REGISTERED NUMBER: 10011832 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 March 2024 |
for |
HEWITSON GROUP LTD |
REGISTERED NUMBER: 10011832 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 March 2024 |
for |
HEWITSON GROUP LTD |
HEWITSON GROUP LTD (REGISTERED NUMBER: 10011832) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 March 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Consolidated Statement of Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
HEWITSON GROUP LTD |
Company Information |
for the Year Ended 31 March 2024 |
Directors: |
Registered office: |
Registered number: |
Senior statutory auditor: | Karl Gordon FCCA |
Auditors: |
Accountants and Statutory Auditor |
43 Coniscliffe Road |
Darlington |
Co. Durham |
DL3 7EH |
HEWITSON GROUP LTD (REGISTERED NUMBER: 10011832) |
Group Strategic Report |
for the Year Ended 31 March 2024 |
The directors present their strategic report of the company and the group for the year ended 31 March 2024. |
Review of business |
The group has continued to grow in a controlled manner and is performing in line with expectations with its profit levels in keeping with other similar businesses trading in the area. |
The group continues to strengthen its relationships with its clients and undertakes a great deal of repeat business, whilst developing working relationships with new customers too. |
The group has a sizeable amount of pipeline projects booked in for the upcoming year, whilst retaining capacity to undertake smaller short notice work when required. |
Throughout 2024 and 2025 the company will continue to reinvest profits into new plant and machinery to further develop operational capacity and ensure efficiencies in relation to CO2 emissions. |
The group has also invested heavily in training and developing its younger key staff to ensure skills and experience are retained in the business and continuation of high service levels will be maintained for generations to come. |
The company's key financial performance indicators for the year were: |
2024 | 2023 |
Turnover | £51.4m | £55.3m |
Profit before tax | £6.2m | £5.4m |
Cash at bank | £9.7m | £5.9m |
Shareholders funds | £19.8m | £16.4m |
Principal risks and uncertainties |
The two main risks to the business are economic risk and operational risk. |
The economic risk is the macroeconomic risk brought about by raising fuel and material costs, interest rates and potential bad debts. This risk is mitigated by having strong cash reserves and a policy of minimising borrowings. |
The operational risk is the increasing compliance which is increasing in the construction sector which is being mitigated by an emphasis of staff training and development. |
On behalf of the board: |
HEWITSON GROUP LTD (REGISTERED NUMBER: 10011832) |
Report of the Directors |
for the Year Ended 31 March 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 31 March 2024. |
Principal activities |
The principal activities of the group in the year under review were those of construction, groundworks, plant hire, haulage, plant sales and property development. |
Dividends |
The total distribution of dividends for the period ended 31 March 2023 will be £55,000 (30 November 2021: £110,000). |
Directors |
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report. |
Streamlined energy and carbon reporting |
In accordance with the requirements of The Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, the following information is presented in relation to greenhouse gas emissions: |
Energy consumption | kWh |
Aggregate energy consumption in the year | 3,520,157 |
Emission of CO2 equivalent |
Metric Tonnes |
Scope 1 - direct emissions |
- Gas consumption | - |
- Fuel consumed for internal transport | 8,734 |
Scope 2 - indirect emissions |
- Electricity consumed | 16 |
Scope 3 - other indirect emission |
- Fuel consumed for external transport | - |
Total gross emission | 8,750 |
Intensity ratio |
Tonnes of CO2e per £1m turnover | 170 |
Quantification and reporting methodology |
The company report scope 1 emissions using recorded quantities of deliveries during the period, converted to CO2e using the UK Government conversion Factors for company Reporting. Scope 2 emissions are provided by suppliers. |
Intensity measurement |
