REGISTERED NUMBER: 08404317 (England and Wales) |
HEALY GROUP LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2023 |
REGISTERED NUMBER: 08404317 (England and Wales) |
HEALY GROUP LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2023 |
HEALY GROUP LIMITED (REGISTERED NUMBER: 08404317) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 30 June 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 17 |
HEALY GROUP LIMITED |
COMPANY INFORMATION |
for the year ended 30 June 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Certified Accountants |
Statutory Auditors |
Brook House |
47 High Street |
Henley in Arden |
Warwickshire |
B95 5AA |
HEALY GROUP LIMITED (REGISTERED NUMBER: 08404317) |
GROUP STRATEGIC REPORT |
for the year ended 30 June 2023 |
The directors present their strategic report of the company and the group for the year ended 30 June 2023. |
The directors present their strategic report of the company and the group for the year ended 30 June 2023. |
Healy Group Limited ("the group") is a holding company of the trading entities of L Healy Limited and Waylaid Limited. |
L Healy Limited is a Midlands based company providing civil engineering to a significant number of developers across the United Kingdom. |
Waylaid Limited is also a Midlands based company providing plant available for hire and sale to companies within the construction industry. |
The directors present their strategic report of the group for the year ended 30 June 2023. |
REVIEW OF BUSINESS |
The directors are pleased to report that despite a challenging marketplace, the continued commitment to the business from its directors and their dedicated team, has enabled the group to expand its share of the market, despite lower volume output within the housing sector overall. |
The group has continued to invest in its asset base and quality control to ensure that it maintains its excellent reputation within the industry as evidenced by the repeat business from the most prestigious house builders across the midlands. |
Key performance indicators |
The directors monitor the group's performance during regular financial meetings using turnover and gross profit as key metrics. |
The directors' "hands on approach" with the business ensures that the group is able to adapt to the changing marketplace and continues to deliver on its excellent reputation within a competitive industry. This hard work and dedication has enabled the group to enjoy further growth of 10% during 2023 on what was already a strong performance for the business in the previous year. |
With regards to the company's gross margins, despite continuing inflationary pressures on materials throughout the year, the directors are pleased to report that the group has all but maintained its margins during the current year reporting margins of 11.9% compared with 12.1% in 2022. |
Future developments |
The directors continually consider risks and uncertainties relating to the UK economy and are mindful that interest rate rises continue to cause headwinds and uncertainty within the market. |
Whilst house prices across the country have continued to reduce within the current year, the market continues to show resilience and despite a slight stall in the release of new sites in the latter half of 2023, there has been an exceptionally high demand for development within the first quarter of 2024 and the outlook for the coming year remains positive. |
The group has an exceptionally strong order book and continues to be successful with new tenders ensuring that the business continues to flourish. |
Health and safety remains a key focus of the directors who are committed to continuous investment into the group's employees providing ongoing training and development programs for the team. |
HEALY GROUP LIMITED (REGISTERED NUMBER: 08404317) |
GROUP STRATEGIC REPORT |
for the year ended 30 June 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The group's trading operations could be affected by a number of external factors that may pose a risk to its financial performance in the short, medium and long term which are: - |
1. A significant downturn within the construction industry from external factors that are beyond the control of the group. |
1. Uncapped price rises of general building materials resulted from supply and demand issues in particular as a result of continued global instability and conflict. |
2. A change in Government following the imminent General Election which may result in a withdrawal of support for Stamp Duty Relief for first time buyers or changes to policies which support Housing Associations. |
