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Registered number: 02844285










HAMPSHIRE COMMODITIES LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
HAMPSHIRE COMMODITIES LIMITED
 
 
COMPANY INFORMATION


Directors
C J Newman 
J Hardcastle 




Company secretary
Jupp Castle Limited



Registered number
02844285



Registered office
Wey Court West

Farnham

Surrey

GU9 7PT




Independent auditors
Shaw Gibbs (Audit) Limited
Statutory Auditor

Wey Court West

Union Road

Farnham

Surrey

GU9 7PT





 
HAMPSHIRE COMMODITIES LIMITED
 

CONTENTS



Page
Strategic Report
 
1
Directors' Report
 
2 - 3
Independent Auditors' Report
 
4 - 7
Statement of Income and Retained Earnings
 
8
Statement of Financial Position
 
9
Statement of Cash Flows
 
10
Analysis of Net Debt
 
11
Notes to the Financial Statements
 
12 - 21

 
HAMPSHIRE COMMODITIES LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
Hampshire Commodities Limited has numerous sections i.e. Distributor, Stockist, Broker and trader of commodity vegetable oils and their derivatives covering products such as Castor, Coconut, Linseed, Sunflower, Safflower, Palm, Rapeseed, Soy and Tung oils amongst others. Some notable inclusions for the future with projects being considered are Hydrogenated Coconut Oil and Palm Oil fractions.
All oil prices fluctuate daily mostly governed by exchange rate movements along with fluctuations, demand, monsoon, seasonal planting, and other weather systems. 
Associated risks are minimised through our understanding of and experience in these markets that help us to provide the best possible service and advice to our customers allowing them and us to remain competitive in our respective fields.
2023 turnover was disappointing with 17% drop in revenue in 2022. While 2023 gross profit percentage is 6.7%. This can be attributed to several factors; tonnages took a downturn across all business sectors in UK & Europe in many industries. Stock levels increased as a result, however, where possible adding storage costs to customers that could not take product to agreed contract times etc.
To lessen risks, we cover the currencies back-to-back with contracts. This has proven to be the way forward; however, the price movements have been so volatile at times it has been a challenge to cover as much or as quickly as one would hope. This remains an area in which to be vigilant.
Sea freight prices remained stable until December when numbers started to increase. Careful negotiation with our tank operators proved worthwhile. Land freight charges stabilised, and fuel surcharges started to drop back from the previous highs as did extra charges such as driver retention programs. 
Ahead of ‘Nett Zero’ we have seen increasing interest in GHG and carbon footprint questions from some of the larger key customers However, smaller customer are now getting in step with government mandates. The business has taken a large step in the right direction back in 2016 when we saw what was happening in this regard and can report very favourable results. This continues today and will form a larger part of our sales going forward. 
As a result, we have tended to cover longer term to lessen the risk of increasing prices wherever possible. We closed out 2023 with both good cash reserves and stock balance of £2.9 million a large percentage of which was due to aforementioned slowing of contracted volumes off take and a cash balance value which is included in the balance sheet of £2.8 million.


This report was approved by the board and signed on its behalf.







C J Newman
Director
Date: 19 September 2024
Page 1

 
HAMPSHIRE COMMODITIES LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 for the Company's financial statements and then apply them consistently;

make judgments 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £338,211 (2022 - £768,561).

During the year £500,000 (2022: £500,000) of dividends were declared and paid.  

Directors

The directors who served during the year were:

C J Newman 
J Hardcastle 

Matters covered in the Strategic Report

The company has chosen in accordance with s414C(11) Companies Act 2006 to set out in the company's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report.  It has done so in respect of future developments.

Page 2

 
HAMPSHIRE COMMODITIES LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

This report was approved by the board and signed on its behalf.
 







C J Newman
Director
Date: 19 September 2024
Page 3

 
HAMPSHIRE COMMODITIES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HAMPSHIRE COMMODITIES LIMITED
 

Opinion


We have audited the financial statements of Hampshire Commodities Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position, the Statement of Cash Flows and the related notes, including a summary of significant accounting policiesThe 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 United Kingdom, including the Financial Reporting Council'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.


Page 4

 
HAMPSHIRE COMMODITIES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HAMPSHIRE COMMODITIES LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of 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 Directors' Report.


