Company registration number 10199334 (England and Wales)
HARVEY COMMERCIAL HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
HARVEY COMMERCIAL HOLDINGS LIMITED
COMPANY INFORMATION
Director
A J Harvey
Secretary
H E Britton
Company number
10199334
Registered office
19 Common Road
Hanham
Bristol
United Kingdom
BS15 3LL
Auditor
Azets Audit Services
Epsilon House
The Square
Gloucester Business Park
Gloucester
Gloucestershire
United Kingdom
GL3 4AD
Business address
19 Common Road
Hanham
Bristol
United Kingdom
BS15 3LL
Bankers
Barclays Bank Plc
PO Box 674
121 Queens Street
Cardiff
United Kingdom
CF10 2XU
HARVEY COMMERCIAL HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Notes to the financial statements
13 - 34
HARVEY COMMERCIAL HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 1 -

The director presents the strategic report for the year ended 30 November 2023.

Fair Review of Business

During the Autumn of 2022, both in the UK and worldwide, a turbulent and unpredictable economic environment, led to a significant increase in interest rates and general price inflation. In the wake of this uncertainty, a number of our customers either froze or paired back their programme of capital expenditure. This was the key factor in the reduction in sales compared to 2022. Despite the downturn, by controlling costs, the business was able to maintain an overall comparable level of % profit before tax and interest.

 

The groups results for the year are in line with expectations and considered satisfactory by the director.

Principal Risks and Uncertainties

Due to the nature of the groups trade the director considers that changes to the economy and the effect that these changes have on construction and the leisure sectors to be the principle risk of the group.

 

We have the benefit of a substantial orderbook across the group companies and the necessary cash balances across the group to expand the businesses.

 

Key Performance Indicators

The companies have sophisticated systems to manage both its construction activities and those of the leisure businesses.

 

The Board and senior management monitors its debts,creditors and cash balances to ensure it maintains the necessary liquidity to meet its short term and long term demands on the business.

          

The Board place great emphiasis on the company meeting its responsiblities to all stakeholders in the business and promote sustainable solutions to lesson the impact on the enviroment.

On behalf of the board

A J Harvey
Director
1 August 2024
HARVEY COMMERCIAL HOLDINGS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 2 -

The director presents his annual report and financial statements for the year ended 30 November 2023.

Principal activities

The principal activity of the company is that of a holding company. The principal activity of the group continued to be that of fit out contractors, hoteliers, golf club operators and provision of wedding services.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

A J Harvey
Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £674,000. The director does not recommend payment of a further dividend.

Auditor

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the group will be put at a General Meeting.

Statement of director's responsibilities

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

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

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

HARVEY COMMERCIAL HOLDINGS LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 3 -
On behalf of the board
A J Harvey
Director
1 August 2024
HARVEY COMMERCIAL HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HARVEY COMMERCIAL HOLDINGS LIMITED
- 4 -
Opinion

We have audited the financial statements of Harvey Commercial Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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 director 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 auditor's report thereon. The director is responsible for the other information contained within the annual report. 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. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

HARVEY COMMERCIAL HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HARVEY COMMERCIAL HOLDINGS LIMITED
- 5 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's 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:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing 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 director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

HARVEY COMMERCIAL HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HARVEY COMMERCIAL HOLDINGS LIMITED
- 6 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of 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.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

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

Rebecca Hudson (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
9 August 2024
Chartered Accountants
Statutory Auditor
Epsilon House
The Square
Gloucester Business Park
Gloucester
Gloucestershire
United Kingdom
GL3 4AD
HARVEY COMMERCIAL HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 7 -
2023
2022
as restated
Notes
£
£
Turnover
3
43,264,790
57,824,944
Cost of sales
(33,982,066)
(49,031,792)
Gross profit
9,282,724
8,793,152
Administrative expenses
(6,479,178)
(5,291,695)
Other operating income
1,181
15,375
Exceptional item
4
(19,800)
-
0
Operating profit
6
2,784,927
3,516,832
Interest receivable and similar income
8
31,650
5,731
Interest payable and similar expenses
10
(352,748)
(166,892)
Change in fair value of investments
11
157,334
(296,507)
Profit before taxation
2,621,163
3,059,164
Tax on profit
12
(611,903)
(894,469)
Profit for the financial year
2,009,260
2,164,695
Profit for the financial year is attributable to:
- Owner of the parent company
1,836,998
2,078,833
- Non-controlling interests
172,262
85,862
2,009,260
2,164,695
Total comprehensive income for the year is attributable to:
- Owner of the parent company
1,836,998
2,078,833
- Non-controlling interests
172,262
85,862
2,009,260
2,164,695

The profit and loss account has been prepared on the basis that all operations are continuing operations.

