REGISTERED NUMBER: 02818847 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
FOR |
HAYAKAWA INTERNATIONAL (UK) LIMITED |
REGISTERED NUMBER: 02818847 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
FOR |
HAYAKAWA INTERNATIONAL (UK) LIMITED |
HAYAKAWA INTERNATIONAL (UK) LIMITED (REGISTERED NUMBER: 02818847) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Consolidated Statement of Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
HAYAKAWA INTERNATIONAL (UK) LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
and Statutory Auditors |
25 Grosvenor Road |
Wrexham |
LL11 1BT |
BANK: |
Ropemaker Place |
25 Ropemaker Street |
London |
EC2Y 9AN |
HAYAKAWA INTERNATIONAL (UK) LIMITED (REGISTERED NUMBER: 02818847) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
The directors present their strategic report of the company and the group for the year ended 31st December 2023. |
REVIEW OF BUSINESS |
The UK group's turnover has decreased slightly this year overall by 0,5%. Direct costs have also decreased at the same level of 0.5% resulting in the gross profit margin staying consistent at 11.7% year on year. |
Profit before tax was 6.5% down 2.2% compared to the previous year of 8.7%. |
The parent company has constructed the new building now and planning to move the manufacturing to the purpose built facility in July this year. This change will make improvements in the efficiency and productivity, resulting in better production results from 2025. |
Also, the group has received new enquiries from Automotive sector companies in the EU and the UK. These projects will start from 2025 if successful and this will further boost sales overall. |
PRINCIPAL RISKS AND UNCERTAINTIES |
In common with all the companies in the sector the principal risks faced by the company derive from the competition in the market and fluctuations in the foreign exchange rates. These risks are monitored closely by the executive board. |
The Russian and the Middle East conflict posed some threat to the shipping of goods later in the year and resulted in increase of freight costs but the situation is somewhat settled now as regards to shipping times from Asia and the impact on cost is not as much as was originally expected. |
Whilst the directors are currently unable to reliably quantify the future impact of these events on the results, the directors expect that the group should be able to withstand any challenges that may arise. |
KEY PERFORMANCE INDICATORS ("KPIS") |
2023 | 2022 |
£ | £ |
Turnover | 24,296,278 | 24,407,845 |
Gross profit percentage | 11.7% | 11.7% |
Net profit before tax and foreign exchanges profits / (losses) | 1,803,506 | 1,826,758 |
Net assets | 8,476,658 | 7,620,891 |
ON BEHALF OF THE BOARD: |
HAYAKAWA INTERNATIONAL (UK) LIMITED (REGISTERED NUMBER: 02818847) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31st December 2023. |
The directors during the year under review were: |
D K Bansal |
K Onoe |
M Hayakawa |
T Hayashi was appointed as director 1st May 2024. |
K Onoe resigned as director 1st May 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of import, manufacture and distribute Wire Harnesses, Cable Assemblies and Automotive Components. |
DIVIDENDS |
The total distribution of dividends for the year ended 31st December 2023 was £360,000 (2022: £1,200,000). |
FUTURE DEVELOPMENTS |
The group is in a strong position to develop it's operations. |
DIRECTORS |
The directors set out in the table below have held office during the whole of the period from 1st January 2023 to the date of this report unless otherwise stated. |
Other changes in directors holding office are as follows: |
T Hayashi was appointed as director 1st May 2024. |
K Onoe resigned as director 1st May 2024. |
The directors shown below were in office at 31st December 2023 but did not hold any interest in the Ordinary shares shares of £1 each at 1st January 2023 or 31st December 2023. |
FINANCIAL INSTRUMENTS |
The group's operations expose it to a variety of financial risks including price risk, credit risk, liquidity risk and cash flow risk. |
The group's principal financial instruments comprise sterling, euro, dollar and yen cash and bank deposit, together with trade debtors and trade creditors that arise directly from operations. |
Credit risk |
The group's credit risk is primarily attributable to its trade debtors. Credit risk is mitigated by monitoring and management of the credit limits given to its customers. |
Price risk |
