REGISTERED NUMBER: 01849424 (England and Wales) |
HOLMBURY LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 28TH FEBRUARY 2023 |
REGISTERED NUMBER: 01849424 (England and Wales) |
HOLMBURY LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 28TH FEBRUARY 2023 |
HOLMBURY LIMITED (REGISTERED NUMBER: 01849424) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 28TH FEBRUARY 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 | to | 3 |
Report of the Directors | 4 | to | 5 |
Report of the Independent Auditors | 6 | to | 8 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement |
16 |
to |
17 |
Notes to the Consolidated Financial Statements |
18 |
to |
29 |
HOLMBURY LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 28TH FEBRUARY 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
20 Eversley Road |
Bexhill on Sea |
East Sussex |
TN40 1HE |
HOLMBURY LIMITED (REGISTERED NUMBER: 01849424) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 28TH FEBRUARY 2023 |
The directors present their strategic report of the company and the group for the year ended 28th February 2023. |
REVIEW OF BUSINESS |
For the very first time, the size of the Holmbury group, Holmbury Ltd and its USA subsidiary, Holmbury Inc, exceeded UK medium sized company thresholds for two consecutive years. |
As a result, the group is now required to prepare and submit Holmbury group accounts for the year to 28th February 2023. |
The principal activity of the group remains the design and distribution of hydraulic components. |
The group enjoyed an excellent year across all its various sectors. This is reflected in the sales growth shown within the accounts. As well as its strong trading position, the group's year-end balance sheet is very strong indeed. |
Holmbury group operates internationally. Holmbury Inc has extensive sales within the USA and a high proportion of Holmbury Ltd's sales are to customers outside of the UK. The group maintains a full-time presence in the far east. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors constantly review the market and the business to ensure that trading risk is minimised. |
The group has some exposure to foreign exchange risk, which it manages through various means in the international currency markets. As well as these measures, Holmbury Inc's sales are predominantly invoiced in US Dollars. This in turn provides a natural hedge against any group purchases invoiced in US Dollars. |
The group manages liquidity risk through ensuring timely collection of its debtors. |
The group holds significant cash balances, a high proportion of which are invested through a variety of short-term investments. |
The group would normally look at bank loans when financing longer term projects. However, its financial strength meant that in the 2023 financial year, Holmbury Ltd made early settlement of its remaining bank loan, which had been in place for some ten years to help finance the purchase of its UK offices and warehouse at Tonbridge. The Tonbridge property is now totally debt free. |
Holmbury Ltd has taken a lot of steps to mitigate the effects of Brexit. These include establishing a warehouse facility in The Netherlands. These measures have allowed Holmbury Ltd to continue its strong European sales and enjoy an excellent reputation for performance with its European customers. |
PERFORMANCE DURING THE YEAR AND POST YEAR END |
The company has enjoyed an excellent year. Its key customers have all reported very favourably on Holmbury's performance, which is reflected within the sales growth figures reported as financial key performance indicators below. |
The group prepares internal sales and profit forecasts. These show that the group is expecting to enjoy another very healthy year to end February 2024. |
Taking account of Holmbury Inc's USA sales, group turnover is now predominantly outside of the UK. The group's directors regard this as a very important factor, it provides a hedge against a downturn in a single market. |
Looking at events post the 28th February 2023 year end, there is nothing of significance to report nor is the group currently engaged in any R&D projects. Sales continue to hold up well and Directors are confident that the group is well placed for future success. |
HOLMBURY LIMITED (REGISTERED NUMBER: 01849424) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 28TH FEBRUARY 2023 |
FINANCIAL KEY PERFORMANCE INDICATORS |
The key financial indicators contained within these accounts are: |
Group turnover for the year was £15.4 million (2022 : £13.6 million), an increase of 13%. |
Group profit after tax for the year was £1,411,410 (2022 : £1,227,533), an increase of 15%. |
Group balance sheet at year end was £6,940,026 (2022 : £5,594,411), an increase of 24%. |
