REGISTERED NUMBER: 05938604 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
For The Year Ended 31 March 2023 |
for |
Hardsoft Limited |
REGISTERED NUMBER: 05938604 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
For The Year Ended 31 March 2023 |
for |
Hardsoft Limited |
Hardsoft Limited (Registered number: 05938604) |
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 | 5 |
Report of the Independent Auditors | 7 |
Consolidated Statement of Comprehensive Income | 10 |
Consolidated Statement of Financial Position | 11 |
Company Statement of Financial Position | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Statement of Cash Flows | 15 |
Notes to the Consolidated Statement of Cash Flows | 16 |
Notes to the Consolidated Financial Statements | 17 |
Hardsoft Limited |
Company Information |
For The Year Ended 31 March 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Registered Auditor |
10-12 Mulberry Green |
Old Harlow |
Essex |
CM17 0ET |
Hardsoft Limited (Registered number: 05938604) |
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. |
Hardsoft Limited is pleased to present the group strategic report for the financial year ending March 2023. This report aims to provide stakeholders, and other interested parties with an overview of the company's performance, key achievements, challenges faced, and future plans. There have not been any significant changes in the group's principle activities. |
REVIEW OF BUSINESS |
Hardsoft Ltd is a leading technology solutions provider specializing in supply of IT Hardware and IT consultancy services. We cater to a diverse range of business to business clients, offering innovative and customized solutions to meet their specific needs for hardware, software and telecom solutions. We continue to hold Trust Pilot 5 Star reviews in this year and with over 40 years experience we are positioned as a trusted partner to our clients. |
Hardsoft Ltd continue to have partnerships with several technology partners such as Apple, Microsoft, Lenovo and Dell. We are also accredited with other industry leading software and hardware suppliers. |
Financial Performance: |
During the financial year 2022/23, the group achieved strong financial performance and position, demonstrating steady growth and profitability. Our total revenue remained consistent compared to the previous year, reaching over £ 11M in turnover. |
This growth can be attributed to our strategic plan in expanding our service offerings and acquiring new clients. Our profitability remained robust, with a gross margin of 49.96% and a net profit of 7.94%. |
Key Achievements: |
Hardsoft Ltd group operate in a competitive market however there are always new opportunities for onboarding new clients and also offerings to existing clients: |
Software Solutions - we have successful expanded our software services and have dedicated a technical team to Solutions. This allows us to win new clients with a breadth of Solutions to help them manage their IT suite. For existing clients it allows us to add value, offer a One Stop solution and to keep the client within the Hardsoft Eco System |
Expansion of Leasing Services - Hardsoft Ltd successfully improved the flow and speed of its leasing services, mainly using Hardsoft Leasing ltd. Ensuring the client had faster decisions, less wait time and a smoother experience. This expansion enabled us to capitalize on new opportunities and cater to a wider customer base. |
Client Acquisition and Retention: We acquired several key clients across various industries, strengthening our market presence and increasing our revenue streams. Furthermore, our commitment to exceptional customer service led to high client satisfaction rates and a significant increase in client retention. |
Talent Development: Hardsoft Ltd recognizes the importance of investing in our employees. We focused on talent development initiatives, including training programs, workshops, and mentorship opportunities. As a result, our team's expertise and capabilities have grown, allowing us to deliver superior solutions to our clients. |
PRINCIPAL RISKS AND UNCERTAINTIES |
While Hardsoft Ltd group experienced overall success during the financial year ending March 2023, we also faced certain challenges that deserve attention: |
- Competitive Landscape: The technology industry is highly competitive, with new entrants and rapid advancements. We have some unique propositions and remain focused on customer care and introducing new services, benefits and products constantly to remain ahead. |
- Economic Uncertainty: The global economic landscape experienced uncertainty and fluctuations, impacting customer spending patterns and investment decisions. We proactively addressed this challenge by diversifying our client base across industries and geographies to mitigate potential risks. |
- Flexible Working- hybrid work patterns and changes to the way we work offer both challenges and trends. By pivoting some of our benefits we have seen opportunities for increased sales in mobile and cloud based services. |
- Pressures on budgets means CFO/CEO's are looking for good value, flexibility and experts to supply and manage their IT solutions, presenting more opportunities for Hardsoft ltd. |
