REGISTERED NUMBER: 09846541 (England and Wales) |
G. J. HANDY (HOLDINGS) LTD |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
AUDITED |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED |
30 NOVEMBER 2023 |
REGISTERED NUMBER: 09846541 (England and Wales) |
G. J. HANDY (HOLDINGS) LTD |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
AUDITED |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED |
30 NOVEMBER 2023 |
G. J. HANDY (HOLDINGS) LTD (REGISTERED NUMBER: 09846541) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 | to | 3 |
Report of the Directors | 4 | to | 5 |
Report of the Independent Auditors | 6 | to | 8 |
Consolidated Statement of Comprehensive Income |
9 |
Consolidated Statement of Financial Position | 10 |
Company Statement of Financial Position | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Statement of Cash Flows | 14 |
Notes to the Consolidated Statement of Cash Flows |
15 |
Notes to the Consolidated Financial Statements | 16 | to | 27 |
G. J. HANDY (HOLDINGS) LTD |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
43-45 Devizes Road |
SWINDON |
Wiltshire |
SN1 4BG |
G. J. HANDY (HOLDINGS) LTD (REGISTERED NUMBER: 09846541) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
The directors have pleasure in presenting their strategic report for the year ended 30 November 2023. |
REVIEW OF BUSINESS |
The sector in which the group trades is seasonal and is dependent to some degree on the weather at key times. |
The 2023 key selling season was much stronger than 2022 seeing an increase in both turnover and profit and also the high stock levels carried over from the previous year were normalised which in turn put the business in a far stronger cash position. |
The turnover for the trading company within the group for the year was £15,671,609, which was up on 2022 by £1,018,166. |
Profit increased in 2023 due to growth in online sales and more stable costs throughout the year |
Our UK distribution partnership with Greenworks Tools and The Webb, The Handy and Q Garden brands continue to grow at a strong pace which complement the other big brand names we represent. |
Our strategy remains unchanged with the aim to deliver the best distribution infrastructure in our industry coupled with a highly skilled and knowledgeable team of staff means we can continue to grow our business and strive to lead in our sector. |
POSITION AT THE END OF THE YEAR |
The year end position of the group showed normal stock levels and this put the business in a strong cash position which was in contrast to the previous year where we end the year overstocked by circa £3m. |
Having normalised stock levels and costs having stabilised the business is in a strong place for the coming year. |
PRINCIPAL RISKS AND UNCERTAINTIES |
We are never complacent about further uncertainties especially after the past few years of unprecedented worldwide situations outside of our control. However, we are well placed to continue to drive forward both financially and infostructure wise. |
Currency swings are always a risk that we continue to manage carefully and successfully. |
Weather is and always has been the biggest uncertainty we cannot control. We have been dealing with this challenge as a business for over 80 years and the experience in our team allows us to keep these risks to a minimum by managing stock and range offerings. |
KEY PERFORMANCE INDICATORS |
The directors have identified that the key performance indicators when looking at the trading business are the monitoring of turnover on a monthly basis compared to the seasonalised budget, margin levels (2023 19.2%, 2022 15.3%, 2021 17.8%), stock turn (2023 3.0, 2022 1.65, 2021 2.1), control of overheads compared to budget and cash flow. |
G. J. HANDY (HOLDINGS) LTD (REGISTERED NUMBER: 09846541) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
FUTURE DEVELOPMENTS |
We have commissioned a brand-new warehouse racking system to improve efficiency and to increase the amount of pallets we can hold. This has meant for now we do not need to extend the building further. |
