Company registration number 01278500 (England and Wales)
RONALD HULL JNR. LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
RONALD HULL JNR. LIMITED
COMPANY INFORMATION
Directors
R Hull Jnr
Mrs V J Hull
M R Hull
D J Hull
N P Hull
Secretary
Mrs V J Hull
Company number
01278500
Registered office
Mangham Works
Mangham Road
Parkgate
Rotherham
S62 6EF
Auditor
BHP LLP
2 Rutland Park
Sheffield
S10 2PD
Bankers
Barclays Bank  Plc
2-12 Pinstone Street
Sheffield
S1 2HN
RONALD HULL JNR. LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 6
Independent auditor's report
7 - 9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 34
RONALD HULL JNR. LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 MARCH 2023
- 1 -

The directors present the strategic report for the period ended 31 March 2023.

Fair review of the business

During the period the group continued to develop strategic plans to improve long term performance of the business.

 

The group extended the accounting period to capture significant capital expenditure that had been incurred in the extended financial year. The financial statements have been prepared for a 14 month period ending 31 March 2023.

 

Turnover for the period is up 43.72% on the year ended 31 January 2022 and profit before tax has increased by 13.3%.

 

The significant increase in turnover this year is in large part attributable to higher stock turnover and strategic purchasing of raw material.

 

Ronald Hull Jnr Limited acquired the trade and assets of Mettalis Recycling Limited part way through the previous financial year. The results this period include a full 14 months of activities from this site which will have also contributed to the increased revenue in the year.

 

The group continues to monitor its ongoing strategic plans in order to maintain its profitability.

Principal risks and uncertainties

The group's principal financial instruments comprise cash, short term deposits, hire purchase contracts and inter company loans. The main purpose of these financial instruments is to raise finance for the group's operations. The group has various other financial instruments such as trade debtors and trade creditors, which arise directly from its operations.

 

It is, and has been throughout the period under review , the group's policy that no trading in financial instruments shall be undertaken. The main risks arising from the group's financial instruments are summarised below:

 

Commodity price risk

 

The group's exposure to the price of steel is high, therefore selling prices are monitored regularly to reduce the impact of such risk.

 

Liquidity risk

 

The group's objective is to maintain a balance between continuity of funding and flexibility through the use of hire purchase contracts and inter-company loans.

 

Credit risk

 

The group trades with only recognised, creditworthy third parties. It is group policy that all customers who wish to trade on credit terms are subject to credit vetting procedures. In addition, receivable balances are monitored on an ongoing basis with the result that the group's exposure to bad debts is not significant. We intend to double our efforts to mitigate exposure to bad debts.

 

Uncertainties

 

The uncertainty in world affairs will continue to create peaks and troughs within the metals markets. Chinese demand has struggled to recover to pre pandemic levels despite stimulus packages.

Development and performance

The group's market is largely reliant on the strength of the steel and metal recycling industry and therefore faces uncertain demand for products and services,

 

We continue to develop the 14 acres of land adjoined to our head office site at Mangham Road and continued investment in plant and infrastructure at our Sheffield site.

RONALD HULL JNR. LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 2 -
Key performance indicators

The group monitors its financial performance through its key performance indicators; primarily earnings before tax which was £6,199,322 (2022: £5,469,958).

Section 172 statement

 

The publication of the Ron Hull Group Section 172 statement is made in accordance with Companies Act 2006 and applies to all subsidiaries of the Ron Hull Group of companies.

 

Section 172 of The Companies Act states that the directors must act in the way it considers, in good faith would most likely promote the success of the Group, for the benefit of its members as a whole. In doing so the directors shall take into consideration (amongst other matters):

 

 

 

Key business decisions

 

In the face of rising energy costs the decision was taken to put in place mitigating measures. Key amongst these was significant investment in a battery storage system enabling the group to store energy from a variety of sources and utilise it when needed. This supports the group’s intention for reducing its overall carbon footprint and aligns it with the UK’s wider aims of becoming a net zero economy.

 

Employees

 

The group’s key focus is employee health and well-being, employee development, pay and benefits. The strength of our business is built on the hard work and dedication of our employees. We offer training opportunities and encourage employee participation in our toolbox talks and internal brainstorming sessions.

