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Registered number: 12813623









HONTAN HOLDINGS LIMITED









GROUP ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2023

 
HONTAN HOLDINGS LIMITED
 
 
COMPANY INFORMATION


Directors
Montague George 
Daniel Beckles 




Company secretary
Montague George



Registered number
12813623



Registered office
St Mary's House
Netherhampton

Salisbury

Wiltshire

SP2 8PU




Independent auditors
Clifford Fry & Co LLP (Statutory auditors)

St Mary's House

Netherhampton

Salisbury

Wiltshire

SP2 8PU





 
HONTAN HOLDINGS LIMITED
 

CONTENTS



Page
Group strategic report
1 - 4
Directors' report
5 - 6
Independent auditors' report
7 - 11
Consolidated statement of income and retained earnings
12
Consolidated balance sheet
13 - 14
Company balance sheet
15 - 16
Consolidated statement of cash flows
17 - 18
Consolidated analysis of net debt
19
Notes to the financial statements
20 - 40


 
HONTAN HOLDINGS LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2023

Mission statement
 
We remain focused on delivering our vision for employees, stakeholders, customers and the planet:
"We believe buying furniture should be simple. It should leave you happy, with money in your pocket, excited to get home, to hang out at home and entertain those you love.
We believe everyone has the right to a happy home - one they take pride in, kitted out to meet their needs in a hassle-free and low-impact way.
Our values of collaboration, transparency, integrity, innovation - alongside a desire to simplify the complex and a 'think small aim big' approach - are the enablers to make us the dependable, accessible destination for stylish furniture that delivers on our beliefs.”

Organisational structure and governance

The Board convenes on a quarterly basis and is chaired by the MD. The Board consists of two working directors and a finance controller. We consider key financial metrics and market conditions to set the financial course for the business. The senior leadership team meets once a quarter to discuss the commercial areas of the business, including: HR, Finance, Growth and Professional services. Weekly meetings are held with key managers, with representatives from each department including: Finance, Marketing, Operations and Tech; we discuss evolving opportunities and operational topics.

Page 1

 
HONTAN HOLDINGS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023

Business review
 
The 2022 to 2023 financial year was our first full year in our new Chippenham distribution centre. It has been both an exciting and challenging period for the business, culminating in the solidification of our growth platform from a physical, personnel, and structure perspective. Just like the previous few years, the macro environment has been turbulent, however, relatively speaking it has been a much more stable environment for our business. We saw supply chain issues ease, with both production returning to pre-Covid capacity and shipping rates returning to acceptable levels.  Despite some large domestic worries, including interest rate rises and cost of living problems, our offering has held firm and we have seen some encouraging signs of relative spending ‘normality’ returning. This year has been a foundational year that will allow us to capitalise on all the opportunities we see in the market.
    
Turnover: Compared to the prior year, turnover increased by 33.23% and this was a sizeable increase on 2022.
Gross Profit: The Gross Profit Margin of 23.95% showed a decrease against the previous year of 32.81%.
Net Profit: The Net Profit Margin of -4.90% showed a decrease against the previous year of 11.15%. 
It is pleasing to see a sizeable increase in our turnover, and it was expected that profits would be greatly reduced due to fixed overhead commitments we made for future expansion. The turnover increase reflects some of the work we have been doing coming to fruition, however, we believe the fruits of much of this work will be reflected in the following months and years. We are very proud of our organic growth and this year it is pleasing to see that despite huge investments and increases in costs, we have managed to maintain acceptable business finances. We expect to see our top-line turnover increasing and fixed overheads staying stable, resulting in a return to healthy profitability in 2023/24. 
 
