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Registration number: 02004633

Eley Hawk Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2023

 

Eley Hawk Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4 to 7

Statement of Directors' Responsibilities

8

Independent Auditor's Report

9 to 12

Profit and Loss Account

13

Statement of Comprehensive Income

14

Statement of financial position

15

Statement of Changes in Equity

16

Notes to the Financial Statements

17 to 32

 

Eley Hawk Limited

Company Information

Directors

Mr Paolo Pederzoli

Mrs Pilar Maria Astuy

Mr Gilles Roccia

Mr David Aguilar Gomez

Mr Andrea Andreani

Mr Rodrigo Crespo Barreda

Mr Carlos Perez-Lescure Picarzo

Mr Herve Farman

Company secretary

Mr Rodrigo Crespo Barreda

Registered office

Selco Way
First Avenue
Minworth Ind Est
Sutton Coldfield
West Midlands
B76 1BA

Auditors

Walker Hubble
Chartered Accountants
5 Parsons Street
Dudley
West Midlands
DY1 1JJ

 

Eley Hawk Limited

Strategic Report for the Year Ended 31 December 2023

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

Fair review of the business

The current set of accounts represent a 12 month fiscal year in comparison to previous fiscal year of 10 months and conclusions should be drawn taking this into account.

Revenue figure has increased by 31% to £14,605,889 from £11,151,735, while Gross Profit has increased by 42.8% to £3,459,729 from £2,421,288 (24% over sales for 2023 and 22% over sales for 2022). In the meantime, net profit before tax has increased to £1,647,361 from £834,882 (11% over sales for 2023 and 7% over sales for 2022). These three increases are considered to be above the markets.

The investment plan keeps being deployed to meet the growing demands of the company.

The Directors considers that this evolution is aligned with the long-term value creation project of the company.

Business model

The UK market remains the key driver for our business model, where our unique selling position allows the company to offer unique added value products These unique characteristics, in combination with the high quality of our products, are the decisive factor in becoming the first choice of the British shooter.

The company has started to consolidate international business with selected international customers that represent the values and the image of the brand overseas.

Business strategy

Our field sales team and proximity to our customers remains as key elements of our strategy. Unique Selling Proposition Eley Hawk is committed to innovate and develop unique products that will guarantee game and clay shooting in the years to come.

Business review

The company keeps improving its loading capabilities adding capacity and strengthening its workforce. Improved level of activities are expected to be improved through this combination.

 

Eley Hawk Limited

Strategic Report for the Year Ended 31 December 2023 (continued)

The company's key financial and other performance indicators during the year were as follows:

 

Unit

2023

2022

Revenue

£

14,605,889

11,151,735

Gross profit

£

3,459,729

2,421,288

Gross margin

%

24

22

Net profit before tax

£

1,647,361

834,882

Net margin

%

11

7

Principal risks and uncertainties

The company's principal risks include the

Legislative changes both at UK and abroad.

Competitive pressure on prices.

Uncertainty of availability and demand of key raw materials.

Exchange rate evolution.

General economic slowdown of the market.

Approved by the Board on 18 March 2024 and signed on its behalf by:

.........................................
Mr Rodrigo Crespo Barreda
Company secretary and director

   
     
 

Eley Hawk Limited

Directors' Report for the Year Ended 31 December 2023

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

Directors' of the company

The directors, who held office during the year, were as follows:

Mr Paolo Pederzoli

Mrs Pilar Maria Astuy

Mr Gilles Roccia

Mr David Aguilar Gomez

Mr Andrea Andreani

Mr Rodrigo Crespo Barreda - Company secretary and director

Mr Carlos Perez-Lescure Picarzo

Mr Herve Farman

Principal activity

The principal activity of the company is the manufacture of sporting shotgun cartridges

 

Eley Hawk Limited

Directors' Report for the Year Ended 31 December 2023 (continued)

Financial instruments

Objectives and policies

The company's operations expose it to a number of financial risks that include price risk, liquidity risk, credit risk and foreign exchange risk. The directors continually monitor financial risk to ensure appropriate risk management policies are adopted and implemented, either directly or through the group companies, to gain the desired results at a group level.

Price risk, credit risk, liquidity risk and cash flow risk

Price risk:

Eley Hawk purchases three types of metallic raw material:-

1. Lead - where the risk of fluctuating prices is minimised by securing a fixed price when the raw material is purchased. This will normally be the most competitive price available within approximately a month of the purchase order date.

