Company Registration No. 11995069 (England and Wales)
HYGIENE UK HOLDINGS LTD
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
HYGIENE UK HOLDINGS LTD
COMPANY INFORMATION
Directors
Mr G Bir
Miss S K Thomas
Mr T A Yates
Ms H S Millership
Mr R Awoniyi
Secretary
Mr R Awoniyi
Company number
11995069
Registered office
8 Castle Road
Kings Norton Business Centre
Kings Norton
Birmingham
B30 3HZ
Auditor
Ormerod Rutter Limited
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
HYGIENE UK HOLDINGS LTD
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 34
HYGIENE UK HOLDINGS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2023
- 1 -

The directors present the strategic report for the year ended 31 May 2023.

Fair review of the business

The business continues to compete with the push by competitors, seeking to leverage their presence into the food cleaning sectors. To address these challenges, the group has continued to strengthen its business development activities, whilst continuing to seek innovative means of providing our services and remaining competitive.

 

The results for the group show pre-tax profit of £0.58 million (2022: £0.77 million) on a turnover of £14.00 million (2022: £13.57 million). The financial position of the group is considered by the directors to be satisfactory with the balance sheet showing net assets of £1.80 million (2022: £1.64 million).

Principal risks and uncertainties

In common with many companies of a similar size, succession of ownership and management is an important consideration. Actions have been taken in recent years to put in place systems for the longer term and its management and procedures have been strengthened. These are continually under review. This has the added benefit of enabling the company to cope with the demands of the industry sector and fully benefit from opportunities that may arise.

 

The commercial environment of the industry sector continues to be competitive but we are confident that we are able to maintain our performance in a competitive market. The increasing optimism in the food manufacturing sector is being reflected in the addition of assets, whether through the expansion of current facilities or the building of new ones. The impact on the economy and the food industry cannot be overemphasized and will not be fully appreciated for a few years. This will impact how our business plans for the future.

 

The group is exposed to normal business risks and uncertainties in its operations. These risks and uncertainties are considered normal and arise from competitors, price pressure, and the effect of the economy. The group manages these risks through close contact with its customers and the high standards delivered through a highly qualified and committed workforce. The group has implemented appropriate procedures to monitor and control the ongoing performance and achievement of internal objectives.

Key performance indicators

The group manages its operations through a number of measures, which include:

 

 

The directors do not believe further key indicators are necessary for an appropriate understanding of the performance and position of the business.

On behalf of the board

Mr R Awoniyi
Director
8 March 2024
HYGIENE UK HOLDINGS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2023
- 2 -

The directors present their annual report and financial statements for the year ended 31 May 2023.

Principal activities

The principal activity of the company was that of a holding company. The principal activities of the group were the supply of cleaning consumables and the provision of specialist cleaning services.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £303,074. The directors do not recommend payment of a further dividend.

Directors

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

Mr G Bir
Miss S K Thomas
Mr T A Yates
Ms H S Millership
Mr R Awoniyi
Financial risk management objectives and policies
Liquidity risk

The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.

Credit risk

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.

 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

 

There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.

HYGIENE UK HOLDINGS LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 3 -
Auditor

Ormerod Rutter Limited were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

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.

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
Mr R Awoniyi
Director
8 March 2024
HYGIENE UK HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HYGIENE UK HOLDINGS LTD
- 4 -
Opinion

We have audited the financial statements of Hygiene UK Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 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.

Qualified audit opinion for subsidiary undertaking in regards to opening balances

The audited financial statements of subsidiary company Lindsay Phillips Property Care Limited, which was acquired by the group on 14 March 2023, contains a qualified audit opinion. This is on the basis that the opening balances as at 1 February 2022 in the financial period to 31 May 2023 could not be audited and the financial statements for the financial year to 31 January 2022 were unaudited.

 

The period of trading of this subsidiary undertaking from the date of acquisition and balance sheet as at 31 May 2023 does not appear to be materially misstated. Therefore the qualification on the basis of opening balances does not impact on the consolidated group financial statements.

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.

HYGIENE UK HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HYGIENE UK HOLDINGS LTD
- 5 -

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:

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.

