REGISTERED NUMBER: 02126698 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
FOR |
EAST RIDING HOLDINGS COMPANY |
REGISTERED NUMBER: 02126698 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
FOR |
EAST RIDING HOLDINGS COMPANY |
EAST RIDING HOLDINGS COMPANY (REGISTERED NUMBER: 02126698) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
For The Year Ended 31 December 2022 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 6 |
Report of the Independent Auditors | 8 |
Consolidated Statement of Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Financial Statements | 19 |
EAST RIDING HOLDINGS COMPANY |
COMPANY INFORMATION |
For The Year Ended 31 December 2022 |
DIRECTORS: |
REGISTERED OFFICE: |
BUSINESS ADDRESS: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants & Statutory Auditors |
5&6 Manor Court |
Manor Garth |
Scarborough |
North Yorkshire |
YO11 3TU |
EAST RIDING HOLDINGS COMPANY (REGISTERED NUMBER: 02126698) |
GROUP STRATEGIC REPORT |
For The Year Ended 31 December 2022 |
The directors present their strategic report of the company and the group for the year ended 31 December 2022. |
REVIEW OF BUSINESS |
The group consists of a holding company, three trading companies and two dormant companies. East Riding Sacks Limited manufactures and sells paper sacks, Trenton (Hull) Limited sells motor cars and Trenton Business Systems Limited provided IT services but is no longer active. The results for the group show a pre-tax profit of £2,101,409 (2021: £1,909,810) for the year and sales of £100.1M (2021: £88.5M). |
BUSINESS ENVIRONMENT |
East Riding Sacks Limited is the largest paper sack manufacturer in the United Kingdom. It produces paper sacks for a variety of industries, but mainly food and industrial companies, both in the United Kingdom and Europe. The results for the company show a pre-tax profit of £1,855,729 (2021: £1,401,036) for the year and sales of £30.65 million (2021: £25.62 million). |
We are confident that due to investment in equipment and employees in the recent past we will be able to continue to maintain our share of the market, in spite of the current economic climate due to the quality of the product we produce, the service that we provide and the steps we have taken to safeguard our future purchases and sales using our best estimates as to what the future will bring. We expect the market we are in to remain competitive during the remainder of 2023 and into 2024 and we remain confident that we can maintain our level of performance in the future. Since the year end the Company has invested in a new printer and associated accessories, a new pallet wrapper and new fork lift trucks. This will maintain the Company's position at the forefront of paper sack production technology for the immediate future. |
Trenton (Hull) Limited ('Trenton') operates motor dealerships from sites in Hull and Grimsby. It holds Nissan, Peugeot, Citroën, SsangYong and Dodge franchises specialising in new car sales, used car sales and after sales. |
2022 proved to be another good trading year for Trenton finishing the year with a trading profit. |
Continued senior focus upon the company's strategy of keeping all the business working together in terms of process, reporting and control, aftersales targeting and a renewed empowerment for the sales management teams across the company enabled the maximisation of every available opportunity within the dealerships. |
Continued focus on departmental expense controls and comparisons were introduced into the monthly operational reviews of each business through the year which maintained the most efficient cost base in 2021 to also maximise the company's result in 2022. |
Whilst turnover grew throughout in comparison to the previous year, it is worth noting that the increased cost of funding, inflation and utilities did negatively affect the profitability through the later part of the year. |
The Trust and holding company can continue to draw confidence from the ongoing developments within the company and the profitable platform it continues to build for the continued future success of the group. |
STRATEGY |
The group's overriding objective is to achieve a sustained rate of growth by consolidating its market share in the areas it already operates in and moving in to new markets when a profitable opportunity arises. The key elements to the group's strategy for growth are to build a broad product range based on quality and reliability, continued investment in equipment at the factory and showrooms, to remain competitive and the retention of the key members of the workforce to maintain good communications with customers and suppliers both old and new. |
EAST RIDING HOLDINGS COMPANY (REGISTERED NUMBER: 02126698) |
GROUP STRATEGIC REPORT |
For The Year Ended 31 December 2022 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The management of the business and the execution of the Group's strategy are subject to a number of risks. |