- Apple and Microsoft continue to offer successful products in the UK B2B market. |
Hardsoft Limited (Registered number: 05938604) |
Group Strategic Report |
For The Year Ended 31 March 2023 |
SECTION 172(1) STATEMENT |
This statement, which forms part of the Strategic Report, is intended to show how the Company's Directors have approached and met their responsibilities under section 172 Companies Act 2006 during the year. |
As required by s172 of the UK Companies Act 2006, a Director of a Company must act in a way s/he considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to: |
- the likely consequences of any decision in the long term; |
- the interests of the group's's employees; |
- the need to foster the group's business relationships with suppliers, customers and others; |
- the impact of the group's operations on the community and the environment; |
- the desirability of the group maintaining a reputation for high standards of business conduct; and |
- the need to act fairly as between members of the group. |
As part of their induction, Directors are briefed on their duties and they can access professional advice on these, either from internal sources or, if they judge it necessary, from an independent adviser. It is important to recognise that in a large organisation such as ours, the Directors fulfil their duties partly through a governance framework that delegates day-to-day decision-making to the employees of the Company. |
The Directors recognise that such delegation needs to be much more than simple financial authorities and, in this section of the report, we have summarised our governance structure, which covers: the values and behaviours expected of our employees; the standards they must adhere to; how we engage with stakeholders; and how the Directors look to ensure that we have a robust system of control and assurance processes. |
The following paragraphs summarise how the Directors' fulfil their duties: |
Engagement with suppliers, customers and others |
The group polices on engagement with stakeholders, including: customers; business partners; society and employees are regularly reviewed and updated. |
Engaging with our employees |
The group places considerable value on the involvement of its employees and has continued to keep them informed on matters affecting them as employees and on the various factors affecting the performance of the group. Employee representatives are consulted regularly on a wide range of matters affecting their current and future interests. |
FUTURE DEVELOPMENTS |
Looking ahead, Hardsoft Ltd group remains committed to delivering excellence and sustaining growth. Our future plans include: |
- Market Expansion: We will explore new markets and geographies to diversify our revenue streams and tap into emerging opportunities. This expansion will be supported by strategic partnerships, market research, and localized business strategies. |
- Research and Development: We will continue to invest in research and development to stay at the forefront of technological advancements. This will enable us to develop innovative solutions and maintain a competitive edge in the rapidly evolving industry. |
- Customer-Centric Approach: Hardsoft Ltd will prioritize a customer-centric approach, ensuring that our solutions align with our clients' evolving needs. We will enhance our customer engagement strategies, strengthen relationships, and provide personalized support to foster long-term partnerships. |
Hardsoft Limited (Registered number: 05938604) |
Group Strategic Report |
For The Year Ended 31 March 2023 |
SUMMARY |
Hardsoft Ltd group has achieved significant milestones and maintained its position as a leading technology solutions provider. Our financial performance, key achievements, and future plans demonstrate our commitment to growth, innovation, and customer satisfaction. We would like to express our gratitude to our dedicated employees, valued clients, and supportive stakeholders who have contributed to our success. |
ON BEHALF OF THE BOARD: |
Hardsoft Limited (Registered number: 05938604) |
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. |
DIVIDENDS |
An interim dividend of £6,391.20 per share was paid on 31 March 2023. The directors recommend that no final dividend be paid. |
The total distribution of dividends for the year ended 31 March 2023 will be £ 639,120 . |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report. |
POLITICAL DONATIONS AND EXPENDITURE |
There were no political donations in the current financial year. Donations totalling £21,465 (2022: £22,875) have been made to local charities. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he 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. |
Hardsoft Limited (Registered number: 05938604) |
Report of the Directors |
For The Year Ended 31 March 2023 |
AUDITORS |
The auditors, Giess Wallis Crisp LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Hardsoft Limited |
Opinion |
We have audited the financial statements of Hardsoft 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 Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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 |
