Company registration number 00530406 (England and Wales)
HUNT BROTHERS & CO. LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
HUNT BROTHERS & CO. LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 9
HUNT BROTHERS & CO. LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
4,105
5,256
Investments
5
1,000
1,000
5,105
6,256
Current assets
Stocks
-
29,414
Debtors
7
829,480
655,478
Cash at bank and in hand
256,470
240,373
1,085,950
925,265
Creditors: amounts falling due within one year
8
(544,540)
(424,645)
Net current assets
541,410
500,620
Total assets less current liabilities
546,515
506,876
Provisions for liabilities
8,360
Net assets excluding pension liability
546,515
515,236
Defined benefit pension liability
9
(44,000)
Net assets
546,515
471,236
Capital and reserves
Called up share capital
10
30,000
30,000
Profit and loss reserves
516,515
441,236
Total equity
546,515
471,236
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
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 by the board of directors and authorised for issue on 11 October 2023 and are signed on its behalf by:
G Hilditch
Director
Company registration number 00530406 (England and Wales)
HUNT BROTHERS & CO. LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2021
30,000
407,908
437,908
Year ended 31 March 2022:
Profit
-
27,388
27,388
Other comprehensive income:
Actuarial gains on defined benefit plans
-
20,000
20,000
Tax relating to other comprehensive income
-
(3,800)
(3,800)
Total comprehensive income
-
43,588
43,588
Dividends
-
(10,260)
(10,260)
Balance at 31 March 2022
30,000
441,236
471,236
Year ended 31 March 2023:
Profit
-
51,699
51,699
Other comprehensive income:
Actuarial gains on defined benefit plans
-
44,000
44,000
Tax relating to other comprehensive income
-
(8,360)
(8,360)
Total comprehensive income
-
87,339
87,339
Dividends
-
(12,060)
(12,060)
Balance at 31 March 2023
30,000
516,515
546,515
HUNT BROTHERS & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
1
Accounting policies
Company information
Hunt Brothers & Co. Limited is a private company limited by shares incorporated in England and Wales. The registered office is Everite House, Carr Lane, Hoylake, Wirral, Merseyside, CH47 4BG.
1.1
Accounting convention
Except for the matter relating to the company's defined benefit retirement scheme referred to below, 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.
In respect of the defined benefit retirement scheme the company has not complied with the accounting and disclosure requirements of FRS102 on the grounds that, due to the cost of obtaining an annual valuation being disproportionate to the annual premiums paid into the scheme, a pension scheme valuation has not been obtained in order to establish the pension scheme assets, liabilities and resulting surplus/deficit at the balance sheet date. Although the company has departed from FRS 102 the directors have concluded that the financial statements give a true and fair view of the company's financial position and financial performance.
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.
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
1.2
Turnover
Turnover represents amounts receivable for services net of VAT and trade discounts. Amounts receivable are made up of trading turnover, del credere commissions, direct commissions and management fees.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.3
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:
Fixtures, fittings & equipment
10%-20% pa on cost
HUNT BROTHERS & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 4 -
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.
1.4
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
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.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
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, other short-term liquid investments with original maturities of three months or less, 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 balance sheet 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 and cash and bank balances, 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.
HUNT BROTHERS & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 5 -
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.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.
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.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
Where relevant, the cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Where relevant, termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined benefit schemes are charged as an expense as they fall due. This is a departure from FRS102 as the rules regarding the defined benefit scheme are not applied . The Audit Report is qualified on this basis .
HUNT BROTHERS & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 6 -
1.13
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the monthly rate of exchange as issued by HMRC prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.
2
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 amount 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
5
5
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 April 2022 and 31 March 2023
17,321
Depreciation and impairment
At 1 April 2022
12,065
Depreciation charged in the year
1,151
At 31 March 2023
13,216
Carrying amount
At 31 March 2023
4,105
At 31 March 2022
5,256
HUNT BROTHERS & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
5
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
1,000
1,000
Fixed asset investments not carried at market value
The fixed asset investments represent the purchase price of the shares held in the company's subsidiary undertaking. The subsidiary company is not listed on the UK stock exchange.
6
Subsidiaries
Details of the company's subsidiaries at 31 March 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Product Sales Limited
Everite House, Carr Lane, Hoylake, Wirral, Merseyside CH47 4BG
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Product Sales Limited
1,000
Product Sales Limited has been dormant throughout the year.
7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
819,312
631,236
Other debtors
8,081
21,745
827,393
652,981
Deferred tax asset
2,087
2,497
829,480
655,478
HUNT BROTHERS & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
8
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
467,029
367,674
Amounts owed to group undertakings
1,000
1,000
Taxation and social security
47,804
26,322
Other creditors
28,707
29,649
544,540
424,645
The bank overdrafts are secured by an unlimited debenture.