The intensity measurement ratio decided upon is gross emissions in metric tonnes of CO2e per £1m turnover. |
Measures taken to improve energy efficiency |
The company implements efficiencies and works on a basis of continual improvement as it seeks to reduce CO2 emissions and minimise waste. Examples of this include reducing empty transport loads, upgrading to the most modern energy efficient plant and machinery and planning site operations to optimise machine hours. |
HEWITSON GROUP LTD (REGISTERED NUMBER: 10011832) |
Report of the Directors |
for the Year Ended 31 March 2024 |
Statement of directors' responsibilities |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They 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. |
Statement as to disclosure of information to auditors |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
Auditors |
The auditors, Mitchell Gordon LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
On behalf of the board: |
Report of the Independent Auditors to the Members of |
Hewitson Group Ltd |
Opinion |
We have audited the financial statements of Hewitson Group Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 March 2024 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the 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 and 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Hewitson Group Ltd |
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 Report of the Directors. |
We have nothing to report in respect of the following matters where 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. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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. |
Report of the Independent Auditors to the Members of |
Hewitson Group Ltd |
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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- | the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- | we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sectors in which the company operates; |
- | we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection compliance, anti-bribery, employment, environmental and health and safety legislation; |
- | we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- | identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
These procedures did not identify any potentially material actual or suspected non-compliance. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- | making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- | considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- | performed analytical procedures to identify any unusual or unexpected relationships; |
- | reviewed material journal entries to identify unusual transactions or posting by unusual users; |
- | assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
- | investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- | agreeing financial statement disclosures to underlying supporting documentation; |
- | reading the minutes of meetings of those charged with governance; |
- | enquiring of management as to actual and potential litigation and claims; and |
- | reviewing correspondence with HMRC and the company's legal advisors. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. |
In addition, as with any audit, there remains a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance of fraud and cannot be expected to detect non-compliance with all laws & regulations. |
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 Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Hewitson Group Ltd |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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. |
for and on behalf of |
Accountants and Statutory Auditor |
43 Coniscliffe Road |
Darlington |
Co. Durham |
DL3 7EH |
HEWITSON GROUP LTD (REGISTERED NUMBER: 10011832) |
Consolidated |
Statement of Comprehensive |
Income |
for the Year Ended 31 March 2024 |
Period |
1/12/21 |
Year Ended | to |
31/3/24 | 31/3/23 |
Notes | £ | £ |
Turnover | 51,448,955 | 55,274,284 |
Cost of sales | 40,726,517 | 45,288,031 |
Gross profit | 10,722,438 | 9,986,253 |
Administrative expenses | 4,024,780 | 4,125,773 |
6,697,658 | 5,860,480 |
Other operating income | 193,665 | 128,823 |
