REGISTERED NUMBER: 12161147 (England and Wales) |
Group Strategic Report, Directors' Report and |
Consolidated Financial Statements for the Year Ended 31 March 2023 |
for |
HEB Group Ltd |
REGISTERED NUMBER: 12161147 (England and Wales) |
Group Strategic Report, Directors' Report and |
Consolidated Financial Statements for the Year Ended 31 March 2023 |
for |
HEB Group Ltd |
HEB Group Ltd (Registered number: 12161147) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 March 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Directors' Report | 3 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
HEB Group Ltd |
Company Information |
for the Year Ended 31 March 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
INDEPENDENT AUDITORS: |
Statutory Auditor |
68 Queen Street |
Sheffield |
South Yorkshire |
S1 1WR |
BANKERS: | Barclays Bank |
10-12 Pinstone Street |
Sheffield |
South Yorkshire |
S1 2HN |
SOLICITORS: |
No 1 Velocity |
2 Tenter Street |
Sheffield |
South Yorkshire |
S1 4BY |
HEB Group Ltd (Registered number: 12161147) |
Group Strategic Report |
for the Year Ended 31 March 2023 |
The directors present their Strategic Report for the group for the year ended 31 March 2023. |
BUSINESS REVIEW AND FUTURE DEVELOPMENTS |
The consolidated profit and loss account, and consolidated balance for the year ended 31 March 2023 are set out on pages 8 and 10. |
The following key financial performance indicators provide information to assess how the group is performing: |
2023 | 2022 |
£ | £ |
Turnover | 33,991,333 | 32,848,463 |
Operating profit | 1,301,796 | 1,882,057 |
Net cashflow from operating activities | 794,865 | 212,150 |
Net assets | 3,867,966 | 3,435,223 |
Group turnover for the year was £33,991,333, an increase of 3.5% from the previous year. The operating profit has reduced by £580,261 to £1,301,796 due to challenging economic conditions impacting margin achieved on larger projects. |
The group has a strong pipeline of work throughout the financial year to March 2024 and into 2025. |
The group has a strong balance sheet, with net assets of £3,867,966 and cash balances at the year end of £4,480,489. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors continually assess the risks facing the business and adapts to changes in market conditions. |
Despite the economic uncertainty and inflationary pressures all businesses are experiencing, the directors believe that there are no going concern issues due to the strong balance sheet and pipeline of work. |
The business looks to mitigate credit risk through assessing and ongoing monitoring of key clients and supply chain partners. The company has a diverse client base and works across a variety of business sectors |
Health and Safety risk is managed through maintaining rigorous health and safety policies, independent audits, training of staff and involvement with relevant bodies. |
ON BEHALF OF THE BOARD: |
HEB Group Ltd (Registered number: 12161147) |
Directors' Report |
for the Year Ended 31 March 2023 |
The directors present their report and the audited financial statements for the year ended 31 March 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of providing mechanical and electrical contracting and facilities management services. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 March 2023 will be £600,950. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report. |
FINANCIAL INSTRUMENTS |
The group's principal financial assets are cash and trade receivables. Credit risk is managed through assessment of the financial strength of customers prior to entering into a contract. Liquidity risk is managed through the management of payables and receivables within contractual obligations and effective credit control monitoring procedures. The group does not use any complex financial instruments. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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. |
HEB Group Ltd (Registered number: 12161147) |
Directors' Report |
for the Year Ended 31 March 2023 |
AUDITORS |
The auditors, Landin Wilcock & Co, 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 |
HEB Group Ltd |
Opinion |
We have audited the financial statements of HEB Group Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the Consolidated Income Statement, Consolidated Other 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 Directors' Report, 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. |
