Caseware UK (AP4) 2023.0.135 2023.0.135 130false2023-01-01falseNo description of principal activity136falsefalse 05595234 2023-01-01 2023-12-31 05595234 2022-01-01 2022-12-31 05595234 2023-12-31 05595234 2022-12-31 05595234 2022-01-01 05595234 1 2023-01-01 2023-12-31 05595234 1 2022-01-01 2022-12-31 05595234 5 2023-01-01 2023-12-31 05595234 5 2022-01-01 2022-12-31 05595234 1 2023-01-01 2023-12-31 05595234 e:CompanySecretary1 2023-01-01 2023-12-31 05595234 e:Director1 2023-01-01 2023-12-31 05595234 e:Director2 2023-01-01 2023-12-31 05595234 e:Director2 2023-12-31 05595234 e:Director3 2023-01-01 2023-12-31 05595234 e:Director3 2023-12-31 05595234 e:Director4 2023-01-01 2023-12-31 05595234 e:Director4 2023-12-31 05595234 e:Director5 2023-01-01 2023-12-31 05595234 e:Director5 2023-12-31 05595234 e:Director6 2023-01-01 2023-12-31 05595234 e:Director6 2023-12-31 05595234 e:Director7 2023-01-01 2023-12-31 05595234 e:Director7 2023-12-31 05595234 e:Director8 2023-01-01 2023-12-31 05595234 e:Director8 2023-12-31 05595234 e:Director9 2023-01-01 2023-12-31 05595234 e:Director9 2023-12-31 05595234 e:RegisteredOffice 2023-01-01 2023-12-31 05595234 d:FurnitureFittings 2023-01-01 2023-12-31 05595234 d:FurnitureFittings 2023-12-31 05595234 d:FurnitureFittings 2022-12-31 05595234 d:FurnitureFittings d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 05595234 d:ComputerEquipment 2023-01-01 2023-12-31 05595234 d:ComputerEquipment 2023-12-31 05595234 d:ComputerEquipment 2022-12-31 05595234 d:ComputerEquipment d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 05595234 d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 05595234 d:CurrentFinancialInstruments 2023-12-31 05595234 d:CurrentFinancialInstruments 2022-12-31 05595234 d:Non-currentFinancialInstruments 2023-12-31 05595234 d:Non-currentFinancialInstruments 2022-12-31 05595234 d:CurrentFinancialInstruments d:WithinOneYear 2023-12-31 05595234 d:CurrentFinancialInstruments d:WithinOneYear 2022-12-31 05595234 d:Non-currentFinancialInstruments d:AfterOneYear 2023-12-31 05595234 d:Non-currentFinancialInstruments d:AfterOneYear 2022-12-31 05595234 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2023-12-31 05595234 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2022-12-31 05595234 d:Non-currentFinancialInstruments d:BetweenTwoFiveYears 2023-12-31 05595234 d:Non-currentFinancialInstruments d:BetweenTwoFiveYears 2022-12-31 05595234 d:UKTax 2023-01-01 2023-12-31 05595234 d:UKTax 2022-01-01 2022-12-31 05595234 d:ShareCapital 2023-12-31 05595234 d:ShareCapital 2022-12-31 05595234 d:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 05595234 d:RetainedEarningsAccumulatedLosses 2023-12-31 05595234 d:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 05595234 d:RetainedEarningsAccumulatedLosses 2022-12-31 05595234 d:RetainedEarningsAccumulatedLosses 2022-01-01 05595234 d:AcceleratedTaxDepreciationDeferredTax 2023-12-31 05595234 d:AcceleratedTaxDepreciationDeferredTax 2022-12-31 05595234 d:TaxLossesCarry-forwardsDeferredTax 2023-12-31 05595234 d:TaxLossesCarry-forwardsDeferredTax 2022-12-31 05595234 e:OrdinaryShareClass1 2023-01-01 2023-12-31 05595234 e:OrdinaryShareClass1 2023-12-31 05595234 e:OrdinaryShareClass1 2022-12-31 05595234 e:OrdinaryShareClass2 2023-01-01 2023-12-31 05595234 e:OrdinaryShareClass2 2023-12-31 05595234 e:FRS102 2023-01-01 2023-12-31 05595234 e:Audited 2023-01-01 2023-12-31 05595234 e:FullAccounts 2023-01-01 2023-12-31 05595234 e:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 05595234 d:WithinOneYear 2023-12-31 05595234 d:WithinOneYear 2022-12-31 05595234 d:BetweenOneFiveYears 2023-12-31 05595234 d:BetweenOneFiveYears 2022-12-31 05595234 d:MoreThanFiveYears 2023-12-31 05595234 d:MoreThanFiveYears 2022-12-31 05595234 2 2023-01-01 2023-12-31 05595234 f:PoundSterling 2023-01-01 2023-12-31 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 05595234