2. Bismuth - where the annual demand is a fraction of the demand for lead ingots and the risk of fluctuating prices is removed by price agreement at the time of placing the order.

3. Steel - where the annual demand is a fraction of the demand for lead ingots, however, the risk of fluctuating prices cannot be removed, and it is also severely affected by shipping costs.

Liquidity risk

The company's liquidity requirements for day to day operations are, and are expected to continue to be, funded by cash provided by operations and by the operation of the company's financing facilities.

Credit risk

The company monitors its exposure to customer credit risk and maintains allowances for anticipated losses after giving consideration to current delinquency data, historical loss experience and economic conditions impacting its customers. Management continuously review information concerning the financial condition of the company's customers and believe that the company's allowance for doubtful accounts is sufficient to cover such risks.

Foreign exchange risk

The company undertakes a number of transactions denominated in Euros, and therefore it is exposed to movements in the Euro to Sterling exchange rates. The company manages this risk through a natural hedging strategy trying to offset both flows.

 

Eley Hawk Limited

Directors' Report for the Year Ended 31 December 2023 (continued)

Employment of disabled persons

Details of the number of employees and related costs can be found in note 8 to the financial statements.

Suitable procedures are in operation to support the company's policy that disabled persons (whether registered or not) shall be considered for employment and subsequent career development and promotion on the basis of their aptitudes and abilities. Wherever possible employees who become disabled are offered retraining for another available position within the company.

The company places considerable value on the involvement of employees and has continued to keep them informed of matters affecting them as employees and on the various factors affecting the performance of the company. This is achieved through formal and informal meetings. Employee representatives are consulted regularly on a wide range of matters affecting their current and future interests.

Future developments

During the 2024 Eley Hawk aims to get one step closer to its natural position, the top level cartridge company both in the International and National arena. This is expected to be achieved through key customers, key events, unique features, and outstanding quality, all in line with the long term value creation project for the company.

Going concern

It is the duty of the directors to consider the appropriateness of the going concern basis of preparation for these financial statements and, in the current climate of general economic uncertainty, this aspect of the business review is even more important.

The company is self-funded, relying on good cash management. Taking into account forecast levels of working capital, capital expenditure and profitability, this level of funding will be sufficient to support normal trading operations.

As at 31st December 2023, the company had net current assets of £4,468,522 (December 2022: £3,763,685), net assets of £3,621,755 (December 2022: £2,957,495) and the cash at bank stands at £1,898,972 (December 2022: £1,216,362).

Having considered the above, and produced trading forecasts the directors are satisfied that Eley Hawk Limited will continue to operate as a going concern into the foreseeable future, including twelve months from the date of this report.

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

 

Eley Hawk Limited

Directors' Report for the Year Ended 31 December 2023 (continued)

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Reappointment of auditors

In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Walker Hubble as auditors of the company is to be proposed at the forthcoming Annual General Meeting.

Approved by the Board on 18 March 2024 and signed on its behalf by:


Mr Rodrigo Crespo Barreda
Company secretary and director

   
     
 

Eley Hawk Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 101 'Reduced Disclosure Framework' ('FRS 101'). 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether FRS 101 has 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 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.

 

Eley Hawk Limited

Independent Auditor's Report to the Members of Eley Hawk Limited

Opinion

We have audited the financial statements of Eley Hawk Limited (the 'company') for the year ended 31 December 2023, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Statement of financial position, 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 (United Kingdom Generally Accepted Accounting Practice), including FRS 101 'Reduced Disclosure Framework'.

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 auditor 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 original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Eley Hawk Limited

Independent Auditor's Report to the Members of Eley Hawk Limited (continued)

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

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 [set out on page 8], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

 

Eley Hawk Limited

Independent Auditor's Report to the Members of Eley Hawk Limited (continued)

Auditor Responsibilities for the audit of the financial statements

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

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

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

Conclude on the appropriateness of the directors' use of the going concern basis of accounting, and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosure are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the company audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal controls that we identify during our audit.

