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REGISTERED NUMBER: 03024981 (England and Wales)






















Hallmark Panels Limited

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2023






Hallmark Panels Limited (Registered number: 03024981)






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




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Profit and Loss account 9

Balance Sheet 10

Statement of Changes in Equity 11

Notes to the Financial Statements 12


Hallmark Panels Limited

Company Information
for the year ended 31 December 2023







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





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





REGISTERED NUMBER: 03024981 (England and Wales)





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

Hallmark Panels Limited (Registered number: 03024981)

Strategic Report
for the year ended 31 December 2023

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

REVIEW OF BUSINESS
The principal activity of the company continued to be that of the manufacture of laminated products, doors and door panels.

The full results for the year are set out on page 9. The directors have paid an interim dividend amounting to £2,000,000 (2022: £750,000) and do not recommend payment of a final dividend (2022: £Nil).

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
£    £   

Turnover 26,520,953 23,924,998
Profit before taxation 3,286,158 2,844,487
Equity shareholders' funds 6,044,116 5,533,855


PRINCIPAL RISKS AND UNCERTAINTIES
The company 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.

FINANCIAL INSTRUMENTS
The company'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 company's operations and to finance the company's working capital.

Due to the nature of the financial instruments used by the company there is little exposure to price risk or bad debt risk. The company'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.

In respect of asset finance agreements, the interest rate and monthly repayments are fixed. The company 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.


Hallmark Panels Limited (Registered number: 03024981)

Strategic Report
for the year ended 31 December 2023

FUTURE OUTLOOK
New products are constantly being added to the company'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 Panels Limited (Registered number: 03024981)

Report of the Directors
for the year ended 31 December 2023

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

DIVIDENDS
An interim dividend of 20000 per share was paid on 31 December 2023. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2023 will be £ 2,000,000 .

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
S Chapman
V Petraityte
P J Spencer
R Gray
M Hoe

DIRECTORS' RESPONSIBILITIES STATEMENT
The directors are responsible for preparing the 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 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 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 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.

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 company'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 company's auditors are aware of that information.

Hallmark Panels Limited (Registered number: 03024981)

Report of the Directors
for the year ended 31 December 2023


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 Panels Limited

Opinion
We have audited the financial statements of Hallmark Panels Limited (the 'company') for the year ended 31 December 2023 which comprise the Profit and Loss account, Balance Sheet, Statement of Changes in Equity 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 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 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 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 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 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 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 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 Panels Limited


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

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 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 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 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 Panels 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.

Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances 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.

The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation.

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 Panels Limited (Registered number: 03024981)

Profit and Loss account
for the year ended 31 December 2023

2023 2022
Notes £    £   

TURNOVER 3 26,520,953 23,924,998

Cost of sales 18,929,182 17,327,984
GROSS PROFIT 7,591,771 6,597,014

Administrative expenses 4,291,112 3,748,155
3,300,659 2,848,859

Other operating income 826 15,569
OPERATING PROFIT 5 3,301,485 2,864,428


Interest payable and similar expenses 6 15,327 19,941
PROFIT BEFORE TAXATION 3,286,158 2,844,487

Tax on profit 7 775,897 509,982
PROFIT FOR THE FINANCIAL YEAR 2,510,261 2,334,505

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

2,510,261

2,334,505

Hallmark Panels Limited (Registered number: 03024981)

Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 45,594 45,594
Tangible assets 10 2,636,175 2,688,954
2,681,769 2,734,548

CURRENT ASSETS
Stocks 11 2,265,792 2,851,346
Debtors 12 10,181,438 9,399,333
Cash at bank 2,001,209 1,568,946
14,448,439 13,819,625
CREDITORS
Amounts falling due within one year 13 10,489,674 10,357,282
NET CURRENT ASSETS 3,958,765 3,462,343
TOTAL ASSETS LESS CURRENT
LIABILITIES

6,640,534

6,196,891

CREDITORS
Amounts falling due after more than one
year

14

-

(60,520

)

PROVISIONS FOR LIABILITIES 16 (596,418 ) (602,516 )
NET ASSETS 6,044,116 5,533,855

CAPITAL AND RESERVES
Called up share capital 17 100 100
Retained earnings 18 6,044,016 5,533,755
SHAREHOLDERS' FUNDS 6,044,116 5,533,855

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 Panels Limited (Registered number: 03024981)

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 100 3,949,250 3,949,350

Changes in equity
Dividends - (750,000 ) (750,000 )
Total comprehensive income - 2,334,505 2,334,505
Balance at 31 December 2022 100 5,533,755 5,533,855

Changes in equity
Dividends - (2,000,000 ) (2,000,000 )
Total comprehensive income - 2,510,261 2,510,261
Balance at 31 December 2023 100 6,044,016 6,044,116

Hallmark Panels Limited (Registered number: 03024981)

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

1. STATUTORY INFORMATION

Hallmark Panels 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 Company 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.

Going Concern
The directors, having considered the budgets and forecasts for the period to December 2024, have a reasonable expectation that the company has adequate resources to continue in operational existence for a period of 12 months from the date of approval of these financial statements and therefore have prepared the financial statements on a going concern basis.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover
Turnover is recognised at fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts and volume rebates.

Revenue from the sale of goods is recognised when significant risks and rewards or ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

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 ten years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.
Plant and machinery - 5% - 15% on cost
Motor vehicles - 25% on cost

Hallmark Panels Limited (Registered number: 03024981)

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

2. ACCOUNTING POLICIES - continued

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

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

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss account, 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.

Leases
Leases are classified as financial leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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

Hallmark Panels Limited (Registered number: 03024981)

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

2. ACCOUNTING POLICIES - continued

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

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

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

Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

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

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

Trade Creditors are obligations to pay for goods or service that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or les. If not, they are presented as non-current liabilities. Trade creditors are recognised at transaction price.

