Company registration number 01516961 (England and Wales)
VRTL (HOLDINGS) LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
VRTL (HOLDINGS) LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
VRTL (HOLDINGS) LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
19,981
26,221
Current assets
Stocks
122,469
66,818
Debtors
5
725,299
795,668
Investments
6
375,000
361,700
Cash at bank and in hand
608,786
619,846
1,831,554
1,844,032
Creditors: amounts falling due within one year
7
(498,195)
(516,215)
Net current assets
1,333,359
1,327,817
Total assets less current liabilities
1,353,340
1,354,038
Provisions for liabilities
(834)
Net assets
1,353,340
1,353,204
Capital and reserves
Called up share capital
9
382,860
382,860
Capital redemption reserve
42,540
42,540
Profit and loss reserves
927,940
927,804
Total equity
1,353,340
1,353,204
The directors of the company have elected not to include a copy of the statement of comprehensive income within the financial statements.true
The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 20 September 2024 and are signed on its behalf by:
N A R Welch C.A.
Director
Company registration number 01516961 (England and Wales)
VRTL (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
VRTL (Holdings) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Newton Court, Wavertree Technology Park, Liverpool, L13 1EJ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
At 31 December 2023, the company had net assets of £1,353,340 and net current assets of £1,333,359, together with surplus cash reserves at that date of £608,786.true
Management have prepared forecasts of financial performance to cover a period of 12 months from the date of signing the financial statements and the directors are confident that the company can meet these forecasts.
Based on this assessment, the directors believe that it remains appropriate to prepare the financial statements on a going concern basis.
1.3
Turnover
Turnover is derived from the provision of goods and services as outlined in the principal activity section of the directors' report.
Turnover arising from the manufacture and distribution of hardware is recognised when the goods are dispatched and invoiced to customers which is ordinarily at the same time.
Turnover arising from installation services is recognised according to the stage of completion of the contract where the contract is significantly progressed. Work in progress arising at the period end date represents goods purchased and initial labour time in establishing contracts and these are recognised at cost in the balance sheet.
Turnover arising from maintenance services is derived in two different ways. The first way is to invoice customers and recognise turnover after each site visit. Certain customers are invoiced annually in advance for a number of forthcoming site visits and the turnover is recognised when each visit has occurred. The deferred income element of the invoice at the period end date is included within other creditors.
All turnover is recognised exclusive of VAT.
1.4
Tangible fixed assets
Tangible fixed assets under the cost model 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.
VRTL (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant & machinery
20% straight line
Fixtures & fittings
20% straight line
Office equipment
33% straight line
The assets' 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.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Finance costs
Finance costs are charged to the Income Statement over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
1.6
Investments
Investments are cash balances held on deposit for a minimum period of 90 days. Interest on these balances is paid on the date of maturity.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Work-in-progress is valued as set out in section 1.3 - turnover.
At each balance sheet date, stocks and work-in-progress are assessed for impairment. If impairment is identified, the carrying amount is revalued to selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
1.8
Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
1.9
Financial instruments
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable and loans to and from related parties.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Income Statement.
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
VRTL (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
1.12
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.13
Retirement benefits
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contribution have been paid the company has no further payment obligations.
The contributions are recognised as an expense in the Income Statement when they fall due. Amounts not paid are shown in other creditors as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
1.15
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
VRTL (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
1.16
Short term creditors are measured at transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
1.17
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
1.18
Interest income
Interest income is recognised in the Income Statement using the effective interest method.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
36
38
3
Dividends
2023
2022
£
£
Final paid
54,000
105,000
VRTL (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2023
131,473
Additions
4,494
At 31 December 2023
135,967
Depreciation and impairment
At 1 January 2023
105,252
Depreciation charged in the year
10,734
At 31 December 2023
115,986
Carrying amount
At 31 December 2023
19,981
At 31 December 2022
26,221
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
600,758
639,090
Other debtors
124,541
156,578
725,299
795,668
Other debtors include interest free advances from the company to a director amounting to £30,000 (2022: £24,000). The maximum overdrawn amount during the year was £36,000 (2022: £24,000).
6
Current asset investments
2023
2022
£
£
Other investments
375,000
361,700
VRTL (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
7
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
133,121
118,821
Corporation tax
20,545
26,590
Other taxation and social security
150,696
154,527
Other creditors
193,833
216,277
498,195
516,215
8
Pension commitments
The company made contributions of £95,024 (2022: £92,465) in the year to a defined contribution scheme for the benefit of its employees. Pension contributions of £17,064 (2022: £15,953) were outstanding at 31 December 2023.
9
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Class A shares of £1 each
361,590
361,590
361,590
361,590
Ordinary Class B shares of £1 each
21,270
21,270
21,270
21,270
382,860
382,860
382,860
382,860
The profits of the Company in respect of each financial year which the Company determines to distribute (if any) shall be distributed amongst each of the holders of 'A' Ordinary Shares and 'B' Ordinary Shares in accordance with the following ratio:
-as to the 'B' Ordinary Shares 1/5 on all dividends declared in respect of the 'A' Ordinary Shares.
On return of assets on liquidation or otherwise (except on a redemption of shares of any class or the purchase by the Company of its own shares) the assets of the Company remaining after the payment of its liabilities shall be distributed amongst the holders of 'A' Ordinary Shares and 'B' Ordinary Share pari passu as though members of the same class in proportion to the amounts paid up or credited as paid up on such shares held by them.
Each holder of 'A' Ordinary Shares and 'B' Ordinary Shares shall be entitled to receive notice of and shall be entitled to attend either in person or by proxy any general meeting of the Company and on a show of hands shall have one vote and on a poll shall have one vote for every share in respect of which he is the holder.
VRTL (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
10
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Neil Kelly BA FCA
Statutory Auditor:
DSG Audit
Date of audit report:
20 September 2024
11
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
Total
146,532
74,873
12
Related party transactions
During the year dividends declared totalling £45,000 (2022: £87,500) were due/paid to the company's directors.
The company paid remuneration and pension contributions of £38,160 (2022: £36,886) and £3,202 (2022: £2,713) respectively in respect of C Pownall, a shareholder and key management personnel of the company. During the year dividends totaling £9,000 (2022: £17,500) were due/paid to C Pownall.
No other transactions with related parties were undertaken such as are required to be disclosed under FRS 102.
13
Subsidiaries
Details of the company's subsidiaries at 31 December 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Grainger Fire Protection Limited
United Kingdom
Ordinary
100.00
Grainger Fire Protection Limited was dormant throughout the year and had net assets of £2 at 31 December 2023 (2022: £2).
Copies of accounts of Grainger Fire Protection Limited can be obtained from the Registrar of Companies.