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

 

Eley Hawk Limited

Independent Auditor's Report to the Members of Eley Hawk Limited (continued)

Use of our report

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

......................................
Gavin R Pearson (Senior Statutory Auditor)
For and on behalf of Walker Hubble, Statutory Auditor

5 Parsons Street
Dudley
West Midlands
DY1 1JJ

18 March 2024

 

Eley Hawk Limited

Profit and Loss Account for the Year Ended 31 December 2023

Note

1 January 2023
to
31 December 2023

 
£

1 March 2022
to
31 December 2022

 
£

Revenue

4

14,605,889

11,151,735

Cost of sales

 

(11,146,160)

(8,730,447)

Gross profit

 

3,459,729

2,421,288

Distribution costs

 

(849,859)

(663,306)

Administrative expenses

 

(895,825)

(876,272)

Operating profit

5

1,714,045

881,710

Other interest receivable and similar income

6

-

3,390

Interest payable and similar charges

7

(66,684)

(50,218)

 

(66,684)

(46,828)

Profit before tax

 

1,647,361

834,882

Tax on profit on ordinary activities

10

(383,101)

(180,391)

Profit for the year

 

1,264,260

654,491

The above results were derived from continuing operations.

 

Eley Hawk Limited

Statement of Comprehensive Income for the Year Ended 31 December 2023

1 January 2023
to
31 December 2023

£

1 March 2022
to
31 December 2022

£

Profit for the year

1,264,260

654,491

Total comprehensive income for the year

1,264,260

654,491

 

Eley Hawk Limited

(Registration number: 02004633)
Statement of financial position as at 31 December 2023

Note

31 December
2023
£

31 December
2022
£

Fixed assets

 

Tangible assets

20

703,681

659,184

Current assets

 

Inventories

12

3,220,487

2,919,070

Debtors

13

1,439,084

1,352,569

Cash at bank and in hand

21

1,898,972

1,216,362

Tax asset

 

-

230,603

 

6,558,543

5,718,604

Creditors: Amounts falling due within one year

22

(2,090,021)

(1,981,919)

Net current assets

 

4,468,522

3,736,685

Total assets less current liabilities

 

5,172,203

4,395,869

Provisions for liabilities

14, 10

(1,550,448)

(1,438,374)

Net assets

 

3,621,755

2,957,495

Capital and reserves

 

Called up share capital

15

2

2

Other reserves

 

633,620

633,620

Profit and loss account

 

2,988,133

2,323,873

Shareholders' funds

 

3,621,755

2,957,495

Approved by the board on 18 March 2024 and signed on its behalf by:


Mr Rodrigo Crespo Barreda
Company secretary and director

   
     
 

Eley Hawk Limited

Statement of Changes in Equity for the Year Ended 31 December 2023

Share capital
£

Other reserves
£

Retained earnings
£

Total
£

At 1 January 2023

2

633,620

2,323,873

2,957,495

Profit for the year

-

-

1,264,260

1,264,260

Total comprehensive income

-

-

1,264,260

1,264,260

Dividends

-

-

(600,000)

(600,000)

At 31 December 2023

2

633,620

2,988,133

3,621,755

Share capital
£

Other reserves
£

Retained earnings
£

Total
£

At 1 March 2022

2

633,620

1,669,382

2,303,004

Profit for the year

-

-

654,491

654,491

Total comprehensive income

-

-

654,491

654,491

At 31 December 2022

2

633,620

2,323,873

2,957,495

 

Eley Hawk Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

1

General information

The company is a private company limited by share capital, incorporated and domiciled in England.

The address of its registered office is:
Selco Way
First Avenue
Minworth Ind Est
Sutton Coldfield
West Midlands
B76 1BA
England

These financial statements were authorised for issue by the board on 18 March 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Basis of preparation


These financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework, "Reduced Disclosure Framework"(FRS101). The amendments to FRS 101 (2014/15 Cycle) issued in July 2015 have been applied. The financial statements have been prepared under the historical cost convention, and in accordance with the Companies Act 2006.

FRS 101 sets out a reduced disclosure framework for a "qualifying entity" as defined by the standard which addresses the financial reporting requirements and disclosure exemptions in the individual financial statements of qualifying entities that otherwise apply the recognition, measurement and disclosure requirements of EU-adopted IFRS.

The company is a qualifying entity for the purposes of FRS 101, and Note 24 gives details of the company's ultimate parent undertaking and from where it's consolidated financial statements prepared in accordance with IFRS may be obtained.

The preparation of financial statements in conformity with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 3.

 

Eley Hawk Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

2

Accounting policies (continued)

Summary of disclosure exemptions

In these financial statements, the company has taken advantage of the disclosure exemptions available under FRS 101 in relation to share-based payment, business combinations, non-current assets held for sale, financial instruments, fair value measurements, capital management, revenue from contracts with customers, presentation of comparative period reconciliations for share capital, tangible fixed assets, intangible assets and investment property, presentation of a cash-flow statement, the effects of new standards not yet effective, impairment of assets and disclosures in respect of the compensation of key management personnel and of transactions with a management entity that provides key management personnel services to the company.

