Company Registration No. 01504862 (England and Wales)
ENVIROTEC LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2020
PAGES FOR FILING WITH REGISTRAR
ENVIROTEC LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
ENVIROTEC LIMITED
BALANCE SHEET
AS AT 29 FEBRUARY 2020
29 February 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
3
1,459,170
1,309,901
Investment properties
4
610,000
540,000
2,069,170
1,849,901
Current assets
Stocks
153,261
150,273
Debtors
5
1,859,858
1,718,443
Cash at bank and in hand
721
18,925
2,013,840
1,887,641
Creditors: amounts falling due within one year
6
(485,243)
(451,648)
Net current assets
1,528,597
1,435,993
Total assets less current liabilities
3,597,767
3,285,894
Provisions for liabilities
(62,118)
(44,704)
Net assets
3,535,649
3,241,190
Capital and reserves
Called up share capital
10,000
10,000
Revaluation reserve
8
469,486
291,939
Investment property revaluation reserve
9
412,935
360,349
Distributable profit and loss reserves
2,643,228
2,578,902
Total equity
3,535,649
3,241,190
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 29 February 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
ENVIROTEC LIMITED
BALANCE SHEET (CONTINUED)
AS AT 29 FEBRUARY 2020
29 February 2020
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 14 April 2020 and are signed on its behalf by:
C Lister
Director
Company Registration No. 01504862
ENVIROTEC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2020
- 3 -
1
Accounting policies
Company information
Envirotec Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Desborough Park Road, High Wycombe, Buckinghamshire, United Kingdom, HP12 3BX.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
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 and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts. Goods and services are recognised in the financial statements as they are provided
.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts 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 are recoverable.
1.3
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 calculated to write down the cost or valuation less estimated residual value of all tangible fixed assets, except freehold land, over their expected useful lives. The rates and periods generally applicable are:
Freehold land and buildings
straight line over 50 years
Plant and machinery
15% on reducing balance
Fixtures, fittings & equipment
15% on reducing balance
Motor vehicles
25% straight line
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
.
ENVIROTEC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2020
1
Accounting policies
(Continued)
- 4 -
1.4
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 a
t
the reporting end date.
Changes in fair value are recognised in profit or loss.
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
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.
1.6
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.
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.
1.7
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.
1.8
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
.
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
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
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
ENVIROTEC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2020
1
Accounting policies
(Continued)
- 5 -
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
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.
Deferred tax
Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.
No provision has been made for deferred tax on gains recognised on revaluing property to its market value as account is taken of any indexation allowance arising on the gain.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
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 lease
s
asset are consumed.
Rentals payable under operating leases are charged against income on a straight line basis over the lease term.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
ENVIROTEC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2020
- 6 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Total
27
23
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 March 2019
1,240,000
1,077,813
2,317,813
Additions
-
4,328
4,328
Revaluation
135,000
-
135,000
At 29 February 2020
1,375,000
1,082,141
2,457,141
Depreciation and impairment
At 1 March 2019
38,334
969,578
1,007,912
Depreciation charged in the year
20,052
19,522
39,574
Revaluation
(49,515)
-
(49,515)
At 29 February 2020
8,871
989,100
997,971
Carrying amount
At 29 February 2020
1,366,129
93,041
1,459,170
At 28 February 2019
1,201,666
108,235
1,309,901
The value of the freehold property has been arrived at on the basis of a valuation carried out in September 2019 by Chartered Surveyors, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
4
Investment property
2020
£
Fair value
At 1 March 2019
540,000
Revaluations
70,000
At 29 February 2020
610,000
ENVIROTEC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2020
4
Investment property
(Continued)
- 7 -
The fair value of the investment properties has been arrived at on the basis of a valuation carried out in September 2019 by Chartered Surveyors, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
The historical cost of the properties was £144,677.
5
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
159,352
141,717
Amounts owed by group undertakings
1,566,022
1,475,106
Other debtors
134,484
101,620
1,859,858
1,718,443
6
Creditors: amounts falling due within one year
2020
2019
£
£
Bank loans and overdrafts
95,587
-
Trade creditors
179,925
276,082
Taxation and social security
65,455
94,394
Other creditors
144,276
81,172
485,243
451,648
7
Provisions for liabilities
2020
2019
£
£
Deferred tax liabilities
62,118
44,704
ENVIROTEC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2020
- 8 -
8
Revaluation reserve
2020
2019
£
£
At beginning of year
291,939
298,021
Revaluation surplus arising in the year
184,514
-
Depreciation on revaluation transferred to profit and loss account
(6,967)
(6,082)
At end of year
469,486
291,939
The revaluation reserve relates to the company's freehold property used within the business.
9
Investment property revaluation reserve
2020
2019
£
£
At the beginning of the year
360,349
348,323
Non distributable profits in the year
52,586
12,026
At the end of the year
412,935
360,349
10
Financial commitments, guarantees and contingent liabilities
Barclays Bank
Plc hold
s
a
fixed and floating charge
, dated
7 November 2016, 14 December 2016 and 21 December 2016
, over the assets of the company
. Barclays Bank Plc has a first legal charge over all the company's freehold properties.
The company is party to cross guarantees given by group companies to
Barclays Bank Plc
.
In particular, this cross-guarantee covers bank loans of £879,670 as at 29 February 2020 provided by Barclays Bank Plc to Crossco (820) Limited, the parent company.
The Company, together with Crossco (820) Limited, is a member of a VAT group under which both members are jointly and severally liable.
11
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
During the year, the company was charged a management charge of £165,000 (2019: £190,000) in respect of services provided by Crossco (820) Limited, its parent company. At 29 February 2020, the amount owed by Crossco (820) Limited was £1,566,022 (2019: £1,475,106).
12
Parent company
The parent company is Crossco (820) Limited, a company registered in England and Wales.