Registered number: 06753929
FOR THE YEAR ENDED 31 DECEMBER 2024
BORTHWICK HEATING INSULATION UK LTD
COMPANY INFORMATION
BORTHWICK HEATING INSULATION UK LTD
CONTENTS
BORTHWICK HEATING INSULATION UK LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
Borthwick Heating Insulation UK Ltd is a specialist in the installation of energy-efficiency measures, delivering large-scale projects under government-backed energy schemes.
The board is pleased to report that the company experienced another year of strong growth, with turnover increasing to £64.2 million and a profit before tax of £10.0 million . Net assets at £21.9 million, supported by robust cash reserves (£14.6 million) show a strengthened balance sheet. This growth reflects successful contract delivery, continued demand for energy-efficiency improvements, and the company’s ability to scale operations to meet market opportunities.
The directors recognise that, as with any organisation, the company is exposed to risks and uncertainties, including:
Regulatory & Policy Risk – As operations are closely aligned with government energy-efficiency initiatives, changes in legislation or funding mechanisms could impact future revenue streams.
Operational Risk – Scaling operations brings challenges around workforce capacity, supply chain resilience, and maintaining quality and compliance standards.
Financial Risk – Although the company maintains strong cash reserves, careful management of working capital and contract margins remains a priority.
Fraud and Compliance Risk – The company has formal procedures in place to mitigate fraud risk through internal controls, segregation of duties, and independent audits.
These risks are regularly reviewed by management, and mitigation measures are embedded within the company’s risk management framework.
FUTURE OUTLOOK
The directors are confident about the company’s future prospects. Growth in the energy-efficiency and retrofit sector remains strong, driven by rising energy costs, government net-zero commitments, and consumer demand for sustainable housing solutions.
The company plans to:
• Consolidate its market position in large-scale insulation and heating contracts.
• Invest further in workforce development and training to maintain service quality at scale.
• Explore opportunities for diversification into complementary renewable technologies.
• Maintain financial resilience through prudent cost management and retention of strong cash reserves.
GOING CONCERN
The directors have considered the company’s financial position, forecasts, and principal risks. Given the strong balance sheet, cash reserves, and ongoing contracted work, they are satisfied that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the financial
statements have been prepared on a going concern basis.
Regulatory & Policy Risk – As operations are closely aligned with government energy-efficiency initiatives, changes in legislation or funding mechanisms could impact future revenue streams.
Operational Risk – Scaling operations brings challenges around workforce capacity, supply chain resilience, and maintaining quality and compliance standards.
Financial Risk – Although the company maintains strong cash reserves, careful management of working capital and contract margins remains a priority.
Fraud and Compliance Risk – The company has formal procedures in place to mitigate fraud risk through internal controls, segregation of duties, and independent audits.
These risks are regularly reviewed by management, and mitigation measures are embedded within the company’s risk management framework.
FUTURE OUTLOOK
The directors are confident about the company’s future prospects. Growth in the energy-efficiency and retrofit sector remains strong, driven by rising energy costs, government net-zero commitments, and consumer demand for sustainable housing solutions.
The company plans to:
• Consolidate its market position in large-scale insulation and heating contracts.
• Invest further in workforce development and training to maintain service quality at scale.
• Explore opportunities for diversification into complementary renewable technologies.
• Maintain financial resilience through prudent cost management and retention of strong cash reserves.
GOING CONCERN
The directors have considered the company’s financial position, forecasts, and principal risks. Given the strong balance sheet, cash reserves, and ongoing contracted work, they are satisfied that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the financial
statements have been prepared on a going concern basis.
Page 1
BORTHWICK HEATING INSULATION UK LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
In accordance with Section 172 of the Companies Act 2006, the directors confirm that they have acted in good faith to promote the success of the company for the benefit of its stakeholders. Key considerations include:
• Supporting employees through training, health & safety initiatives, and career progression.
• Delivering quality and compliant services to customers.
• Engaging with suppliers and subcontractors on fair terms.
• Operating with integrity and minimising environmental impact in line with the company’s sustainability objectives.
