Registration number:
Easy Heat Systems Limited
for the Year Ended 30 April 2024
Easy Heat Systems Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Consolidated Statement of Income and Retained Earnings |
|
Consolidated Balance Sheet |
|
Balance Sheet |
|
Consolidated Statement of Cash Flows |
|
Statement of Cash Flows |
|
Notes to the Financial Statements |
Easy Heat Systems Limited
Company Information
Directors |
Mr D McDermott Mr W McDermott Mr J McDermott Mr I Muir |
Registered office |
|
Auditors |
|
Easy Heat Systems Limited
Strategic Report for the Year Ended 30 April 2024
The directors present their strategic report for the year ended 30 April 2024.
Principal activity
Our company's core operations revolve around providing a comprehensive range of services encompassing building, mechanical, electrical, engineering, fire safety, and facility management solutions. Additionally, we maintain a substantial property portfolio comprising both commercial and residential properties, along with various medium-term business investments.
Fair review of the business
The fiscal landscape of 2023/24 presented formidable challenges, marked notably by significant inflationary pressures and uncertainty surrounding investments in both public and private sectors. A significant proportion of our revenue is generated from public contracts supported by government incentives, as a direct result of the political landscape during the financial year these projects were all placed on hold which led to a significant reduction in turnover.
Our turnover experienced a significant decrease to £6.77m (from £14.57m in 2023), our net profits before tax were also reduced. While a decrease was forecast in 2023, this was compounded by the political landscape. Our key during this financial year was to monitor costs and ensure that we remained profitable. This achievement was made possible through a blend of operational efficiency enhancements and strategic renegotiations of contracts within our supply chain.
Operationally, we have excelled, evidenced by yet another robust year in terms of health and safety performance, boasting an Accident Frequency Rate of 0.00, consistent with the previous year.
We remain committed to reinvesting our earnings back into the business, primarily through property acquisitions and meticulously selected investments. This strategic approach necessitated a short-term increase in financing during the period, the company’s balance sheet remains strong, showing a slight increase to £25.3m compared to £24.39m in 2023. Several investments the company has made over the past few years are expected to show significant returns in 2025/26.
Our proactive approach to business development has borne fruit, with a robust order book comprising several major projects and our mid-term investment portfolio showing excellent forecasted returns, expected to far outperform our initial expectations with initial returns expected in early 2025.
The company's key financial and other performance indicators during the year were as follows:
Unit |
2024 |
2023 |
|
Revenue |
£ |
6,771,000 |
14,577,394 |
Gross profit |
% |
26 |
34 |
Profit before taxation |
£ |
500,008 |
3,167,086 |
Total Equity |
£ |
25,322,016 |
24,391,594 |
During the period the company purchased the entire share capital of E-Type Fabs Limited for the nominal fee of £1.
The company's prinicpal activity is bespoke restoration and maintenance of motor vehicles.
The company's key financial and other performance indicators from acquisition were as follows:
Easy Heat Systems Limited
Strategic Report for the Year Ended 30 April 2024
Unit |
2024 |
|
Revenue |
£ |
1,055,734 |
Gross loss |
% |
178 |
Loss before taxation |
£ |
(1,632,391) |
Total Equity |
£ |
(2,092,027) |
Principal risks and uncertainties
It is our company's steadfast policy to maintain a vigilant and proactive stance in evaluating and managing risks inherent in the operation of construction projects at every stage, from tendering to project completion.
The Board is acutely cognizant of the imperative to mitigate risks associated with securing new contracts, engaging in joint ventures, acquiring businesses, and making strategic investments. To this end, our company has instituted rigorous protocols for managing exposure within defined opportunities, underpinned by a robust risk management framework that permeates all facets of our operations, encompassing:
Building Risk: Each year, we engage in the bidding process for a multitude of contracts on a discerning basis. Our tendering procedures adhere to stringent processes for estimating, identifying, and assessing risks, with thorough reviews conducted before submission.
Delivery Risk: The execution of contract works is meticulously controlled and managed through our operational structures, with paramount consideration for health and safety imperatives. Our procedural framework entails regular reviews of practical issues, costs, and forecasted revenues.
Delivery Risk: The execution of contract works is meticulously controlled and managed through our operational structures, with paramount consideration for health and safety imperatives. Our procedural framework entails regular reviews of practical issues, costs, and forecasted revenues.