Operating profit | 4 | 6,891,323 | 5,989,303 |
Interest receivable and similar income | 316,995 | 49,037 |
7,208,318 | 6,038,340 |
Interest payable and similar expenses | 5 | 1,030,000 | 681,050 |
Profit before taxation | 6,178,318 | 5,357,290 |
Tax on profit | 6 | 2,810,031 | 555,761 |
Profit for the financial year |
Other comprehensive income | - | - |
Total comprehensive income for the year | 3,368,287 | 4,801,529 |
Profit attributable to: |
Owners of the parent | 3,368,287 | 4,801,529 |
Total comprehensive income attributable to: |
Owners of the parent | 3,368,287 | 4,801,529 |
HEWITSON GROUP LTD (REGISTERED NUMBER: 10011832) |
Consolidated Balance Sheet |
31 March 2024 |
31/3/24 | 31/3/23 |
Notes | £ | £ | £ | £ |
Fixed assets |
Tangible assets | 9 | 25,076,777 | 23,286,544 |
Investments | 10 | - | - |
25,076,777 | 23,286,544 |
Current assets |
Stocks | 11 | 3,171,523 | 2,428,723 |
Debtors | 12 | 8,716,329 | 8,963,682 |
Cash at bank | 9,675,631 | 5,945,828 |
21,563,483 | 17,338,233 |
Creditors |
Amounts falling due within one year | 13 | 13,772,254 | 12,242,866 |
Net current assets | 7,791,229 | 5,095,367 |
Total assets less current liabilities | 32,868,006 | 28,381,911 |
Creditors |
Amounts falling due after more than one year |
14 |
(9,132,702 |
) |
(10,302,300 |
) |
Provisions for liabilities | 17 | (3,973,176 | ) | (1,630,770 | ) |
Net assets | 19,762,128 | 16,448,841 |
Capital and reserves |
Called up share capital | 18 | 3 | 3 |
Retained earnings | 19 | 19,762,125 | 16,448,838 |
Shareholders' funds | 19,762,128 | 16,448,841 |
The financial statements were approved by the Board of Directors and authorised for issue on 16 August 2024 and were signed on its behalf by: |
M E Hewitson - Director |
HEWITSON GROUP LTD (REGISTERED NUMBER: 10011832) |
Company Balance Sheet |
31 March 2024 |
31/3/24 | 31/3/23 |
Notes | £ | £ | £ | £ |
Fixed assets |
Tangible assets | 9 |
Investments | 10 |
Current assets |
Debtors | 12 |
Cash at bank |
Creditors |
Amounts falling due within one year | 13 |
Net current assets |
Total assets less current liabilities |
Capital and reserves |
Called up share capital | 18 |
Retained earnings | 19 |
Shareholders' funds |
Company's profit for the financial year | 4,045,354 | 2,483,808 |
The financial statements were approved by the Board of Directors and authorised for issue on |
HEWITSON GROUP LTD (REGISTERED NUMBER: 10011832) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 March 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 December 2021 | 3 | 11,702,309 | 11,702,312 |
Changes in equity |
Dividends | - | (55,000 | ) | (55,000 | ) |
Total comprehensive income | - | 4,801,529 | 4,801,529 |
Balance at 31 March 2023 | 3 | 16,448,838 | 16,448,841 |
Changes in equity |
Dividends | - | (55,000 | ) | (55,000 | ) |
Total comprehensive income | - | 3,368,287 | 3,368,287 |
Balance at 31 March 2024 | 3 | 19,762,125 | 19,762,128 |
HEWITSON GROUP LTD (REGISTERED NUMBER: 10011832) |
Company Statement of Changes in Equity |
for the Year Ended 31 March 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 December 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2023 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2024 |
HEWITSON GROUP LTD (REGISTERED NUMBER: 10011832) |
Consolidated Cash Flow Statement |
for the Year Ended 31 March 2024 |
Period |
1/12/21 |
Year Ended | to |
31/3/24 | 31/3/23 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 10,596,507 | 8,498,308 |
Interest paid | (502 | ) | (65,302 | ) |
Interest element of hire purchase payments paid |
(1,029,498 |
) |
(615,748 |
) |
Tax paid | (404,059 | ) | 48,448 |
Net cash from operating activities | 9,162,448 | 7,865,706 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (3,827,408 | ) | (2,201,118 | ) |
Sale of tangible fixed assets | 5,280,698 | 4,541,256 |
Fixed asset adjustment | (6,523 | ) | - |
Interest received | 316,995 | 49,037 |
Net cash from investing activities | 1,763,762 | 2,389,175 |
Cash flows from financing activities |
Loan repayments in year | - | (1,350,000 | ) |
Capital repayments in year | (7,102,355 | ) | (7,786,153 | ) |
Movement in other loans | (39,052 | ) | (61,675 | ) |
Equity dividends paid | (55,000 | ) | (55,000 | ) |
Net cash from financing activities | (7,196,407 | ) | (9,252,828 | ) |
