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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: S J Bennett
C Bennett
M Burkinshaw
N C Pollard
P Dobson



REGISTERED OFFICE: Unit 16
President Buildings
Savile Street East
Sheffield
South Yorkshire
S4 7UQ



REGISTERED NUMBER: 12161147 (England and Wales)



INDEPENDENT AUDITORS: Landin Wilcock & Co
Statutory Auditor
68 Queen Street
Sheffield
South Yorkshire
S1 1WR



BANKERS: Barclays Bank
10-12 Pinstone Street
Sheffield
South Yorkshire
S1 2HN



SOLICITORS: Wake Smith LLP
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:





N C Pollard - Director


21 June 2023

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.

S J Bennett
C Bennett
M Burkinshaw
N C Pollard
P Dobson

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:





N C Pollard - Director


21 June 2023

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.




Mr Robert Hampstead (Senior Statutory Auditor)
for and on behalf of Landin Wilcock & Co
Statutory Auditor
68 Queen Street
Sheffield
South Yorkshire
S1 1WR

23 June 2023

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 1,033,693 1,470,975
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 12 128,125 135,625
Investments 13 1,294,960 1,294,960
1,423,085 1,430,585

CURRENT ASSETS
Debtors 15 6,200 3,125
Cash at bank 662,429 1,189,686
668,629 1,192,811
CREDITORS
Amounts falling due within one year 16 (587,356 ) (580,952 )
NET CURRENT ASSETS 81,273 611,859
TOTAL ASSETS LESS CURRENT LIABILITIES 1,504,358 2,042,444

CREDITORS
Amounts falling due after more than one
year

17

-

(540,000

)

PROVISIONS FOR LIABILITIES 19 (5,326 ) (7,201 )
NET ASSETS 1,499,032 1,495,243

CAPITAL AND RESERVES
Called up share capital 20 9,434 10,178
Capital redemption reserve 21 2,232 1,488
Retained earnings 21 1,487,366 1,483,577
SHAREHOLDERS' FUNDS 1,499,032 1,495,243

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 21 June 2023 and were signed on its behalf by:





N C Pollard - Director


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 11,666 2,768,440 - 2,780,106

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 - 1,476,087 - 1,476,087
Balance at 31 March 2022 10,178 1,483,577 1,488 1,495,243

Changes in equity
Purchase of own shares (744 ) - 744 -
Dividends - (600,950 ) - (600,950 )
Total comprehensive income - 604,739 - 604,739
Balance at 31 March 2023 9,434 1,487,366 2,232 1,499,032

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

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

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

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
Goodwill, being the amount paid in connection with the acquisition of a business in 2019, is being amortised evenly over its estimated useful life of ten years.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of three years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.
Freehold property - 5% on cost
Improvements to property - 20% on cost
Plant and machinery - 25% on cost
Fixtures and fittings - 25% on cost
Motor vehicles - 25% on cost

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
255 259

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 150,000
DEPRECIATION
At 1 April 2022 14,375
Charge for year 7,500
At 31 March 2023 21,875
NET BOOK VALUE
At 31 March 2023 128,125
At 31 March 2022 135,625

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 1,294,960
NET BOOK VALUE
At 31 March 2023 1,294,960
At 31 March 2022 1,294,960

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

Subsidiaries

H.E. Barnes Limited
Registered office: Unit 16 President Buildings, Sheffield, England, S4 7UQ
Nature of business: Mechanical and electrical contracting services
%
Class of shares: holding
Ordinary 100.00
31/3/23 31/3/22
£    £   
Aggregate capital and reserves 2,660,377 2,161,973
Profit for the year 1,105,036 1,558,000

Solutions 4 Cleaning Limited
Registered office: Unit 3 Sandall Stones Road, Doncaster, England, DN3 1QR
Nature of business: Contract cleaning services
%
Class of shares: holding
Ordinary 100.00
31/3/23 31/3/22
£    £   
Aggregate capital and reserves 389,133 354,119
Profit for the year 35,014 37,011


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 - - 6,200 3,125
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 6,200 3,125

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 - - 37,200 31,000
Tax 210,626 212,418 2,776 2,387
Social security and other taxes 261,482 181,830 - -
VAT 88,765 78,124 - -
Other creditors 540,000 543,512 540,000 540,000
Net pay and pensions liability 192,973 173,568 - -
Accruals and deferred income 1,660,166 2,168,571 7,380 7,565
7,369,020 5,216,042 587,356 580,952

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 - 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 7,201
Credit to Income Statement during year (1,875 )
Balance at 31 March 2023 5,326

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: £    £   
7,500 A Ordinary £1 7,500 7,500
1,190 B Ordinary £1 1,190 1,190
1,488 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 1,483,577 1,488 1,485,065
Profit for the year 604,739 604,739
Dividends (600,950 ) (600,950 )
Purchase of own shares - 744 744
At 31 March 2023 1,487,366 2,232 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.