Company registration number 10166189 (England and Wales)
BHI GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
BHI GROUP LIMITED
COMPANY INFORMATION
Directors
D Simpson
S Branston
S Simpson
S Dennis
Company number
10166189
Registered office
BHI House
Bessemer Way
Rotherham
S60 1FB
Auditor
Hart Shaw LLP
Europa Link
Sheffield Business Park
Sheffield
S9 1XU
BHI GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Group statement of comprehensive income
10
Group balance sheet
11 - 12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Company statement of cash flows
17
Notes to the financial statements
18 - 39
BHI 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

Turnover has increased this year by 1.64% to £19,720,402. The directors consider the profit on ordinary activities before taxation to be expected in the light of difficult trading conditions.

 

The profit before tax from the various group activities in the year was £916,422 which was a good overall result the sharp increase in fuel costs accompanied with utility increases and economic uncertainties. The group continues to go from strength to strength with the acquisition in October 2023 of new premises to house both our transport operations. With this exciting move BHI Group Ltd can now offer a full distribution service to our customers complimented with a first-class warehousing facility. BHI Group Ltd are confident that with this investment we can drive both Hallam Express Ltd & 4S Distribution Ltd forward to a increase in revenue for 2024.

 

During 2023 Hallam Express Ltd also embarked on the journey to secure ISO9001 accreditation and successfully achieved this in February 2024, accompanied with the application to secure BRC Storage & Distribution Standard Accreditation in 2024.

 

The key financial highlights are as follows:

 

    2023     /    2022

 

Turnover         £19,720,402        £19,402,541

Turnover Growth (%)     1.64%            25.21%    

Gross Profit Margin         20.96%            20.40%

Profit before tax          £916,422     £3,964,902

Principal risks and uncertainties

BHI Group Ltd company acts as a holding Company.

The operating risks of the subsidiary Companies are managed and monitored by the board of each individual business.

Whilst some risks such as treasury risk are managed at a Group level, all our businesses are responsible for identifying, assessing, and managing the risks they face with appropriate assistance, review, and challenge from the Group functions as necessary.

Our risk management methodology is aimed at identifying the principal risks that could:

 

We seek to continue to improve the quality of risk management information generated by our businesses via quarterly board reviews and KPI monitoring, Securing ISO9001 in February 2024.

Actions taken on identified ongoing risks & uncertainty.

The Group continue to monitor the impact of rising fuel prices and driver shortages and identifies these areas as an ongoing risk to the stability of the businesses.

Fuel prices are reviewed on a weekly basis and following the introduction of a fuel matrix during 2022, surcharges are applied to our haulage services at a level which shares the impact with both us and the customer, whilst still ensuring we remain competitive in the market sector.

Demand for drivers continues to be a concern, the board have taken measures to ensure we offer our drivers a competitive remuneration packages with staff retention continuing to be maintained.

Inflationary impacts on the diversity of the Groups subsidiaries continue to be monitored at Group level via ongoing strategic reviews monthly.

BHI GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Promoting the success of the company

The directors in line with their duties under S172 of the companies act 2006, act individually and collectively in the way they consider what, in good faith, would be the most likely to promote the success of the company for the benefit of its members, and in doing so have regard, amongst other matters, to the :

 

 

Stakeholders engagement

The company’s business strategy is focused on achieving business success for the company in the long term. In setting this strategy, the board considers their duty to promote the success of the company for the benefit of its shareholders whilst having regard to other stakeholders.

 

The board regularly discusses issues concerning employees, customers, suppliers, community and environment, regulators, and its shareholder. All of these are taken into account in its discussions and its decision-making progress.

In addition to this, the board seeks to understand the interests and views of the company’s stakeholders by engaging with them directly when required.

 

The following section summarises the key stakeholders and how we engage with each:

Employees

Our employees contribute to a positive working culture and healthy working environment. Employees are key to the success of our business. In addition to aiming to be a responsible employer in our approach to pay and benefits, we continue to engage with our teams to ascertain the training and development opportunities that should be made available to income productivity and our individual employees potential within the business.

 

Our culture invites different perspectives, new ideas and opportunities for growth. We work hard to ensure employees feel welcome and are valued for their hard work.

Customers

By partnering with our customers, we create solutions for the future. It is essential that we can consistently and continuously design and offer innovative, high-quality services and products to new and existing customers at and accessible price. In doing so we will build our brand value and loyalty.

