Company registration number 12861472 (England and Wales)
H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
COMPANY INFORMATION
Directors
Mr B A Beaugeard
Mr P H Buxton
Mr I Peachment
Mr D S Smith
Secretary
Mr David Smith
Company number
12861472
Registered office
C/o Hi Span Ltd
Ayton Road
Wymondham
Norfolk
NR18 0RD
Auditor
Henton & Co LLP
124 Acomb Road
York
YO24 4EY
H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Income statement
8
Group statement of comprehensive income
9
Group statement of financial position
10
Company statement of financial position
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 36
H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Review of the business

The directors are very pleased with the improvement in performance of the group, given the continuing challenging economic environment and are confident that performance would improve in both the short and long term.

 

All subsidiary companies continue to receive the full financial support of the group if required. The completion of the new office and factory facility, along with significant investment in plant & machinery in 2024 will be funded by group resources.

 

The company takes seriously its responsibilities in respect of the Health and Safety of its employees, subcontractors and the public and makes appropriate provision thereof. Statutory Health and Safety requirements are treated as a minimum standard.

 

We have continued with our long-term strategy of reducing carbon emissions. In addition to measuring our own KPI’s to get baseline data for emissions, we have introduced sustainable solutions promoting the use of EAF (Electric arc furnace) and ‘Green’ steel raw materials, and HVO fuel (Hydrotreated Vegetable Oil) as a replacement for diesel. We have also commenced reporting carbon emissions to some of our main contractor clients. We maintained ‘Gold’ membership of the Supply Chain Sustainability School and upgraded to ‘Silver‘ membership of the BCSA Sustainability Charter. ISO 45001 has been implemented to create a safe and healthy workplace for employees and visitors.

 

As with most companies, the company operates in an increasingly complex and competitive business environment and as such is potentially vulnerable to normal business risks such as market competition, pressures on cashflow and the effects of the current economic climate, including bad and doubtful debts, although these are insured against.

Principal risks and uncertainties

As with most companies, the company operates in an increasingly complex and competitive business environment and as such is potentially vulnerable to normal business risks. The directors deem the principal risks to be market competition, sudden raw material price changes, cyber crime, pressures on cash-flow and the effects of a change in the economic climate, including bad and doubtful debts, although these are insured against.

 

In view of these risks, the directors are aware that the continued development of the company may be affected by factors outside their control, although in order to mitigate this, both existing and potential new markets and customers are continually reviewed.

Key performance indicators

The company uses a range of performance measures as a means to monitor and manage the business. The key financial performance indicators are those of turnover and net profit before tax. The KPI’s for the period ended 31st December 2023 are as follows:-

 

 

2023

2022

Turnover (£000)

16,277

15,600

 

 

 

Other (Losses)/Gains (£'000)

-

-

Net (Loss)/Profit Before Tax (£’000)

798

605

 

 

The directors are satisfied with the strength of these indicators.

H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

Future Developments

The directors anticipate that the business environment will become more challenging, although they believe the company’s good financial strength stands it in good stead.

Financial instruments

The group operates a centralised treasury function which is responsible for managing the liquidity and cashflow requirements associated with the group’s activities.

The company has maintained tight controls in respect of the collection of trade debtors and retains favourable payment terms with its core suppliers.

The company has a normal level of exposure to price, credit liquidity and cash flow risks arising from trading activities conducted in sterling. There are no formal hedging arrangements in place.

Research and Development

The company continually re-evaluates its products with regard to the future needs of the industry. Regular reviews of products and methods of production are held in order to increase the efficiency and therefore profitability of the company.

On behalf of the board

Mr D S Smith
Director
17 September 2024
H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Principal activities

Construction engineering, steel fabrication processing and property management continue to be the principal activities of the group.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £30,000. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr B A Beaugeard
Mr P H Buxton
Mr I Peachment
Mr D S Smith
Auditor

The auditor, Henton & Co LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Medium-sized companies exemption

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

On behalf of the board
Mr D S Smith
Director
17 September 2024
H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
- 5 -
Opinion

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

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
- 6 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

