Company Registration No. 04325260 (England and Wales)
NATIONWIDE AIR CONDITIONING LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2025
Star House
Star Hill
Rochester
Kent
ME1 1UX
NATIONWIDE AIR CONDITIONING LIMITED
CONTENTS
Page
Company information
1
Strategic report
2 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Statement of comprehensive income
10
Statement of financial position
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 26
NATIONWIDE AIR CONDITIONING LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr A Birch
Mr L Innocenzi
Mr C Henderson
Company number
04325260
Registered office
Agusta House
Commerce Way
Edenbridge
Kent
TN8 6ED
Auditor
TC Group
Star House
Star Hill
Rochester
Kent
ME1 1UX
NATIONWIDE AIR CONDITIONING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 2 -
The directors present the strategic report for the year ended 31 March 2025.
Fair review of the business
Business Model
Nationwide Air Conditioning Limited, is in its twenty-fourth year of trading and its fourth as an Employee Ownership Trust (EOT). The company provides heating, ventilation, and air conditioning (HVAC) services across the UK, working directly with commercial end-user clients in sectors such as leisure, retail, hospitality, healthcare, and industrial.
Our core business model remains unchanged:
•Focus on national commercial clients rather than domestic work.
•Maintain a 70:30 split between recurring service (maintenance, callouts, remedial) and project work.
•Self-deliver service and design, while subcontracting installation elements of project delivery.
Business Performance
The company achieved modest revenue growth in the year, supported by a strong performance in project delivery. Service performance was below budget, with challenges in some regions impacting overall gross profit. Despite this, improvements in operational leadership and workforce planning were introduced during the year, setting a foundation for future recovery and growth.
Projects delivered record turnover, although gross margin was affected by early-year underperformance. This recovered strongly in the final quarter, supported by successful delivery of major contracts.
Continued investment in business systems, particularly the ERP platform and data reporting tools, has significantly improved visibility of performance metrics and financial control. Enhanced dashboards and financial processes now enable more timely and informed decision-making across the business
Prospects for the next Financial Year
Nationwide enters the new financial year with a stable platform of recurring business and a healthy pipeline of opportunities. The company remains focused on delivering high-quality service to its clients while continuing to strengthen operational capability across the organisation.
Improving gross profit performance will be a key priority, supported by ongoing investment in people, systems, and process improvement. Enhancements in financial visibility and management oversight are expected to support better decision-making and performance at all levels of the business.
Nationwide will continue to operate with a clear focus on long-term, sustainable growth under its Employee Ownership Trust model, balancing commercial performance with employee engagement and client satisfaction.
NATIONWIDE AIR CONDITIONING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 3 -
Principle Risks and Uncertainties
Key risks remain consistent with prior years, including:
•Labour availability and retention in a competitive market.
•Increasing operational complexity as the business scales.
•Margin erosion linked to rising input costs and changing client expectations.
Notable progress has been made in addressing people-related risks through the formation of a dedicated People Department and refined recruitment and retention practices. Ongoing focus will be placed on developing management capability and embedding a consistent performance culture.
The company also prioritised rebuilding cash reserves during the year, following a period of constrained liquidity. Target cash levels were exceeded by the end of the financial year, reflecting improved financial discipline.
Looking ahead, the company recognises the need to continue strengthening its management processes and tools to sustain gross profit performance and meet the expectations of its clients and employee-owners.
Mr L Innocenzi
Director
26 June 2025
NATIONWIDE AIR CONDITIONING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 4 -
The directors present their annual report and financial statements for the year ended 31 March 2025.
Results and dividends
The results for the year are set out on page 10.
No ordinary dividends were paid. The directors do not recommend payment of a final 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 A Birch
Mr L Innocenzi
Mr C Henderson
Auditor
The auditor, TC Group, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr L Innocenzi
Director
26 June 2025
NATIONWIDE AIR CONDITIONING LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2025
- 5 -
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:
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.
NATIONWIDE AIR CONDITIONING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NATIONWIDE AIR CONDITIONING LIMITED
- 6 -
Opinion
We have audited the financial statements of Nationwide Air Conditioning Limited (the 'company') for the year ended 31 March 2025 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 March 2025 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.
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.
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.
NATIONWIDE AIR CONDITIONING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NATIONWIDE AIR CONDITIONING LIMITED
- 7 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the 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 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:
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.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was considered capable of detecting irregularities, including fraud
The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.