9
Retirement benefit schemes
The company operates a defined benefit scheme for qualifying employees. Under the scheme the employees are entitled to retirement benefits based on final salary on attainment of a retirement age of 65. No other post retirement benefits are provided.
The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation were carried out at 31 March 2023 by A Thomson, Fellow of the Institute of Actuaries. The present value of the defined benefit obligation, the related current service cost and past service cost were measured using the Projected Unit Method.
Valuation
Due to a variety of factors including closing the Scheme to coincide with the review date of 31 March 2023, the remaining active members drawing their reduced pensions early, the amounts paid into the Scheme since the last review and the significant changes in actuarial assumptions and associated rise in yields the Scheme has moved from being underfunded to being significantly in surplus at the review date. The most recent actuarial valuation showed a funding level of 137%. The market value of the scheme assets was £1,898,000 and the past service liability was £1,384,000 resulting in a fund surplus of £513,000. The surplus is not reflected in the financial statements on the basis that it will not be recovered through reduced contributions in the future as the Scheme is closed nor is it likely there will be refunds from the plan.
10
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
9,000
9,000
9,000
9,000
2023
2022
2023
2022
Preference share capital
Number
Number
£
£
Issued and fully paid
6% Cumulative Preference shares of £1 each
21,000
21,000
21,000
21,000
Preference shares classified as equity
21,000
21,000
Total equity share capital
30,000
30,000
HUNT BROTHERS & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
11
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was qualified and the auditor reported as follows:
We have audited the financial statements of Hunt Brothers & Co. Limited (the 'company') for the year ended 31 March 2023 which comprise , the balance sheet, the statement of changes in equity and notes to the financial statements, including 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).
In our opinion, except for the effects of the matter described in the Basis for qualified opinion paragraph below, the financial statements:
give a true and fair view of the state of the company's affairs as at 31 March 2023 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 qualified opinion
The company operates a defined benefit retirement scheme on behalf of directors and employees. The company has not complied with the accounting and disclosure requirements of Financial Reporting Standard 102 on the grounds that, due to the cost of obtaining an annual valuation being disproportionate to the annual premiums paid into the scheme, a pension scheme valuation has not been obtained since the actuarial valuation at 31 March 2020.
Senior Statutory Auditor:
Nicholas James O'Donovan
Statutory Auditor:
Lonsdale & Marsh
12
Financial commitments, guarantees and contingent liabilities
Bills discounted and documentary credits outstanding at 31 March 2023 amounted to £71,194 (2022 - nil).
13
Non-audit services provided by auditor
In common with many businesses of our size and nature we use our auditor to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.
2023-03-312022-04-01false11 October 2023CCH SoftwareCCH Accounts Production 2023.300No description of principal activityThis audit opinion is unqualifiedG HilditchS M KnowlesT J LincolnJ R Andrewsfalse2023-10-11005304062022-04-012023-03-31005304062023-03-31005304062022-03-3100530406core:OtherPropertyPlantEquipment2023-03-3100530406core:OtherPropertyPlantEquipment2022-03-3100530406core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3100530406core:CurrentFinancialInstrumentscore:WithinOneYear2022-03-3100530406core:CurrentFinancialInstruments2023-03-3100530406core:CurrentFinancialInstruments2022-03-3100530406core:ShareCapital2023-03-3100530406core:ShareCapital2022-03-3100530406core:RetainedEarningsAccumulatedLosses2023-03-3100530406core:RetainedEarningsAccumulatedLosses2022-03-3100530406core:ShareCapital2021-03-3100530406core:RetainedEarningsAccumulatedLosses2021-03-3100530406bus:Director12022-04-012023-03-3100530406core:RetainedEarningsAccumulatedLosses2021-04-012022-03-31005304062021-04-012022-03-3100530406core:RetainedEarningsAccumulatedLosses2022-04-012023-03-3100530406core:RevenueReservesInvestmentFundsOnly2021-04-012022-03-3100530406core:FurnitureFittings2022-04-012023-03-3100530406core:OtherPropertyPlantEquipment2022-03-3100530406core:OtherPropertyPlantEquipment2022-04-012023-03-310053040612022-04-012023-03-3100530406core:WithinOneYear2023-03-3100530406core:WithinOneYear2022-03-3100530406bus:PrivateLimitedCompanyLtd2022-04-012023-03-3100530406bus:SmallCompaniesRegimeForAccounts2022-04-012023-03-3100530406bus:FRS1022022-04-012023-03-3100530406bus:Audited2022-04-012023-03-3100530406bus:Director22022-04-012023-03-3100530406bus:Director32022-04-012023-03-3100530406bus:CompanySecretary12022-04-012023-03-3100530406bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP