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REGISTERED NUMBER: 13202511 (England and Wales)






















Hallmark Door Systems Group Limited

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 December 2023






Hallmark Door Systems Group Limited (Registered number: 13202511)






Contents of the Consolidated Financial Statements
for the year ended 31 December 2023




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 5

Consolidated Income Statement 8

Consolidated Other Comprehensive Income 9

Consolidated Balance Sheet 10

Company Balance Sheet 11

Consolidated Statement of Changes in Equity 12

Company Statement of Changes in Equity 13

Consolidated Cash Flow Statement 14

Notes to the Consolidated Cash Flow Statement 15

Notes to the Consolidated Financial Statements 16


Hallmark Door Systems Group Limited

Company Information
for the year ended 31 December 2023







DIRECTORS: B Sonley
Ms V Petraityte
P J Spencer
M Hoe
S Chapman
R Gray





REGISTERED OFFICE: Valletta House
Valletta Street
Hedon Road
Hull
East Yorkshire
HU9 5NP





REGISTERED NUMBER: 13202511 (England and Wales)





AUDITORS: Smailes Goldie
Chartered Accountants
Statutory Auditor
Regent's Court
Princess Street
Hull
East Yorkshire
HU2 8BA

Hallmark Door Systems Group Limited (Registered number: 13202511)

Group Strategic Report
for the year ended 31 December 2023

The directors present their strategic report of the company and the group for the year ended 31 December 2023.

Business
The company was incorporated on 15 February 2021.

The company has five wholly owned trading subsidiaries being Hallmark Group Holdings Limited, Hallmark Group Products Limited, Hallmark Panels Limited, Laminated Supplies Limited and Valletta Surplus Limited.

Hallmark Door Systems Group Limited is a holding company for the five manufacturing companies in the group. Hallmark Panels Limited manufacture laminated products, doors and door panels. Laminated Supplies Limited manufacture laminated products and Valletta Surplus Limited sells surplus goods.

REVIEW OF BUSINESS
The full results for the year are set out on page 8. The directors have paid an interim dividend amounting to £716,809 (2022: £268,202) and do not recommend payment of a final dividend (2022: nil).

The group has had a successful period, achieving an operating profit of £3,206,111 (2022: £2,136,641). The group is continuing to monitor costs closely to ensure it can continue to trade competitively and successfully in the future. Sufficient working capital is in place to support the group's activities.


The group maintain a number of key performance indicators in respect of sales growth, gross margin and circulation numbers.

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

2023 2022 2022
£    £    £   
12 Month

Turnover 26,858,894 18,009,382 24,459,582
Profit before taxation 2,825,540 1,894,240 2,961,241
Equity shareholders' funds 4,918,319 3,673,489 3,673,489


PRINCIPAL RISKS AND UNCERTAINTIES
The group faces competition risk from other companies in the industry resulting in pressure to keep prices low whilst ensuring quality remains high. Another key risk is the performance of the UK and European economies.


Hallmark Door Systems Group Limited (Registered number: 13202511)

Group Strategic Report
for the year ended 31 December 2023

FINANCIAL INSTRUMENTS
The group's principal financial instruments comprise bank balances, invoice discounting, trade debtors, trade creditors and asset finance agreements. The main purpose of these instruments is to raise funds for the group's operations and to finance the group's operations.

Due to the nature of the financial instruments used by the group there is minimal exposure to price risk. The group's approach to managing other risks applicable to the financial instruments is shown below.

In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of invoice discounting facilities within the group.

In respect of bank loans, these comprise loans from financial institutions. The interest rates on the loans are variable and the monthly repayments are fixed. The group manages the liquidity risk by ensuring there are sufficient funds to meet the payments.

In respect of asset finance agreements, the interest rate and monthly repayments are fixed. The group manages the liquidity risk by ensuring there are sufficient funds to meet the payments.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. This is also managed by the use of invoice discounting, which ensures reduced exposure to bad debts and also offers a funding facility for which interest and charges are made.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts as they fall due.

FUTURE OUTLOOK
New products are constantly being added to the group's comprehensive range to meet the demand of its customers.

The board believes that the company's strategy together with its experienced management will be a solid foundation for future successful performance.