Hardsoft 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 five, 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: |
Based on our understanding of the the company and the industry in which they operate, we identified the significant laws and regulations in relation to this company as being: financial reporting legislation (including Companies Act 2006), taxation legislation (including corporation tax act 2010) and the Financial Conduct Authority (FCA), we considered the extent to which non-compliance might have a material effect on the financial statements. These laws and regulations could have a direct impact on the financial statements. As part of the planning process we evaluated the management's incentives and opportunities for fraudulent manipulation of the financial statements and concluded that the principal risk is related to the possible override of controls by management. The results of the above assessment were communicated to the engagement team during the engagement team briefing prior to the commencement of the audit field work. |
Audit procedures performed in response to the potential risks relating to irregularities fraud and non-compliance with laws and regulations comprised of: |
- Enquiries of management and those charged with governance. |
- Evaluation and testing of the effectiveness of internal controls via a combination of walkthrough testing and detailed controls testing. |
- Testing the appropriateness of entries in the nominal ledger, including journal entries. |
- Review and testing of transactions either side of the end of the reporting period. |
- Analytical review of the financial statements at both planning and completion stage to identify any anomalies or unexpected movements in account balances which may be indicative of fraud. |
- Inspection and examination of legal invoices and correspondence. |
The results of the above audit procedures were that no instances of non-compliance with laws and regulations were identified and no instances of material fraud were identified. |
Report of the Independent Auditors to the Members of |
Hardsoft Limited |
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, 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 or intentional misrepresentations, or through collusion. There is therefore an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISA's (UK). |
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. |
Other matters which we are required to address |
As required by ISA 710, we highlight that the comparative year figures are unaudited, although, sufficient and appropriate evidence has been obtained to ensure that the opening balances do not contain misstatements that materially affect the current period's financial statements. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Registered Auditor |
10-12 Mulberry Green |
Old Harlow |
Essex |
CM17 0ET |
Hardsoft Limited (Registered number: 05938604) |
Consolidated Statement of Comprehensive Income |
For The Year Ended 31 March 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 | 11,028,126 | 11,430,881 |
Cost of sales | 5,518,897 | 6,885,569 |
GROSS PROFIT | 5,509,229 | 4,545,312 |
Administrative expenses | 4,191,354 | 3,231,943 |
1,317,875 | 1,313,369 |
Other operating income | 192,854 | 44,254 |
OPERATING PROFIT | 5 | 1,510,729 | 1,357,623 |
Interest receivable and similar income | 8,777 | 7,045 |
1,519,506 | 1,364,668 |
Interest payable and similar expenses | 6 | 312,672 | 117,673 |
PROFIT BEFORE TAXATION | 1,206,834 | 1,246,995 |
Tax on profit | 7 | 331,311 | 159,295 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
875,523 |
1,087,700 |
Profit attributable to: |
Owners of the parent | 875,523 | 1,087,700 |
Total comprehensive income attributable to: |
Owners of the parent | - | - |
Hardsoft Limited (Registered number: 05938604) |
Consolidated Statement of Financial Position |
31 March 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | 238,257 | 253,505 |
Tangible assets | 11 | 500,112 | 38,353 |
Investments | 12 | - | - |
738,369 | 291,858 |
CURRENT ASSETS |
Stocks | 13 | 805,423 | 728,920 |
Debtors: amounts falling due within one year | 14 | 3,922,297 | 2,377,807 |
Debtors: amounts falling due after more than one year |
14 |
4,286,712 |
3,079,420 |
Cash at bank and in hand | 475,231 | 988,333 |
9,489,663 | 7,174,480 |
CREDITORS |
Amounts falling due within one year | 15 | 5,005,977 | 3,607,191 |
NET CURRENT ASSETS | 4,483,686 | 3,567,289 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
5,222,055 |
3,859,147 |
CREDITORS |
Amounts falling due after more than one year |
16 |
(3,072,184 |
) |
(1,972,542 |
) |
PROVISIONS FOR LIABILITIES | 20 | (270,716 | ) | (243,853 | ) |
NET ASSETS | 1,879,155 | 1,642,752 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 100 | 100 |
Other reserves | 22 | 3,200 | 3,200 |
Retained earnings | 22 | 1,875,855 | 1,639,452 |
SHAREHOLDERS' FUNDS | 1,879,155 | 1,642,752 |
The financial statements were approved by the Board of Directors and authorised for issue on 5 October 2023 and were signed on its behalf by: |
Mr P P Morgan - Director |
Hardsoft Limited (Registered number: 05938604) |
Company Statement of Financial Position |