• Supporting employees through training, health & safety initiatives, and career progression.
• Delivering quality and compliant services to customers.
• Engaging with suppliers and subcontractors on fair terms.
• Operating with integrity and minimising environmental impact in line with the company’s sustainability objectives.
This report was approved by the board and signed on its behalf.
Page 2
BORTHWICK HEATING INSULATION UK LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙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 to 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.
The profit for the year, after taxation, amounted to £7,347,808 (2023 - £5,241,911).
Dividends paid in the year £Nil (2023: £220,000)
The directors who served during the year were:
Page 3
BORTHWICK HEATING INSULATION UK LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The company's greenhouse gas emissions and energy consumption for the year are as follows:
Total energy consumption:
Electricity consumption - 103,607.5 kWh
Company vehicle fuels (optional kWh equivalent) - approximately 3,798,019 kWh
Total estimated energy use - 3,901,627 kWh (3.90 GWh)
Total energy consumption:
Electricity consumption - 103,607.5 kWh
Company vehicle fuels (optional kWh equivalent) - approximately 3,798,019 kWh
Total estimated energy use - 3,901,627 kWh (3.90 GWh)
Methodology and conversion factors:
Emission factors are taken from the UK Government 2024 GHG Conversion Factors for Company Reporting. Petrol and diesel figures reflect average biofuel blends. Electricity is reported on a location-based basis using the 2024 UK grid average factor (0.20705 kgCO2e/kWh).
Emission factors are taken from the UK Government 2024 GHG Conversion Factors for Company Reporting. Petrol and diesel figures reflect average biofuel blends. Electricity is reported on a location-based basis using the 2024 UK grid average factor (0.20705 kgCO2e/kWh).
During the reporting year, the company continued to focus on energy efficiency and carbon reduction measures. Actions included ongoing monitoring of vehicle fuel consumption, optimising route planning to reduce mileage, and encouraging staff awareness around energy-saving practices. Further improvements are being assessed for 2025.
Intensity measures:
Emissions per £m turnover - 14.30 tCO2e/£m (based on turnover of £64,000,000)
Emissions per employee (FTE) - 6.02 tCO2e/FTE (based on 152 employees)
Emissions per £m turnover - 14.30 tCO2e/£m (based on turnover of £64,000,000)
Emissions per employee (FTE) - 6.02 tCO2e/FTE (based on 152 employees)
Page 4
BORTHWICK HEATING INSULATION UK LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The auditors, Waltons Business Advisers Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
Page 5
BORTHWICK HEATING INSULATION UK LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BORTHWICK HEATING INSULATION UK LTD
We have audited the financial statements of Borthwick Heating Insulation UK Ltd (the 'company') for the year ended 31 December 2024, which comprise the Statement of Income and Retained Earnings, the Analysis of Net Debt, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
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.
Page 6
BORTHWICK HEATING INSULATION UK LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BORTHWICK HEATING INSULATION UK LTD (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
In our opinion, based on the work undertaken in the course of the 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.
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.
Page 7
BORTHWICK HEATING INSULATION UK LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BORTHWICK HEATING INSULATION UK LTD (CONTINUED)
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 Auditors' 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. 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:
We gained an understanding of the legal and regulatory framework applicable to the company and the area in which it operated, and designed procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or international misrepresentations, or through collusion.
We identified the greatest potential for fraud in the following areas: existence and timing of recognition of income, fraudulent expenditureand management override of controls (especially in the posting of journals). We discussed these risks with management and designed audit procedures as follows:
• to test the timing and existence of revenue,
• to vouch a sample of expenditure for authorisation and to invoices to confirm a genuine expense.
• to review journals posted to key control accounts or posted around the year end, to look for potential "window dressing" as well as looking at a sample throughout the year.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
Page 8
BORTHWICK HEATING INSULATION UK LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BORTHWICK HEATING INSULATION UK LTD (CONTINUED)
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 Auditors' 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.
PREDECESSOR AUDITOR
The financial statements for the year ended 31 December 2023 were audited by another auditor who expressed an unmodified opinion on those financial statements on 30 September 2024. We do not assume any responsibility for the audit work performed by the predecessor auditor.
