REGISTERED NUMBER: 13453302 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
FOR |
HBS GROUP HOLDINGS LIMITED |
REGISTERED NUMBER: 13453302 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
FOR |
HBS GROUP HOLDINGS LIMITED |
HBS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13453302) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Consolidated Statement of Comprehensive Income | 11 |
Consolidated Balance Sheet | 13 |
Company Balance Sheet | 14 |
Consolidated Statement of Changes in Equity | 15 |
Company Statement of Changes in Equity | 16 |
Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Cash Flow Statement | 18 |
Notes to the Consolidated Financial Statements | 20 |
HBS GROUP HOLDINGS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MARCH 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
1st Floor |
Ocean Village Innovation Centre |
Ocean Way |
Southampton |
Hampshire |
SO14 3JZ |
HBS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13453302) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
The directors present their strategic report of the company and the group for the year ended 31 March 2023. |
REVIEW OF BUSINESS |
Turnover for the Group during the year decreased from £16.4m to £15.5m. Gross profit margin decreased to 11% (2022: 14%). The Group recorded a loss before tax of £1.1m compared to a loss of £0.99m in the prior year. |
The main contributing factor to the decrease in overall gross profit margin is the increasing cost of materials and labour. Material cost increases continued to be volatile with regular increases being received, this was due to supply chain disruptions and rising inflation having a direct impact on manufacturing costs. |
Coming out of the pandemic, HBS had a strong pipeline of work to deliver which unfortunately did not materialise into profit as material prices increase went up an exceptional amount almost on a monthly basis, significantly impacting gross profit. This was exacerbated by the war in Ukraine which is having a knock on impact on the energy crisis, increasing costs for the manufacturers, further impacting the cost of living in the UK, the uncertainty in interest rates and volatility in material supply chain availability and pricing, this however has now been significantly mitigated for future works due to change in process and instruction from the management team. |
One of the residual impacts of the downturn in the new build residential market that the Group has been exposed to was its impact on the Group's ability to win work, as there was a significant slowdown in developers decision making process resulting in the same opportunities being tendered multiple times over. A key contributor to this is the hybrid system of office and home working which in many cases has stifled communications, resulting in developments taking a lot longer to transition from planning to delivery stages. HBS have adapted their systems to minimise the impact of this and maximise their competitiveness and diversified to the commercial market. |
Labour costs increased due to a number of emerging small subcontractors with significantly smaller overheads, who were able to submit considerably lower bids, which the developers were eager to take advantage of to make their reduced outlets as profitable as possible creating more demand for our skilled labour workforce which increased their costs. |
The Group saw net assets decrease from £5.4m to £4.1m. The cash position has decreased with cash outflow of £421k compared to a cash inflow in 2022 of £573k. This is due to the movement in working capital. |
HBS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13453302) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The Group is reliant on work in the domestic new build market and any downturn in this market will have a negative impact on the Group's growth and demand for its services. In the business review, we detail the practical impacts that this has had on the Group. |
One primary risk going forward is the possibility of demand for new housing dropping and confidence within the developers and their sales dropping resulting in lower production and revenue. This risk is being amplified by external factors impacting the industry such as rising inflation, the Bank of England's reaction and the energy crisis which all stand to detour home buyers. The Group has a wide portfolio of clients all of whom are in a strong position to implement measures to help mitigate the impact of this risk and support the housing market. |
The Group monitors cash flow as part of its day to day control procedures. The directors and management considers cash flow on a weekly basis and ensures that appropriate facilities are available to be drawn upon as necessary. |
Information on exposure to price risk, credit risk, liquidity risk and cash flow risk: |
Financial instruments |
The Group uses financial instruments comprising cash and items such as trade debtors ant trade creditors that arise directly from its operations, as well as deploying instruments such as an overdraft facility, bank loans and hire purchase contracts to maintain working capital. The Group's business is conducted in £ Sterling and has negligible direct currency risk. |
Credit risk |
