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Registered number: 03893285









HAWKINS & ASSOCIATES LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

 
HAWKINS & ASSOCIATES LIMITED
 

COMPANY INFORMATION


Directors
Mr A R Bryce 
Mr A D Chambers 
Mr I Giddings 
Dr A C Prickett 
Dr R Edwards 
Mr A B Reeves 




Company secretary
Mr A D Chambers



Registered number
03893285



Registered office
88 Leadenhall Street

London

EC3A 3BP




Independent auditors
Price Bailey LLP
Chartered Accountants & Statutory Auditors

Tennyson House

Cambridge Business Park

Cambridge

CB4 0WZ





 
HAWKINS & ASSOCIATES LIMITED
 

CONTENTS



Page
Group Strategic Report
 
 
1 - 3
Directors' Report
 
 
4 - 5
Independent Auditors' Report
 
 
6 - 9
Consolidated Profit and Loss Account
 
 
10
Consolidated Statement of Comprehensive Income
 
 
11
Consolidated Balance Sheet
 
 
12 - 13
Company Balance Sheet
 
 
14 - 15
Consolidated Statement of Changes in Equity
 
 
16 - 20
Company Statement of Changes in Equity
 
 
21 - 22
Consolidated Statement of Cash Flows
 
 
23
Consolidated Analysis of Net Debt
 
 
24
Notes to the Financial Statements
 
 
25 - 51


 
HAWKINS & ASSOCIATES LIMITED
 

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

The group is owned by its employees and provides forensic engineering and scientific services to support its clients with cause and origin investigation and validation work. Of overriding importance to the group is knowledge retention in order to provide the appropriate skills to service the highly technical work the company is appointed to undertake. To achieve this, the Hawkins Group needs to maintain its historic levels of employee retention and its ISO9001 accreditation.
Employee retention is vital to our strategy and in order to achieve this, the group aims to provide an interesting, rewarding and stable environment in which everyone can work. The result of investing in our staff and working environments, maintaining staff retention and our knowledge culture is that the group is able to continue to build on our high levels of customer service and add further value to our clients’ operations.  
The Share Incentive Plan is now in its 24th year and owns 73.6% of the equity. The strategy for the share incentive plan to acquire shares from retiring employees has been maintained.  These shares will be distributed to existing employees of the Group as part of our strategy to widen and diversify the share ownership among all employees.
Core to Hawkins values is to promote a secure sustainable company which has a positive impact on its stakeholders and the communities in which it is present. The development and management of our Environmental, Social and Governance (ESG) strategy supports the underlying business and our continued success.
Environmental
• Hawkins has committed to reduce direct carbon emissions to zero (or as close to zero as practicably possible) well before the UK Government’s “Net Zero” target of 2050.
• Hawkins has assisted its employees in replacing traditional combustion vehicles with newer electric vehicles both improving road safety & our carbon footprint.
• We have previously used external carbon offset schemes to mitigate our independently audited carbon emissions. We are now investing in longer term solutions to accelerate our carbon emissions reduction by investing in solar PV panels, EV chargers, and improving the EPC rating of our offices to reduce our impact on the environment.
Social
• Where possible, we support the local communities we are part of globally, with 5% of our net profits donated to charitable causes each year.
• We have consistently been awarded the ROSPA Gold Award and Medal for our Health & Safety practices encompassing not only our employees but also third parties and members of the public who are working on sites that we are responsible for.
• We continue to promote diversity in our recruitment, and also the development of diversity through assisting with STEM initiatives within the education system.
Governance
• Hawkins complies with the QCA Corporate Governance Code 2018.
• We are solely employee owned with the majority of the shares owned via a Share Incentive Plan to incentivise long term investment in the Company. The governance of the Company is enhanced by an Employee Trust Board that provides oversight to the main Board of Directors.  
Hawkins has had no RIDDOR reportable accidents in the year, and we have successfully retained the ROSPA Gold award again this year, in recognition of our robust health and safety culture which safeguard our employees and those affected by our activities. This is a testament to the quality of our health and safety management whilst overseeing a client site.

Page 1

 
HAWKINS & ASSOCIATES LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Business review
 
During the year, the Group has built on its reputation for technical excellence, and exceptional client service. As a result of this the Group has improved its Turnover by 11.6% to £27.6m with a profit prior to exceptional items of £1.7m.
During the year the Company has continued to invest into it’s freehold properties and laboratories to support the balance sheet strength and to further develop our client service offering.
After the year end in May 2024 the Company incorporated two subsidiaries in Ireland, Hawkins Forensics (Europe) Limited and Hawkins Forensics (Ireland) Limited to further support and develop our client base in the European Union.
In November 2022 the Company committed to an investment into it’s business systems to replace the out dated Enterprise Resource Planning (ERP) and Document Management System (DMS). The project to implement the DMS solution has progressed well and is planned to be implemented in 2024, with improved and state of the art information lifecycle management and information security provision. The project to replace the ERP solution failed during the year with work on the project ceasing in September 2023. As a result of this an impairment review of the asset under construction was undertaken and £1.3m of project costs were written off and declared as an exceptional item in the profit and loss account. This is a one off item and will not be repeated in future years. In July 2024 the Company re-started the ERP project and the Directors have confidence that the system will be implemented in 2025 delivering process efficiencies and improvements to client service. 

