IRIS Accounts Production v25.1.0.734 05204730 Board of Directors Board of Directors 1.11.23 31.10.24 31.10.24 Medium entities mechanical, plumbing and air conditioning engineers. true false true true false false true false These accounts have been prepared in accordance with the provisions applicable to companies subject to the medium-sized companies regime. Ordinary 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh052047302023-10-31052047302024-10-31052047302023-11-012024-10-31052047302022-10-31052047302022-11-012023-10-31052047302023-10-3105204730ns15:EnglandWales2023-11-012024-10-3105204730ns14:PoundSterling2023-11-012024-10-3105204730ns10:Director12023-11-012024-10-3105204730ns10:Director22023-11-012024-10-3105204730ns10:PrivateLimitedCompanyLtd2023-11-012024-10-3105204730ns10:MediumEntities2023-11-012024-10-3105204730ns10:Audited2023-11-012024-10-3105204730ns10:Medium-sizedCompaniesRegimeForDirectorsReport2023-11-012024-10-3105204730ns10:Medium-sizedCompaniesRegimeForAccounts2023-11-012024-10-3105204730ns10:FullAccounts2023-11-012024-10-3105204730ns10:OrdinaryShareClass12023-11-012024-10-3105204730ns10:Director32023-11-012024-10-3105204730ns10:Director42023-11-012024-10-3105204730ns10:CompanySecretary12023-11-012024-10-3105204730ns10:RegisteredOffice2023-11-012024-10-3105204730ns5:CurrentFinancialInstruments2024-10-3105204730ns5:CurrentFinancialInstruments2023-10-3105204730ns5:ShareCapital2024-10-3105204730ns5:ShareCapital2023-10-3105204730ns5:RetainedEarningsAccumulatedLosses2024-10-3105204730ns5:RetainedEarningsAccumulatedLosses2023-10-3105204730ns5:ShareCapital2022-10-3105204730ns5:RetainedEarningsAccumulatedLosses2022-10-3105204730ns5:RetainedEarningsAccumulatedLosses2022-11-012023-10-3105204730ns5:RetainedEarningsAccumulatedLosses2023-11-012024-10-3105204730ns5:PlantEquipmentOtherAssetsUnderOperatingLeases2023-11-012024-10-3105204730ns5:PlantEquipmentOtherAssetsUnderOperatingLeases2022-11-012023-10-3105204730ns5:OwnedAssets2023-11-012024-10-3105204730ns5:OwnedAssets2022-11-012023-10-3105204730ns10:OrdinaryShareClass12022-11-012023-10-3105204730ns5:MotorVehicles2023-10-3105204730ns5:ComputerEquipment2023-10-3105204730ns5:MotorVehicles2023-11-012024-10-3105204730ns5:ComputerEquipment2023-11-012024-10-3105204730ns5:MotorVehicles2024-10-3105204730ns5:ComputerEquipment2024-10-3105204730ns5:MotorVehicles2023-10-3105204730ns5:ComputerEquipment2023-10-3105204730ns5:WithinOneYearns5:CurrentFinancialInstruments2024-10-3105204730ns5:WithinOneYearns5:CurrentFinancialInstruments2023-10-3105204730ns10:OrdinaryShareClass12024-10-3105204730ns5:RetainedEarningsAccumulatedLosses2023-10-3105204730ns5:OtherRelatedParties2023-11-012024-10-3105204730ns5:OtherRelatedParties2022-11-012023-10-3105204730ns5:OtherRelatedParties2024-10-3105204730ns5:OtherRelatedParties2023-10-31
REGISTERED NUMBER: 05204730 (England and Wales)






















Strategic Report,

Report of the Directors and

Financial Statements

for the Year Ended 31 October 2024

for

Halsall Mechanical Limited

Halsall Mechanical Limited (Registered number: 05204730)






Contents of the Financial Statements
for the Year Ended 31 October 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Statement of Comprehensive Income 6

Balance Sheet 7

Statement of Changes in Equity 8

Cash Flow Statement 9

Notes to the Cash Flow Statement 10

Notes to the Financial Statements 11


Halsall Mechanical Limited

Company Information
for the Year Ended 31 October 2024







DIRECTORS: A J Wright
S Halsall
M A Norton
A P Parker





SECRETARY: M A Norton





REGISTERED OFFICE: The Graduation Centre
Progress Drive
Cannock
Staffordshire
WS11 0JF





REGISTERED NUMBER: 05204730 (England and Wales)





AUDITORS: Wright Vigar Limited
Statutory Auditors
Chartered Accountants & Business Advisers
Chancery Court
34 West Street
Retford
Nottinghamshire
DN22 6ES

Halsall Mechanical Limited (Registered number: 05204730)

Strategic Report
for the Year Ended 31 October 2024

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

The principal activity of the company in the year under review was that of mechanical, plumbing and air conditioning engineers.