The group is exposed to currency fluctuations as many raw materials need to be purchased in other currencies. The impact is continuously monitored and the steps are taken to mitigate any negative impacts such as re-quoting the customers or making foreign currency deals when the rates are favorable. |
Liquidity risk/ cash flow risk |
The directors consider that the group has the financial strength to cover the impact of any adverse events. |
HAYAKAWA INTERNATIONAL (UK) LIMITED (REGISTERED NUMBER: 02818847) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
POST BALANCE SHEET EVENTS |
There have been no events since the year end which would materially affect the financial statements. |
FINANCIAL RISK MANAGEMENT |
To mitigate the effects of such risks the directors have established procedures and methods which are reviewed on a regular basis, both on a monitoring basis and as a mechanism to identify new risks and uncertainties and to plan accordingly. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information. |
AUDITORS |
The auditors, M. D. Coxey and Co. Limited, will be proposed for re-appointment at the forthcoming Directors Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HAYAKAWA INTERNATIONAL (UK) LIMITED |
Opinion |
We have audited the financial statements of Hayakawa International (UK) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st December 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 31st December 2023 and of the group's 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 group 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 group's and 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group 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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HAYAKAWA INTERNATIONAL (UK) LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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 four, 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HAYAKAWA INTERNATIONAL (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: |
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 partner ensured that the engagement team collectively had the appropriate competence, |
capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- we identified the laws and regulations applicable to the company through discussions with directors and other |
management; |
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of |
management and inspecting legal correspondence; and |
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to |
instances of non-compliance throughout the audit. |
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; |
To address the risk of fraud through management bias and override of controls, we: |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- tested journal entries to identify unusual transactions; |
- assessed whether judgements and assumptions made in determining accounting estimates were indicative of |
potential bias; and |
- investigated the rationale behind significant or unusual transactions; |
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 Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HAYAKAWA INTERNATIONAL (UK) LIMITED |
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. |
for and on behalf of |
Chartered Accountants |
and Statutory Auditors |
25 Grosvenor Road |
Wrexham |
LL11 1BT |
HAYAKAWA INTERNATIONAL (UK) LIMITED (REGISTERED NUMBER: 02818847) |
CONSOLIDATED |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
TURNOVER | 4 | 24,296,278 | 24,407,845 |
Cost of sales | 21,453,116 | 21,559,122 |
GROSS PROFIT | 2,843,162 | 2,848,723 |
Administrative expenses | 1,296,081 | 735,580 |
1,547,081 | 2,113,143 |
Other operating income | 5 | - | 300 |
OPERATING PROFIT | 7 | 1,547,081 | 2,113,443 |
Interest receivable and similar income | 8 | 74,392 | 11,141 |
1,621,473 | 2,124,584 |
Interest payable and similar expenses | 9 | 45,125 | 11 |
PROFIT BEFORE TAXATION | 1,576,348 | 2,124,573 |
Tax on profit | 10 | 360,581 | 375,651 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,215,767 |
1,748,922 |
Profit attributable to: |
Owners of the parent | 1,215,767 | 1,748,922 |
Total comprehensive income attributable to: |
Owners of the parent | 1,215,767 | 1,748,922 |
HAYAKAWA INTERNATIONAL (UK) LIMITED (REGISTERED NUMBER: 02818847) |
CONSOLIDATED BALANCE SHEET |
31ST DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 13 | 723,342 | 488,163 |
Investments | 14 | - | - |
723,342 | 488,163 |
CURRENT ASSETS |
Stocks | 15 | 4,489,474 | 4,159,534 |
Debtors | 16 | 2,677,318 | 3,829,822 |