Principal risks and uncertainties
 
The key risks facing the business are primarily operational and economic.
The operational risks centre on our ability to attract and retain the correct number of highly qualified staff and to continue a strong health and safety culture in order to maintain our exemplary record.
Economic uncertainty and geopolitical volatility pose a risk as the company has operations globally in Europe,  UAE, Singapore and Hong Kong together with a significant number of clients being large financial institutions who themselves are affected by the macroeconomic and geopolitical environment.  The business has reviewed its exposure to changes in the political environment under a variety of scenarios and does not forecast any significant material impact to its operations or future performance. The business does foresee, in certain scenarios, a short term impact on both cash flow and turnover.  The required actions to mitigate these impacts have been built into our operational and financial plans. 
A significant asset of the business is the amount recoverable on contracts and outstanding trade debtors. In order to minimise the risk to the business, procedures exist to manage the working capital cycle and to reduce specific risks by undertaking credit reviews.
Financial risk management
The company has exposure to three main areas of risk - foreign exchange currency, liquidity and customer credit exposure.
Foreign exchange transactional currency exposure
The company is exposed to currency exchange-rate risk due to some revenue and operating expenses being denominated in non-Sterling currencies. The net exposure of each currency is monitored and active management through the use of forward foreign-currency exchange contracts is undertaken where appropriate.  Overall risk is reduced through the natural hedging of offsetting foreign currency receivables against payables.



 
Page 2

 
HAWKINS & ASSOCIATES LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Liquidity risk
The objective of the company in managing liquidity risk is to ensure that it can meet its financial obligations as and when they fall due. The company expects to meet its financial obligations through operating cash flows. In the event that the operating cash flows would not cover all the financial obligations, the company would seek to secure additional credit facilities.
Customer credit exposure
The company offers credit terms to its customers which allow payment of the debt after delivery of the goods or services. The company is at risk to the extent that a customer may be unable to pay the debt on the specified due date. This risk is mitigated by well developed long term client relationships and with the majority of the client base being established financial institutions with strong Standard & Poor’s ratings.  Further internal controls are in place when accepting a new client to minimise credit risk and manage the overall commercial exposure.
Future Developments
The market continues to be buoyant and the company is confident that it will continue to grow in a controlled manner through the development of new markets. The group will continue to develop its employees through training and other means of support to ensure employee retention rates are maintained.
Going Concern
The group continued to trade profitably during the year and the directors have prepared forecasts for 2024/25 and the trading period beyond this. Based upon this review, coupled with the comments made in the Strategic Report, the directors believe the group will continue to trade profitably and generate sufficient cash to meet the group's liabilities as they fall due for the foreseeable future, being a period of at least 12 months from the date of approval of these financial statements. 
The directors therefore believe the group continues to be a going concern and have prepared the financial statements on this basis.

Key performance indicators
 
The business is accredited to ISO 9001 and we use a set of key performance indicators, financial and non-financial, to monitor the business linked to the principal risks.
            2024   2023
Turnover (£'000)          27,586  24,698
Cash (£'000)           2,673   4,381
Debtors (£'000)          12,648          11,275
Headcount           174   160
Health and safety reportable accidents       0    0


This report was approved by the board on 7 August 2024 and signed on its behalf.



................................................
Mr A D Chambers
Director

Page 3

 
HAWKINS & ASSOCIATES LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024

The directors present their report and the financial statements for the year ended 31 March 2024.

Directors

The directors who served during the year were:

Mr A R Bryce 
Mr A D Chambers 
Mr I Giddings 
Dr A C Prickett 
Dr R Edwards 
Mr A B Reeves 

Results and dividends

The profit for the year, after taxation, amounted to £117,149 (2023 - £1,090,369).

During the year dividends of £241,705 were paid (2023: £303,703).

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements 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 Group 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 the Group 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 and the Group'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 and the Group's auditors are aware of that information.

Page 4

 
HAWKINS & ASSOCIATES LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

Under section 487(2) of the Companies Act 2006Price Bailey LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board on 7 August 2024 and signed on its behalf.
 




Mr A D Chambers
Director
Dr A C Prickett
Director

Page 5

 
HAWKINS & ASSOCIATES LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HAWKINS & ASSOCIATES LIMITED
 

Opinion


We have audited the financial statements of Hawkins & Associates Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2024, which comprise the Consolidated Profit and Loss Account, the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity 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 Group's and of the parent Company's affairs as at 31 March 2024 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 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 Group's or 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 directors with respect to going concern are described in the relevant sections of this report.


Page 6

 
HAWKINS & ASSOCIATES LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HAWKINS & ASSOCIATES 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 Group 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 Group 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 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 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 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 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 4, 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 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 directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 7

 
HAWKINS & ASSOCIATES LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HAWKINS & ASSOCIATES 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 Group 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:

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks, and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the group and company.
Our approach was as follows:
• We considered the nature of the commercial activities undertaken and the business performance for the year and held discussions with management.
• We obtained an understanding of the legal and regulatory requirements applicable to the group and company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, UK taxation legislation and Health and Safety.
• We obtained an understanding of how the group and company complies with these requirements by discussions with management and those charged with governance.
• We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
• We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
• We discussed during the audit engagement team briefing regarding how and where fraud might arise in the financial statements and any potential indication of fraud. We remained alert to any indication of fraud or non-compliance with laws and regulations throughout the audit.
• Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.


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 8

 
HAWKINS & ASSOCIATES LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HAWKINS & ASSOCIATES 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.