We are also currently exploring a complete external refit to the front of the building and offices to ensure we keep investing in our site for the good of our long-term future. |
We have commissioned a study on solar power and power storage. This is to reduce our carbon footprint and care for the environment in addition it will help us manage the cost of powering the business in the future. |
We continue to be partnered by the leading brands as well as our own brand offerings making us the one stop wholesaler in our industry. |
ON BEHALF OF THE BOARD: |
G. J. HANDY (HOLDINGS) LTD (REGISTERED NUMBER: 09846541) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 30 November 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of retail sale of garden machinery. |
DIVIDENDS |
Interim dividends totalling £39.17 per share were paid during the year. The directors recommend that no final dividend be paid. |
The total distribution of dividends for the year ended 30th November 2023 will be £321,500. |
All necessary waivers were in place. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 December 2022 to the date of this report. |
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), 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 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 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. |
G. J. HANDY (HOLDINGS) LTD (REGISTERED NUMBER: 09846541) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
AUDITORS |
The auditors, Morris Owen, 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 |
G. J. HANDY (HOLDINGS) LTD |
Opinion |
We have audited the financial statements of G. J. Handy (Holdings) Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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 30 November 2023 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 |
G. J. HANDY (HOLDINGS) 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. |
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 through the audit planning process; |
- | we identified the laws and regulations applicable to the group through discussions with directors and other management, and from our commercial knowledge and experience of the group's industry; |
- | 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 group, including the Companies Act, taxation legislation, general data protection regulations (GDPR), employment, 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
G. J. HANDY (HOLDINGS) LTD |
We assessed this susceptibility of the group'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. |
As a result of a small management and finance team we identified a risk of fraud through management bias and ability to override of controls, including lack of segregation of duties, which could lead to a misappropriation of cash and other assets. To address this we: |
- | performed analytical procedures to identify any unusual or unexpected relationships; |
- | tested journal entries to identify unusual transactions; |
- | carried out walk through testing of both sales and purchases to understand payment and authorisation processes; |
reviewing reasons behind sales credit notes raised; |
- | assessed whether judgements and assumptions made in determining the accounting estimates set out in note two were indicative of potential bias; and |
- | investigated the rationale behind significant or unusual transaction. |
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; |
- | enquiring with solicitors for any instances in the year; |
- | enquiring of management as to actual and potential litigation and claims; and |
- | reviewing correspondence with HM Revenue & Customs (HMRC) and any legal correspondence. |
Due 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, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
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. |
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 |
Statutory Auditors |
43-45 Devizes Road |
SWINDON |
Wiltshire |
SN1 4BG |
G. J. HANDY (HOLDINGS) LTD (REGISTERED NUMBER: 09846541) |
CONSOLIDATED |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
REVENUE | 3 | 15,671,611 | 14,653,441 |
Cost of sales | 12,659,340 | 12,402,589 |
GROSS PROFIT | 3,012,271 | 2,250,852 |
