Company registration number 00255259 (England and Wales)
HOWARD BUTLER LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
HOWARD BUTLER LIMITED
COMPANY INFORMATION
Directors
Mr P M Collins
Mr H J C Taylor
Mr M Collins
Secretary
Mrs A C Collins
Company number
00255259
Registered office
Crown Works
Lincoln Road
Walsall
West Midlands
WS1 2EB
Auditor
Edwards
34 High Street
Aldridge
Walsall
West Midlands
WS9 8LZ
HOWARD BUTLER LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of income and retained earnings
7
Balance sheet
8
Notes to the financial statements
9 - 20
HOWARD BUTLER LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

Review of the business

We aim to present a balanced review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and nature of our business and is written in the context of the risks and uncertainties which we face.

 

The directors are pleased with the trading results to 31 March 2024. Despite the competitive nature of the business and the extremely difficult trading conditions resulting in a fall in turnover of 3 per cent, we managed to improve gross margins and achieve a satisfactory net profit before tax, albeit 7 per cent lower than the previous year. On 1 April 2023, Unicores became a division of Howard Butler Limited.

Principal risks and uncertainties

As for many businesses of our size and nature the business environment in which we operate continues to be challenging and unpredictable. The market is highly competitive and often volatile and margins are continually under pressure whilst we are facing the additional problems and uncertainties brought about by the Covid-19 pandemic, Brexit and the Ukraine conflict. The key business risks affecting the company at present are exchange rate variances, cost inflation, energy prices, and labour and material supply. The company is mitigating the risk by management constantly reviewing them and where possible making savings.

 

However with our strong management team, the continuing research into new production methods, products and markets and our experience of dealing with challenging trading conditions we consider that the company is in a strong position to maintain its leading position in the industry and to take advantage of better market conditions whenever they return.

Development and performance

Since the year end the company, in common with many sectors, has continued to experience difficult trading conditions as referred to above, but continues to develop its product range through research and development and seeking new markets. Despite these conditions management accounts for the period to date indicate continued profitable trading.

 

However, we remain aware that all plans and projections are subject to unforeseen national and international events outside of our control but we are confident that we have the management team in place with the expertise to adapt to the prevailing conditions.

Key performance indicators

The directors monitor the progress of the company and the implementation of its strategy by reference to key performance indicators. The indicators employed include turnover, materials purchased, margins, profitability and cash flow.

On behalf of the board

Mr M Collins
Director
12 September 2024
HOWARD BUTLER LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the company continued to be that of the manufacture of electrical and electronic instruments, current transformers and accessories.

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a final 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 P M Collins
Mr H J C Taylor
Mr M Collins
Auditor

Edwards were appointed as auditor to the company 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.

Statement of disclosure to auditor

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

Medium-sized companies exemption

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

On behalf of the board
Mr M Collins
Director
12 September 2024
HOWARD BUTLER LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

HOWARD BUTLER LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF HOWARD BUTLER LIMITED
- 4 -
Opinion

We have audited the financial statements of Howard Butler Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of income and retained earnings, the balance sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

HOWARD BUTLER LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF HOWARD BUTLER LIMITED (CONTINUED)
- 5 -
Matters on which we are required to report by exception

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

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

We obtained an understanding of the legal and regulatory frameworks within which the Company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, taxation legislation, ISO 9001, Underwriters Laboratories standards and health & safety regulations compliance.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be in the following areas: recognition of income, the override of controls by management, revenue journals, inappropriate treatment of non-routine transactions and areas of estimation uncertainty specifically relating to the valuation of work in progress. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, review and discussion of non-routine transactions, sample testing on the posting of journals and review of accounting estimates for biases.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

HOWARD BUTLER LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF HOWARD BUTLER LIMITED (CONTINUED)
- 6 -

Use of our report

This report is made solely to the company's member in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.

Robert Kempson ACA
Senior Statutory Auditor
For and on behalf of Edwards
12 September 2024
Chartered Accountants
Statutory Auditor
34 High Street
Aldridge
Walsall
West Midlands
WS9 8LZ
HOWARD BUTLER LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
9,892,741
10,221,058
Cost of sales
(7,135,431)
(7,540,684)
Gross profit
2,757,310
2,680,374
Administrative expenses
(1,696,792)
(1,534,339)
Operating profit
4
1,060,518
1,146,035
Interest receivable and similar income
7
1,068
9,131
Interest payable and similar expenses
8
(2,489)
-
0
Investments fair value movements
9
3,790
(1,961)
Profit before taxation
1,062,887
1,153,205
Tax on profit
10
(334,316)
(176,348)
Profit for the financial year
728,571
976,857
Retained earnings brought forward
4,623,260
3,646,403
Retained earnings carried forward
5,351,831
4,623,260

The statement of income and retained earnings has been prepared on the basis that all operations are continuing operations.

