REGISTERED NUMBER: |
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
ELECTRICAL & MECHANICAL SOLUTIONS |
LIMITED |
REGISTERED NUMBER: |
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
ELECTRICAL & MECHANICAL SOLUTIONS |
LIMITED |
ELECTRICAL & MECHANICAL SOLUTIONS |
LIMITED (REGISTERED NUMBER: 07131073) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the Year Ended 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 4 |
ELECTRICAL & MECHANICAL SOLUTIONS |
LIMITED |
COMPANY INFORMATION |
for the Year Ended 31 DECEMBER 2023 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
ACCOUNTANTS: |
Chartered Accountants |
and Statutory Auditor |
61 Queen Square |
Bristol |
BS1 4JZ |
ELECTRICAL & MECHANICAL SOLUTIONS |
LIMITED (REGISTERED NUMBER: 07131073) |
BALANCE SHEET |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
Investments | 5 |
CURRENT ASSETS |
Debtors | 6 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 7 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
8 |
NET ASSETS/(LIABILITIES) | ( |
) |
ELECTRICAL & MECHANICAL SOLUTIONS |
LIMITED (REGISTERED NUMBER: 07131073) |
BALANCE SHEET - continued |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
CAPITAL AND RESERVES |
Called up share capital | 12 |
Retained earnings | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) |
The director acknowledges his responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
The financial statements were approved by the director and authorised for issue on |
ELECTRICAL & MECHANICAL SOLUTIONS |
LIMITED (REGISTERED NUMBER: 07131073) |
NOTES TO THE FINANCIAL STATEMENTS |
for the Year Ended 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
Electrical & Mechanical Solutions Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements contain information about Electrical & Mechanical Solutions Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company has taken the option under Section 398 of the Companies Act 2006 not to prepare consolidated financial statements. |
Turnover |
Turnover represents the value of services provided during the year, net of value added tax. |
In respect of contracts for on-going services, turnover represents the value of work done in the year, including estimates of amounts not invoiced. |
Tangible fixed assets |
Fixtures and fittings | - |
Motor vehicles | - |
Financial instruments |
Financial assets and liabilities are recognised in the balance sheet when the company becomes party to the contractual provisions of the instrument. |
Trade and other debtors and creditors are classified as basic financial instruments and are measured on initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the company not be able to collect all amounts due. |
Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts which are an integral part of the company's cash management. |
ELECTRICAL & MECHANICAL SOLUTIONS |
LIMITED (REGISTERED NUMBER: 07131073) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial liabilities and equity instruments issued by the company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds received, net of any direct issue costs. |
Interest bearing bank loans, overdrafts and other loans which meet the criteria of basic financial instruments are initially recorded at the present value of cash payable to the bank, usually being equivalent to the proceeds received net of direct issue costs. These liabilities are subsequently measured at amortised cost, using the effective interest rate method. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme for employees. Contributions payable to the company's pension scheme are charged to the statement of comprehensive income as they become payable in accordance with the rules of the scheme. Differences between contributions payable in the year and those actually paid are shown as either accruals or prepayments in the balance sheet. |
Investments |
Fixed and current asset investments are stated at cost, less provisions for impairment. |
ELECTRICAL & MECHANICAL SOLUTIONS |
LIMITED (REGISTERED NUMBER: 07131073) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Going concern |
The director considers that the company has sufficient working capital and facilities in place to meet all of its liabilities as they fall due for the foreseeable future, and has further indicated that he is willing to continue to provide financial support for the company to the extent that funds are required. The director therefore continues to adopt the going concern basis of accounting in preparing these financial statements. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
4. | TANGIBLE FIXED ASSETS |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
5. | FIXED ASSET INVESTMENTS |
2023 | 2022 |
£ | £ |
Shares in group undertakings |
Other loans |
ELECTRICAL & MECHANICAL SOLUTIONS |
LIMITED (REGISTERED NUMBER: 07131073) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 DECEMBER 2023 |
5. | FIXED ASSET INVESTMENTS - continued |
Additional information is as follows: |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Other |
loans |
£ |
At 1 January 2023 |
and 31 December 2023 |
The company owns 100% of the entire issued share capital of St. Mary's Bay Developments Limited, a company registered in England and Wales |