Andrew Booth (Senior Statutory Auditor)
  
for and on behalf of
Price Bailey LLP
 
Chartered Accountants
Statutory Auditors
  
Tennyson House
Cambridge Business Park
Cambridge
CB4 0WZ

10 September 2024
Page 9

 
HAWKINS & ASSOCIATES LIMITED
 

CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
Note
£
£

  

Turnover
 4 
27,585,605
24,698,031

Cost of sales
  
(20,017,617)
(18,325,698)

Gross profit
  
7,567,988
6,372,333

Administrative expenses
  
(5,876,432)
(5,024,771)

Exceptional loss on sale of long leasehold property
  
(13,423)
(76,657)

Other operating income
 5 
77,726
181,258

Exceptional impairment of intangible assets
  
(1,364,795)
-

Operating profit
 6 
391,064
1,452,163

Interest receivable and similar income
 10 
-
8,937

Interest payable and similar expenses
 11 
(186,094)
(81,218)

Profit before tax
  
204,970
1,379,882

Tax on profit
 12 
(87,821)
(289,513)

Profit for the financial year
  
117,149
1,090,369

Profit for the year attributable to:
  

Owners of the parent
  
117,149
1,090,369

The notes on pages 25 to 51 form part of these financial statements.

Page 10

 
HAWKINS & ASSOCIATES LIMITED
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
£
£


Profit for the financial year

  

117,149
1,090,369

Other comprehensive income
  


Currency translation differences
  
30,475
(68,705)

Total comprehensive income for the year
  
147,624
1,021,664

Profit for the year attributable to:
  


Owners of the parent Company
  
117,149
1,090,369

The notes on pages 25 to 51 form part of these financial statements.

Page 11

 
HAWKINS & ASSOCIATES LIMITED
REGISTERED NUMBER: 03893285

CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 14 
889,055
1,501,884

Tangible assets
 15 
6,130,898
5,090,001

Investments
 16 
4
4

  
7,019,957
6,591,889

Current assets
  

Debtors: amounts falling due within one year
 17 
12,648,874
11,275,370

Cash at bank and in hand
 18 
2,673,028
4,380,595

  
15,321,902
15,655,965

Creditors: amounts falling due within one year
 19 
(5,816,824)
(6,504,673)

Net current assets
  
 
 
9,505,078
 
 
9,151,292

Total assets less current liabilities
  
16,525,035
15,743,181

Creditors: amounts falling due after more than one year
 20 
(2,462,680)
(1,979,105)

Provisions for liabilities
  

Deferred taxation
 23 
(1,122,239)
(997,666)

Net assets
  
12,940,116
12,766,410

Page 12

 
HAWKINS & ASSOCIATES LIMITED
REGISTERED NUMBER: 03893285

CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2024

2024
2023
Note
£
£

Capital and reserves
  

Called up share capital 
 24 
1,208,526
1,208,526

Share premium account
 26 
4,102,362
4,104,631

Share based payment reserve
 26 
1,049,290
665,756

Capital redemption reserve
 26 
323,990
332,211

Foreign exchange reserve
 26 
9,962
(20,513)

ESOP reserve
 26 
(4,103,932)
(3,998,675)

Profit and loss account
 26 
10,349,918
10,474,474

Equity attributable to owners of the parent Company
  
12,940,116
12,766,410


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 7 August 2024.




................................................
Mr A D Chambers
................................................
Dr A C Prickett
Director
Director

Page 13

 
HAWKINS & ASSOCIATES LIMITED
REGISTERED NUMBER: 03893285

COMPANY BALANCE SHEET
AS AT 31 MARCH 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 14 
889,055
1,501,884

Tangible assets
 15 
6,050,232
5,002,753

Investments
 16 
794,048
794,048

  
7,733,335
7,298,685

Current assets
  

Debtors: amounts falling due within one year
 17 
10,017,194
9,209,182

Cash at bank and in hand
 18 
2,285,034
3,861,025

  
12,302,228
13,070,207

Creditors: amounts falling due within one year
 19 
(5,650,930)
(6,285,148)

Net current assets
  
 
 
6,651,298
 
 
6,785,059

Total assets less current liabilities
  
14,384,633
14,083,744

  

Creditors: amounts falling due after more than one year
 20 
(2,401,226)
(1,915,187)

Provisions for liabilities
  

Deferred taxation
 23 
(1,122,239)
(997,666)

Net assets
  
10,861,168
11,170,891

Page 14

 
HAWKINS & ASSOCIATES LIMITED
REGISTERED NUMBER: 03893285

COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2024

2024
2023
Note
£
£


Capital and reserves
  

Called up share capital 
 24 
1,208,526
1,208,526

Share premium account
 26 
4,102,362
4,102,362

Share based payment reserve
 26 
1,049,290
665,756

Capital redemption reserve
 26 
323,990
323,990

ESOP reserve
 26 
(4,103,932)
(3,998,675)

Profit and loss account
  
8,280,932
8,868,932

  
10,861,168
11,170,891


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 7 August 2024.




................................................
Mr A D Chambers
................................................
Dr A C Prickett
Director
Director

The notes on pages 25 to 51 form part of these financial statements.

