Company registration number 14488416 (England and Wales)
BTU HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
BTU HOLDINGS LIMITED
COMPANY INFORMATION
Director
Mr P D Merritt
Secretary
Mr Paul Bass
Company number
14488416
Registered office
38 Weyside Road
Guildford
Surrey
GU1 1JB
Auditor
Ward Williams Limited
Bay Lodge
36 Harefield Road
Uxbridge
Middlesex
UB8 1PH
Bankers
Barclays Bank PLC
19 North Street
Guildford
Surrey
GU1 4AG
BTU HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 7
Income statement
8
Group statement of comprehensive income
9
Group and company statement of financial positions
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 31
BTU HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 1 -

The director presents the strategic report for the year ended 31 October 2024.

Review of the business

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

 

In 2024, the Group 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 3.2% 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 Group 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 Group towards £25m

 

The Group 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 Group aims to further grow the current levels of activity and profitability into the next few years.

 

Environmental and social responsibility

 

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

        

Employees

 

The Group aims to ensure its workforce are safe, healthy and fulfilled. To such end the Group 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 5 to the financial statements.

 

Key financial highlights are as follows:

2024 2023

£ £

Turnover                  21,844,912 22,569,833

Profit/​(Loss) before tax     594,473     438,894

 

Gross profit margin for the year ended 31 October 2024 was 26.8% (2023: 25.9%).

 

 

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

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

 

Due to the nature of the financial instruments used by the Group there is no exposure to price risk. The Group'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 Group has sufficient liquid resources to meet the operating needs of its businesses. The Group is exposed to fair value interest rate risk on its 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 Group 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 Group 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 Group has ridden the worst extent of the inflation crisis, with many contracts including index-linked increases, allowing the Group 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 Group 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

Mr P D Merritt
Director
7 March 2025
BTU HOLDINGS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 3 -

The director presents his annual report and financial statements for the year ended 31 October 2024.

Results and dividends

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

Ordinary dividends were paid by BTU Holdings Limited amounting to £151,275 (2023 - £151,275 of which £96,816 was by BTU Holdings Limited). The director does not recommend payment of a further dividend.

Director

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

Mr P D Merritt
Auditor

The auditor, Ward Williams, 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 auditor of the company 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 auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr P D Merritt
Director
7 March 2025
BTU HOLDINGS LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 4 -

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

BTU HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BTU HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of BTU Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2024 which comprise the group income statement, the group statement of comprehensive income, the group statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group 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 group and parent 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 director's 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 group's and parent 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 director 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 director is 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 HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BTU HOLDINGS LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's 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 director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the parent 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 director either intends to liquidate the parent company or to cease operations, or has 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 the 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 ISAs (UK).

BTU HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BTU HOLDINGS LIMITED
- 7 -

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

 

 

 

 

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 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.

Frank Harling (Senior Statutory Auditor)
For and on behalf of Ward Williams Limited, Statutory Auditor
Chartered Accountants
Bay Lodge
36 Harefield Road
Uxbridge
Middlesex
UB8 1PH
7 March 2025
BTU HOLDINGS LIMITED
GROUP INCOME STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 8 -
2024
2023
as restated
Notes
£
£
Revenue
3
21,844,912
22,569,833
Cost of sales
(15,988,496)
(16,719,478)
Gross profit
5,856,416
5,850,355
Distribution costs
(415,572)
(404,811)
Administrative expenses
(4,995,878)
(5,089,075)
Other operating income
7,147
8,895
Operating profit
4
452,113
365,364
Investment income
7
133,815
81,852
Finance costs
8
(615)
(7,496)
Other gains and losses
9
9,160
(826)
Profit before taxation
594,473
438,894
Tax on profit
10
(260,824)
(137,081)
Profit for the financial year
25
333,649
301,813
Profit for the financial year is all attributable to the owners of the parent company.
BTU HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024
- 9 -
2024
2022
£
£
Profit for the year
333,649
75,119
Other comprehensive income
-
-
Total comprehensive income for the year
333,649
75,119
Total comprehensive income for the year is all attributable to the owners of the parent company.
BTU HOLDINGS LIMITED
GROUP AND COMPANY STATEMENTS OF FINANCIAL POSITION
AS AT 31 OCTOBER 2024
31 October 2024
- 10 -
Group
Group
Company
Company
2024
2023
2024
2023
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
12
883,820
951,101
879,912
937,488
Investments
13
-
0
-
0
1,833,959
1,909,034
883,820
951,101
2,713,871
2,846,522
Current assets
Inventories
15
227,503
234,906
-
-
Trade and other receivables
16
6,229,785
6,192,705
172,911
68,537
Investments
17
107,424
99,719
107,424
99,719
Cash and cash equivalents
3,569,673
3,215,707
130,031
-
0
10,134,385
9,743,037
410,366
168,256
Current liabilities
18
(4,914,594)
(4,970,989)
(2,955,746)
(2,875,395)
Net current assets/(liabilities)
5,219,791
4,772,048
(2,545,380)
(2,707,139)
Total assets less current liabilities
6,103,611
5,723,149
168,491
139,383
Provisions for liabilities
Deferred tax liability
20
(167,949)
(139,161)
(167,949)
(139,161)
Net assets
5,935,662
5,583,988
542
222
Equity
Called up share capital
22
75,075
75,075
75,075
75,075
Share premium account
23
993
993
993
-
0
Capital redemption reserve
24
14,242
14,242
-
0
-
0
Other reserves
176,072
6,772
-
0
-
0
Retained earnings
25
5,669,280
5,486,906
(75,526)
(74,853)
Total equity
5,935,662
5,583,988
542
222