 

We are in regular contact with our customers to understand their requirements and ensure that service levels are maintained to a high standard. This communication includes regular update calls or face to face meetings depending on the customers preference and location.

 

We actively encourage customer feedback to further improve our service levels.

 

Suppliers

We work with a wide range of suppliers both in the UK and globally. We remain committed to being fair and transparent in our dealings with all our suppliers.

 

Our suppliers are fundamental to the quality of our products and services. Having a range of suppliers that constitute successful partnerships ensure value for the business and provides resilience in case of supply chain disruption.

BHI GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Community and Environment

The boards approach to social responsibility, diversity and the community is of high importance.

 

Regulators

We work with our regulators and the government in an open and proactive manner.

 

The boards intention is to behave responsibly and to ensure that the management team operates the business in a responsible manner, acting with the high standards and good governance expected of a business like ours. In doing so, we believe we will achieve our long term- business strategy and further develop our reputation in our sector.

 

Shareholders

The board also seeks to behave in a responsible manner towards our shareholders. The board regularly communicates information relevant to its shareholders, such as financial reporting, capex requirements and business growth strategies.

 

Through our engagement activities we strive to obtain investor buy-in to our strategic objectives and how we go about executing them.

 

On behalf of the board

D Simpson
Director
19 June 2024
BHI GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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

Principal activities

The principal activities of the group include haulage, property development and letting and the provision of storage and warehousing facilities.

Results and dividends

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £42,000. 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:

D Simpson
S Branston
S Simpson
S Dennis
Auditor

Hart Shaw LLP were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Strategic Report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group'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.

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
D Simpson
Director
19 June 2024
BHI 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.

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

Qualified opinion

We have audited the financial statements of BHI 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, the company 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, except for the effects of the matter described in the basis for qualified opinion paragraph, the financial statements:

Basis for qualified opinion

Although Hart Shaw LLP have produced the financial statements for a number of years BHI Group Limited only required a statutory audit for the first time for the year ended 31 December 2022. The balance sheet as at 31 December 2021 was not audited and we were unable to carry out procedures to audit this balance sheet. Consequently we were unable to determine whether there were any matters which would impact the profit and loss account for the year ended 31 December 2022. Our audit opinion on the financial statements for the year ended 31 December 2022 was modified accordingly. Our opinion on the current year's financial statements is also modified because of the possible effect of this matter on the comparability of the current year's figures and the corresponding figures.

 

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 qualified 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.

BHI GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BHI GROUP LIMITED
- 7 -

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.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

 

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

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.

Extent to which the audit was considered capable of detecting irregularities, including fraud and the audit response

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:

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

At the planning stage we identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with the directors and other management, as required by auditing standards. The potential effect of any laws and regulation on the financial statements can vary considerably. There are laws and regulations that directly affect the financial statements (e.g. the Companies Act) as well as many other operational laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements. Owing to the size, nature and complexity of the organisation and the applicable laws and regulations to which it must adhere, the risk of material misstatement was deemed to be low.

Therefore the procedures performed by the audit team were limited to:

 

 

We have assessed the overall susceptibility of the financial statements to material misstatement due to fraud as low because the nature of the business does not particularly lend itself to fraud.

Management override is inherently high risk on any audit. Management override, which may cause there to be a material misstatement within the financial statements, may present itself in a number of ways, for example:

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected material misstatements in the financial statements, even though we have performed our audit in accordance with auditing standards. Furthermore, as with all audits, there is a higher risk of irregularities (especially those relating to fraud) being undetected, as these may involve the override of internal controls, collusion, intentional omissions and misrepresentations etc. We are not responsible for preventing non-compliance or fraud and therefore cannot be expected to detect all instances of such. Our audit was not designed to identify misstatements or other irregularities that would not be considered to be material to the financial statements. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

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.

BHI GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BHI GROUP LIMITED
- 9 -

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.

