Company registration number 00105398 (England and Wales)
HENRY ALTY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
HENRY ALTY LIMITED
COMPANY INFORMATION
Directors
J.C. Fairbairn
A. Price
S.J. Gautrey
Secretary
S.J. Gautrey
Company number
00105398
Registered office
Alty's Liverpool Road
Much Hoole
Preston
Lancashire
PR4 5JT
Auditor
Jackson Stephen LLP
James House
Stonecross Business Park
Yew Tree Way
Warrington
Cheshire
WA3 3JD
Business address
Alty's Liverpool Road
Much Hoole
Preston
Lancashire
PR4 5JT
Bankers
HSBC Bank plc
49a Fishergate
Preston
Lancashire
PR1 8BH
HENRY ALTY LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of income and retained earnings
7
Balance sheet
8
Statement of cash flows
9
Notes to the financial statements
10 - 22
HENRY ALTY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 1 -

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

Review of the business

We have faced a number of challenges this year, with a general downturn in the market, leading to deflationary prices on some products and fierce competition for orders. We have fought hard to maintain our customer base and win new business wherever possible. We have also kept a tight grip on overheads and reduced costs when practicable.

Principal risks and uncertainties

In terms of financial risk management, the company considers that it has limited exposure to various aspects of financial risk. All of the company's revenue is invoiced in sterling, and all of its operations and costs arise within the UK.

 

We are always facing the possibility of bad debts, but we work hard to limit the risks and constantly monitor credit limits and payment schedules.

Key performance indicators

Turnover decreased by 3.7% from £10,974,875 to £10,572,074 but, due to reduced overheads, the pre-tax profit was only down by £42,000. Although we are facing a difficult year to come we are confident that our loyal customer base and our ability to react quickly to changing market conditions, will stand us in good stead to weather any storms.

On behalf of the board

A. Price
Director
1 March 2024
HENRY ALTY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -

The directors present their report for the year ended 31 October 2023.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £966,000.

Directors

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

J.C. Fairbairn
A. Price
S.J. Gautrey
Financial instruments
Liquidity risk

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

Interest rate risk

The company is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. The company uses interest rate derivatives to manage the mix of fixed and variable rate debt so as to reduce its exposure to changes in interest rates.

Credit risk

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

 

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

Auditor

The auditor, Jackson Stephen LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

HENRY ALTY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 3 -
Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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

Strategic report

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

Statement of disclosure to auditor

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

On behalf of the board
A. Price
Director
1 March 2024
HENRY ALTY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HENRY ALTY LIMITED
- 4 -

Qualified opinion

We have audited the financial statements of Henry Alty Limited (the 'company') for the year ended 31 October 2023 which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, except for the effects of the matter described in the Basis for qualified opinion paragraph, the financial statements:

Basis for qualified opinion

We were not appointed as auditor of the company until after 31 October 2022 and thus did not observe the counting of physical inventories at the start of the current year. We were unable to satisfy ourselves by alternative means concerning inventory quantities held at 31 October 2022, which are included in the balance sheet at £1,249,915. Since opening inventories enter into the determination of the financial performance and cash flows, we were unable to determine whether adjustments might have been necessary in respect of the profit for the year reported in the statement of income and retained earnings and the net cash flows from operating activities reported in the statement of cash flows.

 

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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified 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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the inventory quantities held at 31 October 2022. We have concluded that where the other information refers to the pre-tax profit for the current year, it may be materially misstated for the same reason.

HENRY ALTY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HENRY ALTY LIMITED
- 5 -

Qualified opinions on other matters prescribed by the Companies Act 2006

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

Except for the matter described in the basis for qualified opinion section of our report, in the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report.

 

Arising solely from the limitation on the scope of our work relating to inventory, referred to above:

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities and 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.

 

Based on our understanding of the company and sector, we identified that the principal risks of non-compliance with laws and regulations related to, but was not limited to, the Companies Act 2006, UK tax, employment, pension and health and safety legislation and 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.

 

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 management bias in accounting estimates and judgements and the risk of fraud in revenue recognition.

