Company registration number 00351508 (England and Wales)
HARRISON & HARRISON LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
HARRISON & HARRISON LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 9
HARRISON & HARRISON LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
5
945,487
1,621,169
Investment property
6
625,000
1,570,487
1,621,169
Current assets
Stocks
120,812
361,537
Debtors
308,499
393,289
Cash at bank and in hand
1,185,319
391,419
1,614,630
1,146,245
Creditors: amounts falling due within one year
(1,114,439)
(836,016)
Net current assets
500,191
310,229
Total assets less current liabilities
2,070,678
1,931,398
Creditors: amounts falling due after more than one year
(96,667)
(136,667)
Provisions for liabilities
7
(11,870)
(79,785)
Net assets
1,962,141
1,714,946
Capital and reserves
Called up share capital
21,576
21,576
Revaluation reserve
350,786
350,786
Profit and loss reserves
1,589,779
1,342,584
Total equity
1,962,141
1,714,946
HARRISON & HARRISON LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023
31 December 2023
- 2 -
In accordance with section 444 of the Companies Act 2006, all of the members of the company have consented to the preparation of abridged financial statements pursuant to paragraph 1A of Schedule 1 to the Small Companies and Groups (Accounts and Directors’ Report) Regulations (SI 2008/409)(b).
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 29 July 2024 and are signed on its behalf by:
Mr A N Scott
Mrs S L Venning
Director
Director
Mr S T Johnson
Director
Company registration number 00351508 (England and Wales)
HARRISON & HARRISON LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
21,576
350,786
1,094,835
1,467,197
Year ended 31 December 2022:
Loss for the year
-
-
(115,131)
(115,131)
Other comprehensive income:
Actuarial gains on defined benefit plans
-
-
448,000
448,000
Tax relating to other comprehensive income
-
(85,120)
(85,120)
Total comprehensive income for the year
-
-
247,749
247,749
Balance at 31 December 2022
21,576
350,786
1,342,584
1,714,946
Year ended 31 December 2023:
Profit for the year
-
-
188,204
188,204
Other comprehensive income:
Actuarial deficits on defined benefit plans
-
-
79,000
79,000
Tax relating to other comprehensive income
-
(15,010)
(15,010)
Total comprehensive income for the year
-
-
252,194
252,194
Dividends
-
-
(4,999)
(4,999)
Balance at 31 December 2023
21,576
350,786
1,589,779
1,962,141
HARRISON & HARRISON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
1
Accounting policies
Company information
Harrison & Harrison Limited is a private company limited by shares incorporated in England and Wales. The registered office is St. John's Road, Meadowfield, Durham, DH7 8YH.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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, modified to include the revaluation of properties. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover represents the contract value of work performed during the year on new organs, restoration or cleaning, excluding value added tax. It also represents amounts invoiced for work done on tuning organs in the period. Profits on contracts are only recognised upon completion, as the directors consider the outcome can only be forseen with reasonable certainty at this point. Provision is made in full for anticipated future losses on uncompleted contracts.
1.3
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:
Land and buildings
2% Straight Line
Plant and machinery
20% Straight Line
Fixtures, fittings & equipment
10% & 20% Straight Line
Motor vehicles
25% Reducing Balance
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 credited or charged to profit or loss.
1.4
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company 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.
HARRISON & HARRISON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
1.6
Stocks
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads.
Raw materials are stated at the lower of cost and net realisable value. Work in progress is stated at cost less progress payments received on account. Cost includes an appropriate proportion of direct overheads and full provision is made for estimated losses as soon as they are identified. Work in progress balances are after the set off of payments in advance amounting to £2,590k (2022: £2,871k) and the inclusion of advanced purchases amounting to £961k (2022: £1,012k). Payments in advance have been set off against work in progress to the extent of the balances to which they relate. In the foregoing, reliance has been made upon FRS 102 section 23.
1.7
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.
1.8
Financial instruments
The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which 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.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, 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.
HARRISON & HARRISON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -
1.9
Equity instruments
Equity instruments issued by the company 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 company.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.10
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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 when the company has 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.
1.11
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.
1.12
Retirement benefits
The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.
Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.
HARRISON & HARRISON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 7 -
1.13
Leases
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.
1.14
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are 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
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
71
72
4
Intangible fixed assets
Total
£
Cost
At 1 January 2023 and 31 December 2023
21,000
Amortisation and impairment
At 1 January 2023 and 31 December 2023
21,000
Carrying amount
At 31 December 2023
At 31 December 2022
HARRISON & HARRISON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
5
Tangible fixed assets
Land and buildings
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
1,693,922
360,625
138,984
30,186
2,223,717
Additions
9,377
9,377
Disposals
(5,155)
(5,155)
Transfer to investment property
(675,000)
(675,000)
At 31 December 2023
1,018,922
360,625
143,206
30,186
1,552,939
Depreciation and impairment
At 1 January 2023
155,073
327,536
95,894
24,045
602,548
Depreciation charged in the year
24,603
16,741
13,469
1,371
56,184
Eliminated in respect of disposals
(5,155)
(5,155)
Transfer to investment property
(46,125)
(46,125)
At 31 December 2023
133,551
344,277
104,208
25,416
607,452
Carrying amount
At 31 December 2023
885,371
16,348
38,998
4,770
945,487
At 31 December 2022
1,538,849
33,089
43,090
6,141
1,621,169
6
Investment property
2023
£
Fair value
At 1 January 2023
Transfers
628,875
Revaluations
(3,875)
At 31 December 2023
625,000
7
Provisions for liabilities
2023
2022
£
£
Deferred tax liabilities
7,010
10,935
Retirement benefit obligations
4,860
68,850
11,870
79,785
9
Controlling party
The majority shareholding of the company belongs to the Venning CTLH Discretionary Settlement, of which Mr MB Venning, Ms LKL Johnson, Mr ST Johnson and Ms E Webbe (Solicitor) are trustees.
HARRISON & HARRISON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
10
Pension scheme deficit
The Harrison & Harrison Ltd (1978) Retirement and Death Benefit Scheme, a defined benefit scheme, was closed to future accrual on 30 June 2008.
The last FRS 102 - Section 28 Disclosure Report on 26 January 2024, based on the actuarial valuation at 31 December 2023, identified a scheme funding deficit of £6k at 31 December 2023 (2022: £85k). The reduction in the deficit has come about by an overall actuarial gain of £79k, which is made up of a £133k reduction on the scheme liabilities and a £212k increase on the scheme assets. The fair value of the schemes assets was £3,145k at 31 December 2023 (2022: £2,933k) and the present value of the defined benefit obligation was £3,151k (2022: £3,018k). The company has made a provision of £4860 (deficit of £6000 less deferred tax thereon of £1140) for this deficit in the financial statements; this is reflected in long term liabilities.
The company made a deficit repayment of £72k (2022: £70k) in the year to 31 December 2023. The company agreed with the trustees that it will aim to eliminate the deficit identified in the actuarial valuation over a period of 12 years 8 months from 31 March 2021 by payment of annual contributions of £70,000 from 1 December 2018, increasing by 3% per annum, in respect of the deficit. In addition and in accordance with the actuarial valuation, the company has agreed with the trustees that it will meet expenses of the scheme and levies to The Pension Protection Fund.
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