Company registration number SC362322 (Scotland)
HFD GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
HFD GROUP LIMITED
COMPANY INFORMATION
Directors
Mr T D Anderson
Miss D J Hill
Ms K Hill
Mrs R Hill
Mr W K Hill
Mr W D Hill
Mr S Lewis
Mrs L D McKenzie
Mrs K Ovenden
Mr D Quinn
Mr S Teape
Mrs T Lewis
Company number
SC362322
Registered office
177 Bothwell Street
Glasgow
G2 7ER
Auditor
Johnston Carmichael LLP
227 West George Street
Glasgow
G2 2ND
HFD GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 10
Profit and loss account
11
Group statement of comprehensive income
12
Group balance sheet
13
Company balance sheet
14
Group statement of changes in equity
15
Company statement of changes in equity
16
Group statement of cash flows
17
Notes to the financial statements
18 - 45
HFD GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 1 -

The directors present the strategic report for the year ended 30 June 2023.

Review of the business

The company provides central administration functions and strategic direction to a trading group whose principal activities are the provision of property, renewables and technology services. The operating results of subsidiary companies which underpin the value in the company continue to be deemed satisfactory by the board.

 

Group turnover in the period amounted to £32,807,000 (2022- £41,477,000). At the year end the group had shareholders' funds of £105,845,000 (2022- £97,651,000).

 

Property

As a result of the divisions long-term reinvestment strategy the property development group continues to trade profitably with the realisation of developments increasing gross profits during the year. Profitability is expected to continue into the next financial year as the Group moves into a new phase of development activity following the success of the 177 Bothwell Street development.

 

Construction division turnover has continued to decrease following prior year completion of the division's new build commercial property project, the later stages of which has had its challenges impacting on the construction team's ability to progress onto new projects. Despite this, the latter half of the financial year has focused on fitout and refurbishment projects in line with the board and wider HFD planned strategy. Overall, the directors are satisfied with the performance of the division in the period given the quality of service delivered and the focus on upcoming projects.

 

The property services division continues to show increased operating profit primarily through growth of its services into the city centre. As part of HFD wider strategic review the operations of the serviced office division post year end have demerged from the group, however the property services division will continue to operate the commercial properties on behalf of the landlords.

 

Technology

The technology division continues to show significant growth in its customer base resulting in continued turnover growth. HFD continues to invest in the division's Tier III co-location data centre facility and has now opened a second city centre facility.

 

As a result of the division's continued success in delivering significant cost savings to its customers via its co-location services, coupled with the significant increase in demand for data centre services, the directors anticipate significant continued growth into the next financial year and beyond.

 

The directors are confident the future outlook of the group remains positive and that the group has the resilience to navigate any further headwinds caused by the uncertain economic outlook.

 

Principal risks and uncertainties

The group finances its operations through a mixture of retained profits, secure bank deposits and bank loans.

 

The objectives are to:

 

The principal risks impacting the group are primarily the strength of customer relationships and the risk from competitors on pricing. The economic outlook can have an impact on the level of activity of commercial developments and demand for the group's services.

HFD GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 2 -
Development and performance

The directors expect the level of activity in the next financial period to evolve satisfactorily given the new contracts secured across all group divisions.

Key performance indicators

The directors use several indicators to monitor and improve the position of the business. The directors consider the financial key performance indicators of the group to be profitability, cashflow and return on capital employed. Non-financial key performance indicators include customer satisfaction levels.

 

 

KPI

2023

2022

Gross Profit Margin

61%

46%

Operating Profit Margin

29%

18%

Cash position

£19,961,000

£6,128,000

Return on Capital Employed

9.1%

7.5%

 

 

Section 172 statement

As directors of the company, we have and continue to act in a way that we consider, in good faith, to be most likely to promote the continuing success of the company and wider group for the benefit of its members, and in doing so had regard, amongst other matters, to:

 

 

The following are some examples as to how we have had regard to the matters set out within sections 172(1)(a)-(f) when discharging our section 172 duties:

 

Our key strategic objective remains to build a sustainable business, for the benefit of current and future generations, whether that is in the form of members, employees, customers, suppliers, the community and environment. For this to be achieved, our management of the group involves us taking both decisions for the present and future benefit of the business. We work within the business on a daily basis so key internal and external relationships are maintained directly and employees, suppliers and customers have appropriate access to us. We also ensure there is a wider understanding of the group's key strategic objectives, through distilling the key messages through our management teams within the business.

 

In considering our fulfilment of Section 172 obligations, the Board have identified our key stakeholders as being our employees and colleagues, our customers and suppliers and the communities in which we operate.

 

Material issues for our stakeholder groups are presented on the following page along with a summary of how these were considered in Board discussions and decision-making and engagement throughout the year.

 

 

 

HFD GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 3 -

Stakeholders

Material Issues

Engagement

Employees and Colleagues

  • Ensure our employees feel engaged, working for a company they can be proud of

  • Working environment, health and safety, training and inclusion

  • HR Team well bedded in now and is significantly improving employee engagement.

  • HFD have a flat organization structure ensuring that all staff have access to senior management.

  • HFD have launched and defined group mission and values.

Customers

  • Provision of high quality, professional service in all aspect of the Groups diverse activities. The Group also aims to offer an all-inclusive service.

  • All customers have full access to our dedicated management team who strive to deliver best quality service

  • All management teams are experts in their fields and have been carefully selected to fit with HFD Group delivery standards

Suppliers and Subcontractors

  • Commitment to integrity and honesty, and conducting business in a socially responsible and sustainable way

  • Subcontractors work closely with HFD management teams to ensure a smooth delivery of service

  • We encourage a collaborative approach to problem solving

  • HFD encourage a collaborative approach with suppliers and subcontractors to benefit the communities in which HFD operates.

Communities

  • Leaving a positive impact in the communities in which we work

  • Minimising the environmental impact of our activities in the local area

 

  • HFD work directly with the HFD Charitable Foundation which is dedicated to benefit local causes in the Glasgow and the wider Lanarkshire area where the majority of the Groups business is based

  • HFD have committed to several significant capital investments to further increase the energy efficiency of its commercial property and datacenter portfolio

  • HFD are proud founding members of the UK Green Building Council network in Scotland

On behalf of the board

Mr W D Hill
Director
4 April 2024
HFD GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 4 -

The directors present their annual report and financial statements for the year ended 30 June 2023.

