Company registration number 01561231 (England and Wales)
BTU (INSTALLATION & MAINTENANCE) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
BTU (INSTALLATION & MAINTENANCE) LIMITED
COMPANY INFORMATION
Directors
P. D. Merritt
A. L. McCracken
P. W. Bass
Secretary
P.W. Bass
Company number
01561231
Registered office
38 Weyside Road
Guildford
Surrey
GU1 1JB
Auditor
Ward Williams Limited
Belgrave House
39-43 Monument Hill
Weybridge
Surrey
KT13 8RN
Bankers
Barlays Bank PLC
19 North Street
Guildford
Surrey
GU1 4AG
BTU (INSTALLATION & MAINTENANCE) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Income statement
8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 24
BTU (INSTALLATION & MAINTENANCE) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 1 -

The directors present the strategic report for the year ended 31 October 2024.

Fair review of the business

The company’s principal activity is the installation and maintenance of mechanical and electrical systems to the Building Services Industry.

 

In 2024, the Company posted another impressive set of results as we consolidated our portfolio of high profile, secure clients and increased our offerings to those we have developed long term relationships with. This year our expertise in ventilation services in the post-COVID era and Decarbonisation of buildings has seen opportunities continue to arise. Overall we were delighted to see Turnover stay roughly in line with the previous year, falling by only 3.3% compared to 2023, despite our move away from the domestic market and a challenging economic outlook for our Public Sector Clients

 

Our Maintenance section saw a decrease of 10.1% in Turnover in the Year, reflecting a reduction in previously over-budget spending by some of our maintenance customers. Contract churn also played a role, as some customers made different procurement decisions, leading to non-renewals. However, this was partially offset by new contracts secured during the year, which contributed lower revenue initially due to the mobilisation period and we fully expect revenue to revert to 2023 levels during 2025.

 

Our Install section saw an increase of 13.9% as we secured increased works with the NHS and London Councils. We also secured several new contracts, including laboratory works, with our University partners. The increase in the year came from a number of new clients who we hope to develop more works with in future.

 

As ever it was pleasing to note that Turnover has again been achieved with no discernible diminution in gross margins and is supported by cash flow.

 

Overheads reduced very slightly in the year across a number of categories as we had previously invested in the people required to help the Company to not only take the step to delivering Turnover exceeding £20m, but to do so sustainably each year going forward, and we are now at a stable base to move the Company towards £25m

 

The Company goes into 2025 with an order book already in hand that will see turnover maintained at 2024 levels at the very least, with opportunities possible to grow further again. With energy costs rocketing, our expertise in decarbonisation planning is of great interest to our clients. In addition, we are seeing great benefits from our collaborative approach as clients keep coming back to us for works safe in the knowledge we can deliver even the most challenging projects. 2024 also saw us achieve unprecedented success in joining 6 new Frameworks which should provide us with further streams on Install work over the coming years. With Tender opportunities still at record levels, the company aims to further grow the current levels of activity and profitability into the next few years.

 

Environmental and social responsibility

 

The company takes its environmental and social responsibilities very seriously and is always looking at how the company can improve sustainability and energy efficiency in all contracts as well its own dealings.

        

Employees

 

The company aims to ensure its workforce are safe, healthy and fulfilled. To such end the company has in place comprehensive Health & Safety and Training policies alongside regular employee appraisals and consultation.

 

Details of the number of employees and related costs can be found in note 4 to the financial statements.

 

Key financial highlights are as follows:    

    2024 2023

£ £

Turnover                 21,308,982 22,035,919

Profit/​(Loss) before tax          634,234         526,792

 

Gross profit margin for the year ended 31 October 2024 was 26.6% (2023: 25.8%).

 

 

BTU (INSTALLATION & MAINTENANCE) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 2 -
Principal risks and uncertainties

The company's principal financial instruments comprise bank balances, trade creditors and trade debtors. The main purpose of these instruments is to raise funds for the company's operations and to finance the company's operations.    

 

Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below.

 

In respect of bank balances the liquidity risk is managed centrally to maximise interest income whilst ensuring that the company has sufficient liquid resources to meet the operating needs of its businesses. The company is exposed to fair value interest rate risk on it's deposits and loans. Investment of cash surpluses are made through banks and companies which must fulfil credit rating criteria approved by the Board.    

    

All customers wishing to trade on credit terms are subject to credit verification procedures. Receivable balances are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Future developments

Having made the move to Cloud and hybrid working, the Board have since the Year End made the decision to Upgrade the Accounting and Service Management software package to drive the Company for the next Decade. The upgrade will see one package replace up to 5 legacy systems at once, driving further efficiencies into the business processes.

 

A Vendor has been appointed and work is to commence shortly with a view to transition to the new system from the start of our 2025/26 Accounts period.