OTHER KEY PERFORMANCE INDICATORS |
The group values its employees very highly and makes all reasonable efforts to ensure their well-being and career progression. |
Understanding the needs of our customers is of the utmost importance to the group. The group does so through various channels, not only through its sales force but also constant development of its websites and various advertising channels. |
The group is well aware of environmental and social issues and continues to make every effort to manage these. |
ON BEHALF OF THE BOARD: |
HOLMBURY LIMITED (REGISTERED NUMBER: 01849424) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 28TH FEBRUARY 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 28th February 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of the design, development, assembly and distribution of hydraulic components. |
DIVIDENDS |
The total distribution of dividends for the year ended 28th February 2023 was £280,899 (2022: £280,899). |
RESEARCH AND DEVELOPMENT |
Items required to be disclosed in relation to research and development are set out in the strategic report. |
FUTURE DEVELOPMENTS |
Items required to be disclosed in relation to future developments are set out in the strategic report. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st March 2022 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
HOLMBURY LIMITED (REGISTERED NUMBER: 01849424) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 28TH FEBRUARY 2023 |
AUDITORS |
The auditors, GMP Audit Limited, Statutory Auditor, 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 |
HOLMBURY LIMITED |
Opinion |
We have audited the financial statements of Holmbury Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 28th February 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 28th February 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 Matter |
This is the first year that the group has been exempt from preparing consolidated accounts. As a result, consolidated accounts were not prepared last year and therefore the comparative group information was not audited. The individual company accounts for Holmbury Ltd were audited, and therefore the Balance Sheet and notes for the parent company as a standalone entity for the year ended 28 February 2022 were audited. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HOLMBURY LIMITED |
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. |
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 four, 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 |
HOLMBURY LIMITED |
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. |
- | Discussion with management which included consideration of known or suspected instances of non-compliance with laws and regulations and fraud. |
- | Reviewing, evaluating and testing systems and controls to assess their effectiveness to prevent and detected irregularities. |
- | Identifying , reviewing and testing journal entries. |
- | Challenging assumptions and judgements made by management in respect of significant accounting estimates. |
There are inherent limitations in the audit procedures described above, and the further removed any non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely it is that 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 due to 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 |
20 Eversley Road |
Bexhill on Sea |
East Sussex |
TN40 1HE |
HOLMBURY LIMITED (REGISTERED NUMBER: 01849424) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 28TH FEBRUARY 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 | 15,415,576 | 13,697,583 |
Cost of sales | 9,917,089 | 9,219,076 |
GROSS PROFIT | 5,498,487 | 4,478,507 |
Administrative expenses | 3,660,105 | 2,967,565 |
1,838,382 | 1,510,942 |
Other operating income | 4 | - | 28,524 |
OPERATING PROFIT | 6 | 1,838,382 | 1,539,466 |
Interest receivable and similar income | 1,686 | 155 |
1,840,068 | 1,539,621 |
Interest payable and similar expenses | 7 | 27,627 | 10,583 |
PROFIT BEFORE TAXATION | 1,812,441 | 1,529,038 |
Tax on profit | 8 | 401,031 | 301,505 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,252,493 | 1,143,661 |
Non-controlling interests | 158,917 | 83,872 |
1,411,410 | 1,227,533 |
HOLMBURY LIMITED (REGISTERED NUMBER: 01849424) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 28TH FEBRUARY 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,411,410 | 1,227,533 |
OTHER COMPREHENSIVE INCOME |
Functional currency exchange difference | 162,367 | 44,968 |
Income tax relating to other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
162,367 |
44,968 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,573,777 |
1,272,501 |
Total comprehensive income attributable to: |
Owners of the parent | 1,414,859 | 1,188,630 |
