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Registered number: 00694742










John Hellyar & Company Limited










Annual report and consolidated financial statements

For the year ended 30 June 2023

 
John Hellyar & Company Limited
 

Company Information


Directors
D I Hellyar 
R B Cowling 
J L Brook 




Company secretary
D I Hellyar



Registered number
00694742



Registered office
Tyler Way
Swalecliffe

Whitstable

Kent

CT5 2RX




Independent auditor
Kreston Reeves LLP
Statutory Auditor & Chartered Accountants

Montague Place

Quayside

Chatham Maritime

Chatham

Kent

ME4 4QU




Bankers
HSBC UK Bank Plc
9 Rose Lane

Canterbury

Kent

CT1 2JP




Solicitors
Furley Page
39 St Margaret's Street

Canterbury

Kent

CT1 2TX





 
John Hellyar & Company Limited
 

Contents



Page
Group strategic report
 
1 - 3
Directors' report
 
4 - 6
Independent auditor's report
 
7 - 10
Consolidated statement of comprehensive income
 
11
Consolidated balance sheet
 
12
Company balance sheet
 
13
Consolidated statement of changes in equity
 
14
Company statement of changes in equity
 
15
Consolidated statement of cash flows
 
16
Notes to the financial statements
 
17 - 36


 
John Hellyar & Company Limited
 

Group strategic report
For the year ended 30 June 2023

Introduction
 
The Group, with production sites in Whitstable, UK and Lowicz, Poland, operates in the field of compounding and the international distribution of thermoplastics.

Business review
 
The year under review was a success for the Group.  The UK business held up in difficult market conditions.  This was achieved by winning new customers and efficiently managing raw material costs in volatile conditions.  
The prior year was unprecedented in the growth in prices of the polymers. This year we have seen prices return to more normal pricing and this is reflected in the results. 
There are some exciting new opportunities for the company in the new financial year which promises further growth. 
Both UK and Polish businesses have suffered with wage inflation and other costs that have risen above the expected rate. This has subdued the overall profit but the business remains in a very strong position with a healthy and motivated workforce eager to reap successes going forward. 
The Polish business continued to grow in line with expectations by increasing sales, in real terms the business grew in line with our business plan, and breaking into high profile customers that offer high volume going forward.  Winning new customers has allowed us to diversify our product range which, in turn, widens our overall target market. Margins in the year have improved on the prior year.   
The outlook for the 2024 financial year is very positive as a we continue to focus on winning new business and controlling all costs to maintain and further enhance our profitability.  
The Polish business financial results have been consolidated with those of the UK business and are included within the Group figures in these financial statements. 
As can be seen in the Statement of Comprehensive Income, the Group is reporting an operating profit of £48,880 and the Group’s cash position as at 30 June 2023 was £1,442,897.  The group has worked very hard to reduce inventory and take advantage of the prices we achieved. The main focus in the coming year is to improve cash flow. Although the Group’s cash position is strong and it retains banking and trade finance facilities with plenty of headroom to support the business, should the need arise. As the group has this strength it may consider repaying loans that it used to build the subsidiary. This will be achieved before the end of the next financial year should it be deemed the best option at the time. 

Page 1

 
John Hellyar & Company Limited
 

Group strategic report (continued)
For the year ended 30 June 2023

Principal risks and uncertainties
 
The group's financial instruments comprise trade debtors, bank balances and trade creditors.  The main purpose of these instruments is to finance the group's operations.
The principal exposure to price risk is through holding stock and the group monitors stock closely.  As a general policy, stock levels are minimised.  However, market prices and supply are regularly reviewed and stock levels adjusted as appropriate to meet the needs of the Group and its customers.
Other risks applicable to financial instruments are managed as follows:
The risk of bad debts is managed by the group having a credit insurance policy with a leading credit insurer.  Credit terms offered to customers are reviewed regularly, and receivables are monitored closely.
The liquidity risk of bank balances is managed by detailed cash flow forecasting to ensure that funds are available as required.  The group aims to reduce working capital days as far as possible.
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
The group seeks to minimise its exposure to fluctuations in exchange rates by taking out forward currency contracts to hedge against foreign currency denominated commitments.  The group's policy is to enter into forward currency contracts for all such commitments immediately when those purchase commitments are made.  At the year end all non-sterling purchases were hedged by foreign currency contracts.

