REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Period 1 January 2023 to 17 November 2023 |
for |
HOODRICH LIMITED |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Period 1 January 2023 to 17 November 2023 |
for |
HOODRICH LIMITED |
HOODRICH LIMITED (REGISTERED NUMBER: 11246859) |
Contents of the Financial Statements |
for the Period 1 January 2023 to 17 November 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Statement of Directors' Responsibilities | 5 |
Report of the Independent Auditors | 6 |
Income Statement | 10 |
Other Comprehensive Income | 11 |
Balance Sheet | 12 |
Statement of Changes in Equity | 13 |
Cash Flow Statement | 14 |
Notes to the Cash Flow Statement | 15 |
Notes to the Financial Statements | 16 |
HOODRICH LIMITED |
Company Information |
for the Period 1 January 2023 to 17 November 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
First Floor |
Spitalfields House |
Stirling Way |
Borehamwood |
Hertfordshire |
WD6 2FX |
HOODRICH LIMITED (REGISTERED NUMBER: 11246859) |
Strategic Report |
for the Period 1 January 2023 to 17 November 2023 |
The director presents the strategic report for the year ended 17 November 2023. |
PRINCIPAL ACTIVITY, GOALS AND OBJECTIVES |
The principal activity of the company in the period under review was that of manufacture and distribution of clothing and accessories under the Hoodrich brand. |
REVIEW OF BUSINESS |
The results for the period and the financial position of the company at the period end were considered satisfactory by the directors. The company's business was sold in November 2023 and the directors are considering the future steps of the business. |
The company has been successful in expanding its product offering over the years. It had a solid financial performance, with steady revenue growth and profitability over the years. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Competitors |
Key competitor in UK are other streetwear leisure wear wholesalers and any other well-known brands in the UK. |
Threat of new entrants |
It is very difficult for any new entrant to enter the industry as there are cumbersome rules and regulations surrounding the trading standard regulations etc. Also, the main players have tied themselves with exclusivity with various manufacturers or suppliers, hence its going to be very difficult for any new entrant to forge new relationship with existing suppliers or manufacturers. The capital outlay is also significant and acts as another barrier to entry. |
Customer Power |
The company's ultimate customer is the consumer; however, the products reach the consumer through retailers and some larger retailers may be able to apply pressure on pricing, hence the company's exclusivity with suppliers and sound relationship with suppliers works out at the company's advantage in overcoming such issues. Moreover, the company is not reliant on any single or group of customers. The company's direct promotion with end consumer also helps in customer loyalty. |
Threat of substitute |
Substitutes are available but the company's products may be the substitute that people fall for due to the pricing of the products. |
Quality of service |
Failure to provide a high quality of service would cause severe damage to the company's reputation and its ability to find and retain new customers. |
Government action |
Failure to anticipate or respond to changes in government policy or regulation could negatively impact the company's performance. Regular intelligence gathering by senior management on proposed legislative and regulatory changes takes place and is cascaded down to teams during regular meetings. |
Development and performance |
The company's strategy is primarily to maintain its operational activities at their existing levels but also to explore opportunities for growth. |
HOODRICH LIMITED (REGISTERED NUMBER: 11246859) |
Strategic Report |
for the Period 1 January 2023 to 17 November 2023 |
KEY PERFORMANCE INDICATORS |
The Key Performance indicators used by the directors to assess the performance of the company are as follows:- |
2023 | 2022 |
£ | £ |
Turnover | 60,056,278 | 50,583,919 |
Operating (loss)/profit | (7,622,828 | ) | 5,239,975 |
ON BEHALF OF THE BOARD: |
HOODRICH LIMITED (REGISTERED NUMBER: 11246859) |
Report of the Directors |
for the Period 1 January 2023 to 17 November 2023 |
The directors present their report with the financial statements of the company for the period 1 January 2023 to 17 November 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the period under review was that of manufacture and distribution of clothing and accessories under the Hoodrich brand. |
DIVIDENDS |
Interim dividends of £20,000 per share were paid on 25 January 2023 and £10,000 per share on 11 April 2023. |
The total distribution of dividends for the period ended 17 November 2023 will be £3,000,000. |
DIRECTORS |
Other changes in directors holding office are as follows: |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
HOODRICH LIMITED (REGISTERED NUMBER: 11246859) |
Statement of Directors' Responsibilities |
for the Period 1 January 2023 to 17 November 2023 |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
Report of the Independent Auditors to the Members of |
Hoodrich Limited |
Opinion |
