Company registration number 03186425 (England and Wales)
HARDY GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
HARDY GROUP LIMITED
COMPANY INFORMATION
Directors
Mr I Gilston
Mrs C Gilston
Secretary
Mr I Gilston
Company number
03186425
Registered office
Aston Way
Moss Side Development Park
Leyland
PR26 7UX
Auditor
MHA
Richard House
9 Winckley Square
Preston
PR1 3HP
HARDY GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
Notes to the financial statements
15 - 32
HARDY 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.

Analysis of Development and Performance

 

Business review

 

The group finished the year with a turnover of £20,917,751, compared to £17,393,838 in 2022, therefore experiencing growth of £3,523,913 or 20%. The increase was due to a number of new contracts having been secured and the strong retention of existing contracts. The company places much emphasis on contract retention, thus ensuring new contract wins and their respective turnover is not diluted by contract losses.

As per the previous year, the subsidiary, Aston Services Group Limited's (ASG's) gross margin was impacted by the fact that some contracts are invoiced by ASG on behalf of Aston Industrial Cleaning and Maintenance Limited (AICM) a related company (this formerly being the Maintenance and Industrial Cleaning of Division of ASG and now a separate business). Whilst AICM carries out the work, due to previous contractual arrangements in place, ASG raises the invoices for which AICM in turn invoices ASG. The value of AICM work in 2023 represented £3,602,706. There is no margin applied by ASG to AICM on such work which does dilute the company’s gross margin as a consequence. However, this arrangement will have ceased as from August 2024.

The subsidiary is happy to report that its sales growth has continued into 2024, with the first 4 months of the year showing an increase in sales of £74,288 over the same period in 2023.

With the company being well ahead of its sales and profit forecasts for the first 4 months of 2024, it is confident that it will end the year with an improved sales and profit position over 2023 and will carry its 2024 successes into 2025 where it is confident of continuing its upward trend in sales and profit growth.

 

Key Performance Indicators

 

Turnover compared to 2022 has increased by £3,523,913 or 20.25%

Profit before tax compared to 2022 has increased by £255,761 or 189.15%

Profit after tax compared to 2022 has increased by £150,146 or 216.40%.

Desciption of Principal Risks and Uncertainties

 

Legislative and regulatory risk

 

Legislative risk is managed by the directors on a continual basis with all contracts having the facility written in to them that allows the Hardy Group Limited group to pass on any costs that occur due to government legislation.

 

Actions of competitors

 

The directors believe the policy of tendering competitively but realistically on price, as well as offering an excellent service delivery with highly skilled staff will underpin the group’s future growth and profits.

 

Financial risk

 

The group continues to have the full support of its bankers and directors in addition to a substantial personal guarantee from Ian Gilston.

 

HARDY GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Future Developments

The group’s positive performance and progress in annual sales growth has been recognised by the market and as a consequence has attracted the attention of one of the country’s leading facilities management companies, Atlas FM.

 

The group has agreed to be acquired and merged into Atlas FM. The move will provide a much bigger infrastructure from which ASG will be able to benefit and take advantage of to further accelerate its growth and market share.

 

The decision to be acquired by Atlas FM matches ASG’s objectives of continued investment in its business and people. ASG believes that it has found the right partner in Atlas FM - a company whose origins date back 38 years offering a wide range of services across the UK. The Atlas FM culture is completely aligned with that of ASG’s and therefore offers a very exciting future ahead for all concerned.

 

The proposed completion date for the sale of the business is likely to be shortly after the accounts have been signed.

 

On behalf of the board

Mr I Gilston
Director
31 July 2024
HARDY 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 group continued to be that of the provision of cleaning, security and facilities management services.

Results and dividends

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

Ordinary dividends were paid amounting to £95,000. 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 I Gilston
Mrs C Gilston
Financial instruments
Liquidity risk

The group manages its borrowing requirements in order to minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

Interest rate risk

The group is exposed to cash flow interest rate risk on bank overdrafts and loans. The Board reviews the exposure to interest rate risk on a regular basis to reduce exposure to changes in interest rates.

Credit risk

Credit terms are offered to customers with an average credit term of approximately 45 days across the board, but are subject to credit verification procedures before services commence and there is regular credit control monitoring.

