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Company No: 02944554 (England and Wales)

TEMPLEC SERVICES LIMITED

Unaudited Financial Statements
For the financial year ended 31 July 2024
Pages for filing with the registrar

TEMPLEC SERVICES LIMITED

Unaudited Financial Statements

For the financial year ended 31 July 2024

Contents

TEMPLEC SERVICES LIMITED

BALANCE SHEET

As at 31 July 2024
TEMPLEC SERVICES LIMITED

BALANCE SHEET (continued)

As at 31 July 2024
Note 2024 2023
£ £
Fixed assets
Tangible assets 4 1,804,097 1,435,368
1,804,097 1,435,368
Current assets
Stocks 5 99,157 91,952
Debtors 6 886,747 1,001,259
Cash at bank and in hand 2,161,747 1,506,093
3,147,651 2,599,304
Creditors: amounts falling due within one year 7 ( 723,150) ( 600,202)
Net current assets 2,424,501 1,999,102
Total assets less current liabilities 4,228,598 3,434,470
Creditors: amounts falling due after more than one year 8 ( 70,497) ( 186,074)
Provision for liabilities ( 356,553) ( 341,347)
Net assets 3,801,548 2,907,049
Capital and reserves
Called-up share capital 999 999
Profit and loss account 3,800,549 2,906,050
Total shareholders' funds 3,801,548 2,907,049

For the financial year ending 31 July 2024 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The financial statements of Templec Services Limited (registered number: 02944554) were approved and authorised for issue by the Board of Directors on 01 November 2024. They were signed on its behalf by:

R J Ashton
Director
TEMPLEC SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 July 2024
TEMPLEC SERVICES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 July 2024
1. Accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

General information and basis of accounting

Templec Services Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is Units 19-20 Gatwick Metro Centre, Balcombe Road, Horley, RH6 9GA, United Kingdom.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.

Going concern

The directors have assessed the Balance Sheet and likely future cash flows at the date of approving these financial statements. The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Turnover

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
- the amount of revenue can be reliably measured;
- it is probable that future economic benefits will flow to the entity;
- and specific criteria have been met for each of the company's activities.

Taxation

Current tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax
Deferred corporation tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statement and on unused tax losses or tax credits in the company. Deferred corporation tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Tangible fixed assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Land and buildings 30 years straight line
Plant and machinery etc. 10 - 33 % reducing balance

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

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.

Leases

The Company as lessee
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

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

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Stocks

Stocks are stated are the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade and other debtors

Trade and other debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment, except where the effect of discounting would be immaterial. In such cases debtors are stated at transaction price less impairment losses. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the transaction.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade and other creditors

Trade and other creditors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, except where the effect of discounting would be immaterial. In such cases creditors are stated at transaction price.

Financial instruments

Classification
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Financial assets are classified as financial assets at fair value through profit or loss, loans and debtors, held-to-maturity investments, available-for-sale financial assets, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. The company determines the classification of its financial assets at initial recognition.

Financial liabilities are classified as financial liabilities at fair value through profit and loss, loans and borrowings, trade and other creditors, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. The company determines the classification of its financial liabilities at initial recognition.

Recognition and measurement
All financial instruments are recognised initially at fair value plus transaction costs. Thereafter financial instruments are stated at amortised cost using the effective interest rate method (less impairment where appropriate) unless the effect of discounting would be immaterial in which case they are stated at cost (less impairment where appropriate). The exception to this are those financial instruments where it is a requirement to continue recording them at fair value through profit and loss.

Impairment
Financial assets are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the asset have been affected.

Loans and borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) 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 Balance Sheet date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

Ordinary share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company's shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

2. Critical accounting judgements and key sources of estimation uncertainty

In the application of the company's accounting policies management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historic experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

3. Employees

2024 2023
Number Number
Monthly average number of persons employed by the Company during the year, including directors 37 35

4. Tangible assets

Land and buildings Plant and machinery etc. Total
£ £ £
Cost
At 01 August 2023 715,037 1,584,196 2,299,233
Additions 0 530,738 530,738
Disposals 0 ( 11,490) ( 11,490)
At 31 July 2024 715,037 2,103,444 2,818,481
Accumulated depreciation
At 01 August 2023 313,315 550,550 863,865
Charge for the financial year 23,835 132,628 156,463
Disposals 0 ( 5,944) ( 5,944)
At 31 July 2024 337,150 677,234 1,014,384
Net book value
At 31 July 2024 377,887 1,426,210 1,804,097
At 31 July 2023 401,722 1,033,646 1,435,368

5. Stocks

2024 2023
£ £
Stocks 99,157 91,952

6. Debtors

2024 2023
£ £
Trade debtors 789,408 658,245
Other debtors 97,339 343,014
886,747 1,001,259

7. Creditors: amounts falling due within one year

2024 2023
£ £
Bank loans 0 77,202
Trade creditors 182,390 182,490
Corporation tax 373,901 192,444
Other taxation and social security 50,955 48,959
Obligations under finance leases and hire purchase contracts 105,852 89,857
Other creditors 10,052 9,250
723,150 600,202

8. Creditors: amounts falling due after more than one year

2024 2023
£ £
Bank loans 0 52,500
Obligations under finance leases and hire purchase contracts 70,497 133,574
70,497 186,074

Bank Loans and Overdrafts

Bank loans have been settled in the year. Bank loans had a carrying amount at the year ending 31 July 2023 of £47,202 and were secured by a specific equitable charge and a fixed floating charge over the assets of the company and a first legal charge over the freehold property and its associated assets, known as Units 19 and 20 Gatwick Metro Centre, Balcombe Road, Horley, Surrey, RH6 9GA. The directors have provided personal guarantees to the company's bankers in respect of its overdraft and loan facilities up to a maximum of £377,000.

The company obtained a loan facility under the Coronavirus Business Interruption Loan (CBIL) scheme, which was settled at the year end (2023 - £82,500). This facility was secured against Units 19 and 20 Gatwick Metro Centre, Balcombe Road, Horley, Surrey and its associated assets. The Secretary of State for Business, Energy and Industrial Strategy has provided a guarantee to the bank under the terms of the CBIL scheme.

Other Borrowings
Obligations under finance leases and hire purchase contracts have a carrying amount at the year end of £176,349 (2023: £223,431) and are secured over the assets to which they relate.

9. Financial commitments

Commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

2024 2023
£ £
within one year 13,204 4,995
between one and five years 54,591 9,157
67,795 14,152

10. Related party transactions

Transactions with the entity's directors

2024 2023
£ £
Amounts owed by directors 32,973 262,912

During the year the company made advances of £292,061 (2023: £273,088) and received repayments of £522,000 (2023: £169,500). The loan from the director to the company is unsecured, interest free and repayable on demand.