As permitted by s408 Companies Act 2006, the company has not presented its own income statement and related notes. The company's profit for the period was £150,602 (2023 - £21,963).

The financial statements were approved and signed by the director and authorised for issue on 7 March 2025
2024-10-31
07 March 2025
Mr P D Merritt
Director
Company registration number 14488416 (England and Wales)
BTU HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 11 -
Share capital
Share premium account
Capital redemption reserve
Share option reserve
Retained earnings
Total
Notes
£
£
£
£
£
£
Balance at 1 November 2022
-
0
993
14,242
-
5,336,368
5,351,603
Year ended 31 October 2023:
Profit and total comprehensive income
-
-
-
-
301,813
301,813
Dividends
11
-
-
-
-
(151,275)
(151,275)
Conversion of loan to shares
22
75,075
-
0
-
-
-
75,075
Grant of employee share options
-
-
-
6,772
-
6,772
Balance at 31 October 2023
75,075
993
14,242
6,772
5,486,906
5,583,988
Year ended 31 October 2024:
Profit and total comprehensive income
-
-
-
-
333,649
333,649
Dividends
11
-
-
-
-
(151,275)
(151,275)
Employee share options
-
-
-
169,300
-
169,300
Balance at 31 October 2024
75,075
993
14,242
176,072
5,669,280
5,935,662
BTU HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 12 -
Share capital
Share premium account
Retained earnings
Total
Notes
£
£
£
£
Balance at 1 November 2022
-
0
-
0
-
0
-
Year ended 31 October 2023:
Profit and total comprehensive income for the year
-
-
21,963
21,963
Dividends
11
-
-
(96,816)
(96,816)
Issue of share capital
22
75,075
-
0
-
75,075
Balance at 31 October 2023
75,075
-
0
(74,853)
222
Year ended 31 October 2024:
Profit and total comprehensive income
-
-
150,602
150,602
Dividends
11
-
-
(151,275)
(151,275)
Transfers
-
993
-
993
Balance at 31 October 2024
75,075
993
(75,526)
542
BTU HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
32
833,028
139,048
Group restructure - shared issues
-
75
Interest paid
(615)
(7,496)
Income taxes paid
(176,292)
(122,751)
Net cash inflow from operating activities
656,121
8,876
Investing activities
Purchase of property, plant and equipment
(202,080)
(51,894)
Proceeds from disposal of property, plant and equipment
10,765
778,821
Gaind / (Losses) on current asset investments
9,160
(826)
Interest received
131,334
79,393
Dividends received
2,481
2,459
Current asset investment reallocation and income reinvested
(7,705)
(889)
Net cash (used in)/generated from investing activities
(56,045)
807,064
Financing activities
Repayment of borrowings
-
(93,750)
Payment of finance leases obligations
(94,835)
(14,529)
Dividends paid to equity shareholders
(151,275)
(151,275)
Net cash used in financing activities
(246,110)
(259,554)
Net increase in cash and cash equivalents
353,966
556,386
Cash and cash equivalents at beginning of year
3,215,707
2,659,321
Cash and cash equivalents at end of year
3,569,673
3,215,707
Please note that the group 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 HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 14 -
1
Accounting policies
Company information

BTU Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 38 Weyside Road, Guildford, Surrey, GU1 1JB.

