REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 |
FOR |
AIRCO REFRIGERATION AND AIRCONDITIONING |
LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 |
FOR |
AIRCO REFRIGERATION AND AIRCONDITIONING |
LIMITED |
AIRCO REFRIGERATION AND AIRCONDITIONING |
LIMITED (REGISTERED NUMBER: 03418561) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Income Statement | 10 |
Other Comprehensive Income | 11 |
Balance Sheet | 12 |
Statement of Changes in Equity | 13 |
Cash Flow Statement | 14 |
Notes to the Cash Flow Statement | 15 |
Notes to the Financial Statements | 16 |
AIRCO REFRIGERATION AND AIRCONDITIONING |
LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MARCH 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
Park House |
200 Drake Street |
Rochdale |
Lancashire |
OL16 1PJ |
AIRCO REFRIGERATION AND AIRCONDITIONING |
LIMITED (REGISTERED NUMBER: 03418561) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
The directors present their strategic report for the year ended 31 March 2023. |
Once again the Company continues to experience significant growth year on year. The core services remain - Consultancy, installation, maintenance & repair of air conditioning refrigeration, plumbing, heating, and renewables. |
The increased and strengthened management team continues to out perform its targets and the Company expansion program. |
Growth has been experienced in all sectors, and we have seen more high value projects from a variety of clients, some existing and some new. Growth has also been seen with the expansion of a permanent presence in South Yorkshire with new premises and staff, expanding our original investment into the area. |
Delivery of our services and our back-office functions have further developed with adoption of greater automation and cloud hosted services. This step has allowed remote working capability and a more robust platform on which we can scale up with greater ease. |
Government guidance on buildings continues to be a major factor for many clients and its incentives for renewables has stimulated growth along with the general shift, headed by larger corporations and government bodies, being taken to reduce their carbon footprints. |
Our field-based team continues to expand to meet the demands of present and on-going market needs. Fleet expenditure has risen in line with staff growth. |
Once again the Company has added several large clients on nationwide agreements, this does impact in both a positive and a negative way. On the positive side it allows us to grow the workforce and benefit from economies of scale. Negative impact is that the early stages of large fleets of assets demand more 'front loaded' cost, administration and understanding. |
AIRCO REFRIGERATION AND AIRCONDITIONING |
LIMITED (REGISTERED NUMBER: 03418561) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
REVIEW OF BUSINESS |
Our finance team are very adaptable and focused and manage debt with firm control and use automated reminder systems and paperless billing. Authorisation platforms have changed to both meet the growth in purchasing whilst ensuring approvals are routed strategically for audit and review. |
R&D is recorded and managed each year, we also engage with a specialist R&D claims partner to ensure we claim correctly and accurately each year. |
We continue to have a strong relationships with our funding partners and often review services and opportunities in line with our needs through the growth. |
The board highlighted several strategic targets, data centres, NHS, business critical businesses and the local authority ASHP contract and additional housing partnership agreements as the renewables department is strong and very effective in this sector. |
By introducing a ventilation manager/designer, accompanied by a CAD specialist we have a portfolio of service which we can offer to all our clients. |
The client spend is spread quite widely with no one client accounting for more than 7% of our income. |
A good proportion of our business remains in the government sector which ensures reliable payments and often sooner than terms seen in the private sector. |
The current larger clients, with significant spend include: |
- Mitsubishi Chemicals |
- Priory Group |
- Sheffield University |
- Poundland |
- East Riding of Yorkshire Council |
- Virgin Media Group |
- Anchor Housing |
- West Hertfordshire Hospitals Trust |
- Police Authorities |
The order book continues year on year to be stronger than the last ensuring future and further growth. |
Demand in our sector is still very strong and our size and coverage places us well to capitalize from this. |
The Business monitors its department performance with KPI's appropriate to each team, reviewed annually. |
The weekly sales review meeting includes: |
- reviews weekly, monthly, year to date and comparison on previous years |
- Nature of enquiries and volume against previous year |
- Strategic and tactical guidance from the Directors on significant opportunities |
The quarterly Sales Review Covers: |
- Sales revenue |
- Margins |
- Team development |
- Growth in existing client base |
- New Client growth |
The annual Sales plan Reviews and sets targets for: |
- Department minimum standards - sales, installs, PPM, TM44 (this list is not exhaustive) |
- Margin expectation |
- Strategic targets |
Operational reviews are undertaken monthly to review |
- Strategic client profitability |
- Resource demands |
The Finance Team monitor and target: |
- Monthly invoice value |
- Work in Progress |
- Outstanding debt be period |
- Debtor days |
- Credit cards - spend and allocation |
- Stock and equipment allocation |
The Operational Hubs monitor and target: |
- Response |
- First time fix |
- Warranty |
- Work in progress |
- A host of client specific KPI's |
HR Monitor and report: |
- Absence |
- Training |
- H&S |
- Recruitment |
AIRCO REFRIGERATION AND AIRCONDITIONING |
