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REGISTERED NUMBER: 00926615 (England and Wales)















Hughes Forrest Limited

Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 31 December 2023






Hughes Forrest Limited (Registered number: 00926615)






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 5

Statement of 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 13


Hughes Forrest Limited

Company Information
for the Year Ended 31 December 2023







Directors: Mr R Brian
Mr N Bulpin
Mr D Edwards



Registered office: Bolt Street
Newport
South Wales
NP20 2UP



Registered number: 00926615 (England and Wales)



Auditors: Haines Watts Wales LLP, Statutory Auditors
7 Neptune Court
Vanguard Way
Cardiff
CF24 5PJ



Bankers: Barclays Bank Plc
Soth East Wales Group
Cwmbran
Torfaen



Solicitors: Harding Evans
Queens Chambers
2 North Street
Newport
NP20 1TE

Hughes Forrest Limited (Registered number: 00926615)

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 is a family owned business operating a number of branches of Builders Merchants in South East Wales.

The company offers a range of products from building materials, timber and joinery, flooring, roofing, decorating, paving, decking and fencing products to kitchens and bathrooms.


The company achieved a profit before tax of £711,222 (2022: £1,663,663)

At the year end the balance sheet remains in a strong position with adequate liquid deposits and shareholders' funds standing at £8.63 million.

The company uses other key performance indicators on a branch by branch basis; the directors do not consider it appropriate to disclose these in the public environment.

The company continues to explore opportunities to add branches to its network.

Principal risks and uncertainties
The company's activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The company's principal financial instruments comprise bank balances, bank loans, trade debtors and director's loans to the company. The use of these are monitored by the board of directors.

The company's credit risk rests primarily with its trade receivables. This risk is managed by regular monitoring of credit limits and balances outstanding. There is no significant concentration of risk with exposure spread over a large number of customers. Liquid funds are held with banks with high credit ratings assigned by international credit rating agencies.

Liquidity risk is managed by maintaining sufficient working capital funding arrangements. These are monitored to ensure that they are sufficient for operations and planned expansions.

On behalf of the board:





Mr R Brian - Director


17 September 2024

Hughes Forrest Limited (Registered number: 00926615)

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
An interim dividend of £12.00 per share on the Ordinary A £1 shares was voted on 25 October 2023. The directors recommend that no final dividend be paid on this class of shares.

An interim dividend of £2.00 per share on the Ordinary B £1 shares was voted on 25 October 2023. The directors recommend that no final dividend be paid on this class of shares.

The total distribution of dividends for the year ended 31 December 2023 was £183,000.

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

Mr R Brian
Mr N Bulpin
Mr D Edwards

Other changes in directors holding office are as follows:

Mr P Scarborough ceased to be a director after 31 December 2023 but prior to the date of this report.

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

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

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

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

Hughes Forrest Limited (Registered number: 00926615)

Report of the Directors
for the Year Ended 31 December 2023


Auditors
The auditors, Haines Watts Wales LLP, Statutory Auditors, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board:





Mr R Brian - Director


17 September 2024

Report of the Independent Auditors to the Members of
Hughes Forrest Limited

Opinion
We have audited the financial statements of Hughes Forrest Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of 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
Hughes Forrest 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:

Our planning procedures identify the legal and regulatory frameworks applicable to the operations and financial statements of the company. These are reviewed internally with the audit team including relevant industry experience and expectations as well as externally with the client management. The key laws and regulations we considered in this context were the UK Companies Act 2006, UK GAAP (FRS 102) and relevant tax legislation.

Once identified, we assess the risks of material misstatements in relation to the laws and regulations, irregularities, including fraud and adjust our testing accordingly. Our audit procedures include:

- Discussing with Directors and management which areas of the business they believe to be more susceptible to
fraud, and whether they have any knowledge or suspicion of fraudulent activities;
- Obtaining an understanding of the key controls put in place by the company to address risks identified, assessing
the effectiveness of those and discussing how these are maintained and monitored internally;
- Assessing the risk of management override and review and testing of journal entries made into the accounting
system;
- Challenging assumptions and judgements made by the company in relation to the significant accounting estimates
employed in the preparation of the financial statements;
- Discussing with Directors and management the legal and regulatory obligations of the business and whether they
have any knowledge or suspicion of non compliance.