 

Customers

 

The success of the business is built on the skills and expertise of our employees. Their ability to identify, source, and sort specific material for our customers is critical in maintaining both a quality service and strong relationships.

 

Suppliers

 

The directors recognise that both relationships with and appropriate vetting of material suppliers are important to the group’s success. We seek to balance the benefit of maintaining good working relationships with the need to ensure that industry specific licences and regulations are adhered to.

 

Communities and environment

 

The directors recognise the group’s impact on its local community within which it is a significant employer, and its responsibility to the environment. The group’s objective is to reduce its carbon footprint with the use of renewable fuels and has already made progress in this area with the development of bio-mass and solar powered energy solutions.

 

Government and regulations

 

Key areas of focus are compliance with specific industry laws and regulations and health and safety. The directors are updated on legal and regulatory developments and takes these into account when considering future actions.

 

 

RONALD HULL JNR. LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 3 -

Culture and values

 

The directors seek to maintain a reputation within its industry for high standards of business conduct. We believe these are the ethics for securing long term growth. This is determined by a clear appreciation of our responsibilities and obligations. Lawful conduct, fair competition and adherence to the industry’s specific regulatory environment are integral to the group’s business activities.

On behalf of the board

R Hull Jnr
Director
23 November 2023
RONALD HULL JNR. LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 MARCH 2023
- 4 -

The directors present their annual report and financial statements for the period ended 31 March 2023.

Principal activities

The principal activity of the company continued to be that of metal merchants, waste recycling, confidential destruction and the manufacture of aluminium ingots.

 

For other group activities see note 16.

Results and dividends

The results for the period are set out on page 10.

Ordinary dividends were paid amounting to £10,000. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the period and up to the date of signature of the financial statements were as follows:

R Hull Jnr
Mrs V J Hull
M R Hull
D J Hull
N P Hull
Research and development

The group engages in research and development activities with the main activities being process improvement.

Auditor

The auditor, BHP LLP, is deemed reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report
The energy and carbon report was prepared  for the period 1 January 2022  to 31 December 2022.
2023
Energy consumption
kWh
Aggregate of energy consumption in the year
20,762,962
RONALD HULL JNR. LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 5 -
2023
Emissions of CO2 equivalent
metric tonnes
Scope 1 - direct emissions
- Gas combustion
1,891.00
- Fuel consumed for owned transport
1,768.00
3,659.00
Scope 2 - indirect emissions
- Electricity purchased
826.00
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the
1,077.00
Total gross emissions
5,562.00
Intensity ratio
Tonnes of CO2e per £M turnover
98.62
Quantification and reporting methodology

The GHG emissions have been assessed following the ISO 14064-1:2018 standard and has used the 2022 emission conversion factors published by Department for Environment, Food and Rural Affairs (Defra) and the Department for Business, Energy & Industrial Strategy (BEIS). The assessment follows the dual reporting approach for assessing Scope 2 emissions from electricity usage. The operational control approach has been used.

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £M turnover, the recommended ratio for the sector.

Measures taken to improve energy efficiency

This is the first year the Group has assessed its emissions, and this will set the baseline for future assessments.

 

Recommendations for next year:

- Investigate adopting an alternative fuel source such as HVO or biodiesel to power vehicles (HGV's) with larger emissions.

- Investigate swapping owned sites from gas-powered heating to sustainable alternatives.

- Continue switching sites to renewable energy tariffs to reduce our market-based emissions.

- Carry out a target setting and supply chain screening to facilitate our reduction strategy and increase the scope of our assessment.

RONALD HULL JNR. LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 6 -
Statement of directors' responsibilities

The directors are responsible for preparing the Annual 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). 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments, financial instruments and engagement with suppliers and customers.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
R Hull Jnr
Director
23 November 2023
RONALD HULL JNR. LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RONALD HULL JNR. LIMITED
- 7 -
Opinion

We have audited the financial statements of Ronald Hull Jnr. Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 March 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company 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 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

RONALD HULL JNR. LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RONALD HULL JNR. LIMITED
- 8 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 is 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 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 an auditor's report 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

RONALD HULL JNR. LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RONALD HULL JNR. LIMITED
- 9 -

We assessed the susceptibility of the group’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by;

 

 

To address the risks of fraud through management bias and override controls, we:

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 an auditor's report 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.