Cash at bank and in hand | 3,357,781 | 2,154,657 |
10,524,573 | 10,144,013 |
CREDITORS |
Amounts falling due within one year | 17 | 2,755,215 | 2,979,582 |
NET CURRENT ASSETS | 7,769,358 | 7,164,431 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
8,492,700 |
7,652,594 |
PROVISIONS FOR LIABILITIES | 18 | 16,042 | 31,703 |
NET ASSETS | 8,476,658 | 7,620,891 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 300,000 | 300,000 |
Retained earnings | 20 | 8,176,658 | 7,320,891 |
SHAREHOLDERS' FUNDS | 8,476,658 | 7,620,891 |
The financial statements were approved by the Board of Directors and authorised for issue on 23rd July 2024 and were signed on its behalf by: |
D K Bansal - Director |
HAYAKAWA INTERNATIONAL (UK) LIMITED (REGISTERED NUMBER: 02818847) |
COMPANY BALANCE SHEET |
31ST DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 13 |
Investments | 14 |
CURRENT ASSETS |
Stocks | 15 |
Debtors | 16 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 17 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 18 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 612,605 | 1,199,985 |
The financial statements were approved by the Board of Directors and authorised for issue on |
HAYAKAWA INTERNATIONAL (UK) LIMITED (REGISTERED NUMBER: 02818847) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1st January 2022 | 300,000 | 6,771,969 | 7,071,969 |
Changes in equity |
Dividends | - | (1,200,000 | ) | (1,200,000 | ) |
Total comprehensive income | - | 1,748,922 | 1,748,922 |
Balance at 31st December 2022 | 300,000 | 7,320,891 | 7,620,891 |
Changes in equity |
Dividends | - | (360,000 | ) | (360,000 | ) |
Total comprehensive income | - | 1,215,767 | 1,215,767 |
Balance at 31st December 2023 | 300,000 | 8,176,658 | 8,476,658 |
HAYAKAWA INTERNATIONAL (UK) LIMITED (REGISTERED NUMBER: 02818847) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1st January 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31st December 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31st December 2023 |
HAYAKAWA INTERNATIONAL (UK) LIMITED (REGISTERED NUMBER: 02818847) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,189,587 | 970,232 |
Interest paid | (45,125 | ) | (11 | ) |
Tax paid | (373,807 | ) | (285,935 | ) |
Net cash from operating activities | 1,770,655 | 684,286 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (281,923 | ) | (111,435 | ) |
Sale of tangible fixed assets | - | 20,923 |
Interest received | 74,392 | 11,141 |
Net cash from investing activities | (207,531 | ) | (79,371 | ) |
Cash flows from financing activities |
Equity dividends paid | (360,000 | ) | (1,200,000 | ) |
Net cash from financing activities | (360,000 | ) | (1,200,000 | ) |
Increase/(decrease) in cash and cash equivalents | 1,203,124 | (595,085 | ) |
Cash and cash equivalents at beginning of year |
2 |
2,154,657 |
2,749,742 |
Cash and cash equivalents at end of year | 2 | 3,357,781 | 2,154,657 |
HAYAKAWA INTERNATIONAL (UK) LIMITED (REGISTERED NUMBER: 02818847) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.12.23 | 31.12.22 |
£ | £ |
Profit before taxation | 1,576,348 | 2,124,573 |
Depreciation charges | 46,744 | 51,476 |
Profit on disposal of fixed assets | - | (20,923 | ) |
(Increase)/decrease in group debtor | (10,790 | ) | 14,103 |
Increase/(decrease) in group creditor | (561,090 | ) | 1,306,699 |
Finance costs | 45,125 | 11 |
Finance income | (74,392 | ) | (11,141 | ) |
1,021,945 | 3,464,798 |
Increase in stocks | (329,940 | ) | (1,297,303 | ) |
Decrease/(increase) in trade and other debtors | 1,163,294 | (1,092,849 | ) |
Increase/(decrease) in trade and other creditors | 334,288 | (104,414 | ) |
Cash generated from operations | 2,189,587 | 970,232 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31st December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 3,357,781 | 2,154,657 |
Year ended 31st December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 2,154,657 | 2,749,742 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 2,154,657 | 1,203,124 | 3,357,781 |
2,154,657 | 1,203,124 | 3,357,781 |
Total | 2,154,657 | 1,203,124 | 3,357,781 |
HAYAKAWA INTERNATIONAL (UK) LIMITED (REGISTERED NUMBER: 02818847) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
1. | STATUTORY INFORMATION |
Hayakawa International (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. |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
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. |