HOWARD BUTLER LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
290,671
246,965
Investments
12
1,061,312
1,121,312
1,351,983
1,368,277
Current assets
Stocks
15
1,074,432
1,281,256
Debtors
16
4,686,033
3,289,502
Investments
17
43,648
39,858
Cash at bank and in hand
863,284
862,786
6,667,397
5,473,402
Creditors: amounts falling due within one year
18
(2,495,839)
(2,031,359)
Net current assets
4,171,558
3,442,043
Total assets less current liabilities
5,523,541
4,810,320
Creditors: amounts falling due after more than one year
19
(15,000)
(32,000)
Provisions for liabilities
Deferred tax liability
20
57,000
55,350
(57,000)
(55,350)
Net assets
5,451,541
4,722,970
Capital and reserves
Called up share capital
22
76,460
76,460
Capital redemption reserve
23,250
23,250
Profit and loss reserves
5,351,831
4,623,260
Total equity
5,451,541
4,722,970

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 12 September 2024 and are signed on its behalf by:
Mr M Collins
Director
Company registration number 00255259 (England and Wales)
HOWARD BUTLER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
1
Accounting policies
Company information

Howard Butler Limited is a private company limited by shares incorporated in England and Wales. The registered office is Crown Works, Lincoln Road, Walsall, West Midlands, WS1 2EB.

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 certain financial instruments at fair value. The principal accounting policies adopted are set out below.

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

 

 

The financial statements of the company are consolidated in the financial statements of Hobut Limited. These consolidated financial statements are available from its registered office, Crown Works, Lincoln Road, Walsall WS1 2EB.

1.2
Going concern

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

1.3
Turnover

Turnover 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.

HOWARD BUTLER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 10 -
1.4
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 equipment
20% straight line
Fixtures and fittings
25% straight line
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 credited or charged to profit or loss.

1.5
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. 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 company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

 

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.

HOWARD BUTLER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 11 -
1.7
Stocks and work in progress

Stocks and work in progress 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.

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.

1.8
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.

1.9
Financial instruments

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

 

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

 

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

Basic financial assets

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

Other financial assets

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.

HOWARD BUTLER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 12 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

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 company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

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

1.11
Taxation

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

HOWARD BUTLER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
Current tax

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

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 when the company has 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.

1.12
Employee benefits

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

 

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

 

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

1.13
Retirement benefits

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

1.14
Leases

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 leases asset are consumed.

1.15
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.

1.16

Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

HOWARD BUTLER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
2
Judgements and key sources of estimation uncertainty

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

 

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

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.

Work in progress

Management review work in progress at the year end in order to obtain an estimated valuation of the work complete. Management recognise profits based on an estimate of percentage complete at the year end date.

3
Turnover
2024
2023
£
£
Turnover analysed by geographical market
UK
3,886,604
4,595,061
Europe
665,883
240,641
Rest of World
5,340,254
5,385,356
9,892,741
10,221,058
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
27,074
22,404
Fees payable to the company's auditor for the audit of the company's financial statements
6,000
3,000
Depreciation of owned tangible fixed assets
120,313
99,077
(Profit)/loss on disposal of tangible fixed assets
(7,467)
1,029
Operating lease charges
84,500
75,000
HOWARD BUTLER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
5
Employees

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

2024
2023
Number
Number
Employees
135
127
Directors
3
3
Total
138
130

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
3,227,436
2,745,192
Social security costs
240,986
220,664
Pension costs
229,324
212,483
3,697,746
3,178,339
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
193,194
198,576
Company pension contributions to defined contribution schemes
35,000
30,000
228,194
228,576

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 2).

7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
1,068
9,131
8
Interest payable and similar expenses
2024
2023
£
£
Other interest
2,489
-
0
HOWARD BUTLER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
9
Amounts written off investments
2024
2023
£
£
Other gains and losses
3,790
(1,961)
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
255,894
168,998
Adjustments in respect of prior periods
76,772
-
0
Total current tax
332,666
168,998
Deferred tax
Origination and reversal of timing differences
1,650
7,350
Total tax charge
334,316
176,348

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:

2024
2023
£
£
Profit before taxation
1,062,887
1,153,205
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
265,722
219,109
Tax effect of expenses that are not deductible in determining taxable profit
(179)
-
0
Tax effect of utilisation of tax losses not previously recognised
(7,051)
-
0
Adjustments in respect of prior years
76,772
-
0
Research and development tax credit
-
0
(40,000)
Deferred tax adjustments in respect of prior years
-
0
(200)
Change in tax rate
-
0
1,764
Enhanced Capital Allowances
-
0
(3,271)
Under/ (over) provided in current year
-
0
(1,425)
Gains/(losses) on financial instruments
(948)
371
Taxation charge for the year
334,316
176,348

Factors affecting the tax charges

On 1 April 2023 the UK Corporation Tax main rate increased from 19% to 25%.