The key business risks and uncertainties affecting the Group are considered to relate to competition from both national and international manufacturers, the costs of raw materials, which are almost entirely imported, employee retention, the control of costs related to them, the effect of electricity charges on the economy in general and the Group in particular, the large increases in bank base rate and the consequences of the war in the Ukraine. This war has greatly affected sack paper availability in Europe as a consequence of the trade embargo imposed on Russian paper supply. The cost of raw materials is also affected considerably by the Sterling/Euro exchange rate. Steps have been taken by management to mitigate the potential damage caused by these events and this has been successfully achieved by our staff with no material adverse effect on the Group. By negotiating agreements with long-term suppliers, the Group has been able to secure raw material supply to meet its full capacity in the foreseeable future. Although the threat of Covid-19 has diminished the Group has continued to spend time and money to make sure that the premises exceed the governments Covid-19 workplace regulations and to ensure that the Group's workforce are protected at all times in a Covid-19 secure environment. The Group has not been materially affected by the Covid-19 pandemic and continues to work at full capacity with a full order book. |
The increasing Bank Of England base rate continues to increase the cost of all funding lines of Trenton compared to recent years which of course negatively affects the P&L of the Group. The increased cost of funding is also negatively affecting the amounts of finance income received from the group finance suppliers also affecting the profitability. |
The increased cost of utilities and inflation also continue to negatively impact the business. |
KEY PERFORMANCE INDICATORS |
EAST RIDING SACKS LIMITED |
2022 | 2021 |
Gross profit margin | 30.35% | 27.75% |
Net profit margin (before tax) | 6.05% | 5.47% |
TRENTON (HULL) LIMITED |
2022 | 2021 |
Gross profit margin | 5.11% | 5.30% |
Net profit margin (before tax) | 0.15% | 0.52% |
Number of new cars sold | 1,031 | 1,208 |
Number of used cars sold | 1,688 | 1,706 |
EAST RIDING HOLDINGS COMPANY (REGISTERED NUMBER: 02126698) |
GROUP STRATEGIC REPORT |
For The Year Ended 31 December 2022 |
SECTION 172(1) STATEMENT |
The Board of Directors, in line with their duties under s172 of the Companies Act 2006, act in a way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole, and in doing so have regard to a range of matters when making decisions for the long term. Key decisions and matters that are of strategic importance to the Company are appropriately informed by s172 factors. |
At East Riding Holdings Company and its subsidiaries, our Board of Directors, management and employees are committed to upholding high standards of corporate governance and business ethics. We firmly believe that timely disclosures, transparent accounting policies, rigorous internal control systems and a strong and independent Board go a long way in preserving shareholder trust while maximising long-term shareholder value. |
This s172 statement explains how East Riding Holdings Company and its subsidiaries Directors: |
- Have engaged with employees, suppliers, customers and others; and |
- Have had regard to employee interests, the need to foster the company's business relationships with suppliers, customers and others, and the effect of that regard, including on the principal decisions taken by the company during the financial year. |
The s172 statement focuses on matters of strategic importance to East Riding Holdings Company and its subsidiaries, and the level of information disclosed is consistent with the size and the complexity of the business. |
General confirmation of directors' duties |
East Riding Holdings Company and its subsidiaries have a number of Committees appointed by the Board at group level to focus on specific areas and take informed decisions within the framework of delegated authority, and make specific recommendations to the Board. All decisions and recommendations of the committees are placed before the Board for information or for approval. |
When making decisions, each Director ensures that they act in the way they consider, in good faith, would most likely promote the Group' success for the benefit of its members as a whole, and in doing so have regard (among matters) to: |
The likely consequences of any decision in the long term |
The Directors understand the business and the demand to innovate the latest products in order to ensure the ongoing success of the group. Whilst investing for the future, the Board also recognises that we must focus on meeting the current supply and demand and the requirements of our suppliers and customers. |
The interests of the company's employees |
At East Riding Holdings Company and its subsidiaries employees are at the heart of our business. The Management team invites a fair and open two way relationship with all employees. We believe in respecting every individual, regardless of position. At East Riding Holdings Company and its subsidiaries employees are heard and have the opportunity to express their opinion. The organisation believes in equality and discourages any discrimination based on any caste, creed, race, religion, age and gender etc. We are committed to employee's safety and well-being. Our HR policies are well documented and available to each employee. Management assumes responsibility that such policies are adhered to. |
The need to foster the company's business relationships with suppliers, customers and others |
Customers and suppliers are key stakeholders in our business. In a competitive price driven environment, stock is the vital component at the keenest price. We engage in regular communication with our suppliers as well as customers. We recognise the fact that the stronger the relationships with suppliers the more we are able to serve our customers better. We remain committed to all our stakeholders for ethical business practices. |
