Registered number:
FOR THE YEAR ENDED 31 MAY 2024
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HORBURY GROUP LIMITED
COMPANY INFORMATION
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HORBURY GROUP LIMITED
CONTENTS
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HORBURY GROUP LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024
The Directors present their report and the audited financial statements of the Group for the year ended 31 May 2024.
Horbury Group Limited is a holding company for its subsidiary companies. The majority of the Group’s turnover is derived from its largest trading subsidiaries and their principal activities are:
Titan Interior Solutions Limited – specialist interior fit-out subcontractor, undertaking various trades including suspended ceilings, drylining, carpets and floor finishes and demountable partitions. Titan Flooring Limited – specialist flooring contractor carrying out the supply and installation of floor preparation and floor coverings. Horbury Joinery Limited – specialist joinery contractor. Horbury Property Service Limited – specialist repairs, maintenance and compliance services contractor.
The UK and global economy have been turbulent over the last few years and has seen unprecedented inflation, in particular material price increases and labour shortages have impacted the financial results of the business in the year.
Despite the economic head winds the Group has been able to increase its profit margins in the year whilst reducing its fixed costs, returning a strong profit in the year. The Group has developed a multi layered strategy focused on processes and efficiency, selective tendering and continuous improvements. The selective tendering strategy has allowed the business to resize in the year and focus on its core strengths, whilst building on long term client relationships, securing repeat work. This strategy has delivered a 2.2% increase in gross profit margins in the year. The operational and process efficiency strategy has been developed and deployed enabling the Group to reduce its fixed costs and drive increased efficiency both at site and in the admin functions, resulting in a 10% overhead reduction in the year. The gross margin improvements and the cost reduction programmes have contributed to the Group delivering a healthy operating profit in the year. Given the economic pressure the business has faced the Board of Directors are pleased with the result. On the 31st January 2024, the Group sold its 95% shareholding in Horbury South West Ltd (HSW) for £435,000, this came in the form of a Management buy out from the existing HSW director. During the year the Group delivered a refinance package, attracting new capital which has enabled it to repay all its long-term debt. The result of which significantly improved the finances and strengthened the Balance Sheet of the Group giving security over its long-term future.
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HORBURY GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
The Group is well positioned to take advantage of any economic improvement, and the directors are confident that the Group will continue to secure contracts and trade profitably.
The Group’s core strategy of operational improvement and efficiency, through a continuous focus on productivity and quality the Group has improved its profit margins and client satisfaction, whilst our focus on selective tendering has enabled the Group to develop strong client relationships producing repeat work and derisking future business. The Group continues to invest in its people and processes and is on plan to deliver its multi layered operational efficiency strategy which will continue to benefit the business for years to come. Secured orders together with the sales pipeline remain strong and ahead of previous years, the Group remains on track to deliver incremental growth in financial year 2025 and beyond with improving profit margins.
The UK construction market remains highly competitive, and future unexpected inflationary pressures and labour shortages cannot be ruled out. The directors remain confident that the Group is well placed to manage these risks through selective contract tendering, regular monitoring of expected and actual contract outcomes, and robust management of working capital.
The Group’s principal credit risk arises from extending credit to its customers, which is managed by credit referencing and selective contract tendering. Robust procedures are in place for the collection of monies due to the company and cash flow and debtors are monitored daily with rolling cash flow projections. The Group is not exposed in any material way to bad debts, which caused the current high level of business failure in the construction sector, our core strategy of selective tendering enables us to manage the risk associated with bad debt.