Non-controlling interests | 158,918 | 83,871 |
1,573,777 | 1,272,501 |
HOLMBURY LIMITED (REGISTERED NUMBER: 01849424) |
CONSOLIDATED BALANCE SHEET |
28TH FEBRUARY 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 | - | - |
Tangible assets | 12 | 1,046,494 | 1,074,850 |
Investments | 13 | - | - |
1,046,494 | 1,074,850 |
CURRENT ASSETS |
Stocks | 14 | 3,630,206 | 4,568,290 |
Debtors | 15 | 2,704,070 | 2,571,022 |
Cash at bank and in hand | 1,472,895 | 1,137,935 |
7,807,171 | 8,277,247 |
CREDITORS |
Amounts falling due within one year | 16 | 1,638,309 | 3,446,765 |
NET CURRENT ASSETS | 6,168,862 | 4,830,482 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
7,215,356 |
5,905,332 |
CREDITORS |
Amounts falling due after more than one year |
17 |
(202,511 |
) |
(241,726 |
) |
PROVISIONS FOR LIABILITIES | 21 | (72,819 | ) | (69,195 | ) |
NET ASSETS | 6,940,026 | 5,594,411 |
CAPITAL AND RESERVES |
Called up share capital | 22 | 200 | 200 |
Retained earnings | 23 | 6,237,318 | 5,103,357 |
SHAREHOLDERS' FUNDS | 6,237,518 | 5,103,557 |
NON-CONTROLLING INTERESTS | 702,508 | 490,854 |
TOTAL EQUITY | 6,940,026 | 5,594,411 |
The financial statements were approved by the Board of Directors and authorised for issue on 27th November 2023 and were signed on its behalf by: |
J G French - Director |
HOLMBURY LIMITED (REGISTERED NUMBER: 01849424) |
COMPANY BALANCE SHEET |
28TH FEBRUARY 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
Investments | 13 |
CURRENT ASSETS |
Stocks | 14 |
Debtors | 15 |
Cash at bank and in hand |
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 | 21 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Retained earnings | 23 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 764,732 | 883,346 |
The financial statements were approved by the Board of Directors and authorised for issue on |
..................................................... |
HOLMBURY LIMITED (REGISTERED NUMBER: 01849424) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 28TH FEBRUARY 2023 |
Called up |
share | Retained | Non-controlling | Total |
capital | earnings | Total | interests | equity |
£ | £ | £ | £ | £ |
Balance at 1st March 2021 | 200 | 4,195,627 | 4,195,827 | 392,343 | 4,588,170 |
Changes in equity |
Functional currency translation difference |
- |
- |
- |
14,640 |
14,640 |
Dividends | - | (280,899 | ) | (280,899 | ) | - | (280,899 | ) |
Total comprehensive income | - | 1,188,629 | 1,188,629 | 83,871 | 1,272,500 |
Balance at 28th February 2022 | 200 | 5,103,357 | 5,103,557 | 490,854 | 5,594,411 |
Changes in equity |
Functional currency translation difference |
- |
- |
- |
52,736 |
52,736 |
Dividends | - | (280,899 | ) | (280,899 | ) | - | (280,899 | ) |
Total comprehensive income | - | 1,414,860 | 1,414,860 | 158,918 | 1,573,778 |
Balance at 28th February 2023 | 200 | 6,237,318 | 6,237,518 | 702,508 | 6,940,026 |
HOLMBURY LIMITED (REGISTERED NUMBER: 01849424) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 28TH FEBRUARY 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1st March 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 28th February 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 28th February 2023 |
HOLMBURY LIMITED (REGISTERED NUMBER: 01849424) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 28TH FEBRUARY 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 893,428 | 56,554 |
Interest paid | (27,627 | ) | (10,188 | ) |
Interest element of hire purchase or finance lease rental payments paid |
- |
(395 |
) |
Foreign exchange differences | 213,846 | 59,607 |
Tax paid | (393,246 | ) | (297,454 | ) |
Net cash from operating activities | 686,401 | (191,876 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (65,338 | ) | (274,458 | ) |
Sale of tangible fixed assets | - | 50,500 |
Interest received | 1,686 | 155 |
Net cash from investing activities | (63,652 | ) | (223,803 | ) |
Cash flows from financing activities |
Equity dividends paid | (280,899 | ) | (280,899 | ) |
Net cash from financing activities | (280,899 | ) | (280,899 | ) |
Increase/(decrease) in cash and cash equivalents | 341,850 | (696,578 | ) |
Cash and cash equivalents at beginning of year |
2 |
885,457 |
1,582,035 |
Cash and cash equivalents at end of year |
2 |
1,227,307 |
885,457 |
HOLMBURY LIMITED (REGISTERED NUMBER: 01849424) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 28TH FEBRUARY 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 1,812,441 | 1,529,038 |
Depreciation charges | 95,121 | 88,697 |
Profit on disposal of fixed assets | - | (9,656 | ) |
Government grants | - | (1,840 | ) |
Finance costs | 27,627 | 10,583 |
Finance income | (1,686 | ) | (155 | ) |
1,933,503 | 1,616,667 |
Decrease/(increase) in stocks | 938,084 | (2,528,370 | ) |
Increase in trade and other debtors | (149,240 | ) | (358,233 | ) |
