REGISTERED NUMBER: 12715023 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
HUDSON CABLE MANAGEMENT GROUP LIMITED |
REGISTERED NUMBER: 12715023 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
HUDSON CABLE MANAGEMENT GROUP LIMITED |
HUDSON CABLE MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 12715023) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 4 |
Report of the Independent Auditors | 6 |
Consolidated Statement of Comprehensive Income |
10 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Cash Flow Statement |
17 |
Notes to the Consolidated Financial Statements |
19 |
HUDSON CABLE MANAGEMENT GROUP LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
Christopher Joyce FCCA |
AUDITORS: |
14 London Street |
Andover |
Hampshire |
SP10 2PA |
HUDSON CABLE MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 12715023) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The director presents his strategic report of the company and the group for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
Principal activity |
The principal activity of the group is to provide comprehensive cable management propositions across the M&E sector. |
Business model |
Hudson Cable Management Group Ltd consists of the parent company along with three trading subsidiaries; Armorduct Systems Ltd, R.M.S. Limited, and Milton Cable Management Systems Ltd. |
Business review |
2023 was the second year of operation for Hudson Cable Management Group, operating as the parent company. As such, this featured the introduction of new organisational processes and procedures as well as the evolution of existing practices. We focused on the content and structure for performance reporting, business reviews and development opportunities across the Group. A new divisional operating model was also developed to help position Armorduct and RMS better for success, and more transparently in the marketplace. The main elements of this were for RMS to transition their go-to-market strategy to work far more through wholesalers instead of directly with contractors, and for Armorduct to become the "group brand" for all containment. In direct support of this, a key focus was the continued development of wholesaler relationships for the Group, both as stockists and as business partners. Good progress was made in this respect, despite the challenges of fierce competition. A new Data Centre division was also set up within RMS to focus on this fast-growing and highly profitable market sector, harnessing RMS' capabilities, experience and reputation within the industry. Additional staff were recruited to support this initiative. |
A key highlight of 2023 was the launch of Milton Cable Management, a new trading subsidiary specialising in solutions for harsh and hazardous environments and offering consultancy services on cable containment on behalf of the Hudson Group. Some re-deployment of existing resources have been made to accommodate this. As part of this, a strategic partnership with the Wibe Group was agreed, providing access to their GRP and steel ladder product portfolios. Both of these new ranges compliment the containment offer across the Group, helping to broaden our customer engagement and enhance our profile within the marketplace. As a result, project discussions developed with customers in the oil, gas and energy industries, including nuclear. From this, we began a relationship with MEH, the contractor alliance responsible for the mechanical and electrical installation at Hinkley Point C Power Station (HPC), currently Europe's largest construction project. From this and the wider subcontractor relationships, a vast number of bracketry and framework opportunities were made available to RMS, the Group's metalwork fabrication specialist. This promises a huge amount of valuable and sustainable work for RMS in particular, ongoing for several years with HPC, and also dovetailing into Sizewell C - the next UK nuclear power station project to be delivered. |
RMS experienced significant unexpected delays on numerous customer projects during 2023 which resulted in greatly reduced revenues for the year compared with 2022. This prompted the business review which led to the new operating model previously mentioned, placing more emphasis on higher margin, more predictable and more sustainable fabrication work. The project delays experienced by RMS had a corresponding knock-on effect for Armorduct also, as far less Armorduct containment was purchased by RMS to supply the projects. This coincided with a warehouse relocation for Armorduct, consuming resources and management bandwidth. All of which further contributed to the challenges of 2023, but better positioned the Group for success in 2024 and beyond. |