LIMITED (REGISTERED NUMBER: 03418561) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
- Any Disciplinary actions |
PRINCIPAL RISKS AND UNCERTAINTIES |
The industry is in high demand and there is no sign of this changing in the medium to long term, but we should always be aware that legislation, changes in power generation and global government policy could impact our industry. |
Renewables are growing rapidly, and we are aware that there are still huge opportunities in this sector. |
Staffing remains challenging as demand still outstrips supply, this places an upward pressure on wages and conditions, however, the current year has seen a level of stabilisation. |
During the year there was an initial cost of different funding, increasing the finance costs and resultant effect on profit, however this has been addressed in the current year. |
OTHER INFORMATION AND EXPLANATIONS |
During the previous financial year Airco endured some major challenges with the new computer systems and cyber attack, these have now been totally resolved and strategically securely dealt with. |
ON BEHALF OF THE BOARD: |
AIRCO REFRIGERATION AND AIRCONDITIONING |
LIMITED (REGISTERED NUMBER: 03418561) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2023 |
The directors present their report with the financial statements of the company for the year ended 31 March 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of installation and servicing of airconditioning and refrigeration systems. |
DIVIDENDS |
No interim dividends were paid during the year ended 31 March 2023. |
The directors recommend final dividends per share as follows: |
Ordinary A 1 shares |
Ordinary B 1 shares |
Ordinary C 1 shares |
The total distribution of dividends for the year ended 31 March 2023 will be £ |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AIRCO REFRIGERATION AND AIRCONDITIONING |
LIMITED (REGISTERED NUMBER: 03418561) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2023 |
AUDITORS |
The auditors, Wyatt Morris Golland Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
AIRCO REFRIGERATION AND AIRCONDITIONING |
LIMITED |
Qualified opinion |
We have audited the financial statements of Airco Refrigeration and Airconditioning Limited (the company) for the year ended 31 March 2023 which comprise the Income Statement, Balance Sheet and notes to the Financial Statements including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). |
In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion section, the financial statements: |
- Give a true and fair view of the state of the company's affairs as at 31 December 2022 and of its loss for the year then ended; |
- Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting practice; and |
- Have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We were not appointed as auditor of the company until after 31 March 2023 and therefore did not attend the stock take at the end of the year. Consequently we were unable to confirm the physical quantities of inventories and cannot therefore provide assurance to the accuracy at that date. However, from analytical review of both the income statement and balance sheet, we have not identified any anomalies that would suggest inventories were incorrectly stated. The profit margins remain consistent with prior years and post year end management information and all other testing that has been completed has been satisfactory. |
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 qualified 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
AIRCO REFRIGERATION AND AIRCONDITIONING |
LIMITED |
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 Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, 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 Statement of Directors' Responsibilities set out on page five, 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 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. |
Auditors' 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 a Report of the Auditors 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: |
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience; |
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation; |
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations |
To address the risk of fraud through management bias and override of controls, we: |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- tested journal entries to identify unusual transactions; |
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
- investigated the rationale behind significant or unusual transactions. |
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 Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
AIRCO REFRIGERATION AND AIRCONDITIONING |
LIMITED |
Use of our 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 a Report of the Auditors 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. |
for and on behalf of |
Statutory Auditors |
Park House |
200 Drake Street |
Rochdale |
Lancashire |
OL16 1PJ |
AIRCO REFRIGERATION AND AIRCONDITIONING |
LIMITED (REGISTERED NUMBER: 03418561) |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
368,549 | 365,313 |
Other operating income |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
450,853 | 436,029 |
Gain/loss on revaluation of investment property | 43,900 | - |
494,753 | 436,029 |
Interest payable and similar expenses | 6 |
PROFIT BEFORE TAXATION |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL YEAR |
AIRCO REFRIGERATION AND AIRCONDITIONING |
LIMITED (REGISTERED NUMBER: 03418561) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME |
Revaluation reserve |
Fair value reserve |
Revaluation depreciation transfer |
Retained earnings reserve transfer | ( |
) |
Income tax relating to components of other comprehensive income |
( |
) |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
AIRCO REFRIGERATION AND AIRCONDITIONING |
