Horsfield-Smith Limited 06728053 false 2022-11-01 2023-10-31 2023-10-31 The principal activity of the company is Chartered Accountants Digita Accounts Production Advanced 6.30.9574.0 false true true 06728053 2022-11-01 2023-10-31 06728053 2023-10-31 06728053 core:HirePurchaseContracts core:CurrentFinancialInstruments 2023-10-31 06728053 core:CurrentFinancialInstruments 2023-10-31 06728053 core:CurrentFinancialInstruments core:WithinOneYear 2023-10-31 06728053 core:Non-currentFinancialInstruments 2023-10-31 06728053 core:Non-currentFinancialInstruments core:AfterOneYear 2023-10-31 06728053 core:Goodwill 2023-10-31 06728053 core:CostValuation 2023-10-31 06728053 core:RevaluationsIncreaseDecreaseInInvestments 2023-10-31 06728053 core:FurnitureFittings 2023-10-31 06728053 bus:SmallEntities 2022-11-01 2023-10-31 06728053 bus:AuditExemptWithAccountantsReport 2022-11-01 2023-10-31 06728053 bus:FilletedAccounts 2022-11-01 2023-10-31 06728053 bus:SmallCompaniesRegimeForAccounts 2022-11-01 2023-10-31 06728053 bus:RegisteredOffice 2022-11-01 2023-10-31 06728053 bus:Director1 2022-11-01 2023-10-31 06728053 bus:PrivateLimitedCompanyLtd 2022-11-01 2023-10-31 06728053 core:Goodwill 2022-11-01 2023-10-31 06728053 core:ComputerEquipment 2022-11-01 2023-10-31 06728053 core:FurnitureFittings 2022-11-01 2023-10-31 06728053 core:OfficeEquipment 2022-11-01 2023-10-31 06728053 core:AllSubsidiaries 2022-11-01 2023-10-31 06728053 core:OtherRelatedParties 2022-11-01 2023-10-31 06728053 core:Subsidiary1 2022-11-01 2023-10-31 06728053 core:Subsidiary1 countries:England 2022-11-01 2023-10-31 06728053 countries:AllCountries 2022-11-01 2023-10-31 06728053 2022-10-31 06728053 core:Goodwill 2022-10-31 06728053 core:CostValuation 2022-10-31 06728053 core:FurnitureFittings 2022-10-31 06728053 2021-11-01 2022-10-31 06728053 2022-10-31 06728053 core:HirePurchaseContracts core:CurrentFinancialInstruments 2022-10-31 06728053 core:CurrentFinancialInstruments 2022-10-31 06728053 core:CurrentFinancialInstruments core:WithinOneYear 2022-10-31 06728053 core:Non-currentFinancialInstruments 2022-10-31 06728053 core:Non-currentFinancialInstruments core:AfterOneYear 2022-10-31 06728053 core:FurnitureFittings 2022-10-31 06728053 core:Subsidiary1 2021-11-01 2022-10-31 iso4217:GBP xbrli:pure

Registration number: 06728053

Horsfield-Smith Limited
Annual Report and
Unaudited Financial Statements

31 October 2023

 

Horsfield-Smith Limited

Contents

Balance Sheet

1 to 2

Notes to the Financial Statements

3 to 11

 

Horsfield-Smith Limited

Balance Sheet
31 October 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

5

10,228

14,189

Investments

6

814,262

843,672

 

824,490

857,861

Current assets

 

Stocks

7

67,566

74,770

Debtors

8

332,585

362,895

Cash at bank and in hand

 

3,324

44,109

 

403,475

481,774

Creditors: Amounts falling due within one year

9

(432,749)

(404,626)

Net current (liabilities)/assets

 

(29,274)

77,148

Total assets less current liabilities

 

795,216

935,009

Creditors: Amounts falling due after more than one year

9

(647,702)

(786,766)

Net assets

 

147,514

148,243

Capital and reserves

 

Called up share capital

840

840

Retained earnings

146,674

147,403

Shareholders' funds

 

147,514

148,243

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

 

Horsfield-Smith Limited

Balance Sheet
31 October 2023

Directors' responsibilities:

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

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

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

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the Directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 30 July 2024 and signed on its behalf by:
 

.........................................
PG Nicol
Director

Company Registration Number: 06728053

 

Horsfield-Smith Limited

Notes to the Financial Statements
Year Ended 31 October 2023

1

General information

The address of its registered office is:
Tower House
269 Walmersley Road
Bury
Lancashire
BL9 6NX
England

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

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

Basis of preparation

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

Going concern

The financial statements have been prepared on a going concern basis.

Revenue recognition

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

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

Government grants

Government grants in respect of capital expenditure are credited to a deferred income account and are released to profit over the expected useful lives of the relevant assets by equal annual instalments. Grants of a revenue nature are credited to income so as to match them with the expenditure to which they relate.