Increase in cash and cash equivalents | 3,729,803 | 1,002,053 |
Cash and cash equivalents at beginning of year |
2 |
5,945,828 |
4,943,775 |
Cash and cash equivalents at end of year | 2 | 9,675,631 | 5,945,828 |
HEWITSON GROUP LTD (REGISTERED NUMBER: 10011832) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 March 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Period |
1/12/21 |
Year Ended | to |
31/3/24 | 31/3/23 |
£ | £ |
Profit before taxation | 6,178,318 | 5,357,290 |
Depreciation charges | 4,612,554 | 4,865,749 |
Profit on disposal of fixed assets | (770,130 | ) | (1,075,219 | ) |
Finance costs | 1,030,000 | 681,050 |
Finance income | (316,995 | ) | (49,037 | ) |
10,733,747 | 9,779,833 |
Increase in stocks | (742,800 | ) | (495,105 | ) |
Decrease/(increase) in trade and other debtors | 289,440 | (2,526,650 | ) |
Increase in trade and other creditors | 316,120 | 1,740,230 |
Cash generated from operations | 10,596,507 | 8,498,308 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 March 2024 |
31/3/24 | 1/4/23 |
£ | £ |
Cash and cash equivalents | 9,675,631 | 5,945,828 |
Period ended 31 March 2023 |
31/3/23 | 1/12/21 |
£ | £ |
Cash and cash equivalents | 5,945,828 | 4,943,775 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
Other |
non-cash |
At 1/4/23 | Cash flow | changes | At 31/3/24 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 5,945,828 | 3,729,803 | 9,675,631 |
5,945,828 | 3,729,803 | 9,675,631 |
Debt |
Finance leases | (15,580,822 | ) | 7,102,355 | - | (15,557,891 | ) |
(15,580,822 | ) | 7,102,355 | - | (15,557,891 | ) |
Total | (9,634,994 | ) | 10,832,158 | - | (5,882,260 | ) |
HEWITSON GROUP LTD (REGISTERED NUMBER: 10011832) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 March 2024 |
1. | STATUTORY INFORMATION |
Hewitson Group Ltd is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
The company traded for a longer period in the previous period due to a change in accounting period. Therefore the comparative amounts in the financial statements (including related notes) are not entirely comparable. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared on the going concern basis of accounting. |
Basis of consolidation |
The consolidated financial statements are prepared in accordance with the Group accounting policies. All of the company's subsidiaries are included in the consolidated financial statements as all 100% owned by the parent company. All intercompany transactions have been excluded from the consolidated financial statements. |
Critical accounting 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. |
- | Construction contracts |
These policies require forecasts to be made on the outcomes of construction contracts which require | assessments and judgements to be made on the recoverability of pre-contract costs, changes in the scope of | work, contract programmes, defect liabilities and changes in costs. |
The Company's revenue recognition policy is set out within the accounting policy for Turnover and is central | to how the company values the work it has carried out in each financial year. |
HEWITSON GROUP LTD (REGISTERED NUMBER: 10011832) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Income is being recognised according to the stage of completion of work done. In the case of groundwork income this is determined using quantity surveying methods. |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
The policies adopted for the recognition of turnover are as follows: |
- | Construction contracts |
When the outcome of individual contracts can be estimated reliably, contract revenue and contract costs are | recognised as revenue and expenses by reference to the stage of completion at the reporting date. |
- | Sale of goods |
Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods | have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the | economic benefits associated with the transaction will flow to the company and the costs incurred or to be | incurred in respect of the transaction can be measured reliably. This is usually on dispatch of the goods or on | completion of contracts. |
- | Rendering of services |
When the outcome of a transaction can be estimated reliably. Turnover from the hire of plant is recognised | by reference to the period of hire at the balance sheet date. In the case of groundwork income this is | determined using quantity surveying methods. |