Page 15

 

 
HAWKINS & ASSOCIATES LIMITED


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024



Called up share capital
Share premium account
Capital redemption reserve
Share based payment reserve
Foreign exchange reserve
ESOP reserve
Profit and loss account
Equity attributable to owners of parent Company


£
£
£
£
£
£
£
£


At 1 April 2023
1,208,526
4,104,631
332,211
665,756
(20,513)
(3,998,675)
10,474,474
12,766,410



Comprehensive income for the year


Profit for the year
-
-
-
-
-
-
117,149
117,149


Currency translation differences
-
-
-
-
30,475
-
-
30,475

Total comprehensive income for the year
-
-
-
-
30,475
-
117,149
147,624


Dividends: Equity capital
-
-
-
-
-
-
(241,705)
(241,705)


Share based payment movement in the year
-
(2,269)
(8,221)
383,534
-
-
-
373,044


ESOP movement in the year
-
-
-
-
-
(105,257)
-
(105,257)



Total transactions with owners
-
(2,269)
(8,221)
383,534
-
(105,257)
(241,705)
26,082



At 31 March 2024
1,208,526
4,102,362
323,990
1,049,290
9,962
(4,103,932)
10,349,918
12,940,116


Page 16

 

 
HAWKINS & ASSOCIATES LIMITED


 


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024



Total equity


£


At 1 April 2023
12,766,410



Comprehensive income for the year


Profit for the year
117,149


Currency translation differences
30,475

Total comprehensive income for the year
147,624


Dividends: Equity capital
(241,705)


Share based payment movement in the year
373,044


ESOP movement in the year
(105,257)



Total transactions with owners
26,082



At 31 March 2024
12,940,116


Page 17

 

 
HAWKINS & ASSOCIATES LIMITED


 


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024


The notes on pages 25 to 51 form part of these financial statements.

Page 18

 

 
HAWKINS & ASSOCIATES LIMITED


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023



Called up share capital
Share premium account
Capital redemption reserve
Share based payment reserve
Foreign exchange reserve
ESOP reserve
Profit and loss account
Equity attributable to owners of parent Company


£
£
£
£
£
£
£
£


At 1 April 2022
1,204,693
4,070,471
332,211
467,172
48,192
(2,843,767)
9,687,808
12,966,780



Comprehensive income for the year


Profit for the year
-
-
-
-
-
-
1,090,369
1,090,369


Currency translation differences
-
-
-
-
(68,705)
-
-
(68,705)

Total comprehensive income for the year
-
-
-
-
(68,705)
-
1,090,369
1,021,664


Dividends: Equity capital
-
-
-
-
-
-
(303,703)
(303,703)


Shares issued during the year
3,833
34,160
-
-
-
-
-
37,993


Share based payment movement in the year
-
-
-
198,584
-
-
-
198,584


ESOP movement in the year
-
-
-
-
-
(1,154,908)
-
(1,154,908)



Total transactions with owners
3,833
34,160
-
198,584
-
(1,154,908)
(303,703)
(1,222,034)



At 31 March 2023
1,208,526
4,104,631
332,211
665,756
(20,513)
(3,998,675)
10,474,474
12,766,410


Page 19

 

 
HAWKINS & ASSOCIATES LIMITED


 


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023



Total equity


£


At 1 April 2022
12,966,780



Comprehensive income for the year


Profit for the year
1,090,369


Currency translation differences
(68,705)

Total comprehensive income for the year
1,021,664


Dividends: Equity capital
(303,703)


Shares issued during the year
37,993


Share based payment movement in the year
198,584


ESOP movement in the year
(1,154,908)



Total transactions with owners
(1,222,034)



At 31 March 2023
12,766,410



The notes on pages 25 to 51 form part of these financial statements.

Page 20

 

 
HAWKINS & ASSOCIATES LIMITED


 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024



Called up share capital
Share premium account
Capital redemption reserve
Share based payment reserve
ESOP reserve
Profit and loss account
Total equity


£
£
£
£
£
£
£


At 1 April 2023
1,208,526
4,102,362
323,990
665,756
(3,998,675)
8,868,932
11,170,891





Loss for the year
-
-
-
-
-
(346,295)
(346,295)


Dividends: Equity capital
-
-
-
-
-
(241,705)
(241,705)


Share based payment movement in the year
-
-
-
383,534
-
-
383,534


ESOP movement in the year
-
-
-
-
(105,257)
-
(105,257)



At 31 March 2024
1,208,526
4,102,362
323,990
1,049,290
(4,103,932)
8,280,932
10,861,168



The notes on pages 25 to 51 form part of these financial statements.

Page 21

 

 
HAWKINS & ASSOCIATES LIMITED


 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023



Called up share capital
Share premium account
Capital redemption reserve
Share based payment reserve
ESOP reserve
Profit and loss account
Total equity


£
£
£
£
£
£
£


At 1 April 2022
1,204,693
4,070,471
323,990
467,172
(2,843,767)
8,424,801
11,647,360





Profit for the year
-
-
-
-
-
747,834
747,834


Dividends: Equity capital
-
-
-
-
-
(303,703)
(303,703)


Shares issued during the year
3,833
31,891
-
-
-
-
35,724


Share based payment movement in the year
-
-
-
198,584
-
-
198,584


ESOP movement in the year
-
-
-
-
(1,154,908)
-
(1,154,908)



At 31 March 2023
1,208,526
4,102,362
323,990
665,756
(3,998,675)
8,868,932
11,170,891



The notes on pages 25 to 51 form part of these financial statements.

