Company registration number 3874419 (England and Wales)
HARDIGG UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
HARDIGG UK LIMITED
COMPANY INFORMATION
Directors
Mr P Marigo
Mr J R Curleigh
(Appointed 12 September 2023)
Mr M D Kravets
(Appointed 21 February 2024)
Company number
3874419
Registered office
16 Churchill Way
Cardiff
CF10 2DX
Auditor
Knill James LLP
One Bell Lane
Lewes
East Sussex
BN7 1JU
Business address
Unit 4
Brookfield Industrial Estate
Leacon Road
Ashford
Kent
TN23 4TU
Bankers
HSBC
60 Queen Victoria Street
London
EC4N 4TR
HARDIGG UK LIMITED
CONTENTS
Page
Directors' report
1 - 2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Statement of financial position
8
Statement of changes in equity
9
Notes to the financial statements
10 - 20
HARDIGG UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Principal activities

The principal activity of the company continued to be that of the distribution of reusable shipping and storage containers.

Results and dividends

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

The profit for the year, after taxation, amounted to £72,440 (2022 - £192,500).

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 Marigo
Mr P Gyori
(Resigned 12 July 2023)
Mr J R Curleigh
(Appointed 12 September 2023)
Mr G C Platisa
(Resigned 21 February 2024)
Mr M D Kravets
(Appointed 21 February 2024)
Qualifying third party indemnity provisions

The company has granted an indemnity to one or more of its directors against liability in respect of proceedings brought by third parties, subject to the conditions set out in the Companies Act 2006. Such qualifying third party indemnity provision remains in force as at the date of approving the financial statements.

Financial risks

The financial risks of the company and how they are mitigated are set out below:

Liquidity risk

This is considered low because the company holds positive cash balances and procedures are in place to manage these balances effectively.

Interest rate risk

The company has a positive cash balance and no external borrowing and is therefore not exposed to material interest rate risk.

Foreign currency risk

The company has minimal exposure to transactional foreign exchange risk but does operate in multiple currencies. The Directors monitor the overall currency risk on a regular basis but do not actively manage the treasury processes unless the potential exposure is significant

Credit risk

The company is not exposed to material credit risk as customers are established and are monitored for reliability and credit worthiness. The company has effective credit management procedures together with the services of an external Credit Management Insurer in place.

Price risk

The company is not materially exposed to price risk because component activity is spread across a range of suppliers, the company’s main supplier is its parent company. There is a very small risk post covid with the price of oil rising, that our supply prices will increase. Where supply is limited to a small number, we have negotiated discounts, price breaks and discounts on early payment.

HARDIGG UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Going concern

Financial position and performance

In November 2022, Management and Directors have made the decision, following a fall in UK sales, to transfer operations from 2023 to Peli Products Germany GmbH, a fellow subsidiary location and operated in Germany.

Any remaining net assets at end of 31 December 2023 should be sold at carrying value to Peli Products Germany GmbH.

From 2024 onwards, Hardigg’s UK Plant will become a non-selling entity, as a cost-plus model.

Costs related to Hardigg UK will be charged to a fellow subsidiary within the group allowing all debts to be honoured and paid in good time.

The Intermediate Parent company has also agreed to provide continuing support for the next 12 months from the date of these financial statements should this be required.

This, combined with future cash flow forecast is deemed sufficient to enable the Company to meet its liabilities currently and in the future.

The company has no external borrowing.

Payments to vendors have and are continuing as normal. Our cash position remains strong, and we have no overdrafts or credit facilities, including intercompany loans.

Conclusion

The company is therefore considered to have adequate cash inflows or controls over obtaining cash to meet its cash outflow requirements for the foreseeable future. No material uncertainties related to events or conditions that may cast significant doubt about the ability of the company to continue as a going concern have been identified by the directors.

Future developments

The directors are seeing evidence of reduced spending in the military sector, which is likely to result in a reduction in the order book over the next financial year.

Auditor

Knill James LLP 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.

Small companies exemption

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

On behalf of the board
Mr P Marigo
Director
2 August 2024
HARDIGG UK LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 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.

HARDIGG UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HARDIGG UK LIMITED
- 4 -
Opinion

We have audited the financial statements of Hardigg UK Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

HARDIGG UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HARDIGG UK 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 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.

In identifying and assessing the risk of material misstatement in respect of irregularities, including fraud, we:

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Companies Act 2006, the company's governing document and relevant tax legislation. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements, including the Directors' report, remaining alert to new or unusual transactions which may not be in accordance with the governing document.

The most significant laws and regulations that have an indirect impact on the financial statements are the compliance with relevant employment law and the UK General Data Protection Regulation (UK GDPR). We performed audit procedures to inquire of management and those charged with governance whether the company is in compliance with these laws and regulations and inspected correspondence with regulatory authorities.

We identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included, but were not limited to, testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business and challenging judgments and estimates.

HARDIGG UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HARDIGG UK LIMITED (CONTINUED)
- 6 -

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

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

Use of our report

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

J. Christopher Ketley FCA
Senior Statutory Auditor
For and on behalf of Knill James LLP
11 September 2024
Chartered Accountants
Statutory Auditor
One Bell Lane
Lewes
East Sussex
BN7 1JU
HARDIGG UK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
3,028,170
5,929,423
Cost of sales
(1,100,762)
(3,002,206)
Gross profit
1,927,408
2,927,217
Administrative expenses
(1,812,629)
(2,671,684)
Operating profit
4
114,779
255,533
Interest payable and similar expenses
7
(3)
(1,612)
Profit before taxation
114,776
253,921
Tax on profit
8
(42,336)
(61,421)
Profit for the financial year
72,440
192,500

The income statement has been prepared on the basis that all operations are continuing operations.

HARDIGG UK LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
155,261
270,253
Current assets
Stocks
10
-
655,456
Debtors
11
4,072,240
3,060,570
Cash at bank and in hand
444,685
772,737
4,516,925
4,488,763
Creditors: amounts falling due within one year
12
(404,839)
(545,610)
Net current assets
4,112,086
3,943,153
Total assets less current liabilities
4,267,347
4,213,406
Provisions for liabilities
Provisions
13
-
0
15,000
Deferred tax liability
14
-
0
3,499
-
(18,499)
Net assets
4,267,347
4,194,907
Capital and reserves
Called up share capital
16
100
100
Profit and loss reserves
4,267,247
4,194,807
Total equity
4,267,347
4,194,907

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 2 August 2024 and are signed on its behalf by:
Mr P  Marigo
Director
Company registration number 3874419 (England and Wales)
HARDIGG UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
100
4,002,307
4,002,407
Year ended 31 December 2022:
Profit and total comprehensive income
-
192,500
192,500
Balance at 31 December 2022
100
4,194,807
4,194,907
Year ended 31 December 2023:
Profit and total comprehensive income
-
72,440
72,440
Balance at 31 December 2023
100
4,267,247
4,267,347
HARDIGG UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
1
Accounting policies
Company information

Hardigg UK Limited is a private company limited by shares, incorporated in England and Wales, United Kingdom. The registered office is 16 Churchill Way, Cardiff, CF10 2DX.

1.1
Accounting convention

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

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

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

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

 

 

The financial statements of the company are consolidated in the financial statements of Peacock Intermediate Holdings II, L.P. These consolidated financial statements are available from its registered office, 23215 Early Avenue, Torrance, CA 90505, USA.

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.

 

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.

HARDIGG UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 11 -
1.4
Tangible fixed assets

Tangible fixed assets are stated at cost net of depreciation and any provision for impairment.

 

Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Land and buildings Leasehold
Over the lease term
Plant and machinery
3-10 years straight line
Fixtures, fittings & equipment
5-10 years straight line
Tooling
3 years straight line

Assets in the course of construction are not depreciated.

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
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.

1.6
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.

1.7
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 statement of financial position 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.

HARDIGG UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
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 trade and other payables, 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 receipts discounted at a market rate of interest.

 

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

 

Trade payables 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.

1.8
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.

1.9
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 income statement 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 income statement, 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.

HARDIGG UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.10
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.11
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.

1.12
Retirement benefits

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

1.13
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.

1.14
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.

HARDIGG UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 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.

 

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below:

Depreciation

The company exercises judgement to determine useful lives and residual values of property, plant and equipment. The assets are depreciated down to their residual values over their estimated useful lives.

Inventory provision

An inventory provision is booked for cases where the realisable value from sale of the inventory is estimated to be lower than the carrying value. The inventory provision is estimated taking into account various factors, including prevailing sales prices of the inventory item, the seasonality of the item’s sales profile and losses associated with slow moving inventory items.

Warranty provision

A warranty provision is recognised when the group has a legal or constructive obligation as a result of a past event and it is probable that an outflow of economic benefits will be required to settle the obligation.

3
Turnover

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

2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
2,004,763
4,145,957
Rest of the world
1,023,407
1,783,466
3,028,170
5,929,423

All turnover has been derived from the principal activity.

4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
40,926
(12,061)
Research and development costs
4,487
923
Depreciation of owned tangible fixed assets
87,908
128,833
(Profit)/loss on disposal of tangible fixed assets
(5,747)
12,432
Operating lease charges
204,095
392,626
HARDIGG UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
5
Employees

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

2023
2022
Number
Number
Manufacturing and distribution
3
9
Administration
8
17
Total
11
26

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
787,095
1,100,947
Social security costs
59,197
151,128
Pension costs
20,785
46,674
867,077
1,298,749
6
Directors' remuneration

The directors are also directors of the ultimate parent company, Peacock Intermediate Holdings II L.P., and receive remuneration from that company. The directors do not consider it practical to apportion the services of the directors by entity and therefore no specific remuneration recharge is made by Peacock Intermediate Holdings II L.P. in respect of their qualifying services to Hardigg UK Limited and hence are borne by the ultimate parent company.