Martin McDonagh (Senior Statutory Auditor)
For and on behalf of Hart Shaw LLP
11 September 2024
Chartered Accountants
Statutory Auditor
Europa Link
Sheffield Business Park
Sheffield
S9 1XU
BHI GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
Turnover
3
19,720,402
19,402,541
Cost of sales
(15,586,541)
(15,444,409)
Gross profit
4,133,861
3,958,132
Administrative expenses
(2,866,593)
(2,196,319)
Other operating income
17,083
25,900
Operating profit
4
1,284,351
1,787,713
Share of results of associates
(14,482)
70,315
Interest receivable and similar income
8
1,397
1,116
Interest payable and similar expenses
9
(354,844)
(120,379)
Fair value gains and losses on investment properties
14
-
0
2,226,137
Profit before taxation
916,422
3,964,902
Tax on profit
10
(215,381)
(968,475)
Profit for the financial year
31
701,041
2,996,427
Other comprehensive income
Revaluation of tangible fixed assets
1,630,164
-
0
Tax relating to other comprehensive income
(407,500)
-
0
Total comprehensive income for the year
1,923,705
2,996,427
Profit for the financial year is attributable to:
- Owner of the parent company
541,455
2,644,197
- Non-controlling interests
159,586
352,230
701,041
2,996,427
Total comprehensive income for the year is attributable to:
- Owner of the parent company
1,764,119
2,644,197
- Non-controlling interests
159,586
352,230
1,923,705
2,996,427
BHI GROUP LIMITED
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
-
0
280,708
Negative goodwill
12
-
0
(1,415,413)
Net goodwill
-
(1,134,705)
Tangible assets
13
16,301,077
5,506,580
Investment property
14
6,133,500
6,133,500
Investments
15
45,915
60,397
22,480,492
10,565,772
Current assets
Stocks
19
1,117,667
1,078,348
Debtors
20
4,345,271
2,979,545
Cash at bank and in hand
385,935
1,150,962
5,848,873
5,208,855
Creditors: amounts falling due within one year
21
(6,578,665)
(3,748,021)
Net current (liabilities)/assets
(729,792)
1,460,834
Total assets less current liabilities
21,750,700
12,026,606
Creditors: amounts falling due after more than one year
22
(9,124,418)
(2,990,134)
Provisions for liabilities
Deferred tax liability
25
2,217,100
1,643,700
(2,217,100)
(1,643,700)
Net assets
10,409,182
7,392,772
Capital and reserves
Called up share capital
28
100
100
Share premium account
29
1,729,313
1,729,313
Revaluation reserve
30
1,222,664
-
0
Profit and loss reserves
31
6,104,460
4,470,300
Equity attributable to owner of the parent company
9,056,537
6,199,713
Non-controlling interests
1,352,645
1,193,059
10,409,182
7,392,772

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

BHI GROUP LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023
31 December 2023
- 12 -
The financial statements were approved by the board of directors and authorised for issue on 19 June 2024 and are signed on its behalf by:
19 June 2024
D Simpson
Director
Company registration number 10166189 (England and Wales)
BHI GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 13 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
15
3,931,156
3,931,156
Current assets
Debtors
20
3,370,381
2,509,987
Cash at bank and in hand
8,016
290,114
3,378,397
2,800,101
Creditors: amounts falling due within one year
21
(2,179,536)
(1,549,893)
Net current assets
1,198,861
1,250,208
Net assets
5,130,017
5,181,364
Capital and reserves
Called up share capital
28
100
100
Share premium account
29
1,729,313
1,729,313
Profit and loss reserves
31
3,400,604
3,451,951
Total equity
5,130,017
5,181,364