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

Use of our report

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

H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
- 7 -
Brett Davis
For and on behalf of
17 September 2024
Henton & Co LLP
Chartered Accountants
Statutory Auditor
124 Acomb Road
York
YO24 4EY
H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
GROUP INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Revenue
3
16,277,673
15,600,433
Change in stocks of finished goods and in work in progress
655,370
410,085
Other operating income
26,249
21,767
Raw materials and consumables
(6,272,257)
(6,688,800)
Other external expenses
(5,187,647)
(4,366,317)
Gross profit
5,499,388
4,977,168
Staff costs
5
(3,924,579)
(3,133,519)
Depreciation and other amounts written off tangible and intangible fixed assets
4
(271,100)
(247,115)
Other operating expenses
(872,779)
(776,591)
Operating profit
4
430,930
819,943
Investment income
6
108,571
50,830
Finance costs
7
162,372
1,000
Other gains and losses
8
96,283
(266,648)
Profit before taxation
798,156
605,125
Tax on profit
9
(195,448)
(23,994)
Profit for the financial year
602,708
581,131
Profit for the financial year is all attributable to the owners of the parent company.
H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
£
£
Profit for the year
602,708
581,131
Other comprehensive income
Actuarial loss on defined benefit pension schemes
(66,000)
(563,000)
Cash flow hedges gain arising in the year
-
0
-
0
Total comprehensive income for the year
536,708
18,131
Total comprehensive income for the year is all attributable to the owners of the parent company.
H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
12
3,978,193
2,808,453
Investment property
13
265,360
265,360
Investments
14
3,131,599
2,793,072
7,375,152
5,866,885
Current assets
Inventories
16
1,808,188
1,370,634
Trade and other receivables
17
3,096,598
3,920,774
Cash and cash equivalents
2,514,326
2,496,099
7,419,112
7,787,507
Current liabilities
18
(3,819,060)
(3,381,343)
Net current assets
3,600,052
4,406,164
Total assets less current liabilities
10,975,204
10,273,049
Provisions for liabilities
Deferred tax liability
19
299,585
104,138
(299,585)
(104,138)
Net assets
10,675,619
10,168,911
Equity
Called up share capital
21
7,066,000
7,066,000
Revaluation reserve
963,769
963,769
Capital redemption reserve
3,353,310
3,353,310
Retained earnings
(707,460)
(1,214,168)
Total equity
10,675,619
10,168,911

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 17 September 2024 and are signed on its behalf by:
17 September 2024
Mr P H Buxton
Director
Company registration number 12861472 (England and Wales)
H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Non-current assets
Investments
14
10,719,270
10,719,270
Current assets
-
-
Current liabilities
18
(299,960)
(299,960)
Net current liabilities
(299,960)
(299,960)
Net assets
10,419,310
10,419,310
Equity
Called up share capital
21
7,066,000
7,066,000
Capital redemption reserve
3,353,310
3,353,310
Total equity
10,419,310
10,419,310

As permitted by s408 Companies Act 2006, the company has not presented its own income statement and related notes. The company’s profit for the year was £30,000 (2022 - £0 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 17 September 2024 and are signed on its behalf by:
17 September 2024
Mr P H Buxton
Director
Company registration number 12861472 (England and Wales)
H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Revaluation reserve
Capital redemption reserve
Other reserves
Retained earnings
Total
Notes
£
£
£
£
£
£
Balance at 1 January 2022
7,066,000
963,769
3,353,310
(406,000)
(826,299)
10,150,780
Year ended 31 December 2022:
Profit for the year
-
-
-
-
581,131
581,131
Other comprehensive income:
Actuarial gains on defined benefit plans
-
-
-
-
(563,000)
(563,000)
Total comprehensive income
-
-
-
-
18,131
18,131
Transfers
-
-
-
406,000
(406,000)
-
Balance at 31 December 2022
7,066,000
963,769
3,353,310
-
(1,214,168)
10,168,911
Year ended 31 December 2023:
Profit for the year
-
-
-
-
602,708
602,708
Other comprehensive income:
Actuarial gains on defined benefit plans
-
-
-
-
(66,000)
(66,000)
Total comprehensive income
-
-
-
-
536,708
536,708
Dividends
10
-
-
-
-
(30,000)
(30,000)
Balance at 31 December 2023
7,066,000
963,769
3,353,310
-
(707,460)
10,675,619
H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Capital redemption reserve
Retained earnings
Total
Notes
£
£
£
£
Balance at 1 January 2022
7,066,000
3,353,310
-
0
10,419,310
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
-
0
Balance at 31 December 2022
7,066,000
3,353,310
-
0
10,419,310
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
30,000
30,000
Dividends
10
-
-
(30,000)
(30,000)
Balance at 31 December 2023
7,066,000
3,353,310
-
0
10,419,310
H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
24
1,654,368
(217,624)
Interest paid
(31,628)
-
0
Income taxes refunded
-
0
31,319
Net cash inflow/(outflow) from operating activities
1,622,740
(186,305)
Investing activities
Purchase of property, plant and equipment
(1,474,084)
(839,974)
Proceeds from disposal of property, plant and equipment
33,244
25,222
Purchase of investments
(1,222,144)
-
Proceeds from disposal of investments
979,900
265,564
Interest received
61,972
4,681
Dividends received
46,599
46,149
Net cash used in investing activities
(1,574,513)
(498,358)
Financing activities
Dividends paid to equity shareholders
(30,000)
-
0
Net cash used in financing activities
(30,000)
-
Net increase/(decrease) in cash and cash equivalents
18,227
(684,663)
Cash and cash equivalents at beginning of year
2,496,099
3,180,762
Cash and cash equivalents at end of year
2,514,326
2,496,099
H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Investing activities
Dividends received
30,000
-
0
Net cash generated from/(used in) investing activities
30,000
-
Financing activities
Dividends paid to equity shareholders
(30,000)
-
Net cash used in financing activities
(30,000)
-
Net increase in cash and cash equivalents
-
-
Cash and cash equivalents at beginning of year
-
0
-
0
Cash and cash equivalents at end of year
-
0
-
0
H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information