Principal activities

The principal activity of the company is to provide central administration functions and strategic direction to a trading group whose principal activities are the provision of property, renewables and technology services.

Results and dividends

The results for the year are set out on page 11.

No ordinary dividends were paid. 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 T D Anderson
Miss D J Hill
Ms K Hill
Mrs R Hill
Mr W K Hill
Mr W D Hill
Mr S Lewis
Mrs L D McKenzie
Mrs K Ovenden
Mr D Quinn
Mr S Teape
Mrs T Lewis
Post reporting date events

The board conducted a strategic review of its operational structure. On 4th July 2023 the Group undertook a strategic restructure which involved the shareholders of the company forming a new parent company, HFD Group Holdings Limited, by way of a share for share exchange.

 

In addition, the company transferred its shareholding in HFD Duart House Limited, HFD International House Limited, HFD Offices Limited, HFD Phoenix House Limited and HFD Willow House Limited to HFD Group Holdings Limited which were subsequently demerged from the Group by way of a capital reduction demerger. The ultimate controlling ownership of all the companies is unchanged following the restructure.

Auditor

Johnston Carmichael LLP were appointed as auditor to the company during the period and are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

Although the group meets the threshold for energy and carbon reporting, there are no subsidiary companies within the group that meet the requirements at an individual company level. The parent company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

HFD GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 5 -
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 W D Hill
Director
4 April 2024
HFD GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2023
- 6 -

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.

HFD GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HFD GROUP LIMITED
- 7 -
Opinion

We have audited the financial statements of HFD Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2023 which comprise the group profit and loss account, 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:

HFD GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HFD GROUP 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 as set out on Page 5, 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.

 

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.

HFD GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HFD GROUP LIMITED
- 9 -
Extent the audit was considered capable of detecting irregularities, including fraud

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 misstatement in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

 

We assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations by considering their experience, past performance and support available.

 

All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

 

We obtained an understanding of the legal and regulatory frameworks that are applicable to the group and the parent company and the sector in which they operate, focusing on those provisions that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include:

 

 

We gained an understanding of how the group and the parent company are complying with these laws and regulations by making enquiries of management and those charged with governance. We corroborated these enquiries through our review of relevant correspondence with regulatory bodies and board meeting minutes.

 

We assessed the susceptibility of the group's financial statements to material misstatement, including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management and those charged with governance oversee the implementation and operation of controls. We identified a heightened fraud risk in relation to:

 

In addition to the above, the following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:

 

Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that 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 intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

HFD GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HFD GROUP LIMITED
- 10 -

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.

James Hamilton (Senior Statutory Auditor)
For and on behalf of Johnston Carmichael LLP
4 April 2024
Chartered Accountants
Statutory Auditor
227 West George Street
Glasgow
G2 2ND
HFD GROUP LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2023
- 11 -
Year
Period
ended
ended
30 June
30 June
2023
2022
Notes
£000
£000
Turnover
3
32,807
41,447
Cost of sales
(12,895)
(22,470)
Gross profit
19,912
18,977
Administrative expenses
(8,980)
(9,190)
Other operating income
496
453
Stock impairment
4
(1,776)
(2,960)
Operating profit
5
9,652
7,280
Interest receivable and similar income
9
1,581
1,643
Interest payable and similar expenses
10
(1,334)
(1,187)
Fair value gains and losses on investment properties
14
-
0
(1,045)
Profit before taxation
9,899
6,691
Tax on profit
11
(2,317)
(1,291)
Profit for the financial year
28
7,582
5,400
Profit for the financial year is all attributable to the owners of the parent company.
HFD GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
- 12 -
Year
Period
ended
ended
30 June
30 June
2023
2022
£000
£000
Profit for the year
7,582
5,400
Other comprehensive income
Cash flow hedges gain arising in the year
944
1,405
Tax relating to other comprehensive income
(236)
(351)
Other comprehensive income for the year
708
1,054
Total comprehensive income for the year
8,290
6,454
Total comprehensive income for the year is all attributable to the owners of the parent company.
HFD GROUP LIMITED
GROUP BALANCE SHEET
AS AT
30 JUNE 2023
30 June 2023
- 13 -
2023
2022
Notes
£000
£000
£000
£000
Fixed assets
Intangible assets
12
16
-
0
Tangible assets
13
47,424
42,257
Investment property
14
21,496
20,615
68,936
62,872
Current assets
Stocks
18
4,516
3,576
Debtors
19
85,657
92,787
Cash at bank and in hand
19,961
6,128
110,134
102,491
Creditors: amounts falling due within one year
20
(33,458)
(19,055)
Net current assets
76,676
83,436
Total assets less current liabilities
145,612
146,308
Creditors: amounts falling due after more than one year
21
(29,269)
(38,709)
Provisions for liabilities
Deferred tax liability
24
10,498
9,948
(10,498)
(9,948)
Net assets
105,845
97,651
Capital and reserves
Called up share capital
27
6,623
6,623
Revaluation reserve
28
26,430
26,430
Hedging reserve
28
1,353
741
Profit and loss reserves
28
71,439
63,857
Total equity
105,845
97,651
The financial statements were approved by the board of directors and authorised for issue on 4 April 2024 and are signed on its behalf by:
04 April 2024
Mr W D Hill
Director
Company registration number SC362322 (Scotland)
HFD GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2023
30 June 2023
- 14 -
2023
2022
Notes
£000
£000
£000
£000
Fixed assets
Tangible assets
13
421
43
Investments
15
57,650
57,650
58,071
57,693
Current assets
Debtors
19
41,150
41,116
Cash at bank and in hand
12,148
5
53,298
41,121
Creditors: amounts falling due within one year
20
(100,803)
(86,642)
Net current liabilities
(47,505)
(45,521)
Total assets less current liabilities
10,566
12,172
Creditors: amounts falling due after more than one year
21
(19,526)
(20,866)
Provisions for liabilities
Deferred tax liability
24
54
-
0
(54)
-
Net liabilities
(9,014)
(8,694)
Capital and reserves
Called up share capital
27
6,623
6,623
Profit and loss reserves
28
(15,634)
(15,317)
Total equity
(9,011)
(8,694)

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £317,312 (2022 - £172,954 loss).