HYGIENE UK HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HYGIENE UK HOLDINGS LTD
- 6 -

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

To address the risk of fraud through management bias and override of 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:

 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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.

HYGIENE UK HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HYGIENE UK HOLDINGS LTD
- 7 -

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.

Colm McGrory FCA (Senior Statutory Auditor)
For and on behalf of Ormerod Rutter Limited
12 March 2024
Chartered Accountants
Statutory Auditor
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
HYGIENE UK HOLDINGS LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
13,998,554
13,568,247
Cost of sales
(1,329,101)
(1,404,012)
Gross profit
12,669,453
12,164,235
Administrative expenses
(12,073,798)
(11,396,453)
Other operating income
347
12,782
Operating profit
4
596,002
780,564
Interest receivable and similar income
8
2,498
54
Interest payable and similar expenses
9
(14,396)
(6,487)
Profit before taxation
584,104
774,131
Tax on profit
10
(120,831)
(145,874)
Profit for the financial year
26
463,273
628,257
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
HYGIENE UK HOLDINGS LTD
GROUP BALANCE SHEET
AS AT
31 MAY 2023
31 May 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
666,009
-
0
Tangible assets
13
386,094
305,180
1,052,103
305,180
Current assets
Stocks
17
170,733
136,346
Debtors
18
3,834,648
3,491,411
Cash at bank and in hand
354,101
360,821
4,359,482
3,988,578
Creditors: amounts falling due within one year
19
(3,475,681)
(2,568,505)
Net current assets
883,801
1,420,073
Total assets less current liabilities
1,935,904
1,725,253
Creditors: amounts falling due after more than one year
20
(102,344)
(78,088)
Provisions for liabilities
Deferred tax liability
23
30,190
3,994
(30,190)
(3,994)
Net assets
1,803,370
1,643,171
Capital and reserves
Called up share capital
25
100
100
Profit and loss reserves
26
1,803,270
1,643,071
Total equity
1,803,370
1,643,171

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 8 March 2024 and are signed on its behalf by:
08 March 2024
Mr R Awoniyi
Director
Company registration number 11995069 (England and Wales)
HYGIENE UK HOLDINGS LTD
COMPANY BALANCE SHEET
AS AT 31 MAY 2023
31 May 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
14
2,500,000
2,500,000
Current assets
-
-
Creditors: amounts falling due within one year
19
(2,145,941)
(2,192,867)
Net current liabilities
(2,145,941)
(2,192,867)
Net assets
354,059
307,133
Capital and reserves
Called up share capital
25
100
100
Profit and loss reserves
26
353,959
307,033
Total equity
354,059
307,133

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 £350,000 (2022 - £350,000 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true

The financial statements were approved by the board of directors and authorised for issue on 8 March 2024 and are signed on its behalf by:
08 March 2024
Mr R Awoniyi
Director
Company registration number 11995069 (England and Wales)
HYGIENE UK HOLDINGS LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 June 2021
100
1,285,888
1,285,988
Year ended 31 May 2022:
Profit and total comprehensive income
-
628,257
628,257
Dividends
11
-
(271,074)
(271,074)
Balance at 31 May 2022
100
1,643,071
1,643,171
Year ended 31 May 2023:
Profit and total comprehensive income
-
463,273
463,273
Dividends
11
-
(303,074)
(303,074)
Balance at 31 May 2023
100
1,803,270
1,803,370
HYGIENE UK HOLDINGS LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 June 2021
100
228,107
228,207
Year ended 31 May 2022:
Profit and total comprehensive income for the year
-
350,000
350,000
Dividends
11
-
(271,074)
(271,074)
Balance at 31 May 2022
100
307,033
307,133
Year ended 31 May 2023:
Profit and total comprehensive income
-
350,000
350,000
Dividends
11
-
(303,074)
(303,074)
Balance at 31 May 2023
100
353,959
354,059
HYGIENE UK HOLDINGS LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
31
580,417
550,703
Interest paid
(14,396)
(6,487)
Income taxes paid
(109,247)
(138,614)
Net cash inflow from operating activities
456,774
405,602
Investing activities
Purchase of business
(769,371)
-
Purchase of tangible fixed assets
(33,738)
(49,012)
Proceeds from disposal of tangible fixed assets
724
5,000
Interest received
2,498
54
Net cash used in investing activities
(799,887)
(43,958)
Financing activities
Repayment of borrowings
(64,235)
-
Repayment of bank loans
31,567
-
Payment of finance leases obligations
(111,093)
(96,749)
Dividends paid to equity shareholders
(302,074)
(271,074)
Net cash used in financing activities
(445,835)
(367,823)
Net decrease in cash and cash equivalents
(788,948)
(6,179)
Cash and cash equivalents at beginning of year
360,821
367,000
Cash and cash equivalents at end of year
(428,127)
360,821
Relating to:
Cash at bank and in hand
354,101
360,821
Bank overdrafts included in creditors payable within one year
(782,228)
-
HYGIENE UK HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
- 14 -
1
Accounting policies
Company information