H.F.L. Building Solutions Limited









Annual Report and Financial Statements

For the year ended 31 December 2023

 
H.F.L. Building Solutions Limited
 
 
Company Information


Directors
Mr D P Saxton 
Ms J Ellis-Saxton (appointed 19 February 2024)
Mr M S Roberts (appointed 19 February 2024)
Ms E Saxton (appointed 19 February 2024)
Mr J Saxton (appointed 19 February 2024)
Mr L Saxton (appointed 19 February 2024)




Company secretary
Mr M S Roberts



Registered number
05595234



Registered office
Freeman House
Orbital 24, Oldham Street

Denton

Manchester

M34 3SU




Independent auditors
Hurst Accountants Limited
Chartered Accountants and Statutory Auditors

3 Stockport Exchange

Railway Road

Stockport

Cheshire

SK1 3GG





 
H.F.L. Building Solutions Limited
 

Contents



Page
Strategic report
 
1 - 2
Directors' report
 
3 - 4
Independent auditors' report
 
5 - 8
Statement of income and retained earnings
 
9
Balance sheet
 
10
Statement of cash flows
 
11
Analysis of net debt
 
12
Notes to the financial statements
 
13 - 26

 
H.F.L. Building Solutions Limited
 
 
Strategic Report
For the year ended 31 December 2023

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

Principal Activities
 
HFL Building Solutions Limited is one of the UK's foremost building services companies. We have an enviable reputation for the reliable delivery of cost and energy efficient building management, operational and technical solutions for businesses of all shapes and sizes - from retail parks to leisure complexes, educational  establishments and commercial properties.
We offer a nationwide service of mobile maintenance, integrated facilities and building environmental services from two main hubs located in Central and Northern England.

Review of Business
 
The general economic environment in 2023 was good which resulted in growth in turnover. 2023 was a year for strategic investment in the Company, in both infrastructure and systems. This has helped create a stronger platform to support our continued growth.
The general economic environment continued to be highly competitive in 2023. The business delivered a strong performance in the year, with our reactive and project works in line with forecasts. New contract wins exceeded the lost/terminated contracts, and this trend continues in to 2024.
The Directors remain optimistic of the Company's prospects in 2024. The Company is continuing to work with our business partners to seek efficiency in all areas, and support and train our employees to provide the level of service that will raise our profile within the industry and help us retain and grow client portfolios.

Principal Risks and Uncertainties
 
The Company is exposed to lead times of manufacturing of parts so the global pressure on the supply chain does have an impact, as does the inflationary pressures of the global economy. The energy markets will increase our overheads and we will take appropriate measures to secure the best deals for the Company.
Competitive pressure will always exist as client portfolios come up for re-tender. We will continue to develop working relationships with consultants and the correct director decision makers of existing and prospective clients. By focusing on the service element of our offering, we can illustrate value for money and achieve a high retention rate on our contracts and assist existing clients in providing opportunities for growth.
The greatest challenge is coming from the pressure on wages, as an apparent shortage of skilled engineers had forced up the market rate significantly in 2022, but this has now stabilised. The Company has invested both in apprenticeships for the future and in training of existing staff to create a strong enterprise culture for retaining its skilled staff.
Our continued investment in people, technology and training leaves the business well placed to differentiate itself within the competitive environment of building maintenance.
Health and Safety continues to be a key focus of risk management for the Company.
The Company will continue to invest internally in our systems to ensure our framework of policies and procedures achieve the objective of minimising avoidable risk in the business.
The Company is continually developing and upgrading our IT infrastructure, software and cyber threat and assessment capabilities. The increased risk of cyber-attack during the pandemic could impact the business operations and lead to loss of confidential information, damaging the Company's reputation. We will continue to enhance our data protection and security procedures to mitigate these risks.