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


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 Directors' Responsibilities Statement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


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


Page 5

 
HAMPSHIRE COMMODITIES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HAMPSHIRE COMMODITIES LIMITED (CONTINUED)


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


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. 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. 
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.
We did not identify any key audit matters relating to irregularities, including 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 Auditors' Report.
Page 6

 
HAMPSHIRE COMMODITIES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HAMPSHIRE COMMODITIES LIMITED (CONTINUED)


Use of our report
 

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







Keely Harvey FCA (Senior Statutory Auditor)
for and on behalf of
Shaw Gibbs (Audit) Limited
Statutory Auditor
Wey Court West
Union Road
Farnham
Surrey
GU9 7PT

20 September 2024
Page 7

 
HAMPSHIRE COMMODITIES LIMITED
 
 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
13,875,637
16,681,753

Cost of sales
  
(12,911,720)
(15,164,491)

Gross profit
  
963,917
1,517,262

Administrative expenses
  
(552,475)
(581,639)

Other operating income
  
19,540
18,681

Operating profit
 5 
430,982
954,304

Interest Receivable
  
16,595
-

Profit before tax
  
447,577
954,304

Tax on profit
 10 
(109,366)
(185,743)

Profit after tax
  
338,211
768,561

  

  

Retained earnings at the beginning of the year
  
6,377,534
6,108,973

  
6,377,534
6,108,973

Profit for the year
  
338,211
768,561

Dividends declared and paid
  
(500,000)
(500,000)

Retained earnings at the end of the year
  
6,215,745
6,377,534

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of income and retained earnings.

The notes on pages 12 to 21 form part of these financial statements.

Page 8

 
HAMPSHIRE COMMODITIES LIMITED
REGISTERED NUMBER: 02844285

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 12 
425,189
443,268

Current assets
  

Stocks
 13 
2,901,785
5,378,657

Debtors: amounts falling due within one year
 14 
1,940,243
2,091,530

Cash at bank and in hand
  
2,837,212
773,419

  
7,679,240
8,243,606

Creditors: amounts falling due within one year
 15 
(1,878,684)
(2,299,340)

Net current assets
  
 
 
5,800,556
 
 
5,944,266

Total assets less current liabilities
  
6,225,745
6,387,534

  

Net assets
  
6,225,745
6,387,534


Capital and reserves
  

Called up share capital 
 16 
10,000
10,000

Profit and loss account
  
6,215,745
6,377,534

  
6,225,745
6,387,534


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 






C J Newman
Director

Date: 19 September 2024

The notes on pages 12 to 21 form part of these financial statements.
Page 9

 
HAMPSHIRE COMMODITIES LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
338,211
768,561

Adjustments for:

Depreciation of tangible assets
20,990
27,934

Interest received
(16,595)
-

Taxation charge
109,366
185,743

Decrease/(increase) in stocks
2,476,872
(1,700,934)

Decrease in debtors
151,287
967,784

(Decrease)/increase in creditors
(344,409)
144,462

Corporation tax (paid)
(185,612)
(274,521)

Net cash generated from operating activities

2,550,110
119,029


Cash flows from investing activities

Purchase of tangible fixed assets
(2,912)
(2,787)

Interest received
16,595
-

Net cash from investing activities

13,683
(2,787)

Cash flows from financing activities

Dividends paid
(500,000)
(500,000)

Net cash used in financing activities
(500,000)
(500,000)

Net increase/(decrease) in cash and cash equivalents
2,063,793
(383,758)

Cash and cash equivalents at beginning of year
773,419
1,157,177

Cash and cash equivalents at the end of year
2,837,212
773,419


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
2,837,212
773,419


The notes on pages 12 to 21 form part of these financial statements.

Page 10

 
HAMPSHIRE COMMODITIES LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

773,419

2,063,793

2,837,212

Debt due within 1 year

(1,207,212)

(141,671)

(1,348,883)


(433,793)
1,922,122
1,488,329

The notes on pages 12 to 21 form part of these financial statements.

Page 11

 
HAMPSHIRE COMMODITIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Hampshire Commodities Limited (2844285) is a private company limited by shares. It is incorporated in England and Wales. The registered office is Wey Court West, Union Road, Farnham, Surrey, GU9 7PT. Registered business address is 121 Albert Street, Fleet, Hampshire, GU51 3SR.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Income and Retained Earnings.

Page 12

 
HAMPSHIRE COMMODITIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.4

Operating leases: the Company as lessor

Rental income from operating leases is credited to profit or loss on a straight-line basis over the lease term.

Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight-line basis, unless another systematic basis is representative of the time pattern over which the lessor's benefit from the leased asset is diminished.