3. | 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 financial assets and liabilities and investment properties measured at fair value through profit and loss. |
The financial statements are prepared in sterling, which is the functional currency of the entity. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The group has taken advantage of the following disclosure exemptions 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 paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); |
• | the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A; |
• | the requirement of paragraph 33.7. |
Basis of consolidation |
The financial statements consolidate the financial statements of the Hayakawa International (UK) Limited and all of its subsidiary undertakings. |
The results of subsidiaries acquired or disposed of during the year are included from or to the date that control passes. |
The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not included its individual statement of income and retained earnings. |
The results and financial position of the Group entities that have a functional currency different to the Group's presentational currency of Sterling are translated in the consolidated financial statements at rates prevailing at the balance sheet date. |
HAYAKAWA INTERNATIONAL (UK) LIMITED (REGISTERED NUMBER: 02818847) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
3. | ACCOUNTING POLICIES - continued |
Significant judgements and estimates |
In the application of the Group's accounting policies, management is required to make adjustments, estimates and assumptions about the classification and carrying values of assets and liabilities that are not readily available from other sources. Estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The main sources of estimation uncertainty that could have an effect on the amounts recognised in the financial statements are described below: |
Estimated Useful Life and Residual Value of Fixed Assets. |
As described below, depreciation of tangible fixed assets has been based on estimated useful lives and residual values deemed appropriate by the directors. Estimated useful lives and residual values are reviewed annually and revised as appropriate. |
Stock Impairment Provision |
As described below, stock is valued at the lower of cost and estimated selling price less cost to complete and sell, after making due allowance for obsolete and slow moving items. The allowance for impairment is made based on the age of the stock holding and the rate of consumption and is reviewed on a monthly basis. |
Trade Debtors Impairment Provision |
Trade debtors are initially recorded at the undiscounted amount of cash receivable. Appropriate allowances for estimated irrecoverable amounts are recognised in the Consolidated Statement of Income and Retained Earnings when there is objective evidence that the asset is impaired. The allowances are reviewed annually based on the age of the debt and correspondence with the parties concerned. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. |
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably. |
HAYAKAWA INTERNATIONAL (UK) LIMITED (REGISTERED NUMBER: 02818847) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
3. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. |
Impairment of fixed assets |
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. |
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of cash inflows from other assets of groups of assets. |
For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units. |
Stocks |
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition. The cost of stock issued is recognised as an expense in the Consolidated Statement of Income and Retained Earnings on a first in first out basis. |
Financial instruments |
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instruments is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
Taxation |
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. |
Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences at the reporting date. 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. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference. |
HAYAKAWA INTERNATIONAL (UK) LIMITED (REGISTERED NUMBER: 02818847) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
3. | ACCOUNTING POLICIES - continued |
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. |
Pension costs and other post-retirement benefits |
Contributions to defined contribution plans are recognised as an expense in the period in which the related services is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. |