The financial statements were approved by the board of directors and authorised for issue on 4 April 2024 and are signed on its behalf by:
04 April 2024
Mr W D Hill
Director
Company registration number SC362322 (Scotland)
HFD GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 15 -
Share capital
Revaluation reserve
Hedging reserve
Profit and loss reserves
Total
£000
£000
£000
£000
£000
Balance at 24 June 2021
6,623
26,430
(313)
58,457
91,197
Period ended 30 June 2022:
Profit for the period
-
-
-
5,400
5,400
Other comprehensive income:
Cash flow hedges gains
-
-
1,405
-
1,405
Tax relating to other comprehensive income
-
-
0
(351)
-
0
(351)
Total comprehensive income
-
-
1,054
5,400
6,454
Balance at 30 June 2022
6,623
26,430
741
63,857
97,651
Year ended 30 June 2023:
Profit for the year
-
-
-
7,582
7,582
Other comprehensive income:
Adjustments to fair value of financial assets
-
-
0
(96)
-
(96)
Cash flow hedges gains
-
-
944
-
944
Tax relating to other comprehensive income
-
-
0
(236)
-
0
(236)
Total comprehensive income
-
-
612
7,582
8,290
Balance at 30 June 2023
6,623
26,430
1,353
71,439
105,845
HFD GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 16 -
Share capital
Profit and loss reserves
Total
£000
£000
£000
Balance at 24 June 2021
6,623
(15,144)
(8,521)
Period ended 30 June 2022:
Loss and total comprehensive income for the period
-
(173)
(173)
Balance at 30 June 2022
6,623
(15,317)
(8,694)
Year ended 30 June 2023:
Profit and total comprehensive income
-
(317)
(317)
Balance at 30 June 2023
6,623
(15,634)
(9,011)
HFD GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
- 17 -
2023
2022
Notes
£000
£000
£000
£000
Cash flows from operating activities
Cash generated from/(absorbed by) operations
34
31,630
(520)
Interest paid
(1,334)
(1,187)
Income taxes paid
(1,913)
(1,978)
Net cash inflow/(outflow) from operating activities
28,383
(3,685)
Investing activities
Purchase of intangible assets
(16)
-
Purchase of tangible fixed assets
(7,196)
(734)
Proceeds from disposal of tangible fixed assets
44
19
Interest received
1,581
89
Net cash used in investing activities
(5,587)
(626)
Financing activities
Repayment of borrowings
(1,340)
(14)
Repayment of bank loans
(8,022)
(2,713)
Purchase of derivatives
871
-
Payment of finance leases obligations
(472)
(237)
Net cash used in financing activities
(8,963)
(2,964)
Net increase/(decrease) in cash and cash equivalents
13,833
(7,275)
Cash and cash equivalents at beginning of year
6,128
13,403
Cash and cash equivalents at end of year
19,961
6,128
HFD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 18 -
1
Accounting policies
Company information

HFD Group Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is 177 Bothwell Street, Glasgow, G2 7ER.

 

The group consists of HFD Group Limited and all of its subsidiaries.

1.1
Reporting period

The financial statements for the current period cover the period from 1 July 2022 to 30 June 2023 utilising the 7 day variation to statutory year end for administrative purposes. The prior period accounts are drawn up for the period from 24 June 2021 to 30 June 2022, again utilising the 7 day variation to statutory year end for administrative purposes. Comparative amounts presented in the financial statements (including the related notes) are therefore not entirely comparable.

1.2
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 £000.

The financial statements have been prepared under the historical cost 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 the 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 the exemption available from the requirement to present a company only cash flow statement and related notes and disclosures.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company HFD Group Limited 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 30 June 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.

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

HFD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 19 -
1.4
Going concern

The directors are required to prepare the statutory financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. In satisfaction of this responsibility the directors have considered the group's ability to meet its liabilities as they fall due. The parent company has a net liability position of £9.0m and current net liability position of £47.5m at the year end. The directors are comfortable that the parent company will have access to sufficient levels of income (primarily dividends) should it be necessary to settle creditors within the next 12 months. The Group has net assets of £105.8m and net current assets of £76.7m at the year end. The Parent Company and Group continue to meet day to day working capital requirements from existing cash reserves generated by on-going trading activities. The Group makes use if third party finance facilities for longer term capital intensive projects.

 

The current and future financial position of the Company and Group, its cash flows and liquidity position have been reviewed by the directors. The directors are confident that the existing funding facilities will provide sufficient headroom to meet forecast cash requirements. The financial statements have been prepared on a going concern basis which assumes that the company will continue in operational existence for the foreseeable future.

 

On 4th July 2023, the Group undertook a strategic restructure which involved the shareholders of the company forming a new parent company, HFD Group Holdings Limited, by way of a share for share exchange. The company transferred its shareholding in HFD Duart House Limited, HFD International House Limited, HFD Offices Limited, HFD Phoenix House Limited and HFD Willow House Limited to HFD Group Holdings Limited which were subsequently demerged from the Group by way of a capital reduction demerger. The assets and liabilities of these companies exited the Group at this point.

 

In addition, on 27th July 2023 the company repaid in full the outstanding loan of £7.6m as at 30 June 2023 held in The Alexander 2011 Trust.

 

The directors therefore believe it is appropriate to prepare the financial statements on a going concern basis.

 

 

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, settlement discounts and volume rebates.

 

With the exception of long term contracts, turnover represents the invoice value of goods and services sold, less allowances and excluding value added tax, and was derived from activities carried out wholly in the United Kingdom. Turnover is recorded for long term contracts as contract activity progresses reflecting the proportion of work completed to date.

 

Turnover included:

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 other services not regarded as long term contracts is recognised as the service is provided.

HFD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 20 -
1.6
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:

Software
10% on cost
1.7
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
straight line over 75 years
Plant and equipment
25% on cost and 12.5% reducing balance
Fixtures and fittings
25% on cost and 20%-33% on cost
Computers
25% on cost and at varying rates on cost
Motor vehicles
25% on cost
Other equipment
Residual value equates to cost

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.

Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.

 

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and loss are recognised in profit or loss.

 

1.8
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

 

HFD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 21 -
1.9
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.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.10
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.

HFD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 22 -

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.

1.11
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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

1.12
Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

1.13
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.

HFD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 23 -
1.14
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.

HFD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 24 -
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.

Hedge accounting

The group designates certain hedging instruments, including derivatives as either fair value hedges or cash flow hedges. At the inception of the hedge relationship, the group documents the relationship between the hedging instrument and the hedged item along with risk management objectives and strategy for undertaking various hedge transactions. At the inception of the hedge and on an ongoing basis, the group documents whether the hedging instrument is highly effective in offsetting changes in fair values or cash flows of the hedged item.

