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Company Registration number: 02915582

Halstock Cabinet Makers Ltd

Annual Report and Financial Statements

for the Year Ended 31 December 2023

 

Halstock Cabinet Makers Ltd

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 9

Profit and Loss Account

10

Statement of Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Statement of Cash Flows

14

Notes to the Financial Statements

15 to 27

 

Halstock Cabinet Makers Ltd

Company Information

Directors

J N White

D B Golding

S R Elliot

Company secretary

A P Hancock

Registered office

Higher Halstock
Yeovil
Somerset
BA22 92Z

Auditors

Albert Goodman LLP
Goodwood House
Blackbrook Park Avenue
Taunton
Somerset
TA1 2PX

 

Halstock Cabinet Makers Ltd

Strategic Report for the Year Ended 31 December 2023

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

Principal activity

The principal activity of the company is a specialist interior refurbishment company for private houses.

Fair review of the business

2023 saw a significant increase in turnover (+14%) compared to 2022. Cost of Sales have also increased resulting in a lower Gross Profit margin. This is mainly due to the company preparing for an increased turnover within 2024 and beyond; additional staff and training have been invested in to allow for future company growth. The company remains impacted by geopolitical events affecting Halstock’s operating result, albeit on a much smaller scale than 2022.

Administrative expenses have also increased, again, in preparation for a higher turnover in future years.

Forward projections for 2024 show that turnover will increase by a similar percentage as per 2022/23 increase.

The balance sheet on page 12 shows Halstock remains in a strong cash position, especially considering the conscious internal investment decisions as described above.

The outlook is positive, with £16m of future project work secured and an additional and substantial forward pipeline of projects at quote stage. The results to date in 2024 show a return to profitability and we anticipate that this will continue, with our investment in staff, training and processes assisting us in returning to profitability.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2023

2022

Turnover

£

12,188,274

10,696,881

Gross Profit

£

2,926,307

3,940,431

EBITDA (Operating loss plus depreciation)

£

(436,157)

(596,604)

EBITDA before extraordinary item

£

(436,157)

998,681

Net current assets

£

823,142

1,815,882

Employee numbers

98

88

Fixed asset investment

£

530,838

216,773

Future developments

Halstock continues its sustainable journey, which is still in infancy, but shows promising signs of reducing our impact on the planet and increasing our offering to staff and local communities.

The company continues to develop significant working relationships with new Interior Designers and Architects as well as maintaining existing relationships. Our business is founded on relationships, trust, and reputation – they are all correlated.

This continued investment in our relationships and reputation together with investment in premises and machinery mean that the business is well placed to grow and capitalise on new opportunities.

With Cash at Bank in hand more than £3m and the strength of the balance sheet, we have the working capital required for growth.

 

Halstock Cabinet Makers Ltd

Strategic Report for the Year Ended 31 December 2023

Principal risks and uncertainties

The risks and uncertainties are dominated by the recent geopoliitical events and the knock-on effect on the High-End Residential Property Market. In addition, the inflation rate for materials and labour has increased and these pressures will have a bearing on margin. New markets and territories come with risk and Halstock has invested in key research projects to ensure our offerings are suitable for market and commercially viable. Halstock is becoming very comfortable with securing and executing projects across the Globe which is a key strategy in remaining a strong and viable company.

Halstock’s main asset is its reputation which is underpinned by the quality and honest service of its staff. Increasing our staff retention is a focus for the directors, which in turn will aid our reputation. Offering flexible working, competitive packages, continuous coaching, and professional development opportunities is at the forefront of our plan to increase our staff retention. We remain vigilant to the working capital risks of the sector and are confident in our approach and the strength of our balance sheet, which allows us to weather times of financial difficulty and extraordinary events, as evidenced in the 2022 and 2023 financial reports.

Approved by the Board on 24 April 2024 and signed on its behalf by:


D B Golding
Director

   
 

Halstock Cabinet Makers Ltd

Directors' Report for the Year Ended 31 December 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors of the company

The directors who held office during the year were as follows:

R H Miller (ceased 20 March 2024)

R D Evans (ceased 20 March 2024)

P J Miller (ceased 20 March 2024)

The following directors were appointed after the year end:

J N White (appointed 18 March 2024)

D B Golding (appointed 18 March 2024)

S R Elliot (appointed 18 March 2024)

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Financial instruments

Objectives and policies

The company’s principal instruments at the period-end comprise, bank balances, trade debtors, hire purchase facilities and balances with other group companies. The main purpose of these financial instruments is to provide finance for the company’s operations.