 

Following the success of renewing our 3rd and 4th largest contracts in the last year, the key focus is to now achieve renewals for our 2 largest contracts which come due in late 2025 and early 2026 respectively.

Aside from this target, we continue to work hard to engage new clients and have recently been given awards that will help us sustain our position in 2026 and beyond even if we were unable to renew.

 

The Directors ensure the Company never rests on its laurels and are conscious of the changing demands of its customers, especially in times where the economy has moved toward recession and costs remain high. It is testament to the strength of our portfolio that the Company has ridden the worst extent of the inflation crisis, with many contracts including index-linked increases, allowing the Company to continue to pay higher than average pay rises to all staff.

 

The Environment is also becoming a more urgent consideration as the realisation that reliance on fossil fuels needs to be reduced becomes more apparent. The Company are already working with a number of its largest clients on full de-carbonisation strategies and will continue to help other customers develop their future plans throughout the coming year.

 

 

On behalf of the board

P. D. Merritt
Director
7 March 2025
BTU (INSTALLATION & MAINTENANCE) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 3 -
The directors present their report and financial statements for the year ended 31 October 2024.
Directors

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

P. D. Merritt
A. L. McCracken
P. W. Bass
Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £180,000. The directors do not recommend payment of a further dividend.

Auditor

The auditor, Ward Williams Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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.

On behalf of the board
P. D. Merritt
Director
7 March 2025
BTU (INSTALLATION & MAINTENANCE) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 4 -

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). 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.

BTU (INSTALLATION & MAINTENANCE) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF BTU (INSTALLATION & MAINTENANCE) LIMITED
- 5 -
Opinion

We have audited the financial statements of BTU (Installation & Maintenance) Limited (the 'company') for the year ended 31 October 2024 which comprise the income statement, the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. 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).

In our opinion the financial statements:

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 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.

Opinions on other matters prescribed by the Companies Act 2006

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

BTU (INSTALLATION & MAINTENANCE) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF BTU (INSTALLATION & MAINTENANCE) LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception

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 material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

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.

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.

The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

 

 

BTU (INSTALLATION & MAINTENANCE) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF BTU (INSTALLATION & MAINTENANCE) LIMITED (CONTINUED)
- 7 -

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Frank Harling (Senior Statutory Auditor)
For and on behalf of Ward Williams Limited, Statutory Auditor
Chartered Accountants
Belgrave House
39-43 Monument Hill
Weybridge
Surrey
KT13 8RN
7 March 2025
BTU (INSTALLATION & MAINTENANCE) LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 8 -
2024
2023
as restated
Notes
£
£
Revenue
2
21,308,982
22,035,919
Cost of sales
(15,647,156)
(16,357,447)
Gross profit
5,661,826
5,678,472
Distribution costs
(542,490)
(536,138)
Administrative expenses
(4,607,698)
(4,680,310)
Operating profit
3
511,638
462,024
Investment income
6
122,644
64,768
Finance costs
7
(48)
-
0
Profit before taxation
634,234
526,792
Tax on profit
8
(191,102)
(102,579)
Profit for the financial year
443,132
424,213

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

BTU (INSTALLATION & MAINTENANCE) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024
- 9 -
2024
2023
£
£
Profit for the year
443,132
424,213
Other comprehensive income
-
-
Total comprehensive income for the year
443,132
424,213
BTU (INSTALLATION & MAINTENANCE) LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 OCTOBER 2024
31 October 2024
- 10 -
2024
2023
Notes
£
£
£
£
Current assets
Inventories
11
147,183
157,564
Trade and other receivables
12
8,707,046
8,407,250
Cash and cash equivalents
3,096,443
2,883,408
11,950,672
11,448,222
Current liabilities
13
(4,711,171)
(4,641,153)
Net current assets
7,239,501
6,807,069
Equity
Called up share capital
16
200,000
200,000
Other reserves
176,072
6,772
Retained earnings
17
6,863,429
6,600,297
Total equity
7,239,501
6,807,069