Administrative expenses | 2,296,788 | 1,830,654 |
715,483 | 420,198 |
Other operating income | 4 | 107,762 | 105,861 |
OPERATING PROFIT | 6 | 823,245 | 526,059 |
Interest payable and similar expenses | 7 | 65,826 | 68,153 |
PROFIT BEFORE TAXATION | 757,419 | 457,906 |
Tax on profit | 8 | 229,771 | 67,302 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME |
Revaluation reserve | 573,130 | 43,740 |
Income tax relating to other comprehensive income |
(178,633 |
) |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
394,497 |
43,740 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
922,145 |
434,344 |
Profit attributable to: |
Owners of the parent | 527,648 | 390,604 |
Total comprehensive income attributable to: |
Owners of the parent | 922,145 | 434,344 |
G. J. HANDY (HOLDINGS) LTD (REGISTERED NUMBER: 09846541) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
30 NOVEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Property, plant and equipment | 11 | 4,178,628 | 3,650,819 |
Investments | 12 | - | - |
4,178,628 | 3,650,819 |
CURRENT ASSETS |
Inventories | 13 | 3,664,114 | 6,719,118 |
Debtors | 14 | 3,133,243 | 3,035,513 |
Cash at bank and in hand | 1,569,146 | 25,200 |
8,366,503 | 9,779,831 |
CREDITORS |
Amounts falling due within one year | 15 | 2,794,320 | 4,486,865 |
NET CURRENT ASSETS | 5,572,183 | 5,292,966 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
9,750,811 |
8,943,785 |
CREDITORS |
Amounts falling due after more than one year |
16 |
(38,350 |
) |
(58,707 |
) |
PROVISIONS FOR LIABILITIES | 20 | (411,075 | ) | (184,337 | ) |
NET ASSETS | 9,301,386 | 8,700,741 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 17,170 | 17,170 |
Revaluation reserve | 22 | 1,516,217 | 1,121,720 |
Retained earnings | 22 | 7,767,999 | 7,561,851 |
SHAREHOLDERS' FUNDS | 9,301,386 | 8,700,741 |
The financial statements were approved by the Board of Directors and authorised for issue on 22 August 2024 and were signed on its behalf by: |
Mr S A Belcher - Director |
G. J. HANDY (HOLDINGS) LTD (REGISTERED NUMBER: 09846541) |
COMPANY STATEMENT OF FINANCIAL POSITION |
30 NOVEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Property, plant and equipment | 11 |
Investments | 12 |
CURRENT ASSETS |
Debtors | 14 |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 21 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 321,500 | 361,332 |
The financial statements were approved by the Board of Directors and authorised for issue on |
G. J. HANDY (HOLDINGS) LTD (REGISTERED NUMBER: 09846541) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 December 2021 | 17,170 | 7,532,579 | 1,077,980 | 8,627,729 |
Changes in equity |
Dividends | - | (361,332 | ) | - | (361,332 | ) |
Total comprehensive income | - | 390,604 | 43,740 | 434,344 |
Balance at 30 November 2022 | 17,170 | 7,561,851 | 1,121,720 | 8,700,741 |
Changes in equity |
Dividends | - | (321,500 | ) | - | (321,500 | ) |
Total comprehensive income | - | 527,648 | 394,497 | 922,145 |
Balance at 30 November 2023 | 17,170 | 7,767,999 | 1,516,217 | 9,301,386 |
G. J. HANDY (HOLDINGS) LTD (REGISTERED NUMBER: 09846541) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 December 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 November 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 November 2023 |
G. J. HANDY (HOLDINGS) LTD (REGISTERED NUMBER: 09846541) |
CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 4,133,613 | (1,239,425 | ) |
Interest paid | (58,785 | ) | (59,117 | ) |
Interest element of hire purchase payments paid |
(7,041 |
) |
(9,036 |
) |
Tax paid | (71,709 | ) | (255,165 | ) |
Net cash from operating activities | 3,996,078 | (1,562,743 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (70,357 | ) | (39,392 | ) |
Sale of tangible fixed assets | 26,517 | 249,908 |
Net cash from investing activities | (43,840 | ) | 210,516 |
Cash flows from financing activities |
Capital repayments in year | (80,133 | ) | (79,624 | ) |
Amount introduced by directors | 1,167 | - |
Amount withdrawn by directors | - | (17,984 | ) |
Equity dividends paid | (321,500 | ) | (354,942 | ) |