 

Horsfield-Smith Limited

Notes to the Financial Statements
Year Ended 31 October 2023

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

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

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

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

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

Depreciation

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

Asset class

Depreciation method and rate

Office Equipment

20% straight line

Computer Equipment

20% straight line

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the Company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

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

Asset class

Amortisation method and rate

Goodwill

10% straight line

 

Horsfield-Smith Limited

Notes to the Financial Statements
Year Ended 31 October 2023

Investments

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

Cash and cash equivalents

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

Trade debtors

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

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables.

Trade debtors also includes amounts due under contracts where the individual amount exceeds £500. These amounts are included at expected selling value less a provision for irrecoverability where appropriate.

Stocks

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

Work in progress comprises direct labour costs and those overheads that have been incurred in bringing the work in progress to its present condition. Individual amounts of unbilled work up to £500 are included in workiin progress. At each reporting date, work in progress is assessed for impairment. If stocks are impaired, the carrying amount is reduced its value. The impairment loss is recognised immediately in profit or loss.

Trade creditors

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

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

 

Horsfield-Smith Limited

Notes to the Financial Statements
Year Ended 31 October 2023

Borrowings

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

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

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

Leases

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

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

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

Dividends

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

Defined contribution pension obligation

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

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

 

Horsfield-Smith Limited

Notes to the Financial Statements
Year Ended 31 October 2023

3

Staff numbers

The average number of persons employed by the Company (including Directors) during the year, was 26 (2022 - 26).

4

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 November 2022

500,000

500,000

At 31 October 2023

500,000

500,000

Amortisation

At 1 November 2022

500,000

500,000

At 31 October 2023

500,000

500,000

Carrying amount

At 31 October 2023

-

-

5

Tangible assets

Fixtures and fittings
£

Total
£

Cost or valuation

At 1 November 2022

155,476

155,476

Additions

4,912

4,912

At 31 October 2023

160,388

160,388

Depreciation

At 1 November 2022

141,288

141,288

Charge for the year

8,872

8,872

At 31 October 2023

150,160

150,160

Carrying amount

At 31 October 2023

10,228

10,228

At 31 October 2022

14,189

14,189

 

Horsfield-Smith Limited

Notes to the Financial Statements
Year Ended 31 October 2023

6

Investments

2023
£

2022
£

Investments in subsidiaries

814,262

843,672

Subsidiaries

£

Cost or valuation

At 1 November 2022

843,672

Revaluation

(29,410)

At 31 October 2023

814,262

Provision

Carrying amount

At 31 October 2023

814,262

At 31 October 2022

843,672

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Country of incorporation

Holding

Proportion of voting rights and shares held

     

2023

2022

Subsidiary undertakings

Broadthunder Accounting Limited

England

Ordinary

100%

100%

         

Subsidiary undertakings

Broadthunder Accounting Limited

The principal activity of Broadthunder Accounting Limited is provision aof accountancy and taxation services. The loss for the financial period of Broadthunder Accounting Limited was £9,000 and the aggregate amount of Capital and reserves at the end of the period was £72,000.

 

Horsfield-Smith Limited

Notes to the Financial Statements
Year Ended 31 October 2023

7

Stocks

2023
£

2022
£

Work in progress

67,566

74,770

8

Debtors

Current

Note

2023
£

2022
£

Trade debtors

 

252,068

276,786

Amounts owed by related parties

11

54,156

40,258

Prepayments

 

25,272

42,150

Other debtors

 

1,089

3,701

   

332,585

362,895

 

Horsfield-Smith Limited

Notes to the Financial Statements
Year Ended 31 October 2023

9

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

10

183,443

184,115

Trade creditors

 

21,761

25,719

Taxation and social security

 

143,331

121,940

Accruals and deferred income

 

28,962

18,418

Other creditors

 

55,252

54,434

 

432,749

404,626

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

10

367,588

377,242

Other non-current financial liabilities

 

280,114

409,524

 

647,702

786,766

10

Loans and borrowings

Non-current loans and borrowings

2023
£

2022
£

Bank borrowings

235,685

291,014

Other borrowings

131,903

86,228

367,588

377,242

Current loans and borrowings

2023
£

2022
£

Bank borrowings

58,644

52,864

Bank overdrafts

124,799

131,030

Hire purchase contracts

-

221

183,443

184,115

 

Horsfield-Smith Limited

Notes to the Financial Statements
Year Ended 31 October 2023

11

Related party transactions

Directors' remuneration

The directors are remunerated by the company. The directors consider that their remuneration meets the criteria of being under normal market conditions.

Summary of transactions with subsidiaries

Broadthunder Accounting Limited
 Loans due from the subsidiary at the end of the year amounted to £54,156 (2021:£40,258).
Dividends received amounted to £150,000 (2021: £159,068).

 

Summary of transactions with other related parties

Former shareholders in Broadthunder Accounting Limited
 At the end of the year, there were loans amounting to £280,114 (2021: £409,524) in respect of deferred consideration for their shares. These amounts are payable within 2 years.