Joint Venture Risk: Joint ventures are forged strategically to fortify the quality of our bids and enhance the prospects of successfully delivering contracts. The Board assumes responsibility for the meticulous selection of joint venture partners, ensuring alignment with our organizational objectives and values.
Approved and authorised by the
......................................... |
......................................... |
Easy Heat Systems Limited
Directors' Report for the Year Ended 30 April 2024
The directors present their report and the for the year ended 30 April 2024.
Directors of the group
The directors who held office during the year were as follows:
Financial instruments
Objectives and policies
The company has adopted the disclosure and presentational requirements of FRS 102. When a financial asset or liability is disclosed initially it is measured at its fair value plus or minus transaction costs. The company regularly monitors its exposure to risks including pricing, credit, liquidity and cash flow.
Price risk, credit risk, liquidity risk and cash flow risk
The company has tightened up controls over collection of trade debtors and has agreed payment terms with its suppliers.
The company is satisfied with the level of cash flow being maintained after taking into consideration the timing aspect of debtor recoverability and the payment of trade creditors and other business expenses.
The bank is currently satisfied with the company's financial performance and the directors do not consider there to be any risks of their facilities being withdrawn. The company's deposits are all in place with major UK financial institutions which are regulated by the Financial Conduct Authority.
Credit Risk - The company has a robust procedure to assess the credit risk applicable to customers, both new and ongoing.
Liquidity Risk - Liquidity risk reflects the risk that the company will have insufficient reserves to meet its financial liabilities as they fall due. The Board's objective is to ensure adequate funding is available within the company to financeits business although limited use is made of hire purchase finance and banking facilities.
Environmental matters
The company is in the process of developing a Corporate and Social Responsibility policy and the directors are fully aware that it not only has a responsibility for all of its employees’ wellbeing but also that of the environment and community as a whole.
Social and community issues
The company's policy is to consult and discuss with employees at meetings matters likely to affect employees' interests.
Information or matters of concern to employees are also communicated through email bulletins and team briefings.
Easy Heat Systems Limited
Directors' Report for the Year Ended 30 April 2024
Future developments
The company intends to continue to focus on its core activities it will continue to invests in its staff and systems toensure it is able to provide excellent levels of service to its customers across the country.
Research and development
We are a leading multi discplinary heating solutions company that specialises in a range of disciplines, including renewable energy, fire safety and energy efficiency. We seek to achieve scientific and technologial advancements where possible.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Reappointment of auditors
In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Morris & Young, Statutory Auditor as auditors of the company is to be proposed at the forthcoming Annual General Meeting.
Approved and authorised by the
......................................... |
......................................... |
Easy Heat Systems Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Easy Heat Systems Limited
Independent Auditor's Report to the Members of Easy Heat Systems Limited
Opinion
We have audited the financial statements of Easy Heat Systems Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2024, which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Cash Flows, Statement of Cash Flows, and 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 group's and the parent company's affairs as at 30 April 2024 and of the group's loss 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 auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Easy Heat Systems Limited
Independent Auditor's Report to the Members of Easy Heat Systems Limited
Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Directors' Report.
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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company 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. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 6], 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 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:
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Easy Heat Systems Limited
Independent Auditor's Report to the Members of Easy Heat Systems Limited
Use of our report
This report is made solely to the group and parent 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 group and parent 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 group and the parent company's members as a body, for our audit work, for this report, or for the opinions we have formed.
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For and on behalf of
Chartered Accountants
6 Atholl Crescent
PH1 5JN
Easy Heat Systems Limited
Consolidated Statement of Income and Retained Earnings for the Year Ended 30 April 2024
Note |
2024 |
2023 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross (loss)/profit |
( |
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating (loss)/profit |
( |
|
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar charges |
( |
( |
|
(375,420) |
(194,964) |
||
(Loss)/profit before tax |
( |
|
|
Taxation |
|
( |
|
(Loss)/profit for the financial year |
( |
|
|
Profit/(loss) attributable to: |
|||
Owners of the company |
( |
|
|
Retained earnings brought forward |
14,244,409 |
11,888,006 |
|
Retained earnings carried forward |
13,498,829 |
14,244,409 |
Easy Heat Systems Limited
(Registration number: SC181331)
Consolidated Balance Sheet as at 30 April 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Intangible assets |
|
- |
|
Tangible assets |
|
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
200 |
200 |
|
Revaluation reserve |
10,146,985 |
10,146,985 |
|
Retained earnings |
13,498,829 |
14,244,409 |
|
Equity attributable to owners of the company |
23,646,014 |
24,391,594 |
|
Shareholders' funds |
23,646,014 |
24,391,594 |
Approved and authorised by the
......................................... |
......................................... |
Easy Heat Systems Limited
(Registration number: SC181331)
Balance Sheet as at 30 April 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
200 |
200 |
|
Revaluation reserve |
10,146,985 |
10,146,985 |
|
Retained earnings |
15,174,831 |
14,244,409 |
|
Shareholders' funds |
25,322,016 |
24,391,594 |
The company made a profit after tax for the financial year of £930,422 (2023 - profit of £2,356,403).
