Thameswey Maintenance Services Limited - Limited company accounts 18.2

REGISTERED NUMBER: 05637552 (England and Wales)

DIRECTORS' REPORT AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2017

FOR

THAMESWEY MAINTENANCE SERVICES LIMITED

Page

Company Information

1

Directors' Report

2

Statement of Directors' Responsibilities

3

Independent Auditor's Report

4

Income Statement

7

Other Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Financial Statements

12

DIRECTORS:

R N Morgan

Dr B M Maunders

P N Bryant

SECRETARY:

Clyde Secretaries Limited

REGISTERED OFFICE:

The St Botolph Building

138 Houndsditch

London

London

EC3A 7AR

REGISTERED NUMBER:

05637552 (England and Wales)

AUDITOR:

Hamlyns LLP

Statutory Auditor and

Chartered Accountants

Sundial House

High Street

Horsell

Woking

Surrey

GU21 4SU

BANKERS:

National Westminster Bank Plc

PO Box 358

1 High Street

Woking

Surrey

GU21 1ZS

SOLICITORS:

Clyde & Co LLP

The St Botolph Building

138 Hounsditch

London

EC3A 7AR

The directors present their report with the financial statements of the company for the year ended 31 December 2017.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of installation, commissioning, servicing,

maintaining and operating total energy systems.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2017 to the date of this

report.

R N Morgan

Dr B M Maunders

P N Bryant

Other changes in directors holding office are as follows:

Cllr R J Kingsbury ceased to be a director after 31 December 2017 but prior to the date of this report.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO THE AUDITOR

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act

2006) of which the company's auditor is unaware, and each director has taken all the steps that he ought to have taken as

a director in order to make himself aware of any relevant audit information and to establish that the company's auditor is

aware of that information.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small

companies.

ON BEHALF OF THE BOARD:

Dr B M Maunders - Director

31 May 2018

The directors are responsible for preparing the Directors' Report and the financial statements in accordance with

applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors

have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting

Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not

approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the

company and of the profit or loss of the company for that period. In preparing these financial statements, the directors

are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the

company's transactions and disclose with reasonable accuracy at any time the financial position of the company and

enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for

safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud

and other irregularities.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on

the company's website.

Opinion

We have audited the financial statements of Thameswey Maintenance Services Limited (the 'company') for the year

ended 31 December 2017 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet,

Statement of Changes in Equity, Cash Flow Statement and Notes to the Financial Statements, including a summary of

significant accounting policies. The financial reporting framework that has been applied in their preparation is

applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial

Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting

Practice).

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the

Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those

matters we are required to state to them in an Auditor's Report and for no other purpose. To the fullest extent permitted

by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a

body, for our audit work, for this report, or for the opinions we have formed.

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2017 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law.

Our responsibilities under those standards are further described in the Auditor responsibilities for the audit of the

financial statements section of our report. We are independent of the company in accordance with the ethical

requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard,

and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit

evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to

you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the

Directors' Report and the Statement of Directors' Responsibilities, but does not include the financial statements and our

Auditor's Report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of

assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing

so, consider whether the other information is materially inconsistent with the financial statements or our knowledge

obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we

conclude that there is a material misstatement of this other information, we are required to report that fact. We have

nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Directors' Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit,

we have not identified material misstatements in the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you

if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit; or

-	the directors were not entitled to take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Directors' Report.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities, the directors are responsible for the preparation

of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the

directors determine necessary to enable the preparation of financial statements that are free from material misstatement,

whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a

going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of

accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic

alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from

material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs

(UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are

considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic

decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting

Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.

David Cooper (Senior Statutory Auditor)

for and on behalf of Hamlyns LLP

Statutory Auditor and

Chartered Accountants

Sundial House

High Street

Horsell

Woking

Surrey

GU21 4SU

31 May 2018

Note:

The maintenance and integrity of the Thameswey Maintenance Services Limited website is the responsibility of the directors; the work carried out by the auditor does not involve consideration of these matters and, accordingly, the auditor accepts no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.