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

 

There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.

HARDY GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
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 truedevelopment and performance and principal 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 auditor of the company 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 auditor of the company 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.

On behalf of the board
Mr I Gilston
Director
31 July 2024
HARDY 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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

HARDY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HARDY GROUP LIMITED
- 6 -
Opinion

We have audited the financial statements of Hardy Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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 group and parent 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 group's and 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 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.

HARDY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HARDY GROUP LIMITED
- 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 group and parent company and their 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 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 parent 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.

HARDY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HARDY GROUP LIMITED
- 8 -

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

 

 

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 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 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 members 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
31 July 2024
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)
HARDY GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
20,917,751
17,393,838
Cost of sales
(18,253,091)
(15,232,557)
Gross profit
2,664,660
2,161,281
Administrative expenses
(2,239,429)
(1,853,175)
Other operating income
23,837
29,285
Operating profit
4
449,068
337,391
Interest receivable and similar income
6
9,594
458
Interest payable and similar expenses
7
(67,687)
(36,987)
Profit/(loss) on disposal of operations
- Current year adjustments re prior year discontinuations
-
(165,648)
Profit before taxation
390,975
135,214
Tax on profit
8
(171,445)
(65,830)
Profit for the financial year
219,530
69,384
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

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

HARDY GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
10
77,448
107,802
Tangible assets
11
436,528
434,377
513,976
542,179
Current assets
Stocks
14
30,000
15,000
Debtors
15
4,666,752
3,675,956
Cash at bank and in hand
55,918
134,652
4,752,670
3,825,608
Creditors: amounts falling due within one year
16
(4,856,892)
(3,951,230)
Net current liabilities
(104,222)
(125,622)
Total assets less current liabilities
409,754
416,557
Creditors: amounts falling due after more than one year
17
(83,778)
(202,261)
Provisions for liabilities
Deferred tax liability
20
60,208
73,058
(60,208)
(73,058)
Net assets
265,768
141,238
Capital and reserves
Called up share capital
22
46,532
46,532
Share premium account
244,175
244,175
Capital redemption reserve
9,698
9,698
Profit and loss reserves
(34,637)
(159,167)
Total equity
265,768
141,238

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

The financial statements were approved by the board of directors and authorised for issue on 31 July 2024 and are signed on its behalf by:
31 July 2024
Mr I  Gilston
Director
Company registration number 03186425 (England and Wales)
HARDY GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
12
512,250
512,251
Current assets
-
-
Creditors: amounts falling due within one year
16
-
(206,575)
Net current liabilities
-
(206,575)
Net assets
512,250
305,676
Capital and reserves
Called up share capital
22
46,532
46,532
Share premium account
244,175
244,175
Capital redemption reserve
9,698
9,698
Profit and loss reserves
211,845
5,271
Total equity
512,250
305,676

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £301,574 (2022 - £325,000 profit).

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 31 July 2024 and are signed on its behalf by:
31 July 2024
Mr I  Gilston
Director
Company registration number 03186425 (England and Wales)
HARDY GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
52,300
244,175
3,930
92,623
393,028
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
-
69,384
69,384
Dividends
9
-
-
-
(160,000)
(160,000)
Own shares acquired
-
-
-
(161,174)
(161,174)
Redemption of shares
22
-
-
5,768
-
5,768
Reduction of shares
22
(5,768)
-
-
-
(5,768)
Balance at 31 December 2022
46,532
244,175
9,698
(159,167)
141,238
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
219,530
219,530
Dividends
9
-
-
-
(95,000)
(95,000)
Balance at 31 December 2023
46,532
244,175
9,698
(34,637)
265,768
HARDY GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
52,300
244,175
3,930
1,445
301,850
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
325,000
325,000
Dividends
9
-
-
-
(160,000)
(160,000)
Own shares acquired
-
-
-
(161,174)
(161,174)
Redemption of shares
22
-
-
5,768
-
5,768
Reduction of shares
22
(5,768)
-
-
-
(5,768)
Balance at 31 December 2022
46,532
244,175
9,698
5,271
305,676
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
301,574
301,574
Dividends
9
-
-
-
(95,000)
(95,000)
Balance at 31 December 2023
46,532
244,175
9,698
211,845
512,250
HARDY GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
771,965
592,883
Interest paid
(67,687)
(36,987)
Income taxes paid
(27,274)
(27,210)
Net cash inflow from operating activities
677,004
528,686
Investing activities
Purchase of tangible fixed assets
(144,404)
(177,753)
Proceeds on disposal of tangible fixed assets
15,397
3,080
Other investments and loans made
(456,861)
38,662
Interest received
9,594
458
Net cash used in investing activities
(576,274)
(135,553)
Financing activities
Purchase of own shares
-
0
(161,174)
Repayment of bank loans
(53,316)
(54,354)
Payment of finance leases obligations
(31,148)
(40,131)
Dividends paid to equity shareholders
(95,000)
(160,000)
Net cash used in financing activities
(179,464)
(415,659)
Net decrease in cash and cash equivalents
(78,734)
(22,526)
Cash and cash equivalents at beginning of year
134,652
157,178
Cash and cash equivalents at end of year
55,918
134,652
HARDY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information

