Company registration number 06713680 (England and Wales)
ROBERT HEATH GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
ROBERT HEATH GROUP LIMITED
COMPANY INFORMATION
Directors
Mr M Heath
Mr K Ellmore
(Appointed 30 January 2024)
Mr H Ishikawa
(Appointed 30 January 2024)
Mr H van den Berg
(Appointed 30 January 2024)
Mr B van Hauwermeiren
(Appointed 30 January 2024)
Mr M Dyer
(Appointed 30 January 2024)
Secretary
Mr P Llorach Garcia
Company number
06713680
Registered office
Heath House
264 Burlington Road
New Malden
Surrey
United Kingdom
KT3 4NN
Auditor
Deloitte LLP
1 Station Square
Cambridge
United Kingdom
CB1 2GA
Bankers
Barclays
Leicester
United Kingdom
LE87 2BB
ROBERT HEATH GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Notes to the financial statements
13 - 24
ROBERT HEATH GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

The directors present the strategic report for the year ended 30 June 2024.

Principal activities

The principal activity of the company is a holding company.

 

The principal activity of the group is the service, maintenance and installation of domestic and commercial heating and hot water systems within the affordable housing sector. In addition the group develops software applications specific for the building maintenance sector.

Fair Review of the business

Operating profit for the company for the financial year to 30 June 2024 was £101,114 (2023: £185,493).

Profit before tax was £119,877 (2023: £676,432).

The company's principal trading subsidiary, Robert Heath Heating Limited, has continued to perform well. This subsidiary continues to invest in staff training & upskilling in renewable technologies. The company is satisfied that this subsidiary continues to achieve high levels of customer satisfaction and compliance across all clients, as well as securing and onboarding new client contracts.

The net assets position at the balance sheet date was £6,246,029 (2023: £1,188,478). The improvement in net assets is attributable to the investment in Ionize Limited on 24 January 2024 and a corresponding increase in ordinary shares and share premium, issued as consideration for this investment.

Principal risks and uncertainties

The principal risks and uncertainties facing the company are those of its main subsidiary which include the following:

 

Market risk

The company operates in a highly competitive market but the quality and consistency of the company's product and services minimises the risk of losing sales to its key competitors. The company manages this risk by providing innovative products to its customers, having fast response times to customer enquiries and maintaining strong relationships with its customers.

Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the company. The company's credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. In the event that a loss has been identified or occurred a provision has been made for impairment. The company's management further mitigates the risk by obtaining credit insurance against the majority of its customers. The company has low credit risk, due to the exposure being spread over a large number of customers.

Liquidity risk

In order to maintain liquidity to ensure sufficient funds are available for ongoing operations and future developments, the company uses a mixture of its own cash reserves and manages the payment of funds to fellow group companies.

ROBERT HEATH GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Key Performance Indicators

The key financial indicators for the company are considered to be those key to its principal trading subsidiary.

As such, the relevant financial indicators for Robert Heath Heating Limited are:                 

 

2024             2023            % movement

 

Turnover            £42,488,470            £43,404,550        (2.1%)

 

Gross Profit            £13,958,903            £14,137,854        (1.3%)

 

Gross Profit margin         32.8%          32.6%

 

The reduction in turnover is a result of changes in levels of customer project spend which is typical within a service contracting business. Despite the 2.1% reduction in turnover, the business successfully mitigated the reduction in gross margin to just 1.3% through a clear focus on cost control.

Other information

On 24 January 2024 the company purchased the entire share capital of Ionize Limited, company number 11321813. The principal activity of this company is information technology consultancy services. The directors look forward to the synergies and continued growth that this acquisition will bring to the group.

 

On 30 January 2024, the entire share capital of Robert Heath Group Limited was purchased by Daikin Airconditioning UK Limited, company no. 04616794. Control of the company and group has consequently passed to the Daikin group and ultimately to Daikin Industries Limited, a company registered in Japan.

Promoting the success of the company

The directors of the company must act in accordance with a set of general duties. These duties are detailed in section 172 of the Companies Act 2006, which is summarised below.

 

A director of a company must act in a way they consider in good faith, would be most likely to promote the success of the company for the benefit of its shareholders as a whole, and in doing so, have regard amongst other matters to

 

 

The directors fulfil their duties through a governance framework that delegates day-to-day decision-making to employees of the subsidiary companies.