 

For derivatives that are designated and qualify as cash flow hedges, the effective portion of changes in the fair value of the hedge is recognised on other comprehensive income. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss.

 

Any gain or loss previously recognised in other comprehensive income is reclassified to profit or loss when the hedge relationship ends. This occurs when the hedging instrument expires or no longer meets the hedging criteria, the forecast transaction is no longer highly probable, the hedged debt instrument is derecognised, or the hedging instrument is terminated.

Derecognition of financial liabilities

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

1.15
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.

1.16
Taxation

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

HFD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 25 -
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.

1.17
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.

1.18
Retirement benefits

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

1.19
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.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

HFD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 26 -
1.20
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.

1.21
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.

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.

HFD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 27 -
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.

Accounting for construction contracts

The group estimates the outcome of its construction contracts. This is normally measured by the proportion that contract costs incurred for work performed to date bear to the estimated total contract costs, except where this would not be representative of the stage of completion.

 

Estimated total contract costs are based on management's detailed budgets and projections. Where management judge that the outcome of a contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable they will be recoverable.

Impairment provisions against stock and debtors

In 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.

 

The directors periodically review the carrying value of work in progress for any indicators of impairment. This involves an assessment of the recoverable amount of work in progress, being the higher of the anticipated fair value less cost to sell and its value in use.

Amounts owed by group undertakings (company only)

Amounts owed by group undertakings are stated in the accounts at their transaction price less any appropriate provision for irrecoverable amounts. In determining if a provision is required, the directors exercise judgement, considering any specific indicators that the recoverability of the balance may be in doubt.

Valuation of fixed assets

The group's freehold land and buildings are carried at valuation. The directors are therefore required to consider the valuation each year to ensure that this remains appropriately stated. In performing this review, the directors consider a number of factors including recent valuations performed by Independent Chartered Surveyors in accordance with RICS appraisal and valuation standards.

 

Similarly, the group's investment properties are carried at fair value and require the directors to exercise judgement when ensuring investment properties are appropriately stated at the reporting date. In making these judgements the directors again consider recent valuations performed by independent Chartered Surveyors in accordance with RICS appraisal and valuation standards.

HFD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 28 -
3
Turnover and other revenue
2023
2022
£000
£000
Turnover analysed by class of business
Maintenance of office suites
186
-
Landscaping services
1,208
1,104
Security services
1,042
1,198
IT services
1,495
1,567
Data services
8,541
6,406
Letting and property management
3,938
3,649
Commercial property development
12,212
12,083
Property construction
4,183
15,390
Hospitality
2
50
32,807
41,447
2023
2022
£000
£000
Other revenue
Interest income
1,581
1,643
Grants received
-
42
Sundry income
497
411
4
Exceptional item
2023
2022
£000
£000
Expenditure
Stock impairment
1,776
2,960
1,776
2,960
5
Operating profit
2023
2022
£000
£000
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(27)
1
Government grants
-
(42)
Depreciation of owned tangible fixed assets
664
184
Depreciation of tangible fixed assets held under finance leases
468
727
Profit on disposal of tangible fixed assets
(22)
(5)
Operating lease charges
471
342
HFD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 29 -
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£000
£000
For audit services
Audit of the financial statements of the group and company
9
20
Audit of the financial statements of the company's subsidiaries
91
80
100
100
For other services
Taxation compliance services
52
45
7
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
139
131
12
11

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£000
£000
£000
£000
Wages and salaries
5,235
4,707
676
158
Social security costs
461
439
78
16
Pension costs
158
183
23
6
5,854
5,329
777
180

Contractually all employees of HFD Group Limited sit within HFD Payroll Limited.

 

Remuneration costs were borne by HFD Payroll Limited and recharged to the relevant HFD Group Limited subsidiaries.

8
Directors' remuneration
2023
2022
£000
£000
Remuneration for qualifying services
459
167
Company pension contributions to defined contribution schemes
16
8
475
175
HFD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
8
Directors' remuneration
(Continued)
- 30 -

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2022 - 3).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£000
£000
Remuneration for qualifying services
162
n/a
Company pension contributions to defined contribution schemes
7
n/a
9
Interest receivable and similar income
2023
2022
£000
£000
Interest income
Interest on bank deposits
383
-
0
Other interest income
1,198
1,643
Total income
1,581
1,643
2023
2022
Investment income includes the following:
£000
£000
Interest on financial assets not measured at fair value through profit or loss
383
-
10
Interest payable and similar expenses
2023
2022
£000
£000
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
392
707
Other interest on financial liabilities
22
27
414
734
Other finance costs:
Interest on finance leases and hire purchase contracts
41
29
Other interest
879
424
Total finance costs
1,334
1,187
HFD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 31 -
11
Taxation
2023
2022
£000
£000
Current tax
UK corporation tax on profits for the current period
1,925
1,003
Adjustments in respect of prior periods
250
41
Group tax relief
(244)
(6)
Total current tax
1,931
1,038
Deferred tax
Origination and reversal of timing differences
545
260
Adjustment in respect of prior periods
(159)
(7)
Total deferred tax
386
253
Total tax charge
2,317
1,291

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
£000
£000
Profit before taxation
9,899
6,691
Expected tax charge based on the standard rate of corporation tax in the UK of 20.50% (2022: 19.00%)
2,029
1,271
Tax effect of expenses that are not deductible in determining taxable profit
36
259
Adjustments in respect of prior years
404
41
Other non-reversing timing differences
194
-
0
Other permanent differences
-
0
(2)
Deferred tax adjustments in respect of prior years
(312)
(7)
Movement in deferred tax not recognised
50
160
Remeasurement of deferred tax for changes in tax rates
142
(63)
Capital gains
-
(222)
Other differences
82
(146)
Fixed asset differences
(72)
-
Deferred tax charged directly to equity
(236)
-
Taxation charge
2,317
1,291
HFD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
11
Taxation
(Continued)
- 32 -

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2023
2022
£000
£000
Deferred tax arising on:
Revaluation of financial instruments treated as cash flow hedges
236
351

An increase in the UK Corporation tax rate from 19% to 25% took effect from 1 April 2023. The change will have a consequential effect on the group's future tax charge in the UK and as the 25% tax rate was substantively enacted prior to the completion of the accounting period, a pro- rata rate of 20.50% was used to calculate the group's Corporation tax liability,

 

Deferred tax expected to unwind after 1 April 2023 has been calculated at 25% as opposed to the previous tax rate of 19%.