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £9,347 (2022 - £12,080 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 19 June 2024 and are signed on its behalf by:
19 June 2024
D Simpson
Director
Company registration number 10166189 (England and Wales)
BHI GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
£
Balance at 1 January 2022
100
1,729,313
-
0
1,956,603
3,686,016
840,829
4,526,845
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
-
2,644,197
2,644,197
352,230
2,996,427
Dividends
11
-
-
-
(130,500)
(130,500)
-
(130,500)
Balance at 31 December 2022
100
1,729,313
-
0
4,470,300
6,199,713
1,193,059
7,392,772
Year ended 31 December 2023:
Profit for the year
-
-
-
541,455
541,455
159,586
701,041
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
1,630,164
-
1,630,164
-
1,630,164
Tax relating to other comprehensive income
-
-
(407,500)
-
0
(407,500)
-
(407,500)
Total comprehensive income
-
-
1,222,664
541,455
1,764,119
159,586
1,923,705
Dividends
11
-
-
-
(42,000)
(42,000)
-
(42,000)
Goodwill written off
-
-
-
(280,708)
(280,708)
-
(280,708)
Negative goodwill written off
-
-
-
1,415,413
1,415,413
-
1,415,413
Balance at 31 December 2023
100
1,729,313
1,222,664
6,104,460
9,056,537
1,352,645
10,409,182
BHI GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
100
1,729,313
3,570,371
5,299,784
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
12,080
12,080
Dividends
11
-
-
(130,500)
(130,500)
Balance at 31 December 2022
100
1,729,313
3,451,951
5,181,364
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
(9,347)
(9,347)
Dividends
11
-
-
(42,000)
(42,000)
Balance at 31 December 2023
100
1,729,313
3,400,604
5,130,017
BHI GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
33
1,865,694
3,075,038
Interest paid
(354,844)
(120,379)
Income taxes paid
(76,520)
(100,576)
Net cash inflow from operating activities
1,434,330
2,854,083
Investing activities
Purchase of tangible fixed assets
(7,868,117)
(540,425)
Proceeds from disposal of tangible fixed assets
138,978
144,000
Interest received
1,397
1,116
Net cash used in investing activities
(7,727,742)
(395,309)
Financing activities
Repayment of borrowings
-
(179,281)
Proceeds from new bank loans
7,870,000
-
Repayment of bank loans
(1,757,456)
(119,033)
Payment of finance leases obligations
(2,010,518)
(744,288)
Dividends paid to equity shareholders
(42,000)
(130,500)
Net cash generated from/(used in) financing activities
4,060,026
(1,173,102)
Net (decrease)/increase in cash and cash equivalents
(2,233,386)
1,285,672
Cash and cash equivalents at beginning of year
1,150,944
(134,728)
Cash and cash equivalents at end of year
(1,082,442)
1,150,944
Relating to:
Cash at bank and in hand
385,935
1,150,962
Bank overdrafts included in creditors payable within one year
(1,468,377)
(18)
BHI GROUP LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
34
(247,281)
385,156
Income taxes refunded
6,848
-
0
Net cash (outflow)/inflow from operating activities
(240,433)
385,156
Investing activities
Proceeds from disposal of subsidiaries
-
0
(50,250)
Proceeds from disposal of associates
-
0
50,250
Interest received
335
1,041
Dividends received
-
0
25,000
Net cash generated from investing activities
335
26,041
Financing activities
Dividends paid to equity shareholders
(42,000)
(130,500)
Net cash used in financing activities
(42,000)
(130,500)
Net (decrease)/increase in cash and cash equivalents
(282,098)
280,697
Cash and cash equivalents at beginning of year
290,114
9,417
Cash and cash equivalents at end of year
8,016
290,114
BHI GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
1
Accounting policies
Company information

BHI Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is The Distribution Depot, Hydra Business Park, Nether Lane, Sheffield, S35 9ZX.

 

The group consists of BHI Group Limited and all of 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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

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.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company BHI Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

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.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

BHI GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the 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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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.

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.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

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.

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

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:

Land and buildings - Golf Club
2% straight line
Land and buildings - Bessemer Way
2% straight line
Plant and equipment
between 1 and 10 years straight line
Fixtures and fittings
between 3 and 4 years straight line
Computers
between 3 and 4 years straight line
Motor vehicles
between 2 and 10 years 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 recognised in the profit and loss account.

 

Freehold land is not depreciated.

 

The golf club's residual value is expected to be greater than cost, therefore no depreciation has been charged in the current year.

 

Bessemer Way has been revalued in the year and therefore no depreciation has been charged in the current year.

1.8
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

1.9
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.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

BHI GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.10
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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

 

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, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.11
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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

1.12
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.

BHI GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
1.13
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

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

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

 

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

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.

BHI GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 23 -
Basic financial liabilities

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

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.14
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.

1.15
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.

BHI GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 24 -
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.

1.16
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.

1.17
Retirement benefits

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

1.18
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.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

BHI GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 25 -
1.19
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

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.

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.

