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Registration number: 01123765

Hereford Industrial Supply Company Ltd

Annual Report and Unaudited Financial Statements

for the Year Ended 31 March 2024

 

Hereford Industrial Supply Company Ltd

Company Information

Director

Mr Mark Hyde

Registered office

St Ethelbert House
Ryelands Street
Hereford
Herefordshire
HR4 0LA

Bankers

Lloyds Bank
Hereford
8 High Town
Hereford
HR1 2AE

Accountants

Young & Co
Chartered Accountants
St Ethelbert House
Ryelands Street
Hereford
Herefordshire
HR4 0LA

 

Hereford Industrial Supply Company Ltd

Director's Report for the Year Ended 31 March 2024

The director presents his report and the financial statements for the year ended 31 March 2024.

Director of the company

The director who held office during the year was as follows:

Mr Mark Hyde

Principal activity

The principal activity of the company is the purchase and distribution of industrial fasternings, the hire of industrial equipment and the sale of anciliary supplies.

Small companies provision statement

This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved and authorised by the director on 8 August 2024
 

.........................................
Mr Mark Hyde
Director

 

Chartered Accountants' Report to the Director on the Preparation of the Unaudited Statutory Accounts of
Hereford Industrial Supply Company Ltd
for the Year Ended 31 March 2024

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Hereford Industrial Supply Company Ltd for the year ended 31 March 2024 as set out on pages 4 to 18 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at
http://www.icaew.com/regulation.

This report is made solely to the Board of Directors of Hereford Industrial Supply Company Ltd, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts of Hereford Industrial Supply Company Ltd and state those matters that we have agreed to state to the Board of Directors of Hereford Industrial Supply Company Ltd, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Hereford Industrial Supply Company Ltd and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Hereford Industrial Supply Company Ltd has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Hereford Industrial Supply Company Ltd. You consider that Hereford Industrial Supply Company Ltd is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of Hereford Industrial Supply Company Ltd. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.

......................................

Young & Co
Chartered Accountants
St Ethelbert House
Ryelands Street
Hereford
Herefordshire
HR4 0LA

8 August 2024

 

Hereford Industrial Supply Company Ltd

Profit and Loss Account for the Year Ended 31 March 2024

Note

2024
£

2023
£

Turnover

 

2,562,562

2,543,010

Cost of sales

 

(1,753,366)

(1,747,510)

Gross profit

 

809,196

795,500

Administrative expenses

 

(186,901)

(415,582)

Other operating income

 

-

2,000

Operating profit

 

622,295

381,918

Interest payable and similar expenses

 

(17,434)

(25,896)

Profit before tax

4

604,861

356,022

Tax on profit

 

(76,647)

(67,640)

Profit for the financial year

 

528,214

288,382

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

Hereford Industrial Supply Company Ltd

(Registration number: 01123765)
Balance Sheet as at 31 March 2024

Note

2024
£

2023
£

Tangible assets

6

48,024

1,033,597

Investments

7

34,000

34,000

 

82,024

1,067,597

Current assets

 

Stocks

8

1,159,819

1,147,392

Debtors

9

382,761

358,624

Cash at bank and in hand

 

230,858

69,255

 

1,773,438

1,575,271

Creditors: Amounts falling due within one year

10

(636,745)

(657,678)

Net current assets

 

1,136,693

917,593

Total assets less current liabilities

 

1,218,717

1,985,190

Creditors: Amounts falling due after more than one year

10

(66,667)

(378,132)

Provisions for liabilities

(7,712)

(5,902)

Net assets

 

1,144,338

1,601,156

Capital and reserves

 

Called up share capital

11

8,578

8,578

Retained earnings

1,135,760

1,592,578

Shareholders' funds

 

1,144,338

1,601,156

For the financial year ending 31 March 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

 

Hereford Industrial Supply Company Ltd

(Registration number: 01123765)
Balance Sheet as at 31 March 2024
(continued)

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved and authorised by the director on 8 August 2024
 

.........................................
Mr Mark Hyde
Director

   
     
 

Hereford Industrial Supply Company Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

1

General information

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:
St Ethelbert House
Ryelands Street
Hereford
Herefordshire
HR4 0LA

These financial statements were authorised for issue by the director on 8 August 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared in accordance with FRS 102, section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

The financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated customer returns, rebates and other similar allowances. Revenue from the sale of goods is recognised when goods are delivered and legal title has passed.

Tax

Taxation represents the sum of tax currently payable and deferred tax.

The company's liability for current tax is calculated using tax rates that have been enacted or substantially enacted by the end of the reporting period.

 

Hereford Industrial Supply Company Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024
(continued)

2

Accounting policies (continued)

Deferred tax is recognised on all timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantially enacted by the end of the reporting period.

Depreciation

Tangible fixed assets held for the company's own use are stated at cost less accumulated depreciation and accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives at the following rates:

Asset class

Depreciation method and rate

Freehold buildings

2% of cost per annum

Motor vehicles

25% of written down value per annum

Plant and machinery

25% of cost per annum

Fixtures and fittings

15% of written down value per annum

Computer equipment

33% of cost per annum

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Intangible assets

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows: Software 33% of cost per annum

 

Hereford Industrial Supply Company Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024
(continued)

2

Accounting policies (continued)

Amortisation

Amortisation is provided on purchased goodwill in equal instalments, commencing in the year of acquisition at rates estimated to write off its cost over its expected useful economic life which in the opinion of the directors is 3 years.