The Group's credit risk is primarily attributable to its trade debtors. Credit risk is managed by running credit checks on new customers and by monitoring payments against contractual agreements. |
Liquidity risk |
The Group seek to manage liquidity risk by ensuring that fixed assets and working capital levels are controlled and by ensuring sufficient liquidity is available to meet foreseeable needs. |
Cash flow risk |
The Group monitors cash flow as part of its day to day control procedures. The directors and management consider cash flow on a weekly basis and ensures that appropriate facilities are available to be drawn upon as necessary. |
Price risk |
The Group's direct exposure to commodity price risk is managed by continually monitoring customer and supplier process and contracts. |
HBS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13453302) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
FUTURE DEVELOPMENTS |
Management forecasts the turnover for the Group from the new build residential market plateauing and potentially receiving a minor decrease. This decrease is driven by house builder uncertainty in their forecasted sales of homes. Many developers have reported a forecast which shows a reduction in the number of units they plan to sale, so the Group therefore believes it is likely the slower production of units will continue for FY23-24. However, due to continued investment with the work winning team and a strong senior management team to conduct business development the Group is looking to mitigate a reduction in revenue from the housing market by diversifying its clients base and developing revenue from other workstreams and the commercial market. This will mitigate a decrease in new build residential market and yield a projected increase in turnover of 4% (£0.6m) for the year ended 31 March 2024. |
Projected gross profit margin for the year ended 31 March 2024 is 16% (2023: 11%). The main contributing factors to this increase is a forecast in the settling of material cost increases, being in line with industry norms. This will be reinforced by Developer pressure to reduce costs and limit any increases by the manufacturers. As well as this, the Group has put in place much more stringent control measures to prevent over ordering and cost control on material pricing. Additionally, the increase in GPM will be further supported as the Group has reduced its labour rates, which has all had a direct positive impact on the cost of sales. |
The projected cash position for the Group at 31 March 2024 is forecasting a net cash outflow of circa £800k, this is primarily driven by movement in working capital and the projected loss for the year. |
Forecasts beyond April 2024 have the Group on a positive trajectory by maintaining its revenue and gross profit at sustainable levels continuing to achieve profitability for the financial year to March 2025. |
Projections show the measures put in place will continue to show within the Group's financial performance as it returns to profitability. The Group will continue to further extend its portfolio of projects, although not to pre-pandemic levels, where these are forecasted to be achieved in FY2025-2026. |
Further comments covering the directors' assessment of going concern and the current and forecasted economic climate are included in the accounting policies. |
The Group will continue to expand its customer base in all its divisions and additionally will look to expand its activities within the construction industry. |
KEY PERFORMANCE INDICATORS |
The key performance indicators that the directors use to monitor the company's performance are turnover and profit growth as commented on above. |
ON BEHALF OF THE BOARD: |
HBS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13453302) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 March 2023. |
PRINCIPAL ACTIVITIES |
The principal activities of the Group in the year under review were those of contracting in the heating, plumbing and electrical installation services for the new build housing industry. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 March 2023 (2022: £nil). |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report. |
POLITICAL DONATIONS AND EXPENDITURE |
During the year donations of £32,060 (2022: £Nil) were made to UK charities. |
DISCLOSURE IN THE STRATEGIC REPORT |
As permitted by Paragraph 1A of schedule 7 to the Large and Medium-sized Companies and Groups (Accounts and reports) Regulations 2008 certain matters which are required to be disclosed in the directors' report have been omitted as they are included in the strategic report instead. These matters relate to financial risk management and future developments. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 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 and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
HBS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13453302) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2023 |
AUDITORS |
The auditors, TC Group, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HBS GROUP HOLDINGS LIMITED |
Opinion |
We have audited the financial statements of HBS Group Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 March 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 Auditors' 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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HBS GROUP HOLDINGS LIMITED |