HUDSON CABLE MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 12715023) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The cable containment industry is a highly competitive market within the construction industry, with many products being regarded as commodity items. One of the Group's USPs has always been the ability to combine standard commodity products with bespoke components designed for specific projects. This combination requires a highly flexible manufacturing process, as producing "specials" is in direct conflict with the high-volume manufacturing of standard products. Balancing this conflict is difficult, and with the uncertainties caused by major customer project delays, decisions are complex and mean compromises have to be made. This has contributed to the change in operating models within the Group subsidiaries, which bear 100% of risk for Hudson Cable Management Ltd. This new business model offers a clearer alignment to our USPs. |
Credit risk |
Across the group, we have a robust credit checking system and do not accept any new customers where we are unhappy with their credit rating. Irrecoverable debts cannot always be avoided due to our desire to collaborate with our smaller customers to develop mutually beneficial relationships. We wish to continue to do so but we must carefully balance this with our need to protect the Group assets. In these cases, we offer reduced credit limits and shorter payment terms. |
Liquidity risk |
Across the Group, we are confident that we have ample resources available to us to support our everyday requirements. One of the benefits of being part of a group mean that we can re-distribute resources where they are most needed. |
FUTURE PROSPECTS |
2024 will see the new operating model rolled out within our Group divisions. This will require adjustments to our intercompany relationships and trading processes, as well as training and development programmes for our employees. It will also involve updating and educating customers and the wider industry on our new strategy. |
We feel confident that Armorduct will experience significant growth, whilst RMS will experience a period of consolidation as it evolves to the new fabrication model. |
It is anticipated that some of the customer project delays already experienced will persist, but the new opportunities we have been developing look very promising and we are confident that these will represent excellent longer-term prospects for our subsidiaries and in turn, the Group. In particular, Hinkley Point C will act as a catalyst for the operating model changes, as it will produce good initial revenues in 2024. This will provide a fruitful foundation for continued investment in our manufacturing capabilities as well as subcontractor relationship development for the foreseeable future. |
ON BEHALF OF THE BOARD: |
HUDSON CABLE MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 12715023) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The director presents his report with the financial statements of the company and the group for the year ended 31 December 2023. |
DIVIDENDS |
An interim dividend of £34 per was paid during the year. The director recommends that no final dividend be paid. |
The total distribution of dividends for the year ended 31 December 2023 will be £31,000. |
DIRECTOR |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and the group 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 director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he 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 group's auditors are aware of that information. |
HUDSON CABLE MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 12715023) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
AUDITORS |
The auditors, Hysons Audit Services Ltd, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HUDSON CABLE MANAGEMENT GROUP LIMITED |
Opinion |
We have audited the financial statements of Hudson Cable Management Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 December 2023 and of the group's 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 group 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HUDSON CABLE MANAGEMENT GROUP LIMITED |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Director 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director. |
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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HUDSON CABLE MANAGEMENT GROUP LIMITED |
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 approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- | the Senior Statutory Auditor ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- | we identified the laws and regulations applicable to the group through discussions with directors and other management and from our commercial knowledge and experience of the publishing sector; |