H Young Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is C/o Hi Span Ltd, Ayton Road, Wymondham, Norfolk, NR18 0RD.

 

The group consists of H Young Group Limited and all of its subsidiaries.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company H Young Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group statement of financial position at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Revenue

Revenue is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 1 year.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
Not depreciated
Leasehold land and buildings
Over period of lease
Plant and equipment
5 % - 33% straight line
Fixtures and fittings
10% - 33% straight line
Motor vehicles
20% - 33% straight line
Bicycles
25% straight line

No depreciation has been provided in respect of a Freehold Building owned by a Subsidiary Company which is not in accordance with FRS 102 nor with the requirements of the Companies Act 1985 but in the opinion of the Directors the departure is not material.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

1.8
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

1.9
Non-current investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.10
Impairment of non-current assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.11
Inventories

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.

 

Inventories held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.12
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.13
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
Basic financial liabilities

Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.15
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.16
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.17
Retirement benefits

The Group operates a defined contribution pension scheme (DCPS) to provide retirement benefits for its employees. Contributions payable to the DCPS are charged to the profit and loss account in the year they are payable.

1.18
Leases

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.19
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
3
Revenue
2023
2022
£
£
Revenue analysed by class of business
Steel fabrication/erection
16,277,673
15,600,433
2023
2022
£
£
Other revenue
Interest income
61,972
4,681
Dividends received
46,599
46,149
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Fees payable to the group's auditor for the audit of the group's financial statements
-
-
Depreciation of owned property, plant and equipment
293,340
240,492
Profit on disposal of property, plant and equipment
(22,240)
(13,750)
Impairment of intangible assets
-
0
16,770
(Profit)/loss on disposal of intangible assets
-
3,603
5
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Works
38
42
-
-
Office & managerial
39
40
-
-
Employees
1
1
-
-
Directors
4
4
4
4
Total
82
87
4
4
H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Employees
(Continued)
- 24 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
3,141,378
2,933,029
-
0
-
0
Social security costs
313,192
306,998
-
-
Pension costs
470,009
(106,508)
-
0
-
0
3,924,579
3,133,519
-
0
-
0
6
Investment income
2023
2022
£
£
Interest income
Interest on bank deposits
43,174
1,567
Other interest income
18,798
3,114
Total interest revenue
61,972
4,681
Other income from investments
Dividends received
46,599
46,149
Total income
108,571
50,830
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
43,174
1,567
7
Finance costs
2023
2022
£
£
Other finance costs:
Net interest on the net defined benefit liability
(194,000)
(1,000)
Other interest
31,628
-
Total finance costs
(162,372)
(1,000)
8
Other gains and losses
2023
2022
£
£
Fair value gains/(losses) on financial instruments
Gain/(loss) on financial assets held at fair value through profit or loss
96,283
(266,648)
H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
9
Taxation
2023
2022
£
£
Current tax
Adjustments in respect of prior periods
-
0
(31,319)
Deferred tax
Origination and reversal of timing differences
195,448
34,291
Changes in tax rates
-
0
21,022
Total deferred tax
195,448
55,313
Total tax charge
195,448
23,994

The Finance Act 2021 was substantially enacted in May 2021 and has increased the corporation tax rate from 19% to 25% with effect from 1 April 2023. The deferred taxation balances have been measured using the rates expected to apply in the reporting periods when the timing differences reverse.

