IRIS Accounts Production v23.3.0.418 00817600 Board of Directors 31.3.23 1.4.22 31.3.23 31.3.23 true true true false true true false false false false false true false Ordinary shares 0 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh008176002022-03-31008176002023-03-31008176002022-04-012023-03-31008176002021-03-31008176002021-04-012022-03-31008176002022-03-3100817600ns10:Originalns15:EnglandWales2022-04-012023-03-3100817600ns14:PoundSterlingns10:Original2022-04-012023-03-3100817600ns10:Originalns10:Director12022-04-012023-03-3100817600ns10:Original2022-04-012023-03-3100817600ns10:Originalns10:Director22022-04-012023-03-3100817600ns10:Originalns10:Consolidated2023-03-3100817600ns10:Original2023-03-3100817600ns10:Originalns10:ConsolidatedGroupCompanyAccounts2022-04-012023-03-3100817600ns10:Originalns10:PrivateLimitedCompanyLtd2022-04-012023-03-3100817600ns10:Originalns10:Consolidatedns10:FRS1022022-04-012023-03-3100817600ns10:Originalns10:Consolidatedns10:Audited2022-04-012023-03-3100817600ns10:Originalns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2022-04-012023-03-3100817600ns10:LargeMedium-sizedCompaniesRegimeForAccountsns10:Original2022-04-012023-03-3100817600ns10:Originalns10:Consolidatedns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2022-04-012023-03-3100817600ns10:LargeMedium-sizedCompaniesRegimeForAccountsns10:Originalns10:Consolidated2022-04-012023-03-3100817600ns10:Originalns10:FullAccounts2022-04-012023-03-3100817600ns10:Originalns5:Subsidiary12022-04-012023-03-3100817600ns10:Originalns5:Subsidiary22022-04-012023-03-3100817600ns10:Original12022-04-012023-03-3100817600ns10:Originalns10:OrdinaryShareClass12022-04-012023-03-3100817600ns10:Originalns10:Consolidated2022-04-012023-03-3100817600ns10:Originalns10:Director32022-04-012023-03-3100817600ns10:Originalns10:Director42022-04-012023-03-3100817600ns10:Originalns10:Director52022-04-012023-03-3100817600ns10:Originalns10:Director62022-04-012023-03-3100817600ns10:CompanySecretary1ns10:Original2022-04-012023-03-3100817600ns10:Originalns10:RegisteredOffice2022-04-012023-03-3100817600ns10:Originalns10:Consolidated2021-04-012022-03-3100817600ns10:Original2022-03-3100817600ns10:Originalns5:CurrentFinancialInstruments2023-03-3100817600ns10:Originalns5:CurrentFinancialInstruments2022-03-3100817600ns10:Originalns5:Non-currentFinancialInstruments2023-03-3100817600ns10:Originalns5:Non-currentFinancialInstruments2022-03-3100817600ns5:ShareCapitalns10:Original2023-03-3100817600ns5:ShareCapitalns10:Original2022-03-3100817600ns10:Originalns5:RetainedEarningsAccumulatedLosses2023-03-3100817600ns10:Originalns5:RetainedEarningsAccumulatedLosses2022-03-3100817600ns5:ShareCapitalns10:Original2021-03-3100817600ns10:Originalns5:RetainedEarningsAccumulatedLosses2021-03-3100817600ns10:Original2021-03-3100817600ns10:Originalns5:RetainedEarningsAccumulatedLosses2021-04-012022-03-3100817600ns10:Original2021-04-012022-03-3100817600ns10:Originalns5:RetainedEarningsAccumulatedLosses2022-04-012023-03-3100817600ns10:Originalns5:NetGoodwill2022-04-012023-03-3100817600ns5:IntangibleAssetsOtherThanGoodwillns10:Original2022-04-012023-03-3100817600ns10:Originalns5:OwnedOrFreeholdAssetsns5:LandBuildings2022-04-012023-03-3100817600ns10:Originalns5:PlantMachinery2022-04-012023-03-3100817600ns10:Originalns5:FurnitureFittings2022-04-012023-03-3100817600ns10:Originalns5:MotorVehicles2022-04-012023-03-3100817600ns10:Originalns5:LandBuildings2022-03-3100817600ns10:Originalns5:PlantMachinery2022-03-3100817600ns10:Originalns5:FurnitureFittings2022-03-3100817600ns10:Originalns5:MotorVehicles2022-03-3100817600ns10:Original2022-03-3100817600ns10:Originalns5:LandBuildings2022-04-012023-03-3100817600ns10:Originalns5:LandBuildings2023-03-3100817600ns10:Originalns5:PlantMachinery2023-03-3100817600ns10:Originalns5:FurnitureFittings2023-03-3100817600ns10:Originalns5:MotorVehicles2023-03-3100817600ns10:Originalns5:LandBuildings2022-03-3100817600ns10:Originalns5:PlantMachinery2022-03-3100817600ns10:Originalns5:FurnitureFittings2022-03-3100817600ns10:Originalns5:MotorVehicles2022-03-3100817600ns10:Originalns5:CostValuation2022-03-3100817600ns10:Originalns5:Subsidiary112022-04-012023-03-3100817600ns10:Originalns5:Subsidiary12023-03-3100817600ns10:Originalns5:Subsidiary12022-03-3100817600ns10:Original3ns5:Subsidiary22022-04-012023-03-3100817600ns10:Originalns5:Subsidiary22023-03-3100817600ns10:Originalns5:Subsidiary22022-03-3100817600ns10:Originalns5:Subsidiary22021-04-012022-03-3100817600ns10:Originalns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-03-3100817600ns10:Originalns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-03-3100817600ns10:Originalns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2023-03-3100817600ns10:Originalns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2022-03-3100817600ns10:Originalns5:HirePurchaseContractsns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-03-3100817600ns10:Originalns5:HirePurchaseContractsns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-03-3100817600ns5:BetweenOneFiveYearsns10:Originalns5:HirePurchaseContracts2023-03-3100817600ns5:BetweenOneFiveYearsns10:Originalns5:HirePurchaseContracts2022-03-3100817600ns10:Originalns5:HirePurchaseContracts2023-03-3100817600ns10:Originalns5:HirePurchaseContracts2022-03-3100817600ns10:Originalns5:WithinOneYear2023-03-3100817600ns10:Originalns5:WithinOneYear2022-03-3100817600ns5:BetweenOneFiveYearsns10:Original2023-03-3100817600ns5:BetweenOneFiveYearsns10:Original2022-03-3100817600ns10:Originalns5:MoreThanFiveYears2023-03-3100817600ns10:Originalns5:MoreThanFiveYears2022-03-3100817600ns10:Originalns5:AllPeriods2023-03-3100817600ns10:Originalns5:AllPeriods2022-03-3100817600ns5:Securedns10:Original2023-03-3100817600ns5:Securedns10:Original2022-03-3100817600ns10:Originalns5:DeferredTaxation2022-03-3100817600ns10:Originalns5:DeferredTaxation2023-03-3100817600ns10:Originalns10:OrdinaryShareClass12023-03-3100817600ns10:Originalns5:RetainedEarningsAccumulatedLosses2022-03-31
REGISTERED NUMBER: 00817600 (England and Wales)















Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 March 2023

for

Hereford Galvanizers Limited

Hereford Galvanizers Limited (Registered number: 00817600)

Contents of the Consolidated Financial Statements
for the year ended 31 March 2023










Page

Company Information 1

Group Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Consolidated Statement of Comprehensive Income 8

Consolidated Balance Sheet 9

Company Balance Sheet 10

Consolidated Statement of Changes in Equity 11

Company Statement of Changes in Equity 12

Consolidated Cash Flow Statement 13

Notes to the Consolidated Cash Flow Statement 14

Notes to the Consolidated Financial Statements 16


Hereford Galvanizers Limited

Company Information
for the year ended 31 March 2023







Directors: E J Hayes
Ms M B Jackson
Dr F Shallcross
D A Watkins
B M Gould
P Shipley





Secretary: Ms M B Jackson





Registered office: Westfields Trading Estate
Hereford
HR4 9NS





Registered number: 00817600 (England and Wales)





Auditors: Acre Accountancy Limited
Unit 2 Foley Works
Foley Industrial Estate
Hereford
Herefordshire
HR1 2SF

Hereford Galvanizers Limited (Registered number: 00817600)

Group Strategic Report
for the year ended 31 March 2023


The directors present their strategic report of the company and the group for the year ended 31 March 2023.

Review of business
The principal activities of the Company throughout the year was that of hot dip galvanizing and powder coatings of mild steel products & fabrications.The principal activities of our subsidiary company were those of providing technical services to the hot dip galvanizing industry. The Quantum division sells wire and chemicals that are used by galvanizers.
The results for the year and financial position of the company are as shown in the annexed financial statements.
Overall trading for our hot dip galvanizing & powder coating plants recovered well after the challenges brought about by COVID during the previous year. The UK economy generally saw increased output including manufacturing and the construction sector. Total coating sales were £11.8m, an increase of 20.4% compared to the previous year. The combined group had turnover of £12.8m and an operating profit of £1.4m.
Our Hereford plant performed well with demand from structural steel fabricators, power transmission manufacturers and general steel fabrications.
Our Shropshire plant continued to benefit from the new larger zinc kettle with production outputs providing more flexibility for our customers. Core market segments include engineering products, access equipment, trailers as well as general steelwork. Shropshire Powder Coaters works closely with our galvanizing customers / operations and also saw greater demand throughout the year, primary market served including gates, fencing, railings and architectural steelwork.
The Board have agreed a rolling R & M / Capital plan across all sites to update the infrastructure including re-cladding of the main production plant at Hereford, crane upgrades, improvement to transport / materials handling equipment and new welfare facilities at Oswestry.
The Company is pleased to have a wide diversity of customers and regularly assesses price / margins / volumes and risk. During the trading period the Company experienced a number of increases to direct materials, labour, spares and undertook regular price reviews with customers.
The health, safety and welfare of all our employees & stakeholders is important to the business and the Company continues to monitor such matters on a regular basis. The Company has also initiated further workforce training programmes and employee development. Towards the end of the trading period there was a great deal of uncertainty surrounding the war in Ukraine, inflationary pressures within the UK economy and the rising cost of energy.
Given the operational challenges to trading the Directors consider the results to be good.

Principal risks and uncertainties
The risks to Company are assessed on a regular basis, these include customer, supplier, liquidity, interest rates, commodity prices (zinc) and energy costs.

The Directors and Senior management team continues to assess performance of the business on a regular basis and evaluate the likelihood and potential impact of each risk and ensure appropriate action is taken to mitigate it.

On behalf of the board:





Ms M B Jackson - Director


17 November 2023

Hereford Galvanizers Limited (Registered number: 00817600)

Report of the Directors
for the year ended 31 March 2023


The directors present their report with the financial statements of the company and the group for the year ended 31 March 2023.

Principal activities
The principal activities of the Company throughout the year was that of hot dip galvanizing and powder coatings of mild steel products & fabrications.The principal activities of our subsidiary company were those of providing technical services to the hot dip galvanizing industry. The Quantum division sells wire and chemicals that are used by galvanizers.

Dividends
The directors recommended and paid dividends in the year of £80,220 to preference shareholders (2022: £80,220) and £410,000 to ordinary shareholders (2022: £196,000).

Directors
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report.

E J Hayes
Ms M B Jackson
Dr F Shallcross
D A Watkins
B M Gould

Other changes in directors holding office are as follows:

P Shipley was appointed as a director after 31 March 2023 but prior to the date of this report.