Financial key performance indicators
 
The key financial highlights are as follows:




2023
2022




Turnover

£36,075,560
£42,480,013
Stock turnover

3.5
4.7

Page 2

 
John Hellyar & Company Limited
 

Group strategic report (continued)
For the year ended 30 June 2023

Directors' statement of compliance with duty to promote the success of the Group
 
At John Hellyar and Co Ltd we recognise that we need to act in good faith, to be most likely to promote the success of the company for the benefit of its members, and in doing so have regard (amongst other matters) to
(a) the likely consequences of any decision in the long term, which we do by instilling a culture of improvement and investment to enable the company to produce in the long term, we do not cut corners and value longer term solutions. We all act like owners by looking after our assets and making sensible savings where we can. 
(b) the interests of the company's employees, which we do by having open communication, allowing us to challenge each other in a safe environment. Take lessons learned with humour and enjoy a spirit of achieving together much more than individually. 
(c) the need to foster the company's business relationships with customers, suppliers and others, where we act by looking through all our counter parties’ eyes, customers, suppliers, employees and shareholders. We put customers first and keep our flexibility as our USP. We foster close relationships with all our suppliers and treat these relationships as partners rather than simple suppliers. We monitor their ethical practices and engage in collaborative work practices. 
(d) the impact of the company's operations on the community and the environment, where we foster the approach of inclusivity, and recognise that continuous environmental improvement is our future. We are accredited to ISO 14001 and have implemented systems that monitor and seek to reduce the environmental effects of our operations.
(e) the desirability of the company maintaining a reputation for high standards of business conduct, where we have meaningful policies of ethical standards and of acceptable business practices. 
(f) the need to act fairly as between members of the company where we strive to foster a win win for all stakeholders. We involve our employees by regular meetings and updates and have established a Diversity and Inclusion Initiative. 


This report was approved by the board on 13 February 2024 and signed on its behalf.



D I Hellyar
Director

Page 3

 
John Hellyar & Company Limited
 

 
Directors' report
For the year ended 30 June 2023

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

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The Group's principal activities are the processing and sale of plastic materials.

Results and dividends

The loss for the year, after taxation, amounted to £122,577 (2022 - profit £31,508).

Dividends of £62,853 (2022: £73,329) were paid during the year.

Directors

The directors who served during the year were:

D I Hellyar 
R B Cowling 
J L Brook 

Future developments

The group will continue to focus on its core areas of business and investment in its facilities to maintain its leading position in the thermoplastics market. 

Research and development activities

The group carries out research into new forms of plastic materials.  The group policy is to write off development expenditure to the statement of comprehensive income as it is incurred.

Page 4

 
John Hellyar & Company Limited
 

 
Directors' report (continued)
For the year ended 30 June 2023

Engagement with suppliers, customers and others

The group puts customers first and keeps flexibility as their USP. The group fosters close relationships with all their suppliers and treats these relationships as partners rather than simple suppliers. The group monitors their suppliers ethical practices and engage in collaborative work practices. 

Greenhouse gas emissions, energy consumption and energy efficiency action

The Group's greenhouse gas emissions and energy consumption for the year were as follows:
 
ole529c.png1

1 Tangram Technology internal data from 48 extrusion sites around the world. 

All emission factors taken from
https://www.gov.uk/government /publications /greenhouse-gas-reporting -conversion -factors2023.
These emissions factors will change with time and this carbon footprint calculation uses the 2022 values. The emission factors are scheduled to be updated on 10 June 2024 and the updated values should be used for subsequent calculations.

Emissions have been calculated for the company financial year 1 July 2022 to 30 June 2023. 

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditor

Under section 487(2) of the Companies Act 2006Kreston Reeves LLP will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

Page 5

 
John Hellyar & Company Limited
 

 
Directors' report (continued)
For the year ended 30 June 2023

This report was approved by the board on 13 February 2024 and signed on its behalf.
 





D I Hellyar
Director

Page 6

 
John Hellyar & Company Limited
 

 
Independent auditor's report to the members of John Hellyar & Company Limited
 

Opinion


We have audited the financial statements of John Hellyar & Company Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 June 2023, which comprise the Consolidated statement of comprehensive income, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 30 June 2023 and of the Group's loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 7

 
John Hellyar & Company Limited
 

 
Independent auditor's report to the members of John Hellyar & Company Limited (continued)


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 ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.


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


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 4, 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 Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 8

 
John Hellyar & Company Limited
 

 
Independent auditor's report to the members of John Hellyar & Company Limited (continued)


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 Group financial statements.