Other developments include:
• Delivery Cut-Off Point: In 2022/2023 we moved our next-day delivery cut-off point back from 1 pm to 8 pm. As a customer-centric company, we pride ourselves on our best-in-class customer experience. Part of this best-in-class experience is convenience for our customers. We are proud that a customer is now able to order up to 8 pm and receive their order the next day. As far as we are aware, this is the latest cut-off for bulky, multi-box furniture products. This cut-off time development is also an embodiment of our determination to push the boundaries where we can and our team's ability to deliver.
• Growth In the US: We launched in the US at the start of our financial year and have seen some sizeable growth over the last 12 months. This has resulted in ~10% of our revenue coming from the US and thus our revenue composition mix diversifying. Despite the risks involved with operating in a different geography, our strategic approach has mitigated the potential downside and we have been able to capitalise on the market opportunity. We will continue to grow these overseas sales, but maintain a cautious approach and not overexpose our US position. 
• Sustainability: We made some concrete progress on sustainability in the period. We set out some targets at the start of this year and we are in a good position to hit these targets. We are proud to now be FSC-certified, be a carbon-positive company and have products made of recycled plastic in our catalogue. We are poised to transition all of our packaging to eco packaging, having completed a thorough scoping exercise throughout the year. 
• Products: We did not develop our product range as quickly as we would have liked in this period and there were a few delays with our very short timelines. However, a lot of the work has been completed and we will benefit from new ranges in the following periods.
• People: We are proud of the culture we have created at FurnitureboxUK and believe this to be a key pillar for success. This year, we have made multiple improvements to employee welfare. Some of these improvements include increasing holiday days, reducing working hours and implementing new benefit schemes. 
 
Page 2

 
HONTAN HOLDINGS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023

• Operational solidification: We have smoothed out the distribution centre’s teething issues and now can increase our throughput by 3-4-fold. It has been pleasing to see all of our theory play out as we planned and it has resulted in a state-of-the-art distribution centre. 
• Investments in tech and marketplaces: We continue to invest heavily in our tech stack and personnel to aid our teams and ensure efficiency as we grow. A large emphasis has been placed on data and integrations which is allowing us to report more effectively on performance.
• Investments in customers: We continue to make improvements in our service to customers. Some notable changes this year include a sizeable increase in opening times on weekdays and weekends, additional means of contact and a large reduction in response time. We also rebranded our Customer Service team to a Customer Experience team; this rebrand better articulates what the team’s purpose is. 

Future developments

Our core growth recipe has not changed, but our ability to capitalise on this recipe looks very promising going into the next financial period. We have substantially diversified our revenue composition, have a fast-growing product range, and a team growing in experience.
These areas, combined with our best-in-class customer-centric approach and distribution centre efficiency/capacity, should mean we see our recipe flywheel turn a lot faster than in previous years. 
Early trading indicates a pleasing turnover increase, despite some market sounds not being too positive. Operating at these higher turnover levels, we are positive about our ability to drive high profitable returns.  
We see huge opportunities in the market and have faith in our core recipe. Our opportunities and focus largely remain the same, these include:
• USA expansion: Expanding our product range, stock availability, promotional outreach, channel exposure, and current personnel resourcing.
 
• Product: Our product team will be bolstered by a new Head of Product with wide-ranging furniture experience. This will give our teams greater direction and aid the existing product range development currently happening.
• Sustainability: Our main sustainability focus this year will be following through with the packaging groundwork already completed. This will involve a line-wide move to sustainable packaging for our products. 
• People: We will be completing an assessment of personnel expertise required in relation to business needs. To charge our growth, we recognise that we may need to expand organisational structures to pass on responsibilities currently burdened with directors. 
• Brand: We have made some small gains in this area however, we recognise there is a long way to go to establish our brand. We will be further investing in our marketing team and creating a strategy to make gains in 2023 / 2024. 
• Reporting: We recognise that correct reporting is a vital catalyst for success. We will look to implement a new reporting platform that will be accessible for all teams. This will aid with decision-making and analysis throughout the company.  

Page 3

 
HONTAN HOLDINGS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023

Operational risk
 
• Quality of Service
Following a consolidation year in our new distribution centre and all operational teams settling into their new work locations, we have seen the quality of service go from strength to strength. Continual improvement and a desire to do better have driven these positive changes. Over the next year, we will need to ensure that this fundamental area is not degraded as we expand. 
• The Market Place
We can now talk about the Market Place in three geographies, with the inclusion of the US. We have spread our revenue risk this year, which means we are able to cope well with market fluctuations. Although the market indicators are not suggestive of a buoyant growth climate, there are signs of relative stability, and we are confident our model can continue to grow in this climate. 
• Quality of Staff
Our employee turnover level remains very low, and we have seen minimal team departures this year. We see a high level of employee engagement and despite some skill progression needed in some areas, we are assured in the trajectory the team is going. As well as bringing in expertise, we will also be looking to continue training and progressing the careers of all existing employees. We have seen the benefit of having a dedicated, loyal and hard-working team, and we will try to retain this at all costs.  