HENRY ALTY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HENRY ALTY LIMITED
- 6 -

Our procedures to respond to risks identified included the following:

 

 

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

 

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

Other matters

The comparative period financial statements were unaudited.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Peter Atkinson F.C.A.
Senior Statutory Auditor
For and on behalf of Jackson Stephen LLP
10 March 2024
Chartered Accountants
Statutory Auditor
James House
Stonecross Business Park
Yew Tree Way
Warrington
Cheshire
WA3 3JD
HENRY ALTY LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
10,572,074
10,974,875
Cost of sales
(7,283,986)
(7,589,232)
Gross profit
3,288,088
3,385,643
Distribution costs
(1,104,607)
(1,119,206)
Administrative expenses
(769,560)
(772,223)
Other operating income
14,613
15,600
Operating profit
4
1,428,534
1,509,814
Interest receivable and similar income
8
50,618
12,083
Interest payable and similar expenses
9
(2,379)
(3,473)
Amounts written off investments
10
-
352
Profit before taxation
1,476,773
1,518,776
Tax on profit
11
(333,856)
(282,730)
Profit for the financial year
1,142,917
1,236,046
Retained earnings brought forward
5,675,587
5,279,541
Dividends
12
(966,000)
(840,000)
Retained earnings carried forward
5,852,504
5,675,587
HENRY ALTY LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2023
31 October 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
14
2,383,632
2,356,988
Investment property
15
-
0
122,105
Investments
16
65,532
428,045
2,449,164
2,907,138
Current assets
Stocks
17
1,482,519
1,592,094
Debtors
18
1,895,782
1,348,576
Cash at bank and in hand
1,934,546
1,771,110
5,312,847
4,711,780
Creditors: amounts falling due within one year
19
(1,633,539)
(1,620,119)
Net current assets
3,679,308
3,091,661
Total assets less current liabilities
6,128,472
5,998,799
Creditors: amounts falling due after more than one year
20
(15,768)
(54,120)
Provisions for liabilities
Deferred tax liability
22
190,200
199,092
(190,200)
(199,092)
Net assets
5,922,504
5,745,587
Capital and reserves
Called up share capital
24
70,000
70,000
Profit and loss reserves
5,852,504
5,675,587
Total equity
5,922,504
5,745,587
The financial statements were approved by the board of directors and authorised for issue on 1 March 2024 and are signed on its behalf by:
A. Price
Director
Company registration number 00105398 (England and Wales)
HENRY ALTY LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 9 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
1,154,807
1,252,991
Interest paid
(2,379)
(3,473)
Income taxes paid
(282,992)
(239,937)
Net cash inflow from operating activities
869,436
1,009,581
Investing activities
Purchase of tangible fixed assets
(281,863)
(233,989)
Proceeds from disposal of tangible fixed assets
67,600
50,892
Purchase of investment property
(1,944)
-
0
Proceeds from disposal of investment property
117,000
-
0
Proceeds from disposal of investments
362,513
(79,256)
Interest received
50,618
12,083
Net cash generated from/(used in) investing activities
313,924
(250,270)
Financing activities
Payment of finance leases obligations
(53,924)
(66,319)
Dividends paid
(966,000)
(840,000)
Net cash used in financing activities
(1,019,924)
(906,319)
Net increase/(decrease) in cash and cash equivalents
163,436
(147,008)
Cash and cash equivalents at beginning of year
1,771,110
1,918,118
Cash and cash equivalents at end of year
1,934,546
1,771,110
HENRY ALTY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 10 -
1
Accounting policies
Company information

Henry Alty Limited is a private company limited by shares incorporated in England and Wales. The registered office is Alty's Liverpool Road, Much Hoole, Preston, Lancashire, PR4 5JT. The company has no single principal place of business.

 

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

1.1
Accounting convention

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

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

1.2
Going concern

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

1.3
Turnover

Turnover represents amounts receivable for horticultural and building supplies sold through the company's various locations, before the balance sheet date and net of VAT and trade discounts.