 

The group consists of BTU Holdings Limited and all of its subsidiaries since 19 July 2023. Up to 19 July 2023, the group consisted of AFM Holdings Limited and its subsidiaries.

1.1
Reporting period

BTU Holdings Limited, which became the parent of the group following an internal group restructure on 19 July 2023, was incorporated on 16 November 2022. The comparative reporting period of the individual parent company only therefore covers the period from incorporation to 31 October 2023.

 

The comparative reporting period of the group includes results for the full year-ended 31 October 2023, with AFM Holdings Limited being a parent prior to 19 July 2023 and BTU Holdings Limited being a parent post 19 July 2023.

1.2
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The 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 for parent company information presented within the consolidated financial statements:

 

The consolidated group financial statements consist of the financial statements of the parent company BTU Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group's share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 October 2024.

 

All intra-group transactions and balances between the group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

BTU HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 15 -
1.3
Going concern

During the last financial statements period, the BTU Group structure was further simplified, with BTU Holdings Limited assuming the role of Group Holding Company. The previous Holding Company, AFM Holdings Limited has since been dissolved. This change of structure has had no impact on the going concern of the Group and therefore the going concern basis of accounting is still deemed appropriate.

 

At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Revenue

Revenue 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.

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.

1.5
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, 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:

Land and buildings freehold
No depreciation charged
Land and buildings leasehold
20% straight line basis
Plant and machinery
10-25% straight line basis
Fixtures, fittings & equipment
10-25% straight line basis
Computer equipment
25% straight line basis
Motor vehicles
25% reducing balance method

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

 

1.6
Non-current investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

BTU HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 16 -

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

1.7
Impairment of non-current assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
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.

1.9
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 HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 17 -
1.10
Financial instruments

The group 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 group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

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 group 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 group after deducting all of its liabilities.

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.

BTU HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 18 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the group 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 group.

1.12
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 group’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.

 

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 income statement, 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 if, and only if, there is 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.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.

 

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.

1.14
Retirement benefits

The group operates defined contribution pension schemes. The assets of the schemes are held separately from those of the group in an independent administered fund. Contributions payable are charged to the profit and loss account in the year they are payable.

 

 

 

 

 

BTU HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 19 -
1.15
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.

1.16
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 leased asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is 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 judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Useful lives of property, plant and equipment

In determining appropriate depreciation rates to apply against property, plant and equipment, the director has used his knowledge and experience of both the group and the industry to asses the useful lives of each individual assets' category.

Factors relating to Key Areas of Estimation Uncertainty

The useful economic life of an asset is the period over which the asset is expected to be available for use by the group. This estimate is based on the following factors:

 

Expected usage of the asset: Assessed by reference to the asset’s expected usage capacity when compared to other companies in the industry.

Expected physical wear and tear: Dependent on operational factors such as the number of repairs and maintenance program.

 

Technical or commercial obsolescence: Arising from changes or improvements in technological advancement of similar assets available on the market.

 

Historical usage of the asset not being aligned with expectations: Arising with over- or under- consuming the asset when compared with its assumed useful economic life.

BTU HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 20 -
3
Revenue
2024
2023
£
£
Revenue analysed by class of business
Installation and maintenance
21,844,912
22,569,833
2024
2023
£
£
Other revenue
Interest income
131,334
79,393
Dividends received
2,481
2,459

The total turnover for the group for the period has been derived from its principal activities wholly undertaken in the United Kingdom.

4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Fees payable to the group's auditor for the audit of the group's financial statements
38,000
33,000
Fees payable to the group's auditor for the non-audit services of the group
9,000
14,000
Depreciation of owned property, plant and equipment
265,634
261,008
(Profit)/loss on disposal of property, plant and equipment
(7,038)
1,297
Amortisation of intangible assets
-
28,066
Share-based payments
169,300
6,772
Operating lease charges
189,000
163,085
5
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Management
6
4
1
1
Administration
66
50
-
-
Production
52
71
-
-
Total
124
125
1
1
BTU HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
5
Employees
(Continued)
- 21 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
5,992,689
5,673,242
-
0
-
0
Social security costs
606,796
598,580
-
-
Pension costs
227,270
209,242
80,000
20,000
6,826,755
6,481,064
80,000
20,000
6
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
23,099
22,646
Company pension contributions to defined contribution schemes
80,000
80,000
103,099
102,646

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).