The Group has continued to use enhanced KPI’s, both financial and operational, to manage the business and to effectively deliver the long-term strategic goals. The following is a brief outline of the KPIs being used within the Group:
∙Tender margin versus final account margin on a contract by contract basis
∙Project status against original programme timetable
∙Overdue final account debts
∙Retention collection
∙Average frequency rate for health and safety data
∙Enquiry levels
∙Work in hand
∙Client and Contract selectivity matrix
∙Tender conversion monitoring – by sector and client
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HORBURY GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
Engaging with stakeholders
The success of our business is dependent on the support of all our stakeholders. Building positive relationships with stakeholders that share our values is important to us, and working together towards shared goals assists us in delivering long-term sustainable success. Shareholders We have an open dialogue with our shareholders through monthly Board meeting and monthly management meeting, shareholders play a key role in our decision-making process, financial performance, and strategic outlook. Employees The safety of our employees and subcontractors is our foremost concern. We have processes in place to ensure the safety of our working practices and sites, we promote good practice through various incentives, and we review adherence through a site audit process. Health and Safety reporting is reviewed at all levels of the Group up to and including at Board level. Business unit managers attend monthly management meeting where we have an open dialogue to discuss the business financial performance, supplier and customer relationships and operational performance. We also run quarterly site management forums, which allows an opportunity for our site based employees to have an open dialogue with business management and play an active role in decision making. We have an open relationship with our employees and promote a two way dialogue to ensure continuous improvement of both the business and our employees. We promote the development of our employees through our “Planning for the Future” programme to upskill our staff to help make them, and us, more competitive. Employees needing help have access to support through our EAP as well as our trained Metal Health First Aiders positioned around the business. Customers Our ambition is to deliver best-in-class product and services to our customers. We continue to build strong and lasting relationships with our key customers and invest considerable time with them to understand their needs and listen to how we can improve our service. We attend regular site meeting with our customers to discuss on-going project matters and agree on key project related decisions. Suppliers We continue to build strong working relationships with our suppliers to develop long lasting partnerships. We run a central procurement team and one of their key performance targets is to continue to develop and support supplier relationships, this is done through periodic reviews with key accounts and more informally with open dialogue on a day-to-day basis. The Board recognises that relationship with suppliers is important to the Group’s long-term success and are briefed in the monthly management meeting by the Procurement team on supplier relationships and any open issues. Communities We engage with the local communities on several fronts and aim to give something back to the local communities we work in. We partner with a local charity each year to help raise awareness and we organise and fund a number of fund-raising events throughout the year which are keenly supported by employees. We also run The Horbury Academy which is an apprenticeship scheme committed to developing local talent into skilled tradespeople, professionals and managers and have formed a strategic partnership with Sheffield College.
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HORBURY GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
This report was approved by the board on 17 September 2024 and signed on its behalf.
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HORBURY GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024
The directors present their report and the financial statements for the year ended 31 May 2024.
The directors who served during the year were:
The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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HORBURY GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
Titan Interior Solutions Limited - specialist interior fit-out subcontractor, undertaking various trades including suspended ceilings, dryining, carpets and floor finishes and demountable partitions. Titan Flooring Limited - specialist interior fit out subcontractor, undertaking various types of flooring including timber, carpets, vinyl and rubber and all forms of specialist floor preparation. Horbury Joinery Limited - specialist joinery contractor. Horbury Property Services Limited - specialist repairs, maintenance and compliance services contractors. The group also includes a property holding company (South Grove House Limited).
The profit for the year, after taxation and minority interests, amounted to £1,735,233 (2023 - loss £1,083,013).
No ordinary dividends were paid. The directors do not recommend payment of a dividend.
The Horbury Group acknowledges the clear scientific evidence linking the rising concentrations of greenhouse gases in our atmosphere to a global warming effect that is resulting in changes to the Earth’s climate. As a responsible organisation, the Horbury Group seeks to minimise adverse environmental impacts resulting from its operations, including the direct and indirect release of greenhouse gas emissions from the use of energy, fuels and refrigerants across the business.
Emissions by source
Energy consumption used to calculate emissions
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HORBURY GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
Intensity ratio
For the purposes of monitoring and improving our energy efficiency, we have introduced a carbon intensity metric of ‘tonnes of CO2e per £1 million of turnover’. Greenhouse gas emissions have been calculated by multiplying the energy usage by the emission factors listed on Government websites. The Horbury Group utilises fully renewable electricity sources and figures have been presented using the market-based reporting approach. Energy efficiency action Horbury Group Limited has taken a number of actions relating to its carbon footprint. End of life fleet vehicles are replaced with more efficient vehicles, either fossil fuel or electric, dependant on use cases. Charging points for electric vehicles have been installed at the Group’s head office. The Group continues to investigate ways to reduce its impact on the environment through reduction of emissions of greenhouse gasses.
