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REGISTERED NUMBER: 06804515 (England and Wales)















Hiatt Hardware (UK) Limited

Strategic Report, Report of the Directors and

Financial Statements For The Year Ended 31 December 2023






Hiatt Hardware (UK) Limited (Registered number: 06804515)






Contents of the Financial Statements
For The Year Ended 31 December 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 5

Report of the Independent Auditors 6

Income Statement 8

Other Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Notes to the Financial Statements 12


Hiatt Hardware (UK) Limited

Company Information
For The Year Ended 31 December 2023







DIRECTORS: R K Agrawal
R K Agrawal
A Agrawal
N Agrawal





SECRETARY: A Agrawal





REGISTERED OFFICE: 106 Elkington Street
Aston
Birmingham
B6 4SL





REGISTERED NUMBER: 06804515 (England and Wales)





AUDITORS: Kingswood Allotts Limited, Statutory Auditor
Chartered Accountants
Sidings Court
Lakeside
Doncaster
South Yorkshire
DN4 5NU

Hiatt Hardware (UK) Limited (Registered number: 06804515)

Strategic Report
For The Year Ended 31 December 2023

The directors present their strategic report for the year ended 31 December 2023.

PRINCIPAL ACTIVITY
The principal activity of the company during the financial year was that of the design, development, manufacturing, marketing, and distribution of Hardware/ Ironmongery products to commercial retail and merchant trade including home improvement retailers.

REVIEW OF BUSINESS
The results for the year ended 31st December 2023 amounted to a profit before taxation of £3,607,965 compared to a profit before taxation of £3,003,135 in 2022, an increase of 20%. Revenue for the year was £18,982,174 compared to £18,061,289 for 2022, an increase of 5.10%.

As an exceptional item, short term and long-term deposits and investment planning have increased profitability in 2023. The company has taken advantage of increased BOE's deposit rates focusing on low risk, core principles of financial management.

The exchange rate between the British Pound (Sterling) and the US Dollar continuing to exhibit significant fluctuations, exerting a substantial influence on the cost components of our product categories. The company continues to hedge its exposure to minimise potential losses and enhance its financial stability.

The core business operations have continued to be a challenging year with rising costs disrupting supply chains, making it harder to obtain materials and goods promptly and affordably. Escalating living costs has affected both our employees and suppliers and essential prices, rose at the fastest rate in 45 years, impacting spending habits.

The ongoing labour shortages and the increase in the minimum wage has pushed salary expectations making new recruitment more challenging. Hiatt Hardware's strategy is to attract fresh experienced talent to enhance its service and product offer for company's wide customer base. The continual focus and investment in core people strategy has enabled the organisation to be an employer of choice with motivated workforce further bolstering upon the wealth of specialist experience carried within the Hardware/ Ironmongery sector.

By way of systematic management approach, the company has boldly appraised key staff members to unlock further potential, and training new colleagues under promoted managers within the team. As a leading Hardware brand, the company currently operates on 10-15% premium on remuneration rates compared to general market to retain and attract best in class and experienced talent within its operating sector.

The Company remains steadfast in its dedication to uphold the utmost standards of service for its valued customers. As a vital strategic partner for numerous well-known retail and merchant brands in meeting their hardware requirements, Hiatt Hardware is driven by its core purpose of surpassing customers' expectations regarding service, availability, and product quality. Drawing upon its extensive expertise in the sector, the company consistently strives to enhance its service and maintain a distinguished level of brand recognition associated with exceptional service and uncompromising quality.

The business is aware of the emerging technology like, 5G, blockchain, the cloud, and the Internet of Things (IoT) which are building and speeding up AI, and all of them are enhancing each other. This is changing the world and the way the consumer buys its products, which means the company needs to adapt and stay abreast of the competitors. This technology is also driving more efficient processes along with more intelligent machines and software.

The direct-to-consumer E-Commerce channel plays a pivotal role in the company's strategic vision, focusing on industry-leading after-sales customer service and fostering incremental brand awareness across multiple own trademarked brands. This approach aligns with our future direction, while ensuring unwavering commitment to delivering exceptional service and maintaining a wide range of available products.