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 Report of the Directors. |
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: |
- | 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 Statement of Directors' Responsibilities set out on page five, 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HBS GROUP HOLDINGS LIMITED |
Auditors' 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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. |
We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (UK GAAP and the Companies Act 2006) and the relevant tax compliance regulations in the UK. |
We understood how the company is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through discussions with those charged with governance. |
We assess the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by discussion with management from various parts of the business to understand where they considered there was a susceptibility to fraud. We considered the procedures and controls that the company has established to prevent and detect fraud, and how these are monitored by management, and also any enhanced risk factors such as performance targets. |
Based on our understanding, we designed our audit procedures to identify any non-compliance with laws and regulations identified in the paragraphs above. |
We also performed audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HBS GROUP HOLDINGS LIMITED |
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 a Report of the Auditors 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. |
for and on behalf of |
1st Floor |
Ocean Village Innovation Centre |
Ocean Way |
Southampton |
Hampshire |
SO14 3JZ |
HBS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13453302) |
CONSOLIDATED |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 31 MARCH 2023 |
2023 | 2023 | 2023 |
Continuing | Discontinued | Total |
Notes | £ | £ | £ |
TURNOVER | 4 | 15,504,340 | - | 15,504,340 |
Cost of sales | (13,841,544 | ) | - | (13,841,544 | ) |
GROSS PROFIT | 1,662,796 | - | 1,662,796 |
Administrative expenses | (2,752,242 | ) | - | (2,752,242 | ) |
(1,089,446 | ) | - | (1,089,446 | ) |
Other operating income | 59,218 | - | 59,218 |
OPERATING LOSS | (1,030,228 | ) | - | (1,030,228 | ) |
Interest payable and similar expenses | 6 | (70,551 | ) | - | (70,551 | ) |
LOSS BEFORE TAXATION | 7 | (1,100,779 | ) | - | (1,100,779 | ) |
Tax on loss | 8 | (129,790 | ) | - | (129,790 | ) |
LOSS FOR THE FINANCIAL YEAR | ( |
) | ( |
) |
OTHER COMPREHENSIVE INCOME | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(1,230,569 |
) |
Loss attributable to: |
Owners of the parent | (1,230,569 | ) |
Total comprehensive income attributable to: |
Owners of the parent | (1,230,569 | ) |
HBS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13453302) |
CONSOLIDATED |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 31 MARCH 2023 |
2022 | 2022 | 2022 |
Continuing | Discontinued | Total |
Notes | £ | £ | £ |
TURNOVER | 4 | 14,417,876 | 2,009,844 | 16,427,720 |
Cost of sales | (12,326,110 | ) | (1,806,602 | ) | (14,132,712 | ) |
GROSS PROFIT | 2,091,766 | 203,242 | 2,295,008 |
Administrative expenses | (2,848,505 | ) | (488,932 | ) | (3,337,437 | ) |
(756,739 | ) | (285,690 | ) | (1,042,429 | ) |
Other operating income | 101,851 | - | 101,851 |
OPERATING LOSS | (654,888 | ) | (285,690 | ) | (940,578 | ) |
Interest payable and similar expenses | 6 | (55,027 | ) | - | (55,027 | ) |
LOSS BEFORE TAXATION | 7 | (709,915 | ) | (285,690 | ) | (995,605 | ) |
Tax on loss | 8 | 271,413 | 484,568 | 755,981 |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR | ( |
) | ( |
) |
OTHER COMPREHENSIVE INCOME | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(239,624 |
) |
(Loss)/profit attributable to: |
Owners of the parent | (239,624 | ) |
Total comprehensive income attributable to: |
Owners of the parent | (239,624 | ) |
HBS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13453302) |
CONSOLIDATED BALANCE SHEET |
31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 | 1,173,809 | 1,034,152 |
Investments | 11 | 4 | 4 |
1,173,813 | 1,034,156 |
CURRENT ASSETS |
Stocks | 12 | 155,835 | 73,066 |
Debtors | 13 | 7,438,604 | 8,694,915 |
Cash at bank and in hand | 723 | 202,506 |
7,595,162 | 8,970,487 |
CREDITORS |
Amounts falling due within one year | 14 | 3,655,941 | 3,638,455 |
NET CURRENT ASSETS | 3,939,221 | 5,332,032 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 5,113,034 | 6,366,188 |
CREDITORS |
Amounts falling due after more than one year |
15 |
(862,787 |
) |
(1,002,638 |
) |
PROVISIONS FOR LIABILITIES | 19 | (117,266 | ) | - |
NET ASSETS | 4,132,981 | 5,363,550 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 6,100 | 6,100 |
Capital redemption reserve | 3,900 | 3,900 |
Retained earnings | 4,122,981 | 5,353,550 |
SHAREHOLDERS' FUNDS | 4,132,981 | 5,363,550 |
The financial statements were approved by the Board of Directors and authorised for issue on 29 March 2024 and were signed on its behalf by: |
Mr C Bull - Director |
HBS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13453302) |
COMPANY BALANCE SHEET |