12
Intangible fixed assets
Group
Software
£000
Cost
At 1 July 2022
-
0
Additions
16
At 30 June 2023
16
Amortisation and impairment
At 1 July 2022 and 30 June 2023
-
0
Carrying amount
At 30 June 2023
16
At 30 June 2022
-
0
HFD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 33 -
13
Tangible fixed assets
Group
Freehold land and buildings
Assets under construction
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Other equipment
Total
£000
£000
£000
£000
£000
£000
£000
£000
Cost
At 1 July 2022
38,400
-
0
505
147
5,454
405
78
44,991
Additions
-
0
4,168
16
84
1,599
33
417
6,317
Disposals
-
0
-
0
-
0
-
0
-
0
(71)
-
0
(71)
At 30 June 2023
38,400
4,168
521
231
7,054
368
495
51,237
Depreciation and impairment
At 1 July 2022
-
0
-
0
354
109
2,032
202
35
2,730
Depreciation charged in the year
-
0
-
0
48
32
941
71
40
1,132
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
-
0
(49)
-
0
(49)
At 30 June 2023
-
0
-
0
402
142
2,972
222
75
3,813
Carrying amount
At 30 June 2023
38,400
4,168
119
89
4,082
146
420
47,424
At 30 June 2022
38,400
-
0
151
38
3,422
203
43
42,257
HFD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 34 -
Company
£000
Cost
At 1 July 2022
78
Additions
417
At 30 June 2023
495
Depreciation and impairment
At 1 July 2022
35
Depreciation charged in the year
39
At 30 June 2023
74
Carrying amount
At 30 June 2023
421
At 30 June 2022
43

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
£000
£000
£000
£000
Motor vehicles
15,382
3,145
-
0
-
0

The group's land and buildings relate to property the group obtained the risk and rewards incidental to ownership of following the acquisition of two finance leases during the prior financial period. Under the terms of the lease agreements, ownership of the property transferred to the group for a nominal sum following the expiry of the lease agreements on 5 October 2023.

 

Land and buildings are carried at valuation and were professionally valued in March 2021 by CBRE Ltd who are independent of the group and RICS regulated. The valuation performed conformed to International Valuation Standards and was based on arm's length terms for similar properties. The directors remain satisfied that the valuation performed at this time remains a fair reflection of the fair value of the land and buildings at the reporting date.

 

If the above revalued assets were measured using the cost model, the carrying amounts would be £3,161k (2022-£3,161k).

14
Investment property
Group
Company
2023
2023
£000
£000
Fair value
At 1 July 2022 and 30 June 2023
20,615
-
Additions through external acquisition
881
-
At 30 June 2023
21,496
-
HFD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
14
Investment property
(Continued)
- 35 -

A professional 3rd party valuation of investment properties was carried out by JLL, RICS Registered Valuers, as at 2 October 2022. The directors have concluded that this represents the fair value of the investment properties held and is an appropriate fair value as at 30 June 2023.

15
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£000
£000
£000
£000
Investments in subsidiaries
16
-
0
-
0
57,650
57,650
Movements in fixed asset investments
Company
Shares in subsidiaries
£000
Cost or valuation
At 1 July 2022 and 30 June 2023
57,650
Carrying amount
At 30 June 2023
57,650
At 30 June 2022
57,650
HFD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 36 -
16
Subsidiaries

Details of the company's subsidiaries at 30 June 2023 are as follows:

Name of undertaking
Address
Class of
% Held
shares held
Direct
Indirect
HFD Datavita Limited
1
Ordinary
100.00
-
HFD Facilities Maintenance Limited
2
Ordinary
-
100.00
HFD Services Limited
2
Ordinary
100.00
-
HFD City Park 2 Limited
2
Ordinary
-
100.00
HFD City Park 3 Limited
2
Ordinary
-
100.00
HFD Construction Group Limited
2
Ordinary
100.00
-
HFD Glasgow Limited
2
Ordinary
-
100.00
HFD Intelligent Technologies Limited
2
Ordinary
-
100.00
HFD Landscaping Limited
2
Ordinary
-
100.00
HFD Property Group Limited
2
Ordinary
100.00
-
HFD Offices Limited
2
Ordinary
100.00
-
HFD Security Limited
2
Ordinary
-
100.00
HFD SETP Limited
2
Ordinary
-
100.00
High Blantyre Construction Limited
2
Ordinary
-
100.00
High Blantyre Development Limited
2
Ordinary
-
100.00
Newhouse North Construction Limited
2
Ordinary
-
100.00
Newhouse North Developments Limited
2
Ordinary
-
100.00
Strathclyde Business Park (Developments) Limited
2
Ordinary
-
100.00
HFD Renewables Limited
2
Ordinary
100.00
-
HFD Grill Limited
2
Ordinary
-
100.00
HFD Payroll Limited
2
Ordinary
100.00
-
HFD Renewables SL Limited
2
Ordinary
-
100.00
HFD Renewables Gainerhill Limited
2
Ordinary
-
100.00
HFD Renewables NL Limited
2
Ordinary
-
100.00
HFD Renewables CS Limited
2
Ordinary
-
100.00
HFD Duart House Limited
2
Ordinary
100.00
-
HFD International House Limited
2
Ordinary
100.00
-
HFD Phoenix House Limited
2
Ordinary
100.00
-
HFD Willow House Limited
2
Ordinary
100.00
-

Registered office addresses (all UK unless otherwise indicated):

1)
Fortis Datacentre, York Road, Chapelhall, Airdrie, ML6 8HW
2)
177 Bothwell, Glasgow, G2 7ER

The company has provided parent company guarantees to HFD Duart House Limited, HFD International House Limited, HFD Phoenix House Limited and HFD Willow House Limited under section 479A of the Companies Act 2006. Each of these entities have therefore taken the exemption available under Section 479A from the requirement to have their individual financial statements audited.

 

Further parent company guarantees have been provided by HFD Services Limited, HFD Property Group Limited, HFD Construction Group Limited and HFD Renewables Limited to certain group companies held by these entities directly.

