IRIS Accounts Production v24.2.0.383 SC121685 Board of Directors 1.1.23 31.12.23 31.12.23 wholesaler in the hardware and general household goods sector. true false true true false false true false Ordinary 1.00000 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REGISTERED NUMBER: SC121685 (Scotland)















STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

HOME HARDWARE (SCOTLAND) LIMITED

HOME HARDWARE (SCOTLAND) LIMITED (REGISTERED NUMBER: SC121685)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023










Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Income Statement 7

Other Comprehensive Income 8

Balance Sheet 9

Statement of Changes in Equity 10

Cash Flow Statement 11

Notes to the Cash Flow Statement 12

Notes to the Financial Statements 14


HOME HARDWARE (SCOTLAND) LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: C J McEwan
B Ferguson
F Leary
D O'Ware





REGISTERED OFFICE: 26A Dalry Road
Ardrossan
Ayrshire
KA22 7GQ





REGISTERED NUMBER: SC121685 (Scotland)





AUDITORS: Galbraith Pritchards
Chartered Accountants & Statutory Auditor
20 Barns Street
Ayr
Ayrshire
KA7 1XA

HOME HARDWARE (SCOTLAND) LIMITED (REGISTERED NUMBER: SC121685)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023


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

REVIEW OF BUSINESS
The company continues to operate as a wholesaler in the hardware and general household goods sector. The buying group and its members trade under the banner Home Hardware as hardware and general household goods providers. We maintain a comprehensive buying and marketing solution for our members backed by our extensive use of warehousing technology and systems. The Home Hardware Direct website was re-platformed in May 2023.

PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks facing the company are continued uncertainty about consumer behaviour in relation to ongoing high inflation and a severe contraction in consumer spending in the wider economy. Shipping and container prices had decreased to levels just ahead of 2019, but have subsequently risen sharply again, although the supply chain has become more robust. The most pressing issue for 2023 was the pressure on consumer spending from inflated energy, food and housing costs. This has clearly affected consumer spending and is likely to be a longer-term situation, which is also marked by political instability, both of which undermine business development and investment. On costs for consumers reflect similar rises in the cost of doing business with large increases in energy, insurance, cost of goods, and cost of materials to businesses showing a marked increase since 2020.


Key performance indicators for the company includes comparing current and past turnover on a monthly basis by both customer and sales category.

The company assesses cash flow on a weekly basis together with reviewing members' sales ledger balances to ensure adequate cash resources are available and debtor default minimised.

ON BEHALF OF THE BOARD:





F Leary - Director


23 September 2024

HOME HARDWARE (SCOTLAND) LIMITED (REGISTERED NUMBER: SC121685)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023


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

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2023.

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

C J McEwan
B Ferguson
F Leary
D O'Ware

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

AUDITORS
The auditors, Galbraith Pritchards, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





F Leary - Director


23 September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HOME HARDWARE (SCOTLAND) LIMITED


Opinion
We have audited the financial statements of Home Hardware (Scotland) Limited (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

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

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

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

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HOME HARDWARE (SCOTLAND) LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

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

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

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and, enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HOME HARDWARE (SCOTLAND) LIMITED


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




Marguerite Roos BAcc CA (Senior Statutory Auditor)
for and on behalf of Galbraith Pritchards
Chartered Accountants & Statutory Auditor
20 Barns Street
Ayr
Ayrshire
KA7 1XA

24 September 2024

HOME HARDWARE (SCOTLAND) LIMITED (REGISTERED NUMBER: SC121685)

INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

31/12/23 31/12/22
Notes £    £    £    £   

TURNOVER 11,034,687 11,629,755

Cost of sales 9,081,417 9,556,416
GROSS PROFIT 1,953,270 2,073,339

Distribution costs 1,037,561 1,063,821
Administrative expenses 1,066,070 1,036,010
2,103,631 2,099,831
(150,361 ) (26,492 )

Other operating income 347,315 328,192
OPERATING PROFIT 4 196,954 301,700

Interest receivable and similar income 8,363 183
205,317 301,883

Interest payable and similar expenses 5 9,392 8,813
PROFIT BEFORE TAXATION 195,925 293,070