Investment property valuation

The valuation of investment properties is a significant estimate and the valuation has been obtained from independent experts using information on the tenancy agreements in place and assuming that there is a reasonable marketing period of twelve months.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Provision of services
18,192,493
17,644,712
Sale of goods
817,642
824,918
Sale of residential properties
-
330,000
Rental income
710,267
602,911
19,720,402
19,402,541
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
19,720,402
19,402,541
BHI GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 26 -
2023
2022
£
£
Other revenue
Interest income
1,397
1,116
Grants received
-
6,477
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
-
(6,477)
Depreciation of owned tangible fixed assets
1,173,511
782,548
Loss/(profit) on disposal of tangible fixed assets
8,765
(26,079)
Operating lease charges
126,365
309,321
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
50,700
53,900
6
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
173
166
4
4

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
5,207,495
4,647,547
-
0
-
0
Social security costs
490,204
467,470
-
-
Pension costs
96,147
89,031
-
0
-
0
5,793,846
5,204,048
-
0
-
0
BHI GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
263,773
140,926
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
80,000
61,800
Company pension contributions to defined contribution schemes
1,950
-
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
1,397
75
Interest receivable from group companies
-
0
1,041
Total income
1,397
1,116
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
1,397
1,116
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
151,218
49,220
Other interest on financial liabilities
1,113
990
152,331
50,210
Other finance costs:
Interest on finance leases and hire purchase contracts
199,955
65,359
Other interest
2,558
4,810
Total finance costs
354,844
120,379
BHI GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
48,436
75,475
Adjustments in respect of prior periods
1,045
-
0
Total current tax
49,481
75,475
Deferred tax
Origination and reversal of timing differences
165,900
893,000
Total tax charge
215,381
968,475

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
916,422
3,964,902
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
215,359
753,331
Tax effect of expenses that are not deductible in determining taxable profit
2,122
12,943
Tax effect of income not taxable in determining taxable profit
(12,057)
(13,519)
Gains not taxable
-
0
(422,966)
Unutilised tax losses carried forward
(43,086)
36,946
Adjustments in respect of prior years
1,045
-
0
Effect of change in corporation tax rate
16,065
-
Permanent capital allowances in excess of depreciation
(129,967)
(291,260)
Deferred tax
165,900
893,000
Taxation charge
215,381
968,475

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2023
2022
£
£
Deferred tax arising on:
Revaluation of property
407,500
-
BHI GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
42,000
130,500
12
Intangible fixed assets
Group
Goodwill
Negative goodwill
Total
£
£
£
Cost
At 1 January 2023
290,708
(1,415,413)
(1,124,705)
Other changes
(280,708)
1,415,413
(280,708)
At 31 December 2023
10,000
-
0
10,000
Amortisation and impairment
At 1 January 2023 and 31 December 2023
10,000
-
0
10,000
Carrying amount
At 31 December 2023
-
0
-
0
-
0
At 31 December 2022
280,708
(1,415,413)
(1,134,705)
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
BHI GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
13
Tangible fixed assets
Group
Land and buildings - Golf Club
Land and buildings - Bessemer Way
Assets under construction
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
£
Cost
At 1 January 2023
1,272,611
-
0
139,068
682,701
77,634
87,332
5,626,208
7,885,554
Additions
320,271
7,485,587
14,743
224,062
187,253
18,627
2,235,044
10,485,587
Disposals
-
0
-
0
(2,233)
(26,579)
-
0
(501)
(234,250)
(263,563)
Revaluation
-
0
1,630,164
-
0
-
0
-
0
-
0
-
0
1,630,164
Transfers
92,234
-
0
(151,578)
59,344
-
0
-
0
-
0
-
0
At 31 December 2023
1,685,116
9,115,751
-
0
939,528
264,887
105,458
7,627,002
19,737,742
Depreciation and impairment
At 1 January 2023
-
0
-
0
-
0
435,653
62,382
64,401
1,816,538
2,378,974
Depreciation charged in the year
-
0
-
0
-
0
125,577
17,746
13,362
1,016,826
1,173,511
Eliminated in respect of disposals
-
0
-
0
-
0
(18,727)
-
0
(432)
(96,661)
(115,820)
At 31 December 2023
-
0
-
0
-
0
542,503
80,128
77,331
2,736,703
3,436,665
Carrying amount
At 31 December 2023
1,685,116
9,115,751
-
0
397,025
184,759
28,127
4,890,299
16,301,077
At 31 December 2022
1,272,611
-
0
139,068
247,048
15,252
22,931
3,809,670
5,506,580
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
BHI GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
14
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 January 2023 and 31 December 2023
6,133,500
-

The fair value of the investment property has been arrived at on the basis of a valuation carried out on 11 April 2023 by Eddisons Chartered Surveyors, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

