Registration number:
Holmestone Ltd
for the Year Ended 31 December 2022
Holmestone Ltd
Contents
Company Information |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Consolidated Profit and Loss Account |
|
Consolidated Statement of Comprehensive Income |
|
Consolidated Balance Sheet |
|
Balance Sheet |
|
Consolidated Statement of Changes in Equity |
|
Statement of Changes in Equity |
|
Consolidated Statement of Cash Flows |
|
Notes to the Financial Statements |
|
Detailed Consolidated Profit and Loss Account |
Holmestone Ltd
Company Information
Directors |
P Fay B E Isard |
Registered office |
|
Auditors |
|
Holmestone Ltd
Strategic Report for the Year Ended 31 December 2022
The directors present their strategic report for the year ended 31 December 2022.
Principal activity
The principal activity of the group is was that of manufacture and distribution of electrical and electronic apparatus
Fair review of the business
The results of the year under review and the financial position at the year end were considered satisfactory by the directors.
The results of the group show a pre-tax profit of £12.3 million (2021: £9.5 million) for the year and sales of £31.6 million (2021: £24.0 million). The company has cash at bank of £6.6 million (2021: £3.7 million).
Holmestone Ltd
Strategic Report for the Year Ended 31 December 2022 (continued)
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 international, national and independent manufacturers and distributors, employee retention and product availability.
(a) Credit risk - The group's exposure to credit risk is influenced mainly by the individual characteristics of each
customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk of the industry and country in which customers operate.
The group has established a credit policy under which each new customer is analysed individually for creditworthiness before the group's standard payment and delivery terms and conditions are offered. The group review includes external ratings, if they are available, and in some cases references. Sale limits are established for each customer and reviewed regularly.
The group is closely monitoring the economic environment in the eurozone and is taking actions to limit its exposure to customers in countries experiencing particular economic volatility.
Goods are sold subject to retention of title clauses, so that in the event of non-payment the group may have a secured claim.
(b) Interest rate risk - The group has borrowings and this risk is regarded as low given the current economic climate.
(c) Liquidity risk - The group has a policy of maintaining sufficient liquid resources to ensure that it has resources to meet working capital requirements.
(d) Price risk - The group trades in international markets and hence is susceptible to pricing pressures from competitors and currency fluctuations.
(e) Cash flow risk - The group maintains sufficient cash reserves to minimise the risk of disruption in cash flows.
(f) Exposure to foreign economies - The group has a number of overseas markets at present and this gives rise to foreign exchange risks. Changing legislation and other regulations can affect product specification, as with the effect of the UK leaving the European Union. More diversity in legislation can only increase manufacturing costs. Foreign exchange risk is mitigated by careful use of currency contracts.
(g) Supply risk - The group source their raw materials from overseas imports and there is a risk that deliveries could be delayed. However, the group maintains sufficient stock levels of raw materials of at least six weeks to mitigate this risk.
Potential Brexit related risks:
There remains significant challenges with regards to Brexit. Outlined below are the key Brexit related risks and their potential impact on the company's business.
1. Increased administrative costs relating to imported EU goods, such as data collection, declaration and customs costs at ports and airports. Our shippers will bear the burden of such costs. We will negotiate with our shippers to mitigate the costs passed onto our business.
2. Costs arising from delays at UK and EU ports. We do not anticipate material costs from delays. We have built up sufficient stocks of raw materials.
Holmestone Ltd
Strategic Report for the Year Ended 31 December 2022 (continued)
3. Increases in tariffs and duties on goods exported to the EU. Tariffs charged on raw material imports from outside the EU are the same as World Trade Organisation tariff rates. Therefore, there is no risk to the Group. To mitigate the risk of double duty, paying duty on selling price rather than cost price, the Group will consider selling to a group company located within the EU. The group company within the EU will sell to our customer.
4. The impact of delays and costs above will not have any effect on fulfilment of contractual delivery, quality and supply requirements as the Group plans to build in extra lead time on orders due to be delivered to the customer for a few months after Brexit. Breaches of contract are very unlikely to occur as promised delivery times will build in sufficient delay due to Brexit.
5. Changes to the value of Sterling makes our raw material imports more expensive but this will be more than compensated by making our goods cheaper in our export markets. The Group exports 75% of its goods.
6. The Group has utilised EU labour to date. If in the future if EU labour is in short supply we believe that this will be replaced with labour from other areas of the world. Our location we believe will always have enough labour supply. London will continue to attract workers with or without Brexit. Currently the Group has workers from several countries outside the EU and maybe the proportion of workers from outside the EU will increase.