Provisions |
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. |
Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
31.12.23 | 31.12.22 |
£ | £ |
Sale of goods | 24,296,278 | 24,407,845 |
24,296,278 | 24,407,845 |
An analysis of turnover by geographical market is given below: |
31.12.23 | 31.12.22 |
£ | £ |
United Kingdom | 3,698,329 | 3,328,265 |
Europe | 10,557,267 | 9,897,010 |
Rest of the world | 10,040,682 | 11,182,570 |
24,296,278 | 24,407,845 |
5. | OTHER OPERATING INCOME |
31.12.23 | 31.12.22 |
£ | £ |
Sundry receipts | - | 300 |
HAYAKAWA INTERNATIONAL (UK) LIMITED (REGISTERED NUMBER: 02818847) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
6. | EMPLOYEES AND DIRECTORS |
31.12.23 | 31.12.22 |
£ | £ |
Wages and salaries | 978,594 | 941,080 |
Social security costs | 112,350 | 119,907 |
Other pension costs | 22,346 | 20,123 |
1,113,290 | 1,081,110 |
The average number of employees during the year was as follows: |
31.12.23 | 31.12.22 |
Production staff | 22 | 20 |
Administrative staff | 12 | 11 |
Management staff | 2 | 3 |
The average number of employees by undertakings that were proportionately consolidated during the year was 36 (2022 - 34 ) . |
31.12.23 | 31.12.22 |
£ | £ |
Directors' remuneration | 101,500 | 92,200 |
Directors' pension contributions to money purchase schemes | 6,321 | 6,321 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 1 | 1 |
The aggregate remuneration of key management personnel during the year was £nil (2022: £nil). Key management personnel comprise of members of the senior management team. |
7. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.12.23 | 31.12.22 |
£ | £ |
Depreciation - owned assets | 46,744 | 51,475 |
Profit on disposal of fixed assets | - | (20,923 | ) |
Auditors' remuneration | 16,379 | 15,412 |
Foreign exchange differences | 227,158 | (297,815 | ) |
8. | INTEREST RECEIVABLE AND SIMILAR INCOME |
31.12.23 | 31.12.22 |
£ | £ |
Deposit account interest | 74,392 | 11,141 |
HAYAKAWA INTERNATIONAL (UK) LIMITED (REGISTERED NUMBER: 02818847) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
9. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.23 | 31.12.22 |
£ | £ |
Loan interest | 45,125 | 11 |
10. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Current tax: |
UK corporation tax | 155,012 | 123,022 |
Foreign current taxation | 221,230 | 240,225 |
Total current tax | 376,242 | 363,247 |
Deferred tax | (15,661 | ) | 12,404 |
Tax on profit | 360,581 | 375,651 |
UK corporation tax has been charged at 21 % (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: |
31.12.23 | 31.12.22 |
£ | £ |
Profit before tax | 1,576,348 | 2,124,573 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2022 - 19 %) |
394,087 |
403,669 |
Effects of: |
Capital allowances in excess of depreciation | - | (192 | ) |
Foreign taxation | (25,129 | ) | (22,912 | ) |
Permanent timing differences | 1,729 | 1,207 |
Super-deduction capital allowance | (356 | ) | (6,121 | ) |
Tax rate | (9,750 | ) | - |
Total tax charge | 360,581 | 375,651 |
11. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
12. | DIVIDENDS |
31.12.23 | 31.12.22 |
£ | £ |
Interim | 360,000 | 1,200,000 |
HAYAKAWA INTERNATIONAL (UK) LIMITED (REGISTERED NUMBER: 02818847) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
13. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1st January 2023 | 408,575 | 379,661 | 72,086 |
Additions | 262,659 | 9,215 | 8,941 |
Disposals | - | (22,000 | ) | - |
At 31st December 2023 | 671,234 | 366,876 | 81,027 |
DEPRECIATION |
At 1st January 2023 | 31,321 | 280,027 | 62,595 |
Charge for year | 5,874 | 35,082 | 3,990 |
Eliminated on disposal | - | (22,000 | ) | - |
At 31st December 2023 | 37,195 | 293,109 | 66,585 |
NET BOOK VALUE |
At 31st December 2023 | 634,039 | 73,767 | 14,442 |
At 31st December 2022 | 377,254 | 99,634 | 9,491 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1st January 2023 | 20,722 | 48,196 | 929,240 |
Additions | - | 1,108 | 281,923 |
Disposals | - | - | (22,000 | ) |
At 31st December 2023 | 20,722 | 49,304 | 1,189,163 |
DEPRECIATION |
At 1st January 2023 | 20,722 | 46,412 | 441,077 |
Charge for year | - | 1,798 | 46,744 |
Eliminated on disposal | - | - | (22,000 | ) |
At 31st December 2023 | 20,722 | 48,210 | 465,821 |
NET BOOK VALUE |
At 31st December 2023 | - | 1,094 | 723,342 |
At 31st December 2022 | - | 1,784 | 488,163 |
HAYAKAWA INTERNATIONAL (UK) LIMITED (REGISTERED NUMBER: 02818847) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