- | we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the group, including the Companies Act 2006 and Financial Reporting Standard 102; |
- | we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- | identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- | making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- | considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- | performed analytical procedures to identify any unusual or unexpected relationships; |
- | tested journal entries to identify unusual transactions; |
- | assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
- | investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- | agreeing financial statement disclosures to underlying supporting documentation; |
- | reading the minutes of meetings of those charged with governance; |
- | enquiring of management as to actual and potential litigation and claims; and |
- | reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HUDSON CABLE MANAGEMENT GROUP LIMITED |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
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. |
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. |
for and on behalf of |
14 London Street |
Andover |
Hampshire |
SP10 2PA |
HUDSON CABLE MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 12715023) |
CONSOLIDATED |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 4 | 11,671,874 | 14,460,315 |
Cost of sales | (7,019,187 | ) | (8,604,217 | ) |
GROSS PROFIT | 4,652,687 | 5,856,098 |
Distribution costs | (243,845 | ) | (174,522 | ) |
Administrative expenses | (4,462,363 | ) | (4,428,502 | ) |
(53,521 | ) | 1,253,074 |
Other operating income | - | (7 | ) |
OPERATING (LOSS)/PROFIT | 6 | (53,521 | ) | 1,253,067 |
Interest receivable and similar income |
18,227 |
2,298 |
(35,294 | ) | 1,255,365 |
Interest payable and similar expenses |
7 |
(53,261 |
) |
(65,887 |
) |
(LOSS)/PROFIT BEFORE TAXATION | (88,555 | ) | 1,189,478 |
Tax on (loss)/profit | 8 | 101,329 | (317,539 | ) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
12,774 |
871,939 |
Profit attributable to: |
Owners of the parent | 95,239 | 549,536 |
Non-controlling interests | (82,465 | ) | 322,403 |
12,774 | 871,939 |
Total comprehensive income attributable to: |
Owners of the parent | 95,239 | (516,343 | ) |
Non-controlling interests | (82,465 | ) | 1,388,282 |
HUDSON CABLE MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 12715023) |
CONSOLIDATED |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
£ | £ |
12,774 | 871,939 |
HUDSON CABLE MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 12715023) |
CONSOLIDATED BALANCE SHEET |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 | (2,690,102 | ) | (2,989,003 | ) |
Tangible assets | 12 | 2,048,775 | 2,160,546 |
Investments | 13 | - | - |
(641,327 | ) | (828,457 | ) |
CURRENT ASSETS |
Stocks | 14 | 1,407,889 | 1,483,442 |
Debtors | 15 | 2,633,670 | 3,302,169 |
Cash at bank and in hand | 1,821,859 | 2,056,352 |
5,863,418 | 6,841,963 |
CREDITORS |
Amounts falling due within one year | 16 | 2,492,620 | 3,033,572 |
NET CURRENT ASSETS | 3,370,798 | 3,808,391 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
2,729,471 |
2,979,934 |
CREDITORS |
Amounts falling due after more than one year |
17 |
(486,737 |
) |
(723,861 |
) |
PROVISIONS FOR LIABILITIES | 21 | (217,346 | ) | (213,259 | ) |
NET ASSETS | 2,025,388 | 2,042,814 |
CAPITAL AND RESERVES |
Called up share capital | 22 | 900 | 100 |
Retained earnings | 23 | 718,671 | 654,432 |
SHAREHOLDERS' FUNDS | 719,571 | 654,532 |
NON-CONTROLLING INTERESTS | 1,305,817 | 1,388,282 |
TOTAL EQUITY | 2,025,388 | 2,042,814 |
The financial statements were approved by the director and authorised for issue on 25 September 2024 and were signed by: |
Mr S Hudson-Smith - Director |
HUDSON CABLE MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 12715023) |
COMPANY BALANCE SHEET |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
Investments | 13 |
CURRENT ASSETS |
Debtors | 15 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT (LIABILITIES)/ASSETS | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 21 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Retained earnings | 23 |
SHAREHOLDERS' FUNDS |
Company's profit/(loss) for the financial year |
8,832 |
(70,760 |
) |
The financial statements were approved by the director and authorised for issue on |
HUDSON CABLE MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 12715023) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Non-controlling | Total |
capital | earnings | Total | interests | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2022 | 1 | 178,896 | 178,897 | - | 178,897 |