Financial key performance indicators
 
• Sales Growth: 33.23% (2022: 1.97%)
• Gross Profit Margin: 23.95% (2022: 32.81%)
• Operating Profit Margin: -3.06% (2022: 13.58%) 
• Net Current Assets £2,529,721 (2022: £2,542,728)
• Debtor days: 62 (2022: 66)
• Credito days: 76 (2022: 141)
• Current ratio: 1.75 (2022: 1.62) 
• Cash ratio: 0.10 (2022: 0.21)
• Earnings per share: -£93.75 (2022: £160.05)


This report was approved by the board on 31 July 2024 and signed on its behalf.



................................................
Montague George
Secretary

Page 4

 
HONTAN HOLDINGS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2023

The Directors present their report and the financial statements for the year ended 31 July 2023.

Directors' responsibilities statement

The Directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the Directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

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

Results and dividends

The loss for the year, after taxation, amounted to £1,040,621 (2022 - profit £1,776,596).

The directors have paid a final dividend of £150,000 (2022 - £280,000).

Directors

The Directors who served during the year were:

Montague George 
Daniel Beckles 

Future developments

The Group continues to trade successfully with no material future developments.

Page 5

 
HONTAN HOLDINGS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023

Disclosure of information to auditors

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

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

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

The auditorsClifford Fry & Co LLP (Statutory auditors)will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 31 July 2024 and signed on its behalf.
 





................................................
Montague George
Secretary

Page 6

 
HONTAN HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HONTAN HOLDINGS LIMITED
 

Opinion


We have audited the financial statements of Hontan Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 July 2023, which comprise the Consolidated statement of income and retained earnings, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 July 2023 and of the Group's loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


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


Conclusions relating to going concern


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


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the 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 Directors with respect to going concern are described in the relevant sections of this report.


Page 7

 
HONTAN HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HONTAN HOLDINGS LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The Directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


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


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of Directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Page 8

 
HONTAN HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HONTAN HOLDINGS LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 5, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the Directors are responsible for assessing the Group's and 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 Directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 9

 
HONTAN HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HONTAN HOLDINGS LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

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


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

We gained an understanding of the legal and regulatory framework applicable to the Group, including obtaining details on how they identify and comply with laws and regulations and whether they were aware of any non-compliance, how they detect and respond to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud, and finally the controls they have in order to mitigate risks of fraud or non-compliance with laws and regulations.
We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, intentional misrepresentations.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: revenue and profit recognition.
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to,  the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud, and enquiries with management.
As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.


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


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


Page 10

 
HONTAN HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HONTAN HOLDINGS LIMITED (CONTINUED)


Use of our report
 

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





Simon Allenby FCA (Senior statutory auditor)
  
for and on behalf of
Clifford Fry & Co LLP (Statutory auditors)
 
St Mary's House
Netherhampton
Salisbury
Wiltshire
SP2 8PU

31 July 2024
Page 11

 
HONTAN HOLDINGS LIMITED
 
 
CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 JULY 2023

Year ended
31 July
Period ended
31 July
2023
2022
Note
£
£

  

Turnover
 4 
21,233,813
15,937,744

Cost of sales
  
(16,147,567)
(10,708,987)

Gross profit
  
5,086,246
5,228,757

Distribution costs
  
(1,408,601)
(1,037,237)

Administrative expenses
  
(4,329,893)
(2,027,030)

Other operating income
 6 
1,597
-

(Loss)/gain from changes in fair value of foreign exchange forward contracts
  
(455,546)
230,207

Operating (loss)/profit
 7 
(1,106,197)
2,394,697

Interest receivable and similar income
 11 
7,014
222

Interest payable and similar expenses
 12 
(76,548)
(44,304)

(Loss)/profit before tax
  
(1,175,731)
2,350,615

Tax on (loss)/profit
 13 
135,110
(574,019)

(Loss)/profit after tax
  
(1,040,621)
1,776,596

  

  

Retained earnings at the beginning of the year/peiod
  
5,447,172
3,950,576

(Loss)/profit for the year attributable to the owners of the parent
  
(1,040,621)
1,776,596

Dividends declared and paid
 14 
(150,000)
(280,000)

Retained earnings at the end of the year
  
4,256,551
5,447,172

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

The notes on pages 20 to 40 form part of these financial statements.