Despite the audit being planned and conducted in accordance with ISAs (UK) there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularities likely involve collusion, forgery, intentional misrepresentation, or the override of internal controls.

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
Hughes Forrest 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.




Clive Edwards (Senior Statutory Auditor)
for and on behalf of Haines Watts Wales LLP, Statutory Auditors
7 Neptune Court
Vanguard Way
Cardiff
CF24 5PJ

20 September 2024

Hughes Forrest Limited (Registered number: 00926615)

Statement of Comprehensive
Income
for the Year Ended 31 December 2023

2023 2022
Notes £    £   

Turnover 18,884,683 19,473,291

Cost of sales (12,535,281 ) (12,822,155 )
Gross profit 6,349,402 6,651,136

Administrative expenses (5,224,716 ) (4,969,263 )
Operating profit 1,124,686 1,681,873

Exceptional items 4 (503,453 ) -
621,233 1,681,873

Interest receivable and similar income 107,291 -
728,524 1,681,873

Interest payable and similar expenses 5 (17,302 ) (18,210 )
Profit before taxation 6 711,222 1,663,663

Tax on profit 8 (214,633 ) (325,835 )
Profit for the financial year 496,589 1,337,828

Other comprehensive income - -
Total comprehensive income for the year 496,589 1,337,828

Hughes Forrest Limited (Registered number: 00926615)

Balance Sheet
31 December 2023

2023 2022
Notes £    £   
Fixed assets
Intangible assets 10 55,040 68,804
Tangible assets 11 1,743,088 1,715,738
Investments 12 1,629 1,629
1,799,757 1,786,171

Current assets
Stocks 13 2,095,342 2,497,347
Debtors 14 1,810,703 2,142,861
Cash at bank 5,516,446 4,570,972
9,422,491 9,211,180
Creditors
Amounts falling due within one year 15 (2,100,298 ) (2,193,237 )
Net current assets 7,322,193 7,017,943
Total assets less current liabilities 9,121,950 8,804,114

Creditors
Amounts falling due after more than one year 16 (349,137 ) (386,891 )

Provisions for liabilities 20 (142,483 ) (100,482 )
Net assets 8,630,330 8,316,741

Capital and reserves
Called up share capital 21 58,500 58,500
Capital redemption reserve 22 116,500 116,500
Retained earnings 22 8,455,330 8,141,741
Shareholders' funds 8,630,330 8,316,741

The financial statements were approved by the Board of Directors and authorised for issue on 17 September 2024 and were signed on its behalf by:





Mr R Brian - Director


Hughes Forrest Limited (Registered number: 00926615)

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

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 January 2022 58,500 7,065,663 116,500 7,240,663

Changes in equity
Dividends - (261,750 ) - (261,750 )
Total comprehensive income - 1,337,828 - 1,337,828
Balance at 31 December 2022 58,500 8,141,741 116,500 8,316,741

Changes in equity
Dividends - (183,000 ) - (183,000 )
Total comprehensive income - 496,589 - 496,589
Balance at 31 December 2023 58,500 8,455,330 116,500 8,630,330

Hughes Forrest Limited (Registered number: 00926615)

Cash Flow Statement
for the Year Ended 31 December 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,556,524 1,775,309
Interest paid (17,302 ) (18,210 )
Tax paid (170,000 ) (449,627 )
Net cash from operating activities 1,369,222 1,307,472

Cash flows from investing activities
Purchase of tangible fixed assets (349,342 ) (112,340 )
Sale of tangible fixed assets 38,285 8,124
Interest received 107,291 -
Net cash from investing activities (203,766 ) (104,216 )