Changes in equity |
Issue of share capital | 99 | - | 99 | - | 99 |
Dividends | - | (74,000 | ) | (74,000 | ) | - | (74,000 | ) |
Total comprehensive income | - | 549,536 | 549,536 | 1,388,282 | 1,937,818 |
Balance at 31 December 2022 | 100 | 654,432 | 654,532 | 1,388,282 | 2,042,814 |
Changes in equity |
Issue of share capital | 800 | - | 800 | - | 800 |
Dividends | - | (31,000 | ) | (31,000 | ) | - | (31,000 | ) |
Total comprehensive income | - | 95,239 | 95,239 | (82,465 | ) | 12,774 |
Balance at 31 December 2023 | 900 | 718,671 | 719,571 | 1,305,817 | 2,025,388 |
HUDSON CABLE MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 12715023) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Issue of share capital | - |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 December 2022 |
Changes in equity |
Issue of share capital | - |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2023 |
HUDSON CABLE MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 12715023) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 506,079 | (440,492 | ) |
Interest paid | (47,773 | ) | (65,541 | ) |
Interest element of hire purchase payments paid |
(5,488 |
) |
(346 |
) |
Tax paid | (98,800 | ) | 53,308 |
Net cash from operating activities | 354,018 | (453,071 | ) |
Cash flows from investing activities |
Purchase of intangible fixed assets | - | 2,989,003 |
Purchase of tangible fixed assets | (558,454 | ) | (997,091 | ) |
Sale of tangible fixed assets | 202,538 | 224,116 |
Interest received | 18,227 | 2,298 |
Net cash from investing activities | (337,689 | ) | 2,218,326 |
Cash flows from financing activities |
New loans in year | - | 264,828 |
Capital repayments in year | (220,622 | ) | - |
Share issue | 800 | 99 |
Equity dividends paid | (31,000 | ) | (74,000 | ) |
Net cash from financing activities | (250,822 | ) | 190,927 |
(Decrease)/increase in cash and cash equivalents | (234,493 | ) | 1,956,182 |
Cash and cash equivalents at beginning of year |
2 |
2,056,352 |
100,170 |
Cash and cash equivalents at end of year |
2 |
1,821,859 |
2,056,352 |
HUDSON CABLE MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 12715023) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
(Loss)/profit before taxation | (88,555 | ) | 1,189,478 |
Depreciation charges | 189,993 | 321,231 |
(Profit)/loss on disposal of fixed assets | (21,208 | ) | 21,928 |
Finance costs | 53,261 | 65,887 |
Finance income | (18,227 | ) | (2,298 | ) |
115,264 | 1,596,226 |
Decrease/(increase) in stocks | 75,553 | (1,483,442 | ) |
Decrease/(increase) in trade and other debtors | 746,517 | (3,092,161 | ) |
(Decrease)/increase in trade and other creditors | (431,255 | ) | 2,538,885 |
Cash generated from operations | 506,079 | (440,492 | ) |
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 | 1,821,859 | 2,056,352 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 2,056,352 | 100,170 |
HUDSON CABLE MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 12715023) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 2,056,352 | (234,493 | ) | 1,821,859 |
2,056,352 | (234,493 | ) | 1,821,859 |
Debt |
Finance leases | (667,063 | ) | 63,625 | (603,438 | ) |
Debts falling due within 1 year | (28,884 | ) | 3,316 | (25,568 | ) |
Debts falling due after 1 year | (235,944 | ) | 153,681 | (82,263 | ) |
(931,891 | ) | 220,622 | (711,269 | ) |
Total | 1,124,461 | (13,871 | ) | 1,110,590 |
HUDSON CABLE MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 12715023) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
Hudson Cable Management Group Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
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. |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Goodwill |
Where the fair value of the group's interest in the assets, liabilities and contingent liabilities acquired exceeds the cost of the business combination, negative goodwill arises. The group, after consideration of the assets, liabilities and contingent liabilities acquired and the cost of the combination, recognises negative goodwill on the balance sheet and releases this to profit and loss, up to the fair value of non-monetary assets acquired, over the periods in which the non-monetary assets are expected to benefit. |
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 |
Freehold property | - |
Improvements to property | - |
Plant and machinery | - |
Motor vehicles | - |
Office and computer equipment | - |
HUDSON CABLE MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 12715023) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
4. | TURNOVER |
The turnover and loss (2022 - profit) before taxation are attributable to the one principal activity of the group. |