31 March 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors: amounts falling due within one year | 14 |
Debtors: amounts falling due after more than one year |
14 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
16 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 20 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Other reserves | 22 |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 772,609 | 967,148 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Hardsoft Limited (Registered number: 05938604) |
Consolidated Statement of Changes in Equity |
For The Year Ended 31 March 2023 |
Called up |
share | Retained | Other | Total |
capital | earnings | reserves | equity |
£ | £ | £ | £ |
Balance at 1 April 2021 | 100 | 1,192,642 | 3,200 | 1,195,942 |
Changes in equity |
Dividends | - | (640,890 | ) | - | (640,890 | ) |
Total comprehensive income | - | 1,087,700 | - | 1,087,700 |
Balance at 31 March 2022 | 100 | 1,639,452 | 3,200 | 1,642,752 |
Changes in equity |
Dividends | - | (639,120 | ) | - | (639,120 | ) |
Total comprehensive income | - | 875,523 | - | 875,523 |
Balance at 31 March 2023 | 100 | 1,875,855 | 3,200 | 1,879,155 |
Hardsoft Limited (Registered number: 05938604) |
Company Statement of Changes in Equity |
For The Year Ended 31 March 2023 |
Called up |
share | Retained | Other | Total |
capital | earnings | reserves | equity |
£ | £ | £ | £ |
Balance at 1 April 2021 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2023 |
Hardsoft Limited (Registered number: 05938604) |
Consolidated Statement of Cash Flows |
For The Year Ended 31 March 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (1,175,760 | ) | (199,954 | ) |
Interest paid | (311,863 | ) | (116,782 | ) |
Interest element of hire purchase payments paid |
(809 |
) |
(891 |
) |
Tax paid | (225,347 | ) | (95,544 | ) |
Net cash from operating activities | (1,713,779 | ) | (413,171 | ) |
Cash flows from investing activities |
Purchase of intangible fixed assets | (159,925 | ) | (131,480 | ) |
Purchase of tangible fixed assets | (491,759 | ) | (14,330 | ) |
Sale of tangible fixed assets | - | 6,280 |
Purchase of lease equipment | (2,893,080 | ) | (2,002,573 | ) |
Capital receipts of lease equipment | 2,736,075 | 1,241,831 |
Interest received | 8,777 | 7,045 |
Net cash from investing activities | (799,912 | ) | (893,227 | ) |
Cash flows from financing activities |
New loans in year | 4,410,944 | 2,324,603 |
Loan repayments in year | (1,782,912 | ) | - |
Capital repayments in year | (6,745 | ) | (7,848 | ) |
Amount introduced by directors | 727,327 | 527,663 |
Amount withdrawn by directors | (708,905 | ) | (478,858 | ) |
Equity dividends paid | (639,120 | ) | (640,890 | ) |
Net cash from financing activities | 2,000,589 | 1,724,670 |
(Decrease)/increase in cash and cash equivalents | (513,102 | ) | 418,272 |
Cash and cash equivalents at beginning of year |
2 |
988,333 |
570,061 |
Cash and cash equivalents at end of year | 2 | 475,231 | 988,333 |
Hardsoft Limited (Registered number: 05938604) |
Notes to the Consolidated Statement of Cash Flows |
For The Year Ended 31 March 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 1,206,834 | 1,246,995 |
Depreciation charges | 205,173 | 150,599 |
Profit on disposal of fixed assets | (2,806,335 | ) | (1,927,809 | ) |
Finance costs | 312,672 | 117,673 |
Finance income | (8,777 | ) | (7,045 | ) |
(1,090,433 | ) | (419,587 | ) |
Increase in stocks | (76,503 | ) | (389,603 | ) |
Decrease in trade and other debtors | 229,172 | 327,339 |
(Decrease)/increase in trade and other creditors | (237,996 | ) | 281,897 |
Cash generated from operations | (1,175,760 | ) | (199,954 | ) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 March 2023 |
31/3/23 | 1/4/22 |
£ | £ |
Cash and cash equivalents | 475,231 | 988,333 |
Year ended 31 March 2022 |
31/3/22 | 1/4/21 |
£ | £ |
Cash and cash equivalents | 988,333 | 570,061 |
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 | 988,333 | (513,102 | ) | 475,231 |
988,333 | (513,102 | ) | 475,231 |
Debt |
Finance leases | (6,745 | ) | 6,745 | - |
Debts falling due within 1 year | (1,351,753 | ) | (1,528,300 | ) | (2,880,053 | ) |
Debts falling due after 1 year | (1,972,542 | ) | (1,099,642 | ) | (3,072,184 | ) |
(3,331,040 | ) | (2,621,197 | ) | (5,952,237 | ) |
Total | (2,342,707 | ) | (3,134,299 | ) | (5,477,006 | ) |
Hardsoft Limited (Registered number: 05938604) |
Notes to the Consolidated Financial Statements |
For The Year Ended 31 March 2023 |
1. | STATUTORY INFORMATION |
Hardsoft Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The Group financial statements incorporate the financial statements of Hardsoft Limited (the 'Company') and entities controlled by the Company (its subsidiaries) made up to 31 March each year. |
This is the first financial period in which group financial statements have been prepared. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Significant judgements and estimates |
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
There are no estimates and assumptions which have had a significant risk of causing a material adjustment to the carrying amount of assets and liabilities |
