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Registration number: 10920564

Prepared for the registrar

PM Hawkes Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 October 2023

 

PM Hawkes Limited

Contents

Company Information

1

Balance Sheet

2

Notes to the Unaudited Financial Statements

3 to 10

 

PM Hawkes Limited

Company Information

Directors

Mr P Hawkes

Mrs M Hawkes

Company secretary

Mr P Hawkes

Registered office

231 Worcester Road
Malvern
Worcestershire
WR14 1SU

Accountants

Hazlewoods LLP
Staverton Court
Staverton
Cheltenham
GL51 0UX

 

PM Hawkes Limited

(Registration number: 10920564)
Balance Sheet as at 31 October 2023

Note

2023
 £

2022
 £

Fixed assets

 

Intangible assets

4

1,205,309

1,272,582

Tangible assets

5

15,932

19,544

Investments

6

1,000

1,000

 

1,222,241

1,293,126

Current assets

 

Stocks

36,240

30,345

Debtors

7

183,374

154,643

Cash at bank and in hand

 

47,047

56,594

 

266,661

241,582

Creditors: Amounts falling due within one year

8

(1,286,418)

(1,245,540)

Net current liabilities

 

(1,019,757)

(1,003,958)

Total assets less current liabilities

 

202,484

289,168

Creditors: Amounts falling due after more than one year

8

(96,430)

(144,695)

Deferred tax liabilities

10

(3,921)

(4,856)

Net assets

 

102,133

139,617

Capital and reserves

 

Called up share capital

11

1,000

1,000

Profit and loss account

101,133

138,617

Total equity

 

102,133

139,617

For the financial year ending 31 October 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 6 March 2024 and signed on its behalf by:
 


Mr P Hawkes
Director

 

PM Hawkes Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
231 Worcester Road
Malvern
Worcestershire
WR14 1SU
England

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

 

PM Hawkes Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

Tax

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Fixtures and fittings

15% reducing balance basis

Computer equipment

25% reducing balance basis

Motor vehicles

25% reducing balance basis

Intangible assets

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

20 years straight line

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

 

PM Hawkes Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

PM Hawkes Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

Financial instruments


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

 

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was as follows:

 

PM Hawkes Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

 

4

Intangible assets

Goodwill
 £

Cost

At 1 November 2022

1,345,461

At 31 October 2023

1,345,461

Amortisation

At 1 November 2022

72,879

Amortisation charge

67,273

At 31 October 2023

140,152

Carrying amount

At 31 October 2023

1,205,309

At 31 October 2022

1,272,582

On 31 October 2017, the company acquired the entire share capital of SJ & JW Evans Limited for a total consideration of £1,303,669, including acquisition costs of £27,027. On 1 October 2021, the trade, assets and liabilities of the Company were hived up into the company with the amount outstanding remaining on intercompany account, of £121,433. This resulted in an apparent over valuation of the investment in the subsidiary, although there was no overall loss to the company. The Companies Act 2006 requires that where an over valuation is expected to be permanent, the investment should be written down accordingly. The directors considered that, as there had been no overall loss to the company, such treatment would fail to give a true and fair view. The potential impairment in the value of the investment of £1,302,669 has been instead reallocated to goodwill, which is amortised over twenty years. The effect of this on the company balance sheet of the departure from the requirements of the Companies Act 2006 is to recognise goodwill of £1,302,669 and accumulated amortisation of £135,694.

 

5

Tangible assets

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost

At 1 November 2022

16,876

7,428

24,304

At 31 October 2023

16,876

7,428

24,304

Depreciation

At 1 November 2022

2,786

1,974

4,760

Charge for the year

2,248

1,364

3,612

At 31 October 2023

5,034

3,338

8,372

Carrying amount

At 31 October 2023

11,842

4,090

15,932

At 31 October 2022

14,090

5,454

19,544

 

PM Hawkes Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

 

6

Investments

2023
£

2022
£

Investments in subsidiaries

1,000

1,000

Subsidiaries

£

Cost

At 1 November 2022

1,000

At 31 October 2023

1,000

Carrying amount

At 31 October 2023

1,000

At 31 October 2022

1,000

 

7

Debtors

2023
 £

2022
 £

Trade debtors

160,946

129,840

Other debtors

12,409

13,671

Prepayments

10,019

11,132

 

183,374

154,643

 

8

Creditors

Note

2023
 £

2022
 £

Due within one year

 

Loans and borrowings

9

1,097,568

1,025,921

Trade creditors

 

137,605

185,659

Amounts due to related parties

13

374

1,000

Social security and other taxes

 

45,794

26,660

Outstanding defined contribution pension costs

 

167

-

Accrued expenses

 

4,910

6,300

 

1,286,418

1,245,540

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

9

96,430

144,695

2023
£

2022
£

After more than five years by instalments

18,460

59,137

-

-

 

PM Hawkes Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

 

9

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Bank borrowings

19,493

21,390

Redeemable preference shares

97,721

97,721

Other borrowings

980,354

906,810

1,097,568

1,025,921

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

96,430

144,695

The bank loan is secured over the assets of the company. A cross guarantee is in place between SJ & JW Evans Limited (Subsidiary) and the company.

 

10

Deferred tax

Deferred tax assets and liabilities

2023

Liability
£

Capital allowances in excess of depreciation

3,921

3,921

2022

Liability
£

Capital allowances in excess of depreciation

4,856

4,856

 

11

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary A shares of £1 each

500

500

500

500

Ordinary B shares of £1 each

500

500

500

500

 

1,000

1,000

1,000

1,000

The different classes of share referred to above carry separate rights to dividends but, in all other respects, rank pari passu.

 

PM Hawkes Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

 

12

Financial commitments

Operating leases

The total of future minimum lease payments is as follows:

2023
 £

2022
 £

Not later than one year

13,500

13,500

Later than one year and not later than five years

54,000

54,000

Later than five years

-

13,500

67,500

81,000

The amount of non-cancellable operating lease payments recognised as an expense during the year was £13,500 (2022 - £13,500).

 

13

Related party transactions

Summary of transactions with key management

Key management personnel are considered to be the directors of the company.

At the balance sheet date, the company owed the directors £980,354 (2022 - £906,810). There are no fixed repayment terms and no interest is charged on the loan.

 

Summary of transactions with all subsidiaries

SJ & JW Evans Limited
(100% owned subsidiary)
At the balance sheet date, the company owed £374 to SJ & JW Evans Limited (2022 - £1,000). There are no fixed repayment terms and no interest is charged on the loan.