Report of the Independent Auditors to the Members of |
HEB Group Ltd |
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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of 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 Directors' Report. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page 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. |
Report of the Independent Auditors to the Members of |
HEB Group Ltd |
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: |
- minimal reliance was placed upon the operating effectiveness of internal controls in the design and performance of our substantive procedures; |
- discussions were held with management considering known or suspected non-compliance with laws, regulations and fraud; |
- journal entries were reviewed for any entries made outside the ordinary reporting processes with particular emphasis on those with unusual account combinations, entries crediting revenue and those without specific descriptions; |
- management assumptions in their significant accounting estimates were challenged and scrutinised. |
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. 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. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditor |
68 Queen Street |
Sheffield |
South Yorkshire |
S1 1WR |
HEB Group Ltd (Registered number: 12161147) |
Consolidated |
Income Statement |
for the Year Ended 31 March 2023 |
31/3/23 | 31/3/22 |
Notes | £ | £ |
TURNOVER | 3 | 33,991,333 | 32,848,463 |
Cost of sales | (26,902,491 | ) | (25,505,175 | ) |
GROSS PROFIT | 7,088,842 | 7,343,288 |
Administrative expenses | (5,787,145 | ) | (5,480,113 | ) |
1,301,697 | 1,863,175 |
Other operating income | 99 | 18,882 |
OPERATING PROFIT | 5 | 1,301,796 | 1,882,057 |
Interest receivable and similar income | 13,357 | 1,989 |
1,315,153 | 1,884,046 |
Interest payable and similar expenses | 7 | (27 | ) | (1,310 | ) |
PROFIT BEFORE TAXATION | 1,315,126 | 1,882,736 |
Tax on profit | 8 | (281,433 | ) | (411,761 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,033,693 | 1,470,975 |
HEB Group Ltd (Registered number: 12161147) |
Consolidated |
Other Comprehensive Income |
for the Year Ended 31 March 2023 |
31/3/23 | 31/3/22 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,033,693 | 1,470,975 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,033,693 |
1,470,975 |
Total comprehensive income attributable to: |
Owners of the parent | 1,033,693 | 1,470,975 |
HEB Group Ltd (Registered number: 12161147) |
Consolidated Balance Sheet |
31 March 2023 |
31/3/23 | 31/3/22 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 11 | 640,629 | 739,556 |
Tangible assets | 12 | 348,366 | 449,879 |
Investments | 13 | - | - |
988,995 | 1,189,435 |
CURRENT ASSETS |
Stocks | 14 | 74,467 | 79,996 |
Debtors | 15 | 6,033,620 | 3,423,930 |
Cash at bank and in hand | 4,480,489 | 4,841,057 |
10,588,576 | 8,344,983 |
CREDITORS |
Amounts falling due within one year | 16 | (7,369,020 | ) | (5,216,042 | ) |
NET CURRENT ASSETS | 3,219,556 | 3,128,941 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 4,208,551 | 4,318,376 |
CREDITORS |
Amounts falling due after more than one year |
17 |
- |
(540,000 |
) |
PROVISIONS FOR LIABILITIES | 19 | (340,585 | ) | (343,153 | ) |
NET ASSETS | 3,867,966 | 3,435,223 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 9,434 | 10,178 |
Capital redemption reserve | 21 | 2,232 | 1,488 |
Retained earnings | 21 | 3,856,300 | 3,423,557 |
SHAREHOLDERS' FUNDS | 3,867,966 | 3,435,223 |
The financial statements were approved by the Board of Directors and authorised for issue on 21 June 2023 and were signed on its behalf by: |
N C Pollard - Director |
HEB Group Ltd (Registered number: 12161147) |
Company Balance Sheet |
31 March 2023 |
31/3/23 | 31/3/22 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
Investments | 13 |
CURRENT ASSETS |
Debtors | 15 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 16 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
17 |
( |
) |
PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Capital redemption reserve | 21 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 604,739 | 1,476,087 |
The financial statements were approved by the Board of Directors and authorised for issue on |
