Company registration number 02671206 (England and Wales)
WINTERS ELECTRICAL SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
WINTERS ELECTRICAL SERVICES LIMITED
COMPANY INFORMATION
Directors
Mr M J Winters
Mr C J Rothery
Mr N C Browne
(Appointed 1 November 2024)
Mr A J Ceely
(Appointed 1 November 2024)
Secretary
Mrs S J Gomes
Company number
02671206
Registered office
Henson House
Henson Road
Three Bridges
Crawley
West Sussex
England
RH10 1EP
Auditor
James Todd and Co Limited
Drayton House
Drayton Lane
Chichester
West Sussex
England
PO20 2EW
WINTERS ELECTRICAL SERVICES LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 23
WINTERS ELECTRICAL SERVICES 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 directors are very pleased with the performance of the company during financial year given the difficult economic climate. The company has seen an increase in gross profit margin (24% from 14% the year before) at a time where labour, materials and staffing are ever more expensive and harder to resource. This has tied in with the company seeking to avoid less profitable and potentially loss-making work, and focusing on projects where the company’s high standards and attention to detail are merited and rewarded.

 

The company’s balance sheet continues to remain strong, with a closing net asset value of £2,607,606 (2023: £2,101,451) for the year and a liquidity ratio of 2.38 at the year end, compared to 3.95 the previous year.

 

For the coming year, the company has a good quota of work and committed projects, so the directors anticipate that the company will return to similar levels of profitability.

Principal risks and uncertainties

There continues to be stiff competition within the industry, with some willing to undertake work at very low margins. The company has always prided itself on the quality of the work it delivers, and the directors believe that a combination of this and competitive pricing will see the company mitigate this risk. The company is also more selective of those it works with, ensuring they best fit the company’s profile and capabilities.

 

The feeling is that, although the costs of procurement have increased, the supply of goods has now stabilised post-pandemic, and so this is now a much lesser threat.

Outlook

There has been recent easing in inflation, movement in the housing market and the economic horizon is looking at lot better, so the directors are confident that the company will be able to make the most of the restructure and continue to be as successful as it always has been.

 

On behalf of the board

Mr M J Winters
Director
2 May 2025
WINTERS ELECTRICAL SERVICES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 2 -

The directors present their annual report and financial statements for the year ended 31 October 2024.

Principal activities

The principal activity of the company continued to be that of electrical contractors.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £571,360. The directors do not recommend payment of a further dividend.

Directors

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

Mr M J Winters
Mr C J Rothery
Mr N C Browne
(Appointed 1 November 2024)
Mr A J Ceely
(Appointed 1 November 2024)
Auditor

In accordance with the company's articles, a resolution proposing that James Todd and Co Limited be reappointed as auditor of the company will be put at a General Meeting.

Statement of directors' responsibilities

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.

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.

WINTERS ELECTRICAL SERVICES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 3 -
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 M J Winters
Director
2 May 2025
WINTERS ELECTRICAL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WINTERS ELECTRICAL SERVICES LIMITED
- 4 -
Opinion

We have audited the financial statements of Winters Electrical Services Limited (the 'company') for the year ended 31 October 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, 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:

WINTERS ELECTRICAL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WINTERS ELECTRICAL SERVICES LIMITED (CONTINUED)
- 5 -
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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

 

WINTERS ELECTRICAL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WINTERS ELECTRICAL SERVICES LIMITED (CONTINUED)
- 6 -

We have identified the following laws and regulations as being of significance in the context of the company:

 

 

The company may also be subject to regulations and conditions set out in current memberships and subscriptions, but these are not deemed to be of significance to the audit and the going concern of the company.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

 

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

 

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

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.

Oliver Read FCCA ACA (Senior Statutory Auditor)
For and on behalf of James Todd and Co Limited, Statutory Auditor
Chartered Accountants
Drayton House
Drayton Lane
Chichester
West Sussex
PO20 2EW
England
2 May 2025
WINTERS ELECTRICAL SERVICES LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
11,718,797
13,823,564
Cost of sales
(8,930,857)
(11,916,358)
Gross profit
2,787,940
1,907,206
Administrative expenses
(1,648,333)
(1,760,398)
Operating profit
6
1,139,607
146,808
Interest receivable and similar income
7
21,365
30,982
Profit before taxation
1,160,972
177,790
Tax on profit
8
(83,457)
32,822
Profit for the financial year
1,077,515
210,612

The profit and loss account has been prepared on the basis that all operations are continuing operations.