The directors continue to monitor the market conditions and meet regularly to discuss any foreseeable circumstances that may necessitate a change to the group's strategy in order to mitigate the business exposure to changes within the working environment. |
ON BEHALF OF THE BOARD: |
HEALY GROUP LIMITED (REGISTERED NUMBER: 08404317) |
REPORT OF THE DIRECTORS |
for the year ended 30 June 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 30 June 2023. |
DIVIDENDS |
The Directors do not recommend payment of a final dividend. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2022 to the date of this report. |
DISCLOSURE IN THE STRATEGIC REPORT |
Items required to be disclosed under Sch 7 of the Companies Act are disclosed in the strategic report. |
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. |
AUDITORS |
The auditors, Equus Miller Limited, 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 |
HEALY GROUP LIMITED |
Opinion |
We have audited the financial statements of Healy Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2023 which comprise the Consolidated Income Statement, Consolidated Other 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 30 June 2023 and of the group's profit 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. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HEALY GROUP LIMITED |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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. |
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: |
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements, including how fraud may occur by enquiring of management it's own consideration of fraud. In particular, we looked at where management made subjective judgements, for example in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. We also considered potential financial or other pressures, opportunity and motivations for fraud. As part of this discussion we identified the internal control established to mitigate risks related to fraud or non compliance with laws and regulations and how management monitor these processes. Appropriate procedures included the review and testing of manual journals and key estimates and judgements made by management. |
We gained an understanding of the legal and regulatory framework applicable to the both the parent company and it's subsidiaries and the industry in which the group operates, drawing on our broad sector experience, and considered the risk of acts by the company that were contrary to these laws and regulations including fraud. |
We focussed on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to Health and Safety regulations, UK tax legislation and equivalent local laws and regulations. |
We made enquiries of management with regards to compliance with the above laws and regulations and corroborated any necessary evidence to relevant information, for example minutes of meetings and representations of the board of Directors. |
Our tests included agreeing the financial statements disclosure to underlying supporting documentation and enquiries with management. |
We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits we also addressed the risk of management override of internal controls including testing journals and evaluation whether there was evidence of key staff manipulation that represented a risk of material misstatement due to fraud. |
Our audit procedures were designed to respond to the risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery , misrepresentions or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected within the financial statements, the less likely we are to become aware of it. |
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 |
HEALY GROUP 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 |
Chartered Certified Accountants |
Statutory Auditors |
Brook House |
47 High Street |
Henley in Arden |
Warwickshire |
B95 5AA |
HEALY GROUP LIMITED (REGISTERED NUMBER: 08404317) |
CONSOLIDATED |
INCOME STATEMENT |
for the year ended 30 June 2023 |
30/6/23 | 30/6/22 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 | 32,902,126 | 29,913,402 |
Cost of sales | 29,003,343 | 26,291,147 |
GROSS PROFIT | 3,898,783 | 3,622,255 |
Administrative expenses | 2,611,966 | 2,166,607 |
OPERATING PROFIT | 5 | 1,286,817 | 1,455,648 |
Income from fixed asset investments | 292 | 275 |
Interest receivable and similar income | 142 | 414 |
434 | 689 |
1,287,251 | 1,456,337 |
Interest payable and similar expenses | 6 | 238,529 | 133,870 |
PROFIT BEFORE TAXATION | 1,048,722 | 1,322,467 |