Page 12

 
HONTAN HOLDINGS LIMITED
REGISTERED NUMBER: 12813623

CONSOLIDATED BALANCE SHEET
AS AT 31 JULY 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 15 
134,818
124,078

Tangible assets
 16 
3,204,233
3,410,829

  
3,339,051
3,534,907

Current assets
  

Stocks
 18 
1,962,458
2,933,755

Debtors: amounts falling due within one year
 19 
3,586,594
2,869,449

Cash at bank and in hand
 20 
340,168
868,976

  
5,889,220
6,672,180

Creditors: amounts falling due within one year
 21 
(3,359,499)
(4,129,452)

Net current assets
  
 
 
2,529,721
 
 
2,542,728

Total assets less current liabilities
  
5,868,772
6,077,635

Creditors: amounts falling due after more than one year
 22 
(1,124,679)
(7,811)

Provisions for liabilities
  

Deferred taxation
 25 
(476,442)
(611,552)

  
 
 
(476,442)
 
 
(611,552)

Net assets
  
4,267,651
5,458,272


Capital and reserves
  

Called up share capital 
 26 
11,100
11,100

Profit and loss account
 27 
4,256,551
5,447,172

  
4,267,651
5,458,272


Page 13

 
HONTAN HOLDINGS LIMITED
REGISTERED NUMBER: 12813623
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 JULY 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 31 July 2024.




................................................
Montague George
................................................
Daniel Beckles
Director
Director

The notes on pages 20 to 40 form part of these financial statements.

Page 14

 
HONTAN HOLDINGS LIMITED
REGISTERED NUMBER: 12813623

COMPANY BALANCE SHEET
AS AT 31 JULY 2023

2023
2022
Note
£
£

Fixed assets
  

Investments
 17 
11,000
11,000

  
11,000
11,000

Current assets
  

Debtors: amounts falling due within one year
 19 
2,044,590
1,639,590

Cash at bank and in hand
 20 
609
410,690

  
2,045,199
2,050,280

Creditors: amounts falling due within one year
 21 
(137,460)
(132,450)

Net current assets
  
 
 
1,907,739
 
 
1,917,830

Total assets less current liabilities
  
1,918,739
1,928,830

  

  

Net assets
  
1,918,739
1,928,830


Capital and reserves
  

Called up share capital 
 26 
11,100
11,100

Profit and loss account brought forward
  
1,917,730
1,200,758

Profit for the year/period
  
139,909
996,972

Other changes in the profit and loss account

  

(150,000)
(280,000)

Profit and loss account carried forward
  
1,907,639
1,917,730

  
1,918,739
1,928,830


Page 15

 
HONTAN HOLDINGS LIMITED
REGISTERED NUMBER: 12813623
    
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 JULY 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 31 July 2024.




................................................
Montague George
................................................
Daniel Beckles
Director
Director

The notes on pages 20 to 40 form part of these financial statements.

Page 16

 
HONTAN HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2023

2023
2022
£
£

Cash flows from operating activities

(Loss)/profit for the financial year/period
(1,040,621)
1,776,596

Adjustments for:

Amortisation of intangible assets
14,312
31,020

Depreciation of tangible assets
655,307
113,467

Loss on disposal of tangible assets
6,577
-

Interest paid
76,548
44,304

Interest received
(7,014)
(222)

Taxation charge
(135,110)
574,019

Decrease/(increase) in stocks
971,297
(1,377,783)

(Increase)/decrease in debtors
(940,546)
1,202,539

(Decrease)/increase in creditors
(1,422,106)
1,978,996

Net fair value losses/(gains) recognised in P&L
455,546
(230,207)

Corporation tax (paid)
(6,806)
(586,762)

Net cash generated from operating activities

(1,372,616)
3,525,967


Cash flows from investing activities

Purchase of intangible fixed assets
(25,052)
(155,098)

Purchase of tangible fixed assets
(493,071)
(3,326,752)

Sale of tangible fixed assets
37,783
-

Interest received
7,014
222

HP interest paid
(76,548)
(1,318)