Tax on profit 6 48,842 39,138
PROFIT FOR THE FINANCIAL YEAR 147,083 253,932

HOME HARDWARE (SCOTLAND) LIMITED (REGISTERED NUMBER: SC121685)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

31/12/23 31/12/22
Notes £    £   

PROFIT FOR THE YEAR 147,083 253,932


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

147,083

253,932

HOME HARDWARE (SCOTLAND) LIMITED (REGISTERED NUMBER: SC121685)

BALANCE SHEET
31 DECEMBER 2023

31/12/23 31/12/22
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 7 883,776 944,767
Investments 8 17,100 15,100
900,876 959,867

CURRENT ASSETS
Stocks 9 4,001,876 4,220,219
Debtors 10 1,560,268 1,360,083
Cash at bank and in hand 402,941 772,013
5,965,085 6,352,315
CREDITORS
Amounts falling due within one year 11 1,283,598 1,618,161
NET CURRENT ASSETS 4,681,487 4,734,154
TOTAL ASSETS LESS CURRENT
LIABILITIES

5,582,363

5,694,021

CREDITORS
Amounts falling due after more than one
year

12

(3,586,792

)

(3,836,361

)

PROVISIONS FOR LIABILITIES 16 (41,381 ) (50,553 )
NET ASSETS 1,954,190 1,807,107

CAPITAL AND RESERVES
Called up share capital 17 50,000 50,000
Other reserves 18 148,476 221,797
Retained earnings 18 1,755,714 1,535,310
SHAREHOLDERS' FUNDS 1,954,190 1,807,107

The financial statements were approved by the Board of Directors and authorised for issue on 23 September 2024 and were signed on its behalf by:





F Leary - Director


HOME HARDWARE (SCOTLAND) LIMITED (REGISTERED NUMBER: SC121685)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023

Called up
share Retained Other Total
capital earnings reserves equity
£    £    £    £   
Balance at 1 January 2022 50,000 1,281,378 221,797 1,553,175

Changes in equity
Total comprehensive income - 253,932 - 253,932
Balance at 31 December 2022 50,000 1,535,310 221,797 1,807,107

Changes in equity
Total comprehensive income - 220,404 (73,321 ) 147,083
Balance at 31 December 2023 50,000 1,755,714 148,476 1,954,190

HOME HARDWARE (SCOTLAND) LIMITED (REGISTERED NUMBER: SC121685)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

31/12/23 31/12/22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (167,834 ) 398,511
Interest paid (7,637 ) (5,602 )
Interest element of hire purchase payments
paid

(1,755

)

(3,211

)
Tax paid (69,245 ) (81,786 )
Net cash from operating activities (246,471 ) 307,912

Cash flows from investing activities
Purchase of tangible fixed assets (41,713 ) (55,518 )
Purchase of fixed asset investments (2,000 ) -
Sale of tangible fixed assets - 369
Interest received 8,363 183
Net cash from investing activities (35,350 ) (54,966 )

Cash flows from financing activities
Loan repayments in year (62,500 ) (62,500 )
Capital repayments in year (24,751 ) (41,755 )
Net cash from financing activities (87,251 ) (104,255 )

(Decrease)/increase in cash and cash equivalents (369,072 ) 148,691
Cash and cash equivalents at beginning of
year

2

772,013

623,322

Cash and cash equivalents at end of year 2 402,941 772,013

HOME HARDWARE (SCOTLAND) LIMITED (REGISTERED NUMBER: SC121685)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
31/12/23 31/12/22
£    £   
Profit before taxation 195,925 293,070
Depreciation charges 102,704 120,818
Loss on disposal of fixed assets - 803
Amount owed to group undertakings (264,659 ) 188,729
Amounts owed by group undertakings (285,653 ) (41,774 )
Finance costs 9,392 8,813
Finance income (8,363 ) (183 )
(250,654 ) 570,276
Decrease/(increase) in stocks 218,343 (584,203 )
Decrease in trade and other debtors 85,468 236,265
(Decrease)/increase in trade and other creditors (220,991 ) 176,173
Cash generated from operations (167,834 ) 398,511