Page 1

 
H.F.L. Building Solutions Limited
 

Strategic Report (continued)
For the year ended 31 December 2023

Financial Performance
 
Sales in the year showed an increase compared to 2022, at £15.8m (2022: £15.1m) and are continuing to grow in line with our strategies.
Gross margin was 22.0% (
2022: 24.9%) and is line with expectations.
Operating profit has increased to £242k (
2022: £122k), in line with expectations. The directors are confident that this will be maintained moving forward.
The Company paid dividends in the year of £176k (
2022: £214k).
The balance sheet remains strong with net assets of £1.85m (
2022: £1.83m).
Given the economic hardships suffered by many suppliers within our sector during the pandemic the Directors believe that it is increasingly important that our clients, suppliers, and employees are able to rely on the continued financial strength of HFL Building Solutions.


This report was approved by the board and signed on its behalf.



Mr D P Saxton
Director

Date: 30 July 2024
Page 2

 
H.F.L. Building Solutions Limited
 
 
 
Directors' Report
For the year ended 31 December 2023

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

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, the directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £198,074 (2022 -£138,868).

Dividends of £176,252 (2022: £214,000) were paid during the year. The directors do not recommend a final dividend.

Directors

The directors who served during the year were:

Mr D P Saxton 
Mr W G Baxter (resigned 16 February 2024)
Mr P R Gandy (resigned 16 February 2024)
Mr J N Hirst (resigned 16 February 2024)

Future developments

An indication of likely future developments in the Company's business can be found throughout the Strategic Report.

Page 3

 
H.F.L. Building Solutions Limited
 
 
 
Directors' Report (continued)
For the year ended 31 December 2023

Disclosure of information to auditors

Each of the persons who are directors at the time when this directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

On 16 February 2024, control of the Company was transferred to Saxton Group Holdings Limited, a company registered in England and Wales, registered number 15372940.

Auditors

Hurst Accountants Limited were appointed as auditors during the period. 
They will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





Mr D P Saxton
Director

Date: 30 July 2024
Page 4

 
H.F.L. Building Solutions Limited
 
 
 
Independent Auditors' Report to the Members of H.F.L. Building Solutions Limited
 

Opinion


We have audited the financial statements of H.F.L. Building Solutions Limited (the 'Company') for the year ended 31 December 2023, which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows and the related notes, including a summary of significant accounting policiesThe 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 United Kingdom, including the Financial Reporting Council'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 other information comprises the information included in the Annual Report other than the financial statements and our auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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. 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 course of 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.


Page 5

 
H.F.L. Building Solutions Limited
 
 
 
Independent Auditors' Report to the Members of H.F.L. Building Solutions Limited (continued)


Opinion 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.


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 directors' report.


We have nothing to report in respect of the following matters in relation to which 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 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


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


Page 6

 
H.F.L. Building Solutions Limited
 
 
 
Independent Auditors' Report to the Members of H.F.L. Building Solutions Limited (continued)


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


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

Identifying and assessing potential risks related to irregularities
 
In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
 
The nature of the industry and sector in which the company operates; the control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets.
The outcome of enquiries of management, including whether management was aware of any instances of non-compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged fraud. 
Supporting documentation relating to the Company's policies and procedures for:
   - Identifying, evaluating, and complying with laws and regulations
    - Detecting and responding to the risks of fraud
The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
The legal and regulatory framework in which the Company operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or which had a fundamental effect on the operations of the Company, including General Data Protection requirements, and Anti-bribery and Corruption.