HARVEY COMMERCIAL HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
30 NOVEMBER 2023
30 November 2023
- 8 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Goodwill
14
418,224
550,701
Tangible assets
15
21,494,025
18,209,858
21,912,249
18,760,559
Current assets
Stocks
18
2,565,642
3,325,130
Debtors
19
11,113,426
11,581,254
Investments
20
3,039,156
2,881,822
Cash at bank and in hand
3,097,061
6,442,115
19,815,285
24,230,321
Creditors: amounts falling due within one year
21
(15,324,917)
(16,985,841)
Net current assets
4,490,368
7,244,480
Total assets less current liabilities
26,402,617
26,005,039
Creditors: amounts falling due after more than one year
22
(3,038,200)
(3,846,371)
Provisions for liabilities
Deferred tax liability
25
852,984
742,495
(852,984)
(742,495)
Net assets
22,511,433
21,416,173
Capital and reserves
Called up share capital
27
900
900
Capital redemption reserve
100
100
Profit and loss reserves
22,275,107
21,352,109
Equity attributable to owner of the parent company
22,276,107
21,353,109
Non-controlling interests
235,326
63,064
22,511,433
21,416,173
The financial statements were approved and signed by the director and authorised for issue on 1 August 2024
01 August 2024
A J Harvey
Director
Company registration number 10199334 (England and Wales)
HARVEY COMMERCIAL HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 30 NOVEMBER 2023
30 November 2023
- 9 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
15
22,261,196
15,782,867
Investments
16
1,760
1,860
22,262,956
15,784,727
Current assets
Debtors
19
4,441,685
6,040,797
Investments
20
3,039,156
2,881,822
Cash at bank and in hand
16,266
530,536
7,497,107
9,453,155
Creditors: amounts falling due within one year
21
(16,541,614)
(13,182,235)
Net current liabilities
(9,044,507)
(3,729,080)
Total assets less current liabilities
13,218,449
12,055,647
Provisions for liabilities
25
(831,977)
(717,951)
Net assets
12,386,472
11,337,696
Capital and reserves
Called up share capital
27
900
900
Profit and loss reserves
12,385,572
11,336,796
Total equity
12,386,472
11,337,696
The financial statements were approved and signed by the director and authorised for issue on 1 August 2024
01 August 2024
A J Harvey
Director
Company Registration No. 10199334
HARVEY COMMERCIAL HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
As restated for the period ended 30 November 2022:
Balance at 1 December 2021
900
100
20,128,288
20,129,288
(22,798)
20,106,490
Year ended 30 November 2022:
Profit and total comprehensive income
-
-
2,078,833
2,078,833
85,862
2,164,695
Dividends
13
-
-
(855,000)
(855,000)
-
(855,000)
Balance at 30 November 2022
900
100
21,352,109
21,353,109
63,064
21,416,173
Year ended 30 November 2023:
Profit and total comprehensive income
-
-
1,836,998
1,836,998
172,262
2,009,260
Dividends
13
-
-
(914,000)
(914,000)
-
(914,000)
Balance at 30 November 2023
900
100
22,275,107
22,276,107
235,326
22,511,433
HARVEY COMMERCIAL HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 30 November 2022:
Balance at 1 December 2021
900
11,975,564
11,976,464
Year ended 30 November 2022:
Profit and total comprehensive income for the year
-
216,232
216,232
Dividends
13
-
(855,000)
(855,000)
Balance at 30 November 2022
900
11,336,796
11,337,696
Year ended 30 November 2023:
Profit and total comprehensive income
-
1,722,776
1,722,776
Dividends
13
-
(674,000)
(674,000)
Balance at 30 November 2023
900
12,385,572
12,386,472
HARVEY COMMERCIAL HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 12 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
31
2,036,931
3,257,883
Interest paid
(352,748)
(166,892)
Income taxes paid
(359,074)
(346,096)
Net cash inflow from operating activities
1,325,109
2,744,895
Investing activities
Purchase of tangible fixed assets
(3,340,400)
(5,248,309)
Interest received
31,650
5,731
Net cash used in investing activities
(3,308,750)
(5,242,578)
Financing activities
Bonus share issue
-
0
286
Repayment of bank loans
(429,461)
(407,771)
Payment of finance leases obligations
(17,437)
(7,248)
Dividends paid to equity shareholders
(914,000)
(855,000)
Net cash used in financing activities
(1,360,898)
(1,269,733)
Net decrease in cash and cash equivalents
(3,344,539)
(3,767,416)
Cash and cash equivalents at beginning of year
6,441,600
10,209,016
Cash and cash equivalents at end of year
3,097,061
6,441,600
Relating to:
Cash at bank and in hand
3,097,061
6,442,115
Bank overdrafts included in creditors payable within one year
-
(515)
HARVEY COMMERCIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 13 -
1
Accounting policies
Company information