Lisa Leighton (Senior Statutory Auditor)
For and on behalf of BHP LLP
27 November 2023
Chartered Accountants
Statutory Auditor
2 Rutland Park
Sheffield
S10 2PD
RONALD HULL JNR. LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 MARCH 2023
- 10 -
Period
Year
ended
ended
31 March
31 January
2023
2022
as restated
Notes
£
£
Turnover
4
68,245,310
47,484,069
Cost of sales
(43,746,046)
(28,068,757)
Gross profit
24,499,264
19,415,312
Administrative expenses
(18,805,601)
(13,901,520)
Other operating income
698,425
215,192
Operating profit
5
6,392,088
5,728,984
Interest receivable and similar income
9
241,988
3,490
Interest payable and similar expenses
10
(434,754)
(262,516)
Profit before taxation
6,199,322
5,469,958
Tax on profit
12
(844,884)
(1,181,701)
Profit for the financial period
5,354,438
4,288,257
Total comprehensive income for the period is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

RONALD HULL JNR. LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
13
25,000
28,500
Other intangible assets
13
1,143
1,614
Total intangible assets
26,143
30,114
Tangible assets
15
20,885,463
19,409,411
Investment properties
14
775,000
775,000
21,686,606
20,214,525
Current assets
Stocks
18
7,010,401
8,760,952
Debtors
19
5,679,530
6,726,923
Cash at bank and in hand
17,180,135
13,500,617
29,870,066
28,988,492
Creditors: amounts falling due within one year
20
(11,119,735)
(14,846,818)
Net current assets
18,750,331
14,141,674
Total assets less current liabilities
40,436,937
34,356,199
Provisions for liabilities
Deferred tax liability
23
2,638,000
1,901,700
(2,638,000)
(1,901,700)
Net assets
37,798,937
32,454,499
Capital and reserves
Called up share capital
25
50,000
50,000
Profit and loss reserves
37,748,937
32,404,499
Total equity
37,798,937
32,454,499
The financial statements were approved by the board of directors and authorised for issue on 23 November 2023 and are signed on its behalf by:
23 November 2023
R Hull Jnr
Director
RONALD HULL JNR. LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
13
25,000
28,500
Tangible assets
15
19,845,170
18,472,829
Investment properties
14
775,000
775,000
Investments
16
70,179
70,179
20,715,349
19,346,508
Current assets
Stocks
18
6,980,361
8,760,952
Debtors
19
4,286,713
7,268,346
Cash at bank and in hand
15,795,264
11,556,802
27,062,338
27,586,100
Creditors: amounts falling due within one year
20
(10,221,376)
(13,738,271)
Net current assets
16,840,962
13,847,829
Total assets less current liabilities
37,556,311
33,194,337
Provisions for liabilities
Deferred tax liability
23
2,558,000
1,897,000
(2,558,000)
(1,897,000)
Net assets
34,998,311
31,297,337
Capital and reserves
Called up share capital
25
50,000
50,000
Profit and loss reserves
34,948,311
31,247,337
Total equity
34,998,311
31,297,337

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £3,710,974 (2022 - £4,934,448 profit).