7. Legal and compliance issues arising from changes in laws and regulations relating to trading could be an issue but until we know what the trading arrangements are we are unable to quantify the impact. Product specifications are set by trade approval companies and not by Government. We see no Government interference in this area. We have a longstanding German business within our Group so we do not foresee costs related to setting up Companies or operations within the EU.
Potential COVID-19 risks:
1) Potential closure of manufacturing facility if COVID-19 transmitted at the workplace. The Group has introduced stringent measures to make its premises COVID secure. The Group has a COVID-19 risk assessment in place that has led to a number of changes in how the Group operates. These include; wearing of PPE in all areas where physical distancing is not possible; increased cleaning regime of all surfaces; mandatory regular washing of hands; requiring workers to phone in if they believe they have symptoms and self-isolating according to Government guidelines; staggered breaks and lunch times; reduced mixing between production departments; shared machinery and tools cleaned after every use; external visitors reduced and required to wear PPE and not to use the Group's facilities; employees requiring to self-isolate are paid double SSP from day one of absence to encourage employees to follow the rules; cycle to work scheme relaunched to give employees an alternative to public transport; employees travelling abroad required to share travel plans so the Group can enforce self-isolation rules. The changes have resulted in very low levels of self-isolation amongst the workforce (Q4 2020 2% of workforce self-isolating at any one time).
2) Raw material deliveries delayed due to Imports being stopped. The Group has always kept buffer stocks of at least 6 weeks to avoid this being an issue.
3) Deliveries to customers being delayed due to exports being stopped. Deliveries to customers in the EU are usually by road. If the ports are closed we would switch to deliveries by air wherever possible.
Key Performance Indicators
The key financial performance indicators of the group are gross profit margin and turnover.
The gross profit margin of the group for the year under review was £16.8 million (2021: £12.6 million) producing a gross profit margin of 53.3% (2021: 52.7%) on turnover of £31.7 million (2021: £24.0 million)
Research and Development
The group continues to invest resources in improving the range of electrical and electronic apparatus on offer.
The directors regard the investment in research and development as integral to the continuing success of the business and ensuring the group can provide our customers with products they wish to stock and ones which meet the customers requirements.
Future Outlook
The external commercial environment is expected to remain competitive for large project orders and certain product ranges. The directors remain confident that the profitability can be maintained as the product range and markets expand.
The directors are pleased to report that they regard the position of the business to be satisfactory.
Holmestone Ltd
Strategic Report for the Year Ended 31 December 2022 (continued)
3. Increases in tariffs and duties on goods exported to the EU. Tariffs charged on raw material imports from outside the EU are the same as World Trade Organisation tariff rates. Therefore, there is no risk to the Group. To mitigate the risk of double duty, paying duty on selling price rather than cost price, the Group will consider selling to a group company located within the EU. The group company within the EU will sell to our customer.
4. The impact of delays and costs above will not have any effect on fulfilment of contractual delivery, quality and supply requirements as the Group plans to build in extra lead time on orders due to be delivered to the customer for a few months after Brexit. Breaches of contract are very unlikely to occur as promised delivery times will build in sufficient delay due to Brexit.
5. Changes to the value of Sterling makes our raw material imports more expensive but this will be more than compensated by making our goods cheaper in our export markets. The Group exports 75% of its goods.
6. The Group has utilised EU labour to date. If in the future if EU labour is in short supply we believe that this will be replaced with labour from other areas of the world. Our location we believe will always have enough labour supply. London will continue to attract workers with or without Brexit. Currently the Group has workers from several countries outside the EU and maybe the proportion of workers from outside the EU will increase.
7. Legal and compliance issues arising from changes in laws and regulations relating to trading could be an issue but until we know what the trading arrangements are we are unable to quantify the impact. Product specifications are set by trade approval companies and not by Government. We see no Government interference in this area. We have a longstanding German business within our Group so we do not foresee costs related to setting up Companies or operations within the EU.