HEB Group Ltd (Registered number: 12161147) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 March 2023 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 April 2021 | 11,666 | 4,713,532 | - | 4,725,198 |
Changes in equity |
Purchase of own shares | (1,488 | ) | (2,160,000 | ) | 1,488 | (2,160,000 | ) |
Dividends | - | (600,950 | ) | - | (600,950 | ) |
Total comprehensive income | - | 1,470,975 | - | 1,470,975 |
Balance at 31 March 2022 | 10,178 | 3,423,557 | 1,488 | 3,435,223 |
Changes in equity |
Purchase of own shares | (744 | ) | - | 744 | - |
Dividends | - | (600,950 | ) | - | (600,950 | ) |
Total comprehensive income | - | 1,033,693 | - | 1,033,693 |
Balance at 31 March 2023 | 9,434 | 3,856,300 | 2,232 | 3,867,966 |
HEB Group Ltd (Registered number: 12161147) |
Company Statement of Changes in Equity |
for the Year Ended 31 March 2023 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 April 2021 |
Changes in equity |
Purchase of own shares | (1,488 | ) | (2,160,000 | ) | 1,488 | (2,160,000 | ) |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2022 | 10,178 | 1,483,577 | 1,495,243 |
Changes in equity |
Purchase of own shares | (744 | ) | - | 744 | - |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2023 |
HEB Group Ltd (Registered number: 12161147) |
Consolidated Cash Flow Statement |
for the Year Ended 31 March 2023 |
31/3/23 | 31/3/22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,107,287 | 616,849 |
Interest paid | (27 | ) | (1,310 | ) |
Tax paid | (312,395 | ) | (403,389 | ) |
Net cash from operating activities | 794,865 | 212,150 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (34,390 | ) | (191,908 | ) |
Sale of tangible fixed assets | 6,550 | 400 |
Interest received | 13,357 | 1,989 |
Net cash from investing activities | (14,483 | ) | (189,519 | ) |
Cash flows from financing activities |
Loan repayments in year | - | (50,000 | ) |
Share buyback | (540,000 | ) | (1,080,000 | ) |
Equity dividends paid | (600,950 | ) | (600,950 | ) |
Net cash from financing activities | (1,140,950 | ) | (1,730,950 | ) |
Decrease in cash and cash equivalents | (360,568 | ) | (1,708,319 | ) |
Cash and cash equivalents at beginning of year |
2 |
4,841,057 |
6,549,376 |
Cash and cash equivalents at end of year | 2 | 4,480,489 | 4,841,057 |
HEB Group Ltd (Registered number: 12161147) |
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 |
31/3/23 | 31/3/22 |
£ | £ |
Profit before taxation | 1,315,126 | 1,882,736 |
Depreciation charges | 232,659 | 231,244 |
(Profit)/loss on disposal of fixed assets | (4,379 | ) | 1,225 |
Increase/(decrease) in provisions | 26,602 | 47,089 |
Finance costs | 27 | 1,310 |
Finance income | (13,357 | ) | (1,989 | ) |
1,556,678 | 2,161,615 |
Decrease/(increase) in stocks | 5,529 | (3,111 | ) |
Increase in trade and other debtors | (2,609,690 | ) | (309,890 | ) |
Increase/(decrease) in trade and other creditors | 2,154,770 | (1,231,765 | ) |
Cash generated from operations | 1,107,287 | 616,849 |
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 | 4,480,489 | 4,841,057 |
Year ended 31 March 2022 |
31/3/22 | 1/4/21 |
£ | £ |
Cash and cash equivalents | 4,841,057 | 6,549,376 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/4/22 | Cash flow | At 31/3/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 4,841,057 | (360,568 | ) | 4,480,489 |
4,841,057 | (360,568 | ) | 4,480,489 |
Total | 4,841,057 | (360,568 | ) | 4,480,489 |
HEB Group Ltd (Registered number: 12161147) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 March 2023 |
1. | STATUTORY INFORMATION |
HEB Group Ltd 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 consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 March 2023. |
A subsidiary undertaking is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. |
Transactions, balances and unrealised gains or losses on transactions between the company and its subsidiaries are eliminated in full on consolidation. |
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. |
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 |
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
(i) Contract accounting balances |
