Environmental Construction Products Limited Company Accounts

ENVIRONMENTAL CONSTRUCTION PRODUCTS LIMITED - Company Information

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COMPANY REGISTRATION NUMBER: 03359943

ENVIRONMENTAL CONSTRUCTION PRODUCTS LIMITED

UNAUDITED FINANCIAL STATEMENTS

31 December 2017

ENVIRONMENTAL CONSTRUCTION PRODUCTS LIMITED

FINANCIAL STATEMENTS

PERIOD FROM 1 APRIL 2017 TO 31 DECEMBER 2017

Contents	Pages

Officers and professional advisers 1

Directors' report 2

Chartered accountants report to the board of directors on the

preparation of the unaudited statutory financial statements 3

Profit and loss account 4

Balance sheet 5

Statement of change in shareholders funds 6

Notes to the financial statements 7 to 12

ENVIRONMENTAL CONSTRUCTION PRODUCTS LIMITED

OFFICERS AND PROFESSIONAL ADVISERS

The board of directors	W J Butcher
	C Herring

Company secretary	W J Butcher

Registered office	Heath House Mill
	Heath House Lane
	Golcar
	Huddersfield
	HD7 4JW

Accountants	Wheawill & Sudworth Limited
	Chartered Accountants
	35 Westgate
	Huddersfield
	HD1 1PA

Bankers	Lloyds Bank plc
	1 Westgate
	Huddersfield
	West Yorkshire
	HD1 2DN

ENVIRONMENTAL CONSTRUCTION PRODUCTS LIMITED

DIRECTORS' REPORT

PERIOD FROM 1 APRIL 2017 TO 31 DECEMBER 2017

The directors present their report and the unaudited financial statements of the company for the period ended 31 December 2017 .

Principal activities

The principal activity of the company during the period was that of the design and distribution of environmentally friendly and sustainable building products. Significant losses were incurred in our windows department in the second half of 2016 following the Brexit referendum in July. All products are purchased in Euros, and major changes in the GBP to Euro exchange rate plus a significant drop in sales resulting from loss of consumer confidence following the referendum combined to result in the losses sustained in this department, and consequently to the business as a whole during 2016/17. More stable economic conditions for the remainder of 2017 have contributed to the company's return to profitability.

Directors

The directors who served the company during the period were as follows:

W J Butcher
C Herring

Small company provisions

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

This report was approved by the board of directors on 9 March 2018 and signed on behalf of the board by:

W J Butcher Secretary

ENVIRONMENTAL CONSTRUCTION PRODUCTS LIMITED

CHARTERED ACCOUNTANTS REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF ENVIRONMENTAL CONSTRUCTION PRODUCTS LIMITED

PERIOD FROM 1 APRIL 2017 TO 31 DECEMBER 2017

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Environmental Construction Products Limited for the period ended 31 December 2017, which comprise the profit and loss account, balance sheet, statement of change in shareholders funds and the related notes from the company's accounting records and from information and explanations you have given us. As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at www.icaew.com/en/membership/regulations-standards-and-guidance. This report is made solely to the Board of Directors of Environmental Construction Products Limited, as a body, in accordance with the terms of our engagement letter dated 7 November 2017. Our work has been undertaken solely to prepare for your approval the financial statements of Environmental Construction Products Limited and state those matters that we have agreed to state to you, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF as detailed at www.icaew.com/compilation. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Environmental Construction Products Limited and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Environmental Construction Products Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Environmental Construction Products Limited. You consider that Environmental Construction Products Limited is exempt from the statutory audit requirement for the period. We have not been instructed to carry out an audit or a review of the financial statements of Environmental Construction Products Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Wheawill & Sudworth Limited Chartered Accountants

35 Westgate Huddersfield HD1 1PA

9 March 2018

ENVIRONMENTAL CONSTRUCTION PRODUCTS LIMITED

PROFIT AND LOSS ACCOUNT

PERIOD FROM 1 APRIL 2017 TO 31 DECEMBER 2017

	Period from	Period from
	1 Apr 17 to	1 Jan 16 to
	31 Dec 17	31 Mar 17
		(restated)
Note	£	£
Turnover	2,792,089	3,911,362

Cost of sales	( 2,237,672)	( 3,139,944)
	------------	------------
Gross profit	554,417	771,418

Administrative expenses	( 504,604)	( 940,365)
	------------	------------
Operating profit/(loss)	49,813	( 168,947)

Other interest receivable and similar income		2	59
Interest payable and similar expenses		( 3,562)	( 5,937)
		------------	------------
Profit/(loss) before taxation	5	46,253	( 174,825)

Tax on profit/(loss)	6	2,532	26,992
		------------	------------
Profit/(loss) for the financial period and total comprehensive income		48,785	( 147,833)
		------------	------------

All the activities of the company are from continuing operations.