Hardsoft Limited (Registered number: 05938604) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31 March 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Turnover represents the amounts receivable from the sale of computer hardware and the supply of related services, net of Value Added Tax. All of the company's turnover originated and was delivered within the UK and Ireland (EU). |
Sale of Goods |
Sale of goods are recognised when the goods are delivered, which is the point at which the risks and rewards of ownership pass to the buyer. |
Services |
The entity recognises revenue (the rendering of services) by reference to the stage of completion of the transaction at the end of the reporting period. The outcome of a transaction can be estimated reliably when all of the following conditions are satisfied: |
- The amount of revenue can be measured reliably; |
- It is probable that the economic benefits associated with the transaction will flow to the entity; |
-The stage of completion of the transaction at the end of the reporting period can be measured reliably; and |
-The costs incurred for the transaction and the costs to complete the transaction can be measured reliably. |
Income arising from leasing when the Company is a lessor |
Assets under finance leases are initially recognised in the balance sheet as finance lease receivables at the net investment value, i.e. the present value of the residual receivables from all lease agreements existing at the end of a financial year. The lease payments are divided into interest payments and principal repayments in such a way as to achieve a constant periodic rate of interest on the receivable. Initial direct costs incurred in connection with concluding the contract are included in the calculation of the net investment in the asset. |
Income from protecting finance lease equipment |
Income from protecting finance lease equipment is reported under turnover.For the provision of this service, the lessee is charged a fee on a monthly basis for the month in which it relates, in arrears. |
Goodwill |
Goodwill, being the amount paid in connection with incorporation in 2006, has been fully amortised over its estimated useful life of twenty years (ten years from the transitional year into FRS 102 framework). |
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. |
Recognition and impairment of intangible fixed assets |
Intangible fixed assets are initially measured at cost and subsequently measured at cost net of accumulated amortisation charges and impairment losses (if any). |
The entity reviews the carrying value's of its intangible fixed assets at each reporting date, to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the estimated recoverable value of the asset is used to determine the extent of the impairment loss (if any). |
Hardsoft Limited (Registered number: 05938604) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31 March 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Freehold property | - |
Fixtures and fittings | - |
Motor vehicles | - |
Recognition and impairment of tangible fixed assets |
Tangible fixed assets are initially measured at cost and subsequently measured at cost net of depreciation and any impairment losses. |
The entity reviews the carrying value's of its tangible fixed assets at each reporting date, to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the estimated recoverable value of the asset is used to determine the extent of the impairment loss (if any). |
Government grants |
Grants relating to revenue are recognised as other operating income income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate. |
Stocks |
Stocks are valued at average weighted cost, derived from, the lower of cost and estimated selling price less costs to complete and sell, after making due allowance for obsolete and slow moving items. |
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 statement of financial position 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 trade and other receivables 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. |
Other financial assets |
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment. |
Impairment of financial assets |
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date. |
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss. |
Hardsoft Limited (Registered number: 05938604) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31 March 2023 |
2. | ACCOUNTING POLICIES - continued |
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss. |
Derecognition of financial assets |
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. |
Classification of financial liabilities |
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
Basic financial liabilities |
Basic financial liabilities, including trade and other payables, 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 receipts 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. |
Other financial liabilities |
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss In finance costs or finance income as appropriate unless hedge accounting is applied and the hedge is a cash flow hedge. |
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy. |
Derecognition of financial liabilities |