Net cash from investing activities

(549,874)
(3,482,946)
Page 17

 
HONTAN HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023


2023
2022

£
£



Cash flows from financing activities

Repayment of/new finance leases
1,543,682
(9,494)

Dividends paid
(150,000)
(280,000)

Interest paid
-
(42,986)

Net cash used in financing activities
1,393,682
(332,480)

Net (decrease) in cash and cash equivalents
(528,808)
(289,459)

Cash and cash equivalents at beginning of year/period
868,976
1,158,435

Cash and cash equivalents at the end of year/period
340,168
868,976


Cash and cash equivalents at the end of year/period comprise:

Cash at bank and in hand
340,168
868,976

340,168
868,976


The notes on pages 20 to 40 form part of these financial statements.

Page 18

 
HONTAN HOLDINGS LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 JULY 2023




At 1 August 2022
Cash flows
At 31 July 2023
£

£

£

Cash at bank and in hand

868,976

(528,808)

340,168

Debt due within 1 year

(171,440)

4,398

(167,042)

Finance leases

(14,506)

(1,543,682)

(1,558,188)

Liquid investments

230,207

(230,207)

-


913,237
(2,298,299)
(1,385,062)

The notes on pages 20 to 40 form part of these financial statements.

Page 19

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

1.


General information

The Company is a private company limited by share capital, registered and incorporated in England and Wales. The registered office is St Mary's House, Netherhampton, Salisbury, Wiltshire, SP2 8PU. The Company's principal place of business is Unit 6, St Modwen's Park, Chippenham, SN15 5BD. The principal activity of the Group is that of online retail.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of income and retained earnings in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of income and retained earnings from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 December 2014.

 
2.3

Change in length of reporting period

The reporting period has been changed from 11 months ending 31 July 2022 to 12 months ending 31 July 2023 in order that the Company's reporting period is co-terminous with its subsidiary, and comparative amounts are therefore not entirely comparable.

Page 20

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

 
2.5

Revenue

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

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.6

Operating leases: the Group as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 21

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

2.Accounting policies (continued)

 
2.7

Leased assets: the Group as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.8

Interest income

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

 
2.9

Finance costs

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

 
2.10

Pensions

Defined contribution pension plan

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

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

Page 22

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

2.Accounting policies (continued)

 
2.11

Current and deferred taxation

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

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

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

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

 
2.12

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Goodwill
-
5
years
Other intangible fixed assets
-
5
years

 
2.13

Tangible fixed assets

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

Page 23

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

2.Accounting policies (continued)


2.13
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance and straight line basis.

Depreciation is provided on the following basis:

Warehouse racking & storage
-
10 years straight line
Fixtures, fittings & equipment
-
15% reducing balance
Warehouse equipment & machinery
-
5 years straight line

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

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

 
2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Consolidated statement of income and retained earnings for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 
2.15

Stocks

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

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

 
2.16

Debtors

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

Page 24

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

2.Accounting policies (continued)

 
2.17

Cash and cash equivalents

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

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

 
2.18

Creditors

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

 
2.19

Provisions for liabilities

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

Page 25

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

2.Accounting policies (continued)

 
2.20

Financial instruments

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

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

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

Financial liabilities

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

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

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

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

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Page 26

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

2.Accounting policies (continued)

 
2.21

Dividends

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


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The Directors do not believe that the financial statements are materially impacted by their use of judgements.


4.


Turnover

An analysis of turnover by class of business is as follows:


Year ended
31 July
Period ended
31 July
2023
2022
£
£

Retail sales
21,233,813
15,937,744

21,233,813
15,937,744


Analysis of turnover by country of destination:

Year ended
31 July
Period ended
31 July
2023
2022
£
£

United Kingdom
18,739,609
15,256,291

Europe
349,930
681,453

Rest of the world
2,144,274
-

21,233,813
15,937,744



5.


Foreign currency transactions

Exchange differences recognised in profit and loss for the year, except for those arising on financial instruments measured at fair value through profit and loss, amounted to losses of £411,292 (2022 - gains of £279,917).

Page 27

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

6.


Other operating income

Year ended
31 July
Period ended
31 July
2023
2022
£
£

Insurance claims receivable
1,411
-

Sundry income
186
-

1,597
-



7.


Operating (loss)/profit

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

Year ended
31 July
Period ended
31 July
2023
2022
£
£

Exchange differences
411,292
(279,917)


8.


