Company registration number 01290285 (England and Wales)
HALLIS-HUDSON GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
HALLIS-HUDSON GROUP LIMITED
COMPANY INFORMATION
Directors
Mr J W Soper
Mr A J Soper
Mr N J Soper
Mrs I Gregory
Ms K Hodges
(Appointed 26 April 2023)
Company number
01290285
Registered office
Unit B1 Red Scar Business Park
Longridge Road
Ribbleton
Preston
PR2 5NJ
Auditor
MHA
Richard House
9 Winckley Square
Preston
PR1 3HP
HALLIS-HUDSON GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 26
HALLIS-HUDSON GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Fair review of the business

As noted on page 9 of the financial statements, the company achieved an operating profit of £415,930. The gross margin percentage increased in the period to 38.5% (2022: 37.6%), consequently the directors are satisfied with the company's trading position and results for the year.

 

The well publicised impact of the “cost of living crisis” has contributed to an approximate 5% net reduction in sales, however, the company’s main revenue is related to the housing market, and this has remained buoyant during the year with consumers continuing to refurbish their properties. Cost increases have steadily impacted the business during the year with only a proportion of these in areas such as employment and material costs, passed on to customers via increased selling prices. This has contributed to the overall reduction in operating profit compared to the previous year.

 

The directors are closely monitoring other areas of the economy such as Interest rate rises to understand the impact that this will have on future demand.

 

The market focus remains on the independent retail, workroom, contract and homeworking sectors by providing extensive, innovative, and quality product ranges at competitive prices. The directors’ strategy is to continually expand the portfolio and categories of products available through the company’s distribution network to increase both customer numbers and the average sales value per customer. This has continued throughout 2023 with new and innovative ranges brought to market, helping our customer base adapt to the changing requirements of the end consumer, including a greater focus on energy saving and sustainable ranges

 

During the period the business has continued to focus on its core USP of high levels of stock available for same day despatch. Whilst supply chains have been impacted by high shipping costs and extended lead times, pro-active management of stock and excellent trading partners have seen this service level be maintained. The business has further supported this critical area by accelerating payments to suppliers and increasing certain stock holding positions in order to maintain stability in the supply chain

 

Significant disruption in the UK next day carrier market, with a major next day carrier entering administration in June, caused additional operational pressures, but additional resources were brought into the business to minimise the impact on customers. A key emphasis has been placed on creating a more robust next day distribution network with a significantly reduced dependency on any one single next day carrier.

 

The company committed approximately £1.4m of capital expenditure during the year, mainly financed from its own cash reserves and consisting of two major projects. Firstly, £600,000 in upgrading the central warehousing and distribution centre in Preston. Secondly, £700,000 as part of a 2-year project to update information technology and systems in the business. The latter project will be completed in 2024 and represents a major step into cloud-based systems. Technology remains an area that the business will continue to invest in to ensure that our systems can cope with the changing demands of our customers.

 

At the period end the company’s shareholder funds have increased by £95,674 to £5,644,082. The directors consider the company’s financial position to be satisfactory with the current assets exceeding current liabilities by £3,957,039 (2022: £5,106,150) and that the company is well placed to achieve its targets over the next twelve months.

HALLIS-HUDSON GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Principal risks and uncertainties

The principal uncertainties for the coming year are the disruption to global supply chains, coupled with global inflationary pressures which are being managed to ensure that prices remain competitive in the marketplace. The Directors continue to closely monitor both customer spending and consumer demand.

 

Sufficient liquidity is in place to manage any period of disruption and a full cost review has been undertaken to ensure the business remains able to cope with any changes in demand from its customers.

 

The company finances its operations through a mixture of retained profits and where necessary to fund expansion or capital expenditure programmes through bank borrowings. Management’s objectives are to:

 

 

Development and performance

Where appropriate, funds are invested in sterling bank deposit accounts and borrowings are obtained from standard bank loan accounts and using debtors as security. The company seeks to limit its exposure to foreign currency fluctuations by ensuring sales and purchase invoices are raised in sterling where possible. Movements in exchange rates are monitored closely by the company and forward currency contracts are purchased to help mitigate the risk. Hedge accounting is not used by the company.

 

Future Developments

As we look toward the future, we are committed to expanding our product offerings and strengthening our market presence, allowing us to continue to meet the diverse & evolving needs of our customers. Investing in technology will be a key focus. The implementation of a new ERP system in 2024 will enable us to operate more efficiently, respond swiftly to market demands, and offer a seamless experience to our customers.