The financial statements for the year ended 31 December 2023 were audited by another auditor who expressed an unmodified opinion on those financial statements on 30 September 2024. We do not assume any responsibility for the audit work performed by the predecessor auditor.
for and on behalf of
Chartered Accountants
Statutory Auditors
Maritime House
Harbour Walk
The Marina
Teesside
TS24 0UX
Page 9
BORTHWICK HEATING INSULATION UK LTD
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 10
BORTHWICK HEATING INSULATION UK LTD
REGISTERED NUMBER: 06753929
BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 15 to 28 form part of these financial statements.
Page 11
BORTHWICK HEATING INSULATION UK LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 12
BORTHWICK HEATING INSULATION UK LTD
Page 13
BORTHWICK HEATING INSULATION UK LTD
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 14
BORTHWICK HEATING INSULATION UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The company is a private company limited by shares, registered in England and Wales.
The address of the registered office is:
26 Burn Road
Hartlepool
England
TS25 1PL
The address of the registered office is:
26 Burn Road
Hartlepool
England
TS25 1PL
2.ACCOUNTING POLICIES
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies.
The following principal accounting policies have been applied:
Revenue from the household jobs and third party installations is recognised when the job is completed and an application for payment has been made to the funding provider. A provision for credit notes in relation to the applications for payment is included in the financial statements.
Page 15
BORTHWICK HEATING INSULATION UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.ACCOUNTING POLICIES (CONTINUED)
Page 16
BORTHWICK HEATING INSULATION UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.ACCOUNTING POLICIES (CONTINUED)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Page 17
BORTHWICK HEATING INSULATION UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.ACCOUNTING POLICIES (CONTINUED)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
The company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.
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 trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Basic 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 the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate
Page 18
BORTHWICK HEATING INSULATION UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.ACCOUNTING POLICIES (CONTINUED)
method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
The whole of the turnover is attributable to the installation of energy-efficiency measures.
Page 19
BORTHWICK HEATING INSULATION UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 20
BORTHWICK HEATING INSULATION UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 21
BORTHWICK HEATING INSULATION UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
10.TAXATION (CONTINUED)
There were no factors that may affect future tax charges.
Page 22
BORTHWICK HEATING INSULATION UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
Page 23
BORTHWICK HEATING INSULATION UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Included within other debtors due within one year is a loan to Scott Borthwick, a director, amounting to £8,294,871 (2023 - £5,411,834). The maximum amount of the loan at any time in the year was £8,294,871. Amounts repaid during the year totalled £NIL. The main conditions were as follows:
No interest was charged on the loan amount.
Page 24
BORTHWICK HEATING INSULATION UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Hire purchase is secured on the assets to which it relates.
Page 25
BORTHWICK HEATING INSULATION UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 26
BORTHWICK HEATING INSULATION UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
Profit and loss account
Page 27
BORTHWICK HEATING INSULATION UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
A prior year adjustment has been made to remove land and buildings which were not owned by the company but personally by the director. This has reduced the value of tangible assets and increased the value of the director's loan account in the prior year by £910,148.
The prior year profit and loss comparatives have been restated in order to reclassify costs in line with the figures for 2024. The restatement does not change the profit for the year, or the tax liability.
The prior year debtors and creditors comparative figures have been restated, due to other debtors balances previously being offset against other creditor balances in error. This restatement does not change the profit for the year, or the tax liability.
Employee numbers have been restated to accurately reflect the split of admin and direct staff.
The prior year profit and loss comparatives have been restated in order to reclassify costs in line with the figures for 2024. The restatement does not change the profit for the year, or the tax liability.
The prior year debtors and creditors comparative figures have been restated, due to other debtors balances previously being offset against other creditor balances in error. This restatement does not change the profit for the year, or the tax liability.
Employee numbers have been restated to accurately reflect the split of admin and direct staff.
The company contributes to a defined contribution scheme. The total pension charge during the year amounted to £107,102. Included within other creditors is an amount of £9,299 (1 January 2024: £12,294) in relation to pension contributions.
Page 28