Price risk, credit risk, liquidity risk and cash flow risk

Due to the nature of the financial instruments used by the company, there is limited exposure to price risk. Liquidity and cash flow risk are managed by careful monitoring of the cash resources available to the company and obtaining longer term finance for funding as required. Credit risk is primarily attributable to amounts due from customers, which are managed closely to mitigate this risk.

Future Developments

The future developments of the business are included within the strategic report.

Approved by the Board on 24 April 2024 and signed on its behalf by:


D B Golding
Director

   
 

Halstock Cabinet Makers Ltd

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

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

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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 transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Halstock Cabinet Makers Ltd

Independent Auditor's Report to the Members of Halstock Cabinet Makers Ltd

Opinion

We have audited the financial statements of Halstock Cabinet Makers Ltd (the 'company') for the year ended 31 December 2023, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and 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 company's affairs as at 31 December 2023 and of its loss for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 original financial statements were 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.

 

Halstock Cabinet Makers Ltd

Independent Auditor's Report to the Members of Halstock Cabinet Makers Ltd

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter 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 Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

Matters on which we are required to report by exception

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, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 5, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

 

Halstock Cabinet Makers Ltd

Independent Auditor's Report to the Members of Halstock Cabinet Makers Ltd

Auditor Responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the manufactoring and refurbishment sector;

we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental Regulations 2013 and health and safety legislation;

we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

performed analytical procedures to identify any unusual or unexpected relationships;

tested journal entries to identify unusual transactions;

assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

Halstock Cabinet Makers Ltd

Independent Auditor's Report to the Members of Halstock Cabinet Makers Ltd

agreeing financial statement disclosures to underlying supporting documentation;

reading the minutes of meetings of those charged with governance; and

enquiring of management as to actual and potential litigation and claims.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities 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 auditor's report.

Use of our report

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





Alison Kerr FCA (Senior Statutory Auditor)
For and on behalf of Albert Goodman LLP, Statutory Auditor

Goodwood House
Blackbrook Park Avenue
Taunton
Somerset
TA1 2PX

29 April 2024

 

Halstock Cabinet Makers Ltd

Profit and Loss Account
for the Year Ended 31 December 2023

Note

2023
 £

2022
 £

Turnover

3

12,188,274

10,696,881

Cost of sales

 

(9,261,967)

(6,756,450)

Gross profit

 

2,926,307

3,940,431

Administrative expenses

 

(3,800,317)

(3,271,267)

Other operating income

4

115,971

53,381

Impairment of irrecoverable balance

5

-

(1,591,285)

Operating loss

6

(758,039)

(868,740)

Other interest receivable and similar income

7

9,163

803

Interest payable and similar charges

8

(3,123)

(6,564)

Loss before tax

 

(751,999)

(874,501)

Taxation

12

100,608

180,478

Loss for the financial year

 

(651,391)

(694,023)

The above results were derived from continuing operations.

 

Halstock Cabinet Makers Ltd

Statement of Comprehensive Income
for the Year Ended 31 December 2023

31 December
2023
£

31 December
2022
£

Loss for the year

(651,391)

(694,023)

Total comprehensive income for the year

(651,391)

(694,023)

 

Halstock Cabinet Makers Ltd

(Registration number: 02915582)
Balance Sheet as at 31 December 2023

Note

31 December
2023
£

31 December
2022
£

Fixed assets

 

Tangible assets

13

1,440,609

1,231,655

Current assets

 

Stocks

14

107,277

99,462

Debtors

15

2,846,784

1,825,017

Cash at bank and in hand

 

3,025,857

1,650,375

 

5,979,918

3,574,854

Creditors: Amounts falling due within one year

17

(5,156,776)

(1,758,972)

Net current assets

 

823,142

1,815,882

Total assets less current liabilities

 

2,263,751

3,047,537

Creditors: Amounts falling due after more than one year

17

(5,626)

(37,413)

Provisions for liabilities

18

-

(100,608)

Net assets

 

2,258,125

2,909,516

Capital and reserves

 

Called up share capital

2,682

2,682

Share premium reserve

114,376

114,376

Retained earnings

2,141,067

2,792,458

Shareholders' funds

 

2,258,125

2,909,516

Approved and authorised by the Board on 24 April 2024 and signed on its behalf by:
 


D B Golding
Director

   
 

Halstock Cabinet Makers Ltd

Statement of Changes in Equity
for the Year Ended 31 December 2023

Share capital
£

Share premium
£

Retained earnings
£

Total
£

At 1 January 2023

2,682

114,376

2,792,458

2,909,516

Loss for the year

-

-

(651,391)

(651,391)