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31/12/23 1/1/23
£    £   
Cash and cash equivalents 402,941 772,013
Year ended 31 December 2022
31/12/22 1/1/22
£    £   
Cash and cash equivalents 772,013 623,322


HOME HARDWARE (SCOTLAND) LIMITED (REGISTERED NUMBER: SC121685)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/23 Cash flow At 31/12/23
£    £    £   
Net cash
Cash at bank and in hand 772,013 (369,072 ) 402,941
772,013 (369,072 ) 402,941
Debt
Finance leases (24,751 ) 24,751 -
Debts falling due within 1 year (62,500 ) - (62,500 )
Debts falling due after 1 year (88,542 ) 62,500 (26,042 )
(175,793 ) 87,251 (88,542 )
Total 596,220 (281,821 ) 314,399

HOME HARDWARE (SCOTLAND) LIMITED (REGISTERED NUMBER: SC121685)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023


1. STATUTORY INFORMATION

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

2. ACCOUNTING POLICIES

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

CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
In the application of the company's accounting policies, which are described in this note, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

TURNOVER
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

TANGIBLE FIXED ASSETS
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Freehold property - 2% on cost and not provided
Plant and machinery - at varying rates on cost and at variable rates on reducing balance
Fixtures and fittings - at varying rates on cost and at variable rates on reducing balance
Motor vehicles - 33% on reducing balance and 25% on reducing balance
Computer equipment - 25% on cost

A review of impairment is carried out at each reporting date. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

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

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

Current or deferred taxation assets and liabilities are not discounted.

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


HOME HARDWARE (SCOTLAND) LIMITED (REGISTERED NUMBER: SC121685)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued
DEFERRED TAX
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

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

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

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

HIRE PURCHASE AND LEASING COMMITMENTS
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or lease terms, whichever is shorter.

The interest element of these obligations is charged to the profit and loss over the relevant period. The capital element of the future payments is treated as a liability.

PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

The company has purchased a trust for the benefit of employees and certain of their dependants. Monies held in this trust are held by independent trustees and managed at their discretion.

Where the company retains future economic benefit from, and has de facto control of the assets and liabilities of the trust, they are accounted for as assets and liabilities of the company until the earlier of the date that an allocation of trust funds to employees in respect of past services is declared and that date that assets of the trust vest in identified individuals.

HOME HARDWARE (SCOTLAND) LIMITED (REGISTERED NUMBER: SC121685)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued

FINANCIAL INSTRUMENTS
The company has elected to apply the provisions of Section 11 "Basic Financial Instruments" and Section 12 "Other Financial Instruments Issues" of FRS102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Basic financial assets
Basic financial assets, which include debtors 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.

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 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 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 occuring after the impairment was recognised, the impairment is reversed. The reversal is such that the 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 bin it's 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.

Basic financial liabilities
Basic financial liabilities, including creditors, 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 creditors are obligations to pay for goods or services that have been aquired 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.


HOME HARDWARE (SCOTLAND) LIMITED (REGISTERED NUMBER: SC121685)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued
Derecognition of financial liabilities
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.

EQUITY INSTRUMENTS
Equity instruments issued by the company 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 company.

3. EMPLOYEES AND DIRECTORS
31/12/23 31/12/22
£    £   
Wages and salaries 1,055,695 953,391
Social security costs 96,082 87,550
Other pension costs 17,420 14,240
1,169,197 1,055,181

The average number of employees during the year was as follows:
31/12/23 31/12/22

Administration 18 16
Distribution 25 26
43 42

31/12/23 31/12/22
£    £   
Directors' remuneration 150,763 138,512

4. OPERATING PROFIT

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

31/12/23 31/12/22
£    £   
Depreciation - owned assets 94,293 92,110
Depreciation - assets on hire purchase contracts 8,411 28,707
Loss on disposal of fixed assets - 803
Auditors' remuneration 8,625 7,587
Foreign exchange differences 4,739 (16,022 )