Hardy Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Aston Way, Moss Side Development Park, Leyland, PR26 7UX.

 

The group consists of Hardy Group Limited and its subsidiaries.

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.

 

The 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 for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

HARDY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation

The consolidated financial statements incorporate those of Hardy Group Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes. Subsidiaries disposed of during the year have their results incorporated until the date that control ceased.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.4
Going concern

The directors have considered the financial position of the company and group at 31 December 2023, management information to date and forecasts for a period of 12 months from the date of signing these financial statements. They have also considered the forthcoming sale of the group to the Atlas FM group and its impact on the business.

 

The directors have received a letter from Atlas FM Group Limited confirming that the group's business will continue as usual following the sale to Atlas FM Group, and that Atlas FM Group will offer any financial support which may be required for a period of a minimum of 12 months from the date of approval of these financial statements.

Taking into account all of the above, they consider that the company and group 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.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 

Revenue from industrial cleaning contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably.

 

Unbilled revenue from contracts represents the value of the work done in the year, including estimates of amounts not invoiced. Unbilled revenue is recognised by reference to the stage of completion of the contract.

HARDY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

1.7
Tangible fixed assets

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

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

Plant and machinery
25% reducing balance
Fixtures and fittings
25% reducing balance
Motor vehicles
25% reducing balance

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 recognised in the profit and loss account.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9
Impairment of fixed assets

At each reporting period end date, the group 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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

HARDY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.12
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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

All of the group's financial assets fall to be classed as basic financial assets and the group therefore has no other financial assets.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit 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 group 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.

HARDY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, 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

All of the group's financial liabilities fall to be classed as basic financial liabilities and the group therefore has no other financial liabilities.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group 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 group.

1.14
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

HARDY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

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.

1.16
Retirement benefits

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

1.17
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 profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.18
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.

HARDY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

Trade debtor recoverability

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.

Fixed asset investments

At each balance sheet date, management undertake an assessment of the carrying amounts of its fixed asset investments to determine where there is any indication that they have suffered an impairment loss. Where necessary, an impairment is recorded as an impairment loss.

3
Turnover and other revenue

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

2023
2022
£
£
Turnover analysed by class of business
Revenue from rendering of services
17,315,045
13,343,700
Recharges to related companies
3,602,706
4,050,138
20,917,751
17,393,838
2023
2022
£
£
Other revenue
Interest income
9,594
458
HARDY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Fees payable to the group's auditor for the audit of the group's financial statements
3,800
3,500
Depreciation of owned tangible fixed assets
148,216
84,459
Depreciation of tangible fixed assets held under finance leases
18,349
29,449
(Profit)/loss on disposal of tangible fixed assets
(5,219)
1,942
Amortisation of intangible assets
30,354
30,615
Operating lease charges
105,763
109,727
5
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Directors
6
7
2
2
Administrative and Productive
13
13
-
-
Operatives and other staff
666
558
-
-
Total
685
578
2
2