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled. |
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 statement of financial position date. |
Hardsoft Limited (Registered number: 05938604) |
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 statement of financial position 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 |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates 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. |
Finance leases |
The Company as a lessor |
Leases as defined as agreements in which the lessor transfers the right to the lessee to use an identifiable asset for an agreed time period in exchange for payment consideration for an agreed time period. |
Whether an agreement can be considered as a lease or containing a lease, depends on the economic substance of the agreement at the beginning of the agreement. For the lessor, leases are to be classified as either operating leases or finance leases. |
FINANCE LEASES |
Under a finance lease, all of the significant risks and rewards of legal ownership are transferred from the lessor to the lessee. |
Finance leases are initially recognised in the statement of financial position as at the date they are available for use, as lease receivables at amount equal to the net investment, which represents the sum of the outstanding lease payments and non-guaranteed residual value's of the underlying assets, discounted at the rate of interest implicit in the lease. Lease payments are divided into interest payments and principal payments in such a manner that they reflect a periodic rate of return for the receivable. Initial direct costs incurred in connection with the conclusion of the contract are taken into consideration when calculating the net investment value. |
Hardsoft Limited (Registered number: 05938604) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31 March 2023 |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business for the year ended 31 March 2023 is given below: |
£ |
Sale of goods | 7,809,996 |
Rendering of services | 2,144,473 |
Finance income receivable | 676,007 |
Asset protection services | 333,644 |
Other asset related fees | 64,006 |
11,028,126 |
This analysis is not considered to be applicable to the year ended 31 March 2022. |
An analysis of turnover by geographical market for the year ended 31 March 2023 is given below: |
£ |
United Kingdom | 10,898,707 |
Europe | 129,419 |
11,028,126 |
This analysis is not considered to be applicable to the year ended 31 March 2022. |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 2,044,276 | 1,559,680 |
Social security costs | 215,426 | 158,724 |
Other pension costs | 72,379 | 65,328 |
2,332,081 | 1,783,732 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Management | 3 | 3 |
Technical & Development | 5 | 4 |
Accounts & Administrative | 8 | 7 |
Sales & Despatch | 13 | 11 |
Other | 26 | 19 |
The average number of employees by undertakings that were proportionately consolidated during the year was NIL (2022 - NIL). |
2023 | 2022 |
£ | £ |
Directors' remuneration | 535,015 | 446,160 |
Directors' pension contributions to money purchase schemes | 43,930 | 23,887 |
Hardsoft Limited (Registered number: 05938604) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31 March 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 144,593 | 121,269 |
Pension contributions to money purchase schemes | 1,320 | 1,321 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of equipment | 24 | - |
Other operating leases | 12,590 | 25,333 |
Depreciation - owned assets | 22,980 | 10,072 |
Depreciation - assets on hire purchase contracts | 7,020 | 7,021 |
Profit on disposal of fixed assets | (2,806,335 | ) | (1,927,809 | ) |
Goodwill amortisation | 51,314 | 51,313 |
Development costs amortisation | 105,482 | 76,034 |
Computer software amortisation | 18,377 | 6,158 |
Auditors' remuneration | 25,000 | - |
Foreign exchange differences | 4,056 | 1,927 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest | - | 6,375 |
Bank loan interest | 17,605 | 7,609 |
Interest on late tax | - | 155 |
Loan | 286,051 | 102,643 |
Directors loan interest | 8,207 | - |
Hire purchase | 809 | 891 |
312,672 | 117,673 |
7. | 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 | 304,448 | 146,419 |
Deferred tax | 26,863 | 12,876 |
Tax on profit | 331,311 | 159,295 |
Hardsoft Limited (Registered number: 05938604) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31 March 2023 |
7. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 1,206,834 | 1,246,995 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
229,298 |
236,929 |
Effects of: |
Expenses not deductible for tax purposes | 50,261 | 12,177 |
Income not taxable for tax purposes | (356 | ) | - |
Utilisation of tax losses | - | (51,405 | ) |
Adjustments to tax charge in respect of previous periods | (35,771 | ) | (38,406 | ) |
Effect of differing tax rate in calculating current tax and deferred tax | 87,879 | - |
Total tax charge | 331,311 | 159,295 |
8. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of £0.10 each |
Interim | 639,120 | 640,890 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Development | Computer |