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 7 March 2025 and are signed on its behalf by:
P. D. Merritt
Director
Company registration number 01561231 (England and Wales)
BTU (INSTALLATION & MAINTENANCE) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 11 -
Share capital
Share option reserve
Retained earnings
Total
Notes
£
£
£
£
Balance at 1 November 2022
200,000
-
6,226,084
6,426,084
Year ended 31 October 2023:
Profit and total comprehensive income
-
-
424,213
424,213
Dividends
9
-
-
(50,000)
(50,000)
Grant of employee share options
-
6,772
-
0
6,772
Balance at 31 October 2023
200,000
6,772
6,600,297
6,807,069
Year ended 31 October 2024:
Profit and total comprehensive income
-
-
443,132
443,132
Dividends
9
-
-
(180,000)
(180,000)
Employee share options movement
-
169,300
-
169,300
Balance at 31 October 2024
200,000
176,072
6,863,429
7,239,501
BTU (INSTALLATION & MAINTENANCE) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
372,828
768,584
Interest paid
(48)
-
0
Income taxes paid
(102,389)
(122,408)
Net cash inflow from operating activities
270,391
646,176
Investing activities
Interest received
122,644
64,768
Net cash generated from investing activities
122,644
64,768
Financing activities
Dividends paid
(180,000)
(50,000)
Net cash used in financing activities
(180,000)
(50,000)
Net increase in cash and cash equivalents
213,035
660,944
Cash and cash equivalents at beginning of year
2,883,408
2,222,464
Cash and cash equivalents at end of year
3,096,443
2,883,408
Please note that the company received £759,708 from a customer shortly after the year-end (remitted 1 November 2024) which is therefore not reflected in the cash at bank position showing above.
BTU (INSTALLATION & MAINTENANCE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 13 -
1
Accounting policies
Company information

BTU (Installation & Maintenance) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 38 Weyside Road, Guildford, Surrey, GU1 1JB.

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.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Revenue

Revenue is recognised at the fair value of the consideration received or receivable for plumbing and heating 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.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (upon delivery), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

1.4
Inventories

Inventories are stated at the lower of cost and net realisable value.

 

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.5
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.

BTU (INSTALLATION & MAINTENANCE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 14 -
1.6
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 statement of financial position 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 trade and other receivables and cash and bank balances, are initially measured at transaction price, less any impairment

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.

Loans and Receivables

Loans and receivables are measured at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

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. 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.

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.

BTU (INSTALLATION & MAINTENANCE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 15 -
Basic financial liabilities

Basic financial liabilities, including trade and other payables and loans from fellow group companies are recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.

 

Trade payables 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.

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.

Derecognition of financial liabilities

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

1.7
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.

1.8
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 income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

1.9
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.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.10
Retirement benefits

The group operates defined contribution pension schemes. The assets of the schemes are held separately from those of the group in an independently administered fund.

1.11
Share-based payments

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the EBITDA model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

 

BTU (INSTALLATION & MAINTENANCE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 16 -
1.12
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.

BTU (INSTALLATION & MAINTENANCE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 17 -
2
Revenue

An analysis of the company's revenue is as follows:

2024
2023
£
£
Revenue analysed by class of business
Turnover
21,308,982
22,035,919

The total turnover for the company for the year has been derived from its principal activity wholly undertaken in the United Kingdom.

2024
2023
£
£
Other significant revenue
Interest income
122,644
64,768
3
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
22,000
22,000
Share-based payments
169,300
6,772
Operating lease charges
146,037
163,613
4
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Management
3
3
Administration
66
69
Production
52
50
121
122
BTU (INSTALLATION & MAINTENANCE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
4
Employees
(Continued)
- 18 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
5,908,969
5,588,406
Social security costs
599,348
591,087
Pension costs
146,315
128,224
6,654,632
6,307,717
5
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
271,579
271,038
Company pension contributions to defined contribution schemes
32,664
17,016
304,243
288,054

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).

6
Investment income
2024
2023
£
£
Interest income
Interest on bank deposits
122,644
64,768
7
Finance costs
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
48
-
0
BTU (INSTALLATION & MAINTENANCE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 19 -
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
191,102
102,579

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
634,234
526,792
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.52%)
158,559
118,622
Tax effect of expenses that are not deductible in determining taxable profit
52,877
4,549
Group relief
(17,725)
(20,475)
Permanent capital allowances in excess of depreciation
(2,609)
(117)
Taxation charge for the year
191,102
102,579
9
Dividends
2024
2023
£
£
Final paid
180,000
50,000
10
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
7,802,785
7,137,644
Carrying amount of financial liabilities
Measured at amortised cost
3,658,919
3,902,795
11
Inventories
2024
2023
£
£
Finished goods
147,183
157,564
BTU (INSTALLATION & MAINTENANCE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 20 -
12
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Trade receivables
3,725,361
3,001,020
Amounts owed by group undertakings
2,711,802
2,333,695
Other receivables
272,876
200,543
Prepayments and accrued income
1,997,007
2,871,992
8,707,046
8,407,250
13
Current liabilities
2024
2023
£
£
Trade payables
1,883,349
2,224,723
Amounts owed to group undertakings
4,827
6,927
Corporation tax
191,292
102,579
Other taxation and social security
860,960
635,779
Other payables
498,325
580,877
Accruals and deferred income
1,272,418
1,090,268
4,711,171
4,641,153
14
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
146,315
128,224

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

BTU (INSTALLATION & MAINTENANCE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 21 -
15
Share-based payment transactions
Number of share options
Weighted average exercise price
2024
2023
2024
2023
Number
Number
£
£
Outstanding at 1 November 2023
10,725
-
0
30.31
-
0
Granted
-
0
10,725
-
0
30.31
Outstanding at 31 October 2024
10,725
10,725
30.31
30.31
Exercisable at 31 October 2024
-
0
-
0
-
0
-
0

The options outstanding at 31 October 2024 had an exercise price of £30.31 per share, and a remaining contractual life of 8 years and 11 months.