Net cash from financing activities | (400,466 | ) | (452,550 | ) |
Increase/(decrease) in cash and cash equivalents | 3,551,772 | (1,804,777 | ) |
Cash and cash equivalents at beginning of year |
2 |
(1,982,626 |
) |
(177,849 |
) |
Cash and cash equivalents at end of year |
2 |
1,569,146 |
(1,982,626 |
) |
G. J. HANDY (HOLDINGS) LTD (REGISTERED NUMBER: 09846541) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 757,419 | 457,906 |
Depreciation charges | 160,875 | 170,920 |
Profit on disposal of fixed assets | (21,243 | ) | (200,440 | ) |
Increase/(Decrease) in provision | 12,505 | (12,505 | ) |
Finance costs | 65,826 | 68,153 |
975,382 | 484,034 |
Decrease/(increase) in inventories | 3,055,004 | (1,181,215 | ) |
(Increase)/decrease in trade and other debtors | (97,727 | ) | 232,788 |
Increase/(decrease) in trade and other creditors | 200,954 | (775,032 | ) |
Cash generated from operations | 4,133,613 | (1,239,425 | ) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 30 November 2023 |
30.11.23 | 1.12.22 |
£ | £ |
Cash and cash equivalents | 1,569,146 | 25,200 |
Bank overdrafts | - | (2,007,826 | ) |
1,569,146 | (1,982,626 | ) |
Year ended 30 November 2022 |
30.11.22 | 1.12.21 |
£ | £ |
Cash and cash equivalents | 25,200 | 60,896 |
Bank overdrafts | (2,007,826 | ) | (238,745 | ) |
(1,982,626 | ) | (177,849 | ) |
3. | ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS |
At 1.12.22 | Cash flow | At 30.11.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 25,200 | 1,543,946 | 1,569,146 |
Bank overdrafts | (2,007,826 | ) | 2,007,826 | - |
(1,982,626 | ) | 3,551,772 | 1,569,146 |
Debt |
Finance leases | (141,519 | ) | 29,662 | (111,857 | ) |
(141,519 | ) | 29,662 | (111,857 | ) |
Total | (2,124,145 | ) | 3,581,434 | 1,457,289 |
G. J. HANDY (HOLDINGS) LTD (REGISTERED NUMBER: 09846541) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
1. | STATUTORY INFORMATION |
GJ Handy (Holdings) Limited is private company, limited by shares, registered in England and Wales. |
The registered office address is Murdock Road, Dorcan, Swindon, Wiltshire, SN3 5HY. |
These financial statements are presented in British Pounds (GBP), which is the company's functional and presentational currency. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. |
Significant judgements and estimates |
The directors have calculated an annual stock provision for any slow moving or obsolete third party stock. The directors believe the most accurate way to calculate this provision is to review each stock line held at the year end and compare this to sales post year end. All stock lines that have had less than 20% sales are deemed to be slow moving and/or obsolete. Of this total of slow moving and/or obsolete stock, the directors believe that a portion of this should be provided for. Stock lines, which show less than 20% sales post year end are subject to a 25% provision. The period for post year end review is considered to capture the seasonality of the business. The provision has been calculated at £124,558 (2022: £180,706). |
The directors also have determined an appropriate provision for bad and doubtful debts by assessing the recoverability of all balances on a balance by balance basis. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, net of vat, discounts, and rebates. Turnover is recognised when goods are despatched or made available for collection. Turnover in foreign currencies is translated into sterling at the rates published by HMRC |
Tangible fixed assets |
Freehold property | - |
Property improvements | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after make due allowance for obsolete and slow moving items. The cost of inventories is measured using the first-in first-out basis. |
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 statement of financial position date. |
G. J. HANDY (HOLDINGS) LTD (REGISTERED NUMBER: 09846541) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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. |
Foreign currencies |
Transactions in all other foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. |
The company enters into a forward agreements to minimise against the risk of fluctuations in the US dollar. |