5. INTEREST PAYABLE AND SIMILAR EXPENSES
31/12/23 31/12/22
£    £   
Bank interest 7,637 5,587
Bank loan interest - 15
Hire purchase 1,755 3,211
9,392 8,813

HOME HARDWARE (SCOTLAND) LIMITED (REGISTERED NUMBER: SC121685)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31/12/23 31/12/22
£    £   
Current tax:
UK corporation tax 58,014 66,820

Deferred tax (9,172 ) (27,682 )
Tax on profit 48,842 39,138

RECONCILIATION OF TOTAL TAX CHARGE INCLUDED IN PROFIT AND LOSS
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31/12/23 31/12/22
£    £   
Profit before tax 195,925 293,070
Profit multiplied by the standard rate of corporation tax in the UK of
23.520% (2022 - 19%)

46,082

55,683

Effects of:
Expenses not deductible for tax purposes 283 325
Depreciation in excess of capital allowances 11,678 13,237
Adjustments to tax charge in respect of previous periods - (3,575 )
Marginal relief (29 ) -
Deferred tax (9,172 ) (26,532 )
Total tax charge 48,842 39,138

HOME HARDWARE (SCOTLAND) LIMITED (REGISTERED NUMBER: SC121685)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


7. TANGIBLE FIXED ASSETS
Fixtures
Freehold Plant and and
property machinery fittings
£    £    £   
COST OR VALUATION
At 1 January 2023 750,000 375,419 376,197
Additions - - -
At 31 December 2023 750,000 375,419 376,197
DEPRECIATION
At 1 January 2023 59,126 314,597 340,839
Charge for year 15,000 19,459 9,727
At 31 December 2023 74,126 334,056 350,566
NET BOOK VALUE
At 31 December 2023 675,874 41,363 25,631
At 31 December 2022 690,874 60,822 35,358

Motor Computer
vehicles equipment Totals
£    £    £   
COST OR VALUATION
At 1 January 2023 377,698 173,497 2,052,811
Additions - 41,713 41,713
At 31 December 2023 377,698 215,210 2,094,524
DEPRECIATION
At 1 January 2023 277,919 115,563 1,108,044
Charge for year 30,751 27,767 102,704
At 31 December 2023 308,670 143,330 1,210,748
NET BOOK VALUE
At 31 December 2023 69,028 71,880 883,776
At 31 December 2022 99,779 57,934 944,767

HOME HARDWARE (SCOTLAND) LIMITED (REGISTERED NUMBER: SC121685)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


7. TANGIBLE FIXED ASSETS - continued

Cost or valuation at 31 December 2023 is represented by:

Fixtures
Freehold Plant and and
property machinery fittings
£    £    £   
Valuation in 2004 137,623 - -
Valuation in 2007 50,000 - -
Valuation in 2012 (75,000 ) - -
Valuation in 2018 50,000 - -
Cost 587,377 375,419 376,197
750,000 375,419 376,197

Motor Computer
vehicles equipment Totals
£    £    £   
Valuation in 2004 - - 137,623
Valuation in 2007 - - 50,000
Valuation in 2012 - - (75,000 )
Valuation in 2018 - - 50,000
Cost 377,698 215,210 1,931,901
377,698 215,210 2,094,524

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

31/12/23 31/12/22
£    £   
Cost 587,377 587,377
Aggregate depreciation (257,882 ) (246,134 )

Value of land in freehold land and buildings 329,495 341,243

Freehold property was valued on an open market basis basis on 19 July 2018 by Messrs J&E Shepherd Chartered Surveyors .

Further revaluations are carried out by the directors annually.