Auditors' remuneration

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


Year ended
31 July
Period ended
31 July
2023
2022
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
3,960
1,500

Page 28

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

9.


Employees

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


Group
Group
2023
2022
£
£


Wages and salaries
1,700,285
1,133,163

Social security costs
158,189
106,194

Cost of defined contribution scheme
34,379
24,580

1,892,853
1,263,937

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


      Year ended
        31 July
     Period ended
         31 July
        2023
        2022
            No.
            No.







Employees
58
34


10.


Directors' remuneration

Year ended
31 July
Period ended
31 July
2023
2022
£
£

Directors' emoluments
21,037
19,342

21,037
19,342


During the year retirement benefits were accruing to no Directors (2022 - 2) in respect of defined contribution pension schemes.

Page 29

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

11.


Interest receivable

Year ended
31 July
Period ended
31 July
2023
2022
£
£


Other interest receivable
7,014
222

7,014
222


12.


Interest payable and similar expenses

Year ended
31 July
Period ended
31 July
2023
2022
£
£


Other loan interest payable
-
42,757

Finance leases and hire purchase contracts
76,548
1,318

Other interest payable
-
229

76,548
44,304


13.


Taxation


Year ended
31 July
Period ended
31 July
2023
2022
£
£



Deferred tax


Origination and reversal of timing differences
(135,110)
574,019


Tax on (loss)/profit
(135,110)
574,019
Page 30

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
 
13.Taxation (continued)


Factors affecting tax charge for the year/period

The tax assessed for the year/period is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 19% to 31 March 2023 and 25% from 1 April 2023 (2022 - 19%). The differences are explained below:

Year ended
31 July
Period ended
31 July
2023
2022
£
£


(Loss)/profit on ordinary activities before tax
(1,175,731)
2,350,615


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% to 31 March 2023 and 25% from 1 April 2023 (2022 - 19%)
(246,968)
446,617

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
2,698
659

Capital allowances for year/period in excess of depreciation
24,768
(701,691)

Other timing differences leading to an increase (decrease) in taxation
(135,111)
574,019

Capital gains
459
-

Unrelieved tax losses carried forward
219,044
254,415

Total tax charge for the year/period
(135,110)
574,019


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


14.


Dividends

Year ended 31 July 2023
Period ended 31 July 2022
£
£


Dividends on Ordinary A shares
75,000
140,000


Dividends on Ordinary B shares
75,000
140,000

150,000
280,000

Page 31

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

15.


Intangible assets

Group and Company





Other intangible assets
Goodwill
Total

£
£
£



Cost


At 1 August 2022
158,347
10,000
168,347


Additions
25,052
-
25,052



At 31 July 2023

183,399
10,000
193,399



Amortisation


At 1 August 2022
34,269
10,000
44,269


Charge for the year on owned assets
14,312
-
14,312



At 31 July 2023

48,581
10,000
58,581



Net book value



At 31 July 2023
134,818
-
134,818



At 31 July 2022
124,078
-
124,078



Page 32

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

16.


Tangible fixed assets

Group






Warehouse equipment and machinery
Fixtures, fittings & equipment
Warehouse racking and storage
Total

£
£
£
£



Cost or valuation


At 1 August 2022
2,780,079
122,074
684,215
3,586,368


Additions
409,372
83,699
-
493,071


Disposals
-
-
(57,230)
(57,230)



At 31 July 2023

3,189,451
205,773
626,985
4,022,209



Depreciation


At 1 August 2022
66,004
49,048
60,487
175,539


Charge for the year on owned assets
140,089
18,103
2,699
160,891


Charge for the year on financed assets
439,416
-
55,000
494,416


Disposals
-
-
(12,870)
(12,870)



At 31 July 2023

645,509
67,151
105,316
817,976



Net book value



At 31 July 2023
2,543,942
138,622
521,669
3,204,233



At 31 July 2022
2,714,075
73,026
623,728
3,410,829

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Warehouse racking and storage
503,333
-

Warehouse equipment & machinery
1,906,084
18,243

2,409,417
18,243

Page 33

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

17.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 August 2022
11,000



At 31 July 2023
11,000





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

Monty Trading Limited
St Mary's House, Netherhampton, Salisbury, Wiltshire, SP2 8PU
Ordinary shares
100%

The aggregate of the share capital and reserves as at 31 July 2023 and the profit or loss for the year ended on that date for the subsidiary undertaking were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)

Monty Trading Limited
2,359,912
(1,030,530)


18.