The financial statements were approved by the board of directors and authorised for issue on 23 November 2023 and are signed on its behalf by:
23 November 2023
R Hull Jnr
Director
Company Registration No. 01278500
RONALD HULL JNR. LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 MARCH 2023
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 February 2021
50,000
28,126,242
28,176,242
Period ended 31 January 2022:
Profit and total comprehensive income for the period
-
4,288,257
4,288,257
Dividends
11
-
(10,000)
(10,000)
Balance at 31 January 2022
50,000
32,404,499
32,454,499
Period ended 31 March 2023:
Profit and total comprehensive income for the period
-
5,354,438
5,354,438
Dividends
11
-
(10,000)
(10,000)
Balance at 31 March 2023
50,000
37,748,937
37,798,937
RONALD HULL JNR. LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 MARCH 2023
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 February 2021
50,000
26,322,889
26,372,889
Period ended 31 January 2022:
Profit and total comprehensive income for the period
-
4,934,448
4,934,448
Dividends
11
-
(10,000)
(10,000)
Balance at 31 January 2022
50,000
31,247,337
31,297,337
Period ended 31 March 2023:
Profit and total comprehensive income for the period
-
3,710,974
3,710,974
Dividends
11
-
(10,000)
(10,000)
Balance at 31 March 2023
50,000
34,948,311
34,998,311
RONALD HULL JNR. LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 MARCH 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
8,268,784
14,063,103
Interest paid
(434,754)
(262,516)
Income taxes paid
(172,873)
(20,624)
Net cash inflow from operating activities
7,661,157
13,779,963
Investing activities
Purchase of intangible assets
-
(30,000)
Purchase of tangible fixed assets
(5,177,934)
(7,562,564)
Proceeds from disposal of tangible fixed assets
1,173,112
584,052
Interest received
241,988
3,490
Net cash used in investing activities
(3,762,834)
(7,005,022)
Financing activities
Payment of finance leases obligations
(208,805)
(120,343)
Dividends paid to equity shareholders
(10,000)
(10,000)
Net cash used in financing activities
(218,805)
(130,343)
Net increase in cash and cash equivalents
3,679,518
6,644,598
Cash and cash equivalents at beginning of period
13,500,617
6,856,019
Cash and cash equivalents at end of period
17,180,135
13,500,617
RONALD HULL JNR. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
- 16 -
1
Accounting policies
Company information

Ronald Hull Jnr. Limited (“the company”) is a private company limited by shares incorporated in England and Wales. The registered office is Mangham Works, Mangham Road, Parkgate, Rotherham, S62 6EF.

 

The group consists of Ronald Hull Jnr. Limited and all of its subsidiaries as detailed in note 16.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include investment properties at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

RONALD HULL JNR. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -

The consolidated financial statements incorporate those of Ronald Hull Jnr. Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).

 

All financial statements are made up to 31 March 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

 

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Reporting period

The parent company and its subsidiary extended the accounting period in order to capture significant capital expenditure that had been incurred in the extended financial year. The financial statements have been prepared for a 14 month period ending 31 March 2023. Accordingly, the comparative amounts presented in the financial statements (including related notes) are not entirely comparable.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

1.6
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred.

RONALD HULL JNR. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 18 -
1.7
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.8
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Computer software
25% reducing balance
1.9
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
2% reducing balance
Leasehold improvements
2% straight line
Plant and equipment
25% reducing balance
Fixtures and fittings
25% reducing balance
Motor vehicles
25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.10
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is measured using the fair value model and stated at its fair value as the reporting end date.

RONALD HULL JNR. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 19 -
1.11
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.12
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.13
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.14
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months.

RONALD HULL JNR. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 20 -
1.15
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

RONALD HULL JNR. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 21 -
Basic financial liabilities

Basic financial liabilities, including creditors and loans from fellow group companies are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.16
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.17
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.18
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

RONALD HULL JNR. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 22 -
1.19
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.20
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

1.21
Government grants

Grants received in relation to the government’s Coronavirus Job Retention Scheme have been recognised within other operating income. The grant is accounted for on the accruals basis once the related payroll return has been submitted.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Tangible assets

The charge in respect of depreciation is derived after determining an estimate of an asset's expected useful life and the expected residual value at the end of its life. The useful lives and residual values of the company's assets may vary depending on several factors such as, technological innovation, maintenance programmes and future market conditions. They are determined by management at the time the asset is acquired and reviewed annually for appropriateness. 

3
Exceptional item
2023
2022
£
£
Income
Exceptional item - Other operating income
430,000
-

The exceptional income is a settlement sum received in relation to a customer dispute.

RONALD HULL JNR. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 23 -
4
Turnover and other revenue

An analysis of the group's turnover is as follows:

2023
2022
£
£
Turnover
Metal merchants and waste management
59,913,645
43,239,980
Demolition and excavation contractors
8,331,665
4,244,089
68,245,310
47,484,069
Other revenue
Interest income
241,988
3,490
Grants received - Coronavirus Job Retention Scheme
-
12,326
Turnover analysed by geographical market
2023
2022
£
£
United Kingdom
64,756,222
43,021,431
Rest of Europe
1,532,792
2,075,670
Rest of the World
1,956,296
2,386,968
68,245,310
47,484,069
5
Operating profit
2023
2022
£
£
Operating profit for the period is stated after charging/(crediting):
Government grants - Coronavirus Job Retention Scheme
-
(12,326)
Depreciation of owned tangible fixed assets
2,839,632
2,028,857
Depreciation of tangible fixed assets held under finance leases
-
72,602
Profit on disposal of tangible fixed assets
(310,862)
(175,270)
Amortisation of intangible assets
3,971
2,038
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor
£
£
For audit services
Audit of the financial statements of the group and company
26,250
19,033
Audit of the financial statements of the company's subsidiaries
12,450
8,008
38,700
27,041
RONALD HULL JNR. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
6
Auditor's remuneration
(Continued)
- 24 -
For other services
Taxation compliance services
6,500
5,850
Other taxation services
23,197
6,405
29,697
12,255
7
Employees

The average monthly number of persons (including directors) employed by the group and company during the period was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Production
142
122
110
102
Administration
31
30
27
26
Management
11
12
7
7
Total
184
164
144
135

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
7,541,595
6,128,144
5,174,266
4,500,171
Social security costs
794,709
660,194
559,365
496,884
Pension costs
364,703
553,215
326,770
525,121
8,701,007
7,341,553
6,060,401
5,522,176
8
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
760,617
1,073,688
Company pension contributions to defined contribution schemes
52,000
188,000
812,617
1,261,688

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2022 - 4).

RONALD HULL JNR. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
8
Directors' remuneration
(Continued)
- 25 -
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
394,844
303,389
Company pension contributions to defined contribution schemes
4,000
14,000
9
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
241,988
3,490
10
Interest payable and similar expenses
2023
2022
£
£
Interest on other loans
434,754
262,516
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
10,000
10,000
12
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
132,112
196,401
Adjustments in respect of prior periods
(23,528)
-
0
Total current tax
108,584
196,401
Deferred tax
Origination and reversal of timing differences
736,300
985,300
Total tax charge
844,884
1,181,701
RONALD HULL JNR. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
12
Taxation
(Continued)
- 26 -

The actual charge for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
6,199,322
5,469,958
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
1,177,871
1,039,292
Tax effect of expenses that are not deductible in determining taxable profit
9,353
3,146
Change in unrecognised deferred tax assets
(427)
(910)
Adjustments in respect of prior years
(23,528)
-
0
Permanent capital allowances in excess of depreciation
(245,613)
(114,934)
Research and development tax credit
(241,580)
(200,424)
Effect of change in deferred tax rates
176,814
456,328
Other adjustments
(8,006)
(797)
Tax expense for the period
844,884
1,181,701
13
Intangible fixed assets
Group
Goodwill
Computer software
Total
£
£
£
Cost
At 1 February 2022 and 31 March 2023
30,000
35,653
65,653
Amortisation and impairment
At 1 February 2022
1,500
34,039
35,539
Amortisation charged for the period
3,500
471
3,971
At 31 March 2023
5,000
34,510
39,510
Carrying amount
At 31 March 2023
25,000
1,143
26,143
At 31 January 2022
28,500
1,614
30,114
RONALD HULL JNR. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
13
Intangible fixed assets
(Continued)
- 27 -
Company
Goodwill
£
Cost
At 1 February 2022 and 31 March 2023
30,000
Amortisation and impairment
At 1 February 2022
1,500
Amortisation charged for the period
3,500
At 31 March 2023
5,000
Carrying amount
At 31 March 2023
25,000
At 31 January 2022
28,500
14
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 February 2022 and 31 March 2023
775,000
775,000

Investment property comprises land and buildings. The fair value of the investment property has been arrived at on the basis of a valuation carried out at 31 January 2013 by Burgess Commercial Chartered Surveyors, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

The directors performed a valuation of the investment property at 31 March 2023 and determined that there has been no material change to the market value of the property in the current year.