LIMITED (REGISTERED NUMBER: 03418561) |
BALANCE SHEET |
31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
Investment property | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 16 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 20 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Revaluation reserve | 22 |
Fair value reserve | 22 |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
AIRCO REFRIGERATION AND AIRCONDITIONING |
LIMITED (REGISTERED NUMBER: 03418561) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2023 |
Called up | Fair |
share | Retained | Revaluation | value | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 April 2021 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2022 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2023 |
AIRCO REFRIGERATION AND AIRCONDITIONING |
LIMITED (REGISTERED NUMBER: 03418561) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid | ( |
) | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
New loans in year |
Loan repayments in year | ( |
) | ( |
) |
Capital repayments in year | ( |
) | ( |
) |
Amount withdrawn by directors | (88,758 | ) | (7,952 | ) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year | 2 | 228,915 |
Cash and cash equivalents at end of year | 2 | 455,412 | 328,757 |
AIRCO REFRIGERATION AND AIRCONDITIONING |
LIMITED (REGISTERED NUMBER: 03418561) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) |
Gain on revaluation of fixed assets | (43,900 | ) | - |
Increase in deferred tax | - | 555,552 |
Finance costs | 218,687 | 102,076 |
Finance income | (646 | ) | (6 | ) |
820,041 | 1,458,023 |
Increase in stocks | ( |
) | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 March 2023 |
31.3.23 | 1.4.22 |
£ | £ |
Cash and cash equivalents | 455,412 | 328,757 |
Year ended 31 March 2022 |
31.3.22 | 1.4.21 |
£ | £ |
Cash and cash equivalents | 328,757 | 228,915 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.4.22 | Cash flow | At 31.3.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 328,757 | 126,655 | 455,412 |
328,757 | 455,412 |
Debt |
Finance leases | (1,387,939 | ) | (74,717 | ) | (1,462,656 | ) |
Debts falling due within 1 year | (145,567 | ) | (923,618 | ) | (1,069,185 | ) |
Debts falling due after 1 year | (1,135,129 | ) | 144,740 | (990,389 | ) |
(2,668,635 | ) | (853,595 | ) | (3,522,230 | ) |
Total | (2,339,878 | ) | (726,940 | ) | (3,066,818 | ) |
AIRCO REFRIGERATION AND AIRCONDITIONING |
LIMITED (REGISTERED NUMBER: 03418561) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
1. | STATUTORY INFORMATION |
Airco Refrigeration And Airconditioning Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Preparation of consolidated financial statements |
The company havs taken advantage of Companies Act 2006 section 405, exempting the company from being required to prepare group accounts on the basis that no subsidiary undertaking needs to be included in the consolidation. Under Companies Act 2006 section 405, the companies dormant subsidiary undertakings are excluded from being consolidated on the grounds of materiality. |
Significant judgements and estimates |
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 int he 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. |
The estimates and assumptions which have a significant risk of causing material adjustment to the carrying amount of assets and liabilities are as follows: |
Stock valuation |
Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell. |
The company's stock valuation is based on the experience and knowledge of management, and their in depth knowledge of the cost of their goods. They make suitable provision as necessary to provide for aging and refitted stock. |
Depreciation |
The depreciation policy has been set according to management's experience of the useful lives of a typical asset in each category, something which is reviewed annually. It is not considered practical to use a per unit basis to allocate depreciation without undue cost and therefore amounts are charged annually. The depreciation charged during the year was £370,032 (2022:£466,448) which the directors feel is a fair reflection of the benefits derived from the consumption of the tangible fixed assets in use during the period. |
Changes in accounting policies |
During the year, the company changed the accounting policy in respect of depreciation of motor vehicles. The 20% straight line policy left vehicles fully written off in the balance sheet after 5 years when value remained. It was therefore deemed more accurate to account for the depreciation at 20% reducing balance. |
In addition, the freehold property which has previously been depreciated at 2% straight line has been revalued and the company has adopted a revaluation policy moving forwards. |
AIRCO REFRIGERATION AND AIRCONDITIONING |
LIMITED (REGISTERED NUMBER: 03418561) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
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 installation 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 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 reliably estimated. 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 reliably estimated, revenue is recognised only on the extent of the expenses recognised that it is probable will be recovered. |
Rental income represents amounts receivable in respect of the rent of properties, net of VAT, and is recognised on an accrued straight line basis over the period of occupation. |
Goodwill |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
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. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing 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 and loss. Reversals of impairment losses are also recognised in profit and loss. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
AIRCO REFRIGERATION AND AIRCONDITIONING |