Tangible fixed assets |
Plant and machinery | - |
Motor vehicles | - |
Computer equipment | - |
Stocks |
Work in progress for construction contracts is valued using the percentage completion method. |
Non-contracted work in progress is valued using the lower of cost and net realisable value. |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
HEWITSON GROUP LTD (REGISTERED NUMBER: 10011832) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
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. |
Basic financial liabilities, including loans from fellow group companies are initially recognised at transaction price unless the arrangement constitutes a financial 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 of 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. |
Other financial assets |
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment. |
Impairment of financial assets |
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date. |
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit and loss. |
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss. |
Derecognition of financial assets |
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. |
Classification of financial liabilities |
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
HEWITSON GROUP LTD (REGISTERED NUMBER: 10011832) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Investments in subsidiaries |
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit and loss. |
3. | EMPLOYEES AND DIRECTORS |
Period |
1/12/21 |
Year Ended | to |
31/3/24 | 31/3/23 |
£ | £ |
Wages and salaries | 8,785,356 | 10,120,174 |
Social security costs | 107,946 | 98,643 |
Other pension costs | 127,459 | 191,207 |
9,020,761 | 10,410,024 |
HEWITSON GROUP LTD (REGISTERED NUMBER: 10011832) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
3. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
Period |
1/12/21 |
Year Ended | to |
31/3/24 | 31/3/23 |
Employees | 185 | 168 |
Directors | 4 | 4 |
Year Ended 31/3/24 |
Period 1/12/21 to 31/3/23 |
£ | £ |
Directors' remuneration inc. bonuses | 353,309 | 252,364 |
Directors' pension contributions to money purchase schemes | 77,280 | 100,863 |
The number of directors to whom retirement benefits were accruing was as follows |
Money purchase schemes | 4 | 4 |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
Period |
1/12/21 |
Year Ended | to |
31/3/24 | 31/3/23 |
£ | £ |
Hire of plant and machinery | 3,485,519 | 4,618,522 |
Depreciation - owned assets | 1,400,950 | 788,867 |
Depreciation - assets on hire purchase contracts | 3,211,604 | 4,076,882 |
Profit on disposal of fixed assets | (770,130 | ) | (1,075,219 | ) |
Auditors' remuneration | 21,757 | 39,013 |
Foreign exchange differences | 11,612 | 11,679 |
In accordance with s494 of the Companies Act 2006, total remuneration received by the auditor is analysed as follows: |
Year Ended 31/3/24 |
Period 1/12/21 to 31/3/23 |
£ | £ |
Auditing of the financial statements | 21,757 | 39,013 |
Other services | 11,016 | 22,747 |
32,773 | 61,760 |
HEWITSON GROUP LTD (REGISTERED NUMBER: 10011832) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period |
1/12/21 |
Year Ended | to |
31/3/24 | 31/3/23 |
£ | £ |
Bank interest | 486 | 522 |
Bank loan interest | 16 | 64,780 |
Hire purchase | 1,029,498 | 615,748 |
1,030,000 | 681,050 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
Period |
1/12/21 |
Year Ended | to |
31/3/24 | 31/3/23 |
£ | £ |
Current tax: |
UK corporation tax | 467,641 | 180,706 |
Overprovision in prior year | (16 | ) | - |
Total current tax | 467,625 | 180,706 |
Deferred tax | 2,342,406 | 375,055 |
Tax on profit | 2,810,031 | 555,761 |
HEWITSON GROUP LTD (REGISTERED NUMBER: 10011832) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
6. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
Period |
1/12/21 |
Year Ended | to |
31/3/24 | 31/3/23 |
£ | £ |
Profit before tax | 6,178,318 | 5,357,290 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 19 %) |
1,544,580 |
1,017,885 |
Effects of: |
Expenses not deductible for tax purposes | 8,144 | 5,892 |
Income not taxable for tax purposes | (193,517 | ) | (205,482 | ) |