REVIEW OF BUSINESS
The directors are pleased to report that, despite challenging market and trading conditions, the company, has achieved strong financial results for the year to 31 October 2024.

The company enters the new financial year where future prospects remain positive, as it continues to report strong order books for the foreseeable future as a result of retaining strong links with long-term customers, which has been based on reputation and quality of service.

We operate from our Cannock Head Office with works being generated across a number of areas in the commercial sector, an approach that has offered some protection against any downturn in activity in these markets.

Halsall Mechanical's reputation has continued to attract enquiries from both existing and many new clients and as such the company is working closely with many large organisations in relation to future opportunities.

Turnover in the year has decreased to £18m, from £23m in the prior year. Gross profit for the year is £1.4m (2023: £2.5m)
Operating profit before tax stands at £200k (2023: £1.1m)
The Company's Net Assets at the year-end were £1.7m (2023: £1.5m)

During the year, the Company incurred irrecoverable contract costs of £600k in relation to Readie Construction Limited, who entered into administration on the 18th February 2024. These costs are fully recognised in the current period of accounts with no current expectation that any of the costs will be recoverable.

The directors consider, given challenging market conditions and the unforeseen impact of the Readie Construction administration, that the results for financial year ended 31 October 2024 to be satisfactory and as such take this opportunity to formally convey their most sincere appreciation to all members of staff for their continued loyalty and commitment to the company.

PRINCIPAL RISKS AND UNCERTAINTIES
The directors continue to monitor the level of enquiries, contracts awarded, turnover, gross profit and cash resources, which they consider all to be key performance indicators.

The company is exposed to the usual business risks which the directors believe need to be monitored closely, especially during periods of economic uncertainty. The directors continually assess markets and contracts to identify any changes within the business sector in an attempt to mitigate the impact of any future general risk within the sector impacting upon the company.

Additional to the general business risk within the market place the company is exposed to price risks, credit risks and cash flow associated with selling on credit. These risks are managed through tight credit control procedures, including credit assessments of customers.

ON BEHALF OF THE BOARD:





M A Norton - Director


24 April 2025

Halsall Mechanical Limited (Registered number: 05204730)

Report of the Directors
for the Year Ended 31 October 2024

The directors present their report with the financial statements of the company for the year ended 31 October 2024.

DIVIDENDS
No dividends will be distributed for the year ended 31 October 2024.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 November 2023 to the date of this report.

A J Wright
S Halsall
M A Norton
A P Parker

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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 AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:





M A Norton - Director


24 April 2025

Report of the Independent Auditors to the Members of
Halsall Mechanical Limited

Opinion
We have audited the financial statements of Halsall Mechanical Limited (the 'company') for the year ended 31 October 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of 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:
-give a true and fair view of the state of the company's affairs as at 31 October 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

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 Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Report of the Independent Auditors to the Members of
Halsall Mechanical Limited


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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.

Auditors' 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 a Report of the Auditors 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:

Our work is performed to include an assessment of the susceptibility of the entity's financial statements to material misstatement, including the risk of fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

In identifying and assessing risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
- We plan our work to gain an understanding of the significant laws and regulations that are of significance to the
entity and the sector in which they operate. We perform our work to ensure that the entity is complying with its
legal and regulatory framework.
- We obtained an understanding of how the company is complying with those legal and regulatory frameworks by
making inquiries to the management and people charged with governance.

We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
- Substantive procedures performed in accordance with the ISAs (UK).
- Challenging assumptions and judgments made by management in its significant accounting estimates.
- Identifying and testing journal entries, in particular material journal entries and an assessment of year end
journals.
- Assessing the extent of compliance with the relevant laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.