WINTERS ELECTRICAL SERVICES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024
- 8 -
2024
2023
£
£
Profit for the year
1,077,515
210,612
Other comprehensive income
-
-
Total comprehensive income for the year
1,077,515
210,612
WINTERS ELECTRICAL SERVICES LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2024
31 October 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
8,058
23,832
Investments
11
100
100
8,158
23,932
Current assets
Debtors
12
3,066,421
2,282,870
Cash at bank and in hand
1,413,396
498,246
4,479,817
2,781,116
Creditors: amounts falling due within one year
14
(1,878,870)
(703,597)
Net current assets
2,600,947
2,077,519
Total assets less current liabilities
2,609,105
2,101,451
Provisions for liabilities
Deferred tax liability
15
1,499
-
0
(1,499)
-
Net assets
2,607,606
2,101,451
Capital and reserves
Called up share capital
16
1,000
1,000
Profit and loss reserves
2,606,606
2,100,451
Total equity
2,607,606
2,101,451

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 2 May 2025 and are signed on its behalf by:
Mr M J Winters
Director
Company registration number 02671206 (England and Wales)
WINTERS ELECTRICAL SERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 November 2022
1,000
2,416,983
2,417,983
Year ended 31 October 2023:
Profit and total comprehensive income
-
210,612
210,612
Dividends
9
-
(527,144)
(527,144)
Balance at 31 October 2023
1,000
2,100,451
2,101,451
Year ended 31 October 2024:
Profit and total comprehensive income
-
1,077,515
1,077,515
Dividends
9
-
(571,360)
(571,360)
Balance at 31 October 2024
1,000
2,606,606
2,607,606
WINTERS ELECTRICAL SERVICES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
21
1,432,425
(183,269)
Income taxes refunded
32,822
257,517
Net cash inflow from operating activities
1,465,247
74,248
Investing activities
Proceeds from disposal of tangible fixed assets
(102)
-
0
Repayment of loans
-
0
(2,607)
Interest received
21,365
30,982
Net cash generated from investing activities
21,263
28,375
Financing activities
Dividends paid
(571,360)
(527,144)
Net cash used in financing activities
(571,360)
(527,144)
Net increase/(decrease) in cash and cash equivalents
915,150
(424,521)
Cash and cash equivalents at beginning of year
498,246
922,767
Cash and cash equivalents at end of year
1,413,396
498,246
WINTERS ELECTRICAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 12 -
1
Accounting policies
Company information

Winters Electrical Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is Henson House, Henson Road, Three Bridges, Crawley, West Sussex, England, RH10 1EP.

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.

 

When assessing the company's ability to continue as a going concern, the directors have taken into account the current economic downturn, the war in the Ukraine and the continued supply problems resulting from Brexit and the Coronavirus pandemic. The directors are of the opinion that these ongoing events should not affect the company's ability to trade and continue as a going concern.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from contracts for the provision of professional 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 it is probable will be recovered.

1.4
Tangible fixed assets

Tangible fixed assets 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:

Leasehold improvements
10% on cost
Fixtures and fittings
25% reducing balance
Computers
25% on cost
WINTERS ELECTRICAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 13 -

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 credited or charged to profit or loss.

1.5
Fixed asset investments

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

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

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

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

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

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 (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) 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 (or cash-generating unit) 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 (or cash-generating unit) 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.

1.7
Cash and cash equivalents

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

WINTERS ELECTRICAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 14 -
1.8
Financial instruments

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

 

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

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

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

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

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

 

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

 

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

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

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.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

WINTERS ELECTRICAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 16 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

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

1.11
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 fixed 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.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Foreign exchange

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

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Electrical contractors
11,718,797
13,823,564
WINTERS ELECTRICAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
3
Turnover and other revenue
(Continued)
- 17 -
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
11,718,797
13,823,564
2024
2023
£
£
Other revenue
Interest income
21,365
30,982
4
Employees

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

2024
2023
Number
Number
Direct labour
14
15
Administration
25
24
Total
39
39

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,113,919
1,936,598
Social security costs
5,768
6,445
Pension costs
227,933
83,963
2,347,620
2,027,006
5
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
60,000
62,800
Company pension contributions to defined contribution schemes
74,800
8,133
134,800
70,933
WINTERS ELECTRICAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 18 -
6
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
12,000
12,000
Depreciation of owned tangible fixed assets
11,230
11,529
Loss on disposal of tangible fixed assets
4,646
-
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
21,365
28,375
Other interest income
-
0
2,607
Total income
21,365
30,982
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
21,365
30,982
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
81,958
(32,822)
Deferred tax
Origination and reversal of timing differences
1,499
-
0
Total tax charge/(credit)
83,457
(32,822)
WINTERS ELECTRICAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
8
Taxation
(Continued)
- 19 -