Hygiene UK Holdings Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .

 

The group consists of Hygiene UK Holdings Ltd and all of its subsidiaries.

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 the revaluation of freehold properties and to include investment properties and certain financial instruments 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

The consolidated group financial statements consist of the financial statements of the parent company Hygiene UK Holdings Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 May 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.

 

The consolidated figures for 2023 contain trading results of Lindsay Phillips Property Care Limited from the date of acquisition 14 March 2023 to 31 May 2023 and the balance sheet at the year end.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

HYGIENE UK HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 15 -

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. In the group financial statements, joint ventures are accounted for using the equity method.

 

Employee Benefit Trust

Hygiene Group Limited, a subsidiary undertaking, has established an employee benefit trust (‘EBT’) and is the sponsoring entity. Notwithstanding the legal duties of the trustees, the directors consider that Hygiene Group Limited has ‘de facto’ control of the EBT.

 

The assets and liabilities of the EBT are accounted for as assets and liabilities of Hygiene Group Limited and included in these consolidated financial statements as appropriate.

 

Hygiene Group Limited's equity instruments held by the EBT are accounted for as if they were held by Hygiene Group Limited, with no non-controlling interests arising on consolidation.

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
Turnover

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and that the turnover can be reliably measured.

 

Revenue 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, settlement discounts and volume rebates.

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.

Rendering of goods and services

 

Revenue from a contract to provide services and goods is recognised in the period in which the services and/or goods are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

HYGIENE UK HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 16 -
1.5
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 deemed to be 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.

1.6
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:

Leasehold improvements
20% straight line
Plant and equipment
25% - 33% straight line
Fixtures and fittings
25% - 33% straight line
Motor vehicles
25% - 33% straight line

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.

1.7
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.

HYGIENE UK HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 17 -
1.8
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.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.

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.

1.10
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 or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

HYGIENE UK HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 18 -
1.11
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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

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

 

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

 

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.

HYGIENE UK HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 19 -
Basic financial liabilities

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

 

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

 

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

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.12
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.

HYGIENE UK HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 20 -
1.13
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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. 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.

1.14
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.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

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

1.16
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.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

HYGIENE UK HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 21 -
1.17
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.18
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.19

Interest income

Interest income is recognised in the group statement of comprehensive income using the effective interest method.

1.20

Finance costs

Finance costs are charged to the profit and loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount.

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.

 

The main area of judgement for the group relates to depreciation rates on fixed assets, estimating their useful lives and residual balances.

HYGIENE UK HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 22 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sales
13,527,239
13,054,588
Rechargeable sales
471,315
513,659
13,998,554
13,568,247
2023
2022
£
£
Other revenue
Interest income
2,498
54
Grants received
347
12,782

All turnover arose within the United Kingdom.

 

Turnover from the provision of services was £12,585,904 (2022: £11,656,682) and from the sale of goods was £1,412,650 (2022: £1,911,565).

Grants received relates to amounts received under the government's Coronavirus Job Retention Scheme.