Harvey Commercial Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .

 

The group consists of Harvey Commercial Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Harvey Commercial Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 30 November 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

HARVEY COMMERCIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.4
Going concern

The group has the benefit of supplying to different markets . It is not reliant on one business sector should there be a temporary slow down in demand. The group has adequate resources ,net assets and a positive cash balance to continue in operational existence for the foreseeable future.

 

At the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the 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, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of 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.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
Nil
Leasehold improvements
Nil
Plant and equipment
20% Reducing balance
Fixtures, fittings and Equipment
10/ 20% Reducing balance
Motor vehicles
20-25% Reducing balance
Refurbishment costs
10% Reducing Balnce
HARVEY COMMERCIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 15 -

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

 

The directors consider that the freehold property is maintained to level that the residual value of the property is at lease equal to its book values. Having regard to this; is is the opinion of the directors that amortisation of this property as required by the Companies Act 2006 and accounting standards would not be material.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

HARVEY COMMERCIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 16 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs 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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

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

 

Financial assets and liabilities are offset and 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 include 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.

HARVEY COMMERCIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services 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 less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

HARVEY COMMERCIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 18 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.15
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

HARVEY COMMERCIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.16
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.17
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.18
Leases

Leases are classified as finance 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.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.19
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

HARVEY COMMERCIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 20 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Fit out contracting
33,135,031
49,593,750
Hoteliers
-
284
Wedding services and golf centres
9,534,259
8,117,792
Consultancy
-
113,118
Property development
595,500
-
43,264,790
57,824,944
2023
2022
£
£
Turnover analysed by geographical market
UK
43,264,790
57,824,944
2023
2022
£
£
Other revenue
Interest income
31,650
5,731
4
Exceptional item
2023
2022
£
£
Expenditure
Exceptional 1 - Above operating profit
19,800
-
19,800
-

During the year the company incurred costs in respect of an external fraud.

HARVEY COMMERCIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 21 -
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
3,965
2,950
Audit of the financial statements of the company's subsidiaries
59,900
41,634
63,865
44,584
6
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging:
Depreciation of owned tangible fixed assets
56,233
39,165
Amortisation of intangible assets
132,477
132,477
Operating lease charges
40,000
39,028
7
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
96,584
109,561
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
31,650
5,695
Other interest income
-
36
Total income
31,650
5,731
HARVEY COMMERCIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 22 -
9
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

2023
2022
Number
Number
Directors
5
4
Contract managers
9
10
Shopfitters
49
65
Hotel/ wedding venue staff
66
69
Golf club staff
22
18
Administration
94
88
245
254