Goodwill | costs | software | Totals |
£ | £ | £ | £ |
COST |
At 1 April 2022 | 720,000 | 238,275 | 24,633 | 982,908 |
Additions | - | 94,358 | 65,567 | 159,925 |
At 31 March 2023 | 720,000 | 332,633 | 90,200 | 1,142,833 |
AMORTISATION |
At 1 April 2022 | 578,888 | 144,357 | 6,158 | 729,403 |
Amortisation for year | 51,314 | 105,482 | 18,377 | 175,173 |
At 31 March 2023 | 630,202 | 249,839 | 24,535 | 904,576 |
NET BOOK VALUE |
At 31 March 2023 | 89,798 | 82,794 | 65,665 | 238,257 |
At 31 March 2022 | 141,112 | 93,918 | 18,475 | 253,505 |
Hardsoft Limited (Registered number: 05938604) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31 March 2023 |
10. | INTANGIBLE FIXED ASSETS - continued |
Company |
Development |
Goodwill | costs | Totals |
£ | £ | £ |
COST |
At 1 April 2022 |
Additions |
At 31 March 2023 |
AMORTISATION |
At 1 April 2022 |
Amortisation for year |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
11. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | and | Motor |
property | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 April 2022 | - | 71,961 | 35,103 | 107,064 |
Additions | 476,112 | 15,647 | - | 491,759 |
At 31 March 2023 | 476,112 | 87,608 | 35,103 | 598,823 |
DEPRECIATION |
At 1 April 2022 | - | 47,649 | 21,062 | 68,711 |
Charge for year | 15,870 | 7,110 | 7,020 | 30,000 |
At 31 March 2023 | 15,870 | 54,759 | 28,082 | 98,711 |
NET BOOK VALUE |
At 31 March 2023 | 460,242 | 32,849 | 7,021 | 500,112 |
At 31 March 2022 | - | 24,312 | 14,041 | 38,353 |
Hardsoft Limited (Registered number: 05938604) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31 March 2023 |
11. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1 April 2022 | 35,103 |
Transfer to ownership | (35,103 | ) |
At 31 March 2023 | - |
DEPRECIATION |
At 1 April 2022 | 21,062 |
Charge for year | 7,020 |
Transfer to ownership | (28,082 | ) |
At 31 March 2023 | - |
NET BOOK VALUE |
At 31 March 2023 | - |
At 31 March 2022 | 14,041 |
Company |
Fixtures |
Freehold | and | Motor |
property | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 April 2022 |
Additions |
At 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
Hardsoft Limited (Registered number: 05938604) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31 March 2023 |
11. | TANGIBLE FIXED ASSETS - continued |
Company |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1 April 2022 |
Transfer to ownership | (35,103 | ) |
At 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
Transfer to ownership | (28,082 | ) |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 April 2022 |
and 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Subsidiary |
Registered office: 10-12 Mulberry Green, Old Harlow, Essex. CM17 0ET |
Nature of business: |
% |
Class of shares: | holding |
Hardsoft Limited (Registered number: 05938604) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31 March 2023 |
13. | STOCKS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Stocks | 805,423 | 728,920 |
14. | DEBTORS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 578,922 | 799,198 |
Amounts owed by group undertakings | - | - |
Amounts receivable in respect of finance leases |
3,230,016 |
1,525,492 |
Other debtors | 14,147 | 28,000 |
Amounts due from group company | - | - | - | 64,450 |
Directors' current accounts | 1,500 | - | 1,500 | - |
Directors' loan accounts | - | - | 5,937 | - |
Corporation tax recoverable | - | 2,037 |
Prepayments and accrued income | 97,712 | 23,080 |
3,922,297 | 2,377,807 |
Amounts falling due after more than one | year: |
Amounts owed by group undertakings | - | - |
Amounts receivable in respect of finance leases |
3,983,715 |
2,815,079 |
Other debtors over 1 year | 11,758 | - |
Associated debtors | 272,998 | 264,341 | 272,998 | 262,998 |
Directors' loan accounts | 16,204 | - | 16,204 | - |
Taxation over 1 year | 2,037 | - |
4,286,712 | 3,079,420 |
Aggregate amounts | 8,209,009 | 5,457,227 |
Hardsoft Limited (Registered number: 05938604) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31 March 2023 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 17) | 2,880,053 | 1,351,753 |
Hire purchase contracts (see note 18) | - | 6,745 |
Trade creditors | 1,366,336 | 1,688,746 |
Tax | 260,621 | 181,520 |
Social security and other taxes | 54,661 | 50,473 |
VAT | 16,514 | 15,635 | 117,662 | 157,316 |
Other creditors | 226,868 | 196,770 |
Directors' current accounts | 12,217 | 47,771 | 12,218 | 17,771 |
Directors' loan accounts | 71,680 | - | - | - |
Accruals and deferred income | - | 45,048 |
Accrued expenses | 117,027 | 22,730 |
5,005,977 | 3,607,191 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans (see note 17) | 3,072,184 | 1,972,542 |
17. | 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 loans | 2,880,053 | 1,351,753 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 2,290,875 | 1,142,231 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 781,309 | 830,311 |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | - | 6,745 |
Hardsoft Limited (Registered number: 05938604) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31 March 2023 |
18. | LEASING AGREEMENTS - continued |
Company |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year | 50,004 | 66,000 |