(Decrease)/increase in trade and other creditors | (1,828,919 | ) | 1,326,490 |
Cash generated from operations | 893,428 | 56,554 |
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 28th February 2023 |
28/2/23 | 1/3/22 |
£ | £ |
Cash and cash equivalents | 1,472,895 | 1,137,935 |
Bank overdrafts | (245,588 | ) | (252,478 | ) |
1,227,307 | 885,457 |
Year ended 28th February 2022 |
28/2/22 | 1/3/21 |
£ | £ |
Cash and cash equivalents | 1,137,935 | 1,582,035 |
Bank overdrafts | (252,478 | ) | - |
885,457 | 1,582,035 |
HOLMBURY LIMITED (REGISTERED NUMBER: 01849424) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 28TH FEBRUARY 2023 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/3/22 | Cash flow | At 28/2/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,137,935 | 334,960 | 1,472,895 |
Bank overdrafts | (252,478 | ) | 6,890 | (245,588 | ) |
885,457 | 341,850 | 1,227,307 |
Debt |
Debts falling due within 1 year | (33,943 | ) | (1,335 | ) | (35,278 | ) |
Debts falling due after 1 year | (241,726 | ) | 39,215 | (202,511 | ) |
(275,669 | ) | 37,880 | (237,789 | ) |
Total | 609,788 | 379,730 | 989,518 |
HOLMBURY LIMITED (REGISTERED NUMBER: 01849424) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 28TH FEBRUARY 2023 |
1. | STATUTORY INFORMATION |
Holmbury Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
The presentation currency of the group accounts is pounds sterling which is different from the functional currency of Holmbury Inc which is US dollars. For the purpose of producing consolidated group accounts the figures for Holmbury Inc have been translated into pounds sterling. Exchange differences arising from re-translation of the opening balances are taken to other comprehensive income to the extent that they are attributable to the parent company. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The group financial statements consolidate the financial statements of Holmbury Ltd and its subsidiary undertakings, Holmbury US Holdings Ltd and Holmbury Inc, for the year ended 28th February 2023. |
Unless otherwise stated, the acquisition method of accounting has been adopted. Under this method, the results of subsidiary undertakings and associated undertakings acquired or disposed of in the period are included in the consolidated profit and loss account from the date of acquisition or up to the date of disposal. |
Goodwill arising on consolidation (representing the excess of the fair value of the consideration given over the fair value of the separable net assets acquired) is capitalised and amortised by equal annual instalments over its estimated useful life. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Goodwill |
Holmbury Ltd acquired business assets with a value of $326,765 from a USA based associate in 2003 and subsequently incorporated a new, wholly owned, subsidiary, Holmbury Inc, in late 2003. These assets were amortised in the books of Holmbury Inc over the next 20 years. They are now fully amortised but kept in the books as the business considers that they still have value. |
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. |
HOLMBURY LIMITED (REGISTERED NUMBER: 01849424) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28TH FEBRUARY 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Freehold property | - |
Improvements to property | - |
Fixtures and fittings | - |
Motor vehicles | - |
Government grants |
Grant income has been recognised under the performance model. |
Grants that do not specify any future performance-related conditions are recorded when the grant proceeds are received or receivable. Any grant that imposes specified future performance-related conditions is recognised only when the performance-related conditions are met. Grants received before the revenue recognition criteria are satisfied are recognised as a liability. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Stock is valued on a FIFO basis. |
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. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
HOLMBURY LIMITED (REGISTERED NUMBER: 01849424) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28TH FEBRUARY 2023 |
2. | ACCOUNTING POLICIES - continued |
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. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
All turnover relates to the sale of goods, including freight charges. |
The directors have chosen not to disclose the group's turnover by geographical markets as it considers such information to be commercially sensitive and could be seriously prejudicial to the interests of the group. |
4. | OTHER OPERATING INCOME |
2023 | 2022 |
£ | £ |
Sundry receipts | - | 830 |
Government grants | - | 1,840 |
Exchange gains | - | 25,854 |
- | 28,524 |