31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
Investments | 11 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 20 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | - | - |
The financial statements were approved by the Board of Directors and authorised for issue on |
HBS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13453302) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2023 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 April 2021 | 6,100 | 5,593,174 | 3,900 | 5,603,174 |
Changes in equity |
Total comprehensive income | - | (239,624 | ) | - | (239,624 | ) |
Balance at 31 March 2022 | 6,100 | 5,353,550 | 3,900 | 5,363,550 |
Changes in equity |
Total comprehensive income | - | (1,230,569 | ) | - | (1,230,569 | ) |
Balance at 31 March 2023 | 6,100 | 4,122,981 | 3,900 | 4,132,981 |
HBS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13453302) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2021 |
Changes in equity |
Balance at 31 March 2022 |
Changes in equity |
Balance at 31 March 2023 |
HBS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13453302) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (511,854 | ) | 908,122 |
Tax paid | 79,103 | (24,341 | ) |
Net cash from operating activities | (432,751 | ) | 883,781 |
Cash flows from investing activities |
Purchase of tangible fixed assets on HP | (241,220 | ) | - |
Purchase of tangible fixed assets | (12,841 | ) | (14,571 | ) |
Sale of tangible fixed assets | - | 45,942 |
HP Interest Paid | (20,534 | ) | (20,501 | ) |
Net cash from investing activities | (274,595 | ) | 10,870 |
Cash flows from financing activities |
Loan repayments in year | (235,169 | ) | (200,906 | ) |
Interest paid | (50,017 | ) | (34,526 | ) |
New HP in year | 241,220 | - |
Capital repayments in year | (66,178 | ) | (86,144 | ) |
Amount introduced by directors | 396,516 | - |
Net cash from financing activities | 286,372 | (321,576 | ) |
(Decrease)/increase in cash and cash equivalents | (420,974 | ) | 573,075 |
Cash and cash equivalents at beginning of year |
2 |
202,506 |
(370,569 |
) |
Cash and cash equivalents at end of year |
2 |
(218,468 |
) |
202,506 |
HBS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13453302) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2023 |
1. | RECONCILIATION OF LOSS FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Loss for the financial year | (1,230,569 | ) | (239,624 | ) |
Depreciation charges | 114,404 | 114,943 |
Loss on disposal of tangible assets | - | (41,708 | ) |
Finance costs | 70,551 | 55,027 |
Taxation | 129,790 | (755,981 | ) |
(915,824 | ) | (867,343 | ) |
Increase in stocks | (82,769 | ) | (4,811 | ) |
Decrease in trade and other debtors | 807,841 | 1,536,829 |
(Decrease)/increase in trade and other creditors | (321,102 | ) | 243,447 |
Cash generated from operations | (511,854 | ) | 908,122 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 March 2023 |
31.3.23 | 1.4.22 |
£ | £ |
Cash and cash equivalents | 723 | 202,506 |
Bank overdrafts | (219,191 | ) | - |
(218,468 | ) | 202,506 |
Year ended 31 March 2022 |
31.3.22 | 1.4.21 |
£ | £ |
Cash and cash equivalents | 202,506 | 153 |
Bank overdrafts | - | (370,722 | ) |
202,506 | (370,569 | ) |
HBS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13453302) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2023 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.4.22 | Cash flow | At 31.3.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 202,506 | (201,783 | ) | 723 |
Bank overdrafts | - | (219,191 | ) | (219,191 | ) |
202,506 | (420,974 | ) | (218,468 | ) |
Debt |
Finance leases | (214,019 | ) | (175,042 | ) | (389,061 | ) |
Debts falling due within 1 year | (235,169 | ) | (1,761 | ) | (236,930 | ) |
Debts falling due after 1 year | (882,964 | ) | 236,930 | (646,034 | ) |
(1,332,152 | ) | 60,127 | (1,272,025 | ) |
Total | (1,129,646 | ) | (360,847 | ) | (1,490,493 | ) |
HBS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13453302) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
1. | STATUTORY INFORMATION |
HBS Group Holdings Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
There were no material departures from that standard. |
The preparation of the financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires group management to exercise judgement in applying the group's accounting policies. |
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 Company's functional and presentational currency is GBP rounded to the nearest pound. |
Basis of consolidation |
The financial statements consolidate the accounts of HBS Group Holdings Limited and its subsidiary undertakings from the date of acquisition. A subsidiary is an entity controlled by the Group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. All intra-group transactions, balances, income and expenses are eliminated on consolidation. |
The financial statements do not contain information about indirect subsidiary undertakings. The Group has taken advantage of the exemption conferred by section 402 of the Companies Act 2006 not to produce consolidated financial statements as all the subsidiary undertakings when taken together are not material for the purpose of giving a true and fair view. |
Merger accounting |