ROBERT HEATH GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -

Overview of how the board performs its duties

 

Likely consequences of any decisions in the long term

Strategy is designed to have a long-term beneficial impact on the company and the group. Strategy is geared towards ensuring the main trading subsidiary's success in the delivery of the most efficient and safe solutions to its customers for their heating, ventilation and climate control needs.

 

The interest of employees

Whilst the company has no direct employees, the directors value involvement of the employees in the group and have continued to keep them informed on matters affecting them as employees and factors affecting the performance of the group. This is achieved through formal and informal meetings. The health and safety and well-being of employees in the group is at the core of the company's decision-making.

 

Business relationships with customers, suppliers and others

Directors understand the need to foster the company’s business relationships with suppliers, customers and others and are mindful of the effect of that regard on the principal decisions taken by the company. The company commits to relationships based on trust and openness with all customers, colleagues business, partners and communities.

 

Community and the environment

The company is aware of its responsibility to protect the environment and its policies and practices strive to keep environmental sustainability high. The group is committed to reducing carbon gas emissions, improving energy efficiency and making use of sustainable energy sources. Several initiatives have been undertaken by the main trading company to reduce emissions and improve efficiencies.

 

Maintaining a reputation for high standards of business conduct

The company aims to maintain high standards within the group by directing a group strategy that aims to anticipate the future needs of customers. Through its subsidiary companies, it is committed to building growth through the initiative and excellence of their employees.

 

The need to act fairly as between members of the company

The board is committed to acting fairly between members of the group and actively engages with shareholders and encourages feedback as part of this engagement process.

Approved by the Board and signed on its behalf by:

Mr M Heath
Director
11 February 2025
ROBERT HEATH GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -

The directors present their annual report and financial statements for the year ended 30 June 2024.

Results and dividends

The results for the year are set out on page 10.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr R Heath
(Resigned 30 January 2024)
Mr M Heath
Mr K Ellmore
(Appointed 30 January 2024)
Mr H Ishikawa
(Appointed 30 January 2024)
Mr H van den Berg
(Appointed 30 January 2024)
Mr B van Hauwermeiren
(Appointed 30 January 2024)
Mr M Dyer
(Appointed 30 January 2024)

Going concern

The directors have carried out a review of the company's expected performance in conjunction with budgets and cash flow requirements of the business to assess going concern. Whilst the directors recognise that the company remains exposed to the risk of an uncertain environment and its impact on the global economy, they have considered a number of impacts on sales, profits and cash flows. This review happens regularly throughout the year by the directors to assess business performance.

 

The directors have assumed that operations remain open and that the company will continue to service its customers. Further, the directors believe there will be sufficient cash reserves to enable the company to meet its obligations as they fall due, and has the ability to take mitigating actions should they be required, for a period not less than 12 months from approval of these financial statements. The company has access to a group cash pooling arrangement with Daikin Europe Coordination Center N.V, as disclosed in Note 14, and can draw down amounts from this arrangement without restriction and on demand if required for operational needs. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Financial instruments

The discussion of financial risk management objectives and policies has been promoted to the Strategic report within the 'Principal risks and uncertainties' section and forms part of this report by cross reference.

Disabled persons

The company's policy is to give full and fair consideration to applications for employment by the company made by disabled persons, having regard to their particular aptitudes and abilities. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

 

Arrangements are made, wherever possible, for continuing the employment of, and for arranging appropriate training for, employees of the company who have become disabled persons during the period when they were employed by the company, to enable them to perform work identified as appropriate to their aptitudes and abilities.

Business relationships

The company's approach to stakeholder engagement is set out in the Strategic report in the "Business relationships with customers, suppliers and others" section.

Post reporting date events

There have been no significant post balance sheet events.

ROBERT HEATH GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 5 -
Future developments

Following the acquisition of the Robert Heath Group by Daikin Industries Limited during the year, the directors look forward to working within the Daikin group to further build on the growth and successes of recent years.

Auditor

Deloitte LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Energy and carbon report

As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information. This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

 

Approved by the Board and signed on its behalf by:
Mr M Heath
Director
11 February 2025
Heath House
264 Burlington Road
New Malden
Surrey
United Kingdom
KT3 4NN
ROBERT HEATH GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 6 -

The directors are responsible for preparing the annual report 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, including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"). 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:

 

 

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.

ROBERT HEATH GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ROBERT HEATH GROUP LIMITED
- 7 -
Report on the audit of the financial statements
Opinion

In our opinion the financial statements of Robert Heath Group Limited (the ‘company’):

 

We have audited the financial statements which comprise:

 

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).