Tax on profit | 7 | 257,154 | 227,960 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 791,568 | 1,094,507 |
HEALY GROUP LIMITED (REGISTERED NUMBER: 08404317) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
for the year ended 30 June 2023 |
30/6/23 | 30/6/22 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 791,568 | 1,094,507 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
791,568 |
1,094,507 |
Total comprehensive income attributable to: |
Owners of the parent | 791,568 | 1,094,507 |
HEALY GROUP LIMITED (REGISTERED NUMBER: 08404317) |
CONSOLIDATED BALANCE SHEET |
30 June 2023 |
30/6/23 | 30/6/22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 | 3,638,825 | 3,144,300 |
Investments | 10 | 1,708,300 | 1,708,300 |
5,347,125 | 4,852,600 |
CURRENT ASSETS |
Stocks | 11 | 394,215 | 355,310 |
Debtors | 12 | 10,018,132 | 7,722,541 |
Investments | 13 | 206 | 206 |
Cash at bank and in hand | 172,821 | 781,348 |
10,585,374 | 8,859,405 |
CREDITORS |
Amounts falling due within one year | 14 | 6,896,634 | 5,305,584 |
NET CURRENT ASSETS | 3,688,740 | 3,553,821 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
9,035,865 |
8,406,421 |
CREDITORS |
Amounts falling due after more than one year |
15 |
(3,337,501 |
) |
(3,671,655 |
) |
PROVISIONS FOR LIABILITIES | 19 | (172,030 | ) | - |
NET ASSETS | 5,526,334 | 4,734,766 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 100 | 100 |
Share premium | 21 | 2,940 | 2,940 |
Capital redemption reserve | 21 | 1,150,000 | 1,025,000 |
Retained earnings | 21 | 4,373,294 | 3,706,726 |
SHAREHOLDERS' FUNDS | 5,526,334 | 4,734,766 |
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: |
L Healy - Director |
HEALY GROUP LIMITED (REGISTERED NUMBER: 08404317) |
COMPANY BALANCE SHEET |
30 June 2023 |
30/6/23 | 30/6/22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Debtors | 12 |
Cash in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 | 100 | 100 |
Capital redemption reserve | 21 | 1,150,000 | 1,025,000 |
Retained earnings | 21 | 774,158 | 705,907 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 193,250 | 14,905 |
The financial statements were approved by the Board of Directors and authorised for issue on |
HEALY GROUP LIMITED (REGISTERED NUMBER: 08404317) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
for the year ended 30 June 2023 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 July 2021 | 100 | 2,737,219 | 2,940 | 900,000 | 3,640,259 |
Changes in equity |
Total comprehensive income | - | 969,507 | - | 125,000 | 1,094,507 |
Balance at 30 June 2022 | 100 | 3,706,726 | 2,940 | 1,025,000 | 4,734,766 |
Changes in equity |
Total comprehensive income | - | 666,568 | - | 125,000 | 791,568 |
Balance at 30 June 2023 | 100 | 4,373,294 | 2,940 | 1,150,000 | 5,526,334 |
HEALY GROUP LIMITED (REGISTERED NUMBER: 08404317) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
for the year ended 30 June 2023 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 July 2021 | 100 | 816,002 | 1,716,102 |
Changes in equity |
Total comprehensive income | - | ( |
) |
Balance at 30 June 2022 | 100 | 705,907 | 1,025,000 | 1,731,007 |
Changes in equity |
Total comprehensive income | - |
Balance at 30 June 2023 | 100 | 774,157 | 1,150,000 | 1,924,257 |
HEALY GROUP LIMITED (REGISTERED NUMBER: 08404317) |
CONSOLIDATED CASH FLOW STATEMENT |
for the year ended 30 June 2023 |
30/6/23 | 30/6/22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 622,835 | 133,948 |
Interest paid | (193,669 | ) | (80,975 | ) |
Interest element of hire purchase payments paid |
(38,109 |
) |
(44,270 |
) |
Finance costs paid | (6,751 | ) | (8,625 | ) |
Tax paid | (115,685 | ) | 5,381 |
Net cash from operating activities | 268,621 | 5,459 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (42,620 | ) | (73,000 | ) |
Sale of tangible fixed assets | 259,259 | 100,500 |
Interest received | 142 | 414 |
Dividends received | 292 | 275 |
Net cash from investing activities | 217,073 | 28,189 |
Cash flows from financing activities |
Loan repayments in year | (429,704 | ) | (258,325 | ) |
Loans due to associates | 90,000 | - |
Capital repayments in year | (690,309 | ) | (797,704 | ) |
Amount introduced by directors | 323,905 | 150,625 |
Amount withdrawn by directors | (263,113 | ) | (135,402 | ) |
Share buyback | (125,000 | ) | (125,000 | ) |
Directors analysed as creditors | - | (4,007 | ) |
Net cash from financing activities | (1,094,221 | ) | (1,169,813 | ) |
Decrease in cash and cash equivalents | (608,527 | ) | (1,136,165 | ) |
Cash and cash equivalents at beginning of year |
2 |
781,348 |
1,917,513 |