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

Based on our understanding of the group and industry, and through discussion with the directors and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to health and safety, anti-bribery and employment law. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and taxation legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to, posting inappropriate journal entries to increase revenue or reduce expenditure, management bias in accounting estimates and judgemental areas of the financial statements and revenue and margin recognition). Audit procedures performed by the group engagement team included:
 
Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations including health and safety and fraud, and review of the reports made by management;
Identifying and assessing the design effectiveness of controls that management has in place to prevent and detect fraud;
Challenging assumptions and judgements made by management in its significant accounting estimates;
Checking and reperforming the reconciliation of key control accounts;
Performing analytical procedures to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud;
Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business;
Reading minutes of meetings of those charged with governance and reviewing correspondence with relevant tax and regulatory authorities;
Review of significant and unusual transactions and evaluation of the underlying financial rationale supporting the transactions; and
Identifying and testing journal entries, in particular any manual entries made at the year end for financial statement preparation.


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


Page 9

 
John Hellyar & Company Limited
 

 
Independent auditor's report to the members of John Hellyar & Company Limited (continued)


As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:


Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statementsWe are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.


We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.


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 2006Our 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.





Robert Sellers FCCA (Senior statutory auditor)
  
for and on behalf of
Kreston Reeves LLP
 
Statutory Auditor
Chartered Accountants
  
Chatham Maritime

15 February 2024
Page 10

 
John Hellyar & Company Limited
 

Consolidated statement of comprehensive income
For the year ended 30 June 2023

2023
2022
Note
£
£

Turnover
 4 
36,075,560
42,480,013

Cost of sales
  
(31,613,751)
(37,897,330)

Gross profit
  
4,461,809
4,582,683

Administrative expenses
  
(4,419,329)
(4,485,174)

Other operating income
 5 
6,400
54,698

Operating profit
 6 
48,880
152,207

Interest receivable and similar income
 10 
-
21

Interest payable and similar expenses
 11 
(62,781)
(51,831)

(Loss)/profit before taxation
  
(13,901)
100,397

Tax on (loss)/profit
 12 
(108,676)
(68,889)

(Loss)/profit for the financial year
  
(122,577)
31,508

  

Currency translation differences
  
161,949
(164,228)

  

Total comprehensive income for the year
  
39,372
(132,720)

  

  

All amounts are attributable to the owners of the company. 

The notes on pages 17 to 36 form part of these financial statements.

Page 11

 
John Hellyar & Company Limited
Registered number: 00694742

Consolidated balance sheet
As at 30 June 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 14 
224,377
-

Tangible assets
 15 
4,034,298
4,082,331

  
4,258,675
4,082,331

Current assets
  

Stocks
 17 
7,778,794
10,527,438

Debtors: amounts falling due within one year
 18 
7,108,351
6,484,685

Cash at bank and in hand
 19 
1,442,897
967,083

  
16,330,042
17,979,206

Creditors: amounts falling due within one year
 20 
(9,339,406)
(10,741,615)

Net current assets
  
 
 
6,990,636
 
 
7,237,591

Total assets less current liabilities
  
11,249,311
11,319,922

Creditors: amounts falling due after more than one year
 21 
(1,048,207)
(1,131,017)

Provisions for liabilities
  

Deferred taxation
 23 
(149,102)
(113,422)

Net assets
  
10,052,002
10,075,483


Capital and reserves
  

Called up share capital 
 24 
523,775
523,775

Capital redemption reserve
  
625
625

Foreign exchange reserve
  
(299,267)
(461,216)

Profit and loss account
  
9,826,869
10,012,299

  
10,052,002
10,075,483


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 13 February 2024.




D I Hellyar
Director

The notes on pages 17 to 36 form part of these financial statements.

Page 12

 
John Hellyar & Company Limited
Registered number: 00694742

Company balance sheet
As at 30 June 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 14 
224,377
-

Tangible assets
 15 
972,977
1,006,994

Investments
 16 
4,474,729
4,474,729

  
5,672,083
5,481,723

Current assets
  

Stocks
 17 
6,695,995
9,337,047

Debtors: amounts falling due within one year
 18 
8,252,388
8,819,504

Cash at bank and in hand
 19 
1,276,805
530,191

  
16,225,188
18,686,742

Creditors: amounts falling due within one year
 20 
(8,639,406)
(11,039,376)

Net current assets
  
 
 
7,585,782
 
 
7,647,366

Total assets less current liabilities
  
13,257,865
13,129,089

  

Creditors: amounts falling due after more than one year
 21 
(1,048,207)
(1,129,672)

Provisions for liabilities
  

Deferred taxation
 23 
(149,102)
(113,422)

Net assets
  
12,060,556
11,885,995


Capital and reserves
  

Called up share capital 
 24 
523,775
523,775

Capital redemption reserve
  
625
625

Profit and loss account brought forward
  
11,361,595
11,055,764

Profit for the year
  
237,414
379,160

Other changes in the profit and loss account

  

(62,853)
(73,329)

Profit and loss account carried forward
  
11,536,156
11,361,595

  
12,060,556
11,885,995


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 13 February 2024.