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

1.4
Tangible fixed assets

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

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

Freehold buildings
2% per annum straight line basis
Plant and machinery
10% and 6.67% per annum straight line basis
Fixtures, fittings & equipment
10-20% per annum straight line basis
Motor vehicles
15-25% per annum straight line basis

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

1.5
Investment properties

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

HENRY ALTY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 11 -
1.6
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Transaction costs are expensed to profit or loss as incurred. Changes in fair value are recognised in other comprehensive income except to the extent that a gain reverses a loss previously recognised in profit or loss, or a loss exceeds the accumulated gains recognised in equity; such gains and loss are recognised in profit or loss.

1.7
Impairment of fixed assets

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

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

 

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

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials.

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

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

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

 

Financial instruments are recognised in the company's balance sheet when the company 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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

HENRY ALTY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 12 -
Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

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

 

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

 

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

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

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

1.12
Taxation

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

HENRY ALTY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 13 -
Current tax

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

Deferred tax

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

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
Employee benefits

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

 

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

 

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

1.14
Retirement benefits

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

1.15
Leases

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

 

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

HENRY ALTY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 14 -
2
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 amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

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

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Revaluation of investment properties

The company carries its investment properties at fair value, with changes in fair value being recognised in profit or loss.

Esimated useful economic lives and residual value of fixed assets

Depreciation of tangible fixed assets has been based on estimated useful economic lives and residual values deemed appropriate by the directors.

Key sources of estimation uncertainty

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

Bad debt provision

In calculating provisions, directors review the trade debtors and consider the likelihood of recoverability.

Stock provision

In calculating the closing stock at the 31 October 2023, the directors have reviewed the carrying value of the stock as at the year end, including any slow moving, damaged or obsolete stock.

3
Turnover and other revenue

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

2023
2022
£
£
Turnover analysed by class of business
UK sales
10,572,074
10,974,875
2023
2022
£
£
Other revenue
Interest income
50,618
12,083
HENRY ALTY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 15 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
202,367
200,102
Profit on disposal of tangible fixed assets
(14,748)
(8,610)
Loss on disposal of investment property
7,049
-
0
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
10,200
-
0
6
Employees

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

2023
2022
Number
Number
Selling and distribution
22
25
Administration
2
2
Directors
3
3
Total
27
30

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,051,833
1,143,800
Social security costs
111,392
105,356
Pension costs
124,324
50,454
1,287,549
1,299,610
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
242,160
188,463
Company pension contributions to defined contribution schemes
84,410
143,912
326,570
332,375
HENRY ALTY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
7
Directors' remuneration
(Continued)
- 16 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
149,491
160,953
Company pension contributions to defined contribution schemes
19,410
44,410

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).

8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
50,618
12,057
Other interest income
-
0
26
Total income
50,618
12,083
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
50,618
12,057
9
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
2,379
3,473
10
Amounts written off investments
2023
2022
£
£
Other gains and losses
-
352
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
327,548
283,018
Adjustments in respect of prior periods
15,200
(402)
Total current tax
342,748
282,616
HENRY ALTY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
11
Taxation
2023
2022
£
£
(Continued)
- 17 -
Deferred tax
Origination and reversal of timing differences
(8,892)
114
Total tax charge
333,856
282,730

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

2023
2022
£
£
Profit before taxation
1,476,773
1,518,776
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
369,193
288,567
Tax effect of expenses that are not deductible in determining taxable profit
50,347
39,112
Tax effect of income not taxable in determining taxable profit
(3,890)
(1,636)
Permanent capital allowances in excess of depreciation
(51,995)
(43,025)
Under/(over) provided in prior years
15,200
(402)
Deferred tax
(8,892)
114
Effect of change in tax rate
(36,107)
-
0
Taxation charge for the year
333,856
282,730

Deferred tax has been calculated using a rate of 25% (2022: 25%).

 

A UK Corporation tax rate of 25% was announced in the Chancellor's Budget of 3 March 2021, and applied from 1 April 2023. Prior to this, the UK Corporation tax rate was 19%. Accordingly, the derived Corporation tax rate for the accounting period ended 31 December 2023 is 22.52%. Deferred tax has been calculated at 25%.