Potential COVID-19 risks:
1) Potential closure of manufacturing facility if COVID-19 transmitted at the workplace. The Group has introduced stringent measures to make its premises COVID secure. The Group has a COVID-19 risk assessment in place that has led to a number of changes in how the Group operates. These include; wearing of PPE in all areas where physical distancing is not possible; increased cleaning regime of all surfaces; mandatory regular washing of hands; requiring workers to phone in if they believe they have symptoms and self-isolating according to Government guidelines; staggered breaks and lunch times; reduced mixing between production departments; shared machinery and tools cleaned after every use; external visitors reduced and required to wear PPE and not to use the Group's facilities; employees requiring to self-isolate are paid double SSP from day one of absence to encourage employees to follow the rules; cycle to work scheme relaunched to give employees an alternative to public transport; employees travelling abroad required to share travel plans so the Group can enforce self-isolation rules. The changes have resulted in very low levels of self-isolation amongst the workforce (Q4 2020 2% of workforce self-isolating at any one time).
2) Raw material deliveries delayed due to Imports being stopped. The Group has always kept buffer stocks of at least 6 weeks to avoid this being an issue.
3) Deliveries to customers being delayed due to exports being stopped. Deliveries to customers in the EU are usually by road. If the ports are closed we would switch to deliveries by air wherever possible.
Key Performance Indicators
The key financial performance indicators of the group are gross profit margin and turnover.
The gross profit margin of the group for the year under review was £16.8 million (2021: £12.6 million) producing a gross profit margin of 53.3% (2021: 52.7%) on turnover of £31.7 million (2021: £24.0 million)
Research and Development
The group continues to invest resources in improving the range of electrical and electronic apparatus on offer.
The directors regard the investment in research and development as integral to the continuing success of the business and ensuring the group can provide our customers with products they wish to stock and ones which meet the customers requirements.
Future Outlook
The external commercial environment is expected to remain competitive for large project orders and certain product ranges. The directors remain confident that the profitability can be maintained as the product range and markets expand.
The directors are pleased to report that they regard the position of the business to be satisfactory.
Approved and authorised by the
......................................... |
Holmestone Ltd
Directors' Report for the Year Ended 31 December 2022
The directors present their report and the for the year ended 31 December 2022.
Directors of the group
The directors who held office during the year were as follows:
Financial instruments
Price risk, credit risk, liquidity risk and cash flow risk
The company has a normal exposure to price, credit, liquidity and cash flow risks arising from trading activities.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Approved and authorised by the
......................................... |
Holmestone Ltd
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual 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 group and the company 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 apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Holmestone Ltd
Independent Auditor's Report to the Members of Holmestone Ltd
Opinion
We have audited the financial statements of Holmestone Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, 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).
In our opinion the financial statements:
• | give a true and fair view of the state of the group's and the parent company's 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 auditor 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 director's 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 ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Holmestone Ltd
Independent Auditor's Report to the Members of Holmestone Ltd (continued)
Opinion on other matter 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 Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and 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 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 7], 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 is 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.
Auditor 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Holmestone Ltd
Independent Auditor's Report to the Members of Holmestone Ltd (continued)
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the Officers and other management (as required by auditing standards).
• We had regard to laws and regulations in areas that directly affect the financial statements including financial reporting (including related trade union legislation) and taxation legislation.We considered that extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.
• With the exception of any known or possible non-compliance, and as required by auditing standards, our work in respect of these was limited to enquiry of the Officers.
• We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.
• We addressed the risk of fraud through management override of controls, by testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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 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.
......................................
For and on behalf of
Savoy House
Savoy Circus
W3 7DA
Holmestone Ltd
Consolidated Profit and Loss Account for the Year Ended 31 December 2022
Note |
31.12.22 |
31.12.21 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating profit |
|
|
|
Gain on financial assets at fair value through profit and loss account |
- |
|
|
Income from shares in group undertakings |
|
|
|
Other interest receivable and similar income |
|
|
|
Gain on investment |
- |
|
|
Interest payable and similar expenses |
( |
( |
|
3,815,936 |
5,076,806 |
||
Share of profit of equity accounted investees |
|
|
|
Profit before tax |
|
|
|
Tax on profit |
( |
( |
|
Profit for the financial year |
|
|
|
Profit/(loss) attributable to: |
|||
Owners of the company |
|
|
|
Minority interests |
|
|
|
|
|
Holmestone Ltd
Consolidated Statement of Comprehensive Income for the Year Ended 31 December 2022
31.12.22 |
31.12.21 |
|
Profit for the year |
|
|
Surplus on revaluation of other assets |
- |
|
Total comprehensive income for the year |
|
|
Total comprehensive income attributable to: |
||
Owners of the company |
|
|
Minority interests |
|
|
|
|
Holmestone Ltd
(Registration number: 03685414)
Consolidated Balance Sheet as at 31 December 2022
Note |
31.12.22 |
31.12.21 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
Investment property |
|
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
- |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
101 |
101 |
|
Share premium reserve |
3,524,999 |
3,524,999 |
|
Revaluation reserve |
3,202,202 |
3,202,202 |
|
Other reserves |
7,935,063 |
8,063,684 |
|
Retained earnings |
8,323,034 |
4,941,712 |
|
Equity attributable to owners of the company |
22,985,399 |
19,732,698 |
|
Minority interests |
15,288,745 |
13,851,611 |
|
Shareholders' funds |
38,274,144 |
33,584,309 |
Approved and authorised by the
......................................... |
Holmestone Ltd
(Registration number: 03685414)
Balance Sheet as at 31 December 2022
Note |
31.12.22 |
31.12.21 |
|
Fixed assets |
|||
Investments |
|
|
|
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
101 |
101 |
|
Share premium reserve |
3,524,999 |
3,524,999 |
|
Retained earning |
3,867,825 |
3,032,297 |
|
Shareholders' funds |
7,392,925 |
6,557,397 |
The company made a profit after tax for the financial year of £3,835,528 (2021 - profit of £844,532).