Page 22

 
HAWKINS & ASSOCIATES LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
117,149
1,090,369

Adjustments for:

Amortisation of intangible assets
-
10,876

Depreciation of tangible assets
474,257
434,335

Impairments of  intangible fixed assets
1,364,795
-

Loss on disposal of tangible assets
27,644
188,181

Interest paid
186,094
81,218

Interest received
-
(8,937)

Taxation charge
87,821
289,513

(Increase) in debtors
(1,373,504)
(1,412,499)

(Decrease)/increase in creditors
(302,661)
1,022,075

Corporation tax received/(paid)
-
(383,883)

Foreign exchange
30,474
(68,705)

Net cash generated from operating activities

612,069
1,242,543


Cash flows from investing activities

Purchase of intangible fixed assets
(751,966)
(1,033,214)

Purchase of tangible fixed assets
(1,542,798)
(1,662,644)

Interest received
-
8,937

Net cash from investing activities

(2,294,764)
(2,686,921)

Cash flows from financing activities

Issue of ordinary shares
-
37,993

Repayment of loans
135,139
634,567

Dividends paid
(241,705)
(303,703)

Interest paid
(186,094)
(81,218)

Net movement on ESOP
267,788
(956,324)

Net cash used in financing activities
(24,872)
(668,685)

Net (decrease) in cash and cash equivalents
(1,707,567)
(2,113,063)

Cash and cash equivalents at beginning of year
4,380,595
6,493,658

Cash and cash equivalents at the end of year
2,673,028
4,380,595


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
2,673,028
4,380,595


The notes on pages 25 to 51 form part of these financial statements.

Page 23

 
HAWKINS & ASSOCIATES LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2024




At 1 April 2023
Cash flows
At 31 March 2024
£

£

£

Cash at bank and in hand

4,380,595

(1,707,567)

2,673,028

Debt due after 1 year

(1,979,105)

(483,575)

(2,462,680)

Debt due within 1 year

(616,811)

348,436

(268,375)


1,784,679
(1,842,706)
(58,027)

The notes on pages 25 to 51 form part of these financial statements.

Page 24

 
HAWKINS & ASSOCIATES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.


General information

Hawkins & Associates Limited is a private company limited by shares incorporated in England and Wales, United Kingdom. Its registered head office is located at 88 Leadenhall Street, London, EC3A 3BP.
The principal activity of the Group is the provision of services as consulting scientists and engineers to clients who are primarily in the insurance and legal professions.

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 financial statements are rounded to the nearest £.

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

The following principal accounting policies have been applied:

  
2.2

Reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing the company's individual financial statements, as permitted by the FRS 102:
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.39 to 11.48A;
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.29;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements.
The Company has taken advantage of the exemption contained within section 408 of the Companies Act 2006 not to present its own profit and loss account.

 
2.3

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

Page 25

 
HAWKINS & ASSOCIATES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.4

Going concern

The group continued to trade profitably during the year and the directors have prepared forecasts for 2024/25 and have considered the trading period beyond this.  Based upon this review, coupled with the comments made in the Strategic Report, the directors believe the group will continue to trade profitably and generate sufficient cash to meet the group's liabilities as they fall due for the foreseeable future, being a period of at least 12 months from the date of approval of these financial statements. 
The directors therefore believe the group continues to be a going concern and have prepared the financial statements on this basis.

 
2.5

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 that relate to borrowings and cash and cash equivalents are presented in the Consolidated Profit and Loss Account within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

Page 26

 
HAWKINS & ASSOCIATES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.6

Revenue recognition

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Group and the turnover can be reliably measured. Turnover 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 turnover is recognised:

Rendering of services

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of turnover can be measured reliably;
it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.7

Operating leases: the Group 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.

 
2.8

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.9

Leased assets: the Group as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.10

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants of a revenue nature are recognised in the Consolidated Profit and Loss Account in the same period as the related expenditure.

Page 27

 
HAWKINS & ASSOCIATES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.11

Interest income

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

 
2.12

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.13

Borrowing costs

All borrowing costs are recognised in the profit or loss in the year in which they are incurred.

 
2.14

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

 
2.15

Current and deferred taxation

The tax expense for the year comprises corporation and deferred tax. 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 corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 28

 
HAWKINS & ASSOCIATES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.16

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Group but are presented separately due to their size or incidence.

 
2.17

Intangible assets

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer's interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Profit and loss account over its useful economic life, considered to be 5 years.
Other intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
At each reporting date the directors assess whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Software is still under development so has not been amortised as yet.

 
2.18

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 method.

Depreciation is provided on the following basis:

Freehold property
-
3.33%
Long-term leasehold property
-
3.33%
Short-term leasehold property
-
5-10%
Motor vehicles
-
20%
Fixtures and fittings
-
15%
Computer equipment
-
33%

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.

Page 29

 
HAWKINS & ASSOCIATES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.19

Impairment of fixed assets and goodwill

Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

 
2.20

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.21

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.

 
2.22

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 Consolidated 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 Group's cash management.

 
2.23

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.24

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.

Page 30

 
HAWKINS & ASSOCIATES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.25

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

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 Group'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 Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies 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 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.

 
2.26

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.

  
2.27

Employee share incentive plan

The cost of the company's shares held by the share incentive plan (SIP) that have not been acquired and allocated to employees are deducted from equity in the company and group balance sheets under the heading ESOP reserve. Any cash received by the SIP on disposal of shares it holds is also recognised directly in equity. Other assets and liabilities of the SIP (including borrowings) are recognised as assets and liabilities of the company.