Audit response to risks identified
 
Our procedures to respond to the risks identified included the following:
 
Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements.
Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud.
Evaluation of management’s controls designed to prevent and detect irregularities.
Enquiring of management about any actual and potential litigation and claims.
Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud.
Page 7

 
H.F.L. Building Solutions Limited
 
 
 
Independent Auditors' Report to the Members of H.F.L. Building Solutions Limited (continued)



We have also considered the risk of fraud through management override of controls by:
 
Testing the appropriateness of journal entries and other adjustments. We have used data analytics software to identify accounting transactions which may pose a heightened risk of material misstatement, whether due to fraud or error.
Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and
Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
 
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them.  Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.


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


Use of our report
 

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





Anthony Woodings (Senior Statutory Auditor)
for and on behalf of
Hurst Accountants Limited
Chartered Accountants and Statutory Auditors
3 Stockport Exchange
Railway Road
Stockport
Cheshire
SK1 3GG

30 July 2024
Page 8

 
H.F.L. Building Solutions Limited
 
 
Statement of Income and Retained Earnings
For the year ended 31 December 2023

2023
2022
Note
£
£

  

Turnover
 4 
15,776,005
15,051,655

Cost of sales
  
(12,303,068)
(11,307,551)

Gross profit
  
3,472,937
3,744,104

Administrative expenses
  
(3,231,214)
(3,642,431)

Other operating income
 5 
-
19,959

Operating profit
 6 
241,723
121,632

Interest receivable and similar income
 10 
21,095
3,498

Interest payable and similar expenses
 11 
(3,448)
(5,694)

Profit before tax
  
259,370
119,436

Tax on profit
 12 
(61,296)
19,432

Profit after tax
  
198,074
138,868

  

  

Retained earnings at the beginning of the year
  
1,826,731
1,901,863

  
1,826,731
1,901,863

Profit for the year
  
198,074
138,868

Dividends declared and paid
 13 
(176,252)
(214,000)

Retained earnings at the end of the year
  
1,848,553
1,826,731

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of income and retained earnings.

The notes on pages 13 to 26 form part of these financial statements.
Page 9

 
H.F.L. Building Solutions Limited
Registered number: 05595234

Balance Sheet
As at 31 December 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 14 
21,901
40,321

Current assets
  

Stocks
 15 
-
2,857

Debtors
 16 
3,909,306
3,392,895

Cash at bank and in hand
 17 
1,179,983
972,799

  
5,089,289
4,368,551

Creditors: amounts falling due within one year
 18 
(3,245,227)
(2,545,372)

Net current assets
  
 
 
1,844,062
 
 
1,823,179

Total assets less current liabilities
  
1,865,963
1,863,500

Creditors: amounts falling due after more than one year
 19 
(17,310)
(27,640)

Provisions for liabilities
  

Deferred tax
 21 
-
(9,029)

Net assets
  
1,848,653
1,826,831


Capital and reserves
  

Called up share capital 
 22 
100
100

Profit and loss account
 23 
1,848,553
1,826,731

  
1,848,653
1,826,831


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




Mr D P Saxton
Director

Date: 30 July 2024

The notes on pages 13 to 26 form part of these financial statements.
Page 10

 
H.F.L. Building Solutions Limited
 

Statement of Cash Flows
For the year ended 31 December 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
198,074
138,868

Adjustments for:

Depreciation of tangible assets
23,335
40,043

Interest paid
3,448
5,694

Interest received
(21,095)
(3,498)

Taxation charge/(credit)
61,296
(19,432)

Decrease/(increase) in stocks
2,857
(2,857)

Increase in debtors
(505,517)
(1,018,083)

Increase in amounts owed by related parties
(3,370)
-

Increase in creditors
635,267
211,155

Corporation tax paid
(6,019)
(149,168)

Net cash generated from operating activities

388,276
(797,278)


Cash flows from investing activities

Purchase of tangible fixed assets
(4,915)
(25,610)

Interest received
21,095
3,498

HP interest paid
-
(1,520)

Net cash from investing activities

16,180
(23,632)

Cash flows from financing activities

Repayment of loans
(17,572)
(19,654)

Repayment of finance leases
-
(16,604)

Dividends paid
(176,252)
(214,000)

Interest paid
(3,448)
(4,174)

Net cash used in financing activities
(197,272)
(254,432)

Net increase/(decrease) in cash and cash equivalents
207,184
(1,075,342)

Cash and cash equivalents at beginning of year
972,799
2,048,141

Cash and cash equivalents at the end of year
1,179,983
972,799


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,179,983
972,799


The notes on pages 13 to 26 form part of these financial statements.