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 company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the profit and loss account. |
Financial instruments |
Financial instruments are classified by the directors as basic or advanced following the conditions in FRS 102 Section 11. Basic financial instruments are recognised at amortised cost using the effective interest method. The only advanced instruments recognised by the company are derivatives (being forward foreign exchange contracts). Derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognised in arriving at profit before tax. Derivative assets are included in other debtors and derivative liabilities are included included in other creditors. |
3. | REVENUE |
The revenue and profit before taxation are attributable to the one principal activity of the group. |
4. | OTHER OPERATING INCOME |
2023 | 2022 |
£ | £ |
Other income | 107,762 | 105,861 |
G. J. HANDY (HOLDINGS) LTD (REGISTERED NUMBER: 09846541) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 1,325,625 | 1,238,961 |
Social security costs | 130,581 | 155,827 |
Other pension costs | 33,037 | 28,643 |
1,489,243 | 1,423,431 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Management staff | 5 | 5 |
Administration staff | 21 | 12 |
Sales, distribution & workshop staff | 16 | 27 |
2023 | 2022 |
£ | £ |
Directors' remuneration | 202,092 | 232,967 |
Directors' pension contributions to money purchase schemes | 9,064 | 6,507 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 3 | 3 |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 96,833 | 125,645 |
Pension contributions to money purchase schemes | 5,654 | 3,254 |
Directors' remuneration and pension disclosures include the total amount payable to directors' across all companies within the G. J. Handy (Holdings) Limited Group. |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery | 11,169 | 12,447 |
Depreciation - owned assets | 93,567 | 91,785 |
Depreciation - assets on hire purchase contracts | 67,308 | 79,134 |
Profit on disposal of fixed assets | (21,243 | ) | (200,440 | ) |
Auditors' remuneration | 19,750 | 20,009 |
Foreign exchange difference | (164,397 | ) | (100,526 | ) |
Last year the company disposed of several motor vehicles which resulted in a large profit on disposal. This is not expected to reoccur. |
G. J. HANDY (HOLDINGS) LTD (REGISTERED NUMBER: 09846541) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest | 56,375 | 52,782 |
Mortgage | - | 6,335 |
Corporation tax interest payable | 2,410 | - |
Hire purchase | 7,041 | 9,036 |
65,826 | 68,153 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 194,171 | 71,710 |
Deferred tax | 35,600 | (4,408 | ) |
Tax on profit | 229,771 | 67,302 |
UK corporation tax has been charged at 25 % . |
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: |
2023 | 2022 |
£ | £ |
Profit before tax | 757,419 | 457,906 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2022 - 19 %) |
189,355 |
87,002 |
Effects of: |
Expenses not deductible for tax purposes | 209 | 2,641 |
Capital allowances in excess of depreciation | - | (22,329 | ) |
Depreciation in excess of capital allowances | 21,391 | - |
short term timing differences | - | (12 | ) |
Deferred tax | 35,600 | - |
Change in tax rate | (16,784 | ) | - |
Total tax charge | 229,771 | 67,302 |
Tax effects relating to effects of other comprehensive income |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation reserve | 573,130 | (178,633 | ) | 394,497 |
G. J. HANDY (HOLDINGS) LTD (REGISTERED NUMBER: 09846541) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
8. | TAXATION - continued |
2022 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation reserve | 43,740 | - | 43,740 |
There was no tax for either of years relating to the deferred tax in respect of temporary timing differences on the revaluation during the year. |
9. | 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. |
10. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Interim | 321,500 | 361,332 |
11. | PROPERTY, PLANT AND EQUIPMENT |
Group |
Freehold | Property | Plant and |
property | improvements | machinery |