EAST RIDING HOLDINGS COMPANY (REGISTERED NUMBER: 02126698) |
GROUP STRATEGIC REPORT |
For The Year Ended 31 December 2022 |
The impact of the company's operations on the community and environment |
At East Riding Holdings Company we are focussed on serving the community and future sustainability. The trading subsidiaries are focussed on reducing the environmental footprint across all operations. This is prevalent in the car dealership business which has a number of environmental factors to consider mainly the impact of petrol and diesel cars on the environment. The motor industry is moving towards the targets for removing the petrol and diesel cars from production. The subsidiary is reliant on Nissan, Peugeot, Citroën, SsangYong and Dodge's ability to respond to changing customer tastes and trends for new cars. |
The desirability of the company maintaining a reputation for high standards of business conduct |
East Riding Holdings Company and its subsidiaries Boards periodically review their Corporate Governance requirements as the commitment to upholding the highest standards are set at board level but is filtered down throughout the whole group organisation. |
The need to act fairly as between members of the company |
The Directors consider and focus their attention to ensure that the company's performance is in line with their strategic vision for both the short and long term objectives. The impact of this on all of the stakeholders is reviewed. The Directors believe they act fairly. |
The Board has created a culture of honesty, integrity and respect of the East Riding Holdings Company and its subsidiaries core values and principles. The company has set a number guidelines on Code of Business Conduct and Ethics (COBE) through to various Environment and Employment policies. |
Principal decisions |
We define principal decisions taken by the Board as those decisions that are of a strategic nature and that are significant to any of our key stakeholder groups. As outlined in the FRC Guidance on the Strategic Report, we include decisions related to capital allocation and dividend policy. |
ON BEHALF OF THE BOARD: |
EAST RIDING HOLDINGS COMPANY (REGISTERED NUMBER: 02126698) |
REPORT OF THE DIRECTORS |
For The Year Ended 31 December 2022 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2022. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2022. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
FINANCIAL INSTRUMENTS |
The group's principal financial instruments comprise bank balances, trade creditors, trade debtors and loans to the company. The main purpose of these instruments is to raise funds for the group's operations and to finance the group's working capital. The group's operations expose it to a variety of financial risks that include liquidity risk and interest rate risk. The group's approach to managing risks applicable to the financial instruments concerned is shown below. |
In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts. |
In respect of loans these comprise a bank loan and a loan from a related undertaking. The interest rate on the bank loan is variable and repayment is by quarterly installments with a balance at maturity. The loan from a related undertaking is interest free and repayable on demand. The directors are aware of the group's financial requirements and have determined that this will only be repaid, in whole or in part, when funds are available. |
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. |
Trade creditors and hire purchase liability liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. |
FREEHOLD LAND AND BUILDINGS |
In the opinion of the directors the market value of freehold land and buildings is not significantly different to net book value. |
EAST RIDING HOLDINGS COMPANY (REGISTERED NUMBER: 02126698) |
REPORT OF THE DIRECTORS |
For The Year Ended 31 December 2022 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group 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; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
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 group's auditors are 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 group's auditors are aware of that information. |
AUDITORS |
The auditors, Fortus Audit LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
EAST RIDING HOLDINGS COMPANY |
Opinion |
We have audited the financial statements of East Riding Holdings Company (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2022 and of the group's 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, 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 we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. 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. |
Opinions 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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
EAST RIDING HOLDINGS COMPANY |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page seven, 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
EAST RIDING HOLDINGS COMPANY |
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 a Report of the Auditors 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. |
Irregularities, including fraud are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect to irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We obtained an understanding of the legal and regulatory frameworks that are applicable to the parent company and the group and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (UK GAAP and the Companies Act 2006) and the relevant tax compliance regulations in the UK. |