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.6

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

Page 13

 
HAMPSHIRE COMMODITIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.7

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

 
2.8

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line and reducing balance methods.

Depreciation is provided on the following basis:

Freehold property
-
2%
straight line
Motor vehicles
-
25%
straight line
Fixtures and fittings
-
25%
reducing balance
Office equipment
-
25%
straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.9

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.10

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 14

 
HAMPSHIRE COMMODITIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.11

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.12

Creditors

Short-term creditors are measured at the transaction price.

 
2.13

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.14

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts
Page 15

 
HAMPSHIRE COMMODITIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.14
Financial instruments (continued)

discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

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

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.



 
2.15

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Company's accounting policies, which are described in note 2, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based upon 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. 
There are no sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements.

Page 16

 
HAMPSHIRE COMMODITIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


Turnover

Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
12,961,365
15,643,439

Rest of Europe
133,671
242,727

Rest of the world
780,601
795,587

13,875,637
16,681,753



5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation
20,990
27,934

Exchange differences
48,967
27,701

Other operating lease rentals
-
685


6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
12,795
11,675
Page 17

 
HAMPSHIRE COMMODITIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
318,550
383,341

Social security costs
28,912
38,340

Cost of defined contribution scheme
5,850
5,560

353,312
427,241


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Administrative staff
7
7


8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
129,083
273,292

Company contributions to defined contribution pension schemes
1,321
1,321

130,404
274,613


During the year retirement benefits were accruing to 1 director (2022 - 1) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £119,384 (2022 - £263,761).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £1,320 (2022 - £1,320).

The total accrued pension provision of the highest paid director at 31 December 2023 amounted to £NIL (2022 - £NIL).


9.


Interest receivable

2023
2022
£
£


Other interest receivable
16,595
-

Page 18

 
HAMPSHIRE COMMODITIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Taxation


2023
2022
£
£

Corporation tax


Corporation tax on profits for the year
109,366
185,743


Total current tax
109,366
185,743

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - higher than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
447,577
954,304


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
111,894
181,318

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
300
316

Capital allowances for year in excess of depreciation
4,051
4,109

Change in corporation tax rate during the year
(6,879)
-

Total tax charge for the year
109,366
185,743


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


11.


Dividends

2023
2022
£
£


Dividends
500,000
500,000

Page 19

 
HAMPSHIRE COMMODITIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Tangible fixed assets





Freehold property
Motor vehicles
Fixtures and fittings
Office equipment
Total

£
£
£
£
£



Cost or valuation


At 1 January 2023
425,250
68,923
14,341
11,354
519,868


Additions
-
-
-
2,912
2,912



At 31 December 2023

425,250
68,923
14,341
14,266
522,780



Depreciation


At 1 January 2023
8,505
46,851
11,981
9,264
76,601


Charge for the year on owned assets
8,500
8,890
-
3,600
20,990



At 31 December 2023

17,005
55,741
11,981
12,864
97,591



Net book value



At 31 December 2023
408,245
13,182
2,360
1,402
425,189



At 31 December 2022
416,745
22,072
2,361
2,090
443,268


13.


Stocks

2023
2022
£
£

Finished goods and goods for resale
2,901,785
5,378,657



14.


Debtors

2023
2022
£
£


Trade debtors
1,923,137
2,075,352

Other debtors
17,106
16,178

1,940,243
2,091,530


Page 20

 
HAMPSHIRE COMMODITIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
193,265
458,638

Corporation tax
109,498
185,743

Other taxation and social security
186,493
336,210

Other creditors
1,349,563
1,207,894

Accruals and deferred income
39,865
110,855

1,878,684
2,299,340



16.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



10,000 (2022 - 10,000) Ordinary Shares shares of £1.00 each
10,000
10,000

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company.  All ordinary shares rank equally with regard to the Company's residual assets.



17.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £5,850 (2022: £5,560). Contributions totalling £Nil (2022: £NIL) were payable to the fund at the reporting date.


18.


Related party transactions

At the year end the company owed the directors £1,348,881 (2022: £1,207,210). 
Key management are the directors of the Company, remuneration received in the year is detailed in note 8.
Hampshire Commodities Ireland Limited (HCI) is a company under the same control as Hampshire Commodities Limited (HC). During the year HC made sales of £32,900 (2022: £50,967) to HCI. At the year end HCI owed HC £809,967 (2022: £782,801).

Page 21