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
798,156
605,125
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
187,726
114,974
Tax effect of expenses that are not deductible in determining taxable profit
5,077
59,734
Tax effect of income not taxable in determining taxable profit
(10,960)
(8,768)
Tax effect of utilisation of tax losses not previously recognised
(119,758)
(15,781)
Unutilised tax losses carried forward
17,371
160,481
Permanent capital allowances in excess of depreciation
(79,456)
(149,576)
Research and development tax credit
-
0
(31,319)
Pension scheme
-
0
(161,064)
Deferred taxation
195,448
55,313
Taxation charge
195,448
23,994

The group has unused tax losses of £3,173,591 (2022: £3,608,909).

10
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
30,000
-
H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
11
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
Notes
£
£
In respect of:
Goodwill
-
16,770
Recognised in:
Administrative expenses
-
16,770

The impairment losses in respect of financial assets are recognised in other gains and losses in the income statement.

H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
12
Property, plant and equipment
Group
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Bicycles
Total
£
£
£
£
£
£
£
Cost or valuation
At 1 January 2023
1,415,602
75,623
3,084,877
477,867
313,900
11,760
5,379,629
Additions
803,967
-
0
504,163
12,206
153,165
583
1,474,084
Disposals
-
0
-
0
(39,182)
(10,019)
(86,890)
-
0
(136,091)
At 31 December 2023
2,219,569
75,623
3,549,858
480,054
380,175
12,343
6,717,622
Depreciation and impairment
At 1 January 2023
-
0
32,310
1,973,559
413,678
143,487
8,142
2,571,176
Depreciation charged in the year
16,079
1,080
180,640
27,363
65,886
2,292
293,340
Eliminated in respect of disposals
-
0
-
0
(36,884)
(10,019)
(78,184)
-
0
(125,087)
At 31 December 2023
16,079
33,390
2,117,315
431,022
131,189
10,434
2,739,429
Carrying amount
At 31 December 2023
2,203,490
42,233
1,432,543
49,032
248,986
1,909
3,978,193
At 31 December 2022
1,415,602
43,313
1,111,318
64,189
170,413
3,618
2,808,453
The company had no property, plant and equipment at 31 December 2023 or 31 December 2022.
H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -

Freehold Land and Buildings occupied by a Subsidiary Company are included at a Valuation by the Directors utilising an open market value for the existing use basis and subsequent capital outlay. The Directors reviewed this valuation during the year and concluded that no adjustment was necessary.

 

If these properties were sold for their revalued amounts it would be necessary to replace them with similar property, and rollover relief against corporation tax on the gain would be available. Accordingly, no timing differences arise and no provision has been made for deferred tax in respect of revaluations.

 

As stated in the accounting policies no depreciation has been provided on freehold buildings which is not in accordance with the requirements of FRS 102 and of the Companies Act 2006. The directors consider that the stated value of land and buildings show a true and fair view. If provision had been made in accordance with the FRS 102, on the assumption that the useful life of the building was 50 years, the depreciation charge for a financial year based on the revaluation would be approximately £27,000 although this ignores any division of the carrying value of the asset between land and buildings. The directors consider this departure is not material.

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

2023
2022
£
£
Group
Cost
412,593
412,593
13
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 January 2023 and 31 December 2023
265,360
-