Where merger accounting is used, the investment is recorded in the company's balance sheet at the nominal value of the shares issued together with the fair value of any additional consideration paid. In the group financial statements, merged subsidiary undertakings are treated as if they had always been a member of the group. The corresponding figures for the previous year include its results for that period, the assets and liabilities at the previous balance sheet date and the shares issued by the company as consideration as if they had always been issue. Any difference between the nominal value of the shares acquired by the company and those issued by the company to acquire them is taken to reserves. |
HBS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13453302) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Going concern |
The Group's operational and risk management strategies are outlined in detail within the strategic and directors report. Presently, the company fulfils its day-to-day working capital needs through its banking arrangements with the Bank of Scotland. |
The construction sector, alongside broader economic conditions, faces ongoing challenges stemming from the enduring effects of the pandemic, Brexit, the conflict in Ukraine, inflationary pressures, rising interest rates, and the energy crisis. These factors exert considerable influence on industry dynamics and consequently impact the Group's performance. |
In response to these challenges, the directors have prepared a comprehensive financial planning forecast extending until March 2025. This forecast encompasses profit and cash projections subjected to rigorous sensitivity analysis, integrating insights from the Group's performance since the year-end. Based on this, an increased its focus on slow paying debtors, and thorough analysis, the company possesses adequate liquidity to sustain its operations. |
Furthermore, in January 2024, the Group successfully renegotiated its overdraft facility with the Bank of Scotland, extending until 30 June 2024. The directors maintain confidence that this facility will remain accessible beyond this date, given the Group's anticipated commercial viability. |
Acknowledging the inherent uncertainties in forecasting, the directors are committed to monitor the Group's ongoing performance. They remain committed to implementing strategies to enhance revenue, gross profit margins, and administrative cost efficiencies. Additionally, in the event of unforeseen liquidity requirements, the directors are prepared to take prompt action, including injecting personal funds, demonstrating both the means and intent to support the Group as needed. |
After careful consideration of the financial planning forecast and available liquidity, the directors affirm the appropriateness of preparing the financial statements on a going concern basis. They are confident that the measures implemented will enable the Group to generate adequate profitability and cash flow, ensuring the fulfilment of all obligations over the ensuing 12 months from the financial statement signing date. Moreover, they hold a reasonable expectation that the Group possesses the requisite resources to sustain operational continuity for the foreseeable future. |
Turnover |
The Group recognise's revenue associated with the transaction by reference to the stage of completion of the transaction at the end of the reporting period. The Group determines the stage of completion of a transaction or contract using the method that measures most reliably the work performed. This is the proportion that costs incurred for work performed to date bear to the estimated total costs. |
The Group recognises costs that relate to future activity on the transaction or contract, such as for materials or prepayments, as an asset if it is probable that the costs will be recovered. |
Where any costs whose recovery is not probable the company will recognise an expense immediately. |
When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately, with a corresponding provision for an onerous contract. |
When the collectability of an amount already recognised as contract revenue is no longer probable, the entity recognises the uncollectible amount as an expense rather than as an adjustment of the amount of contract revenue. |
HBS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13453302) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
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. |
Land is not depreciated. Depreciation on other assets 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 basis: |
Freehold property and improvements to property - 2% |
Plant and machinery - 15% |
Motor vehicles - 25% |
Fixtures and fittings - 15% |
Computer equipment - 33% |
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. |
At each balance sheet date, the Group reviews the carrying amounts of its tangible fixed assets to determine whether there is an indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an 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 the asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately. |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the statement of comprehensive income. |
Government grants |
Government grants relating to the Coronavirus Job Retention Scheme are recognised in income in the period in which it becomes receivable under the performance model. |