Approved and authorised by the
......................................... |
Holmestone Ltd
Consolidated Statement of Changes in Equity for the Year Ended 31 December 2022
Equity attributable to the parent company
Share capital |
Share premium |
Revaluation reserve |
Merger reserve |
Other reserves |
Retained earning |
Total |
Non- controlling interests |
Total equity |
|
At 1 January 2022 |
|
|
|
|
( |
|
|
|
|
Profit for the year |
- |
- |
- |
- |
- |
|
|
|
|
Dividends |
- |
- |
- |
- |
- |
( |
( |
- |
( |
Other movements on reserves |
- |
- |
- |
- |
(128,621) |
- |
(128,621) |
- |
(128,621) |
At 31 December 2022 |
|
|
|
|
( |
|
|
|
|
Holmestone Ltd
Consolidated Statement of Changes in Equity for the Year Ended 31 December 2022 (continued)
Equity attributable to the parent company
Share capital |
Share premium |
Revaluation reserve |
Merger reserve |
Other reserves |
Retained earning |
Total |
Non- controlling interests |
Total equity |
|
At 1 January 2021 |
|
|
- |
|
( |
|
|
|
|
Profit for the year |
- |
- |
- |
- |
- |
|
|
|
|
Other comprehensive income |
- |
- |
|
- |
- |
- |
|
- |
|
Total comprehensive income |
- |
- |
|
- |
- |
|
|
|
|
Dividends |
- |
- |
- |
- |
- |
( |
( |
- |
( |
Transfers |
- |
- |
- |
- |
- |
(3,202,202) |
(3,202,202) |
- |
(3,202,202) |
Other movements on reserves |
- |
- |
- |
- |
122,779 |
- |
122,779 |
- |
122,779 |
At 31 December 2021 |
|
|
|
|
( |
|
|
|
|
Holmestone Ltd
Statement of Changes in Equity for the Year Ended 31 December 2022
Share capital |
Share premium |
Retained earning |
Total |
|
At 1 January 2022 |
|
|
|
|
Profit for the year |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
At 31 December 2022 |
|
|
|
|
Share capital |
Share premium |
Retained earning |
Total |
|
At 1 January 2021 |
|
|
|
|
Profit for the year |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
At 31 December 2021 |
|
|
|
|
Holmestone Ltd
Consolidated Statement of Cash Flows for the Year Ended 31 December 2022
Note |
31.12.22 |
31.12.21 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Profit on disposal of tangible assets |
( |
- |
|
Share of operating profit in associates |
( |
( |
|
Changes in fair value of investment property |
- |
(4,250,000) |
|
Other movements |
- |
102,142 |
|
Government grants |
- |
(65,448) |
|
Finance Costs |
52,382 |
39,732 |
|
Finance Income |
63,965 |
(851,105) |
|
Tax on profit |
1,612,209 |
1,809,798 |
|
|
|
||
Working capital adjustments |
|||
Increase in stocks |
( |
( |
|
Increase in trade debtors |
(1,606,311) |
(2,331,833) |
|
Increase in trade creditors |
(334,524) |
882,540 |
|
Increase/(decrease) in provisions |
|
( |
|
Cash generated from operations |
|
|
|
Interest paid |
(52,383) |
(39,732) |
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Purchase of tangible fixed assets |
(550,350) |
(233,177) |
|
Interest received |
63,965 |
279 |
|
Dividends received |
3,941,555 |
800,075 |
|
Net cash flows from investing activities |
|
|
|
Cash flows from financing activities |
|||
Loan repayments in the year |
- |
(133,405) |
|
Amounts introduced by directors |
- |
(117,255) |
|
Equity dividends paid |
(9,669,118) |
(1,036,558) |
|
Net cash flows from financing activities |
( |
( |
|
Net increase in cash and cash equivalents |
|
|
|
Cash and cash equivalents at 1 January |
|
|
|
Cash and cash equivalents at 31 December |
6,595,219 |
3,675,707 |
Holmestone Ltd
Notes to the Financial Statements for the Year Ended 31 December 2022
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
England
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The presentational currency is Pound Sterling (£).