NATIONWIDE AIR CONDITIONING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NATIONWIDE AIR CONDITIONING LIMITED
- 8 -
Our approach was as follows:
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations;
We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK;
We considered the nature of the industry, the control environment and business performance, including the key drivers for management’s remuneration;
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;
We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditors/audit-assurance/auditor-s-responsibilities-for-the-audit-of-the-fi/description-of-the-auditor%E2%80%99s-responsibilities-for. This description forms part of our auditor’s report.
NATIONWIDE AIR CONDITIONING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NATIONWIDE AIR CONDITIONING LIMITED
- 9 -
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.
Sally Meah FCCA (Senior Statutory Auditor)
For and on behalf of TC Group
Statutory Auditor
25 July 2025
Star House
Star Hill
Rochester
Kent
ME1 1UX
NATIONWIDE AIR CONDITIONING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
- 10 -
2025
2024
Notes
£
£
Turnover
22,337,195
21,320,410
Cost of sales
(17,993,668)
(15,345,948)
Gross profit
4,343,527
5,974,462
Administrative expenses
(3,924,367)
(4,510,187)
Other operating income
8,255
3,670
Operating profit
427,415
1,467,945
Interest receivable and similar income
5
8,679
4,261
Profit before taxation
436,094
1,472,206
Tax on profit
7
(78,682)
(217,667)
Profit for the financial year
357,412
1,254,539
The income statement has been prepared on the basis that all operations are continuing operations.
The notes on pages 14 to 26 form part of these financial statements.
NATIONWIDE AIR CONDITIONING LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2025
31 March 2025
- 11 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
8
116,642
203,671
Current assets
Stocks
9
109,744
526,767
Debtors
10
4,305,114
4,085,556
Cash at bank and in hand
2,528,635
95,345
6,943,493
4,707,668
Creditors: amounts falling due within one year
11
(5,876,983)
(4,063,879)
Net current assets
1,066,510
643,789
Total assets less current liabilities
1,183,152
847,460
Provisions for liabilities
Deferred tax liability
12
28,572
50,292
(28,572)
(50,292)
Net assets
1,154,580
797,168
Capital and reserves
Called up share capital
14
10,000
10,000
Profit and loss reserves
1,144,580
787,168
Total equity
1,154,580
797,168
The notes on pages 14 to 26 form part of these financial statements.
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 26 June 2025 and are signed on its behalf by:
Mr L Innocenzi
Director
Company registration number 04325260 (England and Wales)
NATIONWIDE AIR CONDITIONING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2023
10,000
1,382,629
1,392,629
Year ended 31 March 2024:
Profit and total comprehensive income
-
1,254,539
1,254,539
Other movements
-
(1,850,000)
(1,850,000)
Balance at 31 March 2024
10,000
787,168
797,168
Year ended 31 March 2025:
Profit and total comprehensive income
-
357,412
357,412
Balance at 31 March 2025
10,000
1,144,580
1,154,580
The notes on pages 14 to 26 form part of these financial statements.
NATIONWIDE AIR CONDITIONING LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2025
- 13 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
17
2,547,459
510,060
Income taxes (paid)/refunded
(191,656)
83,844
Net cash inflow from operating activities
2,355,803
593,904
Investing activities
Proceeds from disposal of tangible fixed assets
68,808
168,562
Interest received
8,679
4,261
Net cash generated from investing activities
77,487
172,823
Financing activities
EOT payment
(1,850,000)
Net cash used in financing activities
-
(1,850,000)
Net increase/(decrease) in cash and cash equivalents
2,433,290
(1,083,273)
Cash and cash equivalents at beginning of year
95,345
1,178,618
Cash and cash equivalents at end of year
2,528,635
95,345
The notes on pages 14 to 26 form part of these financial statements.
NATIONWIDE AIR CONDITIONING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
- 14 -
1
Accounting policies
Company information
Nationwide Air Conditioning Limited is a private company limited by shares incorporated in England and Wales. The registered office is Agusta House, Commerce Way, Edenbridge, Kent, TN8 6ED.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
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.
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
Over life of lease
Motor vehicles
25% reducing balance
Office equipments
3 years straightline
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.
NATIONWIDE AIR CONDITIONING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 15 -
1.5
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include 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.
NATIONWIDE AIR CONDITIONING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 16 -
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.
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.
NATIONWIDE AIR CONDITIONING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 17 -
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.
1.7
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset 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.
1.8
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
NATIONWIDE AIR CONDITIONING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 18 -
1.9
Intermediate payment arrangements
Company shares held by an Employment Share Ownership Trust (ESOT) are held for the future benefit of the employees. The consideration paid for the shares is deducted from equity until the shares vest unconditionally with the employees. The administrative costs relating to the ESOT are charged to the income statement.
