Company registration number 13357447 (England and Wales)
TERRATHERM LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
PAGES FOR FILING WITH REGISTRAR
TERRATHERM LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 5
TERRATHERM LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
3
108,660
37,668
Current assets
Stocks
131,449
88,927
Debtors
4
1,691,278
820,669
Cash at bank and in hand
423,916
55,954
2,246,643
965,550
Creditors: amounts falling due within one year
5
(1,721,178)
(693,145)
Net current assets
525,465
272,405
Total assets less current liabilities
634,125
310,073
Provisions for liabilities
(23,397)
(9,417)
Net assets
610,728
300,656
Capital and reserves
Called up share capital
6
100
100
Profit and loss reserves
610,628
300,556
Total equity
610,728
300,656
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 December 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These 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 3 March 2025 and are signed on its behalf by:
Mr D P Blackmore
Director
Company Registration No. 13357447
TERRATHERM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
1
Accounting policies
Company information
Terratherm Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 3&4, Maritme Court, Bedwas House Industrial Estate, Caerphilly, CF83 8HU.
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
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
1.3
Tangible fixed assets
Tangible fixed assets are measured at cost, net of depreciation and any impairment losses.
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:
Leasehold improvements
20% on cost
Plant and equipment
20% on cost
Fixtures and fittings
20% on cost
Computers
33% on cost
Motor vehicles
20% on cost
1.4
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.
1.5
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.
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.
TERRATHERM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 3 -
1.6
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.
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.
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.
1.7
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.8
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.9
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
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
15
3
TERRATHERM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
3
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2024
8,262
8,773
3,400
8,193
19,844
48,472
Additions
37,040
13,052
8,967
11,135
27,143
97,337
Disposals
(19,844)
(19,844)
At 31 December 2024
45,302
21,825
12,367
19,328
27,143
125,965
Depreciation and impairment
At 1 January 2024
693
780
357
706
8,268
10,804
Depreciation charged in the year
5,152
3,119
1,547
4,499
4,090
18,407
Eliminated in respect of disposals
(11,906)
(11,906)
At 31 December 2024
5,845
3,899
1,904
5,205
452
17,305
Carrying amount
At 31 December 2024
39,457
17,926
10,463
14,123
26,691
108,660
At 31 December 2023
7,569
7,993
3,043
7,487
11,576
37,668
4
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
332,215
399,544
Amounts owed by group undertakings
1,162,561
151,773
Other debtors
196,502
269,352
1,691,278
820,669
5
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
113,932
218,430
Corporation tax
203,582
36,432
Other taxation and social security
93,524
10,346
Other creditors
1,310,140
427,937
1,721,178
693,145
TERRATHERM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
6
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
7
Directors' transactions
Dividends totalling £60,000 (2023 - £0) were paid in the year in respect of shares held by the company's directors.
8
Parent company
The parent company is Thermal Energy Group Ltd, whose registered office address is Unit 1b Gallagher Retail Park, Parc Pontypandy, Caerphilly, CF83 3GX.
9
Related party transactions
Included in debtors: amounts falling due within one year is an amount of £1,162,561 (2023 - £151,773) for a loan to Thermal Energy Group Ltd, its parent company.