Page 11

 
H.F.L. Building Solutions Limited
 

Analysis of Net Debt
For the year ended 31 December 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

972,799

207,184

1,179,983

Debt due after 1 year

(27,640)

10,330

(17,310)

Debt due within 1 year

(17,321)

7,242

(10,079)


927,838
224,756
1,152,594

The notes on pages 13 to 26 form part of these financial statements.
Page 12

 
H.F.L. Building Solutions Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2023

1.


General information

H.F.L. Building Solutions Limited is a private company limited by members capital incorporated in England and Wales, registered number 05595234. The address of the registered office and principal place of business is Freeman House, Orbital 24, Oldham Street, Manchester, M34 3SU.
The nature of the Company's operation and principal activity is that of building services.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.3

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.4

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Page 13

 
H.F.L. Building Solutions Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2023

2.Accounting policies (continued)

 
2.5

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the statement of income and retained earnings in the same period as the related expenditure.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

Pensions

Defined contribution pension plan

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

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

 
2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Page 14

 
H.F.L. Building Solutions Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2023

2.Accounting policies (continued)


2.9
Current and deferred taxation (continued)

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Fixtures and fittings
-
10-25%
Computer equipment
-
33%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.11

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.12

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 15

 
H.F.L. Building Solutions Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2023

2.Accounting policies (continued)

 
2.13

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.14

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.15

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.16

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
 
Page 16

 
H.F.L. Building Solutions Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2023

2.Accounting policies (continued)


2.16
Financial instruments (continued)


If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

 
2.17

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 17

 
H.F.L. Building Solutions Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In applying the company's accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors' judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.


4.


Turnover

The whole of the turnover is attributable to the Company's principal activity.

All turnover arose within the United Kingdom.


5.


Other operating income

2023
2022
£
£

Government grants receivable
-
19,959



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Operating lease rentals - land & buildings
73,400
77,842

Operating lease rentals - motor vehicles
320,911
338,757


7.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
15,000
17,500

Taxation compliance services
1,500
-

All other services
2,200
-
Page 18

 
H.F.L. Building Solutions Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2023

8.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
4,925,682
4,725,581

Social security costs
550,307
545,367

Cost of defined contribution scheme
283,357
297,201

5,759,346
5,568,149


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Administration
46
55



Direct labour
84
81

130
136


9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
42,595
51,641

Company contributions to defined contribution pension schemes
35,136
59,190

77,731
110,831


During the year retirement benefits were accruing to 1 director (2022 -1) in respect of defined contribution pension schemes.


10.


Interest receivable

2023
2022
£
£


Other interest receivable
21,095
3,498

Page 19

 
H.F.L. Building Solutions Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2023

11.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
3,448
4,174

Finance leases and hire purchase contracts
-
1,520

3,448
5,694


12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
77,849
28,357

Adjustments in respect of previous periods
-
(47,296)


Total current tax
77,849
(18,939)

Deferred tax


Origination and reversal of timing differences
(16,553)
(493)


Tax on profit
61,296
(19,432)
Page 20

 
H.F.L. Building Solutions Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2023
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 -lower than) the standard rate of corporation tax in the UK of 23.52% (2022 -19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
259,370
119,436


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 -19%)
61,005
22,693

Effects of:


Expenses not deductible for tax purposes
7,432
4,464

Depreciation in excess of capital allowances
-
707

Remeasurement of deferred tax 
for changes in tax rates
(591)
-

Adjustments to tax charge in respect of previous periods
-
(47,296)

Adjustments to deferred tax charge in respect of previous periods
(6,550)
-

Total tax charge for the year
61,296
(19,432)

From 1 April 2023 the main rate of corporation tax increased to 25%. The 23.52% rate used above reflects 6
months of the new rate and 6 month of the previous rate of 19%.


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


13.


Dividends

2023
2022
£
£


Dividends paid on equity capital
176,252
214,000

Page 21

 
H.F.L. Building Solutions Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2023

14.