£ | £ | £ |
COST OR VALUATION |
At 1 December 2022 | 3,450,000 | 8,760 | 136,934 |
Additions | 21,031 | - | - |
Disposals | - | - | (1,204 | ) |
Revaluations | 528,969 | - | - |
At 30 November 2023 | 4,000,000 | 8,760 | 135,730 |
DEPRECIATION |
At 1 December 2022 | - | 5,682 | 119,444 |
Charge for year | 44,161 | 876 | 5,891 |
Eliminated on disposal | - | - | (1,204 | ) |
Revaluation adjustments | (44,161 | ) | - | - |
At 30 November 2023 | - | 6,558 | 124,131 |
NET BOOK VALUE |
At 30 November 2023 | 4,000,000 | 2,202 | 11,599 |
At 30 November 2022 | 3,450,000 | 3,078 | 17,490 |
G. J. HANDY (HOLDINGS) LTD (REGISTERED NUMBER: 09846541) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
11. | PROPERTY, PLANT AND EQUIPMENT - continued |
Group |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 December 2022 | 41,118 | 475,270 | 43,474 | 4,155,556 |
Additions | - | 96,441 | 3,355 | 120,827 |
Disposals | - | (114,208 | ) | (6,894 | ) | (122,306 | ) |
Revaluations | - | - | - | 528,969 |
At 30 November 2023 | 41,118 | 457,503 | 39,935 | 4,683,046 |
DEPRECIATION |
At 1 December 2022 | 20,693 | 327,873 | 31,044 | 504,736 |
Charge for year | 6,808 | 96,673 | 6,466 | 160,875 |
Eliminated on disposal | - | (109,009 | ) | (6,819 | ) | (117,032 | ) |
Revaluation adjustments | - | - | - | (44,161 | ) |
At 30 November 2023 | 27,501 | 315,537 | 30,691 | 504,418 |
NET BOOK VALUE |
At 30 November 2023 | 13,617 | 141,966 | 9,244 | 4,178,628 |
At 30 November 2022 | 20,425 | 147,397 | 12,430 | 3,650,820 |
Included in cost or valuation of land and buildings is freehold land of £1,263,000 (2022 - £1,263,000) which is not depreciated. |
Cost or valuation at 30 November 2023 is represented by: |
Freehold | Property | Plant and |
property | improvements | machinery |
£ | £ | £ |
Valuation in 2019 | 600,000 | - | - |
Valuation in 2021 | 487,587 | - | - |
Valuation in 2023 | 528,969 | - | - |
Cost | 2,383,444 | 8,760 | 135,730 |
4,000,000 | 8,760 | 135,730 |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
Valuation in 2019 | - | - | - | 600,000 |
Valuation in 2021 | - | - | - | 487,587 |
Valuation in 2023 | - | - | - | 528,969 |
Cost | 41,118 | 457,503 | 39,935 | 3,066,490 |
41,118 | 457,503 | 39,935 | 4,683,046 |
G. J. HANDY (HOLDINGS) LTD (REGISTERED NUMBER: 09846541) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
11. | PROPERTY, PLANT AND EQUIPMENT - continued |
Group |
If freehold land and buildings had not been revalued they would have been included at the following historical cost: |
2023 | 2022 |
£ | £ |
Cost | 2,383,444 | 2,362,413 |
Aggregate depreciation | 117,652 | 95,243 |
Value of land in freehold land and buildings | 1,263,000 | 1,263,000 |
Freehold land and buildings were valued on an open market basis on 17 July 2024 by Lovedays . |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 December 2022 | 15,038 | 255,323 | 270,361 |
Additions | - | 56,079 | 56,079 |
Transfer to ownership | (15,038 | ) | (20,996 | ) | (36,034 | ) |
At 30 November 2023 | - | 290,406 | 290,406 |
DEPRECIATION |
At 1 December 2022 | 12,031 | 143,132 | 155,163 |
Charge for year | - | 67,308 | 67,308 |
Transfer to ownership | (12,031 | ) | (18,275 | ) | (30,306 | ) |
At 30 November 2023 | - | 192,165 | 192,165 |
NET BOOK VALUE |
At 30 November 2023 | - | 98,241 | 98,241 |
At 30 November 2022 | 3,007 | 112,191 | 115,198 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 December 2022 |
and 30 November 2023 |
NET BOOK VALUE |
At 30 November 2023 |
At 30 November 2022 |
G. J. HANDY (HOLDINGS) LTD (REGISTERED NUMBER: 09846541) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
12. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Murdock Road, Dorcan, Swindon, Wiltshire, SN3 5HY. |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: Murdock Road, Dorcan, Swindon, Wiltshire, SN3 5HY. |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Profit/(loss) for the year | ( |
) |
13. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Spares stock | 461,823 | 554,830 |
Machinery stock | 3,202,291 | 6,164,288 |
3,664,114 | 6,719,118 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 1,051,619 | 991,138 |