Investment property comprises of the Kimberley site in Wymondham. The fair value of the investment property has been arrived at on the basis of a valuation carried out at 6 March 2018 by Brown & Co Chartered Surveyors, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
10,719,270
10,719,270
Listed investments
3,131,599
2,793,072
-
0
-
0
3,131,599
2,793,072
10,719,270
10,719,270
H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Fixed asset investments
(Continued)
- 29 -
Movements in non-current investments
Group
Investments
£
Cost or valuation
At 1 January 2023
2,793,072
Additions
1,222,144
Valuation changes
96,282
Disposals
(979,899)
At 31 December 2023
3,131,599
Carrying amount
At 31 December 2023
3,131,599
At 31 December 2022
2,793,072
Movements in non-current investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
10,719,270
Carrying amount
At 31 December 2023
10,719,270
At 31 December 2022
10,719,270
15
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
H. Young & Co, Ltd
Ayton Road, Wymondham, Norfolk, NR18 0RD
Ordinary
100.00
-
H. Young Structures Ltd
Ayton Road, Wymondham, Norfolk, NR18 0RD
Ordinary
0
100.00
Hi-Span Ltd
Ayton Road, Wymondham, Norfolk, NR18 0RD
Ordinary
0
100.00
Thircon Ltd
Ayton Road, Wymondham, Norfolk, NR18 0RD
Ordinary
0
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
15
Subsidiaries
(Continued)
- 30 -
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
H. Young & Co, Ltd
3,906,536
337,650
H. Young Structures Ltd
1,641,185
338,467
Hi-Span Ltd
4,851,771
421,377
Thircon Ltd
927,565
100,663
16
Inventories
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
399,415
617,231
-
-
Work in progress
1,303,765
667,660
-
-
Finished goods and goods for resale
105,008
85,743
-
0
-
0
1,808,188
1,370,634
-
-
17
Trade and other receivables
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade receivables
2,520,831
2,570,413
-
0
-
0
Corporation tax recoverable
389
389
-
0
-
0
Other receivables
422,906
1,171,447
-
0
-
0
Prepayments and accrued income
152,472
178,525
-
0
-
0
3,096,598
3,920,774
-
-
18
Current liabilities
Group
Company
2023
2022
2023
2022
£
£
£
£
Payments received on account
867,567
111,962
-
0
-
0
Trade payables
1,896,347
2,512,860
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
299,960
299,960
Other taxation and social security
110,217
151,784
-
-
Other payables
40,933
40,522
-
0
-
0
Accruals and deferred income
903,996
564,215
-
0
-
0
3,819,060
3,381,343
299,960
299,960
H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
318,341
233,602
Tax losses
(18,756)
(129,464)
299,585
104,138
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
104,138
-
Charge to profit or loss
195,447
-
Liability at 31 December 2023
299,585
-

The reversal of deferred tax in the year commencing 1 January 2024 is not expected to be material.

20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
278,788
422,295

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

Defined benefit schemes

The Group also participates in a funded defined benefit scheme administered by H. Young & Co. Limited providing benefits based on final pensionable salary although the scheme closed in respect of future benefit accrual after 31 March 2010.

H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Retirement benefit schemes
(Continued)
- 32 -
Valuation

 

The Scheme's assets are held separately from those of the Group in an independently administered fund to meet long-term pension liabilities to past and present employees. The trustees of the Scheme are required to act in the best interest of the Scheme's beneficiaries. The appointment of members of the trustee board is determined by the trust documentation.

 

The liabilities of the Scheme are measured by discounting the best estimate of future cash flows to be paid out of the Scheme using the projected unit method. This amount is reflected in the deficit in the balance sheet.

 

The liabilities set out in this note have been calculated based on data which is being used for the purpose of the actuarial valuation at 1 July 2022, updated to 31 December 2023. The results of the calculations and the assumptions adopted are shown below.

 

Contributions were payable to the Scheme by the Company at the rates set out in the schedule of contributions dated 20 March 2023. The Company contributions expected to be made in the year commencing 1 January 2024 are £nil.

Funding policy

Contributions to the defined benefit scheme are determined by a qualified independent actuary based upon triennial valuations using the projected unit method and are charged to the profit and loss account so as to spread the cost over employee's working lives with the Company. The most recent actuarial valuation in respect of the Parent Company scheme was at 1 July 2022. This was approved by the trustees on 20 March 2023.The advice from the Actuary was that no deficit contributions are due from the company as the scheme was in surplus at the valuation date.

 

The assumptions utilised which have the most significant effect upon the actuarial results were that pre-retirement discount rate would be 4.1% per annum and that price inflation (CPI) would be 3.3% per annum. The actuarial valuation at 31 December 2023 indicated that the market value of the scheme's assets was £10,631,000 and that this fund value was more than the benefits that had accrued to members of £7,017,000.

 

The disclosures set our below are based on calculations carried out at 31 December 2023 by a qualified actuary.