ON BEHALF OF THE BOARD:





B Sonley - Director


31 May 2024

Hallmark Door Systems Group Limited (Registered number: 13202511)

Report of the Directors
for the year ended 31 December 2023

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

DIVIDENDS
During the year interim dividends totalling £716,809 (2022 £268,202) were paid. The directors recommend that no final dividends be paid.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

B Sonley
Ms V Petraityte
P J Spencer
M Hoe
S Chapman
R Gray

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS
The auditors, Smailes Goldie, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:



B Sonley - Director


31 May 2024

Report of the Independent Auditors to the Members of
Hallmark Door Systems Group Limited

Opinion
We have audited the financial statements of Hallmark Door Systems Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2023 and of the group's profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Hallmark Door Systems Group Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

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

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

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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 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, tax legislation, data protection, anti-bribery, employment, environmental and health and safety legislation. An understanding of these laws and regulations and the extent of compliance was obtained through discussion with management and inspecting legal and regulatory correspondence.

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 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.

Report of the Independent Auditors to the Members of
Hallmark Door Systems Group Limited

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

- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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




Michael Stocks ACA (Senior Statutory Auditor)
for and on behalf of Smailes Goldie
Chartered Accountants
Statutory Auditor
Regent's Court
Princess Street
Hull
East Yorkshire
HU2 8BA

31 May 2024

Hallmark Door Systems Group Limited (Registered number: 13202511)

Consolidated Income Statement
for the year ended 31 December 2023

2023 2022
Notes £    £   

TURNOVER 26,858,894 18,009,382

Cost of sales 16,699,600 11,192,586
GROSS PROFIT 10,159,294 6,816,796

Administrative expenses 6,959,485 4,695,976
3,199,809 2,120,820

Other operating income 6,302 15,821
OPERATING PROFIT 4 3,206,111 2,136,641

Interest receivable and similar income 7,421 340
3,213,532 2,136,981

Interest payable and similar expenses 5 387,992 242,741
PROFIT BEFORE TAXATION 2,825,540 1,894,240

Tax on profit 6 863,901 489,300
PROFIT FOR THE FINANCIAL YEAR 1,961,639 1,404,940
Profit attributable to:
Owners of the parent 1,961,639 1,404,940

Hallmark Door Systems Group Limited (Registered number: 13202511)

Consolidated Other Comprehensive Income
for the year ended 31 December 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 1,961,639 1,404,940


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,961,639

1,404,940

Total comprehensive income attributable to:
Owners of the parent 1,961,639 1,404,940

Hallmark Door Systems Group Limited (Registered number: 13202511)

Consolidated Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 8,037,284 9,021,499
Tangible assets 10 3,003,337 3,089,277
Investments 11 - -
11,040,621 12,110,776

CURRENT ASSETS
Stocks 12 2,397,646 3,024,199
Debtors 13 2,766,562 2,485,203
Cash at bank and in hand 2,120,796 1,580,601
7,285,004 7,090,003
CREDITORS
Amounts falling due within one year 14 7,657,317 7,754,804
NET CURRENT LIABILITIES (372,313 ) (664,801 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

10,668,308

11,445,975

CREDITORS
Amounts falling due after more than one
year

15

(5,100,200

)

(7,112,480

)

PROVISIONS FOR LIABILITIES 18 (649,789 ) (660,006 )
NET ASSETS 4,918,319 3,673,489

CAPITAL AND RESERVES
Called up share capital 19 2,536,751 2,536,751
Retained earnings 20 2,381,568 1,136,738
SHAREHOLDERS' FUNDS 4,918,319 3,673,489

The financial statements were approved by the Board of Directors and authorised for issue on 31 May 2024 and were signed on its behalf by:





B Sonley - Director


Hallmark Door Systems Group Limited (Registered number: 13202511)

Company Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 - -
Tangible assets 10 - -
Investments 11 13,905,575 13,905,575
13,905,575 13,905,575

CURRENT ASSETS
Debtors 13 2,709,182 10,062
Cash at bank 1,793 2,628
2,710,975 12,690
CREDITORS
Amounts falling due within one year 14 9,074,006 5,576,104
NET CURRENT LIABILITIES (6,363,031 ) (5,563,414 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

7,542,544

8,342,161

CREDITORS
Amounts falling due after more than one
year

15

3,852,328

5,579,691
NET ASSETS 3,690,216 2,762,470

CAPITAL AND RESERVES
Called up share capital 19 2,536,750 2,536,750
Retained earnings 1,153,466 225,720
SHAREHOLDERS' FUNDS 3,690,216 2,762,470

Company's profit for the financial year 1,644,555 493,922

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 31 May 2024 and were signed on its behalf by:





S Chapman - Director


Hallmark Door Systems Group Limited (Registered number: 13202511)

Consolidated Statement of Changes in Equity
for the year ended 31 December 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 2 - 2

Changes in equity
Issue of share capital 2,536,749 - 2,536,749
Dividends - (268,202 ) (268,202 )
Total comprehensive income - 1,404,940 1,404,940
Balance at 31 December 2022 2,536,751 1,136,738 3,673,489