There have been no significant events affecting the Group since the year end.
The auditors, Shorts, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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HORBURY GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HORBURY GROUP LIMITED
We have audited the financial statements of Horbury Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 May 2024, which comprise the Consolidated statement of comprehensive income, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of 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).
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
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 or the 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.
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HORBURY GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HORBURY GROUP LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.
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HORBURY GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HORBURY GROUP LIMITED (CONTINUED)
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 Auditors' 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 Group 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:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
∙the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
∙through discussions with the directors and other management and from our commercial knowledge and experience of the sector, we identified the laws and regulations applicable to the Company; and
∙focusing on the specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, we assessed the extent of compliance with those laws and regulations identified above through making enquiries of management and inspecting relevant correspondence.
We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
∙making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
∙considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
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HORBURY GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HORBURY GROUP LIMITED (CONTINUED)
To address the risk of fraud through management bias and override of controls, we:
∙performed analytical procedures to identify any unusual or unexpected relationships;
∙considered journal entries to identify unusual transactions;
∙assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
∙investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
∙agreeing financial statement disclosures to underlying supporting documentation;
∙enquiring of management as to actual and potential litigation and claims;
∙considered relationship with HMRC, relevant regulators and the Company’s legal advisors; and
∙review of legal and professional fees and of incident log for evidence of litigation.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 Auditors' 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.
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HORBURY GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HORBURY GROUP LIMITED (CONTINUED)
for and on behalf of
Chartered Accountants
Statutory Auditors
Cedar House
63 Napier Street
South Yorkshire
S11 8HA
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HORBURY GROUP LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024
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HORBURY GROUP LIMITED
REGISTERED NUMBER: 06217640
CONSOLIDATED BALANCE SHEET
AS AT 31 MAY 2024
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HORBURY GROUP LIMITED
REGISTERED NUMBER: 06217640
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 MAY 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 17 September 2024.
The notes on pages 22 to 45 form part of these financial statements.
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HORBURY GROUP LIMITED
REGISTERED NUMBER: 06217640
COMPANY BALANCE SHEET
AS AT 31 MAY 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 22 to 45 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
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COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
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HORBURY GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024
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HORBURY GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
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HORBURY GROUP LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MAY 2024
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HORBURY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
Horbury Group Limited is a private company limited by shares, incorporated in England and Wales (registered number: 06217640). Its registered office address is South Grove House, South Grove, Rotherham, South Yorkshire, S60 2AF. The principal activity of the company throughout the year was that of a holding company.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.
The companys functional and presentation currency is pounds sterling.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The directors have performed an assessment of going concern at a Group level, including a review of the Group's current cash position, available banking facilities and financial forecasts for 2025 and 2026, including the ability to adhere to banking covenants over the going concern window. In doing so the Directors have consulted with key stakeholders including financers and also considered current trading trends in our markets and extensive actions already undertaken to protect profitability and liquidity.
Having considered the above factors, the directors are of the opinion that sufficient resources are in place to enable the business to continue to operate as a going concern for a period of 12 months following the date of this report.
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HORBURY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
2.Accounting policies (continued)
In the case of long term contracts, turnover reflects the contract activity during the year and it determined by reference to the proportion of total contract value which costs incurred to date bear to total expected contract costs. Construction contracts The attributable profit on long-term contracts is recognised once their outcome can be assessed with reasonable certainty. The profit recognised reflects the proportion of work completed to date on the project and is calculated as a percentage of total expected contract costs. Full provision is made for losses on all contracts in the year in which the loss is first foreseen. Trade debtors represent contract valuations and retentions certified up to one month after the year end. Amounts recoverable on contracts represent the balance of uncertified valuations.
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HORBURY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
2.Accounting policies (continued)
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that: The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.Enter text here - user input
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HORBURY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
2.Accounting policies (continued)
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 over its expected life, which is 20 years. Negative goodwill is amortised over 5 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 fir 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. Other intangible assets Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
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HORBURY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, as follows.