We understood how the company and group is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through discussions with those charged with governance. |
We assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur, by discussion with management from various parts of the group to understand where they considered there was a susceptibility to fraud. We considered the procedures and controls that the group has established to prevent and detect fraud, and how these are monitored by management. |
Based on our understanding, we designed our audit procedures to identify any non-compliance with laws and regulations identified in the paragraphs above. |
We also performed audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. |
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 Report of the Auditors. |
Use of our report |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Accountants & Statutory Auditors |
5&6 Manor Court |
Manor Garth |
Scarborough |
North Yorkshire |
YO11 3TU |
EAST RIDING HOLDINGS COMPANY (REGISTERED NUMBER: 02126698) |
CONSOLIDATED |
STATEMENT OF COMPREHENSIVE |
INCOME |
For The Year Ended 31 December 2022 |
2022 | 2021 |
as | restated |
Notes | £ | £ |
TURNOVER | 3 | 100,101,654 | 88,526,239 |
Cost of sales | 87,252,292 | 78,157,003 |
GROSS PROFIT | 12,849,362 | 10,369,236 |
Administrative expenses | 10,390,404 | 8,424,820 |
2,458,958 | 1,944,416 |
Other operating income | 85 | 45,229 |
OPERATING PROFIT | 5 | 2,459,043 | 1,989,645 |
Interest payable and similar expenses | 7 | 357,634 | 79,835 |
PROFIT BEFORE TAXATION | 2,101,409 | 1,909,810 |
Tax on profit | 8 | 420,131 | 420,402 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,681,278 |
1,489,408 |
Profit attributable to: |
Owners of the parent | 1,666,886 | 1,479,615 |
Non-controlling interests | 14,392 | 9,793 |
1,681,278 | 1,489,408 |
Total comprehensive income attributable to: |
Owners of the parent | 1,666,886 | 1,479,615 |
Non-controlling interests | 14,392 | 9,793 |
1,681,278 | 1,489,408 |
EAST RIDING HOLDINGS COMPANY (REGISTERED NUMBER: 02126698) |
CONSOLIDATED BALANCE SHEET |
31 December 2022 |
2022 | 2021 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 | 8,776,226 | 8,203,047 |
Investments | 12 | - | - |
8,776,226 | 8,203,047 |
CURRENT ASSETS |
Stocks | 13 | 19,242,722 | 15,630,531 |
Debtors | 14 | 8,601,995 | 8,950,677 |
Cash at bank and in hand | 2,998,408 | 1,973,522 |
30,843,125 | 26,554,730 |
CREDITORS |
Amounts falling due within one year | 15 | 22,264,974 | 19,043,793 |
NET CURRENT ASSETS | 8,578,151 | 7,510,937 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 17,354,377 | 15,713,984 |
CREDITORS |
Amounts falling due after more than one year |
16 |
(6,531,152 |
) |
(6,682,510 |
) |
PROVISIONS FOR LIABILITIES | 21 | (275,503 | ) | (165,030 | ) |
NET ASSETS | 10,547,722 | 8,866,444 |
CAPITAL AND RESERVES |
Called up share capital | 22 | 400,000 | 400,000 |
Revaluation reserve | 23 | 478,154 | 487,442 |
Retained earnings | 23 | 9,546,109 | 7,869,935 |
SHAREHOLDERS' FUNDS | 10,424,263 | 8,757,377 |
NON-CONTROLLING INTERESTS | 24 | 123,459 | 109,067 |
TOTAL EQUITY | 10,547,722 | 8,866,444 |
The financial statements were approved by the Board of Directors and authorised for issue on 19 October 2023 and were signed on its behalf by: |
Mr A Brocklehurst - Director |
EAST RIDING HOLDINGS COMPANY (REGISTERED NUMBER: 02126698) |
COMPANY BALANCE SHEET |
31 December 2022 |
2022 | 2021 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Debtors | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES | ( |
) | ( |
) |
CREDITORS |
Amounts falling due after more than one year |
16 |
NET LIABILITIES | ( |
) | ( |
) |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Retained earnings | 23 | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) | ( |
) |
Company's profit for the financial year | 103,297 | 143,694 |
The financial statements were approved by the Board of Directors and authorised for issue on |
EAST RIDING HOLDINGS COMPANY (REGISTERED NUMBER: 02126698) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
For The Year Ended 31 December 2022 |
Called up |
share | Retained | Revaluation |
capital | earnings | reserve |
£ | £ | £ |
Balance at 1 January 2021 | 400,000 | 6,381,032 | 496,730 |
Changes in equity |
Total comprehensive income | - | 1,488,903 | (9,288 | ) |
Balance at 31 December 2021 | 400,000 | 7,869,935 | 487,442 |
Changes in equity |
Total comprehensive income | - | 1,676,174 | (9,288 | ) |
Balance at 31 December 2022 | 400,000 | 9,546,109 | 478,154 |
Non-controlling | Total |
Total | interests | equity |
£ | £ | £ |
Balance at 1 January 2021 | 7,277,762 | 99,274 | 7,377,036 |
Changes in equity |
Total comprehensive income | 1,479,615 | 9,793 | 1,489,408 |
Balance at 31 December 2021 | 8,757,377 | 109,067 | 8,866,444 |
Changes in equity |
Total comprehensive income | 1,666,886 | 14,392 | 1,681,278 |
Balance at 31 December 2022 | 10,424,263 | 123,459 | 10,547,722 |
EAST RIDING HOLDINGS COMPANY (REGISTERED NUMBER: 02126698) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
For The Year Ended 31 December 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2021 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2021 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2022 | ( |
) | ( |
) |
EAST RIDING HOLDINGS COMPANY (REGISTERED NUMBER: 02126698) |
CONSOLIDATED CASH FLOW STATEMENT |
For The Year Ended 31 December 2022 |