Other operating income includes government grants under the Coronavirus Job Retention Scheme of £nil (2022: £1,840). |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 2,314,259 | 1,828,745 |
Social security costs | 149,748 | 119,352 |
Other pension costs | 47,928 | 77,096 |
2,511,935 | 2,025,193 |
HOLMBURY LIMITED (REGISTERED NUMBER: 01849424) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28TH FEBRUARY 2023 |
5. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2023 | 2022 |
Administration | 25 | 25 |
Warehouse | 6 | 6 |
2023 | 2022 |
£ | £ |
Directors' remuneration | 218,728 | 156,830 |
Directors' pension contributions to money purchase schemes | 25,000 | 55,000 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 1 | 1 |
Information regarding the highest paid director for the year ended 28th February 2023 is as follows: |
2023 |
£ |
Emoluments etc | 150,272 |
Pension contributions to money purchase schemes | 25,000 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Other operating leases | 103,833 | 87,786 |
Depreciation - owned assets | 95,439 | 74,934 |
Profit on disposal of fixed assets | - | (9,656 | ) |
Auditors' remuneration | 21,250 | 7,975 |
Foreign exchange differences | 54,787 | 22,555 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest | 27,627 | 10,188 |
Hire purchase | - | 395 |
27,627 | 10,583 |
HOLMBURY LIMITED (REGISTERED NUMBER: 01849424) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28TH FEBRUARY 2023 |
8. | 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 | 175,606 | 187,468 |
US corporation tax | 221,801 | 80,397 |
Total current tax | 397,407 | 267,865 |
Deferred tax | 3,624 | 33,640 |
Tax on profit | 401,031 | 301,505 |
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 | 1,812,441 | 1,529,038 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
344,364 |
290,517 |
Effects of: |
Expenses not deductible for tax purposes | 19,411 | 13,776 |
Income not taxable for tax purposes | - | (1,835 | ) |
Capital allowances in excess of depreciation | (23,159 | ) | (34,319 | ) |
Profits not taxed in UK | (165,010 | ) | (80,671 | ) |
US corporation tax | 221,801 | 80,397 |
Origination and reversal of timing differences not recognised | 3,624 | 33,640 |
Total tax charge | 401,031 | 301,505 |
Tax effects relating to effects of other comprehensive | income |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Functional currency exchange difference | 162,367 | - | 162,367 |
2022 |
Gross | Tax | Net |
£ | £ | £ |
Functional currency exchange difference | 44,968 | - | 44,968 |
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. |
HOLMBURY LIMITED (REGISTERED NUMBER: 01849424) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28TH FEBRUARY 2023 |
10. | DIVIDENDS |
11. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1st March 2022 | 243,855 |
Exchange differences | 26,199 |
At 28th February 2023 | 270,054 |
AMORTISATION |
At 1st March 2022 | 243,855 |
Exchange differences | 26,199 |
At 28th February 2023 | 270,054 |
NET BOOK VALUE |
At 28th February 2023 | - |
At 28th February 2022 | - |
12. | TANGIBLE FIXED ASSETS |
Group |
Improvements | Fixtures |
Freehold | to | and | Motor |
property | property | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1st March 2022 | 731,096 | 149,895 | 385,995 | 351,808 | 1,618,794 |
Additions | - | 695 | 64,643 | - | 65,338 |
Exchange differences | - | - | 1,745 | - | 1,745 |
At 28th February 2023 | 731,096 | 150,590 | 452,383 | 351,808 | 1,685,877 |
DEPRECIATION |
At 1st March 2022 | 55,771 | 68,890 | 258,316 | 160,967 | 543,944 |
Charge for year | 6,829 | 8,158 | 32,742 | 47,710 | 95,439 |
At 28th February 2023 | 62,600 | 77,048 | 291,058 | 208,677 | 639,383 |
NET BOOK VALUE |
At 28th February 2023 | 668,496 | 73,542 | 161,325 | 143,131 | 1,046,494 |
At 28th February 2022 | 675,325 | 81,005 | 127,679 | 190,841 | 1,074,850 |
HOLMBURY LIMITED (REGISTERED NUMBER: 01849424) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28TH FEBRUARY 2023 |
12. | TANGIBLE FIXED ASSETS - continued |
Company |
Improvements | Fixtures |
Freehold | to | and | Motor |
property | property | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1st March 2022 |
Additions |
At 28th February 2023 |
DEPRECIATION |
At 1st March 2022 |
Charge for year |
At 28th February 2023 |
NET BOOK VALUE |
At 28th February 2023 |
At 28th February 2022 |
13. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertaki |
£ |
COST |
At 1st March 2022 |
and 28th February 2023 |
NET BOOK VALUE |
At 28th February 2023 |
At 28th February 2022 |
HOLMBURY LIMITED (REGISTERED NUMBER: 01849424) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28TH FEBRUARY 2023 |
13. | FIXED ASSET INVESTMENTS - continued |
The company's investments in the group's principal undertakings are as follows: |
