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 |
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: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
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: |
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. |
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: |
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. |
for and on behalf of |
Chartered Accountants |
Statutory Auditor |
Regent's Court |
Princess Street |
Hull |
East Yorkshire |
HU2 8BA |
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 |
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 |
CURRENT ASSETS |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,644,555 | 493,922 |
The financial statements were approved by the Board of Directors and authorised for issue on |
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 |
Changes in equity |
Issue of share capital | - |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2023 |
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 |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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. |
Tangible fixed assets |
Freehold property | - |
Long leasehold | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
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 |
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 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
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 | - | - |
Other debtors | 3,849 | 200 |
Tax | 10,310 | 2,787 |
Prepayments and accrued income | 303,873 | 82,541 |
2,766,562 | 2,485,203 |
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 |
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 | - | - |
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 |
Directors' loan accounts | 540,723 | 68,678 | 540,723 | 28,678 |
Accruals and deferred income | 175,678 | 204,758 |
7,657,317 | 7,754,804 |
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 |
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 |
5,100,200 | 7,112,480 |
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 |
Amounts falling due between one and | two years: |
Bank loans - 1-2 years | 255,319 | 255,319 |
Amounts falling due between two and | five years: |
Bank loans - 2-5 years | 97,009 | 417,872 |
Other loans - 2-5 years | 946,681 | - |
1,043,690 | 417,872 |
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. |