7
Investment income
2024
2023
£
£
Interest income
Interest on bank deposits
131,334
79,393
Other income from investments
Dividends received
2,481
2,459
Total income
133,815
81,852
2024
2023
Investment income includes the following:
£
£
Dividends from financial assets measured at fair value through profit or loss
2,364
2,446
BTU HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 22 -
8
Finance costs
2024
2023
£
£
Interest on finance leases and hire purchase contracts
567
7,004
Other interest
48
492
Total finance costs
615
7,496
9
Other gains and losses
2024
2023
£
£
Fair value gains/(losses) on financial instruments
Gain/(loss) on financial assets held at fair value through profit or loss
8,744
(2,800)
Other gains/(losses)
Gain on disposal of financial assets held at fair value through profit or loss
416
1,974
9,160
(826)
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
232,036
176,482
Deferred tax
Origination and reversal of timing differences
28,788
(39,401)
Total tax charge
260,824
137,081
BTU HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
10
Taxation
(Continued)
- 23 -

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
594,473
438,894
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.52%)
148,618
98,839
Tax effect of expenses that are not deductible in determining taxable profit
74,127
29,917
Gains not taxable
(2,351)
-
0
Permanent capital allowances in excess of depreciation
11,642
48,163
Other permanent differences
-
0
115
Dividend income
-
(552)
Deferred tax
28,788
(39,401)
Taxation charge
260,824
137,081
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
151,275
151,275
BTU HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 24 -
12
Property, plant and equipment
Group
Land & buildings leasehold
Plant & machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 November 2023
543,505
45,918
98,910
654,727
873,897
2,216,957
Additions
-
0
-
0
23,333
-
0
178,747
202,080
Disposals
-
0
-
0
-
0
-
0
(14,680)
(14,680)
At 31 October 2024
543,505
45,918
122,243
654,727
1,037,964
2,404,357
Depreciation and impairment
At 1 November 2023
256,590
32,806
72,824
391,937
511,699
1,265,856
Depreciation charged in the year
52,163
9,324
7,303
72,221
124,623
265,634
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(10,953)
(10,953)
At 31 October 2024
308,753
42,130
80,127
464,158
625,369
1,520,537
Carrying amount
At 31 October 2024
234,752
3,788
42,116
190,569
412,595
883,820
At 31 October 2023
286,915
13,112
26,086
262,790
362,198
951,101
Company
Plant and machinery
Fixtures, fittings & equipment
Compuer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 November 2023
543,505
97,562
645,582
873,897
2,160,546
Additions
-
0
23,333
-
0
178,747
202,080
Disposals
-
0
-
0
-
0
(14,680)
(14,680)
At 31 October 2024
543,505
120,895
645,582
1,037,964
2,347,946
Depreciation and impairment
At 1 November 2023
256,590
71,595
383,174
511,699
1,223,058
Depreciation charged in the year
52,163
7,303
71,840
124,623
255,929
Eliminated in respect of disposals
-
0
-
0
-
0
(10,953)
(10,953)
At 31 October 2024
308,753
78,898
455,014
625,369
1,468,034
Carrying amount
At 31 October 2024
234,752
41,997
190,568
412,595
879,912
At 31 October 2023
286,915
25,967
262,408
362,198
937,488
BTU HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 25 -
13
Fixed asset investments
Group
Group
Company
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
1,833,959
1,909,034
Movements in non-current investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 November 2023
1,909,034
Disposals
(75,075)
At 31 October 2024
1,833,959
Carrying amount
At 31 October 2024
1,833,959
At 31 October 2023
1,909,034
BTU HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 26 -
14
Subsidiaries