In 2023, income generated from E-Commerce sales experienced substantial growth, turnover grew by 83.37%. Anticipating continued expansion in 2024 and beyond, we are dedicated to investing significantly in talent to propel our service offering forward.
The board also considers the company to be in a strong operational and financial position to engage in mergers and acquisitions activity, on the buy side.

Key Performance Indicators (KPIs)
Key performance indicators include ratios and metrics that monitor the financial health and performance of the business:

2023 2022
Average stock days (Stock value/Cost of goods sold) x 365 - monthly average 157 180
Current ratio (Current assets/Current liabilities) 3.31 2.84

Hiatt Hardware (UK) Limited (Registered number: 06804515)

Strategic Report
For The Year Ended 31 December 2023


PRINCIPAL RISKS AND UNCERTAINTIES
The company monitors movements and the potential impact of the Sterling exchange rate with the US Dollar and hedges against them, where appropriate.

Inflation Risk
Inflation has been steadily decreasing throughout 2023 with the UK CPI at the end of 2023 standing at 4%. Although the company maintains a positive outlook for 2024, research suggests that concerns about the cost of living and elevated interest rates have tempered the positive effects of milder inflation.

There are also suggestions that effects on increased headcount and business's addressing the skills gaps could sustain high wage inflation.

Interest Rate Risk
The Bank of England are considering cutting interest rates in response to inflation trends. Analysts predict that the base rate could fall in 2024, potentially reaching around 4.65% by the year-end.

Although the company itself does not bear significant interest costs and holds no secured or unsecured financial liabilities, it is indirectly affected by the impact of these interest rate increases on the broader economy and its customers. Consequently, the company recognises the potential implications stemming from these changes and remains mindful of their influence on its operations and market dynamics.

Commodity Price Risk
Despite predictions that the commodity price index is expected to fall 4 percent in 2024 and remain relatively stable in 2025, raw material prices have seen an increase at the time of reporting. Throughout 2023 standard prices for the raw materials utilised in the company's product range have continued to experience fluctuations.

There is still a lot of uncertainty around energy prices, 2024 has seen a reduction by up to 12% and prices are expected to remain at pre-2021 levels throughout the year. There are, however, risks denoted with unstable crude oil prices given the un-stability and geo-political tensions in the middle east. Generally, there is a direct link on raw material and crude oil price movements.

Supply Chain Management
The global supply chains have faced a series of disruptions. The most significant have included the COVID-19 pandemic, Russia-Ukraine war, US-China trade war, and the consumer goods boom. Supply chain disruptions have also included a variety of natural disasters, financial failures, and operational difficulties.

The company maintains a diligent oversight of political, economic, and social factors that have the potential to impact its robust supply chains. The board is committed to proactively adapting to evolving circumstances at every stage of the supply chain, leveraging its extensive expertise in managing these processes effectively.

The company continues to deliver significant value to its retail customers through its network of customised manufacturing facilities, ethical sourcing practices, and a well-controlled and transparent supply chain. Notably, a considerable portion of the company's current focus lies in pursuing new business opportunities, as various promising prospects are emerging amidst unprecedented market conditions. The company's ability to navigate these challenges has positioned it favourably, outperforming competitors who have struggled to sustain their operations in such conditions.


Hiatt Hardware (UK) Limited (Registered number: 06804515)

Strategic Report
For The Year Ended 31 December 2023

SECTION 172(1) STATEMENT
The directors of the group affirm that they have fulfilled their fiduciary duties diligently and in the best interest of the members, demonstrating good faith and utilising their utmost abilities. Their ongoing commitment lies in promoting the success and future growth of the group, with a strong emphasis on prioritizing the health and safety of employees and other stakeholders, thereby ensuring a safe working environment for all. The company has implemented robust processes that are integrated into day-to-day operations to ensure compliance with relevant regulations.