2022 | 2021 |
as | restated |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,258,676 | 449,193 |
Interest paid | (356,619 | ) | (79,497 | ) |
Interest element of hire purchase payments paid |
(1,015 |
) |
(338 |
) |
Tax paid | (391,621 | ) | (238,000 | ) |
Net cash from operating activities | 1,509,421 | 131,358 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (1,329,539 | ) | (487,993 | ) |
Sale of tangible fixed assets | 51,500 | 79,900 |
Net cash from investing activities | (1,278,039 | ) | (408,093 | ) |
Cash flows from financing activities |
Loan repayments in year | (326,375 | ) | (100,000 | ) |
New hire purchases in the year | - | 51,035 |
Capital repayments in year | (10,984 | ) | (114,296 | ) |
Government grants | - | 45,144 |
Net cash from financing activities | (337,359 | ) | (118,117 | ) |
Decrease in cash and cash equivalents | (105,977 | ) | (394,852 | ) |
Cash and cash equivalents at beginning of year |
2 |
(517,087 |
) |
(122,235 |
) |
Cash and cash equivalents at end of year |
2 |
(623,064 |
) |
(517,087 |
) |
EAST RIDING HOLDINGS COMPANY (REGISTERED NUMBER: 02126698) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
For The Year Ended 31 December 2022 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2022 | 2021 |
as | restated |
£ | £ |
Profit before taxation | 2,101,409 | 1,909,810 |
Depreciation charges | 710,929 | 682,982 |
Profit on disposal of fixed assets | (6,068 | ) | (18,201 | ) |
Government grants | - | (45,144 | ) |
Finance costs | 357,634 | 79,835 |
3,163,904 | 2,609,282 |
(Increase)/decrease in stocks | (3,612,191 | ) | 70,528 |
Decrease/(increase) in trade and other debtors | 348,682 | (2,711,687 | ) |
Increase in trade and other creditors | 2,358,281 | 481,070 |
Cash generated from operations | 2,258,676 | 449,193 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 2,998,408 | 1,973,522 |
Bank overdrafts | (3,621,472 | ) | (2,490,609 | ) |
(623,064 | ) | (517,087 | ) |
Year ended 31 December 2021 |
31.12.21 | 1.1.21 |
as restated |
£ | £ |
Cash and cash equivalents | 1,973,522 | 2,584,615 |
Bank overdrafts | (2,490,609 | ) | (2,706,850 | ) |
(517,087 | ) | (122,235 | ) |
EAST RIDING HOLDINGS COMPANY (REGISTERED NUMBER: 02126698) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
For The Year Ended 31 December 2022 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.1.22 | Cash flow | At 31.12.22 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,973,522 | 1,024,886 | 2,998,408 |
Bank overdrafts | (2,490,609 | ) | (1,130,863 | ) | (3,621,472 | ) |
(517,087 | ) | (105,977 | ) | (623,064 | ) |
Debt |
Finance leases | (47,374 | ) | 10,984 | (36,390 | ) |
Debts falling due within 1 year | (2,122,583 | ) | 186,000 | (1,936,583 | ) |
Debts falling due after 1 year | (6,646,119 | ) | 140,374 | (6,505,745 | ) |
(8,816,076 | ) | 337,358 | (8,478,718 | ) |
Total | (9,333,163 | ) | 231,381 | (9,101,782 | ) |
EAST RIDING HOLDINGS COMPANY (REGISTERED NUMBER: 02126698) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
For The Year Ended 31 December 2022 |
1. | STATUTORY INFORMATION |
East Riding Holdings Company is a private company , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The nature of the company's operations and principal activity is that of a holding company. |
As at the point of authorising the accounts, and for the foreseeable future, the directors consider the going concern assumption to still be appropriate. The directors acknowledge that, given the current rapidly changing business and social environment, there are likely to be significant unknown factors which may present themselves. |
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
The presentational currency of the financial statements is £ Sterling. The company's main place of business is provided on the company information page of the financial statements. |
Basis of consolidation |
The consolidated accounts incorporate the accounts of East Riding Holdings Company and all of its subsidiaries and all figures used relate to the year ended 31 December 2022. |
Goodwill arising on the acquisition of subsidiaries has been amortised over 10 years on a straight line basis. |
Significant judgements and estimates |
In the application of the group'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. |
EAST RIDING HOLDINGS COMPANY (REGISTERED NUMBER: 02126698) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
2. | ACCOUNTING POLICIES - continued |
Turnover and other income |
Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows:- |
Turnover from the sale of sacks is recognised when the significant risks and rewards of ownership of the goods have been transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on despatch of goods. |
Turnover from the sale of cars is recognised when the significant risks and rewards of ownership of the goods have been transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on delivery or collection of vehicles. |
Tangible fixed assets |
Freehold property | - |
Short leasehold | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow moving items. Finished goods stock includes stock held on consignment and the corresponding liability is recorded within trade creditors. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, 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. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
EAST RIDING HOLDINGS COMPANY (REGISTERED NUMBER: 02126698) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
2. | ACCOUNTING POLICIES - continued |