The capital and reserves of St. Mary's Bay Developments Limited at 31 October 2023 were a deficit of £9,724 (2022 - £9,225). The company made a loss for the year then ended of £499 (2022 - £2,293). |
At 31 December 2023 the company had provided cumulative investment loans totalling £705,000 to unconnected companies. The company does not hold any equity interest in these companies. At 31 December 2023 the company has provided against the carrying value of the loans by £385,000 (2022 - £385,000), based on the director's assessment of the likely recoverability of the loans using information currently available. |
ELECTRICAL & MECHANICAL SOLUTIONS |
LIMITED (REGISTERED NUMBER: 07131073) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 DECEMBER 2023 |
6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Directors' current accounts | - | 43,205 |
Corporation tax recoverable |
VAT |
Deferred tax asset |
Prepayments and accrued income |
Deferred tax asset |
2023 | 2022 |
£ | £ |
Accelerated capital allowances |
Other timing differences | 44 | - |
7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 9) |
Hire purchase contracts |
Trade creditors |
Corporation tax |
Social security and other taxes |
VAT | - | 1,835 |
Other creditors |
Directors' current accounts | 13,583 | - |
Accruals and deferred income |
Loans totalling £545,747 (2022 - £425,463) are included within other creditors and include £110,528 (2022 - £188 793) due after more than one year. These are due to The Damar Executive Pension Fund, of which the company is the principal employer, and are secured on the shares of the company. The loans carry interest at 3.75% above the Bank of England base rate and each is normally repayable in equal annual instalments over a 5 year term, though repayments were deferred during the pandemic. |
ELECTRICAL & MECHANICAL SOLUTIONS |
LIMITED (REGISTERED NUMBER: 07131073) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 DECEMBER 2023 |
8. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans (see note 9) |
Hire purchase contracts |
Other creditors | 110,528 | 1,220,519 |
9. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
ELECTRICAL & MECHANICAL SOLUTIONS |
LIMITED (REGISTERED NUMBER: 07131073) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 DECEMBER 2023 |
10. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Bank overdraft |
Bank loans |
Hire purchase contracts | 30,055 | - |
Loans from pension fund | 545,747 | 425,463 |
The bank loan and overdraft are secured by fixed and floating charges over the company's property and assets. Further details of the security given for pension fund loans are included in note 10 to the financial statements. |
11. | DEFERRED TAX |
At 31 December 2023 the company had an unprovided deferred tax asset of £Nil (2022 - £3,112) in respect of Accelerated Capital Allowances, £Nil (2022 - £4,375) in respect of Tax Losses carried forward, and £Nil (2022 - £33) in respect of Other Short-term Timing Differences. |
12. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 1,000 | 1,000 |
ELECTRICAL & MECHANICAL SOLUTIONS |
LIMITED (REGISTERED NUMBER: 07131073) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 DECEMBER 2023 |
13. | RELATED PARTY DISCLOSURES |
On 3 February 2012, the company became the principal employer for The Damar Executive Pension Fund, whose beneficiaries are the director, D M Matthews, and M P Matthews. The company received no loans (2022 -£Nil) from the Damar Executive Pension Fund during the year. Interest totalling £20,328 (2022 - £18,688) was incurred by the company on these loans during the year. At 31 December 2023 a balance of £545,747 remains outstanding (2022 - £425,463), which is included within Other creditors, of which £110,528 (2022 - £188,793) is due after more than one year. |
At 31 December 2023 the company owed £Nil (2022 - £1,031,726) to Northavon Group Limited, a company related by common control and directorship. The company was released from the obligation to repay the remaining loan of £793,992 in the year, following a formal Deed of Release by Northavon Group Limited. No interest was charged on the loan during this or the previous year. Interest previously accrued by the company of £71,094 was released to the profit and loss account in the year. The company provided consultancy services to Northavon Group Limited, charging a total of £111,550 (2022 - £24,458) during the year. At the year end, Northavon Group Limited owed the company £11,520 (2022 - £Nil), which is carried within Trade debtors. |
At 31 December 2023 the company was owed a total of £991,832 (2022 - £969,598) by Willpower South West Limited, a company related by common shareholding. No interest is charged on this balance, which is unsecured. |
During the year ended 31 December 2023 various operational costs of the subsidiary company St Mary's Bay Developments Limited were paid by the company, totalling £421 (2022 - £2,743). At 31 December 2023 the company was owed £13,323 (2022 - £14,341) by St Mary's Bay Developments Limited. A provision of £9,641 has been made against this loan at 31 December 2023 (2022 - £8,245). |
At 31 December 2023 the company owed D M Matthews, the director, £13,583 (2022: £43,205 owed to company). |