Page 31

 
HAWKINS & ASSOCIATES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

  
2.28

Share based payments

Cash settled share based awards are granted to eligible employees in the form of ordinary shares under the company's share incentive plan (SIP). A liability and expense equal to the fair value of the award is recognised over the vesting period, based on the estimate of the awards that will vest. The liability is remeasured to current fair value at each balance sheet date. Changes in fair value are recognised in the profit and loss account. The fair value is measured in accordance with the approved scheme rules.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgements and estimates. The key judgements and estimates are:
i. 
The ability of the company to recover fees on part-complete assignments.  The company recognises amounts recoverable on contracts once a contractual entitlement has arisen and in proportion to the stage of completeness of each assignment having shown due regard for all available information relating to the progress of a case.
ii. 
The company operates a bonus scheme with costs in relation to current activity based on both future and past performance of the company.  The future performance of the company is estimated based on the historic performance over the previous year.
iii. 
The nature of the industry that the company operates in requires elongated payment terms on outstanding debtors. Bad debt provisions are calculated both on a specific and general basis using all information available to the company at the time.
iv. 
The company holds investments in companies operating within similar niche markets. Impairment reviews on these investments are undertaken periodically utilising the information available to the company and the historic trends pertaining to the markets in which it operates.

Page 32

 
HAWKINS & ASSOCIATES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Consultancy services
27,585,605
24,698,031


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
24,030,116
22,138,135

Rest of the world
3,555,489
2,559,896

27,585,605
24,698,031



5.


Other operating income

2024
2023
£
£

Net rents receivable
77,726
181,258



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation of tangible fixed assets
474,257
434,335

Amortisation of intangible assets, including goodwill
-
10,876

Impairment of intangible assets
1,364,795
-

Exchange differences
52,558
(12,264)

Other operating lease rentals
683,430
899,791

Share-based payment (note 25)
455,281
356,114

Page 33

 
HAWKINS & ASSOCIATES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

7.


Auditors' remuneration

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


2024
2023
£
£

Fees payable to the Group's auditor and its associates for the audit of the Group's annual financial statements
26,600
24,200

Fees payable to the Group's auditor and its associates in respect of:

The audit of the company's subsidiaries
7,500
6,800

The audit of the company's subsidiaries - other auditors
19,640
27,838

Taxation compliance services
6,300
5,700

All other services
5,550
5,045


8.


Employees

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


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Wages and salaries
15,265,132
13,446,889
13,740,915
12,297,121

Social security costs
1,688,386
1,551,288
1,688,386
1,551,288

Cost of defined contribution scheme
1,922,317
1,462,561
1,910,896
1,453,050

18,875,835
16,460,738
17,340,197
15,301,459


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


        2024
        2023
            No.
            No.







Directors
6
7



Fee earners
115
103



Support staff
53
56

174
166

Page 34

 
HAWKINS & ASSOCIATES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
1,237,348
1,287,084

Group contributions to defined contribution pension schemes
178,905
141,660

1,416,253
1,428,744


During the year retirement benefits were accruing to 6 directors (2023 - 7) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £250,919 (2023 - £224,765).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £19,222 (2023 - £13,448).

In addition to the figures quoted above, during the year 6 directors (2023 - 6) received ordinary shares worth £53,451 in total (2023 - £37,746), under the company's share incentive plan. These shares were issued as partnership, matching and free shares at a maximum value per Director of £8,982. These shares were issued on the same basis to all employees.


10.


Interest receivable

2024
2023
£
£


Other interest receivable
-
8,937


11.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
186,094
81,218

Page 35

 
HAWKINS & ASSOCIATES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

12.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
3,894
42,746

Adjustments in respect of previous periods
(40,646)
240,723


Total current tax
(36,752)
283,469

Deferred tax


Origination and reversal of timing differences
124,573
329,589

Adjustments in respect of previous periods
-
(323,545)

Total deferred tax
124,573
6,044


Taxation on profit on ordinary activities
87,821
289,513
Page 36

 
HAWKINS & ASSOCIATES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
204,970
1,379,882


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
51,243
262,178

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
20,800
10,317

Capital allowances for year in excess of depreciation
(54,429)
(291,100)

Tax losses carried forward
131,949
34,188

Adjustments to tax charge in respect of prior periods
(26,314)
241,934

Other timing differences leading to an increase (decrease) in taxation
2,016
39,519

Changes in provisions leading to an increase (decrease) in the tax charge
40,212
(6,813)

Utilistaion of tax losses brought forward
(77,656)
(4,058)

Other differences leading to an increase (decrease) in the tax charge
-
3,348

Total tax charge for the year
87,821
289,513

Factors that may affect future tax charges
No deferred tax asset has been recognised in respect of tax losses arising in the subsidiary entities due to uncertainty regarding the timing of crystallisation. At 31 March 2024 Hawkins & Associates (Singapore) Pte Ltd had tax losses carried forward of £818,000 (2023 - £904,000) and Hawkins & Associates (Hong Kong) Limited has tax losses carried forward of £79,000 (2023 - £627,000).


13.


Dividends

2024
2023
£
£


Dividends paid on equity capital
241,705
303,703

Page 37

 
HAWKINS & ASSOCIATES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

14.