Tangible fixed assets





Fixtures and fittings
Computer equipment
Total

£
£
£



Cost or valuation


At 1 January 2023
47,287
335,005
382,292


Additions
994
3,921
4,915


Disposals
(19,840)
(270,424)
(290,264)



At 31 December 2023

28,441
68,502
96,943



Depreciation


At 1 January 2023
29,320
312,651
341,971


Charge for the year on owned assets
2,931
20,404
23,335


Disposals
(19,840)
(270,424)
(290,264)



At 31 December 2023

12,411
62,631
75,042



Net book value



At 31 December 2023
16,030
5,871
21,901



At 31 December 2022
17,967
22,354
40,321


15.


Stocks

2023
2022
£
£

Raw materials and consumables
-
2,857


Page 22

 
H.F.L. Building Solutions Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2023

16.


Debtors


2023
2022
£
£



Trade debtors
2,694,462
2,661,033

Amounts owed by related parties
3,370
-

Other debtors
5,806
54,897

Prepayments and accrued income
186,902
67,428

Amounts recoverable on long-term contracts
1,011,242
609,537

Deferred taxation
7,524
-

3,909,306
3,392,895



17.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
1,179,983
972,799



18.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank loans
10,079
17,321

Trade creditors
2,243,667
1,944,249

Corporation tax
77,849
6,019

Other taxation and social security
316,746
275,548

Other creditors
48,174
26,199

Accruals and deferred income
548,712
276,036

3,245,227
2,545,372


The bank loan was a Bounce Back Loan Scheme loan. Interest was charged at 2.5% per annum. The loan was repaid in full on 11 January 2024.

Page 23

 
H.F.L. Building Solutions Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2023

19.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
17,310
27,640


The bank loan was a Bounce Back Loan Scheme loan. Interest was charged at 2.5% per annum. The loan was repaid in full on 11 January 2024.


20.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Bank loans
10,079
17,321

Amounts falling due 1-2 years

Bank loans
10,344
9,568

Amounts falling due 2-5 years

Bank loans
6,966
18,072


27,389
44,961



21.


Deferred taxation




2023
2022


£

£






At beginning of year
(9,029)
(9,522)


Credited to profit or loss
16,553
493



At end of year
7,524
(9,029)

Page 24

 
H.F.L. Building Solutions Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2023
 
21.Deferred taxation (continued)

The deferred taxation balance is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(4,519)
(9,029)

Other timing differences
12,043
-

7,524
(9,029)


22.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



77 (2022 -100) Ordinary shares of £1.00 each
77
100
23 (2022 - 0) Ordinary B shares of £1.00 each
23
-

100

100

On 15 May 2023, 23 Ordinary shares were redesignated to 23 Ordinary B shares of £1 each.
All share classes rank pari passu.



23.


Reserves

Profit and loss account

The Profit and loss account includes all current and prior period retained profits and losses.


24.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from
those of the Company in an independently administered fund. The pension cost charge represents contributions
payable by the Company to the fund and amounted to 
£283,357 (2022: £297,201). Contributions totalling £48,174
(
2022: £26,199) were payable to the fund at the balance sheet date.

Page 25

 
H.F.L. Building Solutions Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2023

25.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
285,253
50,470

Later than 1 year and not later than 5 years
448,836
316,445

Later than 5 years
165,150
-

899,239
366,915


26.


Related party transactions

During the year the company paid rent of £73,400 (2022: £77,440) to a pension fund that departing directors are benificiaries of. 
During the year, the company provided goods and services to a value of £21,223 (
2022: £24,923) and purchased
goods and services to a value of £121,188 (
2022: £181,494) from a company with common directors. At 31 December 2023, there was £3,370 (2022: £38,704) due from this company.
During the year the company paid dividends totalling £176,252 (
2022: £214,000) to the directors of the company.


27.


Post balance sheet events

On 16 February 2024, control of the Company was transferred to Saxton Group Holdings Limited, a company registered in England and Wales, registered number 15372940.


28.


Controlling party

There is no overall controlling party of the Company during the period.
 
Page 26