Investments in subsidiaries |
Investments in subsidiaries are measured at cost less accumulated impairment. |
Stocks |
Stocks are stated at the lower of cost and the 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 reporting 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 the statement of comprehensive income. |
HBS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13453302) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
Basic financial assets, including trade and other receivables and cash and bank balances, are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method. |
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. |
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
Basic financial liabilities, including trade and other payables, and loans from fellow group companies, 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 receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Trade payables 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 payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
HBS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13453302) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Current and deferred taxation |
The tax expense for the year comprises current and deferred tax. Tax is recognised in the statement of comprehensive income 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 reporting date. |
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting 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; and |
- Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. |
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 there reporting date. |
Defined contribution pension plan |
The Group operates a defined contribution plan for certain of its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. |
The contributions are recognised as an expense in the statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the statement of financial position. The assets of the plan are held separately from the company in independently administered funds. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contract and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the Group. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the statement of comprehensive income so as to produce constant periodic rate of charge on the net obligation outstanding in each period. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
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. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. |
In the statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that re repayable on demand and form an integral part of the company's cash management. |
HBS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13453302) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
In preparing these financial statements, the directors have had to make the following judgements: |
- Determine whether leases entered into by the Group either as a lessor or a lessee are operating leases or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis. |
- Determine whether there are indicators of impairment of the Group's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset. |
Other key sources of estimated uncertainty |
Tangible fixed assets |
Other than freehold land, are depreciated over their useful economic lives taking into account residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on the number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the assets and projected disposal values. |
Debtor recoverability |
The Group has a policy in place to assess the need for impairment of trade debtors. The Group considers the trade debtors on an individual basis and uses its knowledge of the customer, ageing of the debt and historic rate of defaults. Based on this analysis the Group then applies a specific provision against the trade debtor balances. |
When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately, with a corresponding provision for an onerous contract. |
When the collectability of an amount already recognised as contract revenue is no longer probable, the Group recognises the uncollectible amount as an expense rather than as an adjustment of the |
amount of contract revenue. |
4. | TURNOVER |
The turnover and loss before taxation are attributable to the principal activities of the group. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
Mechanical and Electrical | 15,504,340 | 14,398,227 |
New Energies | - | 2,029,493 |
15,504,340 | 16,427,720 |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom | 15,504,340 | 16,427,720 |
15,504,340 | 16,427,720 |
HBS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13453302) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 2,293,719 | 2,565,986 |
Social security costs | 221,497 | 243,372 |
Other pension costs | 41,999 | 44,648 |
2,557,215 | 2,854,006 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Directors | 3 | 4 |
Administration | 33 | 38 |
Engineers | 39 | 36 |
2023 | 2022 |
£ | £ |
Directors' remuneration | 224,068 | 322,848 |
Directors' pension contributions to money purchase schemes | 3,957 | 4,828 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 3 | 4 |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 93,243 | 102,858 |