 

On 4th July 2023, the company transferred its shareholding in HFD Duart House Limited, HFD International House Limited, HFD Offices Limited, HFD Phoenix House and HFD Willow House Limited to HFD Group Holdings Limited which were subsequently demerged from the Group by way of capital reduction demerger.

HFD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 37 -
17
Financial instruments
Group
Company
2023
2022
2023
2022
£000
£000
£000
£000
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
1,835
1,019
-
-

Financial instruments measured at fair value is in relation to an interest rate SWAP agreement entered into by the group.

18
Stocks
Group
Company
2023
2022
2023
2022
£000
£000
£000
£000
Work in progress
4,516
3,576
-
-
19
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£000
£000
£000
£000
Trade debtors
3,680
1,543
166
-
Corporation tax recoverable
955
-
0
82
-
0
Amounts owed by group undertakings
-
-
10,376
16,044
Derivative financial instruments
1,835
1,019
-
-
Other debtors
47,145
79,157
9,084
9,235
Prepayments and accrued income
31,907
9,838
2,574
1,675
85,522
91,557
22,282
26,954
Deferred tax asset (note 24)
(32)
-
0
(32)
32
85,490
91,557
22,250
26,986
Amounts falling due after more than one year:
Amounts owed by group undertakings
-
-
18,900
14,130
Other debtors
167
1,230
-
0
-
0
167
1,230
18,900
14,130
Total debtors
85,657
92,787
41,150
41,116
HFD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 38 -
20
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£000
£000
£000
£000
Bank loans
22
1,226
2,639
-
0
-
0
Obligations under finance leases
23
908
704
-
0
-
0
Trade creditors
5,765
3,308
578
351
Amounts owed to group undertakings
-
-
0
93,145
82,290
Corporation tax payable
2,100
1,010
-
0
-
0
Other taxation and social security
1,528
744
-
56
Deferred income
25
253
1,331
-
0
-
0
Other creditors
8,246
2,206
5,985
2,000
Accruals and deferred income
13,432
7,113
1,095
1,945
33,458
19,055
100,803
86,642
21
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£000
£000
£000
£000
Bank loans and overdrafts
22
8,490
15,099
-
0
-
0
Obligations under finance leases
23
1,253
1,953
-
0
-
0
Other borrowings
22
11,898
13,238
11,898
13,238
Trade creditors
-
0
734
-
0
-
0
Other creditors
7,628
7,628
7,628
7,628
Accruals and deferred income
-
0
57
-
0
-
0
29,269
38,709
19,526
20,866
22
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£000
£000
£000
£000
Bank loans
9,716
17,738
-
0
-
0
Other loans
11,898
13,238
11,898
13,238
21,614
30,976
11,898
13,238
Payable within one year
1,226
2,639
-
0
-
0
Payable after one year
20,388
28,337
11,898
13,238
HFD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
22
Loans and overdrafts
(Continued)
- 39 -

Bank loans are secured by a bond and floating charge over the assets of certain subsidiaries and a standard charge over certain land and property.

 

The bank loan attracts interest at a margin over SONIA and is repayable by quarterly instalments followed by a final instatement amount in February 2028.

 

Other loans relate to amounts owed to directors. The loans are unsecured and further details are outlined at note 31.

 

On 27 July 2023, the company repaid in full the outstanding loan balance of £7.6m as 30 June 2023 held in The Alexander 2011 Trust.

 

Following 30 June 2023, all bank debt was transferred outside of the group as part of the capital reduction demerger, however the bond and floating charge over the assets of certain subsidiaries and standard charge over certain land and property remains in place.

 

 

23
Finance lease obligations
Group
Company
2023
2022
2023
2022
£000
£000
£000
£000
Future minimum lease payments due under finance leases:
Within one year
908
704
-
0
-
0
In two to five years
1,253
1,953
-
0
-
0
2,161
2,657
-
-

Finance lease payments represent rentals payable by the company or group 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 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

24
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
£000
£000
Fixed asset timing differences
10,530
820
Tax losses
(32)
(32)
Revaluations
-
9,160
10,498
9,948
HFD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
24
Deferred taxation
(Continued)
- 40 -
Liabilities
Liabilities
2023
2022
Company
£000
£000
Tax losses
54
-
Group
Company
2023
2023
Movements in the year:
£000
£000
Liability/(Asset) at 1 July 2022
9,948
(32)
Charge to profit or loss
346
118
Charge to other comprehensive income
236
-
Liability at 30 June 2023
10,530
86

The group had estimated tax losses of £16k available for future offset at the reporting date.

25
Deferred income
Group
Company
2023
2022
2023
2022
£000
£000
£000
£000
Other deferred income
1,649
1,331
-
-
26
Retirement benefit schemes
2023
2022
Defined contribution schemes
£000
£000
Charge to profit or loss in respect of defined contribution schemes
158
183

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.

HFD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 41 -
27
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£000
£000
Issued and fully paid
'A' Ordinary shares of £1 each
136,310
136,310
136
136
'B' Ordinary shares of £1 each
136,310
136,310
136
136
'C' Ordinary shares of £1 each
165,331
165,331
165
165
'D' Ordinary shares of £1 each
165,331
165,331
165
165
'E' Ordinary shares of £1 each
165,331
165,331
165
165
'F' Ordinary shares of £1 each
165,331
165,331
165
165
'G' Ordinary shares of £1 each
165,331
165,331
165
165
1,099,275
1,099,275
1,099
1,099
2023
2022
2023
2022
Preference share capital
Number
Number
£000
£000
Issued and fully paid
Redeemable preference shares of £1 each
3,214,294
3,214,294
3,214
3,214
'M' Redeemable preference shares of £1 each
288,638
288,638
289
289
'H' Redeemable preference shares of £1 each
404,249
404,249
404
404
'I' Redeemable preference shares of £1 each
404,249
404,249
404
404
'J' Redeemable preference shares of £1 each
404,249
404,249
404
404
'K' Redeemable preference shares of £1 each
404,249
404,249
404
404
'L' Redeemable preference shares of £1 each
404,249
404,249
404
404
5,524,177
5,524,177
5,524
5,524
Preference shares classified as equity
5,524
5,524
Total equity share capital
6,623
6,623

The above shares rank parra passu in all respect but are separate classes of shares. Redeemable shares are only able to be redeemed at the instance of the company but at a price not less than the subscription price paid on such shares.

28
Reserves
Profit and loss reserves

The profit and loss reserves represents cumulative profits and losses, less any dividends paid.