15
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
3,931,106
3,931,106
Investments in associates
17
45,915
60,397
50
50
45,915
60,397
3,931,156
3,931,156
Movements in fixed asset investments
Group
Shares in associates
£
Cost or valuation
At 1 January 2023
60,397
Valuation changes
(14,482)
At 31 December 2023
45,915
Carrying amount
At 31 December 2023
45,915
At 31 December 2022
60,397
BHI GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
15
Fixed asset investments
(Continued)
- 32 -
Movements in fixed asset investments
Company
Shares in subsidiaries and associates
£
Cost or valuation
At 1 January 2023 and 31 December 2023
3,931,156
Carrying amount
At 31 December 2023
3,931,156
At 31 December 2022
3,931,156
16
Subsidiaries

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

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
4S Distribution Limited
BHI House, Bessemer Way, Rotherham, S60 1FB
Haulage services
Ordinary
100.00
Blue Star Fleet Services
As above
Sale and rental of motor vehicles
Ordinary
100.00
Hallam Express Limited
As above
Haulage services
Ordinary
50.00
Hydra Park Properties Limited
As above
Storage facilities
Ordinary
100.00
Styrrup Hall Golf and Country Club Limited
As above
Golf club
Ordinary
100.00
17
Associates

Details of associates at 31 December 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Hallam Park Estates Limited
As above
Property development
Ordinary
50
BHI GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
18
Financial instruments
Group
Company
2023
2022
2023
2022
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
3,657,112
2,574,240
n/a
n/a
Carrying amount of financial liabilities
Measured at amortised cost
14,857,540
6,169,265
n/a
n/a

As permitted by the reduced disclosure framework within FRS 102, the company has taken advantage of the exemption from disclosing the carrying amount of certain classes of financial instruments, denoted by 'n/a' above.

 

19
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Work in progress
1,081,189
1,023,319
-
-
Finished goods and goods for resale
36,478
55,029
-
0
-
0
1,117,667
1,078,348
-
-
20
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,270,990
2,563,832
-
0
-
0
Corporation tax recoverable
67,831
-
0
-
0
-
0
Amounts owed by group undertakings
-
-
3,194,914
2,509,987
Other debtors
386,122
38,865
175,467
-
0
Prepayments and accrued income
620,328
376,848
-
0
-
0
4,345,271
2,979,545
3,370,381
2,509,987
BHI GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 34 -
21
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
23
2,009,572
116,066
-
0
-
0
Obligations under finance leases
24
1,139,544
979,479
-
0
-
0
Trade creditors
1,607,870
1,167,951
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
137,500
66,640
Amounts owed to undertakings in which the group has a participating interest
-
0
-
0
1,405,000
800,200
Corporation tax payable
116,407
75,615
-
0
-
0
Other taxation and social security
560,128
355,539
-
-
Deferred income
26
169,008
137,736
-
0
-
0
Other creditors
769,558
780,180
627,036
670,053
Accruals
206,578
135,455
10,000
13,000
6,578,665
3,748,021
2,179,536
1,549,893

The bank loan outstanding of £531,195 (2022: £106,048) is secured against the Hydra Business Park and Bessemer Way. The original advance was £3,045,000 at an interest rate of the base rate plus 1.65%.

 

Obligations under finance lease are secured against the assets to which they belong.

22
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
23
6,928,251
1,240,854
-
0
-
0
Obligations under finance leases
24
2,196,167
1,749,280
-
0
-
0
9,124,418
2,990,134
-
-

The bank loan outstanding of £6,914,089 (2022: £1,216,044) is secured against the Hydra Business Park and Bessemer Way. The original advance was £3,045,000 at an interest rate of the base rate plus 1.65%.

 

Obligations under finance lease are secured against the assets to which they belong.

Amounts included above which fall due after five years are as follows:
Payable by instalments
706,805
774,110
-
-
BHI GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 35 -
23
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
7,469,446
1,356,902
-
0
-
0
Bank overdrafts
1,468,377
18
-
0
-
0
8,937,823
1,356,920
-
-
Payable within one year
2,009,572
116,066
-
0
-
0
Payable after one year
6,928,251
1,240,854
-
0
-
0

The long-term loans are secured against the Hydra Business Park.

At the year end, the group has 5 loans outstanding with the bank. Interest is charged at rates between 0.3% and 0.5% above the Bank of England base rate.