Going concern

After making enquiries the directors are satisfied that Eley Hawk Limited will continue to operate as a going concern into the foreseeable future, including the next 12 months from the date of signing the financial statements.

The company is self funded, relying on good cash management. Taking into account forecast levels of working capital, capital expenditure and profitability, this level of funding will be sufficient to support normal trading operations.

Changes in accounting policy

None of the standards, interpretations and amendments effective for the first time from 1 January 2023 have had a material effect on the financial statements.

 

Eley Hawk Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

2

Accounting policies (continued)

Revenue recognition


Revenue is measured at the fair value of the consideration received or receivable, and represents amounts receivable for goods supplied, stated net of discounts, returns and value added taxes. The company recognises revenue when the amount of revenue can be reliably measured; when it is probable that the future economic benefits will flow to the entity; and when specific criteria have been met for each of the company's activities, as described below.

Sale of goods

The company manufactures and sells sporting shotgun ammunition. Sales of goods are recognised when the significant risks and rewards of ownership have passed to the buyer.

Finance income and costs policy


Interest receivable and payable is recognised on an accruals basis.

Foreign currency transactions and balances


(a) Functional and presentation currency

Items included in the financial statements of the company are measured using the currency of the primary economic environment in which the company operates ('the functional currency'). The financial statements are presented in 'Pounds Sterling' (£), which is also the company's functional currency.

(b) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuations where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement. All other foreign exchange gains and losses are presented in the income statement and are taken into account in arriving at the operating profit.

Tax


The tax expense for the period 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 shareholders' funds. In this case, the tax is not recognised in other comprehensive income or directly in shareholders' funds, respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted at the Statement of financial position date in the countries where the company operates and generates taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

 

Eley Hawk Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

2

Accounting policies (continued)

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the reporting date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred income tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.

Tangible assets


Property, plant and equipment are stated at historic cost, net of depreciation and any provision for impairment. Historical cost includes the original purchase price of the asset and the cost attributed to bringing the asset to its working condition for intended use.

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred.

Depreciation

Depreciation is provided at the following annual rates in order to write off each asset to its residual value over its estimated useful life.

The asset's residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within the income statement and are taken into account in arriving at the operating profit.

The rates of depreciation are as follows:

Asset class

Depreciation method and rate

Plant and machinery

3 to 10 years straight line

 

Eley Hawk Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

2

Accounting policies (continued)

Intangible assets

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less any accumulated amortisation and impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.

Negative goodwill arising on an acquisition is recognised directly in the income statement. On disposal of a subsidiary or a jointly controlled entity, the attributable amount of goodwill is included in the determination of the profit or loss recognised in the income statement on disposal.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their expected useful economic life as follows:

Asset class

Amortisation method and rate

Goodwill

Straight line over expected useful life

Cash and cash equivalents


Cash and cash equivalents comprise cash at bank and in hand.

Trade receivables


Trade receivables are amounts due from customers for goods sold in the ordinary course of business. If collection is expected in one year or less (or in the normal operating cycle of the business if longer), they are classified as current assets. If not they are presented as non-current assets.

Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment.

Inventories


Inventories are valued at the lower of cost and net realisable value. In determining the cost of raw materials standard costing is used. Cost includes materials, direct labour and production overheads appropriate to the relevant stage of production. Net realisable value is the price at which stocks can be sold in the normal course of business, after allowing for the costs of realisation. Stocks are regularly reviewed for slow moving, obsolete and defective stock and, where necessary, provision has been made.

Trade payables


Creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Creditors are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.

 

Eley Hawk Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

2

Accounting policies (continued)

Provisions


A provision is recognised when the company has a legal or constructive obligation as a result of a past event; it is probable that the outflow of economic benefits will be required to settle the obligation; and a reliable estimate can be made of the amount of the obligation. If the effect is material, expected future cash flows are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. Where the company expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset but only when recovery is virtually certain. The expense relating to any provision is presented in the income statement net of any reimbursement. Where discounting is used, the increase in the provision due to unwinding the discount is recognised as a future cost.

Share capital


Ordinary shares are classified as equity. The company does not have any preference shares.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the company’s financial statements in the period in which the dividends are approved by the company’s shareholders.