Key performance indicators

The directors recognise that effective performance management is key to being a strong business. Progress is monitored by review of key financial indicators, including but not limited to:

 

Gross profit as a % of turnover - 38.5% (2022: 37.6%)

Net Profit - £255,674 (2022: £689,800)

Net Asset Value - £5,644,082 (2022: £5,548,408)

 

On behalf of the board

..............................................
Mr A J Soper
Director
.........................
HALLIS-HUDSON GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company during the year was the wholesale and distribution of a range of window furnishings.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £160,000. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr J W Soper
Mr A J Soper
Mr N J Soper
Mrs I Gregory
Mr M Hestford
(Resigned 31 December 2023)
Ms K Hodges
(Appointed 26 April 2023)
Supplier payment policy

The company agrees terms and conditions for its business transactions when orders for goods and services are placed, ensuring that suppliers are aware of the terms of payment and including the relevant terms in contract where appropriate. These arrangements are adhered to when making payments, subject to terms and conditions being met by the supplier.

Auditor

Following the merger of MHA Moore & Smalley with MHA, the company's independent auditor has now become MHA. A resolution to reappoint MHA as independent auditor will be proposed at the next Annual General Meeting.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments and principle risks and uncertainties.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

HALLIS-HUDSON GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
On behalf of the board
Mr A J Soper
Director
22 August 2024
HALLIS-HUDSON GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

The directors are responsible for preparing the annual report 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

HALLIS-HUDSON GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF HALLIS-HUDSON GROUP LIMITED
- 6 -
Opinion

We have audited the financial statements of Hallis-Hudson Group Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company 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 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

HALLIS-HUDSON GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF HALLIS-HUDSON GROUP LIMITED (CONTINUED)
- 7 -

Opinions on other matters prescribed by the Companies Act 2006

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

 

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

Matters on which we are required to report by exception

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

 

 

 

 

HALLIS-HUDSON GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF HALLIS-HUDSON GROUP LIMITED (CONTINUED)
- 8 -

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s member, 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 member those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s member as a body, for our audit work, for this report, or for the opinions we have formed.

Damian Walmsley BA FCA
Senior Statutory Auditor
For and on behalf of MHA, Statutory Auditor
Preston, United Kingdom
22 August 2024
2024-08-22
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)
HALLIS-HUDSON GROUP LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
25,938,410
27,394,353
Cost of sales
(15,934,319)
(17,088,278)
Gross profit
10,004,091
10,306,075
Distribution costs
(2,182,179)
(2,024,002)
Administrative expenses
(7,405,982)
(7,349,646)
Operating profit
4
415,930
932,427
Interest receivable and similar income
7
30,012
-
0
Interest payable and similar expenses
8
(84,191)
(63,649)
Profit before taxation
361,751
868,778
Tax on profit
9
(106,077)
(178,978)
Profit for the financial year
255,674
689,800

The profit and loss account has been prepared on the basis that all operations are continuing operations.

HALLIS-HUDSON GROUP LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
11
1,178,947
515,999
Tangible assets
12
1,119,055
601,343
2,298,002
1,117,342
Current assets
Stocks
14
2,531,357
2,308,580
Debtors
15
4,271,736
4,276,932
Cash at bank and in hand
1,572,698
4,481,031
8,375,791
11,066,543
Creditors: amounts falling due within one year
16
(4,418,752)
(5,960,393)
Net current assets
3,957,039
5,106,150
Total assets less current liabilities
6,255,041
6,223,492
Creditors: amounts falling due after more than one year
17
(363,658)
(533,333)
Provisions for liabilities
Deferred tax liability
20
247,301
141,751
(247,301)
(141,751)
Net assets
5,644,082
5,548,408
Capital and reserves
Called up share capital
22
40,000
40,000
Capital redemption reserve
101
101
Profit and loss reserves
5,603,981
5,508,307
Total equity
5,644,082
5,548,408

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 22 August 2024 and are signed on its behalf by:
Mr A J Soper
Director
Company registration number 01290285 (England and Wales)
HALLIS-HUDSON GROUP LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
40,000
101
4,819,507
4,859,608
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
689,800
689,800
Dividends
10
-
-
(1,000)
(1,000)
Balance at 31 December 2022
40,000
101
5,508,307
5,548,408
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
255,674
255,674
Dividends
10
-
-
(160,000)
(160,000)
Balance at 31 December 2023
40,000
101
5,603,981
5,644,082
HALLIS-HUDSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information

Hallis-Hudson Group Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit B1 Red Scar Business Park, Longridge Road, Ribbleton, Preston, PR2 5NJ.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

 

Hallis-Hudson Group Limited is a wholly owned subsidiary of Harper Industries Ltd and the results of Hallis-Hudson Group Limited are included in the consolidated financial statements of Harper Industries Ltd which are available from Companies House, Cardiff.

1.2
Going concern

The directors have considered the financial position of the company at 31 December 2023, management information to date and forecasts for a period of 12 months from the date of signing these financial statements. true

In light of these forecasts, they consider that the Company has adequate resources to continue in operational existence for the foreseeable future.