ENVIRONMENTAL CONSTRUCTION PRODUCTS LIMITED

BALANCE SHEET

31 December 2017

	31 Dec 17	31 Mar 17
		(restated)
Note	£	£

Fixed assets

Tangible assets	7	45,144	43,499

Current assets

Stocks	8	234,984	195,046
Debtors	9	253,330	149,040
Cash at bank and in hand		71,289	140,032
		------------	------------
		559,603	484,118

Creditors: amounts falling due within one year	10	( 499,625)	( 488,780)
		------------	------------
Net current assets/(liabilities)		59,978	( 4,662)
		------------	------------
Total assets less current liabilities		105,122	38,837

Creditors: amounts falling due after more than one year	11	( 112,674)	( 95,174)
		------------	------------
Net liabilities		( 7,552)	( 56,337)
		------------	------------

Capital and reserves

Called up share capital	15	87,663	87,663
Profit and loss account		( 95,215)	( 144,000)
		------------	------------
Members deficit		( 7,552)	( 56,337)
		------------	------------

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

For the period ending 31 December 2017 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 financial statements for the period in question in accordance with section 476 ;

- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

These financial statements were approved by the board of directors and authorised for issue on 9 March 2018 , and are signed on behalf of the board by:

C Herring W J Butcher

Director Director

Company registration number: 03359943

ENVIRONMENTAL CONSTRUCTION PRODUCTS LIMITED

STATEMENT OF CHANGE IN SHAREHOLDERS FUNDS

PERIOD FROM 1 APRIL 2017 TO 31 DECEMBER 2017

	Called up share capital	Profit and loss account	Total
	£	£	£
At 1 January 2016	87,663	3,833	91,496

Loss for the period		( 147,833)	( 147,833)
	------------	------------	------------
Total comprehensive income for the period	–	( 147,833)	( 147,833)

At 31 March 2017	87,663	( 144,000)	( 56,337)

Profit for the period		48,785	48,785
	------------	------------	------------
Total comprehensive income for the period	–	48,785	48,785

	------------	------------	------------
At 31 December 2017	87,663	( 95,215)	( 7,552)
	------------	------------	------------

ENVIRONMENTAL CONSTRUCTION PRODUCTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

PERIOD FROM 1 APRIL 2017 TO 31 DECEMBER 2017

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Heath House Mill, Heath House Lane, Golcar, Huddersfield, HD7 4JW.

2. Statement of compliance

These financial statements have been prepared in compliance with the provisions of FRS 102 Section 1A, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Revenue recognition

Turnover comprises the value of sales excluding value added tax and trade discounts. In respect of long-term contracts and contracts for on-going services, turnover represents the value of work done in the year, including estimates of amounts not invoiced. Turnover in respect of long-term contracts and contracts for on-going services is recognised by reference to the stage of completion.

Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Foreign currencies

Transactions in foreign currencies are translated at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities in foreign currencies are translated at the rates of exchange ruling at the balance sheet date. Where exchange differences result from the translation of foreign currency borrowings raised to acquire foreign assets they are taken to reserves and offset against the differences arising from the translation of those assets. All other exchange differences are dealt with through the profit and loss account.

Tangible assets

Tangible assets are initally recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Leased property improvements	-	20% straight line
Plant and machinery	-	10% straight line
Fixtures and equipment	-	25% reducing balance
Motor vehicles	-	25% reducing balance
Computer equipment	-	25% straight line

Stocks

Stocks are stated at the lower of cost and net realisable value.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either 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.

Defined contribution plans

The company operates defined contribution pension schemes for certain employees. The assets of the schemes are held separately from those of the company. The annual contributions payable are charged to the profit and loss account.

4. Employee numbers

The average number of persons employed by the company during the period amounted to 32 (2017: 32 ).