D I Hellyar
Director

The notes on pages 17 to 36 form part of these financial statements.

Page 13

 
John Hellyar & Company Limited
 

Consolidated statement of changes in equity
For the year ended 30 June 2023


Called up share capital
Capital redemption reserve
Foreign exchange reserve
Profit and loss account
Total equity

£
£
£
£
£


At 1 July 2021
523,775
625
(296,988)
10,054,120
10,281,532


Comprehensive income for the year

Profit for the year
-
-
-
31,508
31,508

Currency translation differences
-
-
(164,228)
-
(164,228)
Total comprehensive income for the year
-
-
(164,228)
31,508
(132,720)

Dividends
-
-
-
(73,329)
(73,329)



At 1 July 2022
523,775
625
(461,216)
10,012,299
10,075,483


Comprehensive income for the year

Loss for the year
-
-
-
(122,577)
(122,577)

Currency translation differences
-
-
161,949
-
161,949
Total comprehensive income for the year
-
-
161,949
(122,577)
39,372

Dividends
-
-
-
(62,853)
(62,853)


At 30 June 2023
523,775
625
(299,267)
9,826,869
10,052,002


Called up share capital
This represents the nominal value of shares that have been issued by the company.
Capital redemption reserve
The capital redemption reserve represents the nominal value of shares that have been repurchased by the company.
Profit and loss account
This reserve comprises all current and prior period retained profits and losses after deducting distributions made to the shareholders.
Foreign exchange reserve
This reserve comprises translation differences arising from the translation of financial statements of the group's foreign entity into sterling.

Page 14

 
John Hellyar & Company Limited
 

Company statement of changes in equity
For the year ended 30 June 2023


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£


At 1 July 2021
523,775
625
11,055,764
11,580,164


Comprehensive income for the year

Profit for the year
-
-
379,160
379,160

Dividends
-
-
(73,329)
(73,329)



At 1 July 2022
523,775
625
11,361,595
11,885,995


Comprehensive income for the year

Profit for the year
-
-
237,414
237,414

Dividends
-
-
(62,853)
(62,853)


At 30 June 2023
523,775
625
11,536,156
12,060,556


Page 15

 
John Hellyar & Company Limited
 

Consolidated statement of cash flows
For the year ended 30 June 2023

2023
2022
£
£

Cash flows from operating activities

(Loss)/profit for the financial year
(122,577)
31,508

Adjustments for:

Amortisation of intangible assets
53,032
-

Depreciation of tangible assets
332,873
320,384

Loss on disposal of tangible assets
19,972
5,189

Interest paid
62,781
51,831

Interest received
-
(21)

Taxation charge
108,676
68,889

Decrease/(increase) in stocks
2,748,644
(5,052,141)

(Increase)/decrease in debtors
(617,824)
316,717

(Decrease)/increase in creditors
(886,993)
1,264,486

Corporation tax (paid)
(12,494)
(175,443)

Net fair value losses recognised in P&L
-
(9,170)

Net cash generated from operating activities

1,686,090
(3,177,771)


Cash flows from investing activities

Purchase of intangible fixed assets
(277,409)
-

Purchase of tangible fixed assets
(133,605)
(427,361)

Sale of tangible fixed assets
4,300
-

Interest received
-
21

Net cash from investing activities

(406,714)
(427,340)

Cash flows from financing activities

Repayment of loans
(122,467)
(391,594)

Dividends paid
(62,853)
(73,329)

Interest paid
(62,781)
(51,831)

Foreign exchange gains/loss
(13,558)
(40,147)

Net cash used in financing activities
(261,659)
(556,901)

Net increase/(decrease) in cash and cash equivalents
1,017,717
(4,162,012)

Cash and cash equivalents at beginning of year
(1,814,379)
2,347,633

Cash and cash equivalents at the end of year
(796,662)
(1,814,379)


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,442,897
967,083

Bank overdrafts
(2,239,559)
(2,781,462)

(796,662)
(1,814,379)


Page 16

 
John Hellyar & Company Limited
 

 
Notes to the financial statements
For the year ended 30 June 2023

1.


