K.T.P. Electrical Services Limited - Period Ending 2017-11-30

Registration number: 05614715

K.T.P. Electrical Services Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 30 November 2017

Pages for filing with Registrar

K.T.P. Electrical Services Limited

Contents

 

Company Information	1
Accountants' Report	2
Balance Sheet	3 to 4
Notes to the Financial Statements	5 to 14

K.T.P. Electrical Services Limited

Company Information

 

Directors

Mr K Pate

Company secretary

Mrs A L Purtill

Registered office

Thomas House Meadowcroft Business Park Pope Lane Preston Lancashire PR4 4AZ

Accountants

Haleys Business Advisers Limited Thomas House Meadowcroft Business Park Pope Lane Whitestake Lancashire PR4 4AZ

Page 1

Chartered Accountants' Report to the Director on the Preparation of the Unaudited Statutory Accounts of K.T.P. Electrical Services Limited for the Year Ended 30 November 2017

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of K.T.P. Electrical Services Limited for the year ended 30 November 2017 as set out on pages 3 to 14 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 http://www.icaew.com/en/members/regulations-standards-and-guidance/.

This report is made solely to the Board of Directors of K.T.P. Electrical Services Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts of K.T.P. Electrical Services Limited and state those matters that we have agreed to state to the Board of Directors of K.T.P. Electrical Services Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than K.T.P. Electrical Services Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that K.T.P. Electrical Services Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of K.T.P. Electrical Services Limited. You consider that K.T.P. Electrical Services Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of K.T.P. Electrical Services 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 accounts.

......................................

Haleys Business Advisers Limited
Thomas House
Meadowcroft Business Park
Pope Lane
Whitestake
Lancashire
PR4 4AZ

13 April 2018

Page 2

K.T.P. Electrical Services Limited

(Registration number: 05614715)

Balance Sheet as at 30 November 2017

	Note	2017 £	2016 £
Fixed assets
Intangible assets	4	11,707	15,399
Tangible assets	5	17,189	12,141
Investments	6	12,103	12,632
		40,999	40,172
Current assets
Stocks	7	214,711	231,152
Debtors	8	176,772	139,101
Cash at bank and in hand		14,725	-
		406,208	370,253
Creditors: Amounts falling due within one year	9	(251,913)	(246,086)
Net current assets		154,295	124,167
Total assets less current liabilities		195,294	164,339
Creditors: Amounts falling due after more than one year	9	(5,268)	-
Provisions for liabilities		(3,145)	(2,190)
Net assets		186,881	162,149
Capital and reserves
Called up share capital		10	10
Profit and loss account		186,871	162,139
Total equity		186,881	162,149

The notes on pages 5 to 14 form an integral part of these financial statements.

Page 3

K.T.P. Electrical Services Limited

(Registration number: 05614715)

Balance Sheet as at 30 November 2017 (continued)

For the financial year ending 30 November 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's 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 director acknowledges his 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 director on 13 April 2018
 

......................................... Mr K Pate Director

The notes on pages 5 to 14 form an integral part of these financial statements.

Page 4

K.T.P. Electrical Services Limited

Notes to the Financial Statements for the Year Ended 30 November 2017

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:
Thomas House
Meadowcroft Business Park
Pope Lane
Preston
Lancashire
PR4 4AZ
Lancashire

The principal place of business is:
Unit 1a, Pearlbrook Industrial Estate
Chorley New Road
Horwich
Bolton
BL6 5PX

These financial statements were authorised for issue by the director on 13 April 2018.

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 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" Section 1A for small entities and the Companies Act 2006.

Basis of preparation

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

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 £.

Page 5

K.T.P. Electrical Services Limited

Notes to the Financial Statements for the Year Ended 30 November 2017 (continued)

2	Accounting policies (continued)

Judgements

No significant judgements have had to be made by management and directors in preparing these financial statements.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

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

The current income 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 in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when 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 and that are expected to apply to the reversal of the timing difference.

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 provided at the following annual rates in order to write off each asset over its estimated useful life.

Page 6

K.T.P. Electrical Services Limited

Notes to the Financial Statements for the Year Ended 30 November 2017 (continued)

2	Accounting policies (continued)

Asset class	Depreciation method and rate
Property improvements	10% Straight line
Plant and machinery	15% Reducing balance
Motor vehicles	20% Straight line
Computer equipment	33% Straight line

Goodwill

Goodwill relates to the acquisition of a going concern in GMC Electrical Work, an unincorporated entity.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Goodwill	10% Straight line

Investments

Investments are initially stated in the financial statements at cost. Subsequent measurement is at fair value with any fair value movements being recognised through profit and loss.