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;
- 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

Hereford Galvanizers Limited (Registered number: 00817600)

Report of the Directors
for the year ended 31 March 2023


Auditors
The auditors, Acre Accountancy Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board:





Ms M B Jackson - Director


17 November 2023

Report of the Independent Auditors to the Members of
Hereford Galvanizers Limited


Opinion
We have audited the financial statements of Hereford Galvanizers Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 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 March 2023 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
Hereford Galvanizers Limited


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 three, 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.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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 of irregularities, including fraud.

We enquired with management about the legal framework that the company operates in. We also enquired about the risk of fraud and whether they were aware of any instances of fraud. We communicated the outcome of this risk assessment with the audit team and planned our audit work accordingly. Our work in these areas is limited to analytical procedures and inspection of relevant documentation. Where a breach of operational regulations is not disclosed to us, or it is not evident from documentation that we receive during the audit, an audit will not detect that breach.

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.

Report of the Independent Auditors to the Members of
Hereford Galvanizers Limited


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.




Russell John Spencer FCCA (Senior Statutory Auditor)
for and on behalf of Acre Accountancy Limited
Unit 2 Foley Works
Foley Industrial Estate
Hereford
Herefordshire
HR1 2SF

17 November 2023

Hereford Galvanizers Limited (Registered number: 00817600)

Consolidated Statement of Comprehensive Income
for the year ended 31 March 2023

2023 2022
Notes £    £   

TURNOVER 12,784,643 10,650,093

Cost of sales (8,635,378 ) (7,104,809 )
GROSS PROFIT 4,149,265 3,545,284

Distribution costs (928,122 ) (760,380 )
Administrative expenses (1,815,825 ) (1,729,816 )
1,405,318 1,055,088

Other operating income - 11,725
OPERATING PROFIT 4 1,405,318 1,066,813

Interest receivable and similar income 39 -
1,405,357 1,066,813

Interest payable and similar expenses 5 (108,712 ) (105,607 )
PROFIT BEFORE TAXATION 1,296,645 961,206

Tax on profit 6 (256,304 ) (270,810 )
PROFIT FOR THE FINANCIAL YEAR 1,040,341 690,396

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

1,040,341

690,396

Profit attributable to:
Owners of the parent 1,040,341 690,396

Total comprehensive income attributable to:
Owners of the parent 1,040,341 690,396

Hereford Galvanizers Limited (Registered number: 00817600)

Consolidated Balance Sheet
31 March 2023

2023 2022
Notes £    £   
FIXED ASSETS
Intangible assets 9 - -
Tangible assets 10 1,945,406 1,967,069
Investments 11 - -
1,945,406 1,967,069

CURRENT ASSETS
Stocks 12 1,376,693 1,108,404
Debtors 13 2,202,024 2,504,047
Cash at bank and in hand 984,777 1,063,723
4,563,494 4,676,174
CREDITORS
Amounts falling due within one year 14 (1,424,262 ) (2,067,975 )
NET CURRENT ASSETS 3,139,232 2,608,199
TOTAL ASSETS LESS CURRENT
LIABILITIES

5,084,638

4,575,268

CREDITORS
Amounts falling due after more than one year 15 (1,051,356 ) (1,182,315 )

PROVISIONS FOR LIABILITIES 19 (291,848 ) (281,860 )
NET ASSETS 3,741,434 3,111,093

CAPITAL AND RESERVES
Called up share capital 20 17,840 17,840
Retained earnings 21 3,723,594 3,093,253
SHAREHOLDERS' FUNDS 3,741,434 3,111,093

The financial statements were approved by the Board of Directors and authorised for issue on 17 November 2023 and were signed on its behalf by:





D A Watkins - Director


Hereford Galvanizers Limited (Registered number: 00817600)

Company Balance Sheet
31 March 2023

2023 2022
Notes £    £   
FIXED ASSETS
Intangible assets 9 - -
Tangible assets 10 1,750,183 1,770,224
Investments 11 20,001 20,001
1,770,184 1,790,225

