Company registration number 01188768 (England and Wales)
TEMPERATURE CONTROL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
TEMPERATURE CONTROL LIMITED
COMPANY INFORMATION
Directors
W A Buckley
S G Grundy
A J Mellor
Company number
01188768
Registered office
Walker House
Chorlton Street
Old Trafford
Manchester
M16 9HN
Auditor
Alexander & Co LLP
Centurion House
129 Deansgate
Manchester
M3 3WR
TEMPERATURE CONTROL LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 23
TEMPERATURE CONTROL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 1 -
The directors present the strategic report for the year ended 31 October 2024.
Fair review of the business
The company encountered a downturn in sales during the financial year, reflecting a 9% decrease in turnover from the previous year, amounting to £12.4 million. This decline corresponds with trends observed within the construction industry, as reported by the Office for National Statistics (ONS), which is demonstrated by reductions of 5% and over in new orders. Furthermore, inflationary pressures on project pricing prompted a more cautious approach towards new orders, subsequently affecting overall sales.
This approach has facilitated the company in sustaining robust financial stability and in circumventing loss-inducing projects that could negatively affect our financial strength. The pipeline of work has remained resilient, with a focus on the expansion into additional low carbon initiatives and specialised energy projects. We have also preserved our strong relationships with both existing and new clients within the hotel, retail, and large commercial sectors. Our capability to execute substantial multi-million-pound projects, alongside specialised initiatives, has contributed to establishing a formidable reputation and opportunities throughout the UK.
The persistent emphasis on high quality, customer service, and energy efficiency is facilitating growth in the renewable heating sector, thereby complementing our existing service offerings. This is evident in our attainment of certified Net Zero Carbon status in 2023, which aligns with our strategic objectives and enhances our opportunities in accordance with forthcoming net zero carbon targets. By specialising in these current and emerging technologies, we aim to achieve further sustainable growth and profitability in the years to come.
Principal risks and uncertainties
The board has primary responsibility for identifying the principal risks which the business faces and for developing appropriate policies to manage those risks. The principal business risks relate to the following:
Financial risk management, including credit risk and liquidity risk
Supply chain delays regarding materials and equipment
Elevated inflation and its impact on costs, particularly for long-term projects
Financial stability throughout the project supply chain
To enhance protection against unforeseen future losses, we have identified potential loss-making projects and have augmented our Guaranteed Service Reserve (GSR). The GSR is determined based on a five-year average and projections. Although this impacts the initial profit margins and results for the current year, the GSR offers protection against any future potential losses.
Credit risk
In order to mitigate our risk exposure, we strategically focus on our efforts on clientele with robust financial standing, encompassing numerous blue-chip companies. Our projects are insured to further minimise potential risks both for our organisation and our supply chain.
We are constantly revising our processes and handover protocols to incorporate various stage gates, ensuring that director-level approval is obtained prior to incurring any risk. This approach includes a significant investment in specialised project management software, aimed at providing a more transparent and accessible interface with suppliers and site operatives. This initiative will serve to decrease onsite risks and uphold anticipated profit margins.
Liquidity risk
The objective of the Company is to maintain a healthy working capital by monitoring its current assets and liabilities, as well as the timing of cash flows, to ensure that the Company can fulfil all its contractual obligations.
TEMPERATURE CONTROL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 2 -
W A Buckley
Director
14 July 2025
TEMPERATURE CONTROL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 October 2024.
Principal activities
The principal activity of the company continued to be that of air conditioning and building services engineering.
Results and dividends
The results for the year are set out on page 8.
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:
W A Buckley
S G Grundy
A J Mellor
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; 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 company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
TEMPERATURE CONTROL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 4 -
On behalf of the board
W A Buckley
Director
14 July 2025
TEMPERATURE CONTROL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TEMPERATURE CONTROL LIMITED
- 5 -
Opinion
We have audited the financial statements of Temperature Control Limited (the 'company') for the year ended 31 October 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 October 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
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.
TEMPERATURE CONTROL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TEMPERATURE CONTROL LIMITED (CONTINUED)
- 6 -
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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Capability of the audit in detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Based on our understanding of the company, we identified that the principal risks of non-compliance with laws and regulations related to breaches of the legal and regulatory framework that the company operates in. We considered the extent to which non-compliance might have a material effect on the financial statements. The key laws and regulations we considered in this context included UK Companies Act 2006, employment law, health and safety and tax legislation.
We also evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to the posting of inappropriate journal entries to manipulate financial results and potential management bias in accounting estimates.
TEMPERATURE CONTROL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TEMPERATURE CONTROL LIMITED (CONTINUED)
- 7 -
As a result of the above, our audit procedures performed included:
Discussions with management and those charged with governance in relation to known or suspected instances of non-compliance with laws and regulation and fraud.
Agreeing financial statements disclosures to underlying supporting documentation and assessing compliance with relevant laws and regulations.
Testing the appropriateness of journal entries and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
Assessing whether the judgements made in making accounting estimates are indicative of a potential bias.
Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
The engagement partner reviewing the engagement team to ensure that they collectively have the appropriate competence, capabilities, and skills to identify or recognise non-compliance with applicable laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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.
Gary Kramrisch (Senior Statutory Auditor)
For and on behalf of Alexander & Co LLP, Statutory Auditor
Chartered Accountants
Centurion House
129 Deansgate
Manchester
M3 3WR
14 July 2025
TEMPERATURE CONTROL LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
12,350,583
13,633,489
Cost of sales
(9,089,856)
(10,464,748)
Gross profit
3,260,727
3,168,741
Administrative expenses
(3,139,534)
(3,003,331)
Other operating income
23,027
23,023
Operating profit
4
144,220
188,433
Interest payable and similar expenses
7
(573)
(951)
Profit before taxation
143,647
187,482
Tax on profit
8
54,113
18,657
Profit for the financial year
197,760
206,139
The profit and loss account has been prepared on the basis that all operations are continuing operations.
TEMPERATURE CONTROL LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024
- 9 -
2024
2023
£
£
Profit for the year
197,760
206,139
Other comprehensive income
-
-
Total comprehensive income for the year
197,760
206,139
TEMPERATURE CONTROL LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2024
31 October 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
108,753
100,225
Investment property
11
380,000
380,000
Investments
12
7,900
7,900
496,653
488,125
Current assets
Stocks
13
517,080
355,284
Debtors
14
4,258,001
3,210,163
Cash at bank and in hand
452,332
1,046,504
5,227,413
4,611,951
Creditors: amounts falling due within one year
15
(2,893,840)
(2,455,382)
Net current assets
2,333,573
2,156,569
Total assets less current liabilities
2,830,226
2,644,694
Creditors: amounts falling due after more than one year
16
(7,851)
(18,412)
Provisions for liabilities
Provisions
18
439,425
442,717
Deferred tax liability
19
25,549
23,924
(464,974)
(466,641)
Net assets
2,357,401
2,159,641
Capital and reserves
Called up share capital
21
8,000
8,000
Revaluation reserve
22
93,662
93,662
Capital redemption reserve
23
2,000
2,000
Profit and loss reserves
24
2,253,739
2,055,979
Total equity
2,357,401
2,159,641
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 14 July 2025 and are signed on its behalf by:
W A Buckley
Director
Company registration number 01188768 (England and Wales)
TEMPERATURE CONTROL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 11 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 November 2022
8,000
93,662
2,000
1,849,840
1,953,502
Year ended 31 October 2023:
Profit and total comprehensive income
-
-
-
206,139
206,139
Balance at 31 October 2023
8,000
93,662
2,000
2,055,979
2,159,641
Year ended 31 October 2024:
Profit and total comprehensive income
-
-
-
197,760
197,760
Balance at 31 October 2024
8,000
93,662
2,000
2,253,739
2,357,401
TEMPERATURE CONTROL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 12 -
1
Accounting policies
Company information
Temperature Control Limited is a private company limited by shares incorporated in England and Wales. The registered office is Walker House, Chorlton Street, Old Trafford, Manchester, M16 9HN.
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, modified to include the revaluation of freehold properties and to include investment properties at fair value. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
The financial statements of the company are consolidated in the financial statements of Temperature Control Holdings Ltd. These consolidated financial statements are available from its registered office, Walker House Chorlton Street, Old Trafford, Manchester, England, M16 9HN.
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
Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.
When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.
Service revenue is recognised when service visits are undertaken.
Contract revenue is recognised according to the stage of completion of each project. Stage of completion is determined by reference to proportion of costs incurred to budget, amounts billed in advance/arrears are recognised in deferred/accrued income.
Maintenance revenue is recognised when maintenance visits are undertaken, amounts billed in advance are recorded as deferred income.
TEMPERATURE CONTROL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 13 -
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.5
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:
Property improvements
15% on cost
Plant and equipment (Tools)
15% reducing balance
Fixtures and fittings
15% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.7
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
1.8
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
TEMPERATURE CONTROL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 14 -
1.9
Stocks
Work in progress is valued on a long term contract basis stated at net cost less any foreseeable losses less any applicable payments on account. The amount recorded as turnover in respect of work in progress is ascertained by reference to the value of work carried out to date. Work in progress is stated as total costs incurred, net of turnover to date, less any foreseeable losses and payments on account. Attributable profit is recognised as the difference between recorded turnover and related costs.
1.10
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.11
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
TEMPERATURE CONTROL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 15 -
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.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.12
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.13
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
TEMPERATURE CONTROL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 16 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The company is exempt from corporation tax, it being a company not carrying on a business for the purposes of making a profit.