 

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover represents amounts receivable for goods and services provided less returns and allowances, excluding valued added tax. Turnover is recognised on delivery of the goods.

HALLIS-HUDSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Software
20-50% straight line
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Short leasehold alterations
10-20% straight line
Plant and computer equipment
20-50% straight line
Motor vehicles
25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.

1.7
Stocks

Stock is valued at the lower of cost and net realisable value, after making due allowances for obsolete and slow moving items.

 

Cost includes all direct expenditure.

1.8
Cash and cash equivalents

Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks.

HALLIS-HUDSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

The only non-basic financial assets that the company may from time to time hold are those that result from its participation in forward currency contracts, the accounting for which is detailed in accounting policy 1.16.

Impairment of financial assets

Financial assets 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 or 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.

HALLIS-HUDSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

The only non-basic financial liabilities that the company may from time to time have a liability under are those that result from its participation in forward currency contracts, the accounting for which is detailed in accounting policy 1.16.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

HALLIS-HUDSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax.

 

Deferred tax assets in relation to excess of depreciation over taxation allowances and tax losses available are not recognised due to the future timescale over which they will be realised.

 

Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences arise, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease.

1.16
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

HALLIS-HUDSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Classification of finance and operating leases

At the inception of each lease, management undertake an assessment of the terms of the lease including payments to be made over the life of the lease, the fair value of the asset subject to the lease, the length of the lease and whether the terms of the lease transfer substantially all of the risks and rewards of ownership.

 

Based on this assessment, management will determine whether the lease should be classified as a finance or operating lease.

Impairment of trade debtors

At each balance sheet date, management undertake an assessment of the recoverability of trade debtors based upon their knowledge of the customers, ageing of the balances outstanding and previous write off history. Where necessary, an impairment is recorded as a doubtful debt. The actual level of debt collected may differ from the estimated level of recovery.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Stock provision

At each balance sheet date, management will review the stock listing and identify items that are considered to be obsolete based upon their knowledge of the products and the ageing of stock and expected sales in future periods. Balances considered to be obsolete are provided for.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Sales attributable to principal activity
25,938,410
27,394,353
HALLIS-HUDSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 18 -
2023
2022
£
£
Turnover analysed by geographical market
United Kindgom
25,587,804
27,058,589
Overseas
350,606
335,764
25,938,410
27,394,353
2023
2022
£
£
Other revenue
Interest income
12
-
Dividends received
30,000
-
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
13,000
13,000
Depreciation of owned tangible fixed assets
182,641
200,643
Amortisation of intangible assets
2,563
2,226
Operating lease charges
448,390
539,326
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Selling and distribution staff
83
84
Manufacturing staff
62
70
Total
145
154
HALLIS-HUDSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Employees
(Continued)
- 19 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
4,317,063
4,223,653
Social security costs
433,292
431,662
Pension costs
190,838
173,176
4,941,193
4,828,491
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
416,194
512,809
Company pension contributions to defined contribution schemes
57,292
57,867
473,486
570,676

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2022 - 3).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
129,933
183,058
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
12
-
0
Income from fixed asset investments
Income from shares in group undertakings
30,000
-
0
Total income
30,012
-
0
HALLIS-HUDSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
36,727
43,570
Interest on invoice finance arrangements
47,464
20,079
84,191
63,649
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
47,490
Adjustments in respect of prior periods
527
-
0
Total current tax
527
47,490
Deferred tax
Origination and reversal of timing differences
189,326
99,931
Changes in tax rates
1
31,557
Tax losses carried forward
(83,777)
-
0
Total deferred tax
105,550
131,488
Total tax charge
106,077
178,978

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
361,751
868,778
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
85,084
165,068
Tax effect of expenses that are not deductible in determining taxable profit
18,111
16,046
Tax effect of income not taxable in determining taxable profit
(3,891)
-
0
Adjustments in respect of prior years
527
-
0
Effect of change in corporation tax rate
6,246
31,557
Group relief
-
0
(34)
Super-deduction
-
0
(33,659)
Taxation charge for the year
106,077
178,978
HALLIS-HUDSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
(Continued)
- 21 -

The company has non-trading tax losses to carry forward of £34,934 (2022: £34,934) and trading tax losses to carry forward of £335,108 (2022: £Nil).