13. | TANGIBLE FIXED ASSETS - continued |
Company |
Fixtures |
Freehold | Plant and | and | Computer |
property | machinery | fittings | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1st January 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31st December 2023 |
DEPRECIATION |
At 1st January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 31st December 2022 |
14. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1st January 2023 |
and 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 31st December 2022 |
HAYAKAWA INTERNATIONAL (UK) LIMITED (REGISTERED NUMBER: 02818847) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
14. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: Na Okraji 335/42, Praha 6-Veleslavin, 162 00 |
Nature of business: |
% |
Class of shares: | holding |
31.12.23 | 31.12.22 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
15. | STOCKS |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Materials | 900,631 | 1,146,701 |
Finished goods | 3,588,843 | 3,012,833 |
4,489,474 | 4,159,534 |
16. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Trade debtors | 2,584,345 | 3,702,061 |
Amounts owed by group undertakings | 38,498 | 27,708 |
Prepayments and accrued income | 54,475 | 100,053 |
2,677,318 | 3,829,822 |
17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Trade creditors | 331,959 | 463,435 |
Amounts owed to group undertakings | 1,506,758 | 2,067,848 |
Tax | 116,742 | 114,307 |
Social security and other taxes | 41,140 | 37,926 |
VAT | 152,548 | 171,174 | 30,254 | 37,620 |
Other creditors | 10,131 | 12,933 |
Accrued expenses | 595,937 | 111,959 |
2,755,215 | 2,979,582 |
HAYAKAWA INTERNATIONAL (UK) LIMITED (REGISTERED NUMBER: 02818847) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
18. | PROVISIONS FOR LIABILITIES |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Deferred tax | 16,042 | 31,703 | 34,231 | 39,632 |
Group |
Deferred |
tax |
£ |
Balance at 1st January 2023 | 31,703 |
Movement in the year due to: |
changes in tax allowances | (15,661 | ) |
changes in tax rates |
Balance at 31st December 2023 | 16,042 |
Company |
Deferred |
tax |
£ |
Balance at 1st January 2023 |
Movement in the year due to: |
changes in tax allowances | (5,401 | ) |
changes in tax rates |
Balance at 31st December 2023 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.23 | 31.12.22 |
value: | £ | £ |
Ordinary shares | £1 | 300,000 | 300,000 |
20. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1st January 2023 | 7,320,891 |
Profit for the year | 1,215,767 |
Dividends | (360,000 | ) |
At 31st December 2023 | 8,176,658 |
HAYAKAWA INTERNATIONAL (UK) LIMITED (REGISTERED NUMBER: 02818847) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
20. | RESERVES - continued |
Company |
Retained |
earnings |
£ |
At 1st January 2023 |
Profit for the year |
Dividends | ( |
) |
At 31st December 2023 |
21. | CAPITAL COMMITMENTS |
31.12.23 | 31.12.22 |
£ | £ |
Contracted but not provided for in the |
financial statements | - | - |
22. | RELATED PARTY DISCLOSURES |
Group: |
Both the group and the company are taking advantage of the exemption granted by section 33.1A of FRS 102 not to disclose transactions with wholly owned Hayakawa Electric Wire Co. Limited group of companies who are related parties. |
During the year the company had transactions with the following group companies which are not wholly owned:- |
Hayakawa Electronics Thailand Co Limited |
During the year the UK group sold goods totalling £62,660 (2022: £54,967) to this company and purchased goods amounting to £1,517,684 (2022: £492,836) from this company. At the year end the UK group was owed £1,145 (2022: £9,038) in respect of amounts due for sales delivered and owed £122,466 (2022: £35,004) to this company in respect of purchase of goods. |
Company: |
Hayakawa Electronics Thailand Co Limited |
During the year the UK company sold goods totalling £49,045 (2022: £48,706) to this company and purchased goods amounting to £98,360 (2022: £132,207) from this company. At the year end the UK company was owed £1,145 (2022: £9,038) in respect of amounts due for sales delivered and owed £14,351 (2022: £nil) to this company in respect of purchase of goods. |
23. | ULTIMATE CONTROLLING PARTY |
The company's immediate parent company is Hayakawa International Inc., a company incorporated in the US. The ultimate parent is Hayakawa Electric Wire Co Limited, a company incorporated in Japan which is controlled by Mr M Hayakawa. |