CURRENT ASSETS
Stocks 12 1,327,182 1,061,413
Debtors 13 2,093,530 2,410,779
Cash at bank and in hand 735,510 846,088
4,156,222 4,318,280
CREDITORS
Amounts falling due within one year 14 (1,139,872 ) (1,801,313 )
NET CURRENT ASSETS 3,016,350 2,516,967
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,786,534

4,307,192

CREDITORS
Amounts falling due after more than one year 15 (1,051,356 ) (1,152,705 )

PROVISIONS FOR LIABILITIES 19 (246,260 ) (236,574 )
NET ASSETS 3,488,918 2,917,913

CAPITAL AND RESERVES
Called up share capital 20 17,840 17,840
Retained earnings 21 3,471,078 2,900,073
SHAREHOLDERS' FUNDS 3,488,918 2,917,913

Company's profit for the financial year 981,005 696,302

The financial statements were approved by the Board of Directors and authorised for issue on 17 November 2023 and were signed on its behalf by:





D A Watkins - Director


Hereford Galvanizers Limited (Registered number: 00817600)

Consolidated Statement of Changes in Equity
for the year ended 31 March 2023

Called up
share Retained Total
capital earnings equity
£    £    £   

Balance at 1 April 2021 17,840 2,598,857 2,616,697

Changes in equity
Dividends - (196,000 ) (196,000 )
Total comprehensive income - 690,396 690,396
Balance at 31 March 2022 17,840 3,093,253 3,111,093

Changes in equity
Dividends - (410,000 ) (410,000 )
Total comprehensive income - 1,040,341 1,040,341
Balance at 31 March 2023 17,840 3,723,594 3,741,434

Hereford Galvanizers Limited (Registered number: 00817600)

Company Statement of Changes in Equity
for the year ended 31 March 2023

Called up
share Retained Total
capital earnings equity
£    £    £   

Balance at 1 April 2021 17,840 2,399,771 2,417,611

Changes in equity
Dividends - (196,000 ) (196,000 )
Total comprehensive income - 696,302 696,302
Balance at 31 March 2022 17,840 2,900,073 2,917,913

Changes in equity
Dividends - (410,000 ) (410,000 )
Total comprehensive income - 981,005 981,005
Balance at 31 March 2023 17,840 3,471,078 3,488,918

Hereford Galvanizers Limited (Registered number: 00817600)

Consolidated Cash Flow Statement
for the year ended 31 March 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,021,670 787,417
Interest paid (10,458 ) (9,570 )
Interest element of hire purchase payments paid (11,985 ) (15,817 )
Finance costs paid (86,269 ) (80,220 )
Government grants - 8,566
Tax paid (227,290 ) (98,688 )
Net cash from operating activities 685,668 591,688

Cash flows from investing activities
Purchase of tangible fixed assets (241,210 ) (85,589 )
Sale of tangible fixed assets 19,186 19,421
Interest received 39 -
Net cash from investing activities (221,985 ) (66,168 )

Cash flows from financing activities
Loan repayments in year (70,000 ) (28,334 )
New finance agreements 85,314 -
Capital repayments in year (122,931 ) (168,564 )
Share buyback (25,000 ) -
Equity dividends paid (410,000 ) (196,000 )
Net cash from financing activities (542,617 ) (392,898 )

(Decrease)/increase in cash and cash equivalents (78,934 ) 132,622
Cash and cash equivalents at beginning of
year

2

1,063,711

931,089

Cash and cash equivalents at end of year 2 984,777 1,063,711

Hereford Galvanizers Limited (Registered number: 00817600)

Notes to the Consolidated Cash Flow Statement
for the year ended 31 March 2023


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Profit before taxation 1,296,645 961,206
Depreciation charges 248,546 262,071
Profit on disposal of fixed assets (4,859 ) (4,110 )
Government grants - (8,566 )
Finance costs 108,712 105,607
Finance income (39 ) -
1,649,005 1,316,208
Increase in stocks (268,289 ) (156,174 )
Decrease/(increase) in trade and other debtors 302,023 (604,935 )
(Decrease)/increase in trade and other creditors (661,069 ) 232,318
Cash generated from operations 1,021,670 787,417