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December 2022.
Holmestone Ltd
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
2 |
Accounting policies (continued) |
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the group.
The group recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the group's activities.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Holmestone Ltd
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
2 |
Accounting policies (continued) |
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Computer equipment |
33% straight line basis |
Plant and machinery |
15% straight line basis |
Fixtures and fittings |
15% straight line basis |
Motor vehicles |
25% straight line basis |
Investment property
Investment properties are accounted as follows:
1. Investment properties are initially recognised at cost which includes purchase cost and any directly attributable expenditure.
2. Investment properties whose fair value can be measured reliably are measured at fair value. The surplus or deficit on revaluation is recognised in the profit and loss account accumulated in the profit and loss reserve unless a deficit below original cost, or its reversal, on an indiviudal investment property is expected to ber permanent, in whcih case it is recognised in the profit and loss account for the year.
Holmestone Ltd
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
2 |
Accounting policies (continued) |
Goodwill
Goodwill is amortised over its expected useful life which is estimated to be ten years.
Goodwill is assessed for impairment when there are indicators of impairment and any impairment is charged to the income statement. No reversals of impariment are recognised.
Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
Patent and licenses are being amortisied evenly over their estimated usefule life of nil years.
Development costs are being amortised evenly over their estimated useful life of nil years.
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Holmestone Ltd
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
2 |
Accounting policies (continued) |
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Provisions
Provisions are recognised when the group has an obligation at the reporting date as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Holmestone Ltd
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
Revenue |
The analysis of the group's Turnover for the year from continuing operations is as follows:
31.12.22 |
31.12.21 |
|
Sale of goods |
|
|
Operating profit |
Arrived at after charging/(crediting)
31.12.22 |
31.12.21 |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Research and development cost |
|
|
Foreign exchange gains |
( |
( |
Operating lease expense - plant and machinery |
|
- |
Profit on disposal of property, plant and equipment |
( |
- |
Other interest receivable and similar income |
31.12.22 |
31.12.21 |
|
Interest income on bank deposits |
|
|
Interest payable and similar expenses |
31.12.22 |
31.12.21 |
|
Interest on bank overdrafts and borrowings |
|
|
Interest expense on other finance liabilities |
|
|
Foreign exchange gains |
|
- |
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
Holmestone Ltd
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
7 |
Staff costs (continued) |
31.12.22 |
31.12.21 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
Redundancy costs |
- |
( |
Other employee expense |
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
31.12.22 |
31.12.21 |
|
Production |
|
|
Administration and support |
|
|
Sales |
|
|
|
|
Auditors' remuneration |
31.12.22 |
31.12.21 |
|
Audit of these financial statements |
41,250 |
38,500 |
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
31.12.22 |
31.12.21 |
|
Current taxation |
||
UK corporation tax |
|
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2021 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
Holmestone Ltd
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
9 |