RONALD HULL JNR. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 28 -
15
Tangible fixed assets
Group
Freehold land and buildings
Leasehold improvements
Assets under construction
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 February 2022
9,181,016
355,035
1,109,226
22,378,003
205,162
3,830,436
37,058,878
Additions
-
0
-
0
537,912
3,795,713
17,768
826,541
5,177,934
Disposals
-
0
-
0
-
0
(1,881,620)
-
0
(818,579)
(2,700,199)
Transfers
1,623,238
-
0
(1,647,138)
23,900
-
0
-
0
-
0
At 31 March 2023
10,804,254
355,035
-
0
24,315,996
222,930
3,838,398
39,536,613
Depreciation and impairment
At 1 February 2022
876,453
123,781
-
0
14,380,901
188,526
2,079,806
17,649,467
Depreciation charged in the period
85,695
-
0
-
0
2,200,598
6,395
546,944
2,839,632
Eliminated in respect of disposals
-
0
-
0
-
0
(1,189,967)
-
0
(647,982)
(1,837,949)
At 31 March 2023
962,148
123,781
-
0
15,391,532
194,921
1,978,768
18,651,150
Carrying amount
At 31 March 2023
9,842,106
231,254
-
0
8,924,464
28,009
1,859,630
20,885,463
At 31 January 2022
8,304,563
231,254
1,109,226
7,997,102
16,636
1,750,630
19,409,411
RONALD HULL JNR. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
15
Tangible fixed assets
(Continued)
- 29 -
Company
Freehold land and buildings
Leasehold improvements
Assets under construction
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 February 2022
9,146,996
355,035
1,109,226
19,837,317
113,643
2,963,490
33,525,707
Additions
-
0
-
0
537,912
3,540,171
8,884
572,617
4,659,584
Disposals
-
0
-
0
-
0
(1,570,120)
-
0
(504,222)
(2,074,342)
Transfers
1,623,238
-
0
(1,647,138)
23,900
-
0
-
0
-
0
At 31 March 2023
10,770,234
355,035
-
0
21,831,268
122,527
3,031,885
36,110,949
Depreciation and impairment
At 1 February 2022
876,453
123,781
-
0
12,492,573
101,595
1,458,476
15,052,878
Depreciation charged in the period
85,695
-
0
-
0
1,979,601
5,052
470,546
2,540,894
Eliminated in respect of disposals
-
0
-
0
-
0
(919,855)
-
0
(408,138)
(1,327,993)
At 31 March 2023
962,148
123,781
-
0
13,552,319
106,647
1,520,884
16,265,779
Carrying amount
At 31 March 2023
9,808,086
231,254
-
0
8,278,949
15,880
1,511,001
19,845,170
At 31 January 2022
8,270,543
231,254
1,109,226
7,344,744
12,048
1,505,014
18,472,829
RONALD HULL JNR. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 30 -
16
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
17
-
-
70,179
70,179
Movements in fixed asset investments
Company
Shares in group undertakings
£
Cost or valuation
At 1 February 2022 and 31 March 2023
70,179
Carrying amount
At 31 March 2023
70,179
At 31 January 2022
70,179
17
Subsidiaries

Details of the company's subsidiaries at 31 March 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Arrowzone Limited
Mangham Works, Mangham Road Parkgate, Rotherham, S62 6EF
Dormant
Ordinary
100.00
0
Meadowhall Landfill Limited
Same as above
Dormant
Ordinary
100.00
0
RHJ Developments Limited
Same as above
Dormant
Ordinary
100.00
0
Ron Hull Demolition Limited
Same as above
Demolition and excavation contractors
Ordinary
100.00
0
RONALD HULL JNR. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 31 -
18
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
6,980,361
8,760,952
6,980,361
8,760,952
Work in progress
30,040
-
-
-
7,010,401
8,760,952
6,980,361
8,760,952
19
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,313,194
2,209,056
1,405,446
1,381,264
Amounts owed by group undertakings
-
-
-
1,467,888
Other debtors
2,850,524
4,039,903
2,419,868
4,015,167
Prepayments and accrued income
515,812
477,964
461,399
404,027
5,679,530
6,726,923
4,286,713
7,268,346
20
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
22
-
0
208,805
-
0
131,548
Other borrowings
21
6,088
6,088
6,088
6,088
Trade creditors
3,580,725
6,082,778
3,242,938
5,845,483
Amounts owed to group undertakings
-
0
-
0
313,867
192,961
Corporation tax payable
132,112
196,401
46,674
142,318
Other taxation and social security
443,548
439,553
201,202
109,617
Other creditors
6,213,093
6,543,539
6,205,079
6,533,938
Accruals and deferred income
744,169
1,369,654
205,528
776,318
11,119,735
14,846,818
10,221,376
13,738,271
21
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Other loans
6,088
6,088
6,088
6,088
Payable within one year
6,088
6,088
6,088
6,088
RONALD HULL JNR. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 32 -
22
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
-
0
208,805
-
0
131,548

All finance lease obligations have been repaid during the year.