1.14
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.15
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.17
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.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
TEMPERATURE CONTROL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 17 -
1.18
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sales Contracts
10,496,476
11,532,098
Sales Maintenance
833,747
879,356
Sales Service
1,020,360
1,222,035
12,350,583
13,633,489
2024
2023
£
£
Other revenue
Grants received
500
500
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(500)
(500)
Fees payable to the company's auditor for the audit of the company's financial statements
20,200
15,000
Depreciation of owned tangible fixed assets
17,142
11,017
Loss on disposal of tangible fixed assets
2,808
-
Operating lease charges
104,500
84,748
TEMPERATURE CONTROL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 18 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
41
41
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,931,388
1,887,002
Social security costs
228,218
217,359
Pension costs
35,024
39,065
2,194,630
2,143,426
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
109,420
112,219
Company pension contributions to defined contribution schemes
4,321
6,821
113,741
119,040
7
Interest payable and similar expenses
2024
2023
£
£
Other interest
573
951
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
31,296
36,159
Adjustments in respect of prior periods
(90,000)
(56,299)
Total current tax
(58,704)
(20,140)
TEMPERATURE CONTROL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
8
Taxation
2024
2023
£
£
(Continued)
- 19 -
Deferred tax
Prior year adjustment
2,966
Current year movement
1,625
1,483
Total deferred tax
4,591
1,483
Total tax credit
(54,113)
(18,657)
The actual credit for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
143,647
187,482
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.06%)
35,912
41,359
Tax effect of expenses that are not deductible in determining taxable profit
4,830
6,158
Adjustments in respect of prior years
2,966
Effect of change in corporation tax rate
649
Group relief
(8,039)
(9,729)
Depreciation on assets not qualifying for tax allowances
295
Under/(over) provided in prior years
(90,000)
(56,299)
Enhanced capital allowances
(77)
(44)
Marginal relief
(751)
Taxation credit for the year
(54,113)
(18,657)
9
Intangible fixed assets
Goodwill
£
Cost
At 1 November 2023 and 31 October 2024
7,000
Amortisation and impairment
At 1 November 2023 and 31 October 2024
7,000
Carrying amount
At 31 October 2024
At 31 October 2023
TEMPERATURE CONTROL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 20 -
10
Tangible fixed assets
Property improvements
Plant and equipment (Tools)
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 November 2023
38,746
69,755
466,769
575,270
Additions
13,149
15,329
28,478
Disposals
(283)
(5,978)
(6,261)
At 31 October 2024
38,746
82,621
476,120
597,487
Depreciation and impairment
At 1 November 2023
37,968
26,920
410,157
475,045
Depreciation charged in the year
778
7,921
8,443
17,142
Eliminated in respect of disposals
(3,453)
(3,453)
At 31 October 2024
38,746
34,841
415,147
488,734
Carrying amount
At 31 October 2024
47,780
60,973
108,753
At 31 October 2023
778
42,835
56,612
100,225
11
Investment property
2024
£
Fair value
At 1 November 2023 and 31 October 2024
380,000
The investment property is carried at its fair value as assessed by the directors of the company.
12
Fixed asset investments
2024
2023
£
£
Unlisted investments
7,900
7,900
13
Stocks
2024
2023
£
£
Work in progress
517,080
355,284
TEMPERATURE CONTROL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 21 -
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,427,384
1,695,773
Other debtors
1,624,857
1,316,135
Prepayments and accrued income
205,760
198,255
4,258,001
3,210,163
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
17
9,649
9,088
Trade creditors
2,356,385
1,772,970
Corporation tax
97,019
Other taxation and social security
53,087
103,843
Other creditors
314,411
222,172
Accruals and deferred income
160,308
250,290
2,893,840
2,455,382
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
7,851
18,412
17
Loans and overdrafts
2024
2023
£
£
Bank loans
17,500
27,500
Payable within one year
9,649
9,088
Payable after one year
7,851
18,412
18
Provisions for liabilities
2024
2023
£
£
439,425
442,717
Included within provisions are amounts relating to project overruns. The balance has been determined following a detailed assessment by the directors.
TEMPERATURE CONTROL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
18
Provisions for liabilities
(Continued)
- 22 -
Movements on provisions:
£
At 1 November 2023
442,717
Additional provisions in the year
(3,292)
At 31 October 2024
439,425
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
25,549
23,924
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
35,024
39,065
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.
21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
8,000
8,000
8,000
8,000
22
Revaluation reserve
2024
2023
£
£
At the beginning and end of the year
93,662
93,662
TEMPERATURE CONTROL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 23 -
23
Capital redemption reserve
2024
2023
£
£
At the beginning and end of the year
2,000
2,000
24
Profit and loss reserves
2024
2023
£
£
At the beginning of the year
2,055,979
1,849,840
Adjusted balance
2,055,979
1,849,840
Profit for the year
197,760
206,139
At the end of the year
2,253,739
2,055,979
25
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:
2024
2023
£
£
Within one year
130,700
113,078
Between two and five years
237,571
224,733
In over five years
11,750
35,250
380,021
373,061
26
Capital commitments
Amounts contracted for but not provided in the financial statements:
2024
2023
£
£
Acquisition of tangible fixed assets
19,003
-
27
Ultimate controlling party
The company is a 100% subsidiary of Temperature Control Holdings Limited. The ultimate parent company is Temperature Control Holdings Limited. The registered office of both Temperature Control Limited and Temperature Control Holdings Limited is Walker House Chorlton Street, Old Trafford, Manchester, England, M16 9HN.
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