HUDSON CABLE MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 12715023) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 3,516,322 | 3,496,653 |
Social security costs | 341,982 | 351,891 |
Other pension costs | 158,858 | 157,262 |
4,017,162 | 4,005,806 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Directors | 6 | 6 |
Manufacturing | 50 | 54 |
Warehousing | 20 | 18 |
Transport | 2 | 2 |
Accounts | 5 | 4 |
Sales | 15 | 13 |
Administration | 18 | 13 |
2023 | 2022 |
£ | £ |
Director's remuneration | 479,708 | 719,353 |
Director's pension contributions to money purchase schemes | 40,913 | 21,463 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 4 | 3 |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 212,500 | - |
Pension contributions to money purchase schemes | 10,000 | - |
HUDSON CABLE MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 12715023) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
6. | OPERATING (LOSS)/PROFIT |
The operating loss (2022 - operating profit) is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery | 13,210 | 24,595 |
Other operating leases | 444,966 | 430,397 |
Depreciation - owned assets | 289,390 | 244,865 |
Depreciation - assets on hire purchase contracts | 199,505 | 76,691 |
(Profit)/loss on disposal of fixed assets | (21,208 | ) | 21,928 |
Goodwill amortisation | (298,901 | ) | - |
Foreign exchange differences | (342 | ) | 35 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest | - | 160 |
Bank loan interest | 32,863 | 22,947 |
Other interest | - | 95 |
Factoring interest | 14,910 | 42,339 |
Hire purchase | 5,488 | 346 |
53,261 | 65,887 |
8. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | (105,416 | ) | 195,364 |
Deferred tax | 4,087 | 122,175 |
Tax on (loss)/profit | (101,329 | ) | 317,539 |
9. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
HUDSON CABLE MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 12715023) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
10. | DIVIDENDS |
An interim dividend of £34 per share on the shares was paid during the year. The director recommends that no final dividend be paid on these share. |
The total distribution of dividends for the year ended 31 December 2023 will be £31,000 (2022 - £74,000). |
11. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 | (2,989,003 | ) |
AMORTISATION |
Amortisation for year | (298,901 | ) |
At 31 December 2023 | (298,901 | ) |
NET BOOK VALUE |
At 31 December 2023 | (2,690,102 | ) |
At 31 December 2022 | (2,989,003 | ) |
HUDSON CABLE MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 12715023) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
12. | TANGIBLE FIXED ASSETS |
Group |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
COST |
At 1 January 2023 | 556,975 | 687,720 | 2,657,719 |
Additions | - | 19,231 | 285,503 |
Disposals | - | - | (189,210 | ) |
Reclassification/transfer | - | (8,977 | ) | - |
At 31 December 2023 | 556,975 | 697,974 | 2,754,012 |
DEPRECIATION |
At 1 January 2023 | 64,057 | 325,326 | 1,769,090 |
Charge for year | 11,140 | 79,197 | 208,631 |
Eliminated on disposal | - | - | (7,880 | ) |
Reclassification/transfer | - | - | - |
At 31 December 2023 | 75,197 | 404,523 | 1,969,841 |
NET BOOK VALUE |
At 31 December 2023 | 481,778 | 293,451 | 784,171 |
At 31 December 2022 | 492,918 | 362,394 | 888,629 |
HUDSON CABLE MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 12715023) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
12. | TANGIBLE FIXED ASSETS - continued |
Group |
Office |
and |
Motor | computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 January 2023 | 581,937 | 387,493 | 4,871,844 |
Additions | 211,430 | 51,266 | 567,430 |
Disposals | (98,118 | ) | - | (287,328 | ) |
Reclassification/transfer | - | (10,676 | ) | (19,653 | ) |
At 31 December 2023 | 695,249 | 428,083 | 5,132,293 |
DEPRECIATION |
At 1 January 2023 | 335,289 | 217,536 | 2,711,298 |
Charge for year | 124,830 | 65,097 | 488,895 |
Eliminated on disposal | (98,118 | ) | - | (105,998 | ) |
Reclassification/transfer | - | (10,677 | ) | (10,677 | ) |
At 31 December 2023 | 362,001 | 271,956 | 3,083,518 |
NET BOOK VALUE |
At 31 December 2023 | 333,248 | 156,127 | 2,048,775 |
At 31 December 2022 | 246,648 | 169,957 | 2,160,546 |
HUDSON CABLE MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 12715023) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
12. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Office |
and |
Plant and | Motor | computer |
machinery | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 | 488,080 | 130,568 | 110,000 | 728,648 |
Additions | 181,329 | 162,341 | - | 343,670 |
At 31 December 2023 | 669,409 | 292,909 | 110,000 | 1,072,318 |
DEPRECIATION |
At 1 January 2023 | 95,276 | 16,290 | 11,458 | 123,024 |
Charge for year | 100,963 | 71,042 | 27,500 | 199,505 |