Between one and five years | 123,507 | 126,507 |
173,511 | 192,507 |
The operating lease commitment expense in the current financial year was £66,000 (2022: £66,000) |
Company |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
The operating lease commitment expense in the current financial year was £66,000 (2022: £66,000). |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans | 5,952,237 | 3,324,295 |
Hire purchase contracts | - | 6,745 | - | 6,745 |
5,952,237 | 3,331,040 |
The bank overdraft is secured against all property and undertakings of the company by way of fixed and floating charge, containing a negative pledge. |
Included within bank loans is a loan that is partially guaranteed by the Department for Business, Energy and Industrial Strategy as this facility was taken out under the "CBILs" provision. |
Included within bank loans are loans that are block discounting arrangements, secured by way of fixed and floating charge on specific finance lease receivables with a net present value of £7,213,731 (2022: 4,340,571). |
The block discounting arrangements are repayable by regular instalments over the period of the particular loan. |
The assets under hire purchase contracts are secured against the assets themselves. All hire purchase agreements have been settled in the current financial year. |
Hardsoft Limited (Registered number: 05938604) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31 March 2023 |
20. | PROVISIONS FOR LIABILITIES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax | 270,716 | 243,853 | 13,193 | 21,165 |
Group |
Deferred |
tax |
£ |
Balance at 1 April 2022 | 243,853 |
Charge to Statement of Comprehensive Income during year | 26,863 |
Balance at 31 March 2023 | 270,716 |
Company |
Deferred |
tax |
£ |
Balance at 1 April 2022 |
Credit to Statement of Comprehensive Income during year | ( |
) |
Balance at 31 March 2023 |
The rate used in calculating the deferred taxation charge is 25%, being the rate that was substantively enacted at the 31st March 2023. The effect of the change in rate from 2022 of 19% is an additional expense of £87,879. |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £0.10 | 100 | 100 |
22. | RESERVES |
Group |
Retained | Other |
earnings | reserves | Totals |
£ | £ | £ |
At 1 April 2022 | 1,639,452 | 3,200 | 1,642,652 |
Profit for the year | 875,523 | 875,523 |
Dividends | (639,120 | ) | (639,120 | ) |
At 31 March 2023 | 1,875,855 | 3,200 | 1,879,055 |
Hardsoft Limited (Registered number: 05938604) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31 March 2023 |
22. | RESERVES - continued |
Company |
Retained | Other |
earnings | reserves | Totals |
£ | £ | £ |
At 1 April 2022 | 1,400,352 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 March 2023 | 1,533,841 |
23. | OTHER FINANCIAL COMMITMENTS |
The parent entity is enlisted a guarantor to the debts of it's subsidiary that has financing arrangements with UK banks. |
24. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 31 March 2023 and 31 March 2022: |
2023 | 2022 |
£ | £ |
P P Morgan |
Balance outstanding at start of year | (25,994 | ) | - |
Amounts advanced | 258,287 | - |
Amounts repaid | (251,559 | ) | (25,994 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | (19,266 | ) | (25,994 | ) |
S Hill |
Balance outstanding at start of year | (27 | ) | - |
Amounts advanced | 1,527 | - |
Amounts repaid | - | (27 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 1,500 | (27 | ) |
Phillip Morgan's Director's loan account is overdrawn in the parent as a single entity (note 14). This is more than offset by the amount owed to the Director by the subsidiary and the group position is represented above. |
Both Phillip Morgan (Director and shareholder) and Andrew Morgan (Director and shareholder) have guaranteed £125,000 in respect of block discounting arrangements. |
25. | RELATED PARTY DISCLOSURES |
Sibling Properties Limited is a related party by virtue of the controlling parties of Hardsoft Limited owning a participating interest in the entity. |
Included within debtors (note 14) is a balance of £272,998 (2022: £264,340) due from Sibling Properties Limited The loan has not been advanced under normal market conditions as it has been given interest free. |
Expenditure of £42,000 (2022: £42,000) was incurred in respect of premises rental during the financial year. The expenditure transactions have been conducted within the arms length principal. |
The entity is party to a cross guarantee and debenture arrangement with Sibling Properties Limited. |
Hardsoft Limited (Registered number: 05938604) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31 March 2023 |
26. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling parties of the entity are considered to be the director/ shareholders; Mr Philip Morgan and Mr Andrew Morgan. |
27. | SHARE-BASED PAYMENT TRANSACTIONS |
Grant date 27/11/2017 |
Exercise price £1,000.00 |
Number of shares 32 |
Number of employees 2 |
The expenses recognised for share based payment made during the year is £NIL (2022: £NIL) |
The options outstanding at 31st March 2023 had a WAEP of £1,100 per share. All share options are considered to be equity settled. |