Company Registration No. 02044326 (England and Wales)
ENERGY COST ADVISORS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2017
PAGES FOR FILING WITH REGISTRAR
ENERGY COST ADVISORS LIMITED
COMPANY INFORMATION
Directors
Mr S G W Mellor
Mrs P M Mellor
Mr S E Silverwood
Company number
02044326
Registered office
ECA House, 1 Dronfield Court
Civic Centre
Dronfield
S18 1NQ
Accountants
Knowles Warwick Limited
183 Fraser Road
Sheffield
S8 0JP
Business address
ECA House, 1 Dronfield Court
Civic Centre
Dronfield
S18 1NQ
ENERGY COST ADVISORS LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 10
ENERGY COST ADVISORS LIMITED
BALANCE SHEET
AS AT
31 JULY 2017
31 July 2017
1
2017
2016
Notes
£
£
£
£
Fixed assets
Tangible assets
3
267,479
288,751
Investments
4
11
11
267,490
288,762
Current assets
Debtors
7
465,365
300,152
Cash at bank and in hand
338,760
951,236
804,125
1,251,388
Creditors: amounts falling due within one year
8
(620,595)
(1,293,797)
Net current assets/(liabilities)
183,530
(42,409)
Total assets less current liabilities
451,020
246,353
Creditors: amounts falling due after more than one year
9
(181,247)
-
Provisions for liabilities
(8,037)
(11,260)
Net assets
261,736
235,093
Capital and reserves
Called up share capital
10
5,177
5,177
Revaluation reserve
11
155,044
155,044
Capital redemption reserve
1,233
1,233
Profit and loss reserves
100,282
73,639
Total equity
261,736
235,093
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 31 July 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
T
he directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
T
he members have 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.
ENERGY COST ADVISORS LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 JULY 2017
31 July 2017
2
The financial statements were approved by the board of directors and authorised for issue on 5 April 2018 and are signed on its behalf by:
Mr S G W Mellor
Director
Company Registration No. 02044326
ENERGY COST ADVISORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2017
3
1
Accounting policies
Company information
Energy Cost Advisors Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
ECA House, 1 Dronfield Court, Civic Centre, Dronfield, S18 1NQ.
The principal activity of the company continued to be that of energy consultants.
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.
These financial statements for the year ended 31 July 2017
are the
first
financial statements of Energy Cost Advisors Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 August 2015. An explanation of how transition to FRS 102 has affected the reported financial position and financial performance is given in note 15.
The company has taken advantage of the exemption under section
399
of the
Companies Act 2006 not to prepare consolidated accounts
, on the basis that the group of which this is the parent qualifies as a small group
. The financial statements present information about the company as an individual entity and not about its group
.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
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 recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings Freehold
2% on cost
Fixtures, fittings & equipment
10% and 33% on cost
Computer equipment
10% and 33% on cost
ENERGY COST ADVISORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2017
1
Accounting policies
(Continued)
4
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
.
1.4
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.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
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.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Cash at bank and in hand
Cash at bank and in hand
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.
ENERGY COST ADVISORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2017
1
Accounting policies
(Continued)
5
1.7
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.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts 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. A
m
ounts 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.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
ENERGY COST ADVISORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2017
1
Accounting policies
(Continued)
6
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 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.
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 income 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 asset are consumed.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 35 (2016 - 41).
ENERGY COST ADVISORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2017
7
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 August 2016 and 31 July 2017
245,000
425,765
670,765
Depreciation and impairment
At 1 August 2016
19,192
362,822
382,014
Depreciation charged in the year
4,900
16,372
21,272
At 31 July 2017
24,092
379,194
403,286
Carrying amount
At 31 July 2017
220,908
46,571
267,479
At 31 July 2016
225,808
62,943
288,751
4
Fixed asset investments
2017
2016
£
£
Investments
11
11
Investments in subsidiary undertakings are measured at cost less impairment. The method of valuation has been adopted due to a reliable market value being onerous to assess due to the shares not being listed.