4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
(347)
(12,782)
Depreciation of owned tangible fixed assets
43,073
49,058
Depreciation of tangible fixed assets held under finance leases
75,311
60,586
Profit on disposal of tangible fixed assets
(31,663)
(1,580)
Operating lease charges
111,112
76,379
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
8,600
7,920
Audit of the financial statements of the company's subsidiaries
21,300
15,245
29,900
23,165
For other services
Taxation compliance services
2,650
3,235
HYGIENE UK HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 23 -
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Cleaning service staff
548
466
-
-
Management and administration
11
12
-
-
Directors
5
5
-
-
Total
564
483
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
9,179,944
8,904,317
-
0
-
0
Social security costs
686,376
651,862
-
-
Pension costs
225,398
219,497
-
0
-
0
10,091,718
9,775,676
-
0
-
0
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
146,587
97,075
Company pension contributions to defined contribution schemes
36,072
36,072
182,659
133,147

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2022: 5).

8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
2,498
54
HYGIENE UK HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 24 -
9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
4,092
-
Interest on invoice finance arrangements
2,438
-
0
Interest on finance leases and hire purchase contracts
7,866
6,487
Total finance costs
14,396
6,487
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
105,236
143,130
Deferred tax
Origination and reversal of timing differences
15,595
2,744
Total tax charge
120,831
145,874

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

2023
2022
£
£
Profit before taxation
584,104
774,131
Expected tax charge based on the standard rate of corporation tax in the UK of 20.00% (2022: 19.00%)
116,821
147,085
Tax effect of expenses that are not deductible in determining taxable profit
7,297
475
Effect of change in corporation tax rate
(450)
-
Permanent capital allowances in excess of depreciation
3,490
(2,855)
Depreciation in excess of capital allowances
-
0
1,169
Other timing differences
(6,327)
-
0
Taxation charge
120,831
145,874
HYGIENE UK HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 25 -
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
303,074
271,074
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 June 2022
-
0
Additions
666,009
At 31 May 2023
666,009
Amortisation and impairment
At 1 June 2022 and 31 May 2023
-
0
Carrying amount
At 31 May 2023
666,009
At 31 May 2022
-
0
The company had no intangible fixed assets at 31 May 2023 or 31 May 2022.
HYGIENE UK HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 26 -
13
Tangible fixed assets
Group
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 June 2022
-
0
102,895
149,053
264,567
516,515
Additions
-
0
66,931
22,603
78,825
168,359
Disposals
-
0
(46,242)
(1,652)
(95,916)
(143,810)
Transfers
14,708
45,444
19,956
53,421
133,529
At 31 May 2023
14,708
169,028
189,960
300,897
674,593
Depreciation and impairment
At 1 June 2022
-
0
64,061
52,896
94,378
211,335
Depreciation charged in the year
613
29,200
40,149
48,422
118,384
Eliminated in respect of disposals
-
0
(46,242)
(1,652)
(71,554)
(119,448)
Transfers
4,044
41,156
13,442
19,586
78,228
At 31 May 2023
4,657
88,175
104,835
90,832
288,499
Carrying amount
At 31 May 2023
10,051
80,853
85,125
210,065
386,094
At 31 May 2022
-
0
38,834
96,157
170,189
305,180
The company had no tangible fixed assets at 31 May 2023 or 31 May 2022.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Plant and equipment
38,197
91,845
-
0
-
0
Motor vehicles
176,166
170,190
-
0
-
0
214,363
262,035
-
-
HYGIENE UK HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 27 -
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
2,500,000
2,500,000
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 June 2022 and 31 May 2023
2,500,000
Carrying amount
At 31 May 2023
2,500,000
At 31 May 2022
2,500,000
15
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Hygiene Group Limited
8 Castle Road, Kings Norton, Birmingham
Ordinary
100.00
-
Hygiene Stores (UK) Limited
8 Castle Road, Kings Norton, Birmingham
Ordinary
-
100.00
Lindsay Phillips Property Care Limited
8 Castle Road, Kings Norton, Birmingham
Ordinary
-
100.00

On 14 March 2023 Hygiene Group Limited acquired 100% of the ordinary share capital of Lindsay Phillips Property Care Limited.