 

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 auditor's 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 Financial Reporting Council’s (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 other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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.

 

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 course of 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.

ROBERT HEATH GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ROBERT HEATH GROUP LIMITED (CONTINUED)
- 8 -
Responsibilities of directors

As explained more fully in the directors’ responsibilities statement, 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 is 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.

Auditor's 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 an auditor's report 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.

 

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

 

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

 

We considered the nature of the company’s industry and its control environment, and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management and the directors about their own identification and assessment of the risks of irregularities, including those that are specific to the company’s business sector.

 

We obtained an understanding of the legal and regulatory framework that the company operates in, and identified the key laws and regulations that:

 

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

 

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

ROBERT HEATH GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ROBERT HEATH GROUP LIMITED (CONTINUED)
- 9 -

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

Report on other legal and regulatory requirements

 

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

 

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 any material misstatements in the strategic and directors’ report.

 

Matters on which we are required to report by exception

Under the Companies Act 2006 we are required to report in respect of the following matters if, in our opinion:

 

We have nothing to report in respect of these matters.

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 an auditor's report 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.

Mr Paul Adkins FCA (Senior Statutory auditor)
For and on behalf of Deloitte LLP
Statutory Auditor
Cambridge, UK
11 February 2025
ROBERT HEATH GROUP LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
2024
2023
Notes
£
£
Administrative expenses
13,615
(46,222)
Other operating income
3
87,500
252,000
Exceptional item
4
-
0
(20,285)
Operating profit
101,115
185,493
Interest receivable and similar income
8
18,975
490,939
Interest payable and similar expenses
9
(213)
-
0
Profit before taxation
119,877
676,432
Tax on profit
10
(291)
(54,047)
Profit for the financial year
119,586
622,385
Total comprehensive income for the year
119,586
622,385

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

ROBERT HEATH GROUP LIMITED
BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investment property
11
-
0
2,160,000
Investments
12
5,169,243
1,101
5,169,243
2,161,101
Current assets
Debtors
14
1,006,432
1,243,676
Cash at bank and in hand
88,234
559
1,094,666
1,244,235
Creditors: amounts falling due within one year
15
(17,880)
(2,216,858)
Net current assets/(liabilities)
1,076,786
(972,623)
Total assets less current liabilities
6,246,029
1,188,478
Provisions for liabilities
Deferred tax liability
16
-
0
62,035
-
(62,035)
Net assets
6,246,029
1,126,443
Capital and reserves
Called up share capital
17
1,200
1,000
Share premium account
18
4,999,800
-
0
Profit and loss reserves
19
1,245,029
1,125,443
Total equity
6,246,029
1,126,443
The financial statements were approved by the board of directors and authorised for issue on 11 February 2025 and are signed on its behalf by:
Mr M Heath
Director
Company registration number 06713680 (England and Wales)
ROBERT HEATH GROUP LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
Called up share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 July 2022
1,000
-
0
503,058
504,058
Year ended 30 June 2023:
Profit and total comprehensive income
-
-
622,385
622,385
Balance at 30 June 2023
1,000
-
0
1,125,443
1,126,443
Year ended 30 June 2024:
Profit and total comprehensive income
-
-
119,586
119,586
Issue of share capital
17
200
4,999,800
-
5,000,000
Balance at 30 June 2024
1,200
4,999,800
1,245,029
6,246,029
ROBERT HEATH GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
1
Accounting policies
Company information

Robert Heath Group Limited is a private company limited by shares incorporated in England and Wales. The registered office is Heath House, 264 Burlington Road, New Malden, Surrey, United Kingdom, KT3 4NN. The company's principal activity is stated in the Strategic report on page 1.

 

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.

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.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The entity is a parent company exempt from the requirement to prepare consolidated financial statements under the Companies Act s400.

 

The financial statements of the company are consolidated in the financial statements of Daikin Europe N.V., a company registered in Belguim. These consolidated financial statements are available from its registered office at Zandvoordestraat 300, B-8400 Oostende, Belgium.