General information

John Hellyar and Company Limited is a company incorporated in England and Wales, registered number 00694742. The registered office and principal place of business is Tyler Way, Swalecliffe, Whitstable, Kent, CT5 2RX.  The principal activities are the processing and sale of plastic materials.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

Page 17

 
John Hellyar & Company Limited
 

 
Notes to the financial statements
For the year ended 30 June 2023

2.Accounting policies (continued)

 
2.3

Going concern

In accordance with UK GAAP, the company annually assesses whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the ability of the group to continue as a going concern and meets its obligation as they become due for one year after the date that the financial statements are issued.  This evaluation is based on relevant conditions and events that are known or reasonably knowable at this date.  If substantial doubt exists, management will also assess whether there are effective plans in place to alleviate these conditions. 
 
Management has performed an evaluation detailed below, through to the date of signing of the accounts and determined that there are no conditions or events, considered in the aggregate, that raise substantial doubt about the company’s ability to continue as a going concern for one year after signing.
1. Cash flow - The management assesses the cash flow position of the company on a daily basis to ensure ongoing coverage and for the next 12 months. 
2. Customer Management - The management monitor customer demand on a weekly basis to understand and highlight any fluctuations and trends.
3. Supplier Management - Due to the events and aftermath of Covid, the management have reviewed the supply chain and hauliers that the company uses to ensure the best purchases are made and that the most reliable and cost effective haulage companies are being sourced and used.
4. Financial Analysis - The management have introduced a quarterly reforecasting model. This allows management to take appropriate steps to mitigate any risks identified.
5. Due to the world economic and political situation the management assess any risks to the business both internally and externally. The main areas under constant review are energy prices, and the labour markets. We are currently in an energy contract that has protected the company from any sharp increases. Regarding labour markets we have reviewed salaries and taken appropriate actions as well as offering a range of staff benefits to enhance the working environment. 
6. Corporate Governance - The management reviews the corporate governance in line with Companies Act 2006 and reviews any associated legislation.
Having considered all these areas, we consider the group is a going concern.  

Page 18

 
John Hellyar & Company Limited
 

 
Notes to the financial statements
For the year ended 30 June 2023

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is the Pound Sterling.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.6

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 19

 
John Hellyar & Company Limited
 

 
Notes to the financial statements
For the year ended 30 June 2023

2.Accounting policies (continued)

 
2.7

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Consolidated statement of comprehensive income in the same period as the related expenditure.

 
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.9

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Group in independently administered funds.

 
2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 20

 
John Hellyar & Company Limited
 

 
Notes to the financial statements
For the year ended 30 June 2023

2.Accounting policies (continued)

 
2.11

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

The estimated useful lives are as follows:
Computer Software - 5 years

 
2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following bases:

Freehold property
-
2-20% straight line
Plant and machinery
-
10-20% straight line
Motor vehicles
-
33% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.14

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Page 21

 
John Hellyar & Company Limited
 

 
Notes to the financial statements
For the year ended 30 June 2023

2.Accounting policies (continued)

 
2.15

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.16

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. 

 
2.17

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.18

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

 
2.19

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.20

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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, with 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Page 22

 
John Hellyar & Company Limited
 

 
Notes to the financial statements
For the year ended 30 June 2023

2.Accounting policies (continued)


2.20
Financial instruments (continued)

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
 
Page 23

 
John Hellyar & Company Limited
 

 
Notes to the financial statements
For the year ended 30 June 2023

2.Accounting policies (continued)


2.20
Financial instruments (continued)


Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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

Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an 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.
Derivatives, including 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. The Group does not currently apply hedge accounting for foreign exchange derivatives.

 
2.21

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders. 


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires the Directors to make judgments, estimates and assumptions that can affect the amounts reported for assets and liabilities, and the results for the year.  The nature of estimation is such that actual outcomes could differ significantly from those estimates.
The following judgments have had the most significant impact on amounts recognised in the financial statements:
Fixed assets
The group has a range of fixed assets, including freehold property, as shown in note 15.  The group has estimated the useful economic life and residual value of each class of assets in order to determine the appropriate rates of depreciation.  Each year the Directors consider whether there are any factors which would indicate a need to change the estimates.
Stock
In accordance with the policy in note 2.14, stocks are valued at the lower of cost or net realisable value.  The Directors therefore need to assess on a regular basis whether stock has been impaired or has become obsolescent and, where less than cost, the value that is likely to be realised.
 