Stocks

Group
Group
2023
2022
£
£

Finished goods and goods for resale
1,962,458
2,933,755

1,962,458
2,933,755


Page 34

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

19.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
1,163,354
1,022,394
-
-

Amounts owed by group undertakings
-
-
2,044,590
1,639,590

Other debtors
2,118,372
1,484,900
-
-

Prepayments and accrued income
304,868
131,948
-
-

Financial instruments
-
230,207
-
-

3,586,594
2,869,449
2,044,590
1,639,590



20.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
340,168
868,976
609
410,690

340,168
868,976
609
410,690


Page 35

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

21.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Trade creditors
1,277,320
3,463,468
-
-

Other taxation and social security
591,256
-
-
-

Obligations under finance lease and hire purchase contracts
433,509
6,695
-
-

Other creditors
390,983
328,337
129,900
129,900

Accruals and deferred income
441,092
330,952
7,560
2,550

Financial instruments
225,339
-
-
-

3,359,499
4,129,452
137,460
132,450



The following liabilities were secured:
Group
Group
2023
2022
£
£

Hire purchase contracts
433,509
6,695

433,509
6,695

Details of security provided:

The hire purchase contracts are secured over the assets concerned.

Page 36

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

22.


Creditors: Amounts falling due after more than one year

Group
Group
2023
2022
£
£

Net obligations under finance leases and hire purchase contracts
1,124,679
7,811

1,124,679
7,811



The following liabilities were secured:
Group
Group
2023
2022
£
£


Hire purchase contracts
1,124,679
7,811

1,124,679
7,811

Details of security provided:

The hire purchase contracts are secured over the assets concerned.




23.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2023
2022
£
£

Within one year
433,509
6,695

Between 1-5 years
1,124,679
7,811

1,558,188
14,506

Page 37

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

24.


Financial instruments

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Financial assets

Cash at bank and in hand
340,168
868,976
-
410,690

Derivative financial instruments measured at fair value through profit or loss
-
230,207
-
-

340,168
1,099,183
-
410,690


Financial liabilities

Derivative financial instruments measured at fair value through profit or loss
(225,339)
-
-
-


Financial assets measured at fair value through profit or loss comprise cash at bank and in hand and derivatives.


Derivative financial instruments measured at fair value through profit or loss comprise foreign exchange forward contracts.


The Group enters into foreign exchange forward contracts for its supplier purchases. At the year end an external valuation is obtained and contracts are adjusted to fair value. Fair value movements are recognised in the profit and loss account for the period.


25.


Deferred taxation


Group



2023


£






At beginning of period
(611,552)


Charged to profit or loss
135,110



At end of period
(476,442)

Group
Group
2023
2022
£
£

Accelerated capital allowances
(476,442)
(611,552)

(476,442)
(611,552)

Page 38

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

26.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



8,325 (2022 - 8,325) Ordinary A shares of £1 each
8,325
8,325
2,775 (2022 - 2,775) Ordinary B shares of £1 each
2,775
2,775

11,100

11,100



27.


Reserves

Profit and loss account

Includes all current and prior period profits and losses.


28.


Pension commitments

The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £34,379 (2022 - £24,580). Contributions totalling £7,630 (2022 - £5,088) were payable to the fund at the balance sheet date and are included in creditors.


29.


Commitments under operating leases

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


Group
Group
2023
2022
£
£

Not later than 1 year
835,065
30,579

Later than 1 year and not later than 5 years
745,049
17,142

Later than 5 years
668,647
-

2,248,761
47,721

Lease payments recognised in the year as an expense amounted to £727,488 (2022 - £108,081).


30.


Related party transactions

The Company received dividends of £150,000 (2022 - £1,000,000) from its subsidiary company Monty Trading Limited. At the end of the year the Company was owed £2,044,590 (2022 - £1,639,590) by Monty Trading Limited. 

Page 39

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

31.


Controlling party

The Company is controlled by the director, Montague George, by virtue of his shareholding, as described in the Directors' report.

Page 40