We have audited the financial statements of Hoodrich Limited (the 'company') for the period ended 17 November 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 17 November 2023 and of its loss for the period then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Without qualifying our opinion we draw your attention to Note 24 to the financial statements. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report, the Report of the Directors and the Statement of Directors' Responsibilities, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Hoodrich Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Hoodrich 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. |
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 engagement partner 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 company through discussions with directors and other management, and from our commercial knowledge and experience of the industry; |
- 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 company, including the Companies Act 2006, taxation legislation including compliance with data protection, anti-bribery, employment, and health and safety legislation; |
- 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 company'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 |
- obtaining an understanding of the policies and procedures including internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations in order to design audit procedures that are appropriate in the circumstances (but not for the purpose of expressing an opinion on the effectiveness of the company's internal control). |
To address the risk of fraud through management bias and override of controls, we: |
- identified and assessed the risks of material misstatement of the financial statements, whether due to fraud or error, designed and performed audit procedures responsive to those risks, and obtained audit evidence that is sufficient and appropriate to provide a basis for our opinion |
- 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 in relation to income recognition, collectability of debtors and impairment of tangible and intangible assets 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: |
- evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors; |
Report of the Independent Auditors to the Members of |
Hoodrich Limited |
-evaluating the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation (i.e. gives a true and fair view); |
-reading the minutes of meetings of those charged with governance; |
-enquiring of management as to actual and potential litigation and claims; |
-reviewing correspondence with HMRC and the company's legal advisors; and |
- Concluding on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern. |
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 collusion, forgery, deliberate concealment and omissions, misrepresentations, or the override of internal |
control. |
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 |
First Floor |
Spitalfields House |
Stirling Way |
Borehamwood |
Hertfordshire |
WD6 2FX |
HOODRICH LIMITED (REGISTERED NUMBER: 11246859) |
Income Statement |
for the Period 1 January 2023 to 17 November 2023 |
Period |
1.1.23 |
to | Year Ended |
17.11.23 | 31.12.22 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
OPERATING (LOSS)/PROFIT | ( |
) |
Interest receivable and similar income | 6 |
(7,607,848 | ) | 5,240,661 |
Interest payable and similar expenses | 7 | ( |
) |
(LOSS)/PROFIT BEFORE TAXATION | 8 | ( |
) |
Tax on (loss)/profit | 9 | ( |
) |
(LOSS)/PROFIT FOR THE FINANCIAL PERIOD |
( |
) |
HOODRICH LIMITED (REGISTERED NUMBER: 11246859) |
Other Comprehensive Income |
for the Period 1 January 2023 to 17 November 2023 |
Period |
1.1.23 |
to | Year Ended |
17.11.23 | 31.12.22 |
Notes | £ | £ |
(LOSS)/PROFIT FOR THE PERIOD | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
( |
) |
HOODRICH LIMITED (REGISTERED NUMBER: 11246859) |
Balance Sheet |
17 November 2023 |
17.11.23 | 31.12.22 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 | ( |
) | ( |
) |
NET CURRENT (LIABILITIES)/ASSETS | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
( |
) |
CREDITORS |
Amounts falling due after more than one year |
16 |
( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) |
NET (LIABILITIES)/ASSETS | ( |
) |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings | 20 | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) |
The financial statements were approved by the Board of Directors and authorised for issue on |
HOODRICH LIMITED (REGISTERED NUMBER: 11246859) |
Statement of Changes in Equity |
for the Period 1 January 2023 to 17 November 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 17 November 2023 | ( |
) | ( |
) |
HOODRICH LIMITED (REGISTERED NUMBER: 11246859) |
Cash Flow Statement |
for the Period 1 January 2023 to 17 November 2023 |
Period |
1.1.23 |
to | Year Ended |
17.11.23 | 31.12.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) |
Interest paid | ( |
) |
Tax paid | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Amount introduced by directors | - | 3,525 |
Amount withdrawn by directors | (271,878 | ) | (1 | ) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of period |
2 |
1,691,387 |
Cash and cash equivalents at end of period |