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 March 2023
31.3.23 1.4.22
£    £   
Cash and cash equivalents 984,777 1,063,723
Bank overdrafts - (12 )
984,777 1,063,711
Year ended 31 March 2022
31.3.22 1.4.21
£    £   
Cash and cash equivalents 1,063,723 931,101
Bank overdrafts (12 ) (12 )
1,063,711 931,089


Hereford Galvanizers Limited (Registered number: 00817600)

Notes to the Consolidated Cash Flow Statement
for the year ended 31 March 2023


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.4.22 Cash flow At 31.3.23
£    £    £   
Net cash
Cash at bank and in hand 1,063,723 (78,946 ) 984,777
Bank overdrafts (12 ) 12 -
1,063,711 (78,934 ) 984,777
Debt
Finance leases (290,226 ) 37,617 (252,609 )
Debts falling due within 1 year (70,309 ) 4,612 (65,697 )
Debts falling due after 1 year (1,013,558 ) 90,388 (923,170 )
(1,374,093 ) 132,617 (1,241,476 )
Total (310,382 ) 53,683 (256,699 )

Hereford Galvanizers Limited (Registered number: 00817600)

Notes to the Consolidated Financial Statements
for the year ended 31 March 2023


1. STATUTORY INFORMATION

Hereford Galvanizers Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill
Positive purchased goodwill arising on acquisitions is capitalised, classified as an asset on the Balance Sheet and, where appropriate, amortised over its useful life of 5 years.

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.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 2% on cost
Plant and machinery - 15% on reducing balance
Fixtures and fittings - 25% on cost and 15% on reducing balance
Motor vehicles - 25% on reducing balance and 20% on reducing balance

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.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Financial instruments
Financial instruments are classified and accounted for according to the substance of the contractual arrangement. They are classified as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

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.


Hereford Galvanizers Limited (Registered number: 00817600)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 March 2023


2. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

3. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 3,726,487 3,386,730
Social security costs 365,905 306,076
Other pension costs 130,936 148,021
4,223,328 3,840,827

The average number of employees during the year was as follows:
2023 2022

Production staff 90 90
Administration staff 21 21
Directors 5 5
116 116

2023 2022
£    £   
Directors' remuneration 339,526 292,226
Directors' pension contributions to money purchase schemes 26,877 24,945

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 150,960 120,709
Pension contributions to money purchase schemes 13,399 12,555

Hereford Galvanizers Limited (Registered number: 00817600)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 March 2023


4. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Hire of plant and machinery 9,468 26,639
Other operating leases 53,812 52,670
Depreciation - owned assets 248,547 262,070
Profit on disposal of fixed assets (4,859 ) (4,110 )
Auditors' remuneration 5,662 3,350
Foreign exchange differences (21 ) -

5. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank loan interest 10,458 2,564
Factoring charges 6,049 7,004
Late payment interest - 2
Hire purchase 11,985 15,817
Preference share dividend 80,220 80,220
108,712 105,607

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 247,243 228,177
Under/(over) provision (927 ) -
Total current tax 246,316 228,177

Deferred tax:
Deferred tax 9,019 42,633
Prior year deferred tax 969 -
Total deferred tax 9,988 42,633

Tax on profit 256,304 270,810

Hereford Galvanizers Limited (Registered number: 00817600)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 March 2023


7. INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME

As permitted by Section 408 of the Companies Act 2006, the Profit and Loss Account of the parent company is not presented as part of these financial statements.