At 31 December 2023

2,682

114,376

2,141,067

2,258,125

Share capital
£

Share premium
£

Retained earnings
£

Total
£

At 1 January 2022

2,682

114,376

3,613,286

3,730,344

Loss for the year

-

-

(694,023)

(694,023)

Dividends

-

-

(126,805)

(126,805)

At 31 December 2022

2,682

114,376

2,792,458

2,909,516

 

Halstock Cabinet Makers Ltd

Statement of Cash Flows
for the Year Ended 31 December 2023

Note

2023
 £

2022
 £

Cash flows from operating activities

Loss for the year

 

(651,391)

(694,023)

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

6

321,884

276,136

Finance income

7

(9,163)

(803)

Finance costs

8

3,123

6,564

Income tax expense

12

(100,608)

(180,478)

 

(436,155)

(592,604)

Working capital adjustments

 

Increase in stocks

14

(7,815)

(84,462)

(Increase)/decrease in trade and other debtors

15

(1,176,207)

1,764,482

Increase in trade and other creditors

17

3,460,803

252,158

Cash generated from operations

 

1,840,626

1,339,574

Income taxes received/(paid)

12

154,440

(92,888)

Net cash flow from operating activities

 

1,995,066

1,246,686

Cash flows from investing activities

 

Interest received

7

9,163

803

Acquisitions of tangible assets

(530,838)

(216,773)

Net cash flows from investing activities

 

(521,675)

(215,970)

Cash flows from financing activities

 

Interest paid

8

(3,123)

(6,564)

Repayment of other borrowing

 

(94,786)

(121,327)

Dividends paid

-

(126,805)

Net cash flows from financing activities

 

(97,909)

(254,696)

Net increase in cash and cash equivalents

 

1,375,482

776,020

Cash and cash equivalents at 1 January 2023

 

1,650,375

874,355

Cash and cash equivalents at 31 December 2023

16

3,025,857

1,650,375

 

Halstock Cabinet Makers Ltd

Notes to the Financial Statements
for the Year Ended 31 December 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Higher Halstock
Yeovil
Somerset
BA22 92Z

The principal place of business is:
Nightingale Works
Cheddington Road
Halstock
Yeovil
BA22 9QZ

2

Accounting policies

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

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.

These financial statements are presented in Sterling (£).

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.

 

Halstock Cabinet Makers Ltd

Notes to the Financial Statements
for the Year Ended 31 December 2023

Judgements

Amounts recoverable on contracts are recognised by reference to the proportion of costs incurred to date to total anticipated costs. Determining the anticipated total costs requires management judgement and ongoing monitoring and reassessment takes place on all contracts regularly. A contingency is included in the anticipated total costs based on previous experience and gradually reduced as the contract outcome becomes more certain.

The Directors have completed detailed forecasts and cash flow projections for the company based on current ongoing contracts, contracts awarded but not yet started and an estimate based on the pipeline of work. The Directors have also taken into account their existing cash reserves and the support available from their parent company if it should be required . The Directors have concluded that the company can continue to operate within the cash and finance available and accordingly have prepared these accounts on the going concern basis.

Turnover recognition

Turnover represents amounts receivable for goods and services net of VAT.

Turnover and costs arising from contracts are recognised in the profit and loss when the outcome of the contract can be estimated reliably. Both turnover and costs are measured by reference to the stage of completion of the contract. The stage of completion of the contract at the end of the reporting period is measured by the proportion of the costs incurred to date where contract activity has taken place to total anticipated costs

When the outcome of a contract can not be reliably estimated turnover is only recognised to the extent that it is probable that the contracts costs will be recovered. All contract costs are then recognised as an expense is incurred.

When it is probable that contract costs will exceed total contract turnover, the expected loss on the contract is recognised as an expense and a corresponding provision recognised for the onerous contract.

Where turnover has been recognised for a partially completed project but not yet invoiced, the amount receivable is recognised within other debtors as amounts recoverable on contracts.

Consideration received in advance of a project is recognised as turnover as the project progresses, with the balance yet to be recognised as turnover included within other creditors as amounts due to customers for contract work.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate agreed at group level 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 measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises deferred tax. Tax is recognised in the profit and loss account, 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.

 

Halstock Cabinet Makers Ltd

Notes to the Financial Statements
for the Year Ended 31 December 2023

The current 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.

Deferred tax is recognised on timing differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Deferred tax liabilities are presented within provisions for liabilities on the balance sheet.

Tangible assets

Tangible assets are stated at cost less accumulated depreciation.

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

Short leasehold land and buildings

10 years straight line basis

Furniture, fittings and equipment

10 and 3 years straight line basis

Motor vehicles

5 years straight line basis

Plant and machinery

10, 5 and 3 years straight line basis

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.