12
Dividends
2023
2022
£
£
Interim paid
966,000
840,000
13
Impairments

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

HENRY ALTY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
13
Impairments
(Continued)
- 18 -

Reversals of previous impairment losses have been recognised in profit or loss as follows:

2023
2022
Notes
£
£
In respect of:
Fixed asset investments
16
-
352
Recognised in:
Amounts written off investments
-
352
14
Tangible fixed assets
Freehold buildings
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 November 2022
1,778,351
358,828
313,581
704,550
3,155,310
Additions
17,410
2,811
26,080
235,562
281,863
Disposals
-
0
(2,855)
(14,195)
(181,350)
(198,400)
At 31 October 2023
1,795,761
358,784
325,466
758,762
3,238,773
Depreciation and impairment
At 1 November 2022
206,808
63,216
215,258
313,040
798,322
Depreciation charged in the year
25,280
24,103
36,111
116,873
202,367
Eliminated in respect of disposals
-
0
(2,100)
(13,279)
(130,169)
(145,548)
At 31 October 2023
232,088
85,219
238,090
299,744
855,141
Carrying amount
At 31 October 2023
1,563,673
273,565
87,376
459,018
2,383,632
At 31 October 2022
1,571,543
295,612
98,323
391,510
2,356,988

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

2023
2022
£
£
Motor vehicles
71,629
99,811
HENRY ALTY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 19 -
15
Investment property
2023
£
Fair value
At 1 November 2022
122,105
Additions
1,944
Disposals
(124,049)
At 31 October 2023
-
0
16
Fixed asset investments
2023
2022
£
£
Listed investments
5,133
5,133
Unlisted investments
60,399
422,912
65,532
428,045
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 November 2022
428,045
Disposals
(362,513)
At 31 October 2023
65,532
Carrying amount
At 31 October 2023
65,532
At 31 October 2022
428,045
17
Stocks
2023
2022
£
£
Finished goods and goods for resale
1,482,519
1,592,094
18
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,652,976
1,129,608
Other debtors
1,062
-
0
Prepayments and accrued income
241,744
218,968
1,895,782
1,348,576
HENRY ALTY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 20 -
19
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under finance leases
21
38,352
53,924
Trade creditors
731,723
780,099
Corporation tax
342,748
282,992
Other taxation and social security
166,523
140,677
Other creditors
354
246
Accruals and deferred income
353,839
362,181
1,633,539
1,620,119

Included in other creditors are obligations under finance leases of £38,352 (2022: £53,924) which are secured on the assets to which they relate.

20
Creditors: amounts falling due after more than one year
2023
2022
£
£
Obligations under finance leases
21
15,768
54,120

Obligations under finance leases of £15,768 (2022: £54,120) are secured on the assets to which they relate.

21
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
38,352
53,924
In two to five years
15,768
54,120
54,120
108,044

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

 

Finance leases are secured on the assets acquired.

HENRY ALTY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 21 -
22
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
207,700
199,092
Retirement benefit obligations
(17,500)
-
190,200
199,092
2023
Movements in the year:
£
Liability at 1 November 2022
199,092
Credit to profit or loss
(8,892)
Liability at 31 October 2023
190,200

The deferred tax liability set out above is expected to reverse within 60 months and relates to accelerated capital allowances that are expected to mature within the same period.

23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
124,324
50,454

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

24
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
70,000
70,000
70,000
70,000
HENRY ALTY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 22 -
25
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
1,142,917
1,236,046
Adjustments for:
Taxation charged
333,856
282,730
Finance costs
2,379
3,473
Investment income
(50,618)
(12,083)
Gain on disposal of tangible fixed assets
(14,748)
(8,610)
Loss on disposal of investment property
7,049
-
0
Depreciation and impairment of tangible fixed assets
202,367
200,102
Other gains and losses
-
(352)
Movements in working capital:
Decrease/(increase) in stocks
109,575
(186,791)
Increase in debtors
(547,206)
(7,819)
Decrease in creditors
(30,764)
(253,705)
Cash generated from operations
1,154,807
1,252,991
26
Analysis of changes in net funds
1 November 2022
Cash flows
31 October 2023
£
£
£
Cash at bank and in hand
1,771,110
163,436
1,934,546
Obligations under finance leases
(108,044)
53,924
(54,120)
1,663,066
217,360
1,880,426
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