Cash and cash equivalents at end of year | 2 | 172,821 | 781,348 |
HEALY GROUP LIMITED (REGISTERED NUMBER: 08404317) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the year ended 30 June 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
30/6/23 | 30/6/22 |
£ | £ |
Profit before taxation | 1,048,722 | 1,322,467 |
Depreciation charges | 818,938 | 632,455 |
Profit on disposal of fixed assets | (154,151 | ) | (54,263 | ) |
Finance costs | 238,529 | 133,870 |
Finance income | (434 | ) | (689 | ) |
1,951,604 | 2,033,840 |
Increase in stocks | (38,905 | ) | (18,968 | ) |
Increase in trade and other debtors | (2,380,887 | ) | (2,753,751 | ) |
Increase in trade and other creditors | 1,091,023 | 872,827 |
Cash generated from operations | 622,835 | 133,948 |
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 30 June 2023 |
30/6/23 | 1/7/22 |
£ | £ |
Cash and cash equivalents | 172,821 | 781,348 |
Year ended 30 June 2022 |
30/6/22 | 1/7/21 |
£ | £ |
Cash and cash equivalents | 781,348 | 1,917,513 |
HEALY GROUP LIMITED (REGISTERED NUMBER: 08404317) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the year ended 30 June 2023 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
Other |
non-cash |
At 1/7/22 | Cash flow | changes | At 30/6/23 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 781,348 | (608,527 | ) | 172,821 |
781,348 | (608,527 | ) | 172,821 |
Liquid resources |
Current asset |
investments | 206 | - | - | 206 |
206 | - | - | 206 |
Debt |
Finance leases | (593,856 | ) | 690,309 | - | (1,279,497 | ) |
Debts falling due |
within 1 year | (32,669 | ) | (242,655 | ) | - | (275,324 | ) |
Debts falling due |
after 1 year | (3,433,077 | ) | 797,357 | - | (2,635,720 | ) |
(4,059,602 | ) | 1,245,011 | - | (4,190,541 | ) |
Total | (3,278,048 | ) | 636,484 | - | (4,017,514 | ) |
HEALY GROUP LIMITED (REGISTERED NUMBER: 08404317) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 30 June 2023 |
1. | STATUTORY INFORMATION |
Healy Group Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The group's consolidated financial statements consist of the financial statements of Healy Group Limited and all entities which are controlled by the company (its subsidiaries). The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control over the operating and financial decisions is obtained and cease to be consolidated from the date on which control is transferred out of the group. Control is achieved when the company has the ability and right, directly or indirectly, to govern the financial and operating policies of an entity. This enables the company to affect the amount of economic benefit generated from the entity's activities. This is evident for all of the Group's subsidiaries. |
All subsidiaries have a year end of 30 June 2023. |
All intercompany balances and transactions, including recognised gains arising from inter-group transactions have been eliminated in full. Unrealised losses are eliminated in the same manner as recognised gains except to the extent that they provide evidence of impairment. |
Significant judgements and estimates |
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
HEALY GROUP LIMITED (REGISTERED NUMBER: 08404317) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 30 June 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable net of vat and trade discounts. The policies adopted for the recognition of turnover are as follows: |
Construction contracts |
When the outcome of a construction contract can be estimated reliably, contract costs and turnover are recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to quantity surveyor's reports. |
When the outcome cannot be measured reliably, contract costs are recognised as an expense in the period in which they are incurred and contract turnover is recognised to the extent of costs incurred that it is probable will be recoverable. |
When it is probable that contract costs will exceed the total contract turnover, the expected loss is recognised as an expense immediately, with a corresponding provision. |
Sale of goods |
Turnover from sale of plant is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that economic benefits associated with the transaction will flow to the company and the cost incurred in respect of the transaction can be measured reliably. This is usually on dispatch of goods. |
Rendering of hire services |
When the outcome of a transaction can be estimated reliably, turnover from hire of plant is recognised by reference to stage of completion at the balance sheet date. Stage of completion is measured by reference to period of hire at customers. Where the outcome cannot be measured reliably, turnover is recognised only to the extent of the expenses recognised that are recoverable. |