Approved and authorised by the
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......................................... |
Easy Heat Systems Limited
Consolidated Statement of Cash Flows for the Year Ended 30 April 2024
Note |
2024 |
2023 |
|
Cash flows from operating activities |
|||
(Loss)/profit for the year |
( |
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Profit on disposal of tangible assets |
( |
( |
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Income tax expense |
( |
|
|
( |
|
||
Working capital adjustments |
|||
Increase in stocks |
( |
( |
|
Decrease/(increase) in trade debtors |
|
( |
|
Decrease in trade creditors |
( |
( |
|
Cash generated from operations |
( |
|
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
( |
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
|
|
Acquisition of intangible assets |
( |
- |
|
Acquisition of investments in joint ventures and associates |
- |
( |
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Proceeds from bank borrowing draw downs |
( |
( |
|
Repayment of other borrowing |
|
- |
|
Payments to finance lease creditors |
|
|
|
Net cash flows from financing activities |
|
( |
|
Net decrease in cash and cash equivalents |
( |
( |
|
Cash and cash equivalents at 1 May |
( |
|
|
Cash and cash equivalents at 30 April |
(1,898,719) |
(1,737,328) |
Easy Heat Systems Limited
Statement of Cash Flows for the Year Ended 30 April 2024
Note |
2024 |
2023 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Profit on disposal of tangible assets |
( |
( |
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Income tax expense |
( |
|
|
|
|
||
Working capital adjustments |
|||
Increase in stocks |
( |
( |
|
Decrease/(increase) in trade debtors |
|
( |
|
Decrease in trade creditors |
( |
( |
|
Cash generated from operations |
( |
|
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
( |
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisition of subsidiaries |
( |
- |
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
|
|
Acquisition of investments in joint ventures and associates |
- |
( |
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Proceeds from bank borrowing draw downs |
( |
( |
|
Repayment of other borrowing |
|
- |
|
Payments to finance lease creditors |
|
|
|
Net cash flows from financing activities |
|
( |
|
Net decrease in cash and cash equivalents |
( |
( |
|
Cash and cash equivalents at 1 May |
( |
|
|
Cash and cash equivalents at 30 April |
(1,900,691) |
(1,737,328) |
Easy Heat Systems Limited
Notes to the Financial Statements for the Year Ended 30 April 2024
General information |
The company is a private company limited by share capital, incorporated in Scotland.
The address of its registered office is:
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 30 April 2024.
No Profit and Loss Account is presented for the company as permitted by section 408 of the Companies Act 2006. The company made a profit after tax for the financial year of £930,422 (2023 - profit of £2,356,403).
Easy Heat Systems Limited
Notes to the Financial Statements for the Year Ended 30 April 2024
2 |
Accounting policies (continued) |
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Going concern
The financial statements have been prepared on a going concern basis.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the group.