LIMITED (REGISTERED NUMBER: 03418561) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Directors | 4 | 3 |
Cost of sales | 170 | 149 |
Administration | 20 | 20 |
AIRCO REFRIGERATION AND AIRCONDITIONING |
LIMITED (REGISTERED NUMBER: 03418561) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
2023 | 2022 |
£ | £ |
Directors' remuneration |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
Auditors' remuneration |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loan interest |
Other interest |
Fines |
Hire purchase |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax |
Tax on profit |
AIRCO REFRIGERATION AND AIRCONDITIONING |
LIMITED (REGISTERED NUMBER: 03418561) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
7. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Utilisation of tax losses | ( |
) | ( |
) |
Extra deferred tax due to change in tax rate | 80,952 | - |
Change in tax rate effect on corporation tax | (4,515 | ) | - |
Capital allowances super deduction | (32,011 | ) | (12,950 | ) |
Over provision from prior year | (30,809 | ) | 43,862 |
Total tax charge | 88,407 | 91,334 |
Tax effects relating to effects of other comprehensive income |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation reserve | (186,261 | ) | 558,784 |
Fair value reserve | (10,975 | ) | 32,925 |
Revaluation depreciation transfer | - | 255,204 |
Retained earnings reserve transfer | ( |
) | - | (32,925 | ) |
1,011,224 | (197,236 | ) | 813,988 |
8. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary A shares of 1 each |
Final |
Ordinary B shares of 1 each |
Final |
Ordinary C share of 1 |
Final |
AIRCO REFRIGERATION AND AIRCONDITIONING |
LIMITED (REGISTERED NUMBER: 03418561) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
9. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 April 2022 |
and 31 March 2023 |
AMORTISATION |
At 1 April 2022 |
and 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
10. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1 April 2022 |
Additions |
Disposals | ( |
) | ( |
) |
Revaluations |
At 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
Revaluation adjustments | ( |
) | ( |
) |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
The net book value of tangible fixed assets held under finance leases or hire purchase contracts amounted to £1,333,202 (2022 - £1,251,040). |
Cost or valuation at 31 March 2023 is represented by: |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
Valuation in 2023 | 745,045 | - | - | - | 745,045 |
Cost | 973,655 | 326,788 | 241,831 | 2,664,207 | 4,206,481 |
1,718,700 | 326,788 | 241,831 | 2,664,207 | 4,951,526 |
During the year, the company obtained a valuation from Lawrence Hannah Property & Construction Consultants. At the year end, the directors have reviewed the valuation in line with commercial property indices. |
AIRCO REFRIGERATION AND AIRCONDITIONING |
LIMITED (REGISTERED NUMBER: 03418561) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
11. | FIXED ASSET INVESTMENTS |
Unlisted |
investments |
£ |
COST |
At 1 April 2022 |
and 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
12. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 April 2022 |
Revaluations | 43,900 |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
Fair value at 31 March 2023 is represented by: |
£ |
Valuation in 2023 | 43,900 |
Cost | 360,500 |
404,400 |
During the year, the company obtained a valuation from Lawrence Hannah Property & Construction Consultants. At the year end, the directors have reviewed the valuation in line with commercial property indices. |
13. | STOCKS |
2023 | 2022 |
£ | £ |
Work-in-progress |
Finished goods |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Other debtors |
Directors' current accounts | 393,683 | 304,925 |
Tax |
Prepayments |
AIRCO REFRIGERATION AND AIRCONDITIONING |
LIMITED (REGISTERED NUMBER: 03418561) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 17) |
Hire purchase contracts (see note 18) |
Trade creditors |
Corporation tax |
Social security and other taxes |
Other creditors |
Accrued expenses |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans (see note 17) |
Hire purchase contracts (see note 18) |
17. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - over 1 year |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
AIRCO REFRIGERATION AND AIRCONDITIONING |
LIMITED (REGISTERED NUMBER: 03418561) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Bank loans |
Bank loans are secured by fixed and floating charges over the freehold buildings and assets of the company and a personal guarantee from the directors. |
20. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax | 544,371 | 284,000 |
Deferred |
tax |
£ |
Balance at 1 April 2022 |
Charge to Income Statement during year |
Balance at 31 March 2023 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary A | 1 | 9,950 | 9,950 |
Ordinary B | 1 | 49 | 49 |
Ordinary C | 1 | 1 | 1 |
10,000 | 10,000 |
22. | RESERVES |
Fair |
Retained | Revaluation | value |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
At 1 April 2022 | 1,272,862 |
Profit for the year |
Dividends | ( |
) | ( |
) |
Revaluation in the year | - | 813,988 | - | 813,988 |
Reserve transfer | 222,279 | (255,204 | ) | 32,925 | - |
At 31 March 2023 | 2,054,477 |
AIRCO REFRIGERATION AND AIRCONDITIONING |
LIMITED (REGISTERED NUMBER: 03418561) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
23. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 31 March 2023 and 31 March 2022: |
2023 | 2022 |
£ | £ |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
The directors loan account has 0% interest being charged on it by the company. |
24. | RELATED PARTY DISCLOSURES |
2023 | 2022 |
£ | £ |
Purchases |
Management charges | 430,716 | 359,008 |
Other administration costs | 51,287 | 17,201 |
Amount due to related party |
25. | ULTIMATE CONTROLLING PARTY |
The controlling party is N Fisher. |