Cash flows from financing activities
Loan repayments in year (36,982 ) (35,644 )
Equity dividends paid (183,000 ) (261,750 )
Net cash from financing activities (219,982 ) (297,394 )

Increase in cash and cash equivalents 945,474 905,862
Cash and cash equivalents at beginning of
year

2

4,570,972

3,665,110

Cash and cash equivalents at end of year 2 5,516,446 4,570,972

Hughes Forrest Limited (Registered number: 00926615)

Notes to the Cash Flow Statement
for the Year Ended 31 December 2023

1. Reconciliation of profit before taxation to cash generated from operations
2023 2022
£    £   
Profit before taxation 711,222 1,663,663
Depreciation charges 316,782 279,759
Profit on disposal of fixed assets (19,311 ) (8,125 )
Finance costs 17,302 18,210
Finance income (107,291 ) -
918,704 1,953,507
Decrease/(increase) in stocks 402,005 (87,866 )
Decrease in trade and other debtors 332,158 71,232
Decrease in trade and other creditors (96,343 ) (161,564 )
Cash generated from operations 1,556,524 1,775,309

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 5,516,446 4,570,972
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 4,570,972 3,665,110


3. Analysis of changes in net funds

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank 4,570,972 945,474 5,516,446
4,570,972 945,474 5,516,446
Debt
Debts falling due within 1 year (43,799 ) (772 ) (44,571 )
Debts falling due after 1 year (386,891 ) 37,754 (349,137 )
(430,690 ) 36,982 (393,708 )
Total 4,140,282 982,456 5,122,738

Hughes Forrest Limited (Registered number: 00926615)

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

1. Statutory information

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

Along with the registered office address, the Company also trades from sites in Blackwood, Cardiff, Ebbw Vale, Merthyr Tydfil and Pontypridd.

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.

Preparation of consolidated financial statements
The financial statements contain information about Hughes Forrest Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 402 and 405 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as its inclusion is not material for the purpose of giving a true and fair view.

Turnover
Turnover represents amounts chargeable, net of value added tax, in respect of the sales of goods required by both established builders and members of the public.Turnover is recognised when the significant risks and rewards of ownership of the goods are transferred to the buyer.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2017, is being amortised evenly over its estimated useful life of ten years.

Positive goodwill is capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its useful economic life. It is reviewed for impairment at the end of the full financial year following the acquisition and in other periods if events or changes in circumstances indicate the carrying value may not be recoverable.

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

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.
Freehold property - 20 years straight line
Plant and machinery - 20% on cost
Fixtures and fittings - 10% - 20% on cost
Motor vehicles - 25% on cost

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost less any provision for impairment.

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


Hughes Forrest Limited (Registered number: 00926615)

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

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

Current or deferred taxation assets and liabilities are not discounted.

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

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

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

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

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.

Fixed asset investments
Fixed asset investments are stated at historical cost less provisions for any impairment or diminution in value.

Basic financial assets
Basic financial assets, which include debtors and bank balances, are initially measured at transaction price including transaction costs.

Classification of financial liabilities
Financial liabilities are classified according to the substance of the contractual arrangements entered into.

Basic financial liabilities
Basic financial liabilities 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 cos, using the effective interest rate method.

Trade creditors 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 Creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits and are used by the company in the management of its short term commitments. They are carried at amortised cost in the Statement of Financial Position. Bank overdrafts, when applicable, are shown within borrowings in current liabilities.

Hughes Forrest Limited (Registered number: 00926615)

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

3. Employees and directors
2023 2022
£    £   
Wages and salaries 2,983,217 2,762,987
Social security costs 274,069 258,946
Other pension costs 158,443 139,884
3,415,729 3,161,817

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

96 93

2023 2022
£    £   
Directors' remuneration 369,537 374,896

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

Money purchase schemes 2 2

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 148,949 142,850

The directors are considered to be the key management personnel.