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 debtor

Other debtors includes amounts recoverable on contracts as described in the turnover recognition policy.

 

Halstock Cabinet Makers Ltd

Notes to the Financial Statements
for the Year Ended 31 December 2023

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.

The cost of finished goods comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. Raw materials and consumables are recognised at cost. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors 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.

Other creditors includes amounts received for contracts in excess of the turnover recognised on those contracts as set out in the turnover recognition policy.

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.

Assets held under hire purchase agreements are capitalised as tangible fixed assets with the future obligation being recognised as a liability. Finance costs are recognised in the Profit and Loss Account calculated at a constant periodic rate of interest over the term of the liability.

 

Halstock Cabinet Makers Ltd

Notes to the Financial Statements
for the Year Ended 31 December 2023

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

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.

Defined contribution pension obligation

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations.

The contributions are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

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.

Financial instruments

Classification
The company only holds basic financial instruments as defined in FRS102. The financial assets and financial liabilities of the company are as follows:

Financial assets - trade and other debtors, accrued income, amounts owed by group undertakings and other debtors are basic financial instruments, and are debt instruments measured at amortised cost. Prepayments are not financial instruments.

Cash at bank - clasified as a basic financial instrument and is measured at face value

Financial liabilities - trade creditors, amounts owed to group undertakings, bank loans, accrued expenses and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security and corporation tax creditors are not included in the financial instruments disclosure definition.

 

 

Halstock Cabinet Makers Ltd

Notes to the Financial Statements
for the Year Ended 31 December 2023

3

Turnover

The analysis of the company's Turnover for the year from continuing operations is as follows:

31 December
2023
£

31 December
2022
£

Sale of goods

12,188,274

10,696,881

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

31 December
2023
£

31 December
2022
£

Government grants

34,418

-

Miscellaneous other operating income

81,553

53,381

115,971

53,381

5

Impairment of irrecoverable balance

In the prior year the profit and loss account included a charge of £1,591,285 in respect of the impairment of balances due from customers. This impairment has arisen due to extraordinary geopoltical events.

6

Operating (loss)/profit

Arrived at after charging/(crediting)

31 December
2023
£

31 December
2022
£

Depreciation expense

321,882

276,136

Foreign exchange losses/(gains)

26,344

(9,052)

Operating lease expense - plant and machinery

2,284

1,346

7

Other interest receivable and similar income

31 December
2023
£

31 December
2022
£

Interest income on bank deposits

7,787

803

Other finance income

1,376

-

9,163

803

 

Halstock Cabinet Makers Ltd

Notes to the Financial Statements
for the Year Ended 31 December 2023

8

Interest payable and similar expenses

31 December
2023
£

31 December
2022
£

Interest on obligations under finance leases and hire purchase contracts

3,123

6,564

9

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

31 December
2023
£

31 December
2022
£

Wages and salaries

3,362,085

3,028,785

Social security costs

357,046

318,505

Pension costs, defined contribution scheme

260,596

233,019

Other employee expense

51,744

46,886

4,031,471

3,627,195

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

31 December
2023
No.

31 December
2022
No.

Production

54

45

Administration and support

25

27

Sales

19

16

98

88

10

Directors' remuneration

The directors' remuneration for the year was as follows:

31 December
2023
£

31 December
2022
£

Remuneration

71,703

101,469

Contributions paid to money purchase schemes

14,763

14,860

86,466

116,329

 

Halstock Cabinet Makers Ltd

Notes to the Financial Statements
for the Year Ended 31 December 2023

11

Auditors' remuneration

31 December
2023
£

31 December
2022
£

Audit of the financial statements

20,000

20,000


 

12

Taxation

Tax charged/(credited) in the profit and loss account

31 December
2023
£

31 December
2022
£

Current taxation

UK corporation tax

-

(36,713)

UK corporation tax adjustment to prior periods

-

(41,108)

-

(77,821)

Deferred taxation

Arising from origination and reversal of timing differences

(100,608)

(102,657)

Tax receipt in the income statement

(100,608)

(180,478)

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of 25% (2022 - 19%).