Taxation (continued) |
31.12.22 |
31.12.21 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Increase from effect of joint-ventures and associates results reported net of tax |
- |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
- |
|
Tax decrease from effect of capital allowances and depreciation |
( |
( |
Tax decrease from effect of adjustment in research and development tax credit |
( |
( |
Other tax effects for reconciliation between accounting profit and tax expense (income) |
( |
|
Total tax charge |
|
|
Holmestone Ltd
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
Intangible assets |
Group
Goodwill |
Trademarks, patents and licenses |
Internally generated software development costs |
Other intangible assets |
||
Cost or valuation |
|||||
At 1 January 2022 |
|
|
|
|
|
At 31 December 2022 |
|
|
|
|
|
Amortisation |
|||||
At 1 January 2022 |
|
|
|
|
|
Amortisation charge |
|
|
|
|
|
At 31 December 2022 |
|
|
|
|
|
Carrying amount |
|||||
At 31 December 2022 |
|
- |
- |
|
|
At 31 December 2021 |
|
- |
- |
|
Total |
|||||
Cost or valuation |
|||||
At 1 January 2022 |
|
||||
At 31 December 2022 |
|
||||
Amortisation |
|||||
At 1 January 2022 |
|
||||
Amortisation charge |
|
||||
At 31 December 2022 |
|
||||
Carrying amount |
|||||
At 31 December 2022 |
|
||||
At 31 December 2021 |
|
Holmestone Ltd
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
Tangible assets |
Group
Land and buildings |
Fixtures and fittings |
Plant and machinery |
Office equipment |
|||
Cost or valuation |
||||||
At 1 January 2022 |
|
|
|
|
||
Additions |
|
|
|
|
||
Foreign exchange movements |
- |
|
( |
- |
||
At 31 December 2022 |
|
|
|
|
||
Depreciation |
||||||
At 1 January 2022 |
|
|
|
|
||
Charge for the year |
|
|
|
|
||
Foreign exchange movements |
- |
|
|
- |
||
At 31 December 2022 |
|
|
|
|
||
Carrying amount |
||||||
At 31 December 2022 |
|
|
|
|
||
At 31 December 2021 |
|
|
|
|
Motor vehicles |
Total |
|||||
Cost or valuation |
||||||
At 1 January 2022 |
|
|
||||
Additions |
- |
|
||||
Foreign exchange movements |
|
|
||||
At 31 December 2022 |
|
|
||||
Depreciation |
||||||
At 1 January 2022 |
|
|
||||
Charge for the year |
|
|
||||
Foreign exchange movements |
|
|
||||
At 31 December 2022 |
|
|
||||
Carrying amount |
||||||
At 31 December 2022 |
|
|
||||
At 31 December 2021 |
|
|
Holmestone Ltd
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
Investment properties |
Group
31.12.22 |
|
At 1 January 2020 |
|
At 31 December 2020 |
|
Investments |
Group
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the group holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
||||
2022 |
2021 |
||||||
Subsidiary undertakings |
|||||||
|
Savoy House, Savoy Circus, 78 Old Oak Common Lane, London, W3 7DA |
|
|
|
|||
United Kingdom |
|||||||
|
Impress House, Mansell Road, Acton, London W3 7QH |
|
|
|
|||
United Kingdom |
|||||||
|
11777 Katy Freeway, Suite 395, Houston, Texas 77079 |
|
|
|
|||
USA |
|||||||
|
Charlottenstrasse 45-51, 72764 Reutlingen |
|
|
|
|||
Germany |
|||||||
|
11777 Katy Freeway, Suite 395, Houston, Texas 77079 |
|
|
|
|||
USA |
|||||||
|
78-80 Old OAk Common Lane, Savoy House, Savoy Circus, London W3 7DA |
|
|
|
Holmestone Ltd
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
13 |
Investments (continued) |
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
||||
United Kingdom |
|||||||
|
4 Impasse Joliot Curie 64110 Jurancon |
|
|
|
|||
France |
|||||||
|
11767 Katy Freeway, 1100 Houston TX 77079 |
|
|
|
|||
USA |
|||||||
Associates |
|||||||
|
Impress House, Mansell Road, Acton, London W3 7QH |
Ordinary |
|
|
|||
United Kingdom |
Holmestone Ltd
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
13 |
Investments (continued) |
Company
31.12.22 |
31.12.21 |
|
Investments in subsidiaries |
|
|
Investments in associates |
|
|
Other investments |
6,450 |
6,450 |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 January 2022 |
|
Provision |
|
Carrying amount |
|
At 31 December 2022 |
|
At 31 December 2021 |