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
11,897,085
9,315,555
-
0
-
0
Social security costs
937,456
749,478
-
-
Pension costs
244,367
171,699
-
0
-
0
13,078,908
10,236,732
-
0
-
0
6
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
-
0
458
Other interest income
9,594
-
Total income
9,594
458
HARDY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Interest receivable and similar income
(Continued)
- 23 -
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
-
458
7
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
16,471
13,543
Interest on invoice finance arrangements
49,368
21,051
65,839
34,594
Other finance costs:
Interest on finance leases and hire purchase contracts
1,848
2,393
Total finance costs
67,687
36,987
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
184,295
26,965
Adjustments in respect of prior periods
-
0
(4,261)
Total current tax
184,295
22,704
Deferred tax
Origination and reversal of timing differences
(12,850)
43,126
Total tax charge
171,445
65,830
HARDY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Taxation
(Continued)
- 24 -

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
390,975
135,214
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
91,957
25,691
Tax effect of expenses that are not deductible in determining taxable profit
74,232
36,789
Tax effect of income not taxable in determining taxable profit
(877)
(8,308)
Adjustments in respect of prior years
-
0
(4,261)
Effect of change in corporation tax rate
(761)
10,350
Amortisation on assets not qualifying for tax allowances
6,894
5,569
Taxation charge
171,445
65,830
9
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
95,000
160,000
10
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
552,587
Amortisation and impairment
At 1 January 2023
444,785
Amortisation charged for the year
30,354
At 31 December 2023
475,139
Carrying amount
At 31 December 2023
77,448
At 31 December 2022
107,802
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
HARDY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
11
Tangible fixed assets
Group
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2023
468,473
132,296
327,913
928,682
Additions
105,763
10,401
62,730
178,894
Disposals
(20,564)
-
0
-
0
(20,564)
At 31 December 2023
553,672
142,697
390,643
1,087,012
Depreciation and impairment
At 1 January 2023
244,444
78,508
171,353
494,305
Depreciation charged in the year
95,478
22,358
48,729
166,565
Eliminated in respect of disposals
(10,386)
-
0
-
0
(10,386)
At 31 December 2023
329,536
100,866
220,082
650,484
Carrying amount
At 31 December 2023
224,136
41,831
170,561
436,528
At 31 December 2022
224,029
53,788
156,560
434,377
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Motor vehicles
69,418
88,346
-
0
-
0
12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
512,250
512,251
HARDY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Fixed asset investments
(Continued)
- 26 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023
512,251
Disposals
(1)
At 31 December 2023
512,250
Carrying amount
At 31 December 2023
512,250
At 31 December 2022
512,251
13
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Aston Services Group Limited
Same as parent
Ordinary
100.00
Care Facility Management Limited
Same as parent
Ordinary
100.00

Care Facility Management, which is a wholly owned subsidiary, was dormant throughout the financial year. It has therefore claimed exemption from audit under section 480 of the Companies Act 2006 for dormant companies.

14
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
30,000
15,000
-
0
-
0
15
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,867,016
2,998,968
-
0
-
0
Corporation tax recoverable
30,318
30,318
-
0
-
0
Other debtors
613,108
350,236
-
0
-
0
Prepayments and accrued income
156,310
296,434
-
0
-
0
4,666,752
3,675,956
-
-
HARDY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
16
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
18
55,556
55,556
-
0
-
0
Obligations under finance leases
19
26,513
26,760
-
0
-
0
Trade creditors
484,584
556,540
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
-
0
206,575
Corporation tax payable
184,352
27,331
-
0
-
0
Other taxation and social security
1,067,882
1,008,282
-
-
Other creditors
2,860,198
2,124,117
-
0
-
0
Accruals and deferred income
177,807
152,644
-
0
-
0
4,856,892
3,951,230
-
0
206,575

Included within creditors due within one year is a hire purchase liability which is secured over the assets of the subsidiary.

 

Included within other creditors due within one year is invoice financing of £1,086,202 (2022: £976,018) secured over the trade debtors of the subsidiary.

 

Included within bank loans due within one year £55,556 (2022: £55,556) is a CBILs loan which is secured 80% by the Government and is also secured over the assets of the subsidiary and a guarantee provided by a company under common control.