Government grants
Government grants are recognised at the fair value of the asset recieved or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 26,520,953 23,924,998
26,520,953 23,924,998

Hallmark Panels Limited (Registered number: 03024981)

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

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 4,207,800 3,753,960
Social security costs 326,028 276,830
Other pension costs 63,373 51,442
4,597,201 4,082,232

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

Administration 4 4
Production 113 102
117 106

2023 2022
£    £   
Directors' remuneration 9,096 9,030
Directors' pension contributions to money purchase schemes 86 84

5. OPERATING PROFIT

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

2023 2022
£    £   
Hire of plant and machinery 59,139 42,892
Depreciation - owned assets 439,397 371,027
Profit on disposal of fixed assets - (7,969 )
Auditors' remuneration 7,050 6,500
Foreign exchange differences 24 (63 )

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Invoice finance interest 1,295 6,551
Other interest 4,164 -
Hire purchase 9,868 13,390
15,327 19,941

Hallmark Panels Limited (Registered number: 03024981)

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

7. 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 779,208 460,920
Interest on tax 2,787 -
Total current tax 781,995 460,920

Deferred tax (6,098 ) 49,062
Tax on profit 775,897 509,982

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

2023 2022
£    £   
Profit before tax 3,286,158 2,844,487
Profit multiplied by the standard rate of corporation tax in the UK of
25% (2022 - 19%)

821,540

540,453

Effects of:
Expenses not deductible for tax purposes 383 (23,259 )
Adjustments to tax charge in respect of previous periods 2,750 -

Research and development tax credit - (14,202 )
Group relief - (4,785 )
Change in rates (48,776 ) 11,775
Total tax charge 775,897 509,982

8. DIVIDENDS
2023 2022
£    £   
Ordinary shares of 1 each
Interim 2,000,000 750,000

Hallmark Panels Limited (Registered number: 03024981)

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

9. INTANGIBLE FIXED ASSETS
Developme
costs
£   
COST
At 1 January 2023
and 31 December 2023 45,594
NET BOOK VALUE
At 31 December 2023 45,594
At 31 December 2022 45,594

10. TANGIBLE FIXED ASSETS
Long Plant and Motor
leasehold machinery vehicles Totals
£    £    £    £   
COST
At 1 January 2023 140,397 3,485,233 970,439 4,596,069
Additions 23,567 231,476 131,575 386,618
At 31 December 2023 163,964 3,716,709 1,102,014 4,982,687
DEPRECIATION
At 1 January 2023 39,086 1,473,818 394,211 1,907,115
Charge for year 15,123 169,639 254,635 439,397
At 31 December 2023 54,209 1,643,457 648,846 2,346,512
NET BOOK VALUE
At 31 December 2023 109,755 2,073,252 453,168 2,636,175
At 31 December 2022 101,311 2,011,415 576,228 2,688,954

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

20232022
£   £   

Plant and Machinery602,534639,741
Motor Vehicles479,614405,058
1,082,1471,044,798

Depreciation charge for the year in respect of leased assets230,731194,076

Hallmark Panels Limited (Registered number: 03024981)

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

11. STOCKS
2023 2022
£    £   
Raw materials 1,877,939 2,404,207
Finished goods 128,426 140,420
Work-in-progress 259,427 306,719
2,265,792 2,851,346

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 2,389,987 2,321,234
Amounts owed by group undertakings 7,783,781 7,067,276
Other debtors 3,649 -
Tax - 2,787
Prepayments and accrued income 4,021 8,036
10,181,438 9,399,333

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Hire purchase contracts (see note 15) 56,642 46,212
Invoice finance 261,435 878,179
Trade creditors 2,311,342 2,572,562
Amounts owed to group undertakings 5,473,603 5,065,190
Tax 579,208 460,920
Social security and other taxes 82,965 66,993
VAT 889,273 452,678
Other creditors 733,448 707,152
Accruals and deferred income 101,758 107,396
10,489,674 10,357,282

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Hire purchase contracts (see note 15) - 60,520

15. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

2023 2022
£    £   
Net obligations repayable:
Within one year 56,642 46,212
Between one and five years - 60,520
56,642 106,732

Hallmark Panels Limited (Registered number: 03024981)

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

16. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 596,418 602,516

Deferred
tax
£   
Balance at 1 January 2023 602,516
Provided during year (6,098 )
Balance at 31 December 2023 596,418

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
100 Ordinary 1 100 100

18. RESERVES
Retained
earnings
£   

At 1 January 2023 5,533,755
Profit for the year 2,510,261
Dividends (2,000,000 )
At 31 December 2023 6,044,016

19. CONTINGENT LIABILITIES

The company has unlimited guarantees in respect of bank borrowings with the following group companies:

Hallmark Door Systems Group Limited
Hallmark Group Holdings Limited
Hallmark Group Products Limited
Laminated Supplies Limited
Fortrace Limited
Toughened Glass Solutions Limited
Valletta Surplus Limited

In the opinion of the directors the likelihood of the guarantees being called upon is remote. The potential liability under this agreement amounted to £490,479 (2022 £158,714).

20. CAPITAL COMMITMENTS
2023 2022
£    £   
Contracted but not provided for in the
financial statements - 170,000

Hallmark Panels Limited (Registered number: 03024981)

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

21. ULTIMATE CONTROLLING PARTY

The immediate parent undertaking is Hallmark Group Products Limited, a company registered in
England and Wales, and whose registered office is Valletta House, Valletta Street, Hedon Road, Hull,
East Yorkshire, HU9 5NP. Hallmark Door Systems Group Limited is the ultimate parent undertaking
and the smallest and largest group which consolidates the financial information of the company.