The differences are reconciled below:

31 December
2023
£

31 December
2022
£

Loss before tax

(751,999)

(874,501)

Corporation tax at standard rate

(188,000)

(166,155)

Tax increase from effect of capital allowances and depreciation

1,660

13,996

Tax decrease arising from group relief

-

(36,713)

Deferred tax expense relating to changes in tax rates or laws

12,701

32,418

Tax decrease from effect of adjustment in research and development tax credit

-

(41,108)

Other tax effects for reconciliation between accounting profit and tax expense (income)

73,031

17,084

Total tax credit

(100,608)

(180,478)

 

Halstock Cabinet Makers Ltd

Notes to the Financial Statements
for the Year Ended 31 December 2023

13

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Plant and machinery
 £

Total
£

Cost or valuation

At 1 January 2023

794,829

336,978

78,611

1,730,564

2,940,982

Additions

221,028

54,342

25,591

229,877

530,838

At 31 December 2023

1,015,857

391,320

104,202

1,960,441

3,471,820

Depreciation

At 1 January 2023

377,431

289,830

78,611

963,455

1,709,327

Charge for the year

68,201

40,098

4,265

209,320

321,884

At 31 December 2023

445,632

329,928

82,876

1,172,775

2,031,211

Carrying amount

At 31 December 2023

570,225

61,392

21,326

787,666

1,440,609

At 31 December 2022

417,398

47,148

-

767,109

1,231,655

Included within the net book value of land and buildings above is £570,225 (2022 - £417,398) in respect of short leasehold land and buildings.
 

14

Stocks

31 December
2023
£

31 December
2022
£

Raw materials and consumables

107,277

89,212

Finished goods and goods for resale

-

10,250

107,277

99,462

 

Halstock Cabinet Makers Ltd

Notes to the Financial Statements
for the Year Ended 31 December 2023

15

Debtors

Note

31 December
2023
£

31 December
2022
£

Trade debtors

 

594,978

14,516

Amounts owed by related parties

23

377,246

148,545

Other debtors

 

294,286

299,341

Prepayments

 

112,588

60,220

Gross amount due from customers for contract work

 

1,467,686

1,147,955

Corporation tax

12

-

154,440

 

2,846,784

1,825,017

16

Cash and cash equivalents

31 December
2023
£

31 December
2022
£

Cash on hand

154

226

Cash at bank

3,025,703

1,650,149

3,025,857

1,650,375

 

Halstock Cabinet Makers Ltd

Notes to the Financial Statements
for the Year Ended 31 December 2023

17

Creditors

Note

2023
 £

2022
 £

Due within one year

 

Loans and borrowings

19

49,952

112,951

Trade creditors

 

661,504

770,913

Social security and other taxes

 

180,734

112,238

Other creditors

 

94,928

12,070

Accrued expenses

 

79,186

79,991

Gross amount due to customers for contract work

 

4,090,472

670,809

 

5,156,776

1,758,972

Due after one year

 

Loans and borrowings

19

5,626

37,413

18

Provisions for liabilities

Deferred tax
£

Total
£

At 1 January 2023

100,608

100,608

Additional provisions

(100,608)

(100,608)

At 31 December 2023

-

-

Deferred tax

Deferred tax assets and liabilities:

2022

Asset
£

Liability
£

Accelerated tax depreciation

-

100,608

-

100,608

 

Halstock Cabinet Makers Ltd

Notes to the Financial Statements
for the Year Ended 31 December 2023

19

Loans and borrowings

Current loans and borrowings

31 December
2023
£

31 December
2022
£

Hire purchase contracts

49,952

112,951

Non-current loans and borrowings

31 December
2023
£

31 December
2022
£

Hire purchase contracts

5,626

37,413

Finance lease liabilities

Hire Purchase with a carrying amount of £55,578 (2022 - £150,364) has a nominal interest rate of 3.5 %- 5.5%.

Obligations under finance leases and hire purchase contracts are secured against the assets concerned, which are included within plant and machinery. At the balance sheet date the assets concerned had a combined net book value of £245,941 (December 2022 - £264,972).

20

Commitments

Other financial commitments

The total amount of other financial commitments not provided in the financial statements was £1,928,050 (2022 - £1,905,366).

21

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £260,596 (2022 - £233,019).

 

Halstock Cabinet Makers Ltd

Notes to the Financial Statements
for the Year Ended 31 December 2023

22

Analysis of changes in net debt

At 1 January 2023
£

Financing cash flows
£

At 31 December 2023
£

Cash and cash equivalents

Cash

1,650,375

1,375,482

3,025,857

Borrowings

Lease liabilities

(150,364)

94,786

(55,578)

 

1,500,011

1,470,268

2,970,279

23

Related party transactions

Summary of transactions with parent

The company has taken advantage of the exemption provided from disclosing transactions with other group companies on the grounds it is a wholly owned subsidiary.
 

24

Parent and ultimate parent undertaking

The company's immediate parent is Halstock Holdings Limited, incorporated in England.

 The most senior parent entity producing publicly available financial statements is Ateliers de France SAS. These financial statements are available upon request from Societe par actions simplifiee, 12, rue du Parc Royal, 75003 Paris.