TURNOVER

2,067,158

1,750,966

Cost of sales

1,679,425

1,196,641

GROSS PROFIT

387,733

554,325

Administrative expenses

303,807

355,010

OPERATING PROFIT

5

83,926

199,315

Interest receivable and similar income

54

659

PROFIT BEFORE TAXATION

83,980

199,974

Tax on profit

6

20,500

41,424

PROFIT FOR THE FINANCIAL YEAR

63,480

158,550

PROFIT FOR THE YEAR

63,480

158,550

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

63,480

158,550

FIXED ASSETS

Tangible assets

7

76,603

80,551

CURRENT ASSETS

Stocks

8

27,801

41,750

Debtors

9

382,518

497,001

Cash at bank and in hand

705,940

182,440

1,116,259

721,191

CREDITORS

Amounts falling due within one year

10

584,475

256,835

NET CURRENT ASSETS

531,784

464,356

TOTAL ASSETS LESS CURRENT LIABILITIES

608,387

544,907

CAPITAL AND RESERVES

Called up share capital

11

660,000

660,000

Retained earnings

12

(51,613

)

(115,093

)

SHAREHOLDERS' FUNDS

608,387

544,907

The financial statements were approved by the Board of Directors on 31 May 2018 and were signed on its behalf by:

R N Morgan - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2016

660,000

(273,643

)

386,357

Changes in equity

Total comprehensive income

-

158,550

158,550

Balance at 31 December 2016

660,000

(115,093

)

544,907

Changes in equity

Total comprehensive income

-

63,480

63,480

Balance at 31 December 2017

660,000

(51,613

)

608,387

Cash flows from operating activities

Cash generated from operations

15

622,974

32,465

Net cash from operating activities

622,974

32,465

Cash flows from investing activities

Purchase of tangible fixed assets

(18,587

)

(11,798

)

Interest received

54

659

Net cash from investing activities

(18,533

)

(11,139

)

Cash flows from financing activities

Intercompany loan

(80,941

)

-

Net cash from financing activities

(80,941

)

-

Increase in cash and cash equivalents

523,500

21,326

Cash and cash equivalents at beginning of year

16

182,440

161,114

Cash and cash equivalents at end of year

16

705,940

182,440

1.	STATUTORY INFORMATION

Thameswey Maintenance Services Limited is a private company, limited by shares , registered in England and

Wales. The company's registered number and registered office address can be found on the Company

Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The

Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party

transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates

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

Turnover

Turnover is measured at the fair value of the consideration received or receivable and represents amounts

receivable for goods supplied and services rendered, stated net of discounts and of value added tax.

The following criteria must also be met before revenue is recognised.

Turnover from large maintenance service contracts are recognised by reference to the stage of completion. Stage

of completion is measured by reference to labour hours incurred to date as a percentage of total estimated labour

hours for each contract. Where the contract outcome cannot be measured reliably, revenue is recognised only to

the extent of the expenses recognised that are recoverable.

Tangible fixed assets

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

Short leasehold

-

over remaining term of lease

Motor vehicles

-

Straight line over 4 years

Fixtures and fittings

-

Straight line over 2 years, Straight line over 3 years and Straight line over 4 years

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow

moving items.

Cost is calculated on a first in, first out basis and includes all costs of purchase and conversion and other costs

incurred in bringing the stock to its present location and condition.

Financial instruments

Financial instruments are classified as accounted for according to the substance of the contractual arrangements

as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that

evidences a residual interest in the net assets of the company.

Basic financial instruments are recognised at amortised cost. The company has no non-basic financial

instruments.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to

the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance

sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from

those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that

have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the

timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they

will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the

lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

2017

2016

£

£

Wages and salaries

449,566

472,684

Social security costs

46,685

48,697

Other pension costs

18,074

17,807

514,325

539,188

The average number of employees during the year was as follows:

2017

2016

Cost of sales

11

11

Administration

2

3

13

14

4.	DIRECTORS' EMOLUMENTS

2017

2016

£

£

Directors' remuneration

4,293

4,295

Directors remuneration relates to fees paid to the independent non-executive director. An explanation of the

composition of the board of directors can be found in the directors' report.

5.	OPERATING PROFIT

The operating profit is stated after charging:

2017

2016

£

£

Hire of plant and machinery

6,435

11,502

Depreciation - owned assets

22,535

27,392

Auditors' remuneration

9,800

7,250

Operating leases

20,780

20,780

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2017

2016

£

£

Current tax:

UK corporation tax

20,500

41,424

Tax on profit

20,500

41,424

UK corporation tax has been charged at 19.25% .