4. Exceptional items

The exceptional item is the write off of debt in relation to a cyber attack carried out, which led to external individuals gaining unauthorised access to the company's bank account. The directors have reviewed their internal controls and are confident that this is an isolated incident.

5. Interest payable and similar expenses
2023 2022
£    £   
Bank loan & financing interest 17,302 18,210

6. Profit before taxation

The profit is stated after charging/(crediting):

2023 2022
£    £   
Depreciation - owned assets 283,018 265,991
Profit on disposal of fixed assets (19,311 ) (8,125 )
Goodwill amortisation 13,764 13,768

Hughes Forrest Limited (Registered number: 00926615)

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

7. Auditors' remuneration
2023 2022
£    £   
Fees payable to the company's auditors for the audit of the company's
financial statements

6,520

6,400

8. Taxation

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 172,632 344,999

Deferred tax 42,001 (19,164 )
Tax on profit 214,633 325,835

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:

2023 2022
£    £   
Profit before tax 711,222 1,663,663
Profit multiplied by the standard rate of corporation tax in the UK of 23.500%
(2022 - 19%)

167,137

316,096

Effects of:
Expenses not deductible for tax purposes 7,391 4,235
Capital allowances in excess of depreciation (1,896 ) -
Depreciation in excess of capital allowances - 24,668
Deferred tax 42,001 (19,164 )
Total tax charge 214,633 325,835

9. Dividends
2023 2022
£    £   
Ordinary A shares of £1 each
Interim 120,000 120,000
Ordinary B shares of £1 each
Interim 63,000 141,750
183,000 261,750

Hughes Forrest Limited (Registered number: 00926615)

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

10. Intangible fixed assets
Goodwill
£   
Cost
At 1 January 2023
and 31 December 2023 137,622
Amortisation
At 1 January 2023 68,818
Amortisation for year 13,764
At 31 December 2023 82,582
Net book value
At 31 December 2023 55,040
At 31 December 2022 68,804

11. Tangible fixed assets
Fixtures
Freehold Plant and and Motor
property machinery fittings vehicles Totals
£    £    £    £    £   
Cost
At 1 January 2023 1,896,982 433,174 63,693 1,468,360 3,862,209
Additions - - - 329,342 329,342
Disposals - - - (138,630 ) (138,630 )
At 31 December 2023 1,896,982 433,174 63,693 1,659,072 4,052,921
Depreciation
At 1 January 2023 698,093 347,326 60,659 1,040,393 2,146,471
Charge for year 56,040 34,103 1,277 191,598 283,018
Eliminated on disposal - - - (119,656 ) (119,656 )
At 31 December 2023 754,133 381,429 61,936 1,112,335 2,309,833
Net book value
At 31 December 2023 1,142,849 51,745 1,757 546,737 1,743,088
At 31 December 2022 1,198,889 85,848 3,034 427,967 1,715,738

Included in cost of land and buildings is freehold land of £ 774,287 (2022 - £ 774,287 ) which is not depreciated.

12. Fixed asset investments

2023 2022
£    £   
Shares in group undertakings 1 1
Other investments not loans 1,628 1,628
1,629 1,629

Hughes Forrest Limited (Registered number: 00926615)

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

12. Fixed asset investments - continued

Additional information is as follows:
Shares in
group
undertakings
£   
Cost
At 1 January 2023
and 31 December 2023 170,000
Provisions
At 1 January 2023
and 31 December 2023 169,999
Net book value
At 31 December 2023 1
At 31 December 2022 1

Investments (neither listed nor unlisted) were as follows:
2023 2022
£    £   
Fixed Asset Investments 1,628 1,628

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

Huw Bolderson Roofing Merchants Limited
Registered office: United Kingdom
Nature of business: Roofing
%
Class of shares: holding
Ordinary 100.00
2023 2022
£    £   
Aggregate capital and reserves 1 1

13. Stocks
2023 2022
£    £   
Stocks 2,095,342 2,497,347

14. Debtors: amounts falling due within one year
2023 2022
£    £   
Trade debtors 1,705,100 1,962,675
Other debtors 62,799 143,960
Prepayments 42,804 36,226
1,810,703 2,142,861