Page 24

 
John Hellyar & Company Limited
 

 
Notes to the financial statements
For the year ended 30 June 2023

3.Judgments in applying accounting policies (continued)


Investments
In accordance with the policy in note 2.13 investments are measured at cost less any accumulated impairment. The directors need to assess on a regular basis as to whether the valuation of these investments is still appropriate and whether any impairment is required. Investments have been shown within note 16. 


4.


Turnover

Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
25,304,608
35,355,037

Rest of the world
10,770,952
7,124,976

36,075,560
42,480,013



5.


Other operating income

2023
2022
£
£

Other operating income
6,400
51,021

Government grants receivable
-
3,677

6,400
54,698



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Exchange differences
28,379
205,540

Depreciation of tangible fixed assets
331,887
320,384

Loss / (Gain) on fair value of derivative
-
(9,170)

Other operating lease rentals
5,148
-

Page 25

 
John Hellyar & Company Limited
 

 
Notes to the financial statements
For the year ended 30 June 2023

7.


Auditor's remuneration

During the year, the Group obtained the following services from the Company's auditor and its associates:


2023
2022
£
£

Fees payable to the Company's auditor and its associates for the audit of the consolidated and parent Company's financial statements
29,815
25,625

Fees payable to the Company's auditor and its associates in respect of:

Taxation compliance services
2,835
2,500

All non-audit services not included above
2,000
2,575


8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
1,724,953
1,819,087
1,582,330
1,487,788

Social security costs
245,750
237,205
168,521
178,791

Cost of defined contribution scheme
98,733
91,212
98,733
91,212

2,069,436
2,147,504
1,849,584
1,757,791


The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2023
        2022
        2023
        2022
            No.
            No.
            No.
            No.









Office and management
23
22
17
16



Manufacturing
35
35
23
26

58
57
40
42

Page 26

 
John Hellyar & Company Limited
 

 
Notes to the financial statements
For the year ended 30 June 2023

9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
379,658
373,212

Group contributions to defined contribution pension schemes
31,572
24,312

411,230
397,524


During the year retirement benefits were accruing to 3 directors (2022 - 3) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £154,784 (2022 - £153,986).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £18,208 (2022 - £11,931).


10.


Interest receivable

2023
2022
£
£


Other interest receivable
-
21


11.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
62,781
51,831


12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
74,589
13,594

Adjustments in respect of previous periods
5,842
-

Foreign tax


Foreign tax on income for the year
(7,435)
4,790

Total current tax
72,996
18,384

Deferred tax


Origination and reversal of timing differences
(113)
50,505

Changes to tax rates
35,793
-


Taxation on profit on ordinary activities
108,676
68,889
Page 27

 
John Hellyar & Company Limited
 

 
Notes to the financial statements
For the year ended 30 June 2023
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the effective rate of corporation tax in the UK of 20.5% (2022 - 19%). The differences are explained below:

2023
2022
£
£


(Loss)/profit on ordinary activities before tax
(13,901)
100,397


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 20.5% (2022 - 19%)
(2,849)
19,075

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
1,070
1,595

Capital allowances for year in excess of depreciation
947
(21,715)

Change to tax rates
35,793
-

Adjustments to tax charge in respect of prior periods
5,842
-

Foreign tax on income for the year
(7,435)
-

Other differences leading to an increase (decrease) in the tax charge
75,308
69,934

Total tax charge for the year
108,676
68,889


Factors that may affect future tax charges

There were no factors that may affect future tax charges.  The Company has capital tax losses of £269,414 to carry forward.
Hellyar Plastics Polska Sp. z o.o. has been set up in a special economic zone in Poland.  As a result there will be a significant level of tax credit available to utilise once the company starts generating taxable profits.  No adjustment has been made in these financial statements for this future tax benefit.


13.


Dividends

2023
2022
£
£


Dividends on ordinary shares
62,853
73,329

Page 28

 
John Hellyar & Company Limited
 

 
Notes to the financial statements
For the year ended 30 June 2023

14.


Intangible assets

Group





Computer software

£



Cost


Additions
277,409



At 30 June 2023

277,409



Amortisation


Charge for the year
53,032



At 30 June 2023

53,032



Net book value



At 30 June 2023
224,377



At 30 June 2022
-



Company




Computer software

£



Cost


Additions
277,409



At 30 June 2023

277,409



Amortisation


Charge for the year
53,032



At 30 June 2023

53,032



Net book value



At 30 June 2023
224,377



At 30 June 2022
-

Page 29

 
John Hellyar & Company Limited
 

 
Notes to the financial statements
For the year ended 30 June 2023

15.