The group recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the group's activities.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Easy Heat Systems Limited
Notes to the Financial Statements for the Year Ended 30 April 2024
2 |
Accounting policies (continued) |
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Freehold property |
Not provided for |
Plant and machinery |
25% reducing balance |
Fixtures and fittings |
15% reducing balance |
Motor vehicles |
25% reducing balance |
Computer equipment |
25% reducing balance |
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Goodwill |
Over 10 years |
Easy Heat Systems Limited
Notes to the Financial Statements for the Year Ended 30 April 2024
2 |
Accounting policies (continued) |
Investments
Investments in subsidiaries are accounted for at cost less accumulated impairment losses.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Easy Heat Systems Limited
Notes to the Financial Statements for the Year Ended 30 April 2024
2 |
Accounting policies (continued) |
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Turnover |
The analysis of the group's Turnover for the year from continuing operations is as follows:
2024 |
2023 |
|
Sale of goods |
|
|
Easy Heat Systems Limited
Notes to the Financial Statements for the Year Ended 30 April 2024
Other operating income |
The analysis of the group's other operating income for the year is as follows:
2024 |
2023 |
|
Rental income |
|
|
Miscellaneous other operating income |
|
|
|
|
Operating (loss)/profit |
Arrived at after charging/(crediting)
2024 |
2023 |
|
Depreciation expense |
|
|
Amortisation expense |
|
- |
Profit on disposal of property, plant and equipment |
( |
( |
Other interest receivable and similar income |
2024 |
2023 |
|
Interest income on bank deposits |
|
|
Other finance income |
|
|
|
|
Interest payable and similar expenses |
2024 |
2023 |
|
Interest on bank overdrafts and borrowings |
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
Interest expense on other finance liabilities |
|
|
|
|
Easy Heat Systems Limited
Notes to the Financial Statements for the Year Ended 30 April 2024
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2024 |
2023 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
Other employee expense |
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
2024 |
2023 |
|
Production |
|
|
Administration and support |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2024 |
2023 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
- |
66,814 |
25,500 |
Auditors' remuneration |
2024 |
2023 |
|
Audit of these financial statements |
10,000 |
7,650 |
Easy Heat Systems Limited
Notes to the Financial Statements for the Year Ended 30 April 2024
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
2024 |
2023 |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
( |
|
(328,974) |
734,935 |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
( |
|
Tax (receipt)/expense in the income statement |
( |
|
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2024 |
2023 |
|
(Loss)/profit before tax |
( |
|
Corporation tax at standard rate |
( |
|
Tax increase/(decrease) from effect of capital allowances and depreciation |
|
( |
Decrease from effect of different UK tax rates on some earnings |
- |
( |
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Effect of tax losses |
|
- |
Deferred tax (credit)/expense from unrecognised tax loss or credit |
( |
|
Tax (decrease)/increase from effect of adjustment in research and development tax credit |
( |
|
Further item of tax increase |
|
- |
Total tax (credit)/charge |
( |
|
Easy Heat Systems Limited
Notes to the Financial Statements for the Year Ended 30 April 2024
11 |
Taxation (continued) |
Deferred tax
Group
Deferred tax assets and liabilities
2024 |
Asset |
Liability |
Capital allowances |
- |
|
Revaluation of investment property |
- |
|
- |
|
2023 |
Asset |
Liability |
Capital allowances |
- |
|
Revaluation of investment property |
- |
|
- |
|
The amount of the net reversal of deferred tax assets and deferred tax liabilities expected to occur during the year beginning after the reporting period is £
Company
Deferred tax assets and liabilities
2024 |
Asset |
Liability |
Capital allowances |
- |
|
Revalued investment property |
- |
|
- |
|
2023 |
Asset |
Liability |
Capital allowances |
- |
|
Revalued investment property |
- |
|
- |
|
The amount of the net reversal of deferred tax assets and deferred tax liabilities expected to occur during the year beginning after the reporting period is £
Easy Heat Systems Limited
Notes to the Financial Statements for the Year Ended 30 April 2024
Intangible assets |
Group
Goodwill |
Total |
|
Cost or valuation |
||
At 1 May 2023 |
|
|
Additions acquired separately |
|
|
At 30 April 2024 |
|
|
Amortisation |
||
At 1 May 2023 |
|
|
Amortisation charge |
|
|
At 30 April 2024 |
|
|
Carrying amount |
||
At 30 April 2024 |
|
|
Company
Goodwill |
Total |
|
Cost or valuation |
||
At 1 May 2023 |
|
|
At 30 April 2024 |
|
|
Amortisation |
||
At 1 May 2023 |
|
|
At 30 April 2024 |
|
|
Carrying amount |
||
At 30 April 2024 |
- |
- |
Easy Heat Systems Limited
Notes to the Financial Statements for the Year Ended 30 April 2024
Tangible assets |
Group
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Total |
|
Cost or valuation |
||||
At 1 May 2023 |
|
|
|
|
Additions |
|
|
|
|
Disposals |
( |
( |
( |
( |
At 30 April 2024 |
|
|
|
|
Depreciation |
||||
At 1 May 2023 |
- |
|
|
|
Charge for the year |
|
|
|
|
Eliminated on disposal |
( |
( |
( |
( |
At 30 April 2024 |
|
|
|
|
Carrying amount |
||||
At 30 April 2024 |
|
|
|
|
At 30 April 2023 |
|
|
|
|
Included within the net book value of land and buildings above is £25,467,213 (2023 - £25,138,362) in respect of freehold land and buildings.