The depreciation rates used are:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers. Where fair value cannot be achieved without undue cost and effort, investment property is accounted for as tangible fixed assets. Property held for group purposes is classified within tangible fixed assets.
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HORBURY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities such as bank and cash balances, trade and other accounts receivable and payable, loans from banks and other third parties and loans to and from related parties.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at the transaction price and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost. Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an 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.
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HORBURY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. Critical judgements The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements. Turnover from long term contracts Turnover is generated from long term contracts. The group recognises contract revenue and contract costs associated with each contract using the percentage of completion method. The recognition of revenue and profit therefore rely on estimates in relation to the stage of completion and the forecast total costs of each contract. Margin is presented in the monthly management accounts for each contract as it is earned on the specific tasks undertaken in the period. A margin is used based on the job budget form completed at the outset, with variations requiring individual approval. Each project’s outturn is reforecast on a monthly basis, so any changes to expected final outturn are reflected in the accounts promptly. The profit to be recognised monthly is calculated on a cumulative basis so that the overall expected outturn is reflected in the cumulative position each month. The method applies ensures that profit is recognised equally across the life of the project. The calculation of expected outturn is based on the following factors: combined with the contract turnover, are used to calculate the expected margin outturn on each project. When contract losses are anticipated these are recognised in full at the time of identification in so far as they can be measured reliably.
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HORBURY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
3.Judgments in applying accounting policies (continued)
Classification of investment property In assessing the split of own use and external use, the directors have reviewed floor space and estimated communal spaces at the year end, and have applied a percentage split to the fair value of the entire property to arrive at the share of the fair value that it attributed to Property Plant and Equipment and Investment Property. Valuation of investment property The valuation of the investment property has been undertaken by the directors in conjunction with advice from their property agents. In forming the valuation the directors have reviewed evidence of office sales in the past 12 months in the region, and have used the average price per square foot as a basis for estimating the valuation of the investment property. Inherently in this assessment, the directors have applied their judgment in forming the valuation.
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HORBURY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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HORBURY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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HORBURY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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HORBURY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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HORBURY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
13.Taxation (continued)
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HORBURY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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HORBURY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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HORBURY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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HORBURY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
Investment property comprises a commercial property held at fair value. The fair value of the investment
property has been arrived at on the basis of an agreement to sell the property post year end. The directors do not consider there to have been a material change in the fair value of the property since the formal valuation. Also included in investment property is a property previously occupied by fellow group companies. At the year end, this was partially let to group companies and has been split accordingly as a mixed used property. The investment property element was subsequently revalued to reflect the current use of the property. The fair value of the investment property has been arrived at by the Directors based on their best estimate of market value by reference to market evidence of transaction prices for similar properties.
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HORBURY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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HORBURY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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HORBURY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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HORBURY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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HORBURY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
Page 43
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HORBURY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
Share premium account
Revaluation reserve
Profit and loss account
The Company's bankers hold an unlimited Composite Company Limited Multilateral Guarantee and debenture between the following group companies: Horbury Group Limited, Horbury Joinery Limited, Tubular Scaffolding Services Limited, Titan Interior Solutions Limited, T.I.S. Services Limited, South Grove House Limited, Millstone Building Limited, Magna Plant and Tool Hire Limited, Horbury Support Services Limited (formerly known as G.B.W. (Tool Hire) Limited), Horbury Property Services Limited, Horbury Building Systems Limited, Titan Flooring Limited and Environ Safety Management Limited.
The company has taken advantage of the exemption available under section 479A of Companies Act 2006 in respect of the requirement for audit of some of its wholly owned subsidiaries. The company guarantees the liabilities of the following subsidiary companies at the period end until those liabilities are settled in full: Horbury Support Services Limited South Grove House Limited Magna Plant and Tool Hire Limited Environ Safety Management Limited The contingent liability at 31 May 2024 was £1,105,840 (2023: £1,872,661).
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £315,560 (2023 - £343,979). Contributions totalling £59,444 (2023 - £58,045) were payable to the fund at the balance sheet date and are included in creditors.
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HORBURY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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