Changes in equity
Dividends - (716,809 ) (716,809 )
Total comprehensive income - 1,961,639 1,961,639
Balance at 31 December 2023 2,536,751 2,381,568 4,918,319

Hallmark Door Systems Group Limited (Registered number: 13202511)

Company Statement of Changes in Equity
for the year ended 31 December 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 1 - 1

Changes in equity
Issue of share capital 2,536,749 - 2,536,749
Dividends - (268,202 ) (268,202 )
Total comprehensive income - 493,922 493,922
Balance at 31 December 2022 2,536,750 225,720 2,762,470

Changes in equity
Dividends - (716,809 ) (716,809 )
Total comprehensive income - 1,644,555 1,644,555
Balance at 31 December 2023 2,536,750 1,153,466 3,690,216

Hallmark Door Systems Group Limited (Registered number: 13202511)

Consolidated Cash Flow Statement
for the year ended 31 December 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 2,778,691 2,843,599
Interest paid (348,803 ) (204,035 )
Interest element of hire purchase
payments paid

(39,189

)

(38,706

)
Tax paid (904,593 ) (2,787 )
Net cash from operating activities 1,486,106 2,598,071

Cash flows from investing activities
Purchase of tangible fixed assets (439,389 ) (500,206 )
Sale of tangible fixed assets 5,000 17,600
Interest received (25,536 ) 340
Purchase of subsidiaries - (4,545,575 )
Cash acquired on acquisition - 3,519,060
Net cash from investing activities (459,925 ) (1,508,781 )

Cash flows from financing activities
Loan repayments in year (241,222 ) (206,463 )
New loans in year - 894,048
Amount introduced by directors 478,712 68,678
Amount withdrawn by directors (6,667 ) -
Share issue - 3,249
Equity dividends paid (716,809 ) (268,202 )
Net cash from financing activities (485,986 ) 491,310

Increase in cash and cash equivalents 540,195 1,580,600
Cash and cash equivalents at
beginning of year

2

1,580,601

1

Cash and cash equivalents at end of
year

2

2,120,796

1,580,601

Hallmark Door Systems Group Limited (Registered number: 13202511)

Notes to the Consolidated Cash Flow Statement
for the year ended 31 December 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
Profit before taxation 2,825,540 1,894,240
Depreciation charges 524,215 353,857
Profit on disposal of fixed assets (3,885 ) (7,969 )
Amortisation of goodwill 984,215 710,992
Government grants (5,702 ) -
Finance costs 387,992 242,741
Finance income (7,421 ) (340 )
4,704,954 3,193,521
Decrease/(increase) in stocks 626,553 (1,516,887 )
(Increase)/decrease in trade and other debtors (273,836 ) 714,880
(Decrease)/increase in trade and other creditors (2,278,980 ) 452,085
Cash generated from operations 2,778,691 2,843,599

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 2,120,796 1,580,601
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 1,580,601 1


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank and in hand 1,580,601 540,195 2,120,796
1,580,601 540,195 2,120,796
Debt
Finance leases (894,048 ) 241,222 (652,826 )
Debts falling due within 1 year (303,051 ) 47,732 (255,319 )
Debts falling due after 1 year (673,191 ) (625,818 ) (1,299,009 )
(1,870,290 ) (336,864 ) (2,207,154 )
Total (289,689 ) 203,331 (86,358 )

Hallmark Door Systems Group Limited (Registered number: 13202511)

Notes to the Consolidated Financial Statements
for the year ended 31 December 2023

1. STATUTORY INFORMATION

Hallmark Door Systems Group Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
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. The financial statements have been prepared under the historical cost convention.

Basis of consolidation
The group financial statements consolidate the financial statements of Hallmark Door Systems Group Limited and all its subsidiaries for the year ended 31 December 2023. The subsidiary undertakings have been accounted for under the acquisition method of accounting. No company Statement of Comprehensive Income is presented for Hallmark Group Holdings Limited as permitted by section 408 of the Companies Act 2006.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business is being amortised over its useful life of 10 years.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Development costs are being amortised evenly over their estimated useful life of nil years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 2% on cost
Long leasehold - 10% on cost
Plant and machinery - 20% on cost, 6.67% on cost, 5% - 15% on cost and 10% - 20% straight line
Fixtures and fittings - between 3 and 10 years
Motor vehicles - 25% on cost and between 3 and 10 years

Stocks
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.