Defined contribution pension obligation


The company operates a defined contribution pension scheme. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. The company has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

The company pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis. The company has no further payment obligations once the contributions have been paid. The contributions are recognised as employee benefit expense when they are due. Contributions payable for the year are charged in the income statement.

 

Eley Hawk Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

3

Critical accounting judgements and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

Inventory provisioning

The company considers the recoverability of the cost of inventory and the associated provisioning required. When assessing the need for an inventory provision, management considers the nature and condition of the inventory, as well as applying assumptions around anticipated saleability of finished goods and future usage of raw materials. See Note 15 below for the carrying amount of the inventory and associated provision.



 

Eley Hawk Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

4

Revenue

The analysis of the company's turnover for the year from continuing operations is as follows:

1 January 2023 to
31 December 2023

£

1 March 2022
to
31 December 2022

£

Sale of goods

14,605,889

11,151,735

5

Operating profit

Arrived at after charging/(crediting)

1 January 2023
to
31 December 2023

£

1 March 2022
to
31 December 2022

£

Depreciation expense

159,827

92,096

Operating lease expense - property

188,110

137,250

Operating lease expense - plant and machinery

36,603

16,466

Operating lease expense - other

21,517

12,300

6

Interest receivable and similar income

1 January 2023
to
31 December 2023

£

1 March 2022
to
31 December 2022

£

Other finance income

-

3,390

7

Interest payable and similar expenses

1 January 2023
to
31 December 2023

£

1 March 2022
to
31 December 2022

£

Interest on bank overdrafts and borrowings

-

1,333

Foreign exchange gains or losses

66,684

48,885

66,684

50,218

 

Eley Hawk Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

8

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

1 January 2023
to
31 December 2023

£

1 March 2022
to
31 December 2022

£

Wages and salaries

1,178,056

858,084

Social security costs

102,414

62,855

Pension costs, defined contribution scheme

32,226

23,988

Other employee expense

20,702

6,563

1,333,398

951,490

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

1 January 2023
to
31 December 2023

No.

1 March 2022
to
31 December 2022

No.

Production

18

16

Administration and support

5

5

Other departments

7

6

30

27

9

Auditors' remuneration

1 January 2023
to
31 December 2023

£

1 March 2022
to
31 December 2022

£

Audit of the financial statements

12,000

10,000


 

 

Eley Hawk Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

10

Income tax

Tax charged/(credited) in the profit and loss account

1 January 2023
to
31 December 2023

£

1 March 2022
to
31 December 2022

£

Current taxation

UK corporation tax

371,027

89,709

Deferred taxation

Arising from origination and reversal of temporary differences

12,074

90,682

Tax expense in the profit and loss account

383,101

180,391

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of 23.52% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

1,647,361

834,882

Corporation tax at standard rate

387,468

158,628

Increase from effect of different UK tax rates on some earnings

715

21,763

Increase from effect of revenues exempt from taxation

(5,082)

-

Total tax charge

383,101

180,391

 

Eley Hawk Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

10

Income tax (continued)

Deferred tax

Deferred tax assets and liabilities

31 December 2023
 

Liability
£

(171,592)

   

31 December 2022

Liability
£

(159,518)

   

Deferred tax movement during the year:

At 1 January 2023
£

Recognised in income
£

At
31 December 2023
£

(159,518)

(12,074)

(171,592)

(159,518)

(12,074)

(171,592)

Deferred tax movement during the prior period:

At 1 March 2022
£

Recognised in income
£

At
31 December 2022
£

(68,836)

(90,682)

(159,518)

(68,836)

(90,682)

(159,518)

Deferred taxes at the balance sheet date have been measured using the enacted rates and reflected in these financial statements.

 

Eley Hawk Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

11

Intangible assets

Goodwill
£

Total
£

Cost or valuation

At 1 January 2023

135,000

135,000

At 31 December 2023

135,000

135,000

Amortisation

At 1 January 2023

135,000

135,000

At 31 December 2023

135,000

135,000

Carrying amount

At 31 December 2023

-

-

12

Inventories

31 December
2023
£

31 December
2022
£

Raw materials and consumables

2,137,975

1,671,406

Finished goods and goods for resale

1,082,512

1,247,664

3,220,487

2,919,070

The cost of Inventories recognised as an expense in the year amounted to £9,702,179 (2022 - £7,869,030). This is included within cost of sales.