Tangible fixed assets

Group






Freehold property
Plant and machinery
Motor vehicles
Total

£
£
£
£



Cost or valuation


At 1 July 2022
3,420,652
4,525,239
40,569
7,986,460


Additions
11,500
122,105
-
133,605


Disposals
(83,028)
(7,537)
(40,569)
(131,134)


Transfers between classes
(19,467)
19,467
-
-


Exchange adjustments
113,612
89,971
-
203,583



At 30 June 2023

3,443,269
4,749,245
-
8,192,514



Depreciation


At 1 July 2022
1,156,302
2,708,513
39,314
3,904,129


Charge for the year
61,855
270,390
628
332,873


Disposals
(59,384)
(7,536)
(39,942)
(106,862)


Exchange adjustments
7,632
20,444
-
28,076



At 30 June 2023

1,166,405
2,991,811
-
4,158,216



Net book value



At 30 June 2023
2,276,864
1,757,434
-
4,034,298



At 30 June 2022
2,264,350
1,816,726
1,255
4,082,331

Included in land and buildings is freehold land at a cost of £208,787 (2022: £208,787), which is not depreciated.

Page 30

 
John Hellyar & Company Limited
 

 
Notes to the financial statements
For the year ended 30 June 2023

Company






Freehold property
Plant and machinery
Motor vehicles
Total

£
£
£
£

Cost or valuation


At 1 July 2022
1,386,855
3,104,267
40,569
4,531,691


Additions
11,500
122,105
-
133,605


Disposals
(59,384)
(7,537)
(40,569)
(107,490)


Transfers between classes
(19,467)
19,467
-
-



At 30 June 2023

1,319,504
3,238,302
-
4,557,806



Depreciation


At 1 July 2022
1,048,531
2,436,852
39,314
3,524,697


Charge for the year
23,304
143,062
628
166,994


Disposals
(59,384)
(7,536)
(39,942)
(106,862)



At 30 June 2023

1,012,451
2,572,378
-
3,584,829



Net book value



At 30 June 2023
307,053
665,924
-
972,977



At 30 June 2022
338,324
667,415
1,255
1,006,994

Included in land and buildings is freehold land at a cost of £76,843 (2022: £76,843), which is not depreciated.







16.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 July 2022
4,474,729



At 30 June 2023
4,474,729




Page 31

 
John Hellyar & Company Limited
 

 
Notes to the financial statements
For the year ended 30 June 2023

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Class of shares

Holding

Hellyar Plastics Limited
Ordinary
100%
Hellyar Reclaim Limited
Ordinary
100%
Hellyar Plastics Polska Sp. z o.o
Ordinary
100%

Hellyar Plastics Polska Sp. z o.o. is a company registered in Poland, registered office address, 00-203 Warszawa, ul. Bonifraterska 17.
The registered office of the two UK dormant subsidiaries is the same as that of the group.


17.


Stocks

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Raw materials
6,386,520
9,376,272
5,641,134
8,161,067

Packaging and spares
166,067
152,136
166,067
176,950

Finished goods
1,226,207
999,030
888,794
999,030

7,778,794
10,527,438
6,695,995
9,337,047


The above balances are shown net of a provision of £114,329 (2022: £114,665) in respect of slow-moving stock.


18.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
5,791,317
5,872,635
4,934,938
5,528,161

Amounts owed by group undertakings
-
-
2,020,634
2,928,763

Other debtors
16,252
203,377
997
5,842

Prepayments and accrued income
1,300,782
399,503
1,295,819
347,568

Financial instruments
-
9,170
-
9,170

7,108,351
6,484,685
8,252,388
8,819,504


Financial instruments represent foreign exchange forward contracts, measured at fair value using observable forward exchange rates and interest rates corresponding to the maturity of the contract.
The company has an invoice discounting agreement with full recourse covering the majority of its trade debtors.  The gross amount of the debts which are invoice discounted as at 30 June 2023 is £3,828,940 (2022: £5,097,356).

