated
£    £   
Trade debtors 2,468,824 2,485,609
Amounts owed by group undertakings 585,031 -
Other debtors 18,750 18,750
Prepayments 164,117 241,664
3,236,722 2,746,023

Included in trade debtors are amounts totalling £1,347,990 (2022 - £1,630,431) covered under an invoice discounting facility.

Coolers & Condensers Limited (Registered number: 01778335)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
as restated
£    £   
Bank loans and overdrafts (see note 14) 1,022,964 672,277
Trade creditors 1,484,441 1,280,744
Amounts owed to group undertakings 1,317,780 1,039,088
Tax - 112,121
Social security and other taxes 82,063 89,976
VAT 199,128 234,681
Other creditors 97,723 67,835
Deposits held 324,456 622,501
Directors' current accounts 320,000 320,000
Accruals and deferred income 173,374 277,920
5,021,929 4,717,143

14. LOANS

An analysis of the maturity of loans is given below:

31.12.23 31.12.22
as restated
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 1,022,964 672,277

15. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31.12.23 31.12.22
as restated
£    £   
Within one year - 101,000
Between one and five years - 260,917
- 361,917

16. SECURED DEBTS

The following secured debts are included within creditors:

31.12.23 31.12.22
as restated
£    £   
Bank overdrafts 1,022,964 672,277

A fixed and floating charge is held over all of the company assets by HSBC Invoice Finance (UK) Limited.

A fixed and floating charge is held over all of the company assets by HSBC Bank Plc.

Coolers & Condensers Limited (Registered number: 01778335)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

17. PROVISIONS FOR LIABILITIES
31.12.23 31.12.22
as restated
£    £   
Deferred tax 94,041 63,509

Deferred
tax
£   
Balance at 1 January 2023 63,509
Accelerated capital allowances 30,532
Balance at 31 December 2023 94,041

The amount of net reversal of deferred tax expected to occur in the succeeding financial year is £34,220 (2022 : £19,251) relating to the reversal of existing timing differences on tangible fixed assets.

The deferred tax provision has been reduced by £17,360 (2022 : £Nil) in respect of unused tax losses.

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.23 31.12.22
value: as restated
£    £   
1,000 Ordinary £1 1,000 1,000

19. RESERVES
Retained
earnings
£   

At 1 January 2023 1,510,598
Profit for the year 126,293
Dividends (100,000 )
At 31 December 2023 1,536,891

20. CONTINGENT LIABILITIES

The company has guaranteed the borrowings of C & C Industrial Group Limited, CRB Group Limited, Ripley Engineering Limited & Box Clever Projects Limited. The company is party to a cross composite guarantee arrangement with C & C Industrial Group Limited, CRB Group Limited, Ripley Engineering Limited & Box Clever Projects Limited in favour of HSBC Bank plc.

Coolers & Condensers Limited (Registered number: 01778335)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

21. RELATED PARTY DISCLOSURES

C&C Industrial Group Limited:
The ultimate controlling company.

During the year, the company received management services totalling £324,000 (2022 : £324,000).

As at the year end, a total of £451,020 (2022 : -£79,167) was due from the related party which is repayable on demand.

As at the year end, a total of £320,000 (2022 : £320,000) is owing to a director of the company, which is repayable on demand.

Coolers & Condensers Limited is a member of a group. Cooler & Condenser Limited's parent is CRB Group Limited and ultimate parent is C & C Industrial Group Limited, whose registered address is as follows:
36 Brunel Way
Segensworth East
Fareham
Hampshire
PO15 5SA

During the year, a total of key management personnel compensation of £ 367,592 was paid.