Foreign currencies |
Foreign currency transactions are initially recognised by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction. |
Monetary assets and liabilities denominated in a foreign currency at the balance sheet date are translated using the closing rate. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
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 group operates defined contribution pension schemes. The assets of the schemes are held separately from those of the group in independently administered funds. Contributions payable for the year are charged to profit or loss in the period to which they relate. |
Going concern |
Although the balance sheet of the holding company shows a net liability position at the year end the accounts have been prepared on a going concern basis. Within creditors are loans of £1,775,000 and preference shares of £4,000,000 both of which have no set date for repayment and are owed to shareholders of the company. |
The directors have considered the impact of COVID-19, Brexit and the war in Ukraine in relation to their assessment of going concern and in their opinion have taken all reasonable steps to mitigate these factors. As at the point of authorising the accounts, and for the foreseeable future, the directors consider the going concern assumption to still be appropriate. The directors acknowledge that given the current rapidly changing business and social environment, there are likely to be significant unknown factors which may present themselves. |
Debtors and creditors |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account. |
Government grants |
The group receives government grants in respect of Coronavirus job retention scheme. These grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the group will comply with conditions attaching to them and the grants will be received using the accrual model. |
EAST RIDING HOLDINGS COMPANY (REGISTERED NUMBER: 02126698) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the principal activities of the group. |
An analysis of turnover by geographical market is given below: |
2022 | 2021 |
as | restated |
£ | £ |
United Kingdom | 98,013,213 | 86,555,384 |
Europe | 1,257,790 | 1,158,435 |
Other | 830,651 | 812,420 |
100,101,654 | 88,526,239 |
4. | EMPLOYEES AND DIRECTORS |
2022 | 2021 |
as | restated |
£ | £ |
Wages and salaries | 9,801,419 | 9,365,006 |
Social security costs | 1,063,081 | 951,220 |
Other pension costs | 257,450 | 245,435 |
11,121,950 | 10,561,661 |
The average number of employees during the year was as follows: |
2022 | 2021 |
as | restated |
Management and administration | 65 | 72 |
Sales | 90 | 79 |
Production | 92 | 85 |
The average number of employees by undertakings that were proportionately consolidated during the year was 247 (2021 - 236 ) . |
2022 | 2021 |
as | restated |
£ | £ |
Directors' remuneration | 597,818 | 901,153 |
Directors' pension contributions to money purchase schemes | 9,508 | 30,153 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 4 |
EAST RIDING HOLDINGS COMPANY (REGISTERED NUMBER: 02126698) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
4. | EMPLOYEES AND DIRECTORS - continued |
Information regarding the highest paid director is as follows: |
2022 | 2021 |
as | restated |
£ | £ |
Emoluments etc | 204,308 | 372,669 |
Pension contributions to money purchase schemes | 4,508 | - |
The directors of each of the group entities are considered to be the key management personnel and their remuneration is disclosed below: |
2022 | 2021 |
£ | £ |
Remuneration | 1,327,688 | 1,488,757 |
Pension contributions | 29,822 | 32,861 |
1,357,510 | 1,521,618 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2022 | 2021 |
as | restated |
£ | £ |
Hire of plant and machinery | 146,654 | 203,027 |
Depreciation - owned assets | 700,131 | 672,184 |
Depreciation - assets on hire purchase contracts | 10,797 | 10,797 |
Profit on disposal of fixed assets | (6,068 | ) | (18,201 | ) |
6. | AUDITORS' REMUNERATION |
Fees payable to the company's auditors for the audit of the group's financial statements totalled £18,500 (2021 : £11,865). This includes £3,500 audit fee for the parent company (2021 : £3,500). Fees for other services provided during the year totalled £17,462 (2021 : £12,555). |
Fees payable to other auditors in respect of two subsidiary companies are £17,004 for audit services (2021: £17,796) and £3,000 (2021: £4,000) for other services. |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2022 | 2021 |
as | restated |
£ | £ |
Bank interest | 51,340 | 27,759 |
Bank loan interest | 305,279 | 51,738 |
Hire purchase | 1,015 | 338 |
357,634 | 79,835 |
EAST RIDING HOLDINGS COMPANY (REGISTERED NUMBER: 02126698) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2022 | 2021 |
as | restated |
£ | £ |
Current tax: |
Corporation tax | 314,010 | 414,718 |
Prior year tax | (4,352 | ) | - |
Total current tax | 309,658 | 414,718 |
Deferred tax: |
Timing of relief | 80,881 | 5,684 |
Change of future tax rate | 29,592 | - |
Total deferred tax | 110,473 | 5,684 |
Tax on profit | 420,131 | 420,402 |
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: |
2022 | 2021 |
as | restated |
£ | £ |
Profit before tax | 2,101,409 | 1,909,810 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2021 - 19 %) |
399,268 |
362,864 |
Effects of: |
Expenses not deductible for tax purposes | 23,936 | 20,126 |
Capital allowances in excess of depreciation | (38,599 | ) | - |
Depreciation in excess of capital allowances | - | 35,186 |