Hallmark Door Systems Group Limited (Registered number: 13202511)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2023

2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

3. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 5,253,590 4,745,963
Social security costs 391,828 339,339
Other pension costs 241,237 227,507
5,886,655 5,312,809

The average number of employees during the year was as follows:
2023 2022

Office & management 43 43
Production 119 109
162 152

The average number of employees by undertakings that were proportionately consolidated during the year was 162 (2022 - 152 ) .

Hallmark Door Systems Group Limited (Registered number: 13202511)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2023

3. EMPLOYEES AND DIRECTORS - continued

2023 2022
£    £   
Directors' remuneration 199,150 63,393
Directors' pension contributions to money purchase schemes 62,666 251

4. OPERATING PROFIT

The operating loss is stated after charging/(crediting):


31.12.23 31.12.22
£ £
Hire of plant and machinery 60,816 42,892
Depreciation - owned assets 524,214 353,857
Profit on disposal of fixed assets (3,885) (7,969)
Goodwill amortisation 984,215 710,992
Auditors' remuneration 11,587 12,020
Foreign exchange differences 24 (63)
Government grants (5,702) (15,781)

5. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank loan interest 163,278 24,580
Invoice Finance interest 8,001 6,613
Interest payable 177,524 172,842
Hire purchase 39,189 38,706
387,992 242,741

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 871,331 447,594
Interest on tax 2,787 -
Total current tax 874,118 447,594

Deferred tax (10,217 ) 41,706
Tax on profit 863,901 489,300

Hallmark Door Systems Group Limited (Registered number: 13202511)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2023

6. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 2,825,540 1,894,240
Profit multiplied by the standard rate of corporation tax in the UK of
23.520 % (2022 - 19 %)

664,567

359,906

Effects of:
Expenses not deductible for tax purposes 88,733 39,767
Change in tax rates - 39,604
Research and development tax credit - (74,747 )
Goodwill Amortisation 231,487 134,000
Group relief (120,886 ) (9,230 )
Total tax charge 863,901 489,300

7. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


8. DIVIDENDS
2023 2022
£    £   
A Ordinary shares of 1 each
Interim 716,809 268,202

9. INTANGIBLE FIXED ASSETS

Group
Development
Goodwill costs Totals
£    £    £   
COST
At 1 January 2023
and 31 December 2023 9,686,897 45,594 9,732,491
AMORTISATION
At 1 January 2023 710,992 - 710,992
Amortisation for year 984,215 - 984,215
At 31 December 2023 1,695,207 - 1,695,207
NET BOOK VALUE
At 31 December 2023 7,991,690 45,594 8,037,284
At 31 December 2022 8,975,905 45,594 9,021,499

Hallmark Door Systems Group Limited (Registered number: 13202511)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2023

10. TANGIBLE FIXED ASSETS

Group
Freehold Short Long
property leasehold leasehold
£    £    £   
COST
At 1 January 2023 23,880 140,397 4,285
Additions - 23,567 -
Disposals - - -
At 31 December 2023 23,880 163,964 4,285
DEPRECIATION
At 1 January 2023 292 39,086 2,028
Charge for year 477 15,123 468
Eliminated on disposal - - -
At 31 December 2023 769 54,209 2,496
NET BOOK VALUE
At 31 December 2023 23,111 109,755 1,789
At 31 December 2022 23,588 101,311 2,257

Fixtures
Plant and and Motor
machinery fittings vehicles Totals
£    £    £    £   
COST
At 1 January 2023 3,933,108 801,207 1,133,372 6,036,249
Additions 245,600 38,647 131,575 439,389
Disposals - (3,500 ) - (3,500 )
At 31 December 2023 4,178,708 836,354 1,264,947 6,472,138
DEPRECIATION
At 1 January 2023 1,853,891 607,661 444,014 2,946,972
Charge for year 181,779 55,424 270,943 524,214
Eliminated on disposal - (2,385 ) - (2,385 )
At 31 December 2023 2,035,670 660,700 714,957 3,468,801
NET BOOK VALUE
At 31 December 2023 2,143,038 175,654 549,990 3,003,337
At 31 December 2022 2,079,217 193,546 689,358 3,089,277

Hallmark Door Systems Group Limited (Registered number: 13202511)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2023

11. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakin
£   
COST
At 1 January 2023
and 31 December 2023 13,905,575
NET BOOK VALUE
At 31 December 2023 13,905,575
At 31 December 2022 13,905,575


Details of the investments in which the group holds 20% or more of the nominal value of any class of share capital at 31 December 2023 are as follows:-




Name of company

Country of
registration
and operation



Nature of business
Proportion of
voting rights
and shares
held

Fortrace Limited England Dormant 100%
Hallmark Doors Limited England Dormant 100%
Hallmark Group Products Limited England Holding company 100%
Hallmark Panels Limited England Manufacturing 100%
Laminated Supplies Limited England Manufacturing 100%
Hallmark Group Holdings Limited England Holding company 100%
Toughened Glass Solutions Limited England Dormant 100%
Valletta Surplus Limited England Sale of surplus goods 100%

All of the above companies comprise subsidiary undertakings, which are fully consolidated within the group financial statements.