 

1.2
Going concern

The directors have carried out a review of the company's expected performance in conjunction with budgets and cash flow requirements of the business to assess going concern. Whilst the directors recognise that the company remains exposed to the risk of an uncertain environment and its impact on the global economy, they have considered a number of impacts on sales, profits and cash flows. This review happens regularly throughout the year by the directors to assess business performance.true

 

The directors have assumed that operations remain open and that the company will continue to service its customers. Further, the directors believe there will be sufficient cash reserves to enable the company to meet its obligations as they fall due, and has the ability to take mitigating actions should they be required, for a period not less than 12 months from approval of these financial statements. The company has access to a group cash pooling arrangement with Daikin Europe Coordination Center N.V, as disclosed in Note 14, and can draw down amounts from this arrangement without restriction and on demand if required for operational needs. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

ROBERT HEATH GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
1.3
Other income
Other operating income consisting of rental recharges is recognised on a straight line basis by reference to any existing lease terms.
1.4
Interest income

Interest income is recognised when it is probable that the economic benefits will flow to the company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and the effective interest rate applicable.

1.5
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

1.6
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

ROBERT HEATH GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

 

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where 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 have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

ROBERT HEATH GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
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.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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.

ROBERT HEATH GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 17 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Leases

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.12
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Critical accounting judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical accounting judgements

At 30 June 2024, the company did not make any critical judgements in applying its accounting policies.

Key sources of estimation uncertainty

At 30 June 2024, the company did not make any significant estimations in this respect.

ROBERT HEATH GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
3
Other operating income
An analysis of the company's other operating income is as follows:
2024
2023
£
£
Other operating income
87,500
150,000
Management charges received from group companies
-
102,000

Other operating income comprises a rental recharge from the company's main trading subsidiary of £87,500 (2023: £150,000), and a management charge receivable from the same trading subsidiary of £nil (2023: £102,000).

4
Exceptional item
2024
2023
£
£
Expenditure
Inter-company balance write off
-
20,285
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
14,580
4,000
For other services
Audit-related assurance services
-
0
3,000
Taxation compliance services
-
0
1,000
All other non-audit services
-
0
5,020
-
9,020
6
Employees

There were no employees during the year, nor during the previous year.

7
Directors' remuneration

During the year the directors received no emoluments in respect of services to the company (2023: £nil).

ROBERT HEATH GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest receivable from group companies
6,764
-
0
Other interest income
12,211
24,058
Total interest income
18,975
24,058
Income from fixed asset investments
Income from shares in group undertakings
-
0
466,881
Total income
18,975
490,939

Other interest income comprises interest on directors' loans.

9
Interest payable and similar expenses
2024
2023
£
£
Other interest
213
-
0
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
62,326
54,047
Deferred tax
Origination and reversal of timing differences
(62,035)
-
0
Total tax charge
291
54,047
ROBERT HEATH GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
10
Taxation
(Continued)
- 20 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
119,877
676,432
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
29,969
138,669
Tax effect of expenses that are not deductible in determining taxable profit
(7,285)
11,100
Tax effect of income not taxable in determining taxable profit
-
0
(95,711)
Change in unrecognised deferred tax assets
(62,035)
-
0
Other permanent differences
-
0
(11)
Chargeable gains
39,642
-
0
Taxation charge for the year
291
54,047

The corporation tax rate increased to 25% with effect from 1 April 2023. The previous year, the tax rate of 20.5% was used to reflect 3 months of the new rate and 9 months of the previous rate of 19%.

 

The 25% rate is used to measure UK deferred taxes in 2024 (and also in 2023 to the extent that the related timing differences were expected to reverse after 1 April 2023).

11
Investment property
2024
£
Fair value
At 1 July 2023
2,160,000
Disposals
(2,160,000)
At 30 June 2024
-
0

Investment property comprises land and buildings previously owned by the company and occupied by subsidiary Robert Heath Heating Limited, and subsidiaries disposed of during the year, Robert Heath Property Services Limited and Robert Heath Technology Limited. The fair value of the freehold property was determined on the basis of the directors' knowledge of the property market, as well as a formal valuation report obtained on 9 March 2023 from Stiles Harold Williams Partnership LLP, an independent external property valuation specialist. This valuation specialist valued the property at £2,160,000 on an existing use basis.

 

During the year the property was sold to RMJ Heath Property Limited for its fair value.

 

ROBERT HEATH GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
11
Investment property
(Continued)
- 21 -
If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
2024
2023
£
£
Cost
2,000,000
2,000,000
Accumulated depreciation
-
-
Disposals
(2,000,000)
-
Carrying amount
-
2,000,000
12
Fixed asset investments
2024
2023
£
£
Investments in subsidiaries (see note 13)
5,169,243
1,101
Movements in fixed asset investments
Shares in subsidiaries
£
Cost
At 1 July 2023
1,101
Additions
5,168,243
Disposals
(101)
At 30 June 2024
5,169,243
Carrying amount
At 30 June 2024
5,169,243
At 30 June 2023
1,101

On 24 January 2024, the company purchased the entire share capital of Ionize Limited. The value of this investment is measured at cost at acquisition.