Amounts owed by group undertakings | - | - |
Amounts owed by participating interests | 1,756,824 | 1,756,824 | - | - |
Other debtors | 66,697 | 79,592 |
Prepayments and accrued income | 258,103 | 207,959 |
3,133,243 | 3,035,513 |
G. J. HANDY (HOLDINGS) LTD (REGISTERED NUMBER: 09846541) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 17) | - |
2,007,826 |
Hire purchase contracts (see note 18) | 73,507 | 82,812 |
Trade creditors | 1,967,509 | 1,724,022 |
Amounts owed to group undertakings | - | - |
Corporation tax | 194,171 | 71,709 |
Social security and other taxes | 29,898 | 28,738 |
VAT | 147,545 | 124,158 | - | - |
Other creditors | 72,422 | 103,243 |
Directors' current accounts | 8,191 | 7,024 | - | - |
Accruals and deferred income | 301,077 | 337,333 |
2,794,320 | 4,486,865 |
Included in other creditors is an amount of £5,312 (2022: £5,285) in relation to pension contributions owing. |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Hire purchase contracts (see note 18) | 38,350 | 58,707 |
The terms of the hire purchase agreements for the above balance have repayments in equal instalments ending between December 2024 and August 2026, at interest rates that vary between 2.50% and 3.30%. |
17. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or | on demand: |
Bank overdrafts | - | 2,007,826 |
G. J. HANDY (HOLDINGS) LTD (REGISTERED NUMBER: 09846541) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase | contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | 73,507 | 82,812 |
Between one and five years | 38,350 | 58,707 |
111,857 | 141,519 |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2023 | 2022 |
£ | £ |
Bank overdraft | - | 2,007,826 |
Hire purchase contracts | 111,857 | 141,519 |
111,857 | 2,149,345 |
The Group's secured debts include bank loans and bank overdraft. These are secured over the following: |
- A debenture dated 16th June 2009 over all assets of G. J. Handy (Trading) Ltd. |
- A unlimited inter-company guarantee dated 19th November 2015 across all companies within the Group. |
- A debenture dated 19th November 2015 over all assets of G. J. Handy (Properties) Ltd. |
- A legal charge dated 1 February 2016 over the freehold property of Murdock Road, Swindon. |
Obligations under hire purchase are secured on the assets concerned. |
20. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 63,402 | 27,802 |
Property revaluations | 325,538 | 146,905 |
388,940 | 174,707 |
Other provisions |
Warranty provision | 22,135 | 9,630 |
Aggregate amounts | 411,075 | 184,337 |
G. J. HANDY (HOLDINGS) LTD (REGISTERED NUMBER: 09846541) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
20. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1 December 2022 | 174,707 | 9,630 |
Provided during year | 214,233 | 12,505 |
Balance at 30 November 2023 | 388,940 | 22,135 |
The other provision relates to warranty costs on certain product lines, expected within the next 12 months. |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 17,170 | 17,170 |
Ordinary shares have full voting rights. |
22. | RESERVES |
Group |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
At 1 December 2022 | 7,561,851 | 1,121,720 | 8,683,571 |
Profit for the year | 527,648 | 527,648 |
Dividends | (321,500 | ) | (321,500 | ) |
Revaluation | - | 573,130 | 573,130 |
Reversal of revaluation on |
disposal | - | (178,633 | ) | (178,633 | ) |
At 30 November 2023 | 7,767,999 | 1,516,217 | 9,284,216 |
Company |
Retained |
earnings |
£ |
Profit for the year |
Dividends | ( |
) |
At 30 November 2023 |
23. | RELATED PARTY DISCLOSURES |
Other related parties - entities controlled or jointly controlled by key management personnel |
2023 | 2022 |
£ | £ |
Amount due from participating interests | 1,756,824 | 1,756,824 |
G. J. HANDY (HOLDINGS) LTD (REGISTERED NUMBER: 09846541) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
23. | RELATED PARTY DISCLOSURES - continued |
During the year, the key management personnel are considered to be the directors' only. |
24. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party at the yearend is considered to be Mr S A Belcher, being the majority shareholder. |