Intangible assets

Group





Computer software
Goodwill
Total

£
£
£



Cost


At 1 April 2023
1,501,884
176,906
1,678,790


Additions
751,966
-
751,966



At 31 March 2024

2,253,850
176,906
2,430,756



Amortisation


At 1 April 2023
-
176,906
176,906


Impairment charge
1,364,795
-
1,364,795



At 31 March 2024

1,364,795
176,906
1,541,701



Net book value



At 31 March 2024
889,055
-
889,055



At 31 March 2023
1,501,884
-
1,501,884

Computer software is an asset under construction and is not in use at the year end.



Page 38

 
HAWKINS & ASSOCIATES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
           14.Intangible assets (continued)

Company




Computer software

£



Cost


At 1 April 2023
1,501,884


Additions
751,966



At 31 March 2024

2,253,850



Amortisation


Impairment charge
1,364,795



At 31 March 2024

1,364,795



Net book value



At 31 March 2024
889,055



At 31 March 2023
1,501,884

Computer software is an asset under construction and is not in use at the year end.

Page 39

 


 
HAWKINS & ASSOCIATES LIMITED


 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024


15.


Tangible fixed assets


Group







Freehold property
Long-term leasehold property
Short-term leasehold property
Motor vehicles
Fixtures and fittings
Computer equipment
Total

£
£
£
£
£
£
£



Cost 


At 1 April 2023
2,972,354
781,914
1,628,542
27,855
1,754,935
1,642,399
8,807,999


Additions
976,973
9,919
51,373
-
383,447
121,086
1,542,798


Disposals
-
-
(265,369)
-
(565,688)
(871,147)
(1,702,204)


Transfers between classes
612,040
(317,410)
(12,853)
-
(281,777)
-
-



At 31 March 2024

4,561,367
474,423
1,401,693
27,855
1,290,917
892,338
8,648,593



Depreciation


At 1 April 2023
99,500
131,059
732,913
23,677
1,216,258
1,514,591
3,717,998


Charge for the year on owned assets
70,685
15,496
132,191
4,178
122,067
129,640
474,257


Disposals
-
-
(251,831)
-
(553,739)
(868,990)
(1,674,560)


Transfers between classes
44,847
(44,847)
-
-
-
-
-



At 31 March 2024

215,032
101,708
613,273
27,855
784,586
775,241
2,517,695
Page 40

 


 
HAWKINS & ASSOCIATES LIMITED


 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

           15.Tangible fixed assets (continued)




Net book value



At 31 March 2024
4,346,335
372,715
788,420
-
506,331
117,097
6,130,898



At 31 March 2023
2,872,854
650,855
895,629
4,178
538,677
127,808
5,090,001

Page 41

 


 
HAWKINS & ASSOCIATES LIMITED


 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

           15.Tangible fixed assets (continued)



Company







Freehold property
Long-term leasehold property
Short-term leasehold property
Motor vehicles
Fixtures and fittings
Computer equipment
Total

£
£
£
£
£
£
£

Cost


At 1 April 2023
2,972,354
781,914
1,594,092
27,855
1,543,778
1,631,026
8,551,019


Additions
976,973
9,919
24,126
-
383,447
93,045
1,487,510


Disposals
-
-
(265,369)
-
(565,688)
(871,147)
(1,702,204)


Transfers between classes
612,040
(317,410)
(12,853)
-
(281,777)
-
-



At 31 March 2024

4,561,367
474,423
1,339,996
27,855
1,079,760
852,924
8,336,325



Depreciation


At 1 April 2023
99,500
131,059
769,511
23,677
1,042,378
1,482,141
3,548,266


Charge for the year on owned assets
70,685
15,496
95,593
4,178
97,263
129,172
412,387


Disposals
-
-
(251,831)
-
(553,739)
(868,990)
(1,674,560)


Transfers between classes
44,847
(44,847)
-
-
-
-
-



At 31 March 2024

215,032
101,708
613,273
27,855
585,902
742,323
2,286,093
Page 42

 


 
HAWKINS & ASSOCIATES LIMITED


 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

           15.Tangible fixed assets (continued)




Net book value



At 31 March 2024
4,346,335
372,715
726,723
-
493,858
110,601
6,050,232



At 31 March 2023
2,872,854
650,855
824,581
4,178
501,400
148,885
5,002,753

Page 43

 
HAWKINS & ASSOCIATES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

           15.Tangible fixed assets (continued)





The net book value of land and buildings may be further analysed as follows:


2024
2023
£
£

Freehold
4,346,335
2,872,854

Long leasehold
372,715
650,855

Short leasehold
726,723
824,581

5,445,773
4,348,290



16.


Fixed asset investments

Group





Unlisted investments

£



Cost 


At 1 April 2023
4



At 31 March 2024
4




Company





Investments in subsidiary companies
Unlisted investments
Total

£
£
£



Cost


At 1 April 2023
794,044
4
794,048



At 31 March 2024
794,044
4
794,048




Page 44

 
HAWKINS & ASSOCIATES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Principal activity

Class of shares

Holding

Hawkins Forensics Limited
Dormant
Ordinary
100%
Hawkins (International) Limited
Provision of consulting scientists and engineers services
Ordinary
100%
Hawkins & Associates (Hong Kong) Limited
Provision of consulting scientists and engineers services
Ordinary
100%
Hawkins & Associates (Singapore) Pte Ltd
Provision of consulting scientists and engineers services
Ordinary
100%

Hawkins Forensics Limited and Hawkins (International) Limited are incorporated in England and Wales. Hawkins & Associates (Hong Kong) Limited is incorporated and domiciled in Hong Kong. Hawkins & Associates (Singapore) Pte Ltd is incorporated and domiciled in Singapore.