Matthew Chadwick BA (Hons) FCA (Senior Statutory Auditor)
for and on behalf of Wright Vigar Limited
Statutory Auditors
Chartered Accountants & Business Advisers
Chancery Court
34 West Street
Retford
Nottinghamshire
DN22 6ES

24 April 2025

Halsall Mechanical Limited (Registered number: 05204730)

Statement of Comprehensive
Income
for the Year Ended 31 October 2024

2024 2023
Notes £    £   

TURNOVER 18,150,400 23,048,637

Cost of sales 16,687,165 20,592,068
GROSS PROFIT 1,463,235 2,456,569

Administrative expenses 1,251,318 1,351,784
OPERATING PROFIT 4 211,917 1,104,785

Interest receivable and similar income 227 -
PROFIT BEFORE TAXATION 212,144 1,104,785

Tax on profit 5 58,362 256,899
PROFIT FOR THE FINANCIAL YEAR 153,782 847,886

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

153,782

847,886

Halsall Mechanical Limited (Registered number: 05204730)

Balance Sheet
31 October 2024

2024 2023
Notes £    £    £   
FIXED ASSETS
Tangible assets 7 176,346 268,784

CURRENT ASSETS
Debtors 8 4,989,340 6,020,926
Cash at bank and in hand 325,962 787,803
5,315,302 6,808,729
CREDITORS
Amounts falling due within one year 9 3,792,817 5,532,464
NET CURRENT ASSETS 1,522,485 1,276,265
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,698,831

1,545,049

CAPITAL AND RESERVES
Called up share capital 10 4 4
Retained earnings 11 1,698,827 1,545,045
SHAREHOLDERS' FUNDS 1,698,831 1,545,049

The financial statements were approved by the Board of Directors and authorised for issue on 24 April 2025 and were signed on its behalf by:




A J Wright - Director



M A Norton - Director


Halsall Mechanical Limited (Registered number: 05204730)

Statement of Changes in Equity
for the Year Ended 31 October 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 November 2022 4 1,447,159 1,447,163

Changes in equity
Dividends - (750,000 ) (750,000 )
Total comprehensive income - 847,886 847,886
Balance at 31 October 2023 4 1,545,045 1,545,049

Changes in equity
Total comprehensive income - 153,782 153,782
Balance at 31 October 2024 4 1,698,827 1,698,831

Halsall Mechanical Limited (Registered number: 05204730)

Cash Flow Statement
for the Year Ended 31 October 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 266,505 581,807
Tax paid (256,859 ) (227,718 )
Net cash from operating activities 9,646 354,089

Cash flows from investing activities
Purchase of tangible fixed assets - (107,263 )
Sale of tangible fixed assets 28,286 16,000
Interest received 227 -
Net cash from investing activities 28,513 (91,263 )

Cash flows from financing activities
Amount introduced by directors - 750,000
Amount withdrawn by directors (500,000 ) (761,601 )
Equity dividends paid - (750,000 )
Net cash from financing activities (500,000 ) (761,601 )

Decrease in cash and cash equivalents (461,841 ) (498,775 )
Cash and cash equivalents at beginning
of year

2

787,803

1,286,578

Cash and cash equivalents at end of year 2 325,962 787,803

Halsall Mechanical Limited (Registered number: 05204730)

Notes to the Cash Flow Statement
for the Year Ended 31 October 2024

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024 2023
£    £   
Profit before taxation 212,144 1,104,785
Depreciation charges 58,512 89,254
Loss on disposal of fixed assets 5,640 5,809
Finance income (227 ) -
276,069 1,199,848
Decrease in trade and other debtors 1,043,662 2,507,722
Decrease in trade and other creditors (1,053,226 ) (3,125,763 )
Cash generated from operations 266,505 581,807

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 October 2024
31.10.24 1.11.23
£    £   
Cash and cash equivalents 325,962 787,803
Year ended 31 October 2023
31.10.23 1.11.22
£    £   
Cash and cash equivalents 787,803 1,286,578


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.11.23 Cash flow At 31.10.24
£    £    £   
Net cash
Cash at bank and in hand 787,803 (461,841 ) 325,962
787,803 (461,841 ) 325,962
Total 787,803 (461,841 ) 325,962

Halsall Mechanical Limited (Registered number: 05204730)

Notes to the Financial Statements
for the Year Ended 31 October 2024

1. STATUTORY INFORMATION

Halsall Mechanical Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

Long term contracts
When management are able to reliably measure the outcome of a long term contract, then the revenue is recognised by reference to the stage of completion of each contract at the end of the reporting period (referred to as the percentage of completion method).

FRS 102 states that the outcome of a transaction can be estimated reliably when all the following conditions are satisfied:
- the amount of revenue can be measured reliably;
- it is probable that the economic benefits associated with the transaction will flow to the entity;
- the stage of completion of the transaction at the end of the reporting period can be measured reliably; and
- the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.

Turnover
Turnover represents amounts chargeable, net of value added tax, in respect of the sale of goods and services to customers. Turnover is inclusive of accrued income in respect of work undertaken during the year which at the balance sheet date has not been billed in accordance with FRS102.