Details of the company's subsidiaries at 31 October 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
BTU (Installation and Maintenance) Limited
UK
Installation and maintenace of electrical and mechanical services
Ordinary
100.00
Weyside Management Services Limited
UK
Dormant
Ordinary
100.00
B.T.U. (Supplies) Limited
UK
Heating and plumbing merchants
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
BTU (Installation and Maintenance) Limited
7,239,501
443,132
Weyside Management Services Limited
1,000
-
B.T.U. (Supplies) Limited
532,235
(80,204)
15
Inventories
Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
227,503
234,906
-
0
-
0
16
Trade and other receivables
Group
Group
Company
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade receivables
3,783,995
3,045,189
-
-
0
Other receivables
396,007
217,754
123,132
17,211
Prepayments and accrued income
2,049,783
2,929,762
49,779
51,326
6,229,785
6,192,705
172,911
68,537
17
Current asset investments
Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£
Listed investments
107,424
99,719
107,424
99,719
BTU HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 27 -
18
Current liabilities
Group
Group
Company
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
-
0
94,835
-
0
94,835
Trade payables
1,971,978
2,311,705
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
2,898,126
2,741,899
Corporation tax payable
232,226
176,482
40,934
18,748
Other taxation and social security
869,102
648,217
-
-
Other payables
498,325
580,877
-
0
-
0
Accruals and deferred income
1,342,963
1,158,873
16,686
19,913
4,914,594
4,970,989
2,955,746
2,875,395
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
227,270
209,242

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

20
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
167,949
139,161
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
167,949
139,161

The deferred tax liability set out above is expected to reverse in future periods and relates to accelerated capital allowances that are expected to mature within the same period.

BTU HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 28 -
21
Share-based payment transactions
Group
Number of share options
Weighted average exercise price
2024
2023
2024
2023
Number
Number
£
£
Outstanding at 1 November 2023
10,725
-
30.31
-
Granted
-
10,725
-
30.31
Outstanding at 31 October 2024
10,725
10,725
30.31
30.31
Exercisable at 31 October 2024
-
-
-
-

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

22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
75,075
75,075
75,075
75,075
23
Share premium account
Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
993
993
-
-
0
Transfer
-
-
993
-
At the end of the year
993
993
993
-
0

During the year, the share premium capital of £993 was transferred from AFM Holdings Limited to BTU Holdings Limited.

BTU HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 29 -
24
Capital redemption reserve
Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£
At the beginning and end of the year
14,242
14,242
-
0
-
0
25
Retained earnings
Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
5,486,906
5,336,368
(74,853)
-
Profit for the year
333,649
301,813
150,602
21,963
Dividends
(151,275)
(151,275)
(151,275)
(96,816)
At the end of the year
5,669,280
5,486,906
(75,526)
(74,853)
26
Operating lease commitments
Lessee

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

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£
Within one year
156,450
189,000
137,750
151,500
Between two and five years
161,000
317,449
161,000
298,750
317,450
506,449
298,750
450,250
27
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£
Acquisition of property, plant and equipment
-
74,634
-
74,634
BTU HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 30 -
28
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel, which consists of the director of the holding company and fellow directors of its subsidiaries is as follows.

2024
2023
£
£
Aggregate compensation
384,243
368,053
Other information

Rent of £106,500 (2023: £43,806) was paid to AFM Holdings (Limited) Pension Scheme regarding the investment property which is used by the group. This rent was charged on an arm's length basis and at a normal commercial rate.

 

In addition, during the year rent totalling £82,500 (2023: £82,500) was paid to AFM Limited Pension Fund Trust relating to a different property used by the group. This rent was charged on an arm's length basis and at a normal commercial rate.

29
Directors' transactions

Dividends totalling £151,275 (2023: £98,816) were paid in the year by the group in respect of shares held by the company's director.

30
Controlling party

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

31
Restatement of gross wages

In the financial year-ended 31 October 2023 of the Group, £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 Group’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 HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 31 -
32
Cash generated from group operations
2024
2023
£
£
Profit after taxation
333,649
301,813
Adjustments for:
Taxation charged
260,824
137,081
Finance costs
615
7,496
Investment income
(133,815)
(81,852)
(Gain)/loss on disposal of property, plant and equipment
(7,038)
1,297
Amortisation and impairment of intangible assets
-
28,066
Depreciation and impairment of property, plant and equipment
265,634
261,008
Gain on sale of investments
(416)
-
Other gains and losses
(8,744)
826
Equity settled share based payment expense
169,300
6,772
Movements in working capital:
Decrease/(increase) in inventories
7,403
(30,766)
Increase in trade and other receivables
(37,080)
(958,987)
(Decrease)/increase in trade and other payables
(17,304)
466,294
Cash generated from operations
833,028
139,048
33
Analysis of changes in net funds - group
1 November 2023
Cash flows
31 October 2024
£
£
£
Cash at bank and in hand
3,215,707
353,966
3,569,673
Obligations under finance leases
(94,835)
94,835
-
3,120,872
448,801
3,569,673
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