12. STOCKS

Group
2023 2022
£    £   
Stocks 2,005,816 2,568,438
Finished goods 128,426 140,420
Work-in-progress 263,404 315,341
2,397,646 3,024,199

Hallmark Door Systems Group Limited (Registered number: 13202511)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2023

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Trade debtors 2,448,530 2,399,675 - -
Amounts owed by group undertakings - - 2,702,245 -
Other debtors 3,849 200 - -
Tax 10,310 2,787 - -
Prepayments and accrued income 303,873 82,541 6,937 10,062
2,766,562 2,485,203 2,709,182 10,062

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Bank loans and overdrafts (see note 16) 255,319 303,051 255,319 255,319
Hire purchase contracts (see note 17) 351,635 385,974 - -
Invoice finance 261,435 878,179 - -
Trade creditors 2,498,275 2,870,739 - -
Amounts owed to group undertakings - - 7,017,965 4,070,586
Tax 631,642 654,594 - -
Social security and other taxes 109,574 87,475 - -
VAT 821,985 382,467 - -
Other creditors 2,011,051 1,918,889 1,259,999 1,200,000
Directors' loan accounts 540,723 68,678 540,723 28,678
Accruals and deferred income 175,678 204,758 - 21,521
7,657,317 7,754,804 9,074,006 5,576,104

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Bank loans (see note 16) 352,328 673,191 352,328 553,191
Other loans (see note 16) 946,681 - - -
Hire purchase contracts (see note 17) 301,191 508,074 - -
Irredeemable preference shares 2,300,000 2,300,000 2,300,000 2,300,000
Other creditors 1,200,000 3,631,215 1,200,000 2,726,500
5,100,200 7,112,480 3,852,328 5,579,691

Hallmark Door Systems Group Limited (Registered number: 13202511)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2023

16. LOANS

An analysis of the maturity of loans is given below:

Group Company
2023 2022 2023 2022
£    £    £    £   
Amounts falling due within one year or on demand:
Bank loans 255,319 303,051 255,319 255,319
Amounts falling due between one and two years:
Bank loans - 1-2 years 255,319 255,319 255,319 255,319
Amounts falling due between two and five years:
Bank loans - 2-5 years 97,009 417,872 97,009 297,872
Other loans - 2-5 years 946,681 - - -
1,043,690 417,872 97,009 297,872

17. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 351,635 385,974
Between one and five years 301,191 508,074
652,826 894,048

Group
Non-cancellable operating leases
2023 2022
£    £   
Within one year 154,000 154,000
Between one and five years 679,500 833,500
833,500 987,500

18. PROVISIONS FOR LIABILITIES

Group
2023 2022
£    £   
Deferred tax 649,789 660,006

Hallmark Door Systems Group Limited (Registered number: 13202511)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 December 2023

18. PROVISIONS FOR LIABILITIES - continued

Group
Deferred
tax
£   
Balance at 1 January 2023 660,006
Provided during year (10,217 )
Balance at 31 December 2023 649,789

19. CALLED UP SHARE CAPITAL

Alloted, issued and fully paid:


Number

Class
Nominal
Value

2023

2022

3,000 Ordinary A Shares £1 3,000 3,000
3,000 Ordinary B Shares £1 3,000 3,000
750 Ordinary C Shares £1 750 750
250 Ordinary D Shares £1 250 250
3,000 Ordinary E Shares £1 3,000 3,000
Total Ordinary share capital 10,000 10,000
4,140,000 Irredeemable A Preference Shares £1 4,140,000 4,140,000
686,750 Irredeemable B Preference Shares £1 686,750 686,750
Total Irredeemable preference share capital 4,826,750 4,826,750


Of the total irredeemable preference share capital of £4,826,750, £2,300,000 has been included as a liability and represents the present value of future income from the preference shares. £2,526,750 has been included within equity and represents the equity element of the share capital.

20. RESERVES

Group
Retained
earnings
£   

At 1 January 2023 1,136,738
Profit for the year 1,961,639
Dividends (716,809 )
At 31 December 2023 2,381,568


21. ULTIMATE CONTROLLING PARTY

There is no one ultimate controlling party of the group.