In the determination of revenue recognition on construction contracts, management make several judgements. Notably: the assessment of costs to be incurred to fulfill the contract, the expected total revenue inclusive of variations, and the expected final margin on contracts. Such judgements are made with all available information at the balance sheet date, including but not limited to an assessment of all operational and commercial risks and opportunities. |
HEB Group Ltd (Registered number: 12161147) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover comprises the fair value of consideration received or receivable for the provision of services in the ordinary course of the company's activities. Turnover is shown net of value added tax, rebates and discounts. |
The company recognises revenue when: the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the company's activities. |
Contract revenue recognition |
Revenue from construction contracts is recognised by reference to the stage of completion of a contract, on a contract by contract basis. |
The stage of completion on a given contract is calculated by the revenue basis (surveys of works completed). |
Where the outcome of a construction contract cannot be reliably estimated, revenue is recognised only to the extent that it covers the costs incurred on the contract to the reporting date. Where contract losses are anticipated, they are recognsied in full immediately in the profit and loss account. |
Goodwill |
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 |
Freehold property | - |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Tangible fixed assets are initially measured at cost. Subsequently, they are measured at cost less accumulated depreciation and impairment losses. |
Government grants |
Government grants relating to revenue expenditure are recognised in income on a systematic basis over the period in which the company recognises the related costs to which the grant is intended to compensate. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
HEB Group Ltd (Registered number: 12161147) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
Financial assets and financial liabilities are recognised when the company becomes party to the contractual provisions of the instrument. 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 asset 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 Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
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 |
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. |
Contributions to defined contribution plans are recognised as employee benefit expenses within profit or loss when they are due. |
Provisions |
Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settled that obligation and a reliable estimate can be made of the amount of that obligation. |
In particular, defects provisions are made to cover the anticipated costs of rectification on contracts during the retention period. |
HEB Group Ltd (Registered number: 12161147) |
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 is given below: |
31/3/23 | 31/3/22 |
£ | £ |
Contract cleaning | 2,237,270 | 2,179,233 |
Contracts | 31,754,063 | 30,669,230 |
33,991,333 | 32,848,463 |
4. | EMPLOYEES AND DIRECTORS |
31/3/23 | 31/3/22 |
£ | £ |
Wages and salaries | 5,854,616 | 5,463,228 |
Social security costs | 577,728 | 543,131 |
Other pension costs | 136,911 | 145,653 |
6,569,255 | 6,152,012 |
The average number of employees during the year was as follows: |
31/3/23 | 31/3/22 |
Production | 199 | 205 |
Administration and support | 53 | 50 |
Other departments | 3 | 4 |
31/3/23 | 31/3/22 |
£ | £ |
Directors' remuneration | 428,597 | 503,434 |
Directors' pension contributions to money purchase schemes | 24,321 | 23,321 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 3 | 3 |
Information regarding the highest paid director is as follows: |
31/3/23 | 31/3/22 |
£ | £ |
Emoluments etc | 149,861 | 134,049 |
Pension contributions to money purchase schemes | 4,000 | 4,000 |
HEB Group Ltd (Registered number: 12161147) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31/3/23 | 31/3/22 |
£ | £ |
Hire of plant and machinery | 367,454 | 505,827 |
Other operating leases | 152,275 | 164,891 |
Depreciation - owned assets | 133,732 | 130,483 |
(Profit)/loss on disposal of fixed assets | (4,379 | ) | 1,225 |
Goodwill amortisation | 98,559 | 98,559 |
Computer software amortisation | 368 | 2,203 |
6. | AUDITORS' REMUNERATION |