|
Associates |
£ |
Cost |
|
At 1 January 2022 |
|
Provision |
|
Carrying amount |
|
At 31 December 2022 |
|
At 31 December 2021 |
|
Stocks |
Group |
Company |
|||
31.12.22 |
31.12.21 |
31.12.22 |
31.12.21 |
|
Raw materials and consumables |
- |
|
- |
- |
Finished goods and goods for resale |
|
|
- |
- |
Other inventories |
|
|
- |
- |
|
|
- |
- |
Holmestone Ltd
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
Debtors |
Group |
Company |
||||
Current |
Note |
31.12.22 |
31.12.21 |
31.12.22 |
31.12.21 |
Trade debtors |
|
|
- |
|
|
Amounts owed by related parties |
|
- |
|
|
|
Other debtors |
|
|
|
|
|
Prepayments |
|
|
- |
- |
|
Income tax asset |
|
- |
|
|
|
|
|
|
|
Cash and cash equivalents |
Group |
Company |
|||
31.12.22 |
31.12.21 |
31.12.22 |
31.12.21 |
|
Cash on hand |
|
|
- |
- |
Cash at bank |
|
|
|
|
|
|
|
|
Creditors |
Group |
Company |
||||
Note |
31.12.22 |
31.12.21 |
31.12.22 |
31.12.21 |
|
Due within one year |
|||||
Trade creditors |
|
|
- |
- |
|
Amounts due to related parties |
|
|
|
|
|
Social security and other taxes |
|
|
- |
- |
|
Other payables |
|
|
|
|
|
Accruals |
|
|
|
|
|
Income tax liability |
714,050 |
385,845 |
- |
- |
|
Other current financial liabilities |
- |
|
- |
- |
|
|
|
|
|
||
Due after one year |
|||||
Loans and borrowings |
- |
|
- |
- |
Holmestone Ltd
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
Provisions for liabilities |
Group
Warranties |
Deferred tax |
Other provisions |
Total |
|
At 1 January 2022 |
|
|
|
|
Increase (decrease) in existing provisions |
|
|
( |
|
At 31 December 2022 |
|
|
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £127,263 (2021 - £127,263 )
Share capital |
Allotted, called up and fully paid shares
31.12.22 |
31.12.21 |
|||
No. |
£ |
No. |
£ |
|
|
|
101 |
|
101 |
Holmestone Ltd
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
Loans and borrowings |
Group |
Company |
|||
31.12.22 |
31.12.21 |
31.12.22 |
31.12.21 |
|
Non-current loans and borrowings |
||||
Other borrowings |
- |
|
- |
- |
Dividends |
31.12.22 |
31.12.21 |
|||
£ |
£ |
|||
Interim dividend of £ |
5,827,563 |
1,036,557 |
||
Holmestone Ltd
Detailed Consolidated Profit and Loss Account for the Year Ended 31 December 2022
31.12.22 |
31.12.21 |
|
Turnover (analysed below) |
31,657,151 |
24,008,088 |
Cost of sales (analysed below) |
(14,774,049) |
(11,361,426) |
Gross profit |
16,883,102 |
12,646,662 |
Gross profit (%) |
53.33% |
52.68% |
Administrative expenses |
||
Employment costs (analysed below) |
(4,528,739) |
(4,264,912) |
Establishment costs (analysed below) |
(1,243,642) |
(732,949) |
General administrative expenses (analysed below) |
(2,220,987) |
(3,031,937) |
Finance charges (analysed below) |
(52,382) |
(40,459) |
Depreciation costs (analysed below) |
(1,089,879) |
(1,129,784) |
Other expenses (analysed below) |
21,735 |
26,858 |
(9,113,894) |
(9,173,183) |
|
Other operating income (analysed below) |
624,291 |
758,712 |
Operating profit |
8,393,499 |
4,232,191 |
Gain on financial assets at fair value through profit and loss (analysed below) |
- |
4,250,000 |
Income from share in group undertakings (analysed below) |
3,841,555 |
800,075 |
Other interest receivable and similar income (analysed below) |
63,965 |
51,033 |
Amounts written off investments (analysed below) |
- |
15,430 |
Interest payable and similar expenses (analysed below) |
(89,584) |
(39,732) |
3,815,936 |
5,076,806 |
|
Share of profit of equity accounted investees |
48,794 |
159,926 |
Profit before tax |
12,258,229 |
9,468,923 |
Holmestone Ltd
Detailed Consolidated Profit and Loss Account for the Year Ended 31 December 2022 (continued)
31.12.22 |
31.12.21 |
Turnover |
||
Sales |
12,271,909 |
12,011,437 |
Sales, Europe |
7,733,136 |
4,202,194 |
Sales, rest of world |
11,652,106 |
7,794,457 |
31,657,151 |
24,008,088 |
Cost of sales |
||
Opening finished goods |
(4,380,069) |
(3,364,424) |
Materials |
(186,559) |
(133,354) |
Purchases |
(12,996,963) |
(10,570,092) |
Closing finished goods |