Moreover, the group has established internal policies aimed at mitigating a wide range of risk factors that could potentially impact the smooth functioning and reputation of the group. These policies also serve to ensure that the group operates in a socially and ethically responsible manner. All employees are required to read and sign these policies, demonstrating their understanding and commitment to adhere to the outlined principles. While the policies encompass various areas, some examples include but are not limited to the following:

- Anti-Bribery and Corruption Policy
- Data Protection Policy
- Environmental Policy
- Equal Opportunities and Diversity Policy
- Ethical policy
- Health & Safety Policy
- Hospitality and Gifts Policy
- Modern Slavery Policy
- Whistleblowing Policy

The board of directors also acknowledge the growing importance of sustainability and its effects on the wider stakeholders. It endeavours to clearly understand the impact of the company's business activities on the environment and society and assess the risks and opportunities presented.

GOING CONCERN
The directors consider that taking into the account the healthy financial position of the company, especially the availability of retained working capital and low fixed yet an efficient cost base that the business can operate for the foreseeable future. As a result, these financial statements and annual reports have been prepared on a going concern basis.

ON BEHALF OF THE BOARD:





A Agrawal - Director


19 September 2024

Hiatt Hardware (UK) Limited (Registered number: 06804515)

Report of the Directors
For The Year Ended 31 December 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of design, development, manufacturing, marketing, and distribution of Hardware/ Ironmongery products to commercial retail and merchant trade including home improvement retailers.

DIVIDENDS
Dividends of £1,680,160 were paid in the year to GKA Grandsons Limited. The directors do not propose a final dividend.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

R K Agrawal
R K Agrawal
A Agrawal
N Agrawal

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company 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 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:





A Agrawal - Director


19 September 2024

Report of the Independent Auditors to the Members of
Hiatt Hardware (UK) Limited

Opinion
We have audited the financial statements of Hiatt Hardware (UK) Limited (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, 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).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

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 Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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.

Report of the Independent Auditors to the Members of
Hiatt Hardware (UK) Limited


Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- Enquiry of management, those charged with governance around actual and potential litigation and claims;
- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations;
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and
regulations;
- Performing audit work over the risk of management override of controls, including testing of journal entries, sales and stock controls and
other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business
and reviewing accounting estimates for bias.

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 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 Report of the Auditors.

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 a Report of the Auditors 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.




Mark Garrison BCom FCA DChA (Senior Statutory Auditor)
for and on behalf of Kingswood Allotts Limited, Statutory Auditor
Chartered Accountants
Sidings Court
Lakeside
Doncaster
South Yorkshire
DN4 5NU

20 September 2024

Hiatt Hardware (UK) Limited (Registered number: 06804515)

Income Statement
For The Year Ended 31 December 2023

2023 2022
Notes £    £    £    £   

TURNOVER 18,982,174 18,061,289

Cost of sales 12,030,661 12,822,460
GROSS PROFIT 6,951,513 5,238,829

Distribution costs 1,266,337 988,910
Administrative expenses 2,247,835 1,306,599
3,514,172 2,295,509
3,437,341 2,943,320

Other operating income 10,417 50,000
OPERATING PROFIT 4 3,447,758 2,993,320

Interest receivable and similar income 160,207 9,815
PROFIT BEFORE TAXATION 3,607,965 3,003,135

Tax on profit 5 833,710 556,498
PROFIT FOR THE FINANCIAL YEAR 2,774,255 2,446,637

Hiatt Hardware (UK) Limited (Registered number: 06804515)

Other Comprehensive Income
For The Year Ended 31 December 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 2,774,255 2,446,637


OTHER COMPREHENSIVE INCOME
Revaluation of property
Income tax relating to other comprehensive income 6,250 (82,990 )
OTHER COMPREHENSIVE INCOME FOR THE YEAR,
NET OF INCOME TAX

6,250

(82,990

)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 2,780,505 2,363,647

Hiatt Hardware (UK) Limited (Registered number: 06804515)

Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 7 11,074 30,057
Tangible assets 8 5,386,294 5,053,419
Investments 9 1 1
5,397,369 5,083,477

CURRENT ASSETS
Stocks 10 3,880,680 4,222,339
Debtors 11 2,957,474 3,235,373
Cash at bank and in hand 5,704,196 4,737,047
12,542,350 12,194,759
CREDITORS
Amounts falling due within one year 12 3,786,161 4,290,959
NET CURRENT ASSETS 8,756,189 7,903,800
TOTAL ASSETS LESS CURRENT LIABILITIES 14,153,558 12,987,277