 

There were no other factors that may affect future tax charges.

HOWARD BUTLER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
11
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2023
1,751,026
269,190
121,495
2,141,711
Additions
104,131
-
0
68,500
172,631
Disposals
-
0
-
0
(38,940)
(38,940)
Transfer from subsidiary
2,421
-
0
-
0
2,421
At 31 March 2024
1,857,578
269,190
151,055
2,277,823
Depreciation and impairment
At 1 April 2023
1,577,141
259,623
57,982
1,894,746
Depreciation charged in the year
88,298
1,410
30,605
120,313
Eliminated in respect of disposals
-
0
-
0
(27,907)
(27,907)
At 31 March 2024
1,665,439
261,033
60,680
1,987,152
Carrying amount
At 31 March 2024
192,139
8,157
90,375
290,671
At 31 March 2023
173,885
9,567
63,513
246,965
12
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
13
1,035,811
1,095,811
Investments in associates
14
25,501
25,501
1,061,312
1,121,312
Movements in fixed asset investments
Shares in subsidiaries and associates
£
Cost or valuation
At 1 April 2023
1,121,312
Valuation changes
(60,000)
At 31 March 2024
1,061,312
Carrying amount
At 31 March 2024
1,061,312
At 31 March 2023
1,121,312
HOWARD BUTLER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
13
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Address
Class of
% Held
shares held
Direct
John Wilkes Electrical Limited
1
Ordinary
100.00
Unicores Limited
1
Ordinary
100.00
Multitek Power Limited
1
Ordinary
100.00
Q.A. Electrical Products Limited
1
Ordinary
100.00

Registered office addresses (all UK unless otherwise indicated):

1
Crown Works, Lincoln Road, Walsall, West Midlands, WS1 2EB
14
Associates

Details of the company's associates at 31 March 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Howard Butler Manufacturing Pte. Ltd.
2 Woodlands Sector, 1 #05-35 Woodlands Spectrum, Singapore 738068
Ordinary
45.00

During the year, no dividends or other distributions were received from Howard Butler Manufacturing Pte.

15
Stocks
2024
2023
£
£
Raw materials and consumables
819,343
940,867
Work in progress
206,077
303,267
Finished goods and goods for resale
49,012
37,122
1,074,432
1,281,256
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,321,139
2,620,280
Amounts owed by group undertakings
2,295,223
586,739
Prepayments and accrued income
69,671
82,483
4,686,033
3,289,502
HOWARD BUTLER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
17
Current asset investments
2024
2023
£
£
Listed investments
43,648
39,858
18
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
667,447
681,839
Amounts owed to group undertakings
1,106,417
784,653
Corporation tax
341,089
169,008
Other taxation and social security
106,173
93,016
Other creditors
25,000
72,094
Accruals and deferred income
249,713
230,749
2,495,839
2,031,359
19
Creditors: amounts falling due after more than one year
2024
2023
£
£
Other creditors
15,000
32,000
20
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
57,000
55,350
2024
Movements in the year:
£
Liability at 1 April 2023
55,350
Charge to profit or loss
1,650
Liability at 31 March 2024
57,000
HOWARD BUTLER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
229,324
212,483

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

22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
76,460
76,460
76,460
76,460
23
Operating lease commitments
Lessee

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

2024
2023
£
£
Within one year
6,840
6,840
Between two and five years
18,810
25,650
25,650
32,490
24
Related party transactions

The company has taken advantage of the exemption conferred within FRS102 section 33.1A not to disclose transactions between wholly owned members of the same group.

25
Ultimate controlling party

The immediate parent undertaking is Hobut Limited (a company incorporated in England and Wales) whose registered office is Crown works, Lincoln Road, Walsall, West Midlands, WS1 2EB.

 

The ultimate parent undertaking is Hobut IOM Limited (a company incorporated in the Isle of Man) whose registered address is 1st Floor, Viking House, St Paul's Square, Ramsey, Isle of Man, IM8 1GB. The controlling party is M Collins.

 

The smallest and largest group for which consolidated financial statements are prepared is Hobut Limited. These accounts are available from Companies House.

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