1.10
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
NATIONWIDE AIR CONDITIONING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 19 -
2
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and
assumptions in applying the Company's accounting policies to determine the reported amounts of assets,
liabilities, income and expenses. The estimates and associated assumptions are based on historical
experience and various other factors that are believed to be reasonable under the circumstances. Actual
results may differ from these estimates. These estimates and underlying assumptions are reviewed on an
ongoing basis.
Judgements
Critical judgments , apart from those involving estimates that are applied in the preparation of the financial statements are discussed below;
Leases
Management exercises judgement in determining the classification of leases as finance or operating lease at the inception of the lease. Management considers the Likelihood of exercising the break clauses or extension options in determining the lease term. Where the lease term constitutes substantially all of the economic life of the asset, or where the present value of minimum lease payments amounts to substantially all of the fair value of the property, the lease is classified as a finance lease. All other leases are classified as operating leases.
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.
Depreciation of property, plant and equipment
Tangible fixed assets, are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
Impairment of assets
Determine whether there are indicators of impairment of the company's tangible and intangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.
Work in progress
Key assumptions have been made regarding the stage of completion, of future costs to complete and collectability of billings of some contracts.
NATIONWIDE AIR CONDITIONING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 20 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2025
2024
Number
Number
Directors
3
3
Management
21
20
Office
30
28
Engineers
77
84
Total
131
135
Their aggregate remuneration comprised:
2025
2024
£
£
Wages and salaries
6,087,074
5,508,749
Social security costs
632,099
639,690
Pension costs
233,165
263,663
6,952,338
6,412,102
4
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
13,010
12,390
5
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
8,679
3,733
Other interest income
528
Total income
8,679
4,261
NATIONWIDE AIR CONDITIONING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
5
Interest receivable and similar income
(Continued)
- 21 -
2025
2024
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
8,679
3,733
6
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
322,023
305,584
Company pension contributions to defined contribution schemes
120,110
151,503
442,133
457,087
Remuneration disclosed above include the following amounts paid to the highest paid director:
2025
2024
£
£
Remuneration for qualifying services
172,527
187,829
Company pension contributions to defined contribution schemes
55,110
61,321
7
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
135,737
210,000
Adjustments in respect of prior periods
(35,335)
52,562
Total current tax
100,402
262,562
Deferred tax
Origination and reversal of timing differences
(21,720)
(44,895)
Total tax charge
78,682
217,667
NATIONWIDE AIR CONDITIONING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
7
Taxation
(Continued)
- 22 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2025
2024
£
£
Profit before taxation
436,094
1,472,206
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
109,024
368,052
Tax effect of expenses that are not deductible in determining taxable profit
12,595
5,911
Adjustments in respect of prior years
(35,335)
52,562
Group relief
(3,046)
Permanent capital allowances in excess of depreciation
17,164
44,895
Research and development tax credit
(208,858)
Deferred tax charge
(21,720)
(44,895)
Taxation charge for the year
78,682
217,667
8
Tangible fixed assets
Leasehold improvements
Motor vehicles
Office equipments
Total
£
£
£
£
Cost
At 1 April 2024
4,360
534,179
271
538,810
Disposals
(163,725)
(163,725)
At 31 March 2025
4,360
370,454
271
375,085
Depreciation and impairment
At 1 April 2024
4,360
330,508
271
335,139
Depreciation charged in the year
44,045
44,045
Eliminated in respect of disposals
(120,741)
(120,741)
At 31 March 2025
4,360
253,812
271
258,443
Carrying amount
At 31 March 2025
116,642
116,642
At 31 March 2024
203,671
203,671
NATIONWIDE AIR CONDITIONING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 23 -
9
Stocks
2025
2024
£
£
Work in progress
105,670
522,878
Finished goods and goods for resale
4,074
3,889
109,744
526,767
10
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
3,543,977
3,218,238
Corporation tax recoverable
35,335
18,344
Other debtors
(1,471)
12,620
Prepayments and accrued income
727,273
836,354
4,305,114
4,085,556
11
Creditors: amounts falling due within one year
2025
2024
Notes
£
£
Trade creditors
2,962,186
1,868,870
Amounts owed to group undertakings
101,905
101,905
Corporation tax
135,737
210,000
Other taxation and social security
992,750
831,657
Deferred income
704,164
625,330
Other creditors
(4,073)
21,296
Accruals and deferred income
984,314
404,821
5,876,983
4,063,879
NATIONWIDE AIR CONDITIONING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 24 -
12
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2025
2024
Balances:
£
£
Accelerated capital allowances
28,572
50,292
2025
Movements in the year:
£
Liability at 1 April 2024
50,292
Credit to profit or loss
(21,720)
Liability at 31 March 2025
28,572
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
13
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
233,165
263,663
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
14
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
10,000
10,000
10,000
10,000
NATIONWIDE AIR CONDITIONING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 25 -
15
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2025
2024
£
£
Within one year
201,846
161,380
Between two and five years
213,953
364,472
415,799
525,852
16
Ultimate controlling party
The company's immediate parent is Nationwide Group (UK) Limited, who owned 100% of the issued share capital, incorporated in England and Wales.