10
Dividends
2023
2022
£
£
Final paid
160,000
1,000
11
Intangible fixed assets
Software
£
Cost
At 1 January 2023
1,283,815
Additions
665,511
At 31 December 2023
1,949,326
Amortisation and impairment
At 1 January 2023
767,816
Amortisation charged for the year
2,563
At 31 December 2023
770,379
Carrying amount
At 31 December 2023
1,178,947
At 31 December 2022
515,999
HALLIS-HUDSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
12
Tangible fixed assets
Short leasehold alterations
Plant and computer equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2023
1,026,092
1,022,385
36,150
2,084,627
Additions
543,270
72,083
85,000
700,353
At 31 December 2023
1,569,362
1,094,468
121,150
2,784,980
Depreciation and impairment
At 1 January 2023
536,436
912,697
34,151
1,483,284
Depreciation charged in the year
95,053
83,999
3,589
182,641
At 31 December 2023
631,489
996,696
37,740
1,665,925
Carrying amount
At 31 December 2023
937,873
97,772
83,410
1,119,055
At 31 December 2022
489,656
109,688
1,999
601,343

Tangible fixed assets with a carrying amount of £1,119,055 (2022: £601,343) have been pledged to secure borrowings of the company.

13
Subsidiaries

These financial statements are separate company financial statements for Hallis-Hudson Group Limited.

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Lansdown Mills Limited
England & Wales
Ordinary
100.00
RS Design Consultants Limited
England & Wales
Ordinary
100.00

The subsidiaries have been fully impaired in current and prior year.

14
Stocks
2023
2022
£
£
Finished goods and goods for resale
2,531,357
2,308,580

Stock with a carrying amount of £2,531,357 (2022: £2,308,580) have been pledged to secure borrowings of the company.

HALLIS-HUDSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
15
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
3,296,570
3,213,239
Other debtors
24,952
329,094
Prepayments and accrued income
950,214
734,599
4,271,736
4,276,932
16
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
18
272,466
200,000
Obligations under finance leases
19
30,325
-
0
Other borrowings
18
396,686
450,922
Trade creditors
3,062,730
4,210,239
Amounts owed to group undertakings
41,959
104,000
Corporation tax
515
47,490
Other taxation and social security
295,062
453,611
Other creditors
1,161
-
0
Accruals and deferred income
317,848
494,131
4,418,752
5,960,393
17
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
18
333,333
533,333
Obligations under finance leases
19
30,325
-
0
363,658
533,333
HALLIS-HUDSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
18
Loans and overdrafts
2023
2022
£
£
Bank loans
533,333
733,333
Bank overdrafts
72,466
-
0
Other loans
396,686
450,922
1,002,485
1,184,255
Payable within one year
669,152
650,922
Payable after one year
333,333
533,333

Included in other loans is an amount of £396,686 (2022 £450,922) which is secured by a debenture over the assets of the company.

 

Bank loans also include £533,333 (2022: £733,333) CBILS loan drawndown by the company. The repayment period starts 12 months from the date of first drawdown and will be repaid by monthly instalment over the proceeding 60 months. Interest will be charged at 3.99% above the Bank of England base rate from September 2021. The loan is secured by a personal guarantee limited to £100,000.

19
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
30,325
-
0
In two to five years
30,325
-
0
60,650
-
0

Finance lease obligations are secured on the assets to which they relate.

 

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

HALLIS-HUDSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
20
Deferred taxation
Liabilities
Liabilities
2023
2022
Balances:
£
£
ACAs
335,304
148,399
Tax losses
(83,777)
-
Retirement benefit obligations
(4,226)
(5,963)
Derivatives
-
(685)
247,301
141,751
2023
Movements in the year:
£
Liability at 1 January 2023
141,751
Charge to profit or loss
105,550
Liability at 31 December 2023
247,301

The company also has a deferred tax asset amounting to £9,000 (2022: £9,000) in relation to tax losses available respectively. This asset has not been recognised due to the timescale over which it will be realised.

21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
190,838
173,176

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

 

 

 

 

22
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
40,000
40,000
40,000
40,000
HALLIS-HUDSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
23
Financial commitments, guarantees and contingent liabilities

The company is party to a multilateral guarantee with its holding company, Harper Industries Ltd. At the year end there were potential obligations of £Nil (2021: £Nil) due under this guarantee.

24
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
135,943
40,008
Between two and five years
375,827
86,694
In over five years
202,500
-
0
714,270
126,702
25
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Rent of premises
2023
2022
£
£
Entities under common control
79,342
229,996

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due to related parties
£
£
Key management personnel
1,161
(88,054)
Other information

The company has taken advantage of the exemption permitted under Section 33 'Related Party Disclosures' paragraph 33.1A from disclosing transactions with the parent, subsidiary and fellow subsidiary companies.

26
Ultimate controlling party

The company was under the control of Harper Industries Ltd or the whole of the financial period and the previous financial year. Harper Industries plc is the only undertaking that prepares group accounts including the financial statements of the company. Copies of the consolidated accounts are available from Companies House, Cardiff.

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