 

Hedging reserve

The hedging reserve represents the value at the year end of derivative financial instruments that will be used to hedge the effect of interest rate cash flows in future years.

 

Revaluation reserve

The revaluation reserves represent the difference between the fair value and the carrying value on an historic cost basis of assets held at valuation.

 

 

HFD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 42 -
29
Financial commitments, guarantees and contingent liabilities

The group has given its bankers a guarantee that in the event of HFD Avondale House Limited or HFD Management LLP not repaying their bank loans, the group will satisfy this debt. At 30 June 2023, the debt was £3.7m.

30
Events after the reporting date

The board conducted a strategic review of its operational structure. On 4 July 2023 the Group undertook a strategic restructure which involved the shareholders of the company forming a new parent company, HFD Group Holdings Limited, by way of a share for share exchange.

 

In addition, the company transferred its shareholding in HFD Duart House Limited, HFD International House Limited, HFD Offices Limited and HFD Phoenix House Limited to HFD Group Holdings Limited which were subsequently demerged by way of a capital reduction demerger. The ultimate controlling ownership of all the companies is unchanged following the restructure.

 

On 27 July 2023, the company repaid in full the outstanding loan balance of £7.6m as at 30 June 2023 held in The Alexander 2011 Trust.

31
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£000
£000
Aggregate compensation
459
225
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£000
£000
£000
£000
Group
Other related parties
23,708
29,907
2,890
735
Company
Other related parties
366
146
160
13
HFD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
31
Related party transactions
(Continued)
- 43 -
Interest received
Management fees
2023
2022
2023
2022
£000
£000
£000
£000
Group
Other related parties
1,278
159
216
35
Company
Other related parties
1,278
158
216
35

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£000
£000
Group
Other related parties
6,509
2,589
Company
Other related parties
5,985
1,851

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
Balance
Balance
£000
£000
Group
Other related parties
43,796
68,601
Company
Other related parties
7,543
1,493
Other information

The company has taken advantage of the exemption available in FRS 102 Section 33 "Related Party Disclosures" whereby it has not disclosed transactions with any wholly owned subsidiary undertaking of the group.

HFD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 44 -
32
Directors' transactions

During the current financial period, the following amounts were repaid in respect of loans owed by the group to company directors:

Description
% Rate
Opening balance
Amounts repaid
Closing balance
£000
£000
£000
Directors' loan
-
13,238
(1,340)
11,898
13,238
(1,340)
11,898
33
Controlling party

The Hill 2011 Trust and The Alexander Trust and their members are considered to be the ultimate controlling party due to their majority shareholding in HFD Group Limited.