Adjustments to tax charge in respect of previous periods | (4,352 | ) | - |
Profit on sale of fixed assets | (1,153 | ) | (3,458 | ) |
PAYE Settlement Payments allowable | (69,442 | ) | - |
Deferred tax | 110,473 | 5,684 |
Total tax charge | 420,131 | 420,402 |
9. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
EAST RIDING HOLDINGS COMPANY (REGISTERED NUMBER: 02126698) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
10. | PRIOR YEAR ADJUSTMENT |
During the year it has come to the attention of the Directors that the non-controlling interest had been incorrectly calculated in previous years. This error has been corrected in the comparative figures and has resulted in a reduction in non-controlling interest and an increase in Shareholders' funds as at 31 December 2021 of £49,197. |
11. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Short | Plant and |
property | leasehold | machinery |
£ | £ | £ |
COST |
At 1 January 2022 | 7,295,227 | 242,999 | 20,045,990 |
Additions | 571,683 | - | 227,495 |
Disposals | - | - | - |
Reclassification/transfer | 78,192 | - | - |
At 31 December 2022 | 7,945,102 | 242,999 | 20,273,485 |
DEPRECIATION |
At 1 January 2022 | 817,988 | 181,578 | 18,996,237 |
Charge for year | 124,992 | 12,900 | 304,151 |
Eliminated on disposal | - | - | - |
At 31 December 2022 | 942,980 | 194,478 | 19,300,388 |
NET BOOK VALUE |
At 31 December 2022 | 7,002,122 | 48,521 | 973,097 |
At 31 December 2021 | 6,477,239 | 61,421 | 1,049,753 |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2022 | 1,187,132 | 943,772 | 554,793 | 30,269,913 |
Additions | 211,530 | 238,516 | 80,315 | 1,329,539 |
Disposals | - | (95,255 | ) | - | (95,255 | ) |
Reclassification/transfer | (78,192 | ) | - | - | - |
At 31 December 2022 | 1,320,470 | 1,087,033 | 635,108 | 31,504,197 |
DEPRECIATION |
At 1 January 2022 | 902,252 | 665,193 | 503,618 | 22,066,866 |
Charge for year | 88,143 | 128,447 | 52,295 | 710,928 |
Eliminated on disposal | - | (49,823 | ) | - | (49,823 | ) |
At 31 December 2022 | 990,395 | 743,817 | 555,913 | 22,727,971 |
NET BOOK VALUE |
At 31 December 2022 | 330,075 | 343,216 | 79,195 | 8,776,226 |
At 31 December 2021 | 284,880 | 278,579 | 51,175 | 8,203,047 |
EAST RIDING HOLDINGS COMPANY (REGISTERED NUMBER: 02126698) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
11. | TANGIBLE FIXED ASSETS - continued |
Group |
The group bankers hold a debenture, including a first fixed charge, over the freehold land and property and a floating charge over all tangible assets. |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2022 |
and 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Same as parent company and shown on page 1 of these accounts. |
Nature of business: |
% |
Class of shares: | holding |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves |
Registered office: Same as parent company and shown on page 1 of these accounts. |
Nature of business: |
% |
Class of shares: | holding |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
EAST RIDING HOLDINGS COMPANY (REGISTERED NUMBER: 02126698) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
12. | FIXED ASSET INVESTMENTS - continued |
Registered office: Same as parent company and shown on page 1 of these accounts. |
Nature of business: |
% |
Class of shares: | holding |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Registered office: 1046 Anlaby High Road, Hull, England. |
Nature of business: |
% |
Class of shares: | holding |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Profit for the year |
Registered office: 1046 Anlaby High Road, Hull, England. |
Nature of business: |
% |
Class of shares: | holding |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Loss for the year | ( |
) | ( |
) |
13. | STOCKS |
Group |
2022 | 2021 |
as | restated |
£ | £ |
Raw materials and consumables | 5,183,489 | 4,449,376 |
Finished goods and work in |
progress | 14,059,233 | 11,181,155 |
19,242,722 | 15,630,531 |
EAST RIDING HOLDINGS COMPANY (REGISTERED NUMBER: 02126698) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2022 | 2021 | 2022 | 2021 |
as restated |
as restated |
£ | £ | £ | £ |
Trade debtors | 7,788,097 | 7,922,437 |
Amounts owed by group undertakings | - | - |
Other debtors | 28,413 | 26,701 |
Prepayments and accrued income | 785,485 | 1,001,539 |
8,601,995 | 8,950,677 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2022 | 2021 | 2022 | 2021 |
as restated |
as restated |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 17) | 3,783,055 | 2,673,192 |
Other loans (see note 17) | 1,775,000 | 1,940,000 |
Hire purchase contracts (see note 18) | 10,983 | 10,983 |
Trade creditors | 14,946,040 | 12,181,711 |
Amounts owed to group undertakings | - | - |
Corporation tax | 101,326 | 183,289 |
Social security and other taxes | 1,119,456 | 1,604,995 |
Other creditors | 273,115 | 233,903 |
Accruals and deferred income | 255,999 | 215,720 |
22,264,974 | 19,043,793 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2022 | 2021 | 2022 | 2021 |
as restated |
as restated |
£ | £ | £ | £ |
Bank loans (see note 17) | 2,505,745 | 2,646,119 |
Preference shares (see note 17) | 4,000,000 | 4,000,000 |
Hire purchase contracts (see note 18) | 25,407 | 36,391 |
6,531,152 | 6,682,510 |
EAST RIDING HOLDINGS COMPANY (REGISTERED NUMBER: 02126698) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
17. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2022 | 2021 | 2022 | 2021 |
as restated |
as restated |
£ | £ | £ | £ |
Amounts falling due within one year or | on demand: |