Asset class

Amortisation method and rate

Software

33% of cost per annum

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell (net realisable value). Costs, which comprise direct production costs, are based on the method most appropriate to the type of inventory class, but usually on a first-in-first-out basis. Overheads are charged to profit and loss as incurred. Net realiasable value is based on the estimated selling price less any estimated completion or selling costs. When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs.The amount of any reversal of any write-down of stocks is recognised ias a reduction in the amount of stocks recognised as an expense in the period in which the reversal occurs.

 

Hereford Industrial Supply Company Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024
(continued)

2

Accounting policies (continued)

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

The company provides a defined contribution pension scheme, the assets of which are held separately from those of the company in an independently administered fund. The pension charge represents the amoynt payable by the company to the fund in respect of the year.

3

Staff numbers

The average number of persons employed by the company (including the director) during the year, was 22 (2023 - 19).

 

Hereford Industrial Supply Company Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024
(continued)

4

Profit before tax

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

11,908

29,412

 

Hereford Industrial Supply Company Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024
(continued)

5

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 April 2023

49,126

49,126

At 31 March 2024

49,126

49,126

Amortisation

At 1 April 2023

49,126

49,126

At 31 March 2024

49,126

49,126

Carrying amount

At 31 March 2024

-

-

 

Hereford Industrial Supply Company Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024
(continued)

6

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 April 2023

1,077,292

356,208

66,290

1,499,790

Additions

-

874

22,750

23,624

Disposals

(1,077,292)

(8,231)

(20,990)

(1,106,513)

At 31 March 2024

-

348,851

68,050

416,901

Depreciation

At 1 April 2023

94,235

335,023

36,935

466,193

Charge for the year

-

7,138

9,330

16,468

Eliminated on disposal

(94,235)

(7,660)

(11,889)

(113,784)

At 31 March 2024

-

334,501

34,376

368,877

Carrying amount

At 31 March 2024

-

14,350

33,674

48,024

At 31 March 2023

983,057

21,185

29,355

1,033,597

Included within the net book value of land and buildings above is £Nil (2023 - £983,057) in respect of freehold land and buildings.
 

 

Hereford Industrial Supply Company Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024
(continued)

7

Investments

2024
£

2023
£

Investments in subsidiaries

34,000

34,100

Investments in associates

-

(100)

34,000

34,000

Subsidiaries

£

Cost or valuation

At 1 April 2023

34,000

Provision

Carrying amount

At 31 March 2024

34,000

At 31 March 2023

34,100


Details of undertakings

Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

 

Hereford Industrial Supply Company Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024
(continued)

7

Investments (continued)

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

2024

2023

Subsidiary undertakings

Hereford Steels Limited

United Kingdom

Ordinary

100%

100%

W E Wilde & Co

United Kingdom

Ordinary

100%

100%

Subsidiary undertakings

Hereford Steels Limited

The principal activity of Hereford Steels Limited is Dormant. The profit for the financial period of Hereford Steels Limited was £- and the aggregate amount of capital and reserves at the end of the period was £1,000.

W E Wilde & Co

The principal activity of W E Wilde & Co is Supply and repair power tools. The profit for the financial period of W E Wilde & Co was £- and the aggregate amount of capital and reserves at the end of the period was £33,000.

8

Stocks

2024
£

2023
£

Other inventories

1,159,819

1,147,392

 

Hereford Industrial Supply Company Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024
(continued)

9

Debtors

2024
£

2023
£

Trade debtors

364,605

338,448

Prepayments

18,156

20,176

382,761

358,624

10

Creditors

Creditors: amounts falling due within one year

Note

2024
£

2023
£

Due within one year

 

Loans and borrowings

12

50,000

158,751

Trade creditors

 

255,571

261,802

Amounts owed to group undertakings and undertakings in which the company has a participating interest

130,744

34,000

Taxation and social security

 

122,082

108,201

Accruals and deferred income

 

20,574

40,155

Other creditors

 

57,774

54,769

 

636,745

657,678

Creditors: amounts falling due after more than one year

Note

2024
£

2023
£

Due after one year

 

Loans and borrowings

12

66,667

378,132

 

Hereford Industrial Supply Company Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024
(continued)

11

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary A of £1 each

6,005

6,005

6,005

6,005

Ordinary B of £1 each

859

859

859

859

Ordinary C of £1 each

1,714

1,714

1,714

1,714

8,578

8,578

8,578

8,578

12

Loans and borrowings

Non-current loans and borrowings

2024
£

2023
£

Bank borrowings

66,667

378,132

Current loans and borrowings

2024
£

2023
£

Bank borrowings

50,000

158,751

Bank borrowings

 

Hereford Industrial Supply Company Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024
(continued)

12

Loans and borrowings (continued)

Bank loan is denominated in Sterling with a nominal interest rate of 2.5%, and the final instalment is due on . The carrying amount at year end is £116,667 (2023 - £536,883).

The bank loan is secured by a debenture over all the company's assets and undertakings

13

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £7,418 (2023 - £6,747). The company operates defined contribution schemes on behalf of its directors and employees. The assets of the schemes are held separately from those of the company in independently administered funds.

The total amount of guarantees not included in the balance sheet is £160,243 (2023 - £44,660).