5. Profit before taxation

Profit/(loss) before taxation is stated after charging:

	Period from	Period from
	1 Apr 17 to	1 Jan 16 to
	31 Dec 17	31 Mar 17
		(restated)
	£	£
Depreciation of tangible assets	11,511	18,793
	------------	------------

6. Tax on profit/(loss)

Major components of tax income

	Period from	Period from
	1 Apr 17 to	1 Jan 16 to
	31 Dec 17	31 Mar 17
		(restated)
	£	£

Current tax:

UK current tax income	–	( 246)
Adjustments in respect of prior periods	–	( 5,066)
	------------	------------
Total current tax	–	( 5,312)
	------------	------------

Deferred tax:

Origination and reversal of timing differences	( 2,532)	( 21,680)
	------------	------------
Tax on profit/(loss)	( 2,532)	( 26,992)
	------------	------------

7. Tangible assets

	Leased property improvements	Plant and machinery	Fixtures and equipment	Motor vehicles	Computer equipment	Total
	£	£	£	£	£	£
Cost
At 1 Apr 2017 (as restated)	25,260	27,193	19,094	35,150	73,522	180,219
Additions	–	–	–	13,800	–	13,800
Disposals	–	–	–	( 6,500)	–	( 6,500)
	------------	------------	------------	------------	------------	------------
At 31 Dec 2017	25,260	27,193	19,094	42,450	73,522	187,519
	------------	------------	------------	------------	------------	------------
Depreciation
At 1 Apr 2017	25,260	19,683	17,835	16,355	57,587	136,720
Charge for the period	–	882	266	5,139	5,224	11,511
Disposals	–	–	–	( 5,856)	–	( 5,856)
	------------	------------	------------	------------	------------	------------
At 31 Dec 2017	25,260	20,565	18,101	15,638	62,811	142,375
	------------	------------	------------	------------	------------	------------
Carrying amount
At 31 Dec 2017	–	6,628	993	26,812	10,711	45,144
	------------	------------	------------	------------	------------	------------
At 31 Mar 2017	–	7,510	1,259	18,795	15,935	43,499
	------------	------------	------------	------------	------------	------------

8. Stocks

	31 Dec 17	31 Mar 17
		(restated)
	£	£
Raw materials and consumables	145,672	178,704
Work in progress	89,312	16,342
	------------	------------
	234,984	195,046
	------------	------------

9. Debtors

	31 Dec 17	31 Mar 17
		(restated)
	£	£
Trade debtors	220,080	128,077
Deferred tax asset	15,794	13,262
Prepayments and accrued income	16,356	6,594
Corporation tax recoverable	–	246
Other debtors	1,100	861
	------------	------------
	253,330	149,040
	------------	------------

10. Creditors: amounts falling due within one year

	31 Dec 17	31 Mar 17
		(restated)
	£	£
Trade creditors	365,123	380,342
Accruals and deferred income	21,399	20,640
Social security and other taxes	113,103	87,798
	------------	------------
	499,625	488,780
	------------	------------

11. Creditors: amounts falling due after more than one year

	31 Dec 17	31 Mar 17
		(restated)
	£	£
Director loan accounts	42,253	24,753
Other loans	70,000	70,000
Other creditor	421	421
	------------	------------
	112,674	95,174
	------------	------------

12. Deferred tax

The deferred tax included in the balance sheet is as follows:

	31 Dec 17	31 Mar 17
		(restated)
	£	£
Included in debtors (note 9)	15,794	13,262
	------------	------------

13. Pensions

The company operates a defined contribution pension scheme for the benefit of the employees and directors. The assets of the scheme are administered by trustees in funds independent from those of the company.

The total contributions paid in the period amounted to £6,960 (2017: £31,175).

14. Prior year adjustments

The comparative figures have been adjusted by £59,706 to correct the closing stock and work in progress balance.

15. Called up share capital

Issued, called up and fully paid

	31 Dec 17		31 Mar 17
			(restated)
	No.	£	No.	£
Ordinary shares of £ 0.01 each	600,300	6,003	600,300	6,003
Employee shares of £ 1 each	6,660	6,660	6,660	6,660
Preference shares of £ 1 each	75,000	75,000	75,000	75,000
	------------	------------	------------	------------
	681,960	87,663	681,960	87,663
	------------	------------	------------	------------

The ordinary and employee shares rank pari passu in all respects except that an employee shareholder has no right to attend or vote at the general meeting or any extraordinary general meeting of the company. The redeemable cumulative preference shares have the right to vote only in circumstances where:- (i) the cumulative preference dividend is in arrears by more than 6 months; and (ii)a resolution is proposed for the winding-up of the Company, the variation rights attaching to the redeemable cumulative preference shares, or to the purchase by the Company of its own shares or to a reduction in capital. The redeemable cumulative shares have the right to a cumulative preferential dividend payable annually at a rate of 2.5%. The redeemable cumulative preference shares are redeemable at the option of the Company and any time after the first anniversary of their allotment.

16. Related party transactions

The directors' loan accounts of £42,253 (2017: £24,753) set out at note 11 above are unsecured. The interest charge for the period was £938 (2017: £1,563). There is no one controlling party of the company.