Capital allowances in excess of depreciation | (683,547 | ) | (704,370 | ) |
Utilisation of tax losses | (259,779 | ) | (164,161 | ) |
Adjustments to tax charge in respect of previous periods | (16 | ) | (13,389 | ) |
Gross gains | 51,760 | 46,881 |
Unutilised losses | - | 197,450 |
Accelerated capital allowances - deferred tax | 873,881 | 346,493 |
Change in rate in taxation - deferred tax | 1,468,525 | 28,562 |
Total tax charge | 2,810,031 | 555,761 |
7. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
8. | DIVIDENDS |
Period |
1/12/21 |
Year Ended | to |
31/3/24 | 31/3/23 |
£ | £ |
Paid during the year | 55,000 | 55,000 |
HEWITSON GROUP LTD (REGISTERED NUMBER: 10011832) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
9. | TANGIBLE FIXED ASSETS |
Group |
Plant and | Motor | Computer |
machinery | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 April 2023 | 31,969,746 | 938,221 | 53,560 | 32,961,527 |
Additions | 10,652,689 | 254,143 | - | 10,906,832 |
Disposals | (7,476,631 | ) | (158,733 | ) | (425 | ) | (7,635,789 | ) |
Reclassification/transfer | 15,501 | (10,137 | ) | (555 | ) | 4,809 |
At 31 March 2024 | 35,161,305 | 1,023,494 | 52,580 | 36,237,379 |
DEPRECIATION |
At 1 April 2023 | 9,322,531 | 317,443 | 35,009 | 9,674,983 |
Charge for year | 4,417,032 | 187,151 | 8,371 | 4,612,554 |
Eliminated on disposal | (3,010,158 | ) | (114,638 | ) | (425 | ) | (3,125,221 | ) |
Reclassification/transfer | 6,901 | (8,432 | ) | (183 | ) | (1,714 | ) |
At 31 March 2024 | 10,736,306 | 381,524 | 42,772 | 11,160,602 |
NET BOOK VALUE |
At 31 March 2024 | 24,424,999 | 641,970 | 9,808 | 25,076,777 |
At 31 March 2023 | 22,647,215 | 620,778 | 18,551 | 23,286,544 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1 April 2023 | 24,422,944 | 230,586 | 24,653,530 |
Additions | 7,047,247 | 32,177 | 7,079,424 |
Transfer to ownership | (6,896,042 | ) | (20,115 | ) | (6,916,157 | ) |
At 31 March 2024 | 24,574,149 | 242,648 | 24,816,797 |
DEPRECIATION |
At 1 April 2023 | 5,107,548 | 48,235 | 5,155,783 |
Charge for year | 3,162,410 | 49,194 | 3,211,604 |
Transfer to ownership | (2,099,316 | ) | (13,110 | ) | (2,112,426 | ) |
At 31 March 2024 | 6,170,642 | 84,319 | 6,254,961 |
NET BOOK VALUE |
At 31 March 2024 | 18,403,507 | 158,329 | 18,561,836 |
At 31 March 2023 | 19,315,396 | 182,351 | 19,497,747 |
HEWITSON GROUP LTD (REGISTERED NUMBER: 10011832) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
10. | FIXED ASSET INVESTMENTS |
Company |
Unlisted |
investments |
£ |
COST OR VALUATION |
At 1 April 2023 |
Adjustment to present value |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
Cost or valuation at 31 March 2024 is represented by: |
Unlisted |
investments |
£ |
Valuation in 2019 | 96,678 |
Valuation in 2020 | (5,098 | ) |
Valuation in 2021 | 22,455 |
Valuation in 2022 | 70,087 |
Valuation in 2023 | 99,452 |
Cost | 208 |
283,782 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Teesside Grange, Eaglescliffe, Stockton-on-Tees, TS16 0QH |
Nature of business: |
% |
Class of shares: | holding |
31/3/24 | 31/3/23 |
£ | £ |
Aggregate capital and reserves |
Profit for the year/period |
HEWITSON GROUP LTD (REGISTERED NUMBER: 10011832) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
10. | FIXED ASSET INVESTMENTS - continued |
Registered office: Teesside Grange, Eaglescliffe, Stockton-on-Tees, TS16 0QH |
Nature of business: |
% |
Class of shares: | holding |
31/3/24 | 31/3/23 |
£ | £ |
Aggregate capital and reserves |
(Loss)/profit for the year/period | ( |
) |
Registered office: Teesside Grange, Eaglescliffe, Stockton-on-Tees, TS16 0QH |
Nature of business: |
% |
Class of shares: | holding |
31/3/24 | 31/3/23 |
£ | £ |
Aggregate capital and reserves |
Profit for the year/period |
Registered office: Teesside Grange, Eaglescliffe,Stockton-on-Tees,TS16 0QH |
Nature of business: |
% |
Class of shares: | holding |
31/3/24 | 31/3/23 |
£ | £ |
Aggregate capital and reserves |
Profit for the year/period |
Registered office: Teesside Grange, Eaglescliffe, Stockton-on-Tees, TS16 0QH |
Nature of business: |
% |
Class of shares: | holding |
31/3/24 | 31/3/23 |
£ | £ |
Aggregate capital and reserves |
Profit for the year/period |
HEWITSON GROUP LTD (REGISTERED NUMBER: 10011832) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