7
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
3
1,612
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
43,239
62,990
Adjustments in respect of prior periods
8,321
-
0
Total current tax
51,560
62,990
HARDIGG UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Taxation
2023
2022
£
£
(Continued)
- 16 -
Deferred tax
Origination and reversal of timing differences
(9,224)
(1,569)
Total tax charge
42,336
61,421

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
114,776
253,921
Expected tax charge based on the standard rate of corporation tax in the UK of 23.17% (2022: 19.00%)
26,594
48,245
Tax effect of expenses that are not deductible in determining taxable profit
15,742
13,176
Taxation charge for the year
42,336
61,421

Factors that may affect future tax charges

 

In the Spring Budget 2024, there were no changes announced to the corporation tax rate of 25%.

 

 

HARDIGG UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
9
Tangible fixed assets
Land and buildings Leasehold
Plant and machinery
Fixtures, fittings & equipment
Tooling
Total
£
£
£
£
£
Cost
At 1 January 2023
401,922
247,400
20,970
300,358
970,650
Disposals
-
0
(229,940)
(8,608)
(300,358)
(538,906)
At 31 December 2023
401,922
17,460
12,362
-
0
431,744
Depreciation and impairment
At 1 January 2023
192,798
205,263
18,469
283,867
700,397
Depreciation charged in the year
54,955
23,642
1,766
7,545
87,908
Eliminated in respect of disposals
-
0
(211,802)
(8,608)
(291,412)
(511,822)
At 31 December 2023
247,753
17,103
11,627
-
0
276,483
Carrying amount
At 31 December 2023
154,169
357
735
-
0
155,261
At 31 December 2022
209,124
42,137
2,501
16,491
270,253
10
Stocks
2023
2022
£
£
Raw materials and consumables
-
453,063
Work in progress
-
148,333
Finished goods and goods for resale
-
0
54,060
-
655,456

The difference between purchase price or production cost of stocks and their replacement cost is not material. Stock recognised in cost of sales during the year as an expense was £1,100,762 (2022 - £2,806,750).

HARDIGG UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
11
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
125,048
404,767
Corporation tax recoverable
12,232
16,492
Amounts owed by group undertakings
3,909,501
2,531,076
Other debtors
12,177
76,081
Prepayments and accrued income
7,558
32,154
4,066,516
3,060,570
Deferred tax asset (note 14)
5,724
-
0
4,072,240
3,060,570

Amounts owed by group undertakings are unsecured, interest free and repayable on demand.

12
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
173,700
51,346
Taxation and social security
76,067
36,228
Accruals and deferred income
155,072
458,036
404,839
545,610
13
Provisions for liabilities
2023
2022
£
£
Maintenance warranties
-
15,000

A provision is recognised for expected warranty claims on products sold during the last 2 years. It is expected that most of these costs will be incurred in the next financial year and all will have been incurred within two years of the balance sheet date.

14
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Balances:
£
£
£
£
ACAs
-
3,499
5,724
-
HARDIGG UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Deferred taxation
(Continued)
- 19 -
2023
Movements in the year:
£
Liability at 1 January 2023
3,499
Credit to profit or loss
(9,223)
Asset at 31 December 2023
(5,724)
15
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
20,785
46,674

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.

16
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
17
Operating lease commitments
Lessee

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

2023
2022
£
£
Within one year
249,011
386,348
Between two and five years
612,427
904,878
861,438
1,291,226
18
Related party transactions

The company has taken advantage of the exemption in FRS102 from disclosing transactions with other members of the group wholly owned by Peacock Intermediate Holdings II L.P.

19
Events after the reporting date

As at 1 January 2024, , the manufacturing operations of the company were transferred to a fellow subsidiary, Peli Products Germany GmBH, a company located and trading in Germany.

HARDIGG UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
20
Ultimate controlling party

The immediate parent company is Hardigg Industries LLC, a company incorporated in the USA. The trading address of the parent company is 147 North Main Street, South Deerfield, MA 01373, USA. The intermediate parent company is Pelican Products Inc. The trading address of the intermediate company is 23215 Early Avenue, Torrance, CA 90505, USA.

 

The largest and smallest group in which the results of Hardigg UK Limited are consolidated is that headed by Peacock Intermediate Holdings II L.P., these are available from 23215 Early Avenue, Torrance, CA 90505, USA.

 

The directors of Hardigg UK Limited consider Peacock Intermediate Holdings II L.P. to be the ultimate controlling party.

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