2 |
5,260,506 |
HOODRICH LIMITED (REGISTERED NUMBER: 11246859) |
Notes to the Cash Flow Statement |
for the Period 1 January 2023 to 17 November 2023 |
1. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Period |
1.1.23 |
to | Year Ended |
17.11.23 | 31.12.22 |
£ | £ |
(Loss)/profit before taxation | ( |
) |
Depreciation charges |
Finance costs | 3,880 | - |
Finance income | (14,980 | ) | (686 | ) |
(7,591,006 | ) | 5,264,258 |
Decrease/(increase) in stocks | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations | ( |
) |
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: |
Period ended 17 November 2023 |
17.11.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 261,388 | 5,260,506 |
Bank overdrafts | ( |
) |
244,017 | 5,260,506 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 5,260,506 | 1,691,387 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.23 | Cash flow | At 17.11.23 |
£ | £ | £ |
Net cash |
Cash at bank | 5,260,506 | (4,999,118 | ) | 261,388 |
Bank overdrafts | - | (17,371 | ) | (17,371 | ) |
5,260,506 | ( |
) | 244,017 |
Debt |
Debts falling due after 1 year | (68,333 | ) | 68,333 | - |
(68,333 | ) | 68,333 | - |
Total | 5,192,173 | (4,948,156 | ) | 244,017 |
HOODRICH LIMITED (REGISTERED NUMBER: 11246859) |
Notes to the Financial Statements |
for the Period 1 January 2023 to 17 November 2023 |
1. | STATUTORY INFORMATION |
Hoodrich Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared on a going concern basis as the directors are satisfied that the company will have adequate resources to meet its liabilities to third parties as they fall due. |
Turnover |
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates. |
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income. |
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. |
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. |
Property, plant and equipment |
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Such cost includes costs directly attributable to making the assets capable of operating as intended. |
The carrying value of tangible assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. |
Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives. |
Fixtures and fittings | 25% on cost |
Computer equipment | 25% on cost |
HOODRICH LIMITED (REGISTERED NUMBER: 11246859) |
Notes to the Financial Statements - continued |
for the Period 1 January 2023 to 17 November 2023 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks 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 stocks to their present location and condition. |
Stocks 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 stocks 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. |
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. |
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 fixed 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. |
Taxation |
Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
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 period end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Foreign exchange |
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss. |
HOODRICH LIMITED (REGISTERED NUMBER: 11246859) |
Notes to the Financial Statements - continued |
for the Period 1 January 2023 to 17 November 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. |
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. |
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. |
Basic financial assets |
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. |
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 creditors and bank loans that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Equity instruments |
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. |
Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company. |
3. | CRITICAL ACCOUNTING 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 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. |
There are no significant judgements or estimates involved in the preparation of the financial statements. |
HOODRICH LIMITED (REGISTERED NUMBER: 11246859) |
Notes to the Financial Statements - continued |
for the Period 1 January 2023 to 17 November 2023 |
4. | TURNOVER |
The turnover and loss (2022 - profit) before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by geographical market is given below: |
Period |
1.1.23 |
to | Year Ended |
17.11.23 | 31.12.22 |
£ | £ |
United Kingdom |
Rest of the world | 4,637,033 | 1,762,560 |
5. | EMPLOYEES AND DIRECTORS |
Period |
1.1.23 |
to | Year Ended |
17.11.23 | 31.12.22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the period was as follows: |
Period |
1.1.23 |
to | Year Ended |
17.11.23 | 31.12.22 |
Administration |
Period |
1.1.23 |
to | Year Ended |
17.11.23 | 31.12.22 |
£ | £ |
Directors' remuneration |
Information regarding the highest paid director is as follows: |
Period |
1.1.23 |
to | Year Ended |
17.11.23 | 31.12.22 |
£ | £ |
Emoluments etc |
HOODRICH LIMITED (REGISTERED NUMBER: 11246859) |
Notes to the Financial Statements - continued |
for the Period 1 January 2023 to 17 November 2023 |
6. | INTEREST RECEIVABLE AND SIMILAR INCOME |
Period |
1.1.23 |
to | Year Ended |
17.11.23 | 31.12.22 |
£ | £ |
Deposit account interest |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period |