Interest and dividends receivable |
Interest income is recognised using the effective method and dividends income is recognised as the company's right to receive payment is established. |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Convertible redeemable preferred ordinary shares |
Following the Triennial Review 2017, the Convertible Redeemable Preferred Ordinary shares (CRPO) have been measured at cost less impairment in accordance with FRS102, 12.8. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
HEALY GROUP LIMITED (REGISTERED NUMBER: 08404317) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 30 June 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Retentions |
It is the company's policy to absorb the cost of remedial work arising on contracts in the year in which they are incurred. |
Debtors and creditors receivable/payable within one year |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. |
Investments |
Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value through the profit and loss if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
30/6/23 | 30/6/22 |
£ | £ |
Revenue from contract work | 32,902,126 | 29,913,402 |
32,902,126 | 29,913,402 |
4. | EMPLOYEES AND DIRECTORS |
30/6/23 | 30/6/22 |
£ | £ |
Wages and salaries | 12,847,023 | 11,490,269 |
Social security costs | 91,927 | 56,331 |
Other pension costs | 45,643 | 29,733 |
12,984,593 | 11,576,333 |
HEALY GROUP LIMITED (REGISTERED NUMBER: 08404317) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 30 June 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
30/6/23 | 30/6/22 |
Directors | 4 | 4 |
Office and administration staff | 10 | 8 |
Direct employees | 31 | 45 |
30/6/23 | 30/6/22 |
£ | £ |
Directors' remuneration | 679,200 | 412,574 |
Directors' pension contributions to money purchase schemes | 16,000 | - |
Information regarding the highest paid director is as follows: |
30/6/23 | 30/6/22 |
£ | £ |
Emoluments etc | 169,800 | 104,417 |
Pension contributions to money purchase schemes | 4,000 | - |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
30/6/23 | 30/6/22 |
£ | £ |
Hire of plant and machinery | 1,288,307 | 1,015,974 |
Depreciation - owned assets | 345,958 | 239,039 |
Depreciation - assets on hire purchase contracts | 472,979 | 393,417 |
Profit on disposal of fixed assets | (154,151 | ) | (54,263 | ) |
Auditors' remuneration | 14,988 | 13,280 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
30/6/23 | 30/6/22 |
£ | £ |
Bank loan interest | 189,709 | 80,975 |
Other interest | 3,960 | - |
Hire purchase | 38,109 | 44,270 |
Preference dividend | 6,751 | 8,625 |
238,529 | 133,870 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
30/6/23 | 30/6/22 |
£ | £ |
Current tax: |
UK corporation tax | 27 | 155,304 |
Prior year over provision | (200 | ) | (39,079 | ) |
Total current tax | (173 | ) | 116,225 |
Deferred taxation | 257,327 | 111,735 |
Tax on profit | 257,154 | 227,960 |
HEALY GROUP LIMITED (REGISTERED NUMBER: 08404317) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 30 June 2023 |
7. | TAXATION - continued |
Reconciliation of total tax charge 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: |
30/6/23 | 30/6/22 |
£ | £ |
Profit before tax | 1,048,722 | 1,322,467 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
199,257 |
251,269 |
Effects of: |
Expenses not deductible for tax purposes | 26,245 | 13,175 |
Depreciation in excess of capital allowances | 106,953 | 135,612 |
Utilisation of tax losses | (99,219 | ) | (122,657 | ) |
Profit on disposal of assets | - | (10,309 | ) |
Franked investment income | (55 | ) | (52 | ) |
Prior year overprovision | (200 | ) | (39,078 | ) |
Tax losses carried forward | 24,173 | - |
Total tax charge | 257,154 | 227,960 |
8. | INDIVIDUAL INCOME STATEMENT |
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. |
9. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 July 2022 | 1,400,240 | 4,823,809 | 81,255 | 1,167,701 | 7,473,005 |
Additions | - | 1,082,535 | 7,074 | 328,961 | 1,418,570 |
Disposals | - | (558,400 | ) | - | (138,160 | ) | (696,560 | ) |
At 30 June 2023 | 1,400,240 | 5,347,944 | 88,329 | 1,358,502 | 8,195,015 |
DEPRECIATION |
At 1 July 2022 | 87,099 | 3,403,197 | 43,413 | 794,996 | 4,328,705 |
Charge for year | 28,005 | 615,325 | 6,737 | 168,870 | 818,937 |
Eliminated on disposal | - | (479,477 | ) | - | (111,975 | ) | (591,452 | ) |
At 30 June 2023 | 115,104 | 3,539,045 | 50,150 | 851,891 | 4,556,190 |
NET BOOK VALUE |