Nationwide Air Conditioning Trustees Limited acts as the first trustee of the Trust 'Nationwide Air Conditioning Employee Ownership Trust'.
17
Cash generated from operations
2025
2024
£
£
Profit for the year after tax
357,412
1,254,539
Adjustments for:
Taxation charged
78,682
217,667
Investment income
(8,679)
(4,261)
Gain on disposal of tangible fixed assets
(25,824)
(68,465)
Depreciation and impairment of tangible fixed assets
44,045
79,644
Movements in working capital:
Decrease/(increase) in stocks
417,023
(119,364)
Increase in debtors
(202,567)
(876,264)
Increase in creditors
1,808,533
588,446
Increase/(decrease) in deferred income
78,834
(561,882)
Cash generated from operations
2,547,459
510,060
NATIONWIDE AIR CONDITIONING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 26 -
18
Analysis of changes in net funds
1 April 2024
Cash flows
31 March 2025
£
£
£
Cash at bank and in hand
95,345
2,433,290
2,528,635
2025-03-312024-04-01falsefalsefalseCCH SoftwareCCH Accounts Production 2025.100No description of principal activityMr A BirchMr L InnocenziMr C Henderson043252602024-04-012025-03-3104325260bus:Director12024-04-012025-03-3104325260bus:Director22024-04-012025-03-3104325260bus:Director32024-04-012025-03-3104325260bus:RegisteredOffice2024-04-012025-03-31043252602025-03-31043252602023-04-012024-03-3104325260core:RetainedEarningsAccumulatedLosses2023-04-012024-03-3104325260core:RetainedEarningsAccumulatedLosses2024-04-012025-03-31043252602024-03-3104325260core:LeaseholdImprovements2025-03-3104325260core:MotorVehicles2025-03-3104325260core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2025-03-3104325260core:LeaseholdImprovements2024-03-3104325260core:MotorVehicles2024-03-3104325260core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2024-03-3104325260core:CurrentFinancialInstrumentscore:WithinOneYear2025-03-3104325260core:CurrentFinancialInstrumentscore:WithinOneYear2024-03-3104325260core:CurrentFinancialInstruments2025-03-3104325260core:CurrentFinancialInstruments2024-03-3104325260core:ShareCapital2025-03-3104325260core:ShareCapital2024-03-3104325260core:RetainedEarningsAccumulatedLosses2025-03-3104325260core:RetainedEarningsAccumulatedLosses2024-03-3104325260core:ShareCapital2023-03-3104325260core:RetainedEarningsAccumulatedLosses2023-03-3104325260core:ShareCapitalOrdinaryShareClass12025-03-3104325260core:ShareCapitalOrdinaryShareClass12024-03-310432526012024-04-012025-03-31043252602024-03-31043252602023-03-3104325260core:LeaseholdImprovements2024-04-012025-03-3104325260core:MotorVehicles2024-04-012025-03-3104325260core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2024-04-012025-03-3104325260core:UKTax2024-04-012025-03-3104325260core:UKTax2023-04-012024-03-310432526012023-04-012024-03-3104325260core:LeaseholdImprovements2024-03-3104325260core:MotorVehicles2024-03-3104325260core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2024-03-3104325260bus:OrdinaryShareClass12024-04-012025-03-3104325260bus:OrdinaryShareClass12025-03-3104325260bus:OrdinaryShareClass12024-03-3104325260core:WithinOneYear2025-03-3104325260core:WithinOneYear2024-03-3104325260core:BetweenTwoFiveYears2025-03-3104325260core:BetweenTwoFiveYears2024-03-3104325260bus:PrivateLimitedCompanyLtd2024-04-012025-03-3104325260bus:FRS1022024-04-012025-03-3104325260bus:Audited2024-04-012025-03-3104325260bus:FullAccounts2024-04-012025-03-31xbrli:purexbrli:sharesiso4217:GBP