 

During the year the company disposed of its entire shareholding in both Robert Heath Technology Limited and Robert Heath Property Services Limited. These investments were disposed at cost value.

13
Subsidiaries

Details of the company's subsidiaries at 30 June 2024 are as follows:

ROBERT HEATH GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
13
Subsidiaries
(Continued)
- 22 -
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Robert Heath Heating Limited
Heath House, 264 Burlington Road, New Malden, Surrey, KT3 4NN, United Kingdom
Heating services and installation
Ordinary
100.00
Ionize Limited
10B Cefn Llan Science Park, Aberystwyth, Ceredigion, SY23 3AH, United Kingdom
IT consultancy services
Ordinary
100.00

The investments in subsidiaries are all stated at cost.

14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Corporation tax recoverable
149,135
211,461
Amounts owed by group undertakings
856,764
-
0
Other debtors
-
0
1,008,157
Prepayments and accrued income
533
24,058
1,006,432
1,243,676

Amounts owed by group undertakings comprise £856,764 (2023: £nil) relating to a group cash pooling arrangement which is repayable on demand and accumulates interest at GBP SONIA less intercompany margin calculated by Daikin Europe Coordination Center N.V, from time to time,

15
Creditors: amounts falling due within one year
2024
2023
£
£
Amounts owed to group undertakings
-
0
2,154,386
Corporation tax
-
0
54,047
Accruals and deferred income
17,880
8,425
17,880
2,216,858

 

16
Deferred taxation
Liabilities
Liabilities
2024
2023
Balances:
£
£
Revaluations
-
62,035
ROBERT HEATH GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
16
Deferred taxation
(Continued)
- 23 -
2024
Movements in the year:
£
Liability at 1 July 2023
62,035
Credit to profit or loss
(62,035)
Liability at 30 June 2024
-

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so.

The movement in deferred tax relates to the disposal of the investment property during the year. The provision has been released to profit and loss.

17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
1,000
1,000
Ordinary A shares of £1 each
200
-
200
-
1,200
1,000
1,200
1,000

During the financial year, the company allotted and issued 200 Ordinary A shares with an aggregate nominal value of £200 in respect of consideration payable for the purchase of Ionize Limited.

 

The company has two classes of Ordinary shares (Ordinary A and Ordinary shares) which carry no right to fixed income.

18
Share premium account
2024
2023
£
£
At the beginning of the year
-
-
Issue of new shares
4,999,800
-
0
At the end of the year
4,999,800
-
0

Share premium increased during the year in respect of 200 Ordinary A shares allotted and and issued as consideration for the purchase of Ionize Limited.

ROBERT HEATH GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 24 -
19
Profit and loss reserves
2024
2023
£
£
At the beginning of the year
1,125,443
503,058
Profit for the year
119,586
622,385
At the end of the year
1,245,029
1,125,443
20
Events after the reporting date

There have been no significant events after the balance sheet date.

21
Related party transactions

The company has taken advantage of the exemption conferred by FRS102 section 33 from the requirement to disclose transactions with group companies on the grounds that consolidated financial statements are prepared.

22
Ultimate controlling party

The immediate parent company is Daikin Airconditioning UK Limited, company no. 04616794, registered in England and Wales

 

Up until 30 January 2024 the ultimate controlling party was R B Heath, a former director of the company. On this date the ultimate parent undertaking and controlling party became Daikin Industries Limited.

 

The company's results are consolidated into group accounts prepared by Daikin Europe N.V., a company registered in Belguim. This is the parent undertaking of the smallest group to consolidate these financial statements. Copies of these group financial statements are available from their registered office address at Zandvoordestraat 300, B-8400 Oostende, Belgium.

 

The ultimate parent undertaking and controlling party is Daikin Industries Limited, a company registered in Japan. Daikin Industries Limited is the parent undertaking of the largest group to consolidate these financial statements. Copies of these group financial statements are available from their registered office address at Umeda Center Bldg., 2-4-12, Nakazaki-Nishi, Kita-ku, Osaka. 530-8323, Japan.

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