Pension contributions to money purchase schemes | 1,315 | 1,321 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest | 50,017 | 34,526 |
Hire purchase | 20,534 | 20,501 |
70,551 | 55,027 |
7. | LOSS BEFORE TAXATION |
2023 | 2022 |
£ | £ |
Depreciation of tangible fixed assets | 114,405 | 114,942 |
Fees payable to the company's auditor for the audit of the company's annual financial statements |
17,500 |
25,295 |
Fees payable to the company's auditor for non-audit services |
2,500 |
85,027 |
HBS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13453302) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
8. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the loss for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | - | (755,981 | ) |
Deferred tax | 129,790 | - |
Tax on loss | 129,790 | (755,981 | ) |
UK corporation tax has been charged at 19 % . |
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Loss before tax | (1,100,779 | ) | (995,605 | ) |
Loss multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
(209,148 |
) |
(189,165 |
) |
Effects of: |
Expenses not deductible for tax purposes | 11,088 | 5,013 |
Capital allowances in excess of depreciation | (33,105 | ) | - |
Depreciation in excess of capital allowances | - | 1,908 |
Adjustments to tax charge in respect of previous periods | - | (597,822 | ) |
Other permanent differences | - | 7,771 |
Other tax adjustments, reliefs and transfers | 7,980 | 16,314 |
Carry forward tax losses | 223,185 | - |
Deferred tax movement | 129,790 | - |
Total tax charge/(credit) | 129,790 | (755,981 | ) |
From 1st April 2023 the corporation tax main rate increased from 19% to 25% for companies with profits over £250,000. The small company rate remains at 19% for taxable profits under £50,000. For profits falling between £50,000 and £250,000 marginal relief is applied. Deferred tax has therefore been calculated a 25%. |
Carried forward losses as at 31 March 2023 are £1,833,705 (2022: £899,181). |
9. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
HBS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13453302) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
10. | TANGIBLE FIXED ASSETS |
Group |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
COST |
At 1 April 2022 | 691,202 | 251,581 | 5,989 |
Additions | - | - | - |
Disposals | - | - | - |
At 31 March 2023 | 691,202 | 251,581 | 5,989 |
DEPRECIATION |
At 1 April 2022 | 84,020 | 50,324 | 5,304 |
Charge for year | 9,083 | 5,031 | 685 |
Eliminated on disposal | - | - | - |
At 31 March 2023 | 93,103 | 55,355 | 5,989 |
NET BOOK VALUE |
At 31 March 2023 | 598,099 | 196,226 | - |
At 31 March 2022 | 607,182 | 201,257 | 685 |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 April 2022 | 126,003 | 685,939 | 149,189 | 1,909,903 |
Additions | 7,021 | 241,219 | 5,821 | 254,061 |
Disposals | - | (89,415 | ) | - | (89,415 | ) |
At 31 March 2023 | 133,024 | 837,743 | 155,010 | 2,074,549 |
DEPRECIATION |
At 1 April 2022 | 121,365 | 480,973 | 133,765 | 875,751 |
Charge for year | 1,890 | 87,906 | 9,809 | 114,404 |
Eliminated on disposal | - | (89,415 | ) | - | (89,415 | ) |
At 31 March 2023 | 123,255 | 479,464 | 143,574 | 900,740 |
NET BOOK VALUE |
At 31 March 2023 | 9,769 | 358,279 | 11,436 | 1,173,809 |
At 31 March 2022 | 4,638 | 204,966 | 15,424 | 1,034,152 |
The net book value of tangible assets includes an amount of £358,279 (2022 - £204,966) in respect of assets held under finance leases and hire purchase contracts. The related depreciation charge on these assets for the year was £87,906 (2022 - £84,354). |
Freehold land and buildings includes land of £237,046 (2022 - £237,046) which is not depreciated. |
HBS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13453302) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
11. | FIXED ASSET INVESTMENTS |
Group |
Shares in |
group |
undertakings |
£ |
COST |
At 1 April 2022 |
and 31 March 2023 | 4 |
NET BOOK VALUE |
At 31 March 2023 | 4 |
At 31 March 2022 | 4 |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 April 2022 |
and 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: HBS House, Unit 9, Solent Way, Whiteley, Hampshire, PO15 7FE |
Nature of business: |
% |
Class of shares: | holding |
HBS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13453302) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
11. | FIXED ASSET INVESTMENTS - continued |
Indirect subsidiary undertakings |
HBS New Energies Limited |
Registered office: HBS House, Unit 9, Solent Way, Whiteley, Hampshire, PO15 7FE |
Nature of business: Dormant |
% |
Class of shares: | holding |
Ordinary | 100.00 |
HBS Homecare Limited |
Registered office: HBS House, Unit 9, Solent Way, Whiteley, Hampshire, PO15 7FE |
Nature of business: Dormant |
% |
Class of shares: | holding |
Ordinary | 100.00 |
12. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Stocks | 155,835 | 73,066 |
There is no material difference between the replacement cost of stocks and the amount stated above. |
13. | DEBTORS |
Group |
2023 | 2022 |
£ | £ |
Amounts falling due within one year: |
Trade debtors | 4,458,339 | 4,523,858 |
Amounts owed by group undertakings | - | 1,364,972 |
Amounts owed by participating interests | 1,454,340 | - |