For share options granted, the company has measured fair value in reference to Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA), together with considerations of appropriate price earnings ratios at the date of grant. This was the valuation methodology considered the most appropriate.

 

Liabilities and expenses

During the year, the company recognised total share-based payment expenses of £169,300 (2023 - £6,772) which related to equity settled share-based payment transactions.

16
Share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
200,000 Ordinary Shares of £1 each
200,000
200,000
BTU (INSTALLATION & MAINTENANCE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 22 -
17
Retained earnings
2024
2023
£
£
At the beginning of the year
6,600,297
6,226,084
Profit for the year
443,132
424,213
Dividends declared and paid in the year
(180,000)
(50,000)
At the end of the year
6,863,429
6,600,297
18
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Under one year
18,699
37,500
Between two and five years
-
0
18,699
Total commitment
18,699
56,199

The above operating lease commitment at £18,699, included within under 1 year commitment disclosed, relates to a property that is owned by AFM (Holdings) Limited Pension Scheme, a scheme in which director Paul Merritt is a Trustee and has a significant interest. The expiration of the lease is 30 April 2030, with a break clause included in the lease agreement of 30 April 2025.

BTU (INSTALLATION & MAINTENANCE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 23 -
19
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel, who are also directors, is as follows.

2024
2023
£
£
Aggregate compensation
304,243
288,054
Transactions with related parties

As detailed in note 18, the company entered into a lease agreement regarding premises owned by AFM (Holdings) Limited Pension Scheme, a scheme in which director Paul Merritt is a Trustee and has a significant interest. Rent has been incurred during the year of £37,500 (2023: £37,500) relating to this property.

Other information

The company has taken advantage of the exemption conferred by FRS 102 Section 33 from the requirement to disclose transactions with group companies on the grounds that consolidated financial statements are prepared by the ultimate parent company. The consolidated financial statements of BTU Holdings Limited are available from 38 Weyside Road, Guildford, Surrey, GU1 1JB.

20
Ultimate controlling party

The ultimate parent company is BTU Holdings Limited, a company registered in England and Wales.

The ultimate controlling parties are Paul Merritt and PM Discretionary Trust, holding 100% of the issued voting share capital of that company. The trustees of PM Discretionary Trust are Paul Merritt and Whitefoord Trust Corporation Ltd, and Paul Merritt is a beneficiary of the Trust.

21
Restatement of gross wages

In the financial year-ended 31 October 2023, £414,583 of gross wages were reclassified from direct costs to administrative costs. However, upon further review, it was determined that this reclassification did not accurately reflect the nature of the expenses. As a result, in the financial year-ended 31 October 2024, the wages have been reclassified back to direct costs.

 

This correction ensures that the financial statements provide a true and fair view of the company’s cost structure. The impact of this reclassification is as follows:

 

Financial Statements 31 October 2023: Wages previously reported under direct costs (£414,583) have been reclassified to administrative costs.

 

Financial Statements 31 October 2024: Wages are correctly reported back under direct costs, reflecting the reversal of the 31 October 2023 reclassification (£414,583).

 

This adjustment has been made in accordance with the accounting policies and relevant financial reporting standards in the United Kingdom, and was done to reflect the true employees' function in the business.

BTU (INSTALLATION & MAINTENANCE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 24 -
22
Cash generated from operations
2024
2023
£
£
Profit after taxation
443,132
424,213
Adjustments for:
Taxation charged
191,102
102,579
Finance costs
48
-
0
Investment income
(122,644)
(64,768)
Equity settled share based payment expense
169,300
6,772
Movements in working capital:
Decrease/(increase) in inventories
10,381
(47,040)
Increase in trade and other receivables
(299,796)
(84,720)
(Decrease)/increase in trade and other payables
(18,695)
431,548
Cash generated from operations
372,828
768,584
23
Analysis of changes in net debt
2024
£
Opening net funds
Cash at bank and in hand
2,883,408
Changes in net debt arising from:
Cash flows of the entity
213,035
Closing net funds as analysed below
3,096,443
Closing net funds
Cash at bank and in hand
3,096,443
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