Company registration number 07622337 (England and Wales)
ADAM HEWITT LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
PAGES FOR FILING WITH REGISTRAR
ADAM HEWITT LTD
BALANCE SHEET
AS AT
31 MAY 2023
31 May 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
168,529
134,106
Tangible assets
4
3,325,144
2,749,290
3,493,673
2,883,396
Current assets
Stocks
153,868
124,666
Debtors
5
569,445
856,741
Investments
6
1,650,000
-
0
Cash at bank and in hand
1,958,470
1,091,328
4,331,783
2,072,735
Creditors: amounts falling due within one year
7
(2,455,042)
(1,440,666)
Net current assets
1,876,741
632,069
Total assets less current liabilities
5,370,414
3,515,465
Creditors: amounts falling due after more than one year
8
(1,168)
-
0
Provisions for liabilities
(339,834)
(190,808)
Net assets
5,029,412
3,324,657
Capital and reserves
Called up share capital
100
100
Capital redemption reserve
375,373
375,373
Profit and loss reserves
4,653,939
2,949,184
Total equity
5,029,412
3,324,657

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 May 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

ADAM HEWITT LTD
BALANCE SHEET (CONTINUED)
AS AT
31 MAY 2023
31 May 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 14 November 2023 and are signed on its behalf by:
A Hewitt
Director
Company Registration No. 07622337
ADAM HEWITT LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
- 3 -
1
Accounting policies
Company information

Adam Hewitt Ltd is a private company, limited by shares and incorporated in England and Wales. The company's registered number is 07622337. The address of its registered office is Nield House Farm, Worcester Road, Harvington, Kidderminster, DY10 4LP.

 

The principal activity of the company during the year continued to be that of repairing and selling machinery.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention modified to include the revaluation of freehold properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.3
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Amortisation is provided on cost on a straight line basis over 10 years.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following annual bases:

Freehold land and buildings
2% straight line
Leasehold land and buildings
10% straight line
Plant and equipment
20 - 25% reducing balance
Fixtures and fittings
25% reducing balance
Office equipment
33% reducing balance
Motor vehicles
18% reducing balance

Freehold land is not depreciated.

ADAM HEWITT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 4 -

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

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

ADAM HEWITT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 5 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.9
Current asset investments

Current asset investments are held at cost less impairment. Losses on impairment are recognised in profit or loss for the period.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

ADAM HEWITT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 6 -
1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

2
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Total
20
20
3
Intangible fixed assets
Other intangible assets
£
Cost
At 1 June 2022
173,421
Additions
54,313
At 31 May 2023
227,734
Amortisation
At 1 June 2022
39,315
Amortisation charged for the year
19,890
At 31 May 2023
59,205
Carrying amount
At 31 May 2023
168,529
At 31 May 2022
134,106
ADAM HEWITT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 7 -
4
Tangible fixed assets
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Office equipment
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 June 2022
1,785,500
37,319
1,645,586
60,288
82,761
122,900
3,734,354
Additions
-
0
-
0
736,749
2,696
9,206
61,929
810,580
Disposals
-
0
-
0
-
0
-
0
(8,261)
-
0
(8,261)
At 31 May 2023
1,785,500
37,319
2,382,335
62,984
83,706
184,829
4,536,673
Depreciation
At 1 June 2022
-
0
16,475
831,025
31,197
52,095
54,272
985,064
Depreciation charged in the year
-
0
3,732
193,119
7,718
12,092
15,140
231,801
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(5,336)
-
0
(5,336)
At 31 May 2023
-
0
20,207
1,024,144
38,915
58,851
69,412
1,211,529
Carrying amount
At 31 May 2023
1,785,500
17,112
1,358,191
24,069
24,855
115,417
3,325,144
At 31 May 2022
1,785,500
20,844
814,561
29,091
30,666
68,628
2,749,290
Included within freehold land and buildings is freehold land of £532,870 (2022: £532,870) that is not depreciated.
ADAM HEWITT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 8 -
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
208,935
36,268
Other debtors
68,740
717,720
Prepayments and accrued income
291,770
102,753
569,445
856,741
6
Current asset investments
2023
2022
£
£
Other investments
1,650,000
-
0
7
Creditors: amounts falling due within one year
2023
2022
£
£
Obligations under finance leases
189
45,255
Trade creditors
541,442
405,461
Corporation tax
331,326
185,950
Other taxation and social security
25,001
47,579
Other creditors
684,104
183,141
Accruals and deferred income
872,980
573,280
2,455,042
1,440,666

Obligations under finance lease contracts are secured on the assets to which they relate.