8. DIVIDENDS
2023 2022
£    £   
Ordinary shares shares of £1 each
Interim 410,000 196,000

9. INTANGIBLE FIXED ASSETS

Group
Goodwill
£   
Cost
At 1 April 2022
and 31 March 2023 25,000
Amortisation
At 1 April 2022
and 31 March 2023 25,000
Net book value
At 31 March 2023 -
At 31 March 2022 -

Hereford Galvanizers Limited (Registered number: 00817600)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 March 2023


10. TANGIBLE FIXED ASSETS

Group
Fixtures
Freehold Plant and and Motor
property machinery fittings vehicles Totals
£    £    £    £    £   
Cost
At 1 April 2022 1,324,559 3,033,365 229,237 719,884 5,307,045
Additions - 177,467 7,768 55,975 241,210
Disposals - (40,804 ) (2,336 ) (43,483 ) (86,623 )
At 31 March 2023 1,324,559 3,170,028 234,669 732,376 5,461,632
Depreciation
At 1 April 2022 577,728 2,063,143 187,934 511,171 3,339,976
Charge for year 26,492 155,178 16,051 50,826 248,547
Eliminated on disposal - (31,200 ) (2,294 ) (38,803 ) (72,297 )
At 31 March 2023 604,220 2,187,121 201,691 523,194 3,516,226
Net book value
At 31 March 2023 720,339 982,907 32,978 209,182 1,945,406
At 31 March 2022 746,831 970,222 41,303 208,713 1,967,069

Company
Fixtures
Freehold Plant and and Motor
property machinery fittings vehicles Totals
£    £    £    £    £   
Cost
At 1 April 2022 1,324,559 2,445,590 218,742 719,883 4,708,774
Additions - 148,425 6,934 55,975 211,334
Disposals - (40,804 ) (2,336 ) (43,483 ) (86,623 )
At 31 March 2023 1,324,559 2,553,211 223,340 732,375 4,833,485
Depreciation
At 1 April 2022 577,728 1,668,750 180,901 511,171 2,938,550
Charge for year 26,492 124,293 15,438 50,826 217,049
Eliminated on disposal - (31,200 ) (2,294 ) (38,803 ) (72,297 )
At 31 March 2023 604,220 1,761,843 194,045 523,194 3,083,302
Net book value
At 31 March 2023 720,339 791,368 29,295 209,181 1,750,183
At 31 March 2022 746,831 776,840 37,841 208,712 1,770,224

Hereford Galvanizers Limited (Registered number: 00817600)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 March 2023


11. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
Cost
At 1 April 2022
and 31 March 2023 20,001
Net book value
At 31 March 2023 20,001
At 31 March 2022 20,001

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Shropshire Galvanizers Limited
Registered office:
Nature of business: Dormant
%
Class of shares: holding
Ordinary 100.00
2023 2022
£    £   
Aggregate capital and reserves 1 (399,999 )

Zinco International Limited
Registered office:
Nature of business: Technical services
%
Class of shares: holding
Ordinary 100.00
2023 2022
£    £   
Aggregate capital and reserves 272,516 213,179
Profit/(loss) for the year 59,337 (5,907 )


Hereford Galvanizers Limited (Registered number: 00817600)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 March 2023


12. STOCKS

Group Company
2023 2022 2023 2022
£    £    £    £   
Stocks 1,200,133 912,136 1,150,622 865,145
Work-in-progress 176,560 196,268 176,560 196,268
1,376,693 1,108,404 1,327,182 1,061,413

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Trade debtors 2,099,056 2,022,688 1,919,335 1,885,580
Amounts owed by group undertakings - - 71,227 45,843
Invoice discounting deposits 1,610 435,061 1,610 435,061
Prepayments and accrued income 101,358 46,298 101,358 44,295
2,202,024 2,504,047 2,093,530 2,410,779

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Bank loans and overdrafts (see note 16) 65,697 70,321 65,697 70,321
Hire purchase contracts (see note 17) 124,423 121,469 94,813 88,456
Trade creditors 552,910 761,070 386,683 627,320
Amounts owed to group undertakings - - 43,251 1
Tax 247,203 228,177 235,208 222,310
Social security and other taxes 81,738 83,831 78,884 80,806
VAT 147,149 315,137 137,536 317,689
Other creditors 44,556 312,306 25,028 286,628
Accruals and deferred income 160,586 175,664 72,772 107,782
1,424,262 2,067,975 1,139,872 1,801,313