PROVISIONS FOR LIABILITIES 13 469,766 403,830
NET ASSETS 13,683,792 12,583,447

CAPITAL AND RESERVES
Called up share capital 14 1,000 1,000
Share premium 15 506,600 506,600
Revaluation reserve 15 1,236,807 1,238,659
Retained earnings 15 11,939,385 10,837,188
SHAREHOLDERS' FUNDS 13,683,792 12,583,447

The financial statements were approved by the Board of Directors and authorised for issue on 19 September 2024 and were signed on its behalf by:





A Agrawal - Director


Hiatt Hardware (UK) Limited (Registered number: 06804515)

Statement of Changes in Equity
For The Year Ended 31 December 2023

Called up
share Retained Share Revaluation Total
capital earnings premium reserve equity
£    £    £    £    £   
Balance at 1 January 2022 1,000 9,422,449 506,600 1,329,751 11,259,800

Changes in equity
Dividends - (1,040,000 ) - - (1,040,000 )
Total comprehensive income - 2,454,739 - (91,092 ) 2,363,647
Balance at 31 December 2022 1,000 10,837,188 506,600 1,238,659 12,583,447

Changes in equity
Dividends - (1,680,160 ) - - (1,680,160 )
Total comprehensive income - 2,782,357 - (1,852 ) 2,780,505
Balance at 31 December 2023 1,000 11,939,385 506,600 1,236,807 13,683,792

Hiatt Hardware (UK) Limited (Registered number: 06804515)

Notes to the Financial Statements
For The Year Ended 31 December 2023

1. STATUTORY INFORMATION

Hiatt Hardware (UK) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Accounting reference date
The company has taken advantage of the provisions in section 390 of the Companies Act 2006 which allow the company to make accounts up to a date within seven days of the accounting reference date. The company financial statements are made up to 26th December 2023 (2022: 31 December 2022).

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows.

Preparation of consolidated financial statements
The financial statements contain information about Hiatt Hardware (UK) Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, GKA Grandsons Limited, Sidings Court, Lakeside, Doncaster DN4 5NU.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Critical accounting judgements and key sources of estimation uncertainty
In preparing these financial statements, the directors have had to make the following judgements:

Stock valuation (judgement)

At each reporting date, stock is assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to sell. The impairment loss is recognised immediately in the statement of comprehensive income.

Property Valuation (judgement)

At each reporting date, the property value is assessed to ensure it is being held at fair value.

Turnover
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

- the company has transferred the significant risks and rewards of ownership to the buyer;
- the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective
control over the goods sold;
- the amount of revenue can be measured reliably;
- it is probable that the company will receive the consideration due under the transaction; and
- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2009, has been fully amortised.

Hiatt Hardware (UK) Limited (Registered number: 06804515)

Notes to the Financial Statements - continued
For The Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of three years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Long leasehold property - 0.5% on cost
Plant and machinery - 20% on cost
Fixtures and fittings - 20% on cost
Motor vehicles - 20% on reducing balance
Computer equipment - 20% on cost

The company's long leasehold property is shown at fair value. Any movement in the fair value of long leashold property is shown in the profit and loss account with a transfer to or from the revaluation reserve.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments
The company holds basic financial instruments as defined by FRS102. The financial assets and financial liabilities of the company and their measurement basis are as follows:

Financial assets - trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments.

Cash at bank - is classified as a basic financial instrument and is measured at face value.

Financial liabilities - trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition. Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument.

The company enters into foreign exchange forward contracts to manage its exposure to foreign currency risk. These derivatives are measured at fair value at each reporting date and changes in fair value are recognised in profit and loss for the period

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hiatt Hardware (UK) Limited (Registered number: 06804515)

Notes to the Financial Statements - continued
For The Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Trust
The company has created a trust whose beneficiaries include employees of the company and their dependents. Assets held under this trust are controlled by trustees who will be acting independently and entirely at their own discretion.

Where assets are held in the trust and these are considered by the company to be in respect of services already provided by employees to the company, the company accounts for these as assets of the trust when payment is made to the trust. The value transferred was charged in the company's profit and loss account for the year to which it related.

Grants
Grants received in respect of revenue expenditure are credited to the profit and loss account in the year to which they relate.

3. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 1,085,913 860,620
Social security costs 84,653 71,269
Other pension costs 208,049 109,064
1,378,615 1,040,953

The average number of employees during the year was as follows:
2023 2022

Administrative and warehouse staff 48 37

2023 2022
£    £   
Directors' remuneration 31,500 31,500
Directors' pension contributions to money purchase schemes 78,523 19,049

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

4. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Hire of plant and machinery 44,489 7,010
Depreciation - owned assets 119,969 49,564
Profit on disposal of fixed assets (188 ) -
Computer software amortisation 18,983 18,983
Auditors' remuneration 5,500 5,000
Foreign exchange gains/(losses) 381,131 106,932

Hiatt Hardware (UK) Limited (Registered number: 06804515)

Notes to the Financial Statements - continued
For The Year Ended 31 December 2023

5. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 761,524 559,318

Deferred tax 72,186 (2,820 )
Tax on profit 833,710 556,498

UK corporation tax has been charged at 23.50% (2022 - 19%).

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 3,607,965 3,003,135
Profit multiplied by the standard rate of corporation tax in the UK of 23.500% (2022 - 19%) 847,872 570,596

Effects of:
Patent box (21,653 ) (18,890 )
Super deduction (8 ) (51 )
Change in tax rates 1,885 431
Depreciation on non eligible assets 5,614 4,412
Total tax charge 833,710 556,498

Tax effects relating to effects of other comprehensive income

2023
Gross Tax Net
£    £    £   
Revaluation of property - 6,250 6,250

2022
Gross Tax Net
£    £    £   
Revaluation of property - (82,990 ) (82,990 )

6. DIVIDENDS
2023 2022
£    £   
Ordinary A shares of £1 each
Interim 760,080 280,000
Ordinary B shares of £1 each
Interim 920,080 760,000
1,680,160 1,040,000

Hiatt Hardware (UK) Limited (Registered number: 06804515)

Notes to the Financial Statements - continued
For The Year Ended 31 December 2023

7. INTANGIBLE FIXED ASSETS
Computer
Goodwill software Totals
£    £    £   
COST
At 1 January 2023
and 31 December 2023 8,800 56,950 65,750
AMORTISATION
At 1 January 2023 8,800 26,893 35,693
Amortisation for year - 18,983 18,983
At 31 December 2023 8,800 45,876 54,676
NET BOOK VALUE
At 31 December 2023 - 11,074 11,074
At 31 December 2022 - 30,057 30,057

8. TANGIBLE FIXED ASSETS
Long Fixtures
leasehold Plant and and
property machinery fittings
£    £    £   
COST OR VALUATION
At 1 January 2023 5,000,000 362,298 143,248
Additions - 2,300 31,282
Disposals - - -
At 31 December 2023 5,000,000 364,598 174,530
DEPRECIATION
At 1 January 2023 50,000 356,600 128,036
Charge for year 25,000 3,055 9,902
Eliminated on disposal - - -
At 31 December 2023 75,000 359,655 137,938
NET BOOK VALUE
At 31 December 2023 4,925,000 4,943 36,592
At 31 December 2022 4,950,000 5,698 15,212

Hiatt Hardware (UK) Limited (Registered number: 06804515)

Notes to the Financial Statements - continued
For The Year Ended 31 December 2023

8. TANGIBLE FIXED ASSETS - continued

Motor Computer
vehicles equipment Totals
£    £    £   
COST OR VALUATION
At 1 January 2023 88,624 59,768 5,653,938
Additions 500,722 1,991 536,295
Disposals (94,674 ) - (94,674 )
At 31 December 2023 494,672 61,759 6,095,559
DEPRECIATION
At 1 January 2023 14,771 51,112 600,519
Charge for year 79,178 2,834 119,969
Eliminated on disposal (11,223 ) - (11,223 )
At 31 December 2023 82,726 53,946 709,265
NET BOOK VALUE
At 31 December 2023 411,946 7,813 5,386,294
At 31 December 2022 73,853 8,656 5,053,419

Cost or valuation at 31 December 2023 is represented by:

Long Fixtures
leasehold Plant and and
property machinery fittings
£    £    £   
Valuation in 2020 5,000,000 - -
Cost - 364,598 174,530
5,000,000 364,598 174,530

Motor Computer
vehicles equipment Totals
£    £    £   
Valuation in 2020 - - 5,000,000
Cost 494,672 61,759 1,095,559
494,672 61,759 6,095,559

If long leasehold property had not been revalued it would have been included at the following historical cost:

2023 2022
£    £   
Cost 3,466,212 3,466,212
Aggregate depreciation 138,648 121,317

Long leasehold land and buildings were valued on an open market basis on 31 December 2020 by Mr J K Crawford MRICS, of Cushman & Wakefield.

The directors consider this valuation approximates to the market value at 31 December 2023.

Hiatt Hardware (UK) Limited (Registered number: 06804515)

Notes to the Financial Statements - continued
For The Year Ended 31 December 2023

9. FIXED ASSET INVESTMENTS
Unlisted
investments
£   
COST
At 1 January 2023
and 31 December 2023 1
NET BOOK VALUE
At 31 December 2023 1
At 31 December 2022 1

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Decorails Limited
Registered office: 106 Elkington Street, Aston, Birmingham, England, B6 4SL
Nature of business: Dormant
%
Class of shares: holding
Ordinary 100.00
2023 2022
£    £   
Aggregate capital and reserves 1 1

10. STOCKS
2023 2022
£    £   
Stocks 3,880,680 4,222,339

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 2,444,295 3,117,514
Other debtors 31 31
Derivative financial instruments 428,023 46,892
Prepayments 85,125 70,936
2,957,474 3,235,373

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade creditors 1,815,548 2,383,476
Amounts owed to group undertakings 1 1
Taxation 356,524 561,689
Social security and other taxes 475,151 626,513
Other creditors 119,171 181,455
Directors' current accounts 881,752 281,792
Accruals and deferred income 138,014 256,033
3,786,161 4,290,959

Hiatt Hardware (UK) Limited (Registered number: 06804515)

Notes to the Financial Statements - continued
For The Year Ended 31 December 2023

13. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax
Other timing differences (289 ) (22,985 )
Accelerated capital allowances 110,726 61,235
Deferred tax on revaluation surplus 359,329 365,580
469,766 403,830

Deferred
tax
£   
Balance at 1 January 2023 403,830
Movement in year
Capital allowances 49,490
Revaluation (6,250 )
Short term timing difference 22,696
Change in tax rate
Balance at 31 December 2023 469,766

Deferred tax has been charged at 25% (2022: 25%).

14. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
540 Ordinary A £1 540 540
460 Ordinary B £1 460 460
1,000 1,000

15. RESERVES
Retained Share Revaluation
earnings premium reserve Totals
£    £    £    £   

At 1 January 2023 10,837,188 506,600 1,238,659 12,582,447
Profit for the year 2,774,255 - - 2,774,255
Dividends (1,680,160 ) - - (1,680,160 )
Transfer for depreciation on
revaluation 8,102 - (8,102 ) -
Movement in deferred tax
provision - - 6,250 6,250
At 31 December 2023 11,939,385 506,600 1,236,807 13,682,792

16. ULTIMATE PARENT COMPANY

The controlling party and parent undertaking, whose consolidated financial statements include the results of this company, is GKA Grandsons Limited.

Its registered office is 106 Elkington Street, Aston, Birmingham, B6 4SL.

Group financial statements can be obtained from Companies House, Crown Way, Maindy, Cardiff, CF14 3UZ.

Hiatt Hardware (UK) Limited (Registered number: 06804515)

Notes to the Financial Statements - continued
For The Year Ended 31 December 2023

17. OTHER FINANCIAL COMMITMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
20232022
££
Payable within one year1,8661,536
Payable between one and five years3,733-
5,5991,536

18. RELATED PARTY DISCLOSURES

During the year the following related party transactions took place and the balances outstanding are:-
2023 2022
£ £
Purchases with other related parties4,256,6882,903,185
Amount due to other related parties1,468,1961,866,412
Amount due to the directors881,752281,792

The amounts due are repayable on demand.

All transactions were under normal market conditions.

There are no key management personnel except the directors.