Hughes Forrest Limited (Registered number: 00926615)

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

15. Creditors: amounts falling due within one year
2023 2022
£    £   
Bank loans and overdrafts (see note 17) 44,571 43,799
Trade creditors 1,177,733 1,292,367
Amounts owed to group undertakings 1 1
Tax 172,631 169,999
Social security and other taxes 81,432 74,642
VAT 226,746 207,802
Other creditors 34,135 40,135
Accrued expenses 363,049 364,492
2,100,298 2,193,237

16. Creditors: amounts falling due after more than one year
2023 2022
£    £   
Bank loans (see note 17) 349,137 386,891

17. Loans

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 44,571 43,799

Amounts falling due between one and two years:
Bank loans - 1-2 years 44,571 43,799

Amounts falling due between two and five years:
Bank loans - 2-5 years 133,712 131,397

Amounts falling due in more than five years:

Repayable by instalments
Bank loans more 5 yr by instal 170,854 211,695

18. Leasing agreements

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 122,017 136,600
Between one and five years 367,200 417,217
In more than five years 226,459 298,459
715,676 852,276

During the year £136,600 (2022: £136,600) was recognised as an expense in the profit and loss account in respect of operating leases.

Hughes Forrest Limited (Registered number: 00926615)

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

19. Secured debts

The following secured debts are included within creditors:

2023 2022
£    £   
Bank loans 393,708 430,690

The bank loans are secured against the properties to which they relate.

The loan secured on Former Builders Merchants & Premises, Pantglas, Aberfan and Manor House, Ipswich Road, Cardiff is repayable by August 2032. Interest is being charged at a fixed rate of 4.2% per annum for 10 years.

20. Provisions for liabilities
2023 2022
£    £   
Deferred tax 142,483 100,482

Deferred
tax
£   
Balance at 1 January 2023 100,482
Charge to Statement of Comprehensive Income during year 42,001
Balance at 31 December 2023 142,483

21. Called up share capital

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
10,000 Ordinary A £1 10,000 10,000
31,500 Ordinary B £1 31,500 31,500
17,000 Ordinary C £1 17,000 17,000
58,500 58,500

The holders of all share types are entitled to receive dividends as declared from time to time. Ordinary A shares are entitled to one vote per share at meetings of the company. Ordinary B and Ordinary C shares are non voting shares.

22. Reserves
Capital
Retained redemption
earnings reserve Totals
£    £    £   

At 1 January 2023 8,141,741 116,500 8,258,241
Profit for the year 496,589 496,589
Dividends (183,000 ) (183,000 )
At 31 December 2023 8,455,330 116,500 8,571,830

Hughes Forrest Limited (Registered number: 00926615)

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

23. Pension commitments

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £158,443 (2022: £139,884)

Within Creditors as at 31 December 2023, included an amount totalling £nil (2022: £3,000) which relates to accrued pension contributions.

24. Related party disclosures

Entities with control, joint control or significant influence over the entity

During the year Directors made purchases of £9,072 (2022: £7,379) on a trade account.
At the balance sheet date the trade balances due from the directors was £28 (2022: £1).
Hughes Forrest Ltd paid the Hughes Forrest Executive Pension scheme, of which one director is a member, rent for the company's premises at Ebbw Vale of £25,000 (2022: £25,000).

One director charged Hughes Forrest Limited £21,760 (2022: £19,700) for accountancy services provided. The balance owed at the balance sheet date was £5,760 (2022: £6,600).
Dividends were paid of £183,000 (2022: £261,750).

Entities over which the entity has control, joint control or significant influence
2023 2022
£    £   
Amount due (to)/from related party (1 ) (1 )

Other related parties

The amount owed to shareholders at the balance sheet date was £34,135 (2022: £40,135) held within other creditors.

25. Ultimate controlling party

The controlling party is Mr R Brian.