Company registration number 13725873 (England and Wales)
HEDGEHOG CONSTRUCTION LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
HEDGEHOG CONSTRUCTION LIMITED
COMPANY INFORMATION
Director
Mr D Crandon
Company number
13725873
Registered office
27 Mortimer Street
London
W1T 3BL
Auditor
Blinkhorns
27 Mortimer Street
London
W1T 3BL
HEDGEHOG CONSTRUCTION LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2
Director's responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 20
HEDGEHOG CONSTRUCTION LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023

The director presents the strategic report for the year ended 31 October 2023.

Review of the business

In trading, revenue reached £33.7m and gross profit £4.18m.

 

The company was incorporated in November 2021 as a subsidiary to separate the trading activities from the assets of the company. As a result of this we do not have a full comparable period.

 

The 2023 combined revenues of the Hedgehog Construction Group of £33.7m, in comparison to the 2022 revenue of Hedgehog Construction Holding of £35.74m, illustrates a decrease of £2m.

 

The company’s profit before tax for 2023 was £2.33m.

Principal risks and uncertainties

The company is exposed to a number of risks and uncertainties. Financial management policies are employed to address these, primarily relating to interest rate, liquidity and credit risks. The Director understands the importance of these risks and uses internal monitoring tools and external resources to manage these.

Key performance indicators

The directors employ key performance indicators to assess the company’s performance. The KPIs for the 2023 financial period include:

 

On behalf of the board

Mr D Crandon
Director
27 June 2024
- 1 -
HEDGEHOG CONSTRUCTION LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023

The director presents his annual report and financial statements for the year ended 31 October 2023.

Principal activities

The principal activity of the company during the year was that of TV and film scenery fabrication.

Results and dividends

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

Ordinary dividends were paid amounting to £1,755,000. The director does not recommend payment of a final dividend.

Director

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

Mr D Crandon
Statement of disclosure to auditor

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

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr D Crandon
Director
27 June 2024
- 2 -
HEDGEHOG CONSTRUCTION LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2023

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

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

 

 

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

- 3 -
HEDGEHOG CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF HEDGEHOG CONSTRUCTION LIMITED
Opinion
- 4 -

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

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

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

 

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 our audit:

HEDGEHOG CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF HEDGEHOG CONSTRUCTION LIMITED
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.

 

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

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

 

We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.  The key laws and regulations we have considered in this context included the Companies Act 2006, pensions and tax legislation. In addition, we have considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

 

 

 

 

- 5 -
HEDGEHOG CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF HEDGEHOG CONSTRUCTION LIMITED

 

 

 

Based on the results of our risk assessment we designed our audit procedures to identify and to address material misstatements in relation to fraud, including:

 

 

- The possibility of fraudulent or corrupt payments made through third parties.

- The risk of bribery and corruption.

- The opportunity to segregate duties within the entity.

 

 

We considered the extent to which the audit was considered capable of detecting irregularities.

 

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.  Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through collusion.

 

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

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.

James Alexander ACA (Senior Statutory Auditor)
For and on behalf of Blinkhorns
27 June 2024
27 Mortimer Street
London
W1T 3BL
- 6 -
HEDGEHOG CONSTRUCTION LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 OCTOBER 2023
2023
2022
Notes
£
£
Turnover
3
33,701,289
23,688,637
Cost of sales
(29,522,237)
(21,262,648)
Gross profit
4,179,052
2,425,989
Administrative expenses
(1,844,742)
(883,357)
Operating profit
4
2,334,310
1,542,632
Interest receivable and similar income
7
444
1
Profit before taxation
2,334,754
1,542,633
Tax on profit
8
(525,766)
(291,839)
Profit for the financial year
1,808,988
1,250,794

The profit and loss account has been prepared on the basis that all operations are continuing operations.

- 7 -
HEDGEHOG CONSTRUCTION LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2023
2023
2022
£
£
Profit for the year
1,808,988
1,250,794
Other comprehensive income
-
-
Total comprehensive income for the year
1,808,988
1,250,794
- 8 -
HEDGEHOG CONSTRUCTION LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2023
31 October 2023
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
5,975
5,353
Current assets
Stocks
11
101,753
-
Debtors
12
1,318,102
4,535,384
Cash at bank and in hand
789,930
897,439
2,209,785
5,432,823
Creditors: amounts falling due within one year
13
(2,010,977)
(5,287,381)
Net current assets
198,808
145,442
Net assets
204,783
150,795
Capital and reserves
Called up share capital
15
1
1
Profit and loss reserves
204,782
150,794
Total equity
204,783
150,795

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved and signed by the director and authorised for issue on 27 June 2024
Mr D Crandon
Director
Company registration number 13725873 (England and Wales)
- 9 -
HEDGEHOG CONSTRUCTION LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 5 November 2021
-
0
-
0
-
Year ended 31 October 2022:
Profit and total comprehensive income
-
1,250,794
1,250,794
Issue of share capital
15
1
-
1
Dividends
9
-
(1,100,000)
(1,100,000)
Balance at 31 October 2022
1
150,794
150,795
Year ended 31 October 2023:
Profit and total comprehensive income
-
1,808,988
1,808,988
Dividends
9
-
(1,755,000)
(1,755,000)
Balance at 31 October 2023
1
204,782
204,783
- 10 -
HEDGEHOG CONSTRUCTION LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
18
2,093,699
2,004,574
Income taxes paid
(443,444)
-
0
Net cash inflow from operating activities
1,650,255
2,004,574
Investing activities
Purchase of tangible fixed assets
(3,208)
(7,137)
Interest received
444
1
Net cash used in investing activities
(2,764)
(7,136)
Financing activities
Proceeds from issue of shares
-
0
1
Dividends paid
(1,755,000)
(1,100,000)
Net cash used in financing activities
(1,755,000)
(1,099,999)
Net (decrease)/increase in cash and cash equivalents
(107,509)
897,439
Cash and cash equivalents at beginning of year
897,439
-
0
Cash and cash equivalents at end of year
789,930
897,439
- 11 -
HEDGEHOG CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
Company information