23
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
2,163,500
1,425,400
Short term timing differences
(4,500)
(2,700)
Capital gains rolled forward
479,000
479,000
2,638,000
1,901,700
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
2,083,000
1,420,000
Short term timing differences
(4,000)
(2,000)
Capital gains rolled forward
479,000
479,000
2,558,000
1,897,000
Group
Company
2023
2023
Movements in the period:
£
£
Liability at 1 February 2022
1,901,700
1,897,000
Charge to profit or loss
736,300
661,000
Liability at 31 March 2023
2,638,000
2,558,000

The deferred tax liability set out above is expected to reverse and relates to accelerated capital allowances that are expected to mature within the same period.

RONALD HULL JNR. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 33 -
24
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
364,703
553,215

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

Accrued pension contributions at the year end in respect of defined contribution schemes amounted to £9,205 (2022: £10,169)

25
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
50,000
50,000
50,000
50,000
26
Related party transactions

The group entered into transactions with other business interests of Mr R Hull Jnr, a director. A summary of these transactions are set out below:

 

Ron Hull (t/a Fitzwilliam Arms)

 

During the year the group made sales of £7,594 (2022: £6,157) to the Fitzwilliam Arms and purchases of £8,317 (2022: £15,807). During the year there was a management charge of £60,000 (2022: £58,000) to the Fitzwilliam Arms. At the year end the balance owed from Fitzwilliam Arms was £60,758 (2022: £59,066) and is included in trade debtors. A balance of £100 (2022: £2,016) was owed to the Fitzwilliam Arms and is included in trade creditors at the year end.

 

Ron Hull & Sons Farm

 

During the year the group made sales of £924,118 (2022: £669,438) to Ron Hull & Sons Farm and purchases of £118,152 (2022: £100,000). During the year there was a management charge of £60,000 (2022: £58,000) to R Hull & Sons Farm. At the year end the balance owed from Ron Hull & Sons Farm was £133,746 (2022: £137,839) and is included in trade debtors. A balance of £10,000 (2020: £10,000) was also owed to Ron Hull & Sons Farm and is included in trade creditors at the year end.

 

Ron Hull Estates Limited

 

During the year the group made sales of £7,933 (2022: £3,088) to Ron Hull Estates Limited and purchases of £292 (2022: £370). At the year end the balance owed from Ron Hull Estates Limited was £2,350,000 (2022: £3,000,000) and is included in debtors.

 

RONALD HULL JNR. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 34 -
27
Cash generated from group operations
2023
2022
£
£
Profit for the period after tax
5,354,438
4,288,257
Adjustments for:
Taxation charged
844,884
1,181,701
Finance costs
434,754
262,516
Investment income
(241,988)
(3,490)
Gain on disposal of tangible fixed assets
(310,862)
(175,270)
Amortisation and impairment of intangible assets
3,971
2,038
Depreciation and impairment of tangible fixed assets
2,839,632
2,101,459
Movements in working capital:
Decrease/(increase) in stocks
1,750,551
(3,927,220)
Decrease in debtors
1,047,393
1,280,416
(Decrease)/increase in creditors
(3,453,989)
9,052,696
Cash generated from operations
8,268,784
14,063,103
28
Analysis of changes in net funds - group
1 February 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
13,500,617
3,679,518
17,180,135
Borrowings excluding overdrafts
(6,088)
-
(6,088)
Obligations under finance leases
(208,805)
208,805
-
13,285,724
3,888,323
17,174,047
29
Prior period adjustment

The prior period adjustment was to eliminate inter departmental recharges within the parent company profit and loss account. The restatement reduces sales by £1,780,944 and reduces costs by the same amount, therefore this is not a profit effecting journal.

 

 

The prior period adjustment does not give rise to any effect on equity as previously reported at group or company level.

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