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
9,434,326
9,418,407
Social security costs
1,020,885
1,037,882
Pension costs
241,103
236,367
10,696,314
10,692,656
10
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
346,452
158,934
Other interest on financial liabilities
3,401
1,605
Interest on finance leases and hire purchase contracts
2,895
2,040
Other interest
-
4,313
Total finance costs
352,748
166,892
11
Amounts written off investments
2023
2022
£
£
Fair value gains/(losses) on financial instruments
Gain/(loss) on financial assets held at fair value through profit or loss
157,334
(296,507)
HARVEY COMMERCIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 23 -
12
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
577,307
459,119
Adjustments in respect of prior periods
(83,842)
(214,760)
Total current tax
493,465
244,359
Deferred tax
Origination and reversal of timing differences
115,150
650,110
Adjustment in respect of prior periods
3,288
-
0
Total deferred tax
118,438
650,110
Total tax charge
611,903
894,469

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
2,621,163
3,059,164
Expected tax charge based on the standard rate of corporation tax in the UK of 23.00% (2022: 19.00%)
602,867
581,241
Tax effect of expenses that are not deductible in determining taxable profit
23,076
78,283
Adjustments in respect of prior years
(83,842)
(214,760)
Deferred tax adjustments in respect of prior years
3,288
266,304
Other adjustments
66,514
183,401
Taxation charge
611,903
894,469
13
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
674,000
855,000
HARVEY COMMERCIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 24 -
14
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 December 2022 and 30 November 2023
3,084,679
Amortisation and impairment
At 1 December 2022
2,533,978
Amortisation charged for the year
132,477
At 30 November 2023
2,666,455
Carrying amount
At 30 November 2023
418,224
At 30 November 2022
550,701
The company had no intangible fixed assets at 30 November 2023 or 30 November 2022.
HARVEY COMMERCIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 25 -
15
Tangible fixed assets
Group
Freehold land and buildings
Leasehold improvements
Leasehold improvements
Plant and equipment
Fixtures, fittings and Equipment
Motor vehicles
Refurbishment costs
Total
£
£
£
£
£
£
£
£
Cost
At 1 December 2022
18,076,406
8,000
220,096
189,556
823,967
77,595
229,289
19,624,909
Additions
3,330,400
-
0
-
0
10,000
-
0
-
0
-
0
3,340,400
At 30 November 2023
21,406,806
8,000
220,096
199,556
823,967
77,595
229,289
22,965,309
Depreciation and impairment
At 1 December 2022
83,440
-
0
220,096
119,696
754,141
20,398
217,280
1,415,051
Depreciation charged in the year
4,361
1,600
-
0
22,614
13,646
12,811
1,201
56,233
At 30 November 2023
87,801
1,600
220,096
142,310
767,787
33,209
218,481
1,471,284
Carrying amount
At 30 November 2023
21,319,005
6,400
-
0
57,246
56,180
44,386
10,808
21,494,025
At 30 November 2022
17,992,966
8,000
-
0
69,860
69,826
57,197
12,009
18,209,858
HARVEY COMMERCIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 26 -
Company
Freehold land and buildings
Motor vehicles
Total
£
£
£
Cost
At 1 December 2022
15,750,757
48,950
15,799,707
Additions
6,491,624
-
0
6,491,624
At 30 November 2023
22,242,381
48,950
22,291,331
Depreciation and impairment
At 1 December 2022
16,024
816
16,840
Depreciation charged in the year
3,505
9,790
13,295
At 30 November 2023
19,529
10,606
30,135
Carrying amount
At 30 November 2023
22,222,852
38,344
22,261,196
At 30 November 2022
15,734,733
48,134
15,782,867
16
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
17
-
0
-
0
1,760
1,860
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 December 2022
1,860
Disposals
(100)
At 30 November 2023
1,760
Carrying amount
At 30 November 2023
1,760
At 30 November 2022
1,860
17
Subsidiaries

Details of the company's subsidiaries at 30 November 2023 are as follows:

HARVEY COMMERCIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
17
Subsidiaries
(Continued)
- 27 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Parkfield Golf Ltd
UK
Ordinary shares
-
76.00
Dearborn Estates Limited
UK
Ordinary shares
76.00
-
Harvey Shopfitters Limited
UK
Ordinary shares
76.00
-
Huntswood Park Limited
UK
Ordinary shares
-
76.00
Hyde House Hotel Limited
UK
Ordinary shares
-
76.00
Millbridge Court Limited
UK
Ordinary shares
-
76.00
The Old Bell Hotel Limited
UK
Ordinary shares
-
76.00
Veya Homes Limited
UK
Ordinary shares
100.00
-
Kin House Limited
UK
Ordinary shares
-
76.00
Harvey Contracts Limited
UK
Ordinary shares
-
76.00
18
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
67,200
43,415
-
-
Work in progress
2,430,243
3,246,335
-
-
Finished goods and goods for resale
68,199
35,380
-
0
-
0
2,565,642
3,325,130
-
-
HARVEY COMMERCIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 28 -
19
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
7,738,395
8,510,931
37,671
36,785
Unpaid share capital
100
100
-
0
-
0
Corporation tax recoverable
11,472
12,750
-
0
-
0
Amounts owed by group undertakings
-
-
1,479,684
3,228,905
Other debtors
3,157,863
2,870,229
2,924,330
2,775,107
Prepayments and accrued income
133,471
104,131
-
0
-
0
11,041,301
11,498,141
4,441,685
6,040,797
Deferred tax asset (note 25)
56,953
64,162
-
0
-
0
11,098,254
11,562,303
4,441,685
6,040,797
Amounts falling due after more than one year:
Deferred tax asset (note 25)
15,172
18,951
-
0
-
0
Total debtors
11,113,426
11,581,254
4,441,685
6,040,797
20
Current asset investments
Group
Company
2023
2022
2023
2022
£
£
£
£
Unlisted investments
3,039,156
2,881,822
3,039,156
2,881,822
21
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
23
857,291
492,108
57,509
-
0
Obligations under finance leases
24
13,012
17,437
-
0
-
0
Payments received on account
4,423,467
3,515,889
-
0
-
0
Trade creditors
6,396,306
8,247,322
1,283,887
-
0
Corporation tax payable
574,496
444,422
222,994
-
0
Other taxation and social security
1,727,028
2,393,597
3,853
1,703
Other creditors
320,993
538,561
14,968,676
12,914,880
Accruals and deferred income
1,012,324
1,336,505
4,695
265,652
15,324,917
16,985,841
16,541,614
13,182,235
HARVEY COMMERCIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 29 -
22
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
23
3,022,906
3,818,065
-
0
-
0
Obligations under finance leases
24
15,294
28,306
-
0
-
0
3,038,200
3,846,371
-
-
23
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
3,880,197
4,309,658
57,509
-
0
Bank overdrafts
-
0
515
-
0
-
0
3,880,197
4,310,173
57,509
-
Payable within one year
857,291
492,108
57,509
-
0
Payable after one year
3,022,906
3,818,065
-
0
-
0

Included within bank loans are amounts of £268,687 (2022: £433,356) secured by a first legal charge over the freehold land and buildings at Hyde House Hotel and The Coach House. The loan is repayable over 5 years with interest being calculated monthly at an interest rate of 2.5% per annum. The loan is due to expire on 1 May 2025.

 

Included within bank loans are amounts of £91,260 (2022: £123,747) which are secured by a first legal charge over Common Road, Hanham, Bristol and a property of a certain related entity, together with a cross guarantee and debenture between the company, Dearborn Estates Limited, Hyde House Hotel Limited, Millbridge Court Limited and The Old Bell Hotel Limited. These amounts are to be fully repaid by June 2026, with interest charged at 2.25% over the banks base rate.

 

Included within bank loans are amounts of £356,491 (2022: £408,555) which are secured by a first legal charge over Common Road, Hanham, Bristol and a property of a certain related entity, together with a cross guarantee and debenture between the company, Millbridge Court LLP and The Old Bell Hotel Limited. These amounts are to be fully repaid by May 2024, with interest charged at 2.25% over the banks base rate.

 

Included within bank loans are amounts of £3,110,000 (2022: £3,344,000) which are secured by a first legal charge over Common Road, Hanham, Bristol and properties of certain related entities, together with a cross guarantee and debenture between the company, Hyde House Hotel Limited, Millbridge Court Limited, The Old Bell Hotel Limited and Dearborn Estates Limited. These amounts are to be fully repaid by January 2025, with interest charged at 2.05% over the banks base rate.