24
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
1,139,544
979,479
-
0
-
0
In two to five years
2,196,167
1,749,280
-
0
-
0
3,335,711
2,728,759
-
-

Finance lease payments represent rentals payable by the company or group 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 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

25
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
1,210,600
1,044,700
Revaluations
407,500
-
Investment property
599,000
599,000
2,217,100
1,643,700
The company has no deferred tax assets or liabilities.
BHI GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
25
Deferred taxation
(Continued)
- 36 -
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
1,643,700
-
Charge to profit or loss
165,900
-
Charge to other comprehensive income
407,500
-
Liability at 31 December 2023
2,217,100
-

The deferred tax liability set out above is expected to reverse within the next few years and relates to accelerated capital allowances that are expected to mature within the same period. The deferred tax due on the revaluation of the properties is expected to mature when the properties are sold.

26
Deferred income
Group
Company
2023
2022
2023
2022
£
£
£
£
Other deferred income
169,008
137,736
-
-
27
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
96,147
89,031

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.

28
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
29
Share premium account
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning and end of the year
1,729,313
1,729,313
1,729,313
1,729,313
BHI GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 37 -
30
Revaluation reserve
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
-
0
-
0
-
0
-
0
Revaluation surplus arising in the year
1,630,164
-
0
-
0
-
0
Deferred tax on revaluation of tangible assets
(407,500)
-
-
-
At the end of the year
1,222,664
-
-
0
-
31
Profit and loss reserves
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
4,470,300
1,956,603
3,451,951
3,570,371
Profit/(loss) for the year
541,455
2,644,197
(9,347)
12,080
Dividends
(42,000)
(130,500)
(42,000)
(130,500)
Other movements
1,134,705
-
-
-
At the end of the year
6,104,460
4,470,300
3,400,604
3,451,951
32
Related party transactions
Transactions with related parties

Under the FRS 102 accounting standard Section 33.1A, disclosure need not be given of transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.

 

During the year the company entered into the following transactions with related parties (excluding those transactions with its wholly owned group members):

Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Group
Entities over which the group has control, joint control or significant influence
846,736
320,570
340,704
235,906

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Group
Entities over which the group has control, joint control or significant influence
2,325,004
851,699
BHI GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
32
Related party transactions
(Continued)
- 38 -

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
Entities over which the group has control, joint control or significant influence
331,284
51,265
33
Cash generated from operations - group
2023
2022
£
£
Profit for the year after tax
701,041
2,996,427
Adjustments for:
Share of results of associates and joint ventures
14,482
(70,315)
Taxation charged
215,381
968,475
Finance costs
354,844
120,379
Investment income
(1,397)
(1,116)
Loss/(gain) on disposal of tangible fixed assets
8,765
(26,079)
Fair value gain on investment properties
-
0
(2,226,137)
Depreciation and impairment of tangible fixed assets
1,173,511
782,548
Movements in working capital:
(Increase)/decrease in stocks
(39,319)
193,637
(Increase)/decrease in debtors
(1,297,895)
406,802
Increase/(decrease) in creditors
705,009
(85,994)
Increase in deferred income
31,272
16,411
Cash generated from operations
1,865,694
3,075,038
34
Cash (absorbed by)/generated from operations - company
2023
2022
£
£
(Loss)/profit for the year after tax
(9,347)
12,080
Adjustments for:
Taxation credited
(6,848)
-
0
Investment income
(335)
(26,041)
Movements in working capital:
(Increase)/decrease in debtors
(860,394)
806,065
Increase/(decrease) in creditors
629,643
(406,948)
Cash (absorbed by)/generated from operations
(247,281)
385,156
BHI GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 39 -
35
Analysis of changes in net debt - group
1 January 2023
Cash flows
New finance leases
31 December 2023
£
£
£
£
Cash at bank and in hand
1,150,962
(765,027)
-
385,935
Bank overdrafts
(18)
(1,468,359)
-
(1,468,377)
1,150,944
(2,233,386)
-
(1,082,442)
Borrowings excluding overdrafts
(1,356,902)
(6,112,544)
-
(7,469,446)
Obligations under finance leases
(2,728,759)
2,010,518
(2,617,470)
(3,335,711)
(2,934,717)
(6,335,412)
(2,617,470)
(11,887,599)
36
Analysis of changes in net funds - company
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
290,114
(282,098)
8,016
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