At 30 June 2023 | 1,285,136 | 1,808,899 | 38,179 | 506,611 | 3,638,825 |
At 30 June 2022 | 1,313,141 | 1,420,612 | 37,842 | 372,705 | 3,144,300 |
HEALY GROUP LIMITED (REGISTERED NUMBER: 08404317) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 30 June 2023 |
9. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1 July 2022 | 842,678 | 443,377 | 1,286,055 |
Additions | 1,046,988 | 328,961 | 1,375,949 |
Transfer to ownership | (144,600 | ) | (152,176 | ) | (296,776 | ) |
At 30 June 2023 | 1,745,066 | 620,162 | 2,365,228 |
DEPRECIATION |
At 1 July 2022 | 410,320 | 250,271 | 660,591 |
Charge for year | 356,258 | 116,721 | 472,979 |
Transfer to ownership | (90,284 | ) | (97,002 | ) | (187,286 | ) |
At 30 June 2023 | 676,294 | 269,990 | 946,284 |
NET BOOK VALUE |
At 30 June 2023 | 1,068,772 | 350,172 | 1,418,944 |
At 30 June 2022 | 432,358 | 193,106 | 625,464 |
10. | FIXED ASSET INVESTMENTS |
Group |
Shares in |
group |
undertakings |
£ |
COST |
At 1 July 2022 |
and 30 June 2023 | 1,708,300 |
NET BOOK VALUE |
At 30 June 2023 | 1,708,300 |
At 30 June 2022 | 1,708,300 |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 July 2022 |
and 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
HEALY GROUP LIMITED (REGISTERED NUMBER: 08404317) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 30 June 2023 |
10. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
11. | STOCKS |
Group |
30/6/23 | 30/6/22 |
£ | £ |
Stock of land and raw material | 394,215 | 355,310 |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
30/6/23 | 30/6/22 | 30/6/23 | 30/6/22 |
£ | £ | £ | £ |
Trade debtors | 9,110,567 | 6,869,324 |
Amounts owed by group undertakings | - | - |
Other debtors | 4,748 | 4,748 |
VAT | 536,599 | 446,134 |
Deferred tax asset | - | 85,296 | - | - |
Prepayments and accrued income | 366,218 | 317,039 |
10,018,132 | 7,722,541 |
Deferred tax asset |
Group | Company |
30/6/23 | 30/6/22 | 30/6/23 | 30/6/22 |
£ | £ | £ | £ |
Deferred taxation | - | (185,243 | ) | - | - |
Tax losses | - | 270,539 | - | - |
- | 85,296 |
13. | CURRENT ASSET INVESTMENTS |
Group |
30/6/23 | 30/6/22 |
£ | £ |
Listed investments | 206 | 206 |
Market value of listed investments held by the group at 30 June 2023 - £1,249 (2022 - £1,101). |
HEALY GROUP LIMITED (REGISTERED NUMBER: 08404317) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 30 June 2023 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
30/6/23 | 30/6/22 | 30/6/23 | 30/6/22 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 275,324 | 32,669 |
Hire purchase contracts (see note 17) | 577,716 | 355,278 |
Trade creditors | 5,004,455 | 4,116,986 |
Amounts owed to group undertakings | - | - |
Amounts owed to associates | 90,000 | - | - | - |
Corporation tax payable | (923 | ) | 114,935 |
Social security & other taxes | 284,709 | 213,126 |
Other creditors | 2,636 | - |
Directors' loan accounts | 314,050 | 253,258 | - | - |
Accrued expenses | 348,667 | 219,332 |
6,896,634 | 5,305,584 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
30/6/23 | 30/6/22 | 30/6/23 | 30/6/22 |
£ | £ | £ | £ |
Bank loans (see note 16) | 2,185,730 | 2,858,087 |
Preference shares (see note 16) | 449,990 | 574,990 |
Hire purchase contracts (see note 17) | 701,781 | 238,578 |
3,337,501 | 3,671,655 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
30/6/23 | 30/6/22 | 30/6/23 | 30/6/22 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 275,324 | 32,669 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 276,703 | 263,004 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 1,909,027 | 2,595,083 |
Amounts falling due in more than five years: |
Repayable otherwise than by instalments |
Preference shares | 449,990 | 574,990 | 449,990 | 574,990 |
Details of shares shown as liabilities are as follows: |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30/6/23 | 30/6/22 |
value: | £ | £ |
Convertible redeemable |
preferred ordinary | £1 | 449,990 | 574,990 |
HEALY GROUP LIMITED (REGISTERED NUMBER: 08404317) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 30 June 2023 |
16. | PREFERENCE SHARES - continued |
In accordance with FRS 102, Convertible Redeemable Preferred Ordinary Shares (CRPO) have been classified as non-equity shares. Any dividends payable on such shares will be shown as interest. |
The following rights are attached to the CRPO shares: |
(i) | No right to vote, attend or speak at any general meeting, but entitled to receive notice for information only provided always that the holders of the CRPO shares shall be entitled to vote on any proposed resolution to alter in any way the rights attaching to the CRPO shares and shall then have one vote per share |