31/3/23 | 31/3/22 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
2,950 |
2,700 |
Fees payable to the company's auditors for other services to the group: |
The auditing of accounts of any associate of the company | 22,300 | 16,500 |
Total audit fees | 25,250 | 19,200 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31/3/23 | 31/3/22 |
£ | £ |
Other interest payable | 27 | 1,310 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31/3/23 | 31/3/22 |
£ | £ |
Current tax: |
UK corporation tax | 310,603 | 412,396 |
Deferred tax | (29,170 | ) | (635 | ) |
Tax on profit | 281,433 | 411,761 |
HEB Group Ltd (Registered number: 12161147) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
8. | 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: |
31/3/23 | 31/3/22 |
£ | £ |
Profit before tax | 1,315,126 | 1,882,736 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
249,874 |
357,720 |
Effects of: |
Expenses not deductible for tax purposes | 48,284 | 44,006 |
Adjustments to tax charge in respect of previous periods | (12,795 | ) | - |
Effect of differences in tax rates | (3,930 | ) | 10,035 |
Total tax charge | 281,433 | 411,761 |
9. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
10. | DIVIDENDS |
31/3/23 | 31/3/22 |
£ | £ |
B Ordinary shares of £1 each |
Interim | 600,950 | 600,950 |
HEB Group Ltd (Registered number: 12161147) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
11. | INTANGIBLE FIXED ASSETS |
Group |
Computer |
Goodwill | software | Totals |
£ | £ | £ |
COST |
At 1 April 2022 |
and 31 March 2023 | 985,585 | 40,055 | 1,025,640 |
AMORTISATION |
At 1 April 2022 | 246,397 | 39,687 | 286,084 |
Amortisation for year | 98,559 | 368 | 98,927 |
At 31 March 2023 | 344,956 | 40,055 | 385,011 |
NET BOOK VALUE |
At 31 March 2023 | 640,629 | - | 640,629 |
At 31 March 2022 | 739,188 | 368 | 739,556 |
12. | TANGIBLE FIXED ASSETS |
Group |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
COST |
At 1 April 2022 | 150,000 | 4,742 | 29,414 |
Additions | - | 1,000 | 795 |
Disposals | - | - | (639 | ) |
At 31 March 2023 | 150,000 | 5,742 | 29,570 |
DEPRECIATION |
At 1 April 2022 | 14,375 | 1,877 | 16,566 |
Charge for year | 7,500 | 1,290 | 6,275 |
Eliminated on disposal | - | - | (639 | ) |
At 31 March 2023 | 21,875 | 3,167 | 22,202 |
NET BOOK VALUE |
At 31 March 2023 | 128,125 | 2,575 | 7,368 |
At 31 March 2022 | 135,625 | 2,865 | 12,848 |
HEB Group Ltd (Registered number: 12161147) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
12. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST |
At 1 April 2022 | 313,964 | 403,003 | 901,123 |
Additions | 20,610 | 11,985 | 34,390 |
Disposals | - | (8,683 | ) | (9,322 | ) |
At 31 March 2023 | 334,574 | 406,305 | 926,191 |
DEPRECIATION |
At 1 April 2022 | 111,230 | 307,196 | 451,244 |
Charge for year | 59,433 | 59,234 | 133,732 |
Eliminated on disposal | - | (6,512 | ) | (7,151 | ) |
At 31 March 2023 | 170,663 | 359,918 | 577,825 |
NET BOOK VALUE |
At 31 March 2023 | 163,911 | 46,387 | 348,366 |
At 31 March 2022 | 202,734 | 95,807 | 449,879 |
Company |
Freehold |
property |
£ |
COST |
At 1 April 2022 |
and 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 |
HEB Group Ltd (Registered number: 12161147) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
13. | 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 Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Unit 16 President Buildings, Sheffield, England, S4 7UQ |
Nature of business: |
% |
Class of shares: | holding |
31/3/23 | 31/3/22 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: Unit 3 Sandall Stones Road, Doncaster, England, DN3 1QR |
Nature of business: |
% |
Class of shares: | holding |
31/3/23 | 31/3/22 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
HEB Group Ltd (Registered number: 12161147) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
14. | STOCKS |
Group |
31/3/23 | 31/3/22 |
£ | £ |
Stocks | 74,467 | 79,318 |
Work-in-progress | - | 678 |
74,467 | 79,996 |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31/3/23 | 31/3/22 | 31/3/23 | 31/3/22 |
£ | £ | £ | £ |
Trade debtors | 2,848,892 | 1,210,406 |
Amounts owed by group undertakings | - | - |
Amounts recoverable on contracts | 2,224,933 | 1,455,564 |
Other debtors | 14 | 624 |
VAT | 347,202 | 328,596 | - | - |
Prepayments and accrued income | 612,579 | 428,740 |