At 31 December 2023 | 196,239 | 87,332 | 38,958 | 322,529 |
NET BOOK VALUE |
At 31 December 2023 | 473,170 | 205,577 | 71,042 | 749,789 |
At 31 December 2022 | 392,804 | 114,278 | 98,542 | 605,624 |
Company |
Office |
and |
Motor | computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 January 2023 |
Additions |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
HUDSON CABLE MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 12715023) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
13. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Milton Court, East Portway Business Park, Andover, Hampshire, SP10 3LU |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
(Loss)/profit for the year | ( |
) |
Registered office: Milton Court, East Portway, Andover, Hampshire, SP10 3LU |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
(Loss)/profit for the year | ( |
) |
HUDSON CABLE MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 12715023) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
13. | FIXED ASSET INVESTMENTS - continued |
Registered office: Milton Court, East Portway Business Park, Andover, SP10 3LU |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Loss for the year | ( |
) | ( |
) |
14. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Stocks | 1,363,666 | 1,391,279 |
Work-in-progress | 44,223 | 92,163 |
1,407,889 | 1,483,442 |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 2,096,299 | 2,801,908 |
Amounts owed by group undertakings | - | 106 |
Other debtors | 182,505 | 205,490 |
Tax | 117,018 | 39,000 |
VAT | - | - |
Prepayments | 237,848 | 255,665 |
2,633,670 | 3,302,169 |
HUDSON CABLE MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 12715023) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 18) | 25,568 |
28,884 |
Hire purchase contracts (see note 19) | 198,964 |
179,146 |
Trade creditors | 1,121,537 | 1,098,528 |
Tax | 69,177 | 195,376 |
Social security and other taxes | 144,011 | 93,989 |
VAT | 265,098 | 282,146 | - | - |
Other creditors | 24,290 | 29,776 |
Accruals and deferred income | 643,975 | 1,125,727 |
2,492,620 | 3,033,572 |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Bank loans (see note 18) | 82,263 | 235,944 |
Hire purchase contracts (see note 19) | 404,474 |
487,917 |
486,737 | 723,861 |
18. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2023 | 2022 |
£ | £ |
Amounts falling due within one year | or on demand: |
Bank loans | 25,568 | 28,884 |
Amounts falling due between one | and two years: |
Bank loans - 1-2 years | 82,263 | 235,944 |
HUDSON CABLE MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 12715023) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase | contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | 198,964 | 179,146 |
Between one and five years | 404,474 | 487,917 |
603,438 | 667,063 |
Group |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year | 317,511 | 340,045 |
Between one and five years | 725,830 | 865,591 |
In more than five years | 433,905 | 611,655 |
1,477,246 | 1,817,291 |
20. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2023 | 2022 |
£ | £ |
Bank loans | 107,831 | 264,828 |
Hire purchase contracts | 603,438 | 667,063 |
711,269 | 931,891 |
21. | PROVISIONS FOR LIABILITIES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax | 217,346 | 213,259 | - | 4,676 |
HUDSON CABLE MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 12715023) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
21. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2023 | 213,259 |
Accelerated capital allowances | 4,087 |
Balance at 31 December 2023 | 217,346 |
Company |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Accelerated capital allowances | (4,676 | ) |
Balance at 31 December 2023 |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 900 | 100 |
800 Ordinary shares of £1 each were allotted and fully paid for |
23. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 January 2023 | 654,432 |
Profit for the year | 95,239 |
Dividends | (31,000 | ) |
At 31 December 2023 | 718,671 |
HUDSON CABLE MANAGEMENT GROUP LIMITED (REGISTERED NUMBER: 12715023) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
23. | RESERVES - continued |
Company |
Retained |
earnings |
£ |
At 1 January 2023 |
Profit for the year |
Dividends | ( |
) |
At 31 December 2023 |
24. | RELATED PARTY DISCLOSURES |
Entities over which the entity has control, joint control or significant influence |
2023 | 2022 |
£ | £ |
Sales | 952,100 | 620,666 |
Purchases | 48,232 | 11,809 |
Amount due from related party | 104,505 | 56,667 |
Amount due to related party | 6,992 | 8,795 |
25. | ULTIMATE CONTROLLING PARTY |
The controlling party is Mr S Hudson-Smith. |
The ultimate controlling party is Mr S Hudson-Smith. |