Company Registration No. 07616709 (England and Wales)
Netherwitton Heating Company Limited
Unaudited financial statements
for the year ended 30 April 2023
Pages for filing with the registrar
Netherwitton Heating Company Limited
Contents
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 6
Netherwitton Heating Company Limited
Statement of financial position
As at 30 April 2023
30 April 2023
1
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
370
513
Current assets
Stocks
10,500
4,000
Debtors
4
2,951
3,434
Cash at bank and in hand
7,220
7,217
20,671
14,651
Creditors: amounts falling due within one year
5
(135,445)
(149,218)
Net current liabilities
(114,774)
(134,567)
Total assets less current liabilities
(114,404)
(134,054)
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
(114,504)
(134,154)
Total equity
(114,404)
(134,054)
Netherwitton Heating Company Limited
Statement of financial position (continued)
As at 30 April 2023
30 April 2023
2
The director of the company has elected not to include a copy of the income statement within the financial statements.true
For the financial year ended 30 April 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The 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.
The financial statements were approved and signed by the director and authorised for issue on 12 December 2023
John Trevelyan
Director
Company Registration No. 07616709
Netherwitton Heating Company Limited
Notes to the financial statements
For the year ended 30 April 2023
3
1
Accounting policies
Company information
Netherwitton Heating Company Limited is a private company limited by shares incorporated in England and Wales. The registered office is Netherwitton Hall, Netherwitton, Morpeth, NE61 4NW.
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 amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The company has a net liability balance sheet total of true£114,404 (2022: £134,054), net current liabilities of £114,774 (2022: £134,567) and has made a profit after taxation of £19,650 (2022: £19,707). The company is therefore reliant on the support of the director - to whom there is a net debt repayable of £129,170 (2022: £144,170) - to meet the on-going liabilities as they fall due for repayment. The director has confirmed that he will continue to fully support the company. As a result of this, the financial statements have been prepared on a going concern basis.
1.3
Turnover
Turnover represents amounts receivable for the supply of energy, net of VAT where applicable. It is accounted for on an accruals basis.
1.4
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:
Plant and machinery
20% 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.
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.
Netherwitton Heating Company Limited
Notes to the financial statements (continued)
For the year ended 30 April 2023
1
Accounting policies (continued)
4
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.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to net realisable value.
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 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 statement of financial position 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, 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.
Netherwitton Heating Company Limited
Notes to the financial statements (continued)
For the year ended 30 April 2023
1
Accounting policies (continued)
5
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
1
1
3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 May 2022 and 30 April 2023
364,531
Depreciation and impairment
At 1 May 2022
364,018
Depreciation charged in the year
143
At 30 April 2023
364,161
Carrying amount
At 30 April 2023
370
At 30 April 2022
513
Netherwitton Heating Company Limited
Notes to the financial statements (continued)
For the year ended 30 April 2023
6
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Other debtors
2,951
3,434
5
Creditors: amounts falling due within one year
2023
2022
£
£
Corporation tax
4,262
4,048
Other creditors
131,183
145,170
135,445
149,218
6
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Included within other creditors is a balance of £129,170 (2022: £144,170) owed to the director, John Trevelyan. During the year repayments were paid to the director totalling £15,000 (2022: £35,000). The loan is interest-free and repayable on demand.