The actual charge/(credit) 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
1,160,972
177,790
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
290,243
44,448
Tax effect of expenses that are not deductible in determining taxable profit
26,278
12,039
Tax effect of utilisation of tax losses not previously recognised
(147,532)
-
0
Unutilised tax losses carried forward
-
0
(67,454)
Change in unrecognised deferred tax assets
-
0
8,223
Permanent capital allowances in excess of depreciation
1,499
2,744
Research and development tax credit
(87,031)
(32,822)
Taxation charge/(credit) for the year
83,457
(32,822)
9
Dividends
2024
2023
£
£
Final paid
571,360
527,144
WINTERS ELECTRICAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 20 -
10
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 November 2023
257,156
300,407
257,059
814,622
Disposals
-
0
(2,758)
(171,573)
(174,331)
At 31 October 2024
257,156
297,649
85,486
640,291
Depreciation and impairment
At 1 November 2023
253,660
295,635
241,495
790,790
Depreciation charged in the year
816
623
9,791
11,230
Eliminated in respect of disposals
-
0
(477)
(169,310)
(169,787)
At 31 October 2024
254,476
295,781
81,976
632,233
Carrying amount
At 31 October 2024
2,680
1,868
3,510
8,058
At 31 October 2023
3,496
4,772
15,564
23,832
11
Fixed asset investments
2024
2023
£
£
Unlisted investments
100
100
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,711,873
1,840,680
Corporation tax recoverable
-
0
32,822
Other debtors
312,211
409,368
Prepayments and accrued income
42,337
-
0
3,066,421
2,282,870
WINTERS ELECTRICAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 21 -
13
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
2,973,357
2,250,048
Equity instruments measured at cost less impairment
100
100
Carrying amount of financial liabilities
Measured at amortised cost
1,743,886
648,941
14
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
1,589,427
603,467
Corporation tax
81,958
-
0
Other taxation and social security
53,026
54,656
Accruals and deferred income
154,459
45,474
1,878,870
703,597

The company's bank borrowing facilities are secured up to £500,000 by Henson House Limited, a company under common control and the landlord to the company.

15
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
1,499
-
2024
Movements in the year:
£
Liability at 1 November 2023
-
Charge to profit or loss
1,499
Liability at 31 October 2024
1,499
WINTERS ELECTRICAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 22 -
16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
1,000
1,000
1,000
1,000
17
Operating lease commitments

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
£
£
Within one year
153,606
145,222
Between two and five years
71,478
-
0
225,084
145,222
18
Related party transactions

Henson House Limited

Henson House Limited is a company under common control. During the year the company was charged rent of £132,000 (2023: £120,000) in accordance with an operating lease agreement with Henson House Limited. The balance outstanding at the year end was £24,000 (2023: £Nil). The transactions were on commercial basis and equivalent to arm's length.

 

Henson House Limited also provides security over the company's borrowing facilities up to £500,000.

 

CMGC Limited

CMGC Limited is a shareholder of the company and under common control. The company paid aggregate dividends of £Nil (2023: £249,986) and also incurred and paid management charges of £Nil (2023: £367,805) to CMGC Limited during the year. The balance outstanding to the company at the year end was £Nil (2023: £Nil).

19
Directors' transactions

Dividends totalling £571,360 (2023 - £277,158) were paid in the year in respect of shares held by the company's directors.

During the year the company made an advance of £Nil (2023: £Nil) to one of its directors under a short term loan agreement. The company charged interest of £Nil (2023: £2,607) in respect of this loan and received repayments of £Nil (2023: £Nil). The amount outstanding to the company was £206,024 (2023: £206,024) at the year end.

20
Ultimate controlling party

The company's ultimate controlling party is the director M J Winters who is the majority shareholder.

WINTERS ELECTRICAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 23 -
21
Cash generated from/(absorbed by) operations
2024
2023
£
£
Profit after taxation
1,077,515
210,612
Adjustments for:
Taxation charged/(credited)
83,457
(32,822)
Investment income
(21,365)
(30,982)
Loss on disposal of tangible fixed assets
4,646
-
Depreciation and impairment of tangible fixed assets
11,230
11,529
Movements in working capital:
(Increase)/decrease in debtors
(816,373)
2,682,137
Increase/(decrease) in creditors
1,093,315
(3,023,743)
Cash generated from/(absorbed by) operations
1,432,425
(183,269)
22
Analysis of changes in net funds
1 November 2023
Cash flows
31 October 2024
£
£
£
Cash at bank and in hand
498,246
915,150
1,413,396
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