17
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
18
68,256
121,572
-
0
-
0
Obligations under finance leases
19
15,522
11,933
-
0
-
0
Other creditors
-
0
68,756
-
0
-
0
83,778
202,261
-
-

Included within creditors due after more than one year is a hire purchase liability which is secured over the assets of the company. Included within bank loans due after more than one year is £68,256 (2022: £121,572), in relation to a CBILs loan which is secured 80% by the Government and is also secured over the assets of the company and a guarantee provided by a company under common ownership.

HARDY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
18
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
123,812
177,128
-
0
-
0
Payable within one year
55,556
55,556
-
0
-
0
Payable after one year
68,256
121,572
-
0
-
0

The bank loan and overdraft are secured over the assets of the group.

19
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
26,513
38,693
-
0
-
0
In two to five years
15,522
-
0
-
0
-
0
42,035
38,693
-
-

Finance lease payments represent rentals payable by the group for certain motor vehicles and 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.

20
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
69,640
81,126
Pension contributions
(9,432)
(8,068)
60,208
73,058
The company has no deferred tax assets or liabilities.
HARDY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Deferred taxation
(Continued)
- 29 -
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
73,058
-
Credit to profit or loss
(12,850)
-
Liability at 31 December 2023
60,208
-

The deferred tax liability set out above is expected to reverse within 3 years and relates to accelerated capital allowances that are expected to mature within the same period.

21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
244,367
171,699

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

 

 

 

 

 

 

22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A ordinary shares of 1p each
91,240
91,240
912
912
B ordinary shares of 50p each
91,240
91,240
45,620
45,620
182,480
182,480
46,532
46,532
23
Financial commitments, guarantees and contingent liabilities

Hardy Group Limited has a fixed and floating charge to Clydesdale Bank PLC over the assets of the company.

HARDY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
24
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
21,352
21,352
-
-
Between two and five years
25,836
47,188
-
-
47,188
68,540
-
-
25
Events after the reporting date

The shareholders of Hardy Group, have accepted an offer for their shares in Aston Services Group from Atlas FM Group Limited. This deal is likely to be completed shortly after the signing of these financial statements but does not have any implications for the year ended 31 December 2023 but will lead to a change of ownership from the acquisition date.

26
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
225,624
202,130
Transactions with related parties

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

Purchases
Purchases
2023
2022
£
£
Group
Entities under common control
3,931,538
3,454,016
Management charges
Rent charges
2023
2022
2023
2022
£
£
£
£
Group
Entities under common control
44,000
48,000
37,500
37,500
HARDY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
26
Related party transactions
(Continued)
- 31 -

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Group
Entities under common control
400
5,600

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
Entities under common control
132,481
300,789
27
Directors' transactions

Advances and credits have been granted by the subsidiary to its directors as follows:

Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Loan to director
2.25
-
40,000
651
-
40,651
Loan to director
2.25
-
100,000
1,535
-
101,535
Loan to director
2.25
114,795
423,267
7,409
(116,000)
429,471
114,795
563,267
9,595
(116,000)
571,657
HARDY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
28
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
219,530
69,384
Adjustments for:
Taxation charged
171,445
65,830
Finance costs
67,687
36,987
Investment income
(9,594)
(458)
(Gain)/loss on disposal of tangible fixed assets
(5,219)
1,942
Amortisation and impairment of intangible assets
30,354
30,615
Depreciation and impairment of tangible fixed assets
166,565
113,908
Fair value adjustment to disposal group
-
165,648
Movements in working capital:
Increase in stocks
(15,000)
-
Increase in debtors
(533,935)
(1,369,261)
Increase in creditors
680,132
1,478,288
Cash generated from operations
771,965
592,883
29
Analysis of changes in net debt - group
1 January 2023
Cash flows
New finance leases
31 December 2023
£
£
£
£
Cash at bank and in hand
134,652
(78,734)
-
55,918
Borrowings excluding overdrafts
(177,128)
53,316
-
(123,812)
Obligations under finance leases
(38,693)
31,148
(34,490)
(42,035)
(81,169)
5,730
(34,490)
(109,929)

 

 

 

 

 

 

 

 

 

 

 

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