4,932,696 |
4,380,069 |
Wages and salaries |
(1,939,730) |
(1,317,355) |
Social security |
(145,819) |
(105,549) |
Staff pensions |
(43,038) |
(40,190) |
Management charges |
(14,567) |
(210,531) |
(14,774,049) |
(11,361,426) |
Employment costs |
||
Wages and salaries |
(3,591,764) |
(3,661,163) |
Social security |
(226,312) |
(210,639) |
Directors remuneration |
(159,061) |
(226,758) |
Staff pensions |
(51,563) |
(81,366) |
Directors pensions |
(6,564) |
(5,706) |
Staff training |
(339,577) |
(50,773) |
Travelling |
(153,898) |
(28,637) |
Redundancy costs |
- |
130 |
(4,528,739) |
(4,264,912) |
Establishment costs |
||
Rent and rates |
(797,878) |
(387,649) |
Light, heat and power |
(87,950) |
(67,184) |
Insurance |
(211,940) |
(181,901) |
Repairs and maintenance |
(37,105) |
- |
Repairs and renewals |
(108,769) |
(96,215) |
(1,243,642) |
(732,949) |
General administrative expenses |
||
Telephone and fax |
(131,136) |
(69,347) |
Computer software and maintenance costs |
(157,308) |
(126,701) |
Printing, postage and stationery |
(273,448) |
(124,103) |
Hire of plant and machinery |
(64,749) |
- |
Holmestone Ltd
Detailed Consolidated Profit and Loss Account for the Year Ended 31 December 2022 (continued)
31.12.22 |
31.12.21 |
Sundry expenses |
(207,112) |
(162,534) |
Cleaning |
(6,823) |
(6,882) |
Other Admin Costs 1 |
(208,102) |
(155,373) |
Employee compensation |
(21,670) |
(48,566) |
Research and development |
(456,579) |
(637,151) |
Motor expenses |
(55,075) |
(246,640) |
Travel and subsistence |
(159,344) |
(69,618) |
Promotional expenses |
(68,253) |
1,862 |
Staff entertaining - allowable |
(4,262) |
(4,917) |
Customer entertaining |
(12,890) |
(5,696) |
Accountancy fees |
(48,808) |
(57,505) |
Auditor's remuneration - The audit of the company's annual accounts |
(41,250) |
(38,500) |
Consultancy fees |
(298,197) |
(1,117,314) |
Legal and professional fees |
(154,948) |
(108,754) |
Bad debts written off |
(148,658) |
(111,236) |
Foreign currency (gains)/losses - operating expense |
297,625 |
57,038 |
(2,220,987) |
(3,031,937) |
Finance charges |
||
Bank charges |
(52,382) |
(40,459) |
Depreciation costs |
||
Amortisation of goodwill |
(908,751) |
(875,224) |
Amortisation of development costs |
- |
(102,614) |
Depreciation of freehold property |
(42,136) |
(32,496) |
Depreciation of plant and machinery (owned) |
(77,555) |
(55,342) |
Depreciation of fixtures and fittings (owned) |
(15,984) |
(16,183) |
Depreciation of motor vehicles (owned) |
(15,080) |
(13,585) |
Depreciation of office equipment (owned) |
(30,373) |
(34,340) |
(1,089,879) |
(1,129,784) |
Other expenses |
||
(Profit)/loss on disposal of plant and machinery |
- |
26,858 |
Profit/(loss) on disposal of tangible fixed assets |
21,735 |
- |
21,735 |
26,858 |
Holmestone Ltd
Detailed Consolidated Profit and Loss Account for the Year Ended 31 December 2022 (continued)
31.12.22 |
31.12.21 |
Other operating income |
||
Other revenue |
35,500 |
5,250 |
Management fees receivable |
127,500 |
102,000 |
Rental income from investment property |
431,737 |
370,021 |
Interest received |
7,762 |
279 |
Commissions receivable |
- |
210,514 |
Sundry income |
13,223 |
8,000 |
Sundry receipts |
8,569 |
(2,800) |
Government grants receivable |
- |
20,963 |
Grants and subsidies receivable |
- |
44,485 |
624,291 |
758,712 |
Gain/(loss) on financial assets at fair value through profit and loss |
||
Investment properties fair value adjustments |
- |
4,250,000 |
Income from shares in group undertakings |
||
Dividends from shares in subsidiaries |
3,841,555 |
800,075 |
Other interest receivable and similar income |
||
Bank interest receivable |
63,965 |
51,033 |
Amounts written off investments |
||
Written off current asset investments |
- |
15,430 |
Interest payable and similar expenses |
||
Bank interest payable |
(18) |
(12) |
Bank loan interest payable |
- |
(16,142) |
Other interest payable |
(59,889) |
(23,578) |
Foreign currency (gains)/losses |
(29,677) |
- |
(89,584) |
(39,732) |