HOME HARDWARE (SCOTLAND) LIMITED (REGISTERED NUMBER: SC121685)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


7. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST OR VALUATION
At 1 January 2023 147,656
Transfer to ownership (147,656 )
At 31 December 2023 -
DEPRECIATION
At 1 January 2023 114,662
Charge for year 8,411
Transfer to ownership (123,073 )
At 31 December 2023 -
NET BOOK VALUE
At 31 December 2023 -
At 31 December 2022 32,994

8. FIXED ASSET INVESTMENTS
Unlisted
investments
£   
COST
At 1 January 2023 15,100
Additions 2,000
At 31 December 2023 17,100
NET BOOK VALUE
At 31 December 2023 17,100
At 31 December 2022 15,100

9. STOCKS
31/12/23 31/12/22
£    £   
Stocks 4,001,876 4,220,219

HOME HARDWARE (SCOTLAND) LIMITED (REGISTERED NUMBER: SC121685)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31/12/23 31/12/22
£    £   
Trade debtors 525,389 699,615
Amounts owed by group undertakings 819,017 533,364
Other debtors 152,482 70,203
Prepayments 63,380 56,901
1,560,268 1,360,083

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31/12/23 31/12/22
£    £   
Bank loans and overdrafts (see note 13) 62,500 62,500
Hire purchase contracts (see note 14) - 24,751
Trade creditors 1,015,896 1,203,061
Amounts owed to group undertakings 14,712 36,984
Tax 58,014 69,245
Social security and other taxes 24,194 19,498
VAT 42,933 104,365
Other creditors 11,780 53,730
Accruals and deferred income 53,569 44,027
1,283,598 1,618,161

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31/12/23 31/12/22
£    £   
Bank loans (see note 13) 26,042 88,542
Amounts owed to group undertakings 1,119,580 1,361,967
Other creditors 2,441,170 2,385,852
3,586,792 3,836,361

13. LOANS

An analysis of the maturity of loans is given below:

31/12/23 31/12/22
£    £   
Amounts falling due within one year or on demand:
Bank loans 62,500 62,500

Amounts falling due between one and two years:
Bank loans - 1-2 years 26,042 88,542

HOME HARDWARE (SCOTLAND) LIMITED (REGISTERED NUMBER: SC121685)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


14. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

31/12/23 31/12/22
£    £   
Net obligations repayable:
Within one year - 24,751

15. SECURED DEBTS

Included within the bank loans is a £88,542 (2022 £151,042) Coronavirus Business Interruption Loan which is repayable within 2 years of the year end.

Standard security is held by the bank over 26A Dalry Road and a floating charge over the whole assets of the company.

A cross guarantee is also in place between Wright Hardware Limited and Home Hardware (Scotland) Limited.

Net obligations under finance lease and hire purchase contracts of £nil (2022 £24,751) are secured by fixed charges on the assets concerned.

16. PROVISIONS FOR LIABILITIES
31/12/23 31/12/22
£    £   
Deferred tax 41,381 50,553

Deferred
tax
£   
Balance at 1 January 2023 50,553
Provided during year (9,172 )
Balance at 31 December 2023 41,381

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31/12/23 31/12/22
value: £    £   
50,000 Ordinary £1 50,000 50,000

HOME HARDWARE (SCOTLAND) LIMITED (REGISTERED NUMBER: SC121685)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


18. RESERVES
Retained Other
earnings reserves Totals
£    £    £   

At 1 January 2023 1,535,310 221,797 1,757,107
Profit for the year 147,083 147,083
Revaluation reserve release 73,321 (73,321 ) -
At 31 December 2023 1,755,714 148,476 1,904,190

19. ULTIMATE PARENT COMPANY

Wright Hardware Ltd is regarded by the directors as being the company's ultimate parent company.

Group accounts are prepared and can be obtained from Wright Hardware Ltd, 95 Main Street, Prestwick KA9
1JS.

20. RELATED PARTY DISCLOSURES

Entities with control, joint control or significant influence over the entity
31/12/23 31/12/22
£    £   
Sales & other income 4,438,910 4,662,692
Purchases & expenses 9,253 52,564
Amount due from related party 769,203 533,364
Amount due to related party 1,125,580 1,398,951

Key management personnel of the entity or its parent (in the aggregate)
31/12/23 31/12/22
£    £   
Sales & other income 215,044 -
Purchases & expenses 19,780 -
Amount due from related party 65,314 -
Amount due to related party 8,712 -

21. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is C Ferguson.