Bank overdrafts | 3,621,472 | 2,490,609 |
Bank loans | 161,583 | 182,583 |
Other loans | 1,775,000 | 1,940,000 |
5,558,055 | 4,613,192 |
Amounts falling due between one and | two years: |
Bank loans | 167,165 | 254,216 |
Amounts falling due between two and | five years: |
Bank loans | 2,338,580 | 2,391,903 |
Amounts falling due in more than five | years: |
Repayable otherwise than by | instalments |
Preference shares | 4,000,000 | 4,000,000 | 4,000,000 | 4,000,000 |
Details of shares shown as liabilities are as follows: |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | as restated |
£ | £ |
Preference | £1 | 4,000,000 | 4,000,000 |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2022 | 2021 |
as | restated |
£ | £ |
Net obligations repayable: |
Within one year | 10,983 | 10,983 |
Between one and five years | 25,407 | 36,391 |
36,390 | 47,374 |
EAST RIDING HOLDINGS COMPANY (REGISTERED NUMBER: 02126698) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
18. | LEASING AGREEMENTS - continued |
Group |
Non-cancellable | operating leases |
2022 | 2021 |
as | restated |
£ | £ |
Within one year | 272,519 | 259,349 |
Between one and five years | 437,449 | 481,815 |
In more than five years | 196,871 | 257,871 |
906,839 | 999,035 |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2022 | 2021 | 2022 | 2021 |
as restated |
as restated |
£ | £ | £ | £ |
Bank overdrafts | 3,621,472 | 2,490,609 |
Bank loans | 2,667,328 | 2,828,702 |
Other loans | 1,775,000 | 1,940,000 | 1,775,000 | 1,940,000 |
Hire purchase contracts | 36,390 | 47,374 | - | - |
8,100,190 | 7,306,685 |
The borrowings from HSBC are secured by a debenture including a first fixed charge over group freehold and leasehold properties, a floating charge over other assets and a composite multilateral guarantee given by all group companies. |
The loan from Forrest Investments Ltd is secured by a floating charge on all the assets of the company subject to the charge held by the company's bankers, it is interest free and repayable on demand. |
20. | FINANCIAL INSTRUMENTS |
2022 | 2021 |
as restated |
£ | £ |
Financial assets that are debt instruments measured at amortised cost |
Cash in hand | 2,998,408 | 1,973,522 |
Debtors (Note 14) | 8,601,995 | 8,950,677 |
Financial liabilities measured at amortised cost |
Creditors due within one year (Note 15) | (22,264,974 | ) | (19,043,793 | ) |
Creditors due after one year (Note 16) | (6,531,152 | ) | (6,682,510 | ) |
EAST RIDING HOLDINGS COMPANY (REGISTERED NUMBER: 02126698) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
21. | PROVISIONS FOR LIABILITIES |
Group |
2022 | 2021 |
as | restated |
£ | £ |
Deferred tax |
Accelerated capital allowances | 275,503 | 165,030 |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2022 | 165,030 |
Charge to Statement of Comprehensive Income during year | 110,473 |
Balance at 31 December 2022 | 275,503 |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | as restated |
£ | £ |
Ordinary | £1 | 400,000 | 400,000 |
23. | RESERVES |
Group |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
At 1 January 2022 | 7,869,935 | 487,442 | 8,357,377 |
Profit for the year | 1,666,886 | 1,666,886 |
Depreciation adjustment | 9,288 | (9,288 | ) | - |
At 31 December 2022 | 9,546,109 | 478,154 | 10,024,263 |
Company |
Retained |
earnings |
£ |
At 1 January 2022 | ( |
) |
Profit for the year |
At 31 December 2022 | ( |
) |
EAST RIDING HOLDINGS COMPANY (REGISTERED NUMBER: 02126698) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
24. | NON-CONTROLLING INTERESTS |
Included in non-controlling interests are the relevant proportions of the capital and reserves attributable to shares in subsidiary companies held by or on behalf of persons other than the parent company, East Riding Holdings Company. |
25. | PENSION COMMITMENTS |
The group operates defined contribution pension schemes. Contributions are charged in the profit and loss account as they accrue. The charge for the year was £257,450 (2021: £233,530). The amount of contributions outstanding at 31 December 2022 was £48,542 (2021: £45,599). |
26. | CONTINGENT LIABILITIES |
In respect of the liabilities to HSBC, each of the group companies have entered into an unlimited inter-company cross guarantee. |
The net bank borrowing of the group at 31 December 2022 was £3,314,045 (2021: £3,349,635). |
27. | CAPITAL COMMITMENTS |
The group has capital commitments at the year end date in respect of plant and machinery of £1,630.6k (2021 - £738.4k). |
28. | RELATED PARTY DISCLOSURES |
During the year the company paid £120,000 (2021 : £120,000) in consultancy fees to Forrest Investments Ltd. Included in creditors falling due within one year is a loan of £1,775,000 (2021 : £1,940,000) owing to Forrest Investments Ltd. Forrest Investments Ltd is under the control of The Ann Richardson Number One Trust, the controlling party of East Riding Holdings Company. |
During the year the group paid £20,920 (2021: £8,101) in legal and professional fees to Andrew Jackson Solicitors LLP, of whom a partner is a director of the company. |
During the year the group paid £4,000 (2021: £Nil) in legal and professional fees to NGF Consultancy, of whom a partner is a director of the company. |
During the year the group paid £5,800 (2021: £Nil) in legal and professional fees to cbaSadofskys, of whom a director is a director of the company. |
29. | ULTIMATE CONTROLLING PARTY |
The company is under the control of The Ann Richardson Number One Trust, a trust based in Liechtenstein. |