Easy Heat Systems Limited
Notes to the Financial Statements for the Year Ended 30 April 2024
13 |
Tangible assets (continued) |
Company
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Total |
|
Cost or valuation |
||||
At 1 May 2023 |
|
|
|
|
Additions |
|
|
|
|
Disposals |
- |
- |
( |
( |
At 30 April 2024 |
|
|
|
|
Depreciation |
||||
At 1 May 2023 |
- |
|
|
|
Charge for the year |
- |
|
|
|
Eliminated on disposal |
- |
- |
( |
( |
At 30 April 2024 |
- |
|
|
|
Carrying amount |
||||
At 30 April 2024 |
|
|
|
|
At 30 April 2023 |
|
|
|
|
Included within the net book value of land and buildings above is £25,436,519 (2023 - £25,138,362) in respect of freehold land and buildings.
Revaluation
The fair value of the company's Land and buildings was revalued on
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £
Restriction on title and pledged as security
Investments |
Company
Easy Heat Systems Limited
Notes to the Financial Statements for the Year Ended 30 April 2024
14 |
Investments (continued) |
2024 |
2023 |
|
Investments in subsidiaries |
|
- |
Investments in associates |
|
|
|
|
Subsidiaries |
£ |
Cost or valuation |
|
Additions |
|
Provision |
|
Carrying amount |
|
At 30 April 2024 |
|
Associates |
£ |
Cost |
|
At 1 May 2023 |
|
Provision |
|
Carrying amount |
|
At 30 April 2024 |
|
At 30 April 2023 |
|
The company has valued its investments in associates at fair value by measuring the associate's assets and liabilities.
Under the equity method of accounting, an equity investment is initially recognised at the transaction price and is subsequently adjusted to reflect the investor’s share of the profit or loss and other comprehensive income of the associate. In this case there is no material difference to the fair value calculation included in these accounts.
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2024 |
2023 |
|||
Subsidiary undertakings |
||||
|
Unit 9B, Alliance Industrial Estate
England |
|
|
|
Easy Heat Systems Limited
Notes to the Financial Statements for the Year Ended 30 April 2024
14 |
Investments (continued) |
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
Associates |
||||
|
13-13a Westwood Way
|
Ordinary shares |
|
|
England |
Subsidiary undertakings |
E-Type Fabs Ltd The principal activity of E-Type Fabs Ltd is |
Associates |
DRVN Advanced Engineering Limited The principal activity of DRVN Advanced Engineering Limited is |
Stocks |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Work in progress |
|
|
|
|
Other inventories |
|
|
|
|
|
|
|
|
Debtors |
Group |
Company |
||||
Current |
Note |
2024 |
2023 |
2024 |
2023 |
Trade debtors |
|
|
|
|
|
Amounts owed by related parties |
|
|
|
|
|
Other debtors |
|
|
|
|
|
Prepayments |
|
|
|
|
|
|
|
|
|
Easy Heat Systems Limited
Notes to the Financial Statements for the Year Ended 30 April 2024
Cash and cash equivalents |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Cash at bank |
|
|
|
|
Short-term deposits |
|
|
|
|
|
|
|
|
|
Bank overdrafts |
( |
( |
( |
( |
Cash and cash equivalents in statement of cash flows |
(1,898,719) |
(1,737,328) |
(1,900,691) |
(1,737,328) |
Easy Heat Systems Limited
Notes to the Financial Statements for the Year Ended 30 April 2024
Creditors |
Group |
Company |
||||
Note |
2024 |
2023 |
2024 |
2023 |
|
Due within one year |
|||||
Loans and borrowings |
|
|
|
|
|
Trade creditors |
|
|
|
|
|
Amounts due to related parties |
|
|
|
|
|
Social security and other taxes |
|
|
|
|
|
Outstanding defined contribution pension costs |
|
|
( |
|
|
Other payables |
( |
|
( |
|
|
Accruals |
|
|
|
|
|
Income tax liability |
903,916 |
1,256,628 |
903,916 |
1,256,628 |
|
|
|
|
|
||
Due after one year |
|||||
Loans and borrowings |