Turnover recognised in this manner is based upon an assessment of the fair value of the contracts at the balance sheet date as a proportion of the total value of the engagement.

Tangible fixed assets
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Motor vehicles- 25% on reducing balance
Office equipment- 15% on reducing balance

Halsall Mechanical Limited (Registered number: 05204730)

Notes to the Financial Statements - continued
for the Year Ended 31 October 2024

2. ACCOUNTING POLICIES - continued

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.

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.

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.

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.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Halsall Mechanical Limited (Registered number: 05204730)

Notes to the Financial Statements - continued
for the Year Ended 31 October 2024

2. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Amounts recoverable on contracts
The amount by which recorded turnover on long term contracts is in excess of payments on account is classified as amounts recoverable on contracts under debtors.

Payments received on account
The balance of payments on account in excess of amounts offset against amounts recoverable on contracts and long-term contract balances is classified as payments received on account under creditors, where applicable.

3. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 2,399,457 2,367,463
Social security costs 241,143 280,871
Other pension costs 65,583 64,409
2,706,183 2,712,743

The average number of employees during the year was as follows:
2024 2023

Administration and support 13 14
Production 26 26
39 40

2024 2023
£    £   
Directors' remuneration 151,246 209,774
Directors' pension contributions to money purchase schemes 2,806 2,837

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 1 1

4. OPERATING PROFIT

The operating profit is stated after charging:

2024 2023
£    £   
Hire of plant and machinery 31,200 55,906
Depreciation - owned assets 58,512 89,255
Loss on disposal of fixed assets 5,640 5,809
Auditors' remuneration 13,750 13,000

Halsall Mechanical Limited (Registered number: 05204730)

Notes to the Financial Statements - continued
for the Year Ended 31 October 2024

5. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 58,362 256,899
Tax on profit 58,362 256,899

UK corporation tax has been charged at 25% (2023 - 25%).

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit before tax 212,144 1,104,785
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 25%)

53,036

276,196

Effects of:
Expenses not deductible for tax purposes (2,421 ) (4,851 )
Depreciation in excess of capital allowances 7,747 13,872
Movement in tax rates - (28,318 )
Total tax charge 58,362 256,899

6. DIVIDENDS
2024 2023
£    £   
Ordinary shares of £1 each
Interim - 750,000

7. TANGIBLE FIXED ASSETS
Motor Office
vehicles equipment Totals
£    £    £   
COST
At 1 November 2023 627,292 2,798 630,090
Disposals (108,077 ) - (108,077 )
At 31 October 2024 519,215 2,798 522,013
DEPRECIATION
At 1 November 2023 360,530 776 361,306
Charge for year 58,208 304 58,512
Eliminated on disposal (74,151 ) - (74,151 )
At 31 October 2024 344,587 1,080 345,667
NET BOOK VALUE
At 31 October 2024 174,628 1,718 176,346
At 31 October 2023 266,762 2,022 268,784

Halsall Mechanical Limited (Registered number: 05204730)

Notes to the Financial Statements - continued
for the Year Ended 31 October 2024

8. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 4,187,306 4,416,909
Other debtors 789,958 1,232,669
Directors' current accounts 12,076 -
VAT - 371,348
4,989,340 6,020,926

9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade creditors 3,019,295 3,699,459
Tax 58,402 256,899
Social security and other taxes 107,142 103,858
VAT 23,272 -
Other creditors 328,207 728,575
Directors' current accounts 242,749 730,673
Accrued expenses 13,750 13,000
3,792,817 5,532,464

10. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
4 Ordinary £1 4 4

11. RESERVES
Retained
earnings
£   

At 1 November 2023 1,545,045
Profit for the year 153,782
At 31 October 2024 1,698,827

12. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances to a director subsisted during the year ended 31 October 2024:


Balance at 1
November 2023
Amount
advanced
Balance at 31
October 2024
£££

Director(237,925)250,00012,075

Total(237,925)250,00012,075

The loan is unsecured, interest free and repayable on demand.

13. RELATED PARTY DISCLOSURES

The below outstanding balances were interest free and unsecured.

Halsall Mechanical Limited (Registered number: 05204730)

Notes to the Financial Statements - continued
for the Year Ended 31 October 2024

13. RELATED PARTY DISCLOSURES - continued

Other related parties
2024 2023
£    £   
Sales 18,624,057 23,088,124
Purchases 121,437 135,848
Amount due from related parties 4,312,237 3,919,930
Amount due to related parties 493,200 1,025,823