10. | FIXED ASSET INVESTMENTS - continued |
Registered office: Teesside Grange, Eaglescliffe, Stockton-on-Tees, TS16 0QH |
Nature of business: |
% |
Class of shares: | holding |
31/3/24 | 31/3/23 |
£ | £ |
Aggregate capital and reserves |
Profit for the year/period |
11. | STOCKS |
Group |
31/3/24 | 31/3/23 |
£ | £ |
Stocks | 3,171,523 | 2,428,723 |
12. | DEBTORS |
Group | Company |
31/3/24 | 31/3/23 | 31/3/24 | 31/3/23 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 3,004,257 | 4,303,261 |
Amounts owed by group undertakings | - | - |
Other debtors | 604,282 | 472,152 |
VAT | 557,473 | 957,158 |
Prepayments and accrued income | 4,250,317 | 2,931,111 |
8,416,329 | 8,663,682 |
Amounts falling due after more than one | year: |
Amounts owed by group undertakings | - | - |
Prepayments and accrued income | 300,000 | 300,000 |
300,000 | 300,000 |
Aggregate amounts | 8,716,329 | 8,963,682 |
HEWITSON GROUP LTD (REGISTERED NUMBER: 10011832) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31/3/24 | 31/3/23 | 31/3/24 | 31/3/23 |
£ | £ | £ | £ |
Hire purchase contracts (see note 15) | 6,445,970 | 5,302,689 |
Trade creditors | 4,311,896 | 4,881,227 |
Tax | 244,272 | 180,706 |
Social security and other taxes | 359,114 | 313,619 |
VAT | - | - | 85,962 | 64,309 |
Other creditors | 876,127 | 293,283 |
Deferred grant | 3,386 | 3,938 |
Accrued expenses | 1,531,489 | 1,267,404 |
13,772,254 | 12,242,866 |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
31/3/24 | 31/3/23 |
£ | £ |
Hire purchase contracts (see note 15) | 9,111,921 | 10,278,133 |
Deferred grant | 20,781 | 24,167 |
9,132,702 | 10,302,300 |
15. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
31/3/24 | 31/3/23 |
£ | £ |
Net obligations repayable: |
Within one year | 6,445,970 | 5,302,689 |
Between one and five years | 9,111,921 | 10,216,670 |
In more than five years | - | 61,463 |
15,557,891 | 15,580,822 |
16. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
31/3/24 | 31/3/23 |
£ | £ |
Hire purchase contracts | 15,557,891 | 15,580,822 |
The hire purchase debts are secured by the assets to which they relate. The bank loan liabilities are secured by the assets of the company. |
HEWITSON GROUP LTD (REGISTERED NUMBER: 10011832) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
17. | PROVISIONS FOR LIABILITIES |
Group |
31/3/24 | 31/3/23 |
£ | £ |
Deferred tax | 3,973,176 | 1,630,770 |
Group |
Deferred |
tax |
£ |
Balance at 1 April 2023 | 1,630,770 |
Accelerated capital allowances | 1,468,525 |
Change in rate in taxation | 873,881 |
Balance at 31 March 2024 | 3,973,176 |
In the following period the amount of deferred tax provision that is expected to unwind is £696,202 (P/E 31/3/23 £5,221). |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31/3/24 | 31/3/23 |
value: | £ | £ |
Ordinary | £1 | 3 | 3 |
Each share has full voting rights and full entitlement to profit and capital distributions. |
19. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 April 2023 | 16,448,838 |
Profit for the year | 3,368,287 |
Dividends | (55,000 | ) |
At 31 March 2024 | 19,762,125 |
Company |
Retained |
earnings |
£ |
At 1 April 2023 |
Profit for the year |
Dividends | ( |
) |
At 31 March 2024 |
HEWITSON GROUP LTD (REGISTERED NUMBER: 10011832) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
20. | CONTINGENT LIABILITIES |
A debenture aexists including a charge over the assets of the company dated 14 February 2019 in favour of Handelsbanken PLC. |
A multilateral guarantee exists between Hewitson Limited, Hewitson Plant Hire Limited, Hewitson Haulage Ltd, HAB Northern Ltd, Oaktree Living Limited and Hewitson Plant Sales Limited dated 14th April 2014 in favour of HSBC Bank plc. |
21. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
During the year the group received recharges and management charges totalling £175,543 (P/E 31/3/2023: £Nil) from companies or unincorporated entities which M E Hewitson owns. There was also management charges paid totalling £48,380 (P/E 31/3/2023: £60,400) to companies and unincorporated business owned by M E Hewitson. |
During the year, a total of key management personnel compensation of £ 1,068,177 (2023 - £ 846,740 ) was paid. |
22. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is M E Hewitson. |