Hedgehog Construction Limited is a private company limited by shares incorporated in England and Wales. The registered office is 27 Mortimer Street, London, W1T 3BL.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

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

The financial statements have been prepared on a going concern basis after due consideration of the principal risks and uncertainties disclosed in the directors' report and strategic report. In reaching their conclusion the company's directors have considered the financial position of the company and the group to which it belongs and concluded it has adequate resources to continue in operational existence for the foreseeable future and therefore the going concern basis continues to be adopted in preparing the financial statements.

1.3
Turnover

Revenue is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

1.4
Tangible fixed assets

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

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

Plant and equipment
25% Straight Line

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

1.5
Impairment of fixed assets

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

- 12 -
HEDGEHOG CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)

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

 

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

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Stocks
- 13 -

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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

1.7
Cash and cash equivalents

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

1.8
Financial instruments

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

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

HEDGEHOG CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Basic financial liabilities

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

 

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

 

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

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

- 14 -
HEDGEHOG CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
Derecognition of financial liabilities

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

1.9
Taxation

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

Current tax

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

1.10
Employee benefits

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

 

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

 

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

1.11
Retirement benefits

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

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

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

 

There were no critical judgements or sources of estimation uncertainty that the directors have made in the process of applying the accounting policies and that have the most significant effect on the amounts recognised in the financial statements.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sale of services
33,701,289
23,688,637
- 15 -
HEDGEHOG CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
3
Turnover and other revenue
(Continued)
2023
2022
£
£
Other revenue
Interest income
444
1
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
15,000
15,000
Depreciation of owned tangible fixed assets
2,586
1,784
5
Employees

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

2023
2022
Number
Number
99
136

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
7,382,031
5,551,887
Social security costs
897,097
720,725
Pension costs
81,765
41,292
8,360,893
6,313,904
6
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
12,570
12,570
Company pension contributions to defined contribution schemes
190
190
12,760
12,760
- 16 -
HEDGEHOG CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
-
0
1
Other interest income
444
-
0
Total income
444
1
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
-
0
1
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
525,766
291,839

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

2023
2022
£
£
Profit before taxation
2,334,754
1,542,633
Expected tax charge based on the standard rate of corporation tax in the UK of 22.52% (2022: 19.00%)
525,735
293,100
Tax effect of expenses that are not deductible in determining taxable profit
768
502
Permanent capital allowances in excess of depreciation
(737)
(1,763)
Taxation charge for the year
525,766
291,839

Change in tax rates

 

The Finance Bill 2021 stated the main corporation tax rate of 19% will increase to 25%, effective 1 April 2023. This has led to an effective corporation tax rate of 22.52%.

9
Dividends
2023
2022
£
£
Interim paid
1,755,000
1,100,000
- 17 -
HEDGEHOG CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
10
Tangible fixed assets
Plant and equipment
£
Cost
At 1 November 2022
7,137
Additions
3,208
At 31 October 2023
10,345
Depreciation and impairment
At 1 November 2022
1,784
Depreciation charged in the year
2,586
At 31 October 2023
4,370
Carrying amount
At 31 October 2023
5,975
At 31 October 2022
5,353
11
Stocks
2023
2022
£
£
Raw materials and consumables
101,753
-
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,258,420
4,535,384
Prepayments and accrued income
59,682
-
0
1,318,102
4,535,384
13
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
626,244
2,509,384
Amounts owed to group undertakings
314,061
589,061
Corporation tax
374,161
291,839
Other taxation and social security
140,104
1,839,019
Other creditors
8,407
45,078
Accruals and deferred income
548,000
13,000
2,010,977
5,287,381
- 18 -
HEDGEHOG CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
14
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
81,765
41,292

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

15
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
1
1
1
1
16
Related party transactions

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
314,061
589,061
17
Ultimate controlling party

At the balance sheet date the parent company, and ultimate controlling party was Hedgehog Construction Holdings Limited.

 

The principal place of business of Hedgehog Construction Limited is 1 Omega Way, Egham TW20 8RD

- 19 -
HEDGEHOG CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
18
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
1,808,988
1,250,794
Adjustments for:
Taxation charged
525,766
291,839
Investment income
(444)
(1)
Depreciation and impairment of tangible fixed assets
2,586
1,784
Movements in working capital:
Increase in stocks
(101,753)
-
0
Decrease/(increase) in debtors
3,217,282
(4,535,384)
(Decrease)/increase in creditors
(3,358,726)
4,995,542
Cash generated from operations
2,093,699
2,004,574
19
Analysis of changes in net funds
1 November 2022
Cash flows
31 October 2023
£
£
£
Cash at bank and in hand
897,439
(107,509)
789,930
- 20 -
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