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Bank loans (see note 16) 145,970 211,358 145,970 211,358
Preference shares (see note 16) 777,200 802,200 777,200 802,200
Hire purchase contracts (see note 17) 128,186 168,757 128,186 139,147
1,051,356 1,182,315 1,051,356 1,152,705

Hereford Galvanizers Limited (Registered number: 00817600)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 March 2023


16. LOANS

An analysis of the maturity of loans is given below:

Group Company
2023 2022 2023 2022
£    £    £    £   
Amounts falling due within one year or on demand:
Bank overdrafts - 12 - 12
Bank loans 65,697 70,309 65,697 70,309
65,697 70,321 65,697 70,321
Amounts falling due between one and two years:
Preference shares 777,200 802,200 777,200 802,200
Amounts falling due between two and five years:
Bank loans - 2-5 years 145,970 211,358 145,970 211,358

Details of shares shown as liabilities are as follows:

Allotted, issued and fully paid
Number: Class: Nominal 2022 2021
Value: £ £
777,200 Redeemable preference shares £1 777,200 802,200

The redeemable preference shares carry the right to a fixed cumulative preferential dividend at the rate of 10% per annum, and are redeemable at the option of the company.

17. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 124,423 121,469
Between one and five years 128,186 168,757
252,609 290,226

Hereford Galvanizers Limited (Registered number: 00817600)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 March 2023


17. LEASING AGREEMENTS - continued

Company
Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 94,813 88,456
Between one and five years 128,186 139,147
222,999 227,603

Company
Non-cancellable operating leases
2023 2022
£    £   
Within one year 29,568 126,956
Between one and five years 182,420 121,883
In more than five years 15,500 49,083
227,488 297,922

18. SECURED DEBTS

The following secured debts are included within creditors:

Company
2023 2022
£    £   
Bank overdraft - 12
Bank loans 211,667 281,667
211,667 281,679

The company's overdraft facility is repayable on demand but subject to periodic review. The overdraft is secured by an unlimited debenture incorporating a first legal charge over the land and buildings from where the company operates in Hereford and also Plots 12 and 13 Mile End Business Park, Oswestry and Land and buildings at Westfield Trading Estate, Grandstand Road, Hereford along with the Land & Gantry adjoining Grandstand Road land.

19. PROVISIONS FOR LIABILITIES

Group Company
2023 2022 2023 2022
£    £    £    £   
Deferred tax 291,848 281,860 246,260 236,574

Hereford Galvanizers Limited (Registered number: 00817600)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 March 2023


19. PROVISIONS FOR LIABILITIES - continued

Group
Deferred
tax
£   
Balance at 1 April 2022 281,860
Provided during year 9,019
Tax rate adjustment 969
Balance at 31 March 2023 291,848

Company
Deferred
tax
£   
Balance at 1 April 2022 236,574
Accelerated capital allowances 8,717
Amendment to prior year 969
Balance at 31 March 2023 246,260

Following the enacted increase in Corporation Tax rate to 25% from 1 April 2023, the company has provided additional deferred tax on accelerated capital allowances as it is expected that any reversal of this provision will be at a time when the increased rates will apply.

20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
17,840 Ordinary shares £1 17,840 17,840

21. RESERVES

Group
Retained
earnings
£   

At 1 April 2022 3,093,253
Profit for the year 1,040,341
Dividends (410,000 )
At 31 March 2023 3,723,594

Hereford Galvanizers Limited (Registered number: 00817600)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 March 2023


21. RESERVES - continued

Company
Retained
earnings
£   

At 1 April 2022 2,900,073
Profit for the year 981,005
Dividends (410,000 )
At 31 March 2023 3,471,078