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is

explained below:

2017

2016

£

£

Profit before tax

83,980

199,974

Profit multiplied by the standard rate of corporation tax in the UK of 19.250% (2016 - 20%)

16,166

39,995

Effects of:

Depreciation in excess of capital allowances

4,334

5,478

Utilisation of tax losses

-

(4,049

)

Total tax charge

20,500

41,424

The current UK corporation tax rate that has been used for the year is a blended rate of 19.25% (2016: 20%) .

This is on the basis that the rate have been 20% since April 2015 and a reduction to the main rate was

substantively enacted on 26 October 2015, reducing the rate to 19% from 1 April 2017. Further reductions to

18% will apply from 1 April 2020. An additional reduction to 17% (effective from 1 April 2020) was

substantively enacted on 6 September 2016.

7.	TANGIBLE FIXED ASSETS

Fixtures

Short

Motor

and

leasehold

vehicles

fittings

Totals

£

£

£

£

COST

At 1 January 2017

80,363

71,463

127,383

279,209

Additions

-

16,920

1,667

18,587

At 31 December 2017

80,363

88,383

129,050

297,796

DEPRECIATION

At 1 January 2017

31,240

56,051

111,367

198,658

Charge for year

7,977

8,076

6,482

22,535

At 31 December 2017

39,217

64,127

117,849

221,193

NET BOOK VALUE

At 31 December 2017

41,146

24,256

11,201

76,603

At 31 December 2016

49,123

15,412

16,016

80,551

8.

STOCKS

2017

2016

£

£

Stocks

27,801

41,750

Stock recognised in cost of sales during the year as an expense was £32,809.

9.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade debtors

183,520

373,673

Amounts owed by group undertakings

101,441

-

Amounts recoverable on contract

58,693

54,281

Other debtors

3,689

19,052

Prepayments

35,175

49,995

382,518

497,001

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade creditors

473,701

105,125

Amounts owed to group undertakings

61,924

41,424

Social security and other taxes

12,773

12,096

VAT

16,309

57,321

Accruals

19,768

40,869

584,475

256,835

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2017

2016

value:

£

£

660,000

Ordinary B

£1

660,000

660,000

Each share is entitled to one vote in any circumstances and each share is also entitled pari passu to dividend

payments or any other distribution, including a distribution arising from a winding up of the company. The shares

are not redeemable.

12.

RESERVES

Retained

earnings

£

At 1 January 2017

(115,093

)

Profit for the year

63,480

At 31 December 2017

(51,613

)

13.	ULTIMATE PARENT COMPANY

The company's immediate parent company is Thameswey Limited, a company incorporated in England and

Wales.

The company's ultimate parent undertaking is considered to be Woking Borough Council.

The largest group into which the company is consolidated is headed by Woking Borough Council, and the

smallest group into which the company is consolidated is Thameswey Limited. Copies of both sets of group

accounts are available from the Company Secretary, Clyde Secretaries Limited, The St Botolph Building, 138

Houndsditch, London, EC3A 7AR.

14.	RELATED PARTY DISCLOSURES

The company's immediate parent company Thameswey Limited is 100% (2016 - 100%) owned by Woking

Borough Council. Thameswey Limited owns the share capital of the following companies:

2017

2016

Thameswey Energy Limited

100%

100%

Thameswey Housing Limited

100%

100%

Thameswey Sustainable Communities Limited

100%

100%

Thameswey Developments Limited

100%

100%

Thameswey Solar Limited

100%

75%

Thameswey Maintenance Services Limited

100%

100%

Woking Necropolis and Mausoleum Limited

0%

100%

Thameswey Energy Limited owns 100% (2016 - 100%) of Thameswey Central Milton Keynes Limited.

Thameswey Housing Limited owns 100% (2016 - 100%) of Thameswey Guest Houses Limited and 50% (2016 -

50%) of Rutland Woking (Residential) Limited. Thameswey Developments Limited owns 50% (2016 - 50%) of

Rutland (Woking) Limited and 50% (2016 - 50%) of Rutland Woking (Carthouse Lane) Limited. Rutland

(Woking) Limited owns 50% (2016 - 50%) of Rutland Woking (Residential) Limited.

Therefore, no transactions with these related parties are to be disclosed for either year under the provisions of

section 33 of Financial Reporting Standard 102.