8
Creditors: amounts falling due after more than one year
2023
2022
£
£
Obligations under finance leases
1,168
-
0

Obligations under finance lease contracts are secured on the assets to which they relate.

9
Financial commitments, guarantees and contingent liabilities

Under one of its service contracts, the company has to reimburse the net sales value of the issued vehicles it has recovered and sold, back to the insurer. This only becomes payable when the company has sold the vehicles and is not classified as stock. At the 31 May 2023, the vehicles held by the company had a potential sales value of £446,243 (2022: £779,311).

ADAM HEWITT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 9 -
10
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2023
2022
£
£
383,333
464,000
11
Related party transactions

At the year end a balance of £Nil (2022: £42,500) was due to the company from Mobile Security Systems Limited, a company in which A Hewitt is a director.

 

2023-05-312022-06-01false14 November 2023CCH SoftwareCCH Accounts Production 2023.100repairing and selling machineryA HewittP GreenD Hewitt076223372022-06-012023-05-31076223372023-05-31076223372022-05-3107622337core:Goodwill2023-05-3107622337core:Goodwill2022-05-3107622337core:LandBuildingscore:OwnedOrFreeholdAssets2023-05-3107622337core:LandBuildingscore:LongLeaseholdAssets2023-05-3107622337core:PlantMachinery2023-05-3107622337core:FurnitureFittings2023-05-3107622337core:OfficeEquipment2023-05-3107622337core:MotorVehicles2023-05-3107622337core:LandBuildingscore:OwnedOrFreeholdAssets2022-05-3107622337core:LandBuildingscore:LongLeaseholdAssets2022-05-3107622337core:PlantMachinery2022-05-3107622337core:FurnitureFittings2022-05-3107622337core:OfficeEquipment2022-05-3107622337core:MotorVehicles2022-05-3107622337core:CurrentFinancialInstrumentscore:WithinOneYear2023-05-3107622337core:CurrentFinancialInstrumentscore:WithinOneYear2022-05-3107622337core:Non-currentFinancialInstrumentscore:AfterOneYear2023-05-3107622337core:Non-currentFinancialInstrumentscore:AfterOneYear2022-05-3107622337core:CurrentFinancialInstruments2023-05-3107622337core:CurrentFinancialInstruments2022-05-3107622337core:ShareCapital2023-05-3107622337core:ShareCapital2022-05-3107622337core:CapitalRedemptionReserve2023-05-3107622337core:CapitalRedemptionReserve2022-05-3107622337core:RetainedEarningsAccumulatedLosses2023-05-3107622337core:RetainedEarningsAccumulatedLosses2022-05-3107622337bus:Director12022-06-012023-05-3107622337core:IntangibleAssetsOtherThanGoodwill2022-06-012023-05-3107622337core:LandBuildingscore:OwnedOrFreeholdAssets2022-06-012023-05-3107622337core:LandBuildingscore:LongLeaseholdAssets2022-06-012023-05-3107622337core:PlantMachinery2022-06-012023-05-3107622337core:FurnitureFittings2022-06-012023-05-3107622337core:ComputerEquipment2022-06-012023-05-3107622337core:MotorVehicles2022-06-012023-05-310762233712022-06-012023-05-31076223372021-06-012022-05-3107622337core:Goodwill2022-05-3107622337core:Goodwillcore:ExternallyAcquiredIntangibleAssets2022-06-012023-05-3107622337core:Goodwill2022-06-012023-05-3107622337core:LandBuildingscore:OwnedOrFreeholdAssets2022-05-3107622337core:LandBuildingscore:LongLeaseholdAssets2022-05-3107622337core:PlantMachinery2022-05-3107622337core:FurnitureFittings2022-05-3107622337core:OfficeEquipment2022-05-3107622337core:MotorVehicles2022-05-31076223372022-05-3107622337core:OfficeEquipment2022-06-012023-05-3107622337core:Non-currentFinancialInstruments2023-05-3107622337core:Non-currentFinancialInstruments2022-05-3107622337core:CurrentFinancialInstrumentscore:WithinOneYear2022-06-012023-05-3107622337core:Non-currentFinancialInstrumentscore:AfterOneYear2022-06-012023-05-3107622337bus:PrivateLimitedCompanyLtd2022-06-012023-05-3107622337bus:SmallCompaniesRegimeForAccounts2022-06-012023-05-3107622337bus:FRS1022022-06-012023-05-3107622337bus:AuditExemptWithAccountantsReport2022-06-012023-05-3107622337bus:Director22022-06-012023-05-3107622337bus:Director32022-06-012023-05-3107622337bus:FullAccounts2022-06-012023-05-31xbrli:purexbrli:sharesiso4217:GBP