Investments in associated undertakings are measured using the cost model.
5
Subsidiaries
Details of the company's subsidiaries at 31 July 2017 are as follows:
Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
The Green Consultancy Limited
England and Wales
Environmental consulting activities
Ordinary
100.00
6
Associates
Details of the company's associates at 31 July 2017 are as follows:
Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
Dronfield Court Management Limited
England and Wales
Property management
Ordinary
25.00
ENERGY COST ADVISORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2017
8
7
Debtors
2017
2016
Amounts falling due within one year:
£
£
Trade debtors
297,639
283,846
Corporation tax recoverable
28,378
-
Amounts owed by group undertakings
50,979
-
Other debtors
88,369
16,306
465,365
300,152
8
Creditors: amounts falling due within one year
2017
2016
£
£
Bank loans and overdrafts
10,758
-
Trade creditors
322,967
1,012,690
Corporation tax
7,224
72,640
Other taxation and social security
90,270
66,200
Other creditors
189,376
142,267
620,595
1,293,797
9
Creditors: amounts falling due after more than one year
2017
2016
£
£
Bank loans and overdrafts
181,247
-
Amounts included above which fall due after five years are as follows:
Payable by instalments
(134,531)
-
10
Called up share capital
2017
2016
£
£
Ordinary share capital
Issued and fully paid
50,146 Ordinary A of 10p each
5,015
5,015
1,618 Ordinary B of 10p each
162
162
5,177
5,177
11
Revaluation reserve
ENERGY COST ADVISORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2017
11
Revaluation reserve
(Continued)
9
2017
2016
£
£
At beginning and end of year
155,044
155,044
12
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2017
2016
£
£
27,680
53,000
13
Related party transactions
Amounts owed to/by related parties
The following amounts were outstanding at the reporting end date:
Amount owed to
Amounts owed by
2017
2016
2017
2016
£
£
£
£
The Green Consultancy Limited
50,979
The company pays rent to the Energy Tariff Negotiators Retirement Benefit Scheme, of which two of the directors are trustees. The rental payments to the scheme during the year amounted to £22,000 (2016 - £22,000).
The company also makes pension contributions to the scheme on behalf of one of the directors. The total contributions to the scheme amounted to £3,600 (2016 - £3,600).
Included within debtors is an amount due from the Energy Tariff Negotiators Retirement Benefit Scheme of £265 (2016 - £265).
14
Directors' transactions
L
oans have been granted by the company to its directors as follows:
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Mr S G W Mellor - Loan
2.75
80,124
136,937
2,173
(139,150)
80,084
Mr S E Silverwood - Loan
2.75
11,402
80,723
236
(86,345)
6,016
91,526
217,660
2,409
(225,495)
86,100
ENERGY COST ADVISORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2017
14
Directors' transactions
(Continued)
10
Included within creditors in an amount due to key management personnel amounting to £11,022 (2016 - £996). This loan is interest free and repayable on demand.
Dividends totalling £273,778 (2016 - £210,427) were paid in the year in respect of shares held by the company's directors.
15
Reconciliations on adoption of FRS 102
Reconciliations and descriptions of the effect of the transition to FRS 102 on; (i) equity at the date of transition to FRS 102; (ii) equity at the end of the comparative period; and (iii) profit or loss for the comparative period reported under previous UK GAAP are given below.
Reconciliation of equity
1 August
31 July
2015
2016
Notes
£
£
Equity as reported under previous UK GAAP
221,690
243,549
Adjustments arising from transition to FRS 102:
Holiday pay accrual
A
(7,611)
(8,456)
Equity reported under FRS 102
214,079
235,093
Reconciliation of profit for the financial period
2016
Notes
£
Profit as reported under previous UK GAAP
232,286
Adjustments arising from transition to FRS 102:
Holiday pay accrual
A
(845)
Profit reported under FRS 102
231,441
Notes to reconciliations on adoption of FRS 102
A. Holiday Pay Accrual
Accruals for holiday pay have been accounted for in line with FRS102 requirements.
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