There is no significant difference between the replacement cost of inventories and their carrying amounts.

 

Eley Hawk Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

13

Trade and other debtors

31 December
2023
£

31 December
2022
£

Trade and other receivables

1,407,801

1,221,479

Provision for impairment of Trade and other receivables

(108,623)

(84,623)

Net Trade and other receivables

1,299,178

1,136,856

Prepayments

138,056

178,543

Other Trade and other receivables

1,850

37,170

1,439,084

1,352,569

The company's exposure to credit and market risks, including maturity analysis, relating to trade and other receivables is disclosed in the financial risk review note.

Trade and other debtors falling due within one year

31 December
2023
£

31 December
2022
£

Trade Trade and other receivables

1,407,801

1,221,479

Provision for impairment of trade Trade and other receivables

(108,623)

(84,623)

Net trade Trade and other receivables

1,299,178

1,136,856

Prepayments

138,056

178,543

Other Trade and other receivables

1,850

37,170

1,439,084

1,352,569

14

Other provisions

Deferred tax
£

Other provisions
£

Total
£

At 1 January 2023

159,518

1,278,856

1,438,374

Increase (decrease) in existing provisions

12,074

100,000

112,074

At 31 December 2023

171,592

1,378,856

1,550,448

Non-current liabilities

171,592

1,378,856

1,550,448

 

Eley Hawk Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

15

Share capital

Allotted, called up and fully paid shares

 

31 December
2023

31 December
2022

 

No.

£

No.

£

Ordinary Shares of £1 each

2

2

2

2

         

Allotted, called up and fully paid shares

 

31 December
2023

31 December
2022

 

No.

£

No.

£

Ordinary shares of £1 each

2

2

2

2

         

16

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution (stakeholder) pension scheme. The liability of the company is limited to employer's contributions for members of this scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £32,226 (2022 - £23,987).

17

Dividends

   

31 December
2023

 

31 December
2022

   

£

 

£

Interim dividend of £300,000.00 (2022 - £Nil) per ordinary share

 

600,000

 

-

         

Recommended final dividends paid and not recognised in the accounts

The directors are recommending the following final dividends:

£450,000.00 per each Ordinary Shares of £1 each share totalling £900,000

These dividends have not been accrued in the statement of financial position.

 

Eley Hawk Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

18

Related party transactions

The company is a wholly owned subsidiary of Sofisport SA and as such the company has taken advantage of the exemption under paragraph 8 (k) of FRS 101 not to disclose transactions with fellow wholly owned subsidiaries. The consolidated financial statements of the ultimate controlling party, Sofisport, within which this company is included, can be obtained from 57 Rue Pierre Charron 75008, Paris, Ile De France.

19

Parent and ultimate parent undertaking

Sofisport SA acquired the contol of Eley Hawk Limited from the previous ultimate controlling party Maxamcorp Holding SL on the 1st March 2022.

 The company's immediate parent is Sofisport SA.

The most senior parent entity producing publicly available financial statements is Sofisport SA. These financial statements are available upon request from 57 Rue Pierre Charron 75008, Paris, Ile De France, France.

 

Eley Hawk Limited

Notes to the Financial Statements for the Year Ended 31 December 2023 (continued)

20

Tangible assets

Land and buildings
£

Plant and machinery
£

Other Tangible assets
£

Total
£

Cost or valuation

At 1 January 2023

1,240,556

2,587,293

178,263

4,006,112

Additions

111,632

45,608

47,084

204,324

At 31 December 2023

1,352,188

2,632,901

225,347

4,210,436

Depreciation

At 1 January 2023

1,222,780

2,117,934

6,214

3,346,928

Charge for the year

14,830

102,992

42,005

159,827

At 31 December 2023

1,237,610

2,220,926

48,219

3,506,755

Carrying amount

At 31 December 2023

114,578

411,975

177,128

703,681

At 31 December 2022

17,776

469,359

172,049

659,184

21

Cash at bank and in hand

31 December
2023
£

31 December
2022
£

Cash on hand

5

223

Cash at bank

1,898,967

1,216,139

1,898,972

1,216,362

22

Trade and other payables

31 December
2023
£

31 December
2022
£

Trade creditors

215,431

708,627

Accrued expenses

765,608

515,308

Amounts due to related parties

660,016

502,174

Social security and other taxes

121,702

129,329

Other Trade creditors

167,972

126,481

Income tax liability

159,292

-

2,090,021

1,981,919