(ii) | A right to participate in the assets of the company on a winding up or in the consideration on sale or transfer of the company |
(iii) | A right to a dividend at a minimum rate of 1.5p per share |
The maximum number of CRPO shares to be redeemed at the option of the company in any year is 150,000. However, each holder of CRPO shares has the right to redeem up to 60,000 CRPO shares held by them each year. Therefore, if both CRPO shareholders were to exercise this right, the company would need to redeem 120,000 CRPO shares (less any number already redeemed at the option of the company), provided it could lawfully do so. |
Accordingly, there is flexibility for redemption of between 0 and 150,000 CRPO shares each year. However, all CRPO shares must be redeemed by the date of the seventeenth anniversary of their date of issue of 3 July 2013. |
The CRPO shares may be redeemed in full at the option of the shareholders in the event of the provisions contained in Part V, Chapter 3, TCGA 1992 (Business Asset Disposal Relief) are abolished without being replaced by provisions providing for an equivalent or more favourable relief. |
No premium is payable on redemption. |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
30/6/23 | 30/6/22 |
£ | £ |
Gross obligations repayable: |
Within one year | 629,046 | 377,132 |
Between one and five years | 768,968 | 253,724 |
1,398,014 | 630,856 |
Finance charges repayable: |
Within one year | 51,330 | 21,854 |
Between one and five years | 67,187 | 15,146 |
118,517 | 37,000 |
Net obligations repayable: |
Within one year | 577,716 | 355,278 |
Between one and five years | 701,781 | 238,578 |
1,279,497 | 593,856 |
Hire purchase and finance lease creditors relate to plant and machinery. |
HEALY GROUP LIMITED (REGISTERED NUMBER: 08404317) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 30 June 2023 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
30/6/23 | 30/6/22 |
£ | £ |
Bank loans | 2,461,054 | 2,890,756 |
Hire purchase contracts | 1,279,497 | 593,856 |
3,740,551 | 3,484,612 |
Security is offered by way of a debenture over the assets of the group. |
19. | PROVISIONS FOR LIABILITIES |
Group |
30/6/23 | 30/6/22 |
£ | £ |
Deferred tax |
Deferred taxation | 400,585 | - |
Tax losses | (228,555 | ) | - |
172,030 | - |
Group |
Deferred |
tax |
£ |
Balance at 1 July 2022 | (85,296 | ) |
Accelerated capital allowances | 400,585 |
Tax losses carried forward | (228,555 | ) |
Balance at 30 June 2023 | 86,734 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30/6/23 | 30/6/22 |
value: | £ | £ |
Ordinary | £1 | 100 | 100 |
VOTING RIGHTS |
(i) | A member shall have one vote for every share of which he/she is the holder |
(ii) | A right to participate in the assets of the company on a winding up or in the consideration on sale or transfer of the company |
(iii) | A right to a dividend if declared on the ordinary shares in the capital of the company |
HEALY GROUP LIMITED (REGISTERED NUMBER: 08404317) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 30 June 2023 |
21. | RESERVES |
Group |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 July 2022 | 3,706,726 | 2,940 | 1,025,000 | 4,734,666 |
Profit for the year | 791,568 | 791,568 |
Cash share issue | (125,000 | ) | - | 125,000 | - |
At 30 June 2023 | 4,373,294 | 2,940 | 1,150,000 | 5,526,234 |
Company |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 July 2022 | 705,908 | 1,025,000 | 1,730,908 |
Profit for the year |
Cash share issue | (125,000 | ) | 125,000 | - |
At 30 June 2023 | 774,158 | 1,150,000 | 1,924,158 |
22. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 30 June 2023 and 30 June 2022: |
30/6/23 | 30/6/22 |
£ | £ |
G Tongue |
Balance outstanding at start of year | 2,315 | (4,010 | ) |
Amounts advanced | - | 6,325 |
Amounts repaid | - | - |
Amounts written off | - | - |
Amounts waived | (2,315 | ) | - |
Balance outstanding at end of year | - | 2,315 |
P Healy |
Balance outstanding at start of year | (98 | ) | 7,710 |
Amounts advanced | - | 9,192 |
Amounts repaid | 98 | (17,000 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | - | (98 | ) |
Where Directors have received advances during the year, these are repayable on demand and have been subjected to HMRC's official rate of interest in use at that time. |
With regards to Mr G Tongue, the £2,315 remains due to the company and has been transferred to other debtors as he is no longer a director of the company. |
23. | ULTIMATE CONTROLLING PARTY |
There is no one ultimate controlling party. |