|
|
|
|
Easy Heat Systems Limited
Notes to the Financial Statements for the Year Ended 30 April 2024
Provisions for liabilities |
Group
Deferred tax |
Total |
|
At 1 May 2023 |
|
|
Increase (decrease) in existing provisions |
( |
( |
At 30 April 2024 |
|
|
|
Company
Deferred tax |
Total |
|
At 1 May 2023 |
|
|
Increase (decrease) in existing provisions |
( |
( |
At 30 April 2024 |
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £
Share capital |
Allotted, called up and fully paid shares
2024 |
2023 |
|||
No. |
£ |
No. |
£ |
|
Ordinary shares of £1 each |
200 |
200 |
200 |
200 |
Rights, preferences and restrictions
Ordinary shares have the following rights, preferences and restrictions: |
Easy Heat Systems Limited
Notes to the Financial Statements for the Year Ended 30 April 2024
Loans and borrowings |
Non-current loans and borrowings
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Bank borrowings |
|
|
|
|
Finance lease liabilities |
|
|
|
|
Other borrowings |
|
- |
|
- |
|
|
|
|
Current loans and borrowings
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Bank borrowings |
|
|
|
|
Bank overdrafts |
|
|
|
|
Finance lease liabilities |
|
|
|
|
|
|
|
|
Company
Bank borrowings
The company's bank holds fixed securities over some of the company's properties plus a floating charge over all the assets of the company.
|
Included in the loans and borrowings are the following amounts due after more than five years:
2024 |
2023 |
|
After more than five years by instalments |
|
|
- |
- |
Easy Heat Systems Limited
Notes to the Financial Statements for the Year Ended 30 April 2024
Contingent assets |
Company
Related party transactions |
Group
Key management compensation
2024 |
2023 |
|
Salaries and other short term employee benefits |
|
|
Company
Key management compensation
2024 |
2023 |
|
Salaries and other short term employee benefits |
|
|
Transactions with directors |
2024 |
At 1 May 2023 |
Advances to director |
Other payments made to company by director |
At 30 April 2024 |
Mr J McDermott |
||||
Director's loan account |
|
|
11,469 |
|
Mr W McDermott |
||||
Director's loan account |
|
|
8,558 |
|
Easy Heat Systems Limited
Notes to the Financial Statements for the Year Ended 30 April 2024
24 |
Related party transactions (continued) |
2023 |
At 1 May 2022 |
Advances to director |
At 30 April 2023 |
Mr J McDermott |
|||
Director's loan account |
- |
|
|
Mr W McDermott |
|||
Director's loan account |
- |
|
|
Interest is charged on these loans at a rate of 4.5% per annum. There are no fixed repayment terms.
Summary of transactions with other related parties
There are no fixed repayment terms, no guarantees or terms and conditions and they are not secured.
The company is exempt from disclosing related party transactions with its subsidiary company as it is wholly owned.
Company |
Sales |
Purchases |
Due to/(from) |
£ |
£ |
£ |
|
Chameleon Digitization Ltd |
94,471 |
- |
1,452,971 |
Chameleon Vision Ltd |
- |
- |
(10,207) |
McDermott Group Ltd |
- |
- |
(55,511) |
Momentum 4 Ltd |
22,904 |
56,797 |
99,393 |
MDG Chameleon Ltd |
- |
120,273 |
(397,172) |
MDG Capital Ltd |
- |
- |
(68,324) |
MDG Capital 1 Ltd |
- |
- |
126,808 |
MDG Capital 2 Ltd |
- |
- |
(19,487) |
MDG Capital 3 Ltd |
- |
- |
118,189 |
DRVN Automotive Ltd |
- |
- |
3,913,804 |
DMD London Ltd |
63,570 |
- |
(1,403,832) |
Devine Energy Ltd |
41,730 |
576,890 |
6,591 |
The Recruitment Bunker Ltd |
24,483 |
- |
255,288 |
247,158 |
753,960 |
4,018,511 |
Easy Heat Systems Limited
Notes to the Financial Statements for the Year Ended 30 April 2024
Parent and ultimate parent undertaking |
The company is owned by its directors who own 100% of its share capital.