Page 32

 
John Hellyar & Company Limited
 

 
Notes to the financial statements
For the year ended 30 June 2023

19.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
1,442,897
967,083
1,276,805
530,191

Less: invoice discounting facility
(2,239,559)
(2,781,462)
(2,239,559)
(2,781,462)

(796,662)
(1,814,379)
(962,754)
(2,251,271)



20.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Invoice discounting facility
2,239,559
2,781,462
2,239,559
2,781,462

Bank loans
105,679
146,681
105,679
146,681

Trade creditors
6,329,859
6,474,988
5,800,234
5,931,363

Amounts owed to group undertakings
-
-
976
1,124,770

Corporation tax
93,605
27,261
74,589
13,594

Other taxation and social security
108,453
631,135
41,136
533,326

Other creditors
193,824
145,162
168,487
145,162

Accruals and deferred income
268,427
534,926
208,746
363,018

9,339,406
10,741,615
8,639,406
11,039,376


Included within trade creditors is a balance of £174,702 (2022: £106,528) which relates to secured amounts owed to HM Revenue and Customs and is secured against monies held by the bank.

Page 33

 
John Hellyar & Company Limited
 

 
Notes to the financial statements
For the year ended 30 June 2023

21.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
1,048,207
1,129,672
1,048,207
1,129,672

Accruals and deferred income
-
1,345
-
-

1,048,207
1,131,017
1,048,207
1,129,672


The loan is to be repaid over a 5 year period from the date of the first drawdown with interest only being paid for the first year. Interest will be charged at 2.47% per annum over the Base rate.
There are a number of charges held against John Hellyar and Company and its group entities as follows:
- Legal charge dated 14th March 2019 over freehold property known as Land on the northwest side of, Tyler Way & Plot 8 Colewood Road, Industrial Est & land & buildings on, the South West side of Colewood, Road. Swalecliffe, Whitstable. 
- Unlimited Multilateral Guarantee dated 18 June 2019 given by John Hellyar and Company Limited, Hellyar Plastics Polska Sp. z o.o. 
- Debenture including Fixed Charge over all present freehold and leasehold property; First Fixed Charge over book and other debts, chattels, goodwill and uncalled capital, both present and future; and First Floating Charge over all assets and undertaking both present and future dated 14 March 2019. 
- Continuing legal charge of security for any money and liabilities becoming due from John Hellyar and Co to the bank dated 25 July 2019. 


22.


Loans


Analysis of the maturity of loans is given below:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Amounts falling due within one year

Bank loans
105,679
146,681
105,679
146,681

Amounts falling due 1-2 years

Bank loans
114,426
150,496
114,426
150,496

Amounts falling due 2-5 years

Bank loans
933,781
979,176
933,781
979,176

1,153,886
1,276,353
1,153,886
1,276,353


Page 34

 
John Hellyar & Company Limited
 

 
Notes to the financial statements
For the year ended 30 June 2023

23.


Deferred taxation


Group



2023
2022


£

£






At beginning of year
(113,422)
(62,917)


Charged to profit or loss
(35,680)
(50,505)



At end of year
(149,102)
(113,422)

Company


2023
2022


£

£






At beginning of year
(113,422)
(62,917)


Charged to profit or loss
(35,680)
(50,505)



At end of year
(149,102)
(113,422)

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Accelerated capital allowances
(149,217)
(112,812)
(149,217)
(112,812)

Other timing differences
115
(610)
115
(610)

(149,102)
(113,422)
(149,102)
(113,422)


24.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



1,047,550 Ordinary A shares of £0.50 each
523,775
523,775


Page 35

 
John Hellyar & Company Limited
 

 
Notes to the financial statements
For the year ended 30 June 2023
25.


Analysis of net debt





At 1 July 2022
Cash flows
Other non-cash changes
At 30 June 2023
£

£

£

£

Cash at bank and in hand

967,083

471,675

4,139

1,442,897

Invoice discounting facility

(2,781,462)

541,903

-

(2,239,559)

Debt due after 1 year

(1,129,672)

-

81,465

(1,048,207)

Debt due within 1 year

(146,681)

186,107

(145,105)

(105,679)


(3,090,732)
1,199,685
(59,501)
(1,950,548)


26.


Capital commitments

At 30 June 2023 the Group and the Company had future minimum capital commitments of £121,885.






27.


Commitments under operating leases

At 30 June 2023 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Not later than 1 year
6,178
-
6,178
-

Later than 1 year and not later than 5 years
14,415
-
14,415
-

20,593
-
20,593
-


28.


Related party transactions

The company considers the key management personnel to be the Directors and members of senior management.  The compensation paid or payable to key management for employee services is consistent with the Directors remuneration, as disclosed within note 9.


29.


Controlling party

The company is ultimately controlled by D I Hellyar.


Page 36