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. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. 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 receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

The cost of finished goods comprises direct materials. 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.

Page 7

K.T.P. Electrical Services Limited

Notes to the Financial Statements for the Year Ended 30 November 2017 (continued)

2	Accounting policies (continued)

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 subsequently measured at amortised cost using the effective interest method.

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.

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.

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.

Page 8

K.T.P. Electrical Services Limited

Notes to the Financial Statements for the Year Ended 30 November 2017 (continued)

2	Accounting policies (continued)

Financial instruments

Classification
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 liability simultaneously.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. As equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

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.

Recognition and measurement
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities, including creditors and other loans are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.

Trade creditors are obligations to pay for goods and 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.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
 

Impairment
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in profit or loss.
 

Page 9

K.T.P. Electrical Services Limited

Notes to the Financial Statements for the Year Ended 30 November 2017 (continued)

3	Staff numbers

The average number of persons employed by the company (including the director) during the year, was 8 (2016 - 7).

4	Intangible assets

	Goodwill  £	Total £
Cost or valuation
At 1 December 2016	36,926	36,926
At 30 November 2017	36,926	36,926
Amortisation
At 1 December 2016	21,527	21,527
Amortisation charge	3,692	3,692
At 30 November 2017	25,219	25,219
Carrying amount
At 30 November 2017	11,707	11,707
At 30 November 2016	15,399	15,399

Page 10

K.T.P. Electrical Services Limited

Notes to the Financial Statements for the Year Ended 30 November 2017 (continued)

5	Tangible assets

	Property improvements £	Computer equipment  £	Motor vehicles  £	Plant and machinery  £	Total £
Cost or valuation
At 1 December 2016	650	6,220	38,783	1,555	47,208
Additions	-	-	10,240	-	10,240
Disposals	-	(610)	-	-	(610)
At 30 November 2017	650	5,610	49,023	1,555	56,838
Depreciation
At 1 December 2016	582	4,338	29,398	749	35,067
Charge for the year	68	1,164	3,839	121	5,192
Eliminated on disposal	-	(610)	-	-	(610)
At 30 November 2017	650	4,892	33,237	870	39,649
Carrying amount
At 30 November 2017	-	718	15,786	685	17,189
At 30 November 2016	68	1,882	9,385	806	12,141

Page 11

K.T.P. Electrical Services Limited

Notes to the Financial Statements for the Year Ended 30 November 2017 (continued)

6	Investments

	2017 £	2016 £
Investments	12,103	12,632

Gold investment	£
Cost or valuation
At 1 December 2016	12,632
Revaluation	(529)
At 30 November 2017	12,103
Carrying amount
At 30 November 2017	12,103
At 30 November 2016	12,632

7

Stocks

	2017 £	2016 £
Work in progress	193,211	213,152
Stocks	21,500	18,000
	214,711	231,152

8

Debtors

	2017 £	2016 £
Trade debtors	168,121	103,773
Other debtors	-	27,850
Prepayments and accrued income	8,651	7,478
	176,772	139,101

Page 12

K.T.P. Electrical Services Limited

Notes to the Financial Statements for the Year Ended 30 November 2017 (continued)

9

Creditors

	Note	2017 £	2016 £
Due within one year
Bank loans and overdrafts		-	40,291
Obligations under hire purchase agreements		3,211	-
Trade creditors		178,405	166,961
Taxation and social security		63,247	31,176
Other creditors		1,910	5,217
Accruals and deferred tax		5,140	2,441
		251,913	246,086

Creditors include bank loans and overdrafts and net obligations under finance lease and hire purchase contracts which are secured of £3,190 (2016 - £40,291).

	2017 £	2016 £
Due after one year
Obligations under hire purchase agreements	5,268	-

Creditors include bank loans and overdrafts and net obligations under finance lease and hire purchase contracts which are secured of £5,241 (2016 - £nil).

10

Dividends

		2017		2016
		£		£
Dividends paid		96,248		28,000

Page 13

K.T.P. Electrical Services Limited

Notes to the Financial Statements for the Year Ended 30 November 2017 (continued)

11	Related party transactions

Directors' remuneration

The director's remuneration for the year was as follows:

	2017 £	2016 £
Remuneration	8,776	10,000

Loans to related parties

2017	Key management £
At start of period	27,850
Advanced	93,209
Repaid	(121,059)
At end of period	-

2016	Key management £
Advanced	85,612
Repaid	(57,762)
At end of period	27,850

Page 14