16
Financial instruments
Group
Company
2023
2022
2023
2022
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
3,798,668
3,432,356
n/a
n/a
Carrying amount of financial liabilities
Measured at amortised cost
2,824,858
2,006,556
n/a
n/a

As permitted by the reduced disclosure framework within FRS 102, the company has taken advantage of the exemption from disclosing the carrying amount of certain classes of financial instruments, denoted by 'n/a' above.

HYGIENE UK HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 28 -
17
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
15,555
-
-
-
Finished goods and goods for resale
155,178
136,346
-
0
-
0
170,733
136,346
-
-
18
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,662,642
3,147,427
-
0
-
0
Other debtors
69,142
63,099
-
0
-
0
Prepayments and accrued income
102,864
280,885
-
0
-
0
3,834,648
3,491,411
-
-
19
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
21
786,734
-
0
-
0
-
0
Obligations under finance leases
22
82,074
111,537
-
0
-
0
Trade creditors
302,038
257,778
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
2,128,602
2,176,528
Corporation tax payable
139,611
143,622
-
0
-
0
Other taxation and social security
613,556
496,415
-
-
Dividends payable
17,339
16,339
17,339
16,339
Other creditors
764,159
672,358
-
0
-
0
Accruals and deferred income
770,170
870,456
-
0
-
0
3,475,681
2,568,505
2,145,941
2,192,867
HYGIENE UK HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 29 -
20
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
21
27,061
-
0
-
0
-
0
Obligations under finance leases
22
75,283
78,088
-
0
-
0
102,344
78,088
-
-
21
Secured debts
Bank loans
31,567
-
0
-
0
-
0
Bank overdrafts
782,228
-
0
-
0
-
0
813,795
-
-
-
Payable within one year
786,734
-
0
-
0
-
0
Payable after one year
27,061
-
0
-
0
-
0

Hire purchase contracts are secured against the assets to which they relate.

 

Factoring account balances are secured by way of a first legal mortgage over the company's land and buildings, a first fixed charge over the company's fixed assets, and a first floating charge over all of the company's property and assets.

 

At the period end, amounts owed by the group under factoring arrangements totalled £nil (2022: £nil) and are included within other creditors.

 

Amounts owed to group undertakings are unsecured, repayable within one year and do not bear interest.

22
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
82,074
111,537
-
0
-
0
In two to five years
75,283
78,088
-
0
-
0
157,357
189,625
-
-

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 2.5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

HYGIENE UK HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 30 -
23
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
29,079
12,304
Other short term timing differences
1,111
(8,310)
30,190
3,994
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 June 2022
3,994
-
Charge to profit or loss
26,196
-
Liability at 31 May 2023
30,190
-
HYGIENE UK HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 31 -
24
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
225,398
219,497

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.

At the year end, amounts owed in respect of defined contribution pensions schemes totalled £161,416 (2022: £92,597).

25
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of £1 each
33
33
33
33
B Ordinary shares of £1 each
11
11
11
11
C Ordinary shares of £1 each
17
17
17
17
D Ordinary shares of £1 each
22
22
22
22
E Ordinary shares of £1 each
17
17
17
17
100
100
100
100

Rights attaching to classes of shares

 

The A, B, C, D and E Ordinary shares rank pari passu in all respects but constitute separate classes of shares. Dividends may be declared on such classes of shares as determined by the directors.

 

Each A, B, C, D and E share:

26
Reserves
Profit and loss reserves

Profit and loss reserves represent equity attributable to the owners of Hygiene UK Holdings Limited arising from:

HYGIENE UK HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 32 -
27
Acquisition of a business

On 14 March 2023 the group acquired 100 percent of the issued ordinary share capital of Lindsay Phillips Property Care Limited.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, plant and equipment
55,796
-
55,796
Inventories
15,578
-
15,578
Trade and other receivables
247,638
-
247,638
Cash and cash equivalents
38,129
-
38,129
Borrowings
(64,235)
-
(64,235)
Trade and other payables
(140,813)
-
(140,813)
Deferred tax
(10,601)
-
(10,601)
Total identifiable net assets
141,492
-
141,492
Goodwill
666,008
Total consideration
807,500
The consideration was satisfied by:
£
Cash
807,500
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
397,173
Profit after tax
12,148

Goodwill

 

The goodwill of £666,008 arising on the acquisition of business by Hygiene Group Limited is attributable to the anticipated profitability from the company's services being used in new markets and the future operating synergies from the combination of the business.