 

HARVEY COMMERCIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 30 -
24
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
15,068
22,655
-
0
-
0
In two to five years
17,190
29,296
-
0
-
0
32,258
51,951
-
-
Less: future finance charges
(3,952)
(6,208)
-
0
-
0
28,306
45,743
-
0
-
0

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. All leases are secured over the assets to which they relate.

25
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
852,984
742,495
72,125
83,113
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Company
£
£
£
£
Accelerated capital allowances
831,977
717,951
-
-
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 December 2022
659,382
717,951
Charge to profit or loss
121,477
114,026
Liability at 30 November 2023
780,859
831,977

The deferred tax asset set out above is expected to reverse in the future and relates to the utilisation of tax losses against future expected profits of the same period. The deferred tax liability set out above is expected to reverse in the future and relates to accelerated capital allowances that are expected to mature within the same period.

HARVEY COMMERCIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 31 -
26
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
241,103
236,367

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

27
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
900
900
900
900

 

28
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
174,617
135,811
-
-
Between two and five years
114,764
64,298
-
-
289,381
200,109
-
-
29
Related party transactions
Transactions with related parties

All transactions and balances between the group companies have been eliminated within the consolidated financial statements.

Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Company
Entities over which the company has control, joint control or significant influence
1,087,075
1,219,381
-
240,471
HARVEY COMMERCIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
29
Related party transactions
(Continued)
- 32 -
2023
2022
£
£
Company
Entities over which the entity has control, joint control or significant influence
3,161,224
2,451,390

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Company
Entities over which the company has control, joint control or significant influence
3,094,009
1,043,635

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
Balance
Balance
£
£
Company
Entities over which the company has control, joint control or significant influence
683,684
2,991,905
Other information

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.

HARVEY COMMERCIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 33 -
30
Prior period adjustment
Changes to the balance sheet - group
As previously reported
Adjustment
As restated at 30 Nov 2022
£
£
£
Current assets
Stocks
3,316,688
8,442
3,325,130
Creditors due within one year
Other creditors
(13,569,455)
(68,822)
(13,638,277)
Net assets
21,476,553
(60,380)
21,416,173
Capital and reserves
Profit and loss reserves
21,498,351
(60,380)
21,437,971
Changes to the profit and loss account - group
As previously reported
Adjustment
As restated
Period ended 30 November 2022
£
£
£
Cost of sales
(48,971,412)
(60,380)
(49,031,792)

It was noted that stocks were understated by £8,442 as at 30 November 2022.

 

It was also noted that accruals were understated by £68,822 as at 30 November 2022.

 

Both balances were therefore adjusted to reflect these differences, with the corresponding impact being attributed to cost of sales.

Reconciliation of changes in equity - company
The prior period adjustments do not give rise to any effect upon equity.
Reconciliation of changes in profit for the previous financial period
2022
£
Adjustments to prior year
Total adjustments
-
Profit as previously reported
216,232
Profit as adjusted
216,232
HARVEY COMMERCIAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 34 -
31
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
2,009,260
2,164,695
Adjustments for:
Taxation charged
611,903
894,469
Finance costs
352,748
166,892
Investment income
(31,650)
(5,731)
Amortisation and impairment of intangible assets
132,477
132,477
Depreciation and impairment of tangible fixed assets
56,233
39,165
Amounts written off investments
(157,334)
296,507
Movements in working capital:
Decrease/(increase) in stocks
759,488
(881,755)
Decrease/(increase) in debtors
455,562
(1,549,347)
(Decrease)/increase in creditors
(2,151,756)
2,000,510
Cash generated from operations
2,036,931
3,257,882
32
Analysis of changes in net funds/(debt) - group
1 December 2022
Cash flows
30 November 2023
£
£
£
Cash at bank and in hand
6,442,115
(3,345,054)
3,097,061
Bank overdrafts
(515)
515
-
0
6,441,600
(3,344,539)
3,097,061
Borrowings excluding overdrafts
(4,309,658)
429,461
(3,880,197)
Obligations under finance leases
(45,743)
17,437
(28,306)
2,086,199
(2,897,641)
(811,442)
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