Automated Building & Energy Controls Ltd. - Period Ending 2019-03-31

Registration number: 05055271

Prepared for the registrar

Automated Building & Energy Controls Ltd.

Annual Report and Unaudited Financial Statements

for the Year Ended 31 March 2019

Automated Building & Energy Controls Ltd.

(Registration number: 05055271)
Balance Sheet as at 31 March 2019

	Note	2019  £	2018  £
Fixed assets
Tangible assets	4	364,879	353,989
Current assets
Stocks	5	430,512	100,682
Debtors	6	1,732,774	1,548,185
Cash at bank and in hand		185,813	108,293
		2,349,099	1,757,160
Creditors: Amounts falling due within one year	7	(1,687,007)	(1,582,451)
Net current assets		662,092	174,709
Total assets less current liabilities		1,026,971	528,698
Creditors: Amounts falling due after more than one year	7	(137,727)	(145,973)
Deferred tax liabilities	8	(7,423)	(5,828)
Net assets		881,821	376,897
Capital and reserves
Called up share capital		2	2
Profit and loss account		881,819	376,895
Total equity		881,821	376,897

For the financial year ending 31 March 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 13 December 2019 and signed on its behalf by:
 

M Morrall
Director

The notes on pages 2 to 9 form an integral part of these financial statements.
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Automated Building & Energy Controls Ltd.

Notes to the Financial Statements for the Year Ended 31 March 2019

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
7 Miller Court
Severn Drive
Tewkesbury Business Park
Tewkesbury
GL20 8DN

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

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Automated Building & Energy Controls Ltd.

Notes to the Financial Statements for the Year Ended 31 March 2019

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Freehold buildings	2/15% per annum straight line
Plant and machinery	15% per annum straight line
Fixtures, fittings and equipment	25/50% per annum straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

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Automated Building & Energy Controls Ltd.

Notes to the Financial Statements for the Year Ended 31 March 2019

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

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Automated Building & Energy Controls Ltd.

Notes to the Financial Statements for the Year Ended 31 March 2019

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss.
 

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was as follows:

	2019  No.	2018  No.
Average number of employees	49	44

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Automated Building & Energy Controls Ltd.

Notes to the Financial Statements for the Year Ended 31 March 2019

4

Tangible assets

	Land and buildings £	Furniture, fittings and equipment  £	Total £
Cost
At 1 April 2018	375,144	191,564	566,708
Additions	-	39,799	39,799
Disposals	-	(1,987)	(1,987)
At 31 March 2019	375,144	229,376	604,520
Depreciation
At 1 April 2018	65,845	146,874	212,719
Charge for the year	5,200	23,709	28,909
Eliminated on disposal	-	(1,987)	(1,987)
At 31 March 2019	71,045	168,596	239,641
Carrying amount
At 31 March 2019	304,099	60,780	364,879
At 31 March 2018	309,299	44,690	353,989

Included within the net book value of land and buildings above is £304,099 (2018 - £309,299) in respect of freehold land and buildings.
 

5

Stocks

	2019  £	2018  £
Raw materials and consumables	75,945	72,529
Work in progress	354,567	28,153
	430,512	100,682

6

Debtors

	Note	2019  £	2018  £
Trade debtors		624,210	1,382,147
Amounts owed by related parties	11	122,757	40,877
Other debtors		28,006	13,506
Prepayments and accrued income		957,801	111,655
		1,732,774	1,548,185

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Automated Building & Energy Controls Ltd.

Notes to the Financial Statements for the Year Ended 31 March 2019

7

Creditors

Creditors: amounts falling due within one year

	Note	2019  £	2018  £
Due within one year
Loans and borrowings	9	68,016	8,567
Trade creditors		718,924	684,990
Social security and other taxes		173,170	219,771
Outstanding defined contribution pension costs		6,959	-
Other creditors		68,434	100,470
Accrued expenses		475,303	495,547
Corporation tax liability		176,201	73,106
		1,687,007	1,582,451

Creditors: amounts falling due after more than one year

	Note	2019 £	2018 £
Due after one year
Loans and borrowings	9	137,727	145,973

	2019 £	2018 £
After more than five years by instalments	101,166	110,080

	-	-

Creditors include bank loans repayable by instalments of £100,686 (2018 - £110,080) due after more than five years.

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Automated Building & Energy Controls Ltd.

Notes to the Financial Statements for the Year Ended 31 March 2019

8

Deferred tax

Deferred tax assets and liabilities

2019	Asset £	Liability £
Accelerated tax depreciation	-	7,935
Short term timing differences	512	-
	512	7,935

2018	Liability £
Accelerated tax depreciation	5,828
Short term timing differences	-
	5,828

9

Loans and borrowings

	2019 £	2018 £
Current loans and borrowings
Loan (secured)	8,727	8,567
Bank overdrafts	59,289	-
	68,016	8,567

	2019 £	2018 £
Non-current loans and borrowings
Loan (secured)	137,727	145,973

10

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £118,593 (2018 - £116,762).

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Automated Building & Energy Controls Ltd.

Notes to the Financial Statements for the Year Ended 31 March 2019

11

Related party transactions

Transactions with directors At 31 March 2019, M Morrall owed the company £78,688 (2018: £12,165), P Morrall owed the company £36,219 (2018: £28,472) and M Litten owed the company £7,850 (2018: £nil). No interest is charged on the loans and they are repayable on demand.

Summary of transactions with other related parties

At 31 March 2019, A M Dyke owed the company £nil (2018: £240).

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