2023 | 2022 |
£ | £ |
Shares in subsidiary undertaking at cost | 792 | 792 |
792 | 792 |
Country of incorporation |
Principal activity |
Proportion of ordinary shares held |
Holmbury US Holdings Ltd |
England and Wales |
Holding company |
75.44% |
*Holmbury Inc |
United States of America |
Design and distribution of hydraulic components |
0% |
*The company is a 100% owned subsidiary of Holmbury US Holdings Ltd. |
The registered office of Holmbury US Holdings Ltd is Premier House, 1 Vale Rise, Tonbridge, Kent TN9 1TB. |
The address of Holmbury Inc is Curtis Centre, 33801 Curtis Blvd., Suite 104, Eastlake, Ohio, 44095, United State of America. |
14. | STOCKS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Stocks | 3,630,206 | 4,568,290 |
Group closing stock of £3,630,581 as at 28th February 2023 (2022 - £4,568,290) is after a provision of £60,115 (2022 - £79,123) in respect of slow-moving and obsolete stock. The decrease of £19,008 in the slow-moving / obsolete stock provision has been recognised in the group income statement. |
Company closing stock of £1,819,969 as at 28th February 2023 (2022 - £2,085,705) is after a provision of £12,797 (2022 - £29,345) in respect of slow-moving and obsolete stock. The decrease of £16,548 in the slow-moving / obsolete stock provision has been recognised in the company income statement. |
HOLMBURY LIMITED (REGISTERED NUMBER: 01849424) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28TH FEBRUARY 2023 |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 2,562,005 | 2,412,875 |
Other debtors | 2,125 | 169 |
Tax | 27,467 | 43,490 |
Accrued income | 202 | - |
Prepayments | 112,271 | 114,488 |
2,704,070 | 2,571,022 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 18) | 280,866 |
286,421 |
Trade creditors | 788,998 | 2,605,608 |
Tax | 175,606 | 187,468 |
Social security and other taxes | 35,495 | 24,258 |
Pensions control | 2,001 | 1,917 | 2,001 | 1,917 |
VAT | 172,614 | 157,788 | 172,614 | 157,788 |
Accrued expenses | 182,729 | 183,305 |
1,638,309 | 3,446,765 |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans (see note 18) | 202,511 | 241,726 |
18. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year | or on demand: |
Bank overdrafts | 245,588 | 252,478 |
Bank loans | 35,278 | 33,943 |
280,866 | 286,421 |
Amounts falling due between one and | two years: |
Bank loans and overdrafts | 202,511 | 241,726 |
HOLMBURY LIMITED (REGISTERED NUMBER: 01849424) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28TH FEBRUARY 2023 |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year | 34,769 | 36,631 |
Between one and five years | 47,105 | 73,931 |
81,874 | 110,562 |
Lease payments recognised as an expense in the year were £40,566 (2022: £3,358). |
20. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank overdrafts | 245,588 | 252,478 |
Bank loans | 237,789 | 275,669 |
483,377 | 528,147 |
The overdraft is secured against the assets of Holmbury Inc. |
The bank loan is secured against the freehold property of Holmbury Ltd. |
21. | PROVISIONS FOR LIABILITIES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax | 72,819 | 69,195 | 72,819 | 69,195 |
Group |
Deferred |
tax |
£ |
Balance at 1st March 2022 | 69,195 |
Charge to Income Statement during year | 3,624 |
Balance at 28th February 2023 | 72,819 |
HOLMBURY LIMITED (REGISTERED NUMBER: 01849424) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28TH FEBRUARY 2023 |
21. | PROVISIONS FOR LIABILITIES - continued |
Company |
Deferred |
tax |
£ |
Balance at 1st March 2022 |
Charge to Income Statement during year |
Balance at 28th February 2023 |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 200 | 200 |
23. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1st March 2022 | 5,103,357 |
Profit for the year | 1,252,493 |
Dividends | (280,899 | ) |
Presentation currency exchange |
difference | 162,367 |
At 28th February 2023 | 6,237,318 |
Company |
Retained |
earnings |
£ |
At 1st March 2022 |
Profit for the year |
Dividends | ( |
) |
At 28th February 2023 |
24. | RELATED PARTY DISCLOSURES |
During the year, a total of key management personnel compensation of £ 807,685 was paid. |
Key management personnel compensation includes directors' salaries, social security, benefits and pension contributions for the directors of Holmbury Ltd and Holmbury Inc. |
HOLMBURY LIMITED (REGISTERED NUMBER: 01849424) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28TH FEBRUARY 2023 |
25. | POST BALANCE SHEET EVENTS |
Creditors due after more than one year of £202,511 at the balance sheet date, being the bank loan balance due after one year, were repaid in full after the year-end but before the date of approval of these accounts. |
26. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is D French. |