 

The goodwill on acquisition of Lindsay Phillips Property Care Limited has been recognised in the consolidated financial statements from the date of acquisition and will be amortised on a straight line basis over 10 years from 1 June 2023.

 

 

HYGIENE UK HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 33 -
28
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
47,781
88,226
-
-
Between two and five years
90,313
134,167
-
-
138,094
222,393
-
-
29
Directors' transactions

£303,074 (2022: £271,074 dividends were paid to directors, with £17,339 owed to directors at the year end, included within creditors: amounts falling due within one year (2022: £16,339).

30
Controlling party

In the opinion of the directors, there is no ultimate controlling party.

31
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
463,272
628,257
Adjustments for:
Taxation charged
120,831
145,874
Finance costs
14,396
6,487
Investment income
(2,498)
(54)
Gain on disposal of tangible fixed assets
(31,663)
(1,580)
Depreciation and impairment of tangible fixed assets
118,384
109,644
Movements in working capital:
(Increase)/decrease in stocks
(18,809)
12,047
(Increase)/decrease in debtors
(95,599)
600,493
Increase/(decrease) in creditors
12,103
(950,465)
Cash generated from operations
580,417
550,703
HYGIENE UK HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 34 -
32
Analysis of changes in net funds/(debt) - group
1 June 2022
Cash flows
New finance leases
31 May 2023
£
£
£
£
Cash at bank and in hand
360,821
(6,720)
-
354,101
Bank overdrafts
-
0
(782,228)
-
(782,228)
360,821
(788,948)
-
(428,127)
Borrowings excluding overdrafts
-
(31,567)
-
(31,567)
Obligations under finance leases
(189,625)
111,093
(78,825)
(157,357)
171,196
(709,422)
(78,825)
(617,051)
2023-05-312022-06-01falseCCH SoftwareCCH Accounts Production 2023.300Mr G BirMiss S K ThomasMr T A YatesMs H S MillershipMr R AwoniyiMr R Awoniyifalse119950692022-06-012023-05-3111995069bus:Director12022-06-012023-05-3111995069bus:Director22022-06-012023-05-3111995069bus:Director32022-06-012023-05-3111995069bus:Director42022-06-012023-05-3111995069bus:CompanySecretaryDirector12022-06-012023-05-3111995069bus:CompanySecretary12022-06-012023-05-3111995069bus:Director52022-06-012023-05-3111995069bus:RegisteredOffice2022-06-012023-05-3111995069bus:Consolidated2023-05-31119950692023-05-3111995069bus:Consolidated2022-06-012023-05-3111995069bus:Consolidated2021-06-012022-05-31119950692021-06-012022-05-3111995069core:Goodwillbus:Consolidated2023-05-3111995069core:Goodwillbus:Consolidated2022-05-3111995069bus:Consolidated2022-05-3111995069core:LeaseholdImprovementsbus:Consolidated2023-05-3111995069core:PlantMachinerybus:Consolidated2023-05-3111995069core:FurnitureFittingsbus:Consolidated2023-05-3111995069core:MotorVehiclesbus:Consolidated2023-05-3111995069core:LeaseholdImprovementsbus:Consolidated2022-05-3111995069core:PlantMachinerybus:Consolidated2022-05-3111995069core:FurnitureFittingsbus:Consolidated2022-05-3111995069core:MotorVehiclesbus:Consolidated2022-05-31119950692022-05-3111995069core:ShareCapitalbus:Consolidated2023-05-3111995069core:ShareCapitalbus:Consolidated2022-05-3111995069core:ShareCapital2023-05-3111995069core:ShareCapital2022-05-3111995069core:RetainedEarningsAccumulatedLosses2023-05-3111995069core:ShareCapitalbus:Consolidated2021-05-3111995069core:RetainedEarningsAccumulatedLossesbus:Consolidated2021-05-3111995069core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-05-3111995069core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-05-3111995069core:ShareCapital2021-05-3111995069core:RetainedEarningsAccumulatedLosses2021-05-3111995069core:RetainedEarningsAccumulatedLosses2022-05-3111995069bus:Consolidated2021-05-3111995069core:Goodwill2022-06-012023-05-3111995069core:LeaseholdImprovements2022-06-012023-05-3111995069core:PlantMachinery2022-06-012023-05-3111995069core:FurnitureFittings2022-06-012023-05-3111995069core:MotorVehicles2022-06-012023-05-3111995069core:UKTaxbus:Consolidated2022-06-012023-05-3111995069core:UKTaxbus:Consolidated2021-06-012022-05-3111995069bus:Consolidated12022-06-012023-05-3111995069bus:Consolidated12021-06-012022-05-3111995069bus:Consolidated22022-06-012023-05-3111995069bus:Consolidated22021-06-012022-05-3111995069core:Goodwillbus:Consolidated2022-05-3111995069core:Goodwillcore:ExternallyAcquiredIntangibleAssetsbus:Consolidated2022-06-012023-05-3111995069core:LeaseholdImprovementsbus:Consolidated2022-05-3111995069core:PlantMachinerybus:Consolidated2022-05-3111995069core:FurnitureFittingsbus:Consolidated2022-05-3111995069core:MotorVehiclesbus:Consolidated2022-05-3111995069bus:Consolidated2022-05-3111995069core:LeaseholdImprovementsbus:Consolidated2022-06-012023-05-3111995069core:PlantMachinerybus:Consolidated2022-06-012023-05-3111995069core:FurnitureFittingsbus:Consolidated2022-06-012023-05-3111995069core:MotorVehiclesbus:Consolidated2022-06-012023-05-3111995069core:PlantMachinery2023-05-3111995069core:PlantMachinery2022-05-3111995069core:MotorVehicles2023-05-3111995069core:MotorVehicles2022-05-3111995069core:CurrentFinancialInstruments2023-05-3111995069core:CurrentFinancialInstruments2022-05-3111995069core:CurrentFinancialInstrumentsbus:Consolidated2023-05-3111995069core:CurrentFinancialInstrumentsbus:Consolidated2022-05-3111995069core:WithinOneYearbus:Consolidated2023-05-3111995069core:WithinOneYearbus:Consolidated2022-05-3111995069core:CurrentFinancialInstrumentscore:WithinOneYear2023-05-3111995069core:CurrentFinancialInstrumentscore:WithinOneYear2022-05-3111995069core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2023-05-3111995069core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2022-05-3111995069core:Non-currentFinancialInstrumentscore:AfterOneYear2023-05-3111995069core:Non-currentFinancialInstrumentscore:AfterOneYear2022-05-3111995069core:Non-currentFinancialInstrumentsbus:Consolidated2023-05-3111995069core:Non-currentFinancialInstrumentsbus:Consolidated2022-05-3111995069core:Non-currentFinancialInstruments2023-05-3111995069core:Non-currentFinancialInstruments2022-05-3111995069core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-05-3111995069core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2022-05-3111995069core:WithinOneYear2023-05-3111995069core:WithinOneYear2022-05-3111995069core:BetweenTwoFiveYearsbus:Consolidated2023-05-3111995069core:BetweenTwoFiveYearsbus:Consolidated2022-05-3111995069core:BetweenTwoFiveYears2023-05-3111995069core:BetweenTwoFiveYears2022-05-3111995069bus:PrivateLimitedCompanyLtd2022-06-012023-05-3111995069bus:FRS1022022-06-012023-05-3111995069bus:Audited2022-06-012023-05-3111995069bus:ConsolidatedGroupCompanyAccounts2022-06-012023-05-3111995069bus:FullAccounts2022-06-012023-05-31xbrli:purexbrli:sharesiso4217:GBP