Amounts recoverable on contract | 215,919 | 225,556 |
Other debtors | 54,630 | 448,675 |
Directors' current accounts | 375,413 | 772,684 |
Other taxation receivable | 498,621 | 852,563 |
Prepayments and accrued income | 264,076 | 376,817 |
7,321,338 | 8,565,125 |
Amounts falling due after more than one | year: |
Deferred tax asset | 117,266 | 129,790 |
Aggregate amounts | 7,438,604 | 8,694,915 |
The impairment loss recognised in profit and loss for the year in respect of bad and doubtful trade debtors was £Nil (£280,291). |
HBS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13453302) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 16) | 456,121 | 235,169 |
Hire purchase contracts (see note 17) | 172,308 | 94,345 |
Trade creditors | 2,669,789 | 2,476,044 |
Amounts owed to participating interests | - | 269,189 |
Corporation tax | 40,428 | - |
Social security and other taxes | 119,341 | 130,648 |
Directors' current accounts | 25,925 | 26,680 |
Accruals and deferred income | 172,029 | 406,380 |
3,655,941 | 3,638,455 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Bank loans (see note 16) | 646,034 | 882,964 |
Hire purchase contracts (see note 17) | 216,753 | 119,674 |
862,787 | 1,002,638 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 219,191 | - |
Bank loans | 236,930 | 235,169 |
456,121 | 235,169 |
Amounts falling due between one and | two years: |
Bank loans - 1-2 years | 238,976 | 236,930 |
Amounts falling due between two and | five years: |
Bank loans - 2-5 years | 371,832 | 560,532 |
Amounts falling due in more than five | years: |
Repayable by instalments |
Bank loans more 5 yr by instalments | 35,226 | 85,502 |
HBS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13453302) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | 172,308 | 94,345 |
Between one and five years | 216,753 | 119,674 |
389,061 | 214,019 |
Group |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year | 6,229 | 3,905 |
Between one and five years | 11,772 | 4,556 |
In more than five years | 3,500 | - |
21,501 | 8,461 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2023 | 2022 |
£ | £ |
Bank overdraft | 219,191 | - |
Bank loans | 882,964 | 1,118,133 |
Hire purchase contracts | 389,061 | 214,019 |
1,491,216 | 1,332,152 |
Bank loans are secured via a legal charge on the company's freehold property and also property held by a related company, HBS Investments Limited. |
An overdraft facility is in place for £900,000 which is secured via a legal charge on the company's |
freehold property. |
Hire purchase liabilities are secured against the assets to which they relate. |
19. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax | 117,266 | - |
HBS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13453302) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
19. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Charge to Statement of Comprehensive Income during year | 117,266 |
Balance at 31 March 2023 | 117,266 |
Deferred tax liability predominantly relates to fixed asset timing differences. |
Deferred tax asset reduced to be the same value as the liability, this is shown in debtors due after more than one year. |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary A | £1 | 2,440 | 2,440 |
Ordinary B | £1 | 3,660 | 3,660 |
6,100 | 6,100 |
The A ordinary shares are non redeemable. |
The A shares and the B shares shall rank pari passu in all respects but shall constitute separate classes of shares. |
21. | PENSION COMMITMENTS |
The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension charge amounted to £41,999 (2022 - £44,648). There were outstanding contributions at the year end of £3,655 (2022 - £15,265). |
22. | CONTINGENT LIABILITIES |
The Group has guaranteed bank borrowings of a related company, HBS Investment Limited. At the year end the liabilities covered by this guarantee totalled £53,138 (2022 - £87,019). |
HBS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 13453302) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
23. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
2023 | 2022 |
£ | £ |
SHAREHOLDER LOANS |
Balance outstanding at start of year | 772,684 | 670,097 |
Amounts advanced | 22,729 | 139,476 |
Amounts repaid | (420,000 | ) | (36,889 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 375,413 | 772,684 |
Outstanding balances are unsecured and interest free and repayable on demand. |
The balance includes those that are directors and shareholders of the company. |
24. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
During the year the Group entered into transactions, in the ordinary course of the business, with other related parties. The nature of the related party relationship is that of entities with common ultimate controlling parties. Transactions entered into, and balances outstanding at 31 March are as follows: |
Sales made to related parties |
Amounts owed to related parties |
Amounts owed from related parties |
£ | £ | £ |
2023 | 275,492 | 1,454,940 |
2022 | 269,189 |
During the year, a total of key management personnel compensation of £ 228,026 (2022 - £ 667,074 ) was paid. |
25. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party remained the Bull family who jointly own 100% of the share capital of HBS |
Group Holdings Limited. |