2023
2022
Key assumptions
%
%
Discount rate
4.6
4.85
Expected rate of increase of pensions in payment
2.8
2.8
Retail Price Index Inflation
3.3
3.4
Consumer Price Index Inflation
2.8
2.8
H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Retirement benefit schemes
(Continued)
- 33 -

The amounts included in the statement of financial position arising from obligations in respect of defined benefit plans are as follows:

2023
2022
Group
£
£
Present value of defined benefit obligations
7,017,000
6,755,000
Fair value of plan assets
(10,631,000)
(10,769,000)
Deficit in scheme
(3,614,000)
(4,014,000)
Restriction on scheme assets
3,614,000
4,014,000
Total liability recognised
-
-
The company had no post employment benefits at 31 December 2023 or 1 January 2023.
Group
2023
2022

Amounts recognised in the income statement

£
£
Net interest on net defined benefit liability/(asset)
(194,000)
(1,000)
Other costs and income
128,000
32,000
Total costs/(income)
(66,000)
31,000
Group
2023
2022

Amounts taken to other comprehensive income

£
£
Actual return on scheme assets
(220,000)
1,117,000
Less: calculated interest element
514,000
214,000
Return on scheme assets excluding interest income
294,000
1,331,000
Actuarial changes related to obligations
172,000
(4,782,000)
Effect of changes in the amount of surplus that is not recoverable
(400,000)
4,014,000
Total costs
66,000
563,000
H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Retirement benefit schemes
(Continued)
- 34 -
Group
2023

Movements in the present value of defined benefit obligations

£
Liabilities at 1 January 2023
6,755,000
Past service cost
80,000
Benefits paid
(310,000)
Actuarial gains and losses
172,000
Interest cost
320,000
At 31 December 2023
7,017,000
Group
2023

The defined benefit obligations arise from plans funded as follows:

£
Wholly unfunded obligations
-
Wholly or partly funded obligations
7,017,000
7,017,000
Group
2023

Movements in the fair value of plan assets

£
Fair value of assets at 1 January 2023
10,769,000
Interest income
514,000
Return on plan assets (excluding amounts included in net interest)
(294,000)
Benefits paid
(310,000)
Other
(48,000)
At 31 December 2023
10,631,000

The actual return on plan assets was £220,000 (2022 - £1,117,000).

H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Retirement benefit schemes
(Continued)
- 35 -

Fair value of plan assets at the reporting period end

Group
2023
2022
£
£
Equity instruments
-
4,092,220
Corporate bonds
8,947,000
2,261,490
Alternatives
2,000
1,723,040
Cash
566,000
1,399,970
Annuities
1,116,000
1,292,280
10,631,000
10,769,000

The pension scheme has not invested in any of H Young Group Limited's own financial instruments, nor in properties or other assets used by H Young Group. Limited.

21
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of 10p each
10,671,460
10,671,460
1,067,147
1,067,147
Ordinary B shares of 10p each
59,988,540
59,988,540
5,998,853
5,998,853
70,660,000
70,660,000
7,066,000
7,066,000
22
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2023
2022
2023
2022
£
£
£
£
Acquisition of property, plant and equipment
-
158,454
-
-
23
Related party transactions

Transactions with group companies are eliminated on consolidation.

H YOUNG GROUP LIMITED CONSOLIDATED ACCOUNTS
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 36 -
24
Cash generated from/(absorbed by) group operations
2023
2022
£
£
Profit for the year after tax
602,708
581,131
Adjustments for:
Taxation charged
195,448
23,994
Finance costs
(162,372)
(1,000)
Investment income
(108,571)
(50,830)
Gain on disposal of property, plant and equipment
(22,240)
(13,750)
(Gain)/loss on disposal of intangible assets
-
3,603
Amortisation and impairment of intangible assets
-
16,770
Depreciation and impairment of property, plant and equipment
293,340
240,492
Other gains and losses
(96,283)
266,648
Pension scheme non-cash movement
128,000
(1,307,873)
Movements in working capital:
Increase in inventories
(437,554)
(309,389)
Decrease/(increase) in trade and other receivables
824,175
(171,031)
Increase in trade and other payables
437,717
503,611
Cash generated from/(absorbed by) operations
1,654,368
(217,624)
25
Cash absorbed by operations - company
2023
2022
£
£
Profit for the year after tax
30,000
-
Adjustments for:
Investment income
(30,000)
-
0
Cash absorbed by operations
-
-
26
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
2,496,099
18,227
2,514,326
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