34
Cash generated from/(absorbed by) group operations
2023
2022
£000
£000
Profit for the year after tax
7,582
5,400
Adjustments for:
Taxation charged
2,317
1,291
Finance costs
1,334
1,187
Investment income
(1,581)
(1,643)
Gain on disposal of tangible fixed assets
(22)
(5)
Fair value (gain)/loss on investment properties
-
0
1,045
Depreciation and impairment of tangible fixed assets
1,132
911
Movements in working capital:
(Increase)/decrease in stocks
(940)
2,811
Decrease/(increase) in debtors
29,130
(4,540)
Decrease in creditors
(6,244)
(6,977)
Decrease in deferred income
(1,078)
-
Cash generated from/(absorbed by) operations
31,630
(520)
HFD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 45 -
35
Analysis of changes in net debt - group
1 July 2022
Cash flows
Other non-cash changes
Market value movements
30 June 2023
£000
£000
£000
£000
£000
Cash at bank and in hand
6,128
13,833
-
-
19,961
Borrowings excluding overdrafts
(30,976)
9,362
-
-
(21,614)
Obligations under finance leases
(2,657)
472
24
-
(2,161)
Derivatives relating to debt
-
1,687
-
(1,687)
-
(27,505)
25,354
24
(1,687)
(3,814)
36
Analysis of changes in net funds/(debt) - company
1 July 2022
Cash flows
30 June 2023
£000
£000
£000
Cash at bank and in hand
5
12,143
12,148
Borrowings excluding overdrafts
(13,238)
1,340
(11,898)
(13,233)
13,483
250
2023-06-302022-07-01falseCCH SoftwareCCH Accounts Production 2023.300Mr T D AndersonMiss D J HillMs K HillMrs R HillMr W K HillMr W D HillMr S LewisMrs L D McKenzieMrs K OvendenMr D QuinnMr S TeapeMrs T LewisfalseSC362322bus:Consolidated2022-07-012023-06-30SC3623222022-07-012023-06-30SC362322bus:Director12022-07-012023-06-30SC362322bus:Director22022-07-012023-06-30SC362322bus:Director32022-07-012023-06-30SC362322bus:Director42022-07-012023-06-30SC362322bus:Director52022-07-012023-06-30SC362322bus:Director62022-07-012023-06-30SC362322bus:Director72022-07-012023-06-30SC362322bus:Director82022-07-012023-06-30SC362322bus:Director92022-07-012023-06-30SC362322bus:Director102022-07-012023-06-30SC362322bus:Director112022-07-012023-06-30SC362322bus:Director122022-07-012023-06-30SC362322bus:RegisteredOffice2022-07-012023-06-30SC362322bus:Consolidated2023-06-30SC3623222023-06-30SC362322bus:Consolidated2021-06-242022-06-30SC362322bus:Consolidated12022-07-012023-06-30SC362322bus:Consolidated12021-06-242022-06-30SC3623222021-06-242022-06-30SC362322core:RevaluationReservebus:Consolidated2021-06-242022-06-30SC362322core:HedgingReservebus:Consolidated2021-06-242022-06-30SC362322core:RevenueReservesInvestmentFundsOnlybus:Consolidated2021-06-242022-06-30SC362322core:RevaluationReservebus:Consolidated2022-07-012023-06-30SC362322core:HedgingReservebus:Consolidated2022-07-012023-06-30SC362322core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-07-012023-06-30SC362322core:OtherResidualIntangibleAssetsbus:Consolidated2023-06-30SC362322core:OtherResidualIntangibleAssetsbus:Consolidated2022-06-30SC362322core:ComputerSoftwarebus:Consolidated2023-06-30SC362322core:ComputerSoftwarebus:Consolidated2022-06-30SC362322bus:Consolidated2022-06-30SC3623222022-06-30SC362322core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-06-30SC362322core:ConstructionInProgressAssetsUnderConstructionbus:Consolidated2023-06-30SC362322core:PlantMachinerybus:Consolidated2023-06-30SC362322core:FurnitureFittingsbus:Consolidated2023-06-30SC362322core:ComputerEquipmentbus:Consolidated2023-06-30SC362322core:MotorVehiclesbus:Consolidated2023-06-30SC362322core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipmentbus:Consolidated2023-06-30SC362322core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-06-30SC362322core:ConstructionInProgressAssetsUnderConstructionbus:Consolidated2022-06-30SC362322core:PlantMachinerybus:Consolidated2022-06-30SC362322core:FurnitureFittingsbus:Consolidated2022-06-30SC362322core:ComputerEquipmentbus:Consolidated2022-06-30SC362322core:MotorVehiclesbus:Consolidated2022-06-30SC362322core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipmentbus:Consolidated2022-06-30SC362322core:Non-standardPPEClass2ComponentTotalPropertyPlantEquipment2023-06-30SC362322core:Non-standardPPEClass2ComponentTotalPropertyPlantEquipment2022-06-30SC362322core:RevaluationReservebus:Consolidated2023-06-30SC362322core:RevaluationReservebus:Consolidated2022-06-30SC362322core:HedgingReservebus:Consolidated2023-06-30SC362322core:HedgingReservebus:Consolidated2022-06-30SC362322core:RetainedEarningsAccumulatedLosses2023-06-30SC362322core:SharePremiumbus:Consolidated2021-06-23SC362322core:HedgingReservebus:Consolidated2021-06-23SC362322core:RetainedEarningsAccumulatedLosses2021-06-23SC362322core:RetainedEarningsAccumulatedLosses2022-06-30SC362322bus:Consolidated2021-06-23SC362322core:IntangibleAssetsOtherThanGoodwill2022-07-012023-06-30SC362322core:ComputerSoftware2022-07-012023-06-30SC362322core:LandBuildingscore:OwnedOrFreeholdAssets2022-07-012023-06-30SC362322core:PlantMachinery2022-07-012023-06-30SC362322core:FurnitureFittings2022-07-012023-06-30SC362322core:ComputerEquipment2022-07-012023-06-30SC362322core:MotorVehicles2022-07-012023-06-30SC362322core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2022-07-012023-06-30SC362322core:UKTaxbus:Consolidated2022-07-012023-06-30SC362322core:UKTaxbus:Consolidated2021-06-242022-06-30SC362322bus:Consolidated22022-07-012023-06-30SC362322bus:Consolidated22021-06-242022-06-30SC362322bus:Consolidated32022-07-012023-06-30SC362322bus:Consolidated32021-06-242022-06-30SC362322core:ComputerSoftwarebus:Consolidated2022-06-30SC362322core:ComputerSoftwarecore:ExternallyAcquiredIntangibleAssetsbus:Consolidated2022-07-012023-06-30SC362322core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-06-30SC362322core:ConstructionInProgressAssetsUnderConstructionbus:Consolidated2022-06-30SC362322core:PlantMachinerybus:Consolidated2022-06-30SC362322core:FurnitureFittingsbus:Consolidated2022-06-30SC362322core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipmentbus:Consolidated2022-06-30SC362322bus:Consolidated2022-06-30SC362322core:Non-standardPPEClass2ComponentTotalPropertyPlantEquipment2022-06-30SC362322core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-07-012023-06-30SC362322core:ConstructionInProgressAssetsUnderConstructionbus:Consolidated2022-07-012023-06-30SC362322core:PlantMachinerybus:Consolidated2022-07-012023-06-30SC362322core:FurnitureFittingsbus:Consolidated2022-07-012023-06-30SC362322core:ComputerEquipmentbus:Consolidated2022-07-012023-06-30SC362322core:MotorVehiclesbus:Consolidated2022-07-012023-06-30SC362322core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipmentbus:Consolidated2022-07-012023-06-30SC362322core:Non-standardPPEClass2ComponentTotalPropertyPlantEquipment2022-07-012023-06-30SC362322core:MotorVehicles2023-06-30SC362322core:MotorVehicles2022-06-30SC362322core:CurrentFinancialInstruments2023-06-30SC362322core:Non-currentFinancialInstrumentsbus:Consolidated2023-06-30SC362322core:Non-currentFinancialInstrumentsbus:Consolidated2022-06-30SC362322core:Non-currentFinancialInstruments2023-06-30SC362322core:Non-currentFinancialInstruments2022-06-30SC362322core:CurrentFinancialInstrumentsbus:Consolidated2023-06-30SC362322core:CurrentFinancialInstrumentsbus:Consolidated2022-06-30SC362322core:CurrentFinancialInstruments2022-06-30SC362322core:WithinOneYearbus:Consolidated2023-06-30SC362322core:WithinOneYearbus:Consolidated2022-06-30SC362322core:CurrentFinancialInstrumentscore:WithinOneYear2023-06-30SC362322core:CurrentFinancialInstrumentscore:WithinOneYear2022-06-30SC362322core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2023-06-30SC362322core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2022-06-30SC362322core:Non-currentFinancialInstrumentscore:AfterOneYear2023-06-30SC362322core:Non-currentFinancialInstrumentscore:AfterOneYear2022-06-30SC362322core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-06-30SC362322core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2022-06-30SC362322core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated12023-06-30SC362322core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated12022-06-30SC362322core:Non-currentFinancialInstrumentscore:AfterOneYear22023-06-30SC362322core:Non-currentFinancialInstrumentscore:AfterOneYear22022-06-30SC362322core:WithinOneYear2023-06-30SC362322core:WithinOneYear2022-06-30SC362322core:BetweenTwoFiveYearsbus:Consolidated2023-06-30SC362322core:BetweenTwoFiveYearsbus:Consolidated2022-06-30SC362322core:BetweenTwoFiveYears2023-06-30SC362322core:BetweenTwoFiveYears2022-06-30SC362322bus:PrivateLimitedCompanyLtd2022-07-012023-06-30SC362322bus:FRS1022022-07-012023-06-30SC362322bus:Audited2022-07-012023-06-30SC362322bus:ConsolidatedGroupCompanyAccounts2022-07-012023-06-30SC362322bus:FullAccounts2022-07-012023-06-30xbrli:purexbrli:sharesiso4217:GBP