1.1.23 |
to | Year Ended |
17.11.23 | 31.12.22 |
£ | £ |
Bank interest |
8. | (LOSS)/PROFIT BEFORE TAXATION |
The loss (2022 - profit) is stated after charging: |
Period |
1.1.23 |
to | Year Ended |
17.11.23 | 31.12.22 |
£ | £ |
Depreciation - owned assets |
Patents and licences amortisation |
Auditors' remuneration |
Foreign exchange differences |
Audit fee of £20,000 has been borne by a company with directors in common. |
9. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the period was as follows: |
Period |
1.1.23 |
to | Year Ended |
17.11.23 | 31.12.22 |
£ | £ |
Current tax: |
UK corporation tax | ( |
) |
Deferred tax | ( |
) |
Tax on (loss)/profit | ( |
) |
HOODRICH LIMITED (REGISTERED NUMBER: 11246859) |
Notes to the Financial Statements - continued |
for the Period 1 January 2023 to 17 November 2023 |
9. | TAXATION - continued |
Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
Period |
1.1.23 |
to | Year Ended |
17.11.23 | 31.12.22 |
£ | £ |
(Loss)/profit before tax | ( |
) |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Utilisation of tax losses |
Adjustments to tax charge in respect of previous periods |
Deferred tax | (585,376 | ) | 10,243 |
Total tax (credit)/charge | (1,582,445 | ) | 1,001,763 |
10. | DIVIDENDS |
Period |
1.1.23 |
to | Year Ended |
17.11.23 | 31.12.22 |
£ | £ |
Ordinary shares of £1 each |
Interim |
11. | INTANGIBLE FIXED ASSETS |
Patents |
and |
licences |
£ |
COST |
At 1 January 2023 |
Additions |
At 17 November 2023 |
AMORTISATION |
At 1 January 2023 |
Amortisation for period |
At 17 November 2023 |
NET BOOK VALUE |
At 17 November 2023 |
At 31 December 2022 |
HOODRICH LIMITED (REGISTERED NUMBER: 11246859) |
Notes to the Financial Statements - continued |
for the Period 1 January 2023 to 17 November 2023 |
12. | TANGIBLE FIXED ASSETS |
Fixtures |
and | Computer |
fittings | equipment | Totals |
£ | £ | £ |
COST |
At 1 January 2023 |
Additions |
At 17 November 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for period |
At 17 November 2023 |
NET BOOK VALUE |
At 17 November 2023 |
At 31 December 2022 |
13. | STOCKS |
17.11.23 | 31.12.22 |
£ | £ |
Stocks |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
17.11.23 | 31.12.22 |
£ | £ |
Trade debtors |
Other debtors |
VAT |
Deferred tax asset |
Prepayments |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
17.11.23 | 31.12.22 |
£ | £ |
Bank loans and overdrafts (see note 17) |
Trade creditors |
Tax |
Social security and other taxes |
Other creditors |
Directors' current accounts | - | 271,878 |
Accrued expenses |
HOODRICH LIMITED (REGISTERED NUMBER: 11246859) |
Notes to the Financial Statements - continued |
for the Period 1 January 2023 to 17 November 2023 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
17.11.23 | 31.12.22 |
£ | £ |
Bank loans (see note 17) |
17. | LOANS |
An analysis of the maturity of loans is given below: |
17.11.23 | 31.12.22 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | - | 68,333 |
18. | PROVISIONS FOR LIABILITIES |
31.12.22 |
£ |
Deferred tax | 10,243 |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Credit to Income Statement during period | ( |
) |
Balance at 17 November 2023 | ( |
) |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 17.11.23 | 31.12.22 |
value: | £ | £ |
Ordinary | £1 | 100 | 100 |
20. | RESERVES |
Retained |
earnings |
£ |
At 1 January 2023 |
Deficit for the period | ( |
) |
Dividends | ( |
) |
At 17 November 2023 | ( |
) |
HOODRICH LIMITED (REGISTERED NUMBER: 11246859) |
Notes to the Financial Statements - continued |
for the Period 1 January 2023 to 17 November 2023 |
21. | PENSION COMMITMENTS |
2023 | 2022 |
Charge to profit or loss in respect of defined contribution schemes | 19,916 | 17,314 |
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. |
The number of directors for whom benefits are accruing under money purchase schemes is nil (2022 - nil). |
The amount owed to the pension fund at the balance sheet date was £1,745 (2022 - £3,856). |
22. | RELATED PARTY DISCLOSURES |
The amounts due to the directors at the year end was £Nil (2022 - £271,878). |
The company's assets are secured by fixed and floating charges in favour of its financiers, one of which is a shareholder of the company. |
Included in creditors amounts falling due within one year is an amount of £12,673,532 (2022: £4,442,564) owed to a related company under common control. The amount is repayable on demand and is interest free. |
During the period, the company made purchases of £51,157,113 (2022: £35,998,476) from a related company under common control. |
Hoodrich Global Ltd who acquired the company at the period end had advanced £10,438,000 to the company as part of the purchase consideration on acquisition. |
23. | PRIOR YEAR FINANCIAL STATEMENTS |
The financial statements for the year ended 31 December 2022 were not audited. Consequently, the comparative figures presented for that year in these financial statements have not been subject to an audit. |
24. | GOING CONCERN |
The company's creditors have indicated their willingness to support the company for the foreseeable future and consequently the directors consider it appropriate to prepare the financial statements on the going concern basis. |