6,033,620 | 3,423,930 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31/3/23 | 31/3/22 | 31/3/23 | 31/3/22 |
£ | £ | £ | £ |
Trade creditors | 4,415,008 | 1,858,019 |
Amounts owed to group undertakings | - | - |
Tax | 210,626 | 212,418 |
Social security and other taxes | 261,482 | 181,830 |
VAT | 88,765 | 78,124 | - | - |
Other creditors | 540,000 | 543,512 |
Net pay and pensions liability | 192,973 | 173,568 | - | - |
Accruals and deferred income | 1,660,166 | 2,168,571 |
7,369,020 | 5,216,042 |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
31/3/23 | 31/3/22 | 31/3/23 | 31/3/22 |
£ | £ | £ | £ |
Other creditors | - | 540,000 |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
HEB Group Ltd (Registered number: 12161147) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
Group |
Non-cancellable | operating leases |
31/3/23 | 31/3/22 |
£ | £ |
Within one year | 118,819 | 149,271 |
Between one and five years | 123,947 | 237,675 |
242,766 | 386,946 |
19. | PROVISIONS FOR LIABILITIES |
Group | Company |
31/3/23 | 31/3/22 | 31/3/23 | 31/3/22 |
£ | £ | £ | £ |
Deferred tax | 13,415 | 42,585 | 5,326 | 7,201 |
Other provisions |
Defect costs | 327,170 | 300,568 | - | - |
Aggregate amounts | 340,585 | 343,153 | 5,326 | 7,201 |
Group |
Deferred | Defect |
tax | costs |
£ | £ |
Balance at 1 April 2022 | 42,585 | 300,568 |
(Credit)/charge to Income Statement during year | (29,170 | ) | 26,602 |
Balance at 31 March 2023 | 13,415 | 327,170 |
Company |
Deferred |
tax |
£ |
Balance at 1 April 2022 |
Credit to Income Statement during year | ( |
) |
Balance at 31 March 2023 |
HEB Group Ltd (Registered number: 12161147) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31/3/23 | 31/3/22 |
value: | £ | £ |
A Ordinary | £1 | 7,500 | 7,500 |
B Ordinary | £1 | 1,190 | 1,190 |
C Ordinary | £1 | 744 | 1,488 |
9,434 | 10,178 |
A ordinary shares have the following rights, preferences and restrictions: |
Each share carries the same right to a dividend and to capital on distribution. They also carry equal voting rights. |
B ordinary shares have the following rights, preferences and restrictions: |
Each share carries the same right to a dividend and to capital on distribution. They also carry equal voting rights. |
C ordinary shares have the following rights, preferences and restrictions: |
Holders of these shares do not have voting rights nor any right to a dividend or capital on distribution. |
21. | RESERVES |
Group |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 April 2022 | 3,423,557 | 1,488 | 3,425,045 |
Profit for the year | 1,033,693 | 1,033,693 |
Dividends | (600,950 | ) | (600,950 | ) |
Purchase of own shares | - | 744 | 744 |
At 31 March 2023 | 3,856,300 | 2,232 | 3,858,532 |
Company |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 April 2022 | 1,485,065 |
Profit for the year |
Dividends | ( |
) | ( |
) |
Purchase of own shares | - | 744 | 744 |
At 31 March 2023 | 1,489,598 |
HEB Group Ltd (Registered number: 12161147) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
21. | RESERVES - continued |
Group retained earnings represent the total accumulated profits and losses of the parent entity since formation, net of dividends and transfers. It also includes the parent's share of its subsidiaries post-acquisition profits and losses. |
Capital redemption reserve represents the nominal value of shares following the redemption or purchase of issued shares by the company. |
22. | ULTIMATE PARENT COMPANY |
Investment Partners (Guernsey) Limited (incorporated in Guernsey ) is regarded by the directors as being the company's ultimate parent company. |
The address of Investment Partners (Guernsey) Limited is: |
Martello Court |
Admiral Park |
St Peter Port |
Guernsey |
GY1 3HB |
23. | RELATED PARTY DISCLOSURES |
Entities with control, joint control or significant influence over the entity |
31/3/23 | 31/3/22 |
£ | £ |
Management charges payable | 518,654 | 439,000 |
Amount due to related party | 465,654 | 400,000 |
The above relates to Investment Partners (Guernsey) Limited. |
No compensation was paid to key management personnel during the year. However during the year ended 31 March 2022 a total of key management personnel compensation of £ 125,226 was paid. |
Key management personnel compensation excludes directors' remuneration which is disclosed separately in note 4. |