Company registration number 00355060 (England and Wales)
HI-SPAN LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
HI-SPAN LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 9
HI-SPAN LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
5
2,262,853
1,858,159
Current assets
Inventories
544,749
911,884
Trade and other receivables
6
2,123,425
2,801,854
Cash and cash equivalents
1,332,487
1,023,639
4,000,661
4,737,377
Current liabilities
7
(1,234,890)
(1,738,288)
Net current assets
2,765,771
2,999,089
Total assets less current liabilities
5,028,624
4,857,248
Provisions for liabilities
(176,853)
(87,590)
Net assets
4,851,771
4,769,658
Equity
Called up share capital
200,000
200,000
Revaluation reserve
8
986,438
986,438
Retained earnings
9
3,665,333
3,583,220
Total equity
4,851,771
4,769,658
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 3 September 2024 and are signed on its behalf by:
Mr B A Beaugeard
Director
Company registration number 00355060 (England and Wales)
HI-SPAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
Hi-Span Limited is a private company limited by shares incorporated in England and Wales. The registered office is Ayton Road, Wymondham, Norfolk, NR18 0RD.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: The disclosure requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b), 11.48(c), 12.26, 12.27, 12.29(a), 12.29(b), and 12.29A;
Section 26 ‘Share based Payment’: Share based payment arrangements required under FRS 102 paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of H. Young Group Limited. These consolidated financial statements are available from its registered office, Ayton Road, Wymondham, Norfolk, NR18 0RD.
1.2
Revenue
Revenue represents amounts invoiced to customers during the year excluding value added tax and trade discounts adjusted for the movement in work in progress.
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.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.3
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.
HI-SPAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
Tangible fixed assets are stated at cost or valuation less depreciation. Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected useful lifes although no provision is made in the year of outlay except in relation to Computer Equipment and Motor Vehicles.
Freehold land and buildings
not depreciated
Leasehold land and buildings
over term of lease
Plant and machinery
5% - 20% straight line
Fixtures, fittings & equipment
10% - 33% straight line
Motor vehicles
20% - 25% straight line
No depreciation has been provided on the freehold buildings which is not in accordance with FRS 102 nor with the requirements of the Companies Act 2006 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 credited or charged to profit or loss.
1.4
Impairment of non-current assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
1.5
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.
1.6
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.
1.7
Financial instruments
The company 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 company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with 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.
HI-SPAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
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.
Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.
Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.
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 company after deducting all of its liabilities.
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
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 though 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.
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 company after deducting all of its liabilities.
HI-SPAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
1.8
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.
1.9
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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.
1.10
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
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.
2
Judgements and key sources of estimation uncertainty
In the application of the company’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.
HI-SPAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Works
12
13
Office and managerial
14
14
Total
26
27
4
Directors' remuneration
2023
2022
£
£
Remuneration paid to directors
420,350
369,744
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).
5
Property, plant and equipment
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost or valuation
At 1 January 2023
1,489,774
1,865,459
3,355,233
Additions
521,614
521,614
Disposals
(10,053)
(10,053)
At 31 December 2023
1,489,774
2,377,020
3,866,794
Depreciation and impairment
At 1 January 2023
32,310
1,464,764
1,497,074
Depreciation charged in the year
1,080
115,840
116,920
Eliminated in respect of disposals
(10,053)
(10,053)
At 31 December 2023
33,390
1,570,551
1,603,941
Carrying amount
At 31 December 2023
1,456,384
806,469
2,262,853
At 31 December 2022
1,457,464
400,695
1,858,159
HI-SPAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Property, plant and equipment
(Continued)
- 7 -
Freehold Land and Buildings are included at a valuation by Brown & Co (Chartered Surveyors) who are not connected to the company 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 further 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 the revaluation.
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. If provision had been made in accordance with the requirements of 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 review annually for impairment. The directors consider this departure is not material.
The revaluation surplus is disclosed in note 8.
Freehold land and buildings
2023
2022
£
£
Cost
412,593
412,593
6
Trade and other receivables
2023
2022
Amounts falling due within one year:
£
£
Trade receivables
631,297
1,033,487
Amounts owed by group undertakings
1,436,762
1,465,598
Other receivables
55,366
302,769
2,123,425
2,801,854
7
Current liabilities
2023
2022
£
£
Trade payables
739,145
1,261,277
Amounts owed to group undertakings
70,752
144,186
Taxation and social security
47,047
91,284
Other payables
377,946
241,541
1,234,890
1,738,288
HI-SPAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
8
Revaluation reserve
2023
2022
£
£
At the beginning and end of the year
986,438
986,438
9
Retained earnings
2023
2022
£
£
At the beginning of the year
3,583,220
3,347,796
Profit for the year
332,113
485,424
Dividends declared and paid in the year
(250,000)
(250,000)
At the end of the year
3,665,333
3,583,220
10
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Brett Davis
Statutory Auditor:
Henton & Co LLP
Date of audit report:
3 September 2024
11
Financial commitments, guarantees and contingent liabilities
The Company has given an unlimited guarantee in respect of the bank borrowings of the Parent Company and its fellow subsidiaries which at 31 December 2023 amounted to £nil (2022: £nil).
12
Capital commitments
Amounts contracted for but not provided in the financial statements:
2023
2022
£
£
Acquisition of property, plant and equipment
-
158,454
13
Related party transactions
Transactions between group companies are not disclosed by exemption available from FRS 102 s33.1A.
HI-SPAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
14
Parent company
The parent of this company is H. Young Co. Limited (Registered office: Ayton Road, Wymondham, Norfolk) which is incorporated in England and Wales.
The ultimate controlling party of this company is H Young Group Limited (Registered office: Ayton Road, Wymondham, Norfolk) which is incorporated in England and Wales. The ultimate controlling party is the only company to produce financial statements that consolidate the results of the company.
The following are the parents of the largest and smallest groups in which this company's results are consolidated:
Largest group
H Young Group Ltd
Smallest group
H Young Group Ltd