17.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Trade debtors
9,422,681
7,875,267
7,197,959
6,349,996

Other debtors
299,967
285,991
290,099
278,684

Prepayments and accrued income
1,173,802
1,167,195
1,012,960
1,037,047

Amounts recoverable on long term contracts
1,752,424
1,946,917
1,516,176
1,543,455

12,648,874
11,275,370
10,017,194
9,209,182


An impairment provision of £686,141 (2023 - £266,860) has been recognised against the group's trade debtors. In addition a provision of £447,161 (2023 - £492,383) was made against the group's amounts recoverable on contract.


18.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Cash at bank and in hand
2,673,028
4,380,595
2,285,034
3,861,025


Page 45

 
HAWKINS & ASSOCIATES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

19.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Bank loans
268,375
616,811
268,375
616,811

Trade creditors
786,368
1,090,634
784,419
1,086,865

Corporation tax
-
42,746
-
-

Other taxation and social security
1,168,123
1,123,958
1,156,263
1,111,715

Other creditors
180,330
127,754
178,330
125,240

Accruals and deferred income
3,413,628
3,502,770
3,263,543
3,344,517

5,816,824
6,504,673
5,650,930
6,285,148



20.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Bank loans
2,462,680
1,979,105
2,401,226
1,915,187





21.


Loans


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Amounts falling due within one year

Bank loans
268,375
616,811
268,375
616,811

Amounts falling due 1-2 years

Bank loans
340,890
504,322
279,436
440,404

Amounts falling due 2-5 years

Bank loans
565,517
1,157,330
565,517
1,157,330

Amounts falling due after more than 5 years

Bank loans
1,556,273
317,453
1,556,273
317,453

2,731,055
2,595,916
2,669,601
2,531,998


The bank loans are secured by charges over the freehold properties owned by the group. The bank loans are repayable by installments. Interest is charged at different rates. Two variable loans are charged at between 1.95 - 2.2% over base rate. One fixed loan is charged at 8.09%.

Page 46

 
HAWKINS & ASSOCIATES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

22.


Financial instruments

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Financial assets

Financial assets measured at amortised cost
14,067,010
12,222,217
11,218,046
9,772,319


Financial liabilities

Financial liabilities measured at amortised cost
7,110,374
7,315,975
6,895,893
7,088,620


Financial assets measured at amortised cost comprise cash, trade debtors, other debtors, amounts receivable on contracts and, where applicable, amounts due from subsidiary companies. 


Financial liabilities measured at amortised cost comprise bank loans, trade creditors, other creditors and accruals. 

Page 47

 
HAWKINS & ASSOCIATES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

23.


Deferred taxation


Group



2024


£






At beginning of year
(997,666)


Charged to profit or loss
(124,573)



At end of year
(1,122,239)

Company


2024


£






At beginning of year
(997,666)


Charged to profit or loss
(124,573)



At end of year
(1,122,239)

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Accelerated capital allowances
(647,488)
(678,155)
(647,488)
(678,155)

Share based payments
(519,613)
(391,406)
(519,613)
(391,406)

Other timing differences
44,862
71,895
44,862
71,895

(1,122,239)
(997,666)
(1,122,239)
(997,666)

Page 48

 
HAWKINS & ASSOCIATES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

24.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



1,208,526 (2023 - 1,208,526) Ordinary shares of £1.00 each
1,208,526
1,208,526

During the year no (2023 - 3,833) Ordinary £1 shares were issued for £NIL consideration (2023 - £37,993 & share premium recognised of £34,160).
Of the total shares in issue, 889,943 shares (2023 - 866,260 shares) are held by the group's share incentive plan (SIP) (see note 25). The shares are held by the SIP until such shares are acquired and allocated to employees.



25.


Share based payments

The group's share incentive plan (SIP) provides eligible employees with the opportunity to purchase ordinary shares in the company and in doing so entitles the employee to free issue matching shares. Eligible employees may also, under certain terms, receive free issue shares as part of performance conditions under contracts of employment and dividend shares as an alternative to cash dividend. The terms of the scheme are such that there is no vesting period.
If the employee leaves the service of the group, the SIP is required to purchase the shares at their fair value, in accordance with the scheme rules.

2024
2023
Number
Number
Movement in SIP shares are as follows:
Opening balance

652,418

650,025
 
Granted in the year

18,136

15,756
 
Free issues in the year

97,367

66,015
 
Withdrawn from the scheme

(16,185)

(79,378)
 
751,736

652,418
 

At the year end 751,736 shares (2023 - 652,418 shares) were allocated to eligible employees leaving 138,207 shares (2023 - 213,842) which were held by the scheme but not allocated.
During the year the company issued 97,367 (2023 - 66,015) shares free of charge. The market value of these shares has been estimated to be £960,039 (2023 - £615,409). These shares are subject to a five year vesting period.

Page 49

 
HAWKINS & ASSOCIATES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

26.


Reserves

Share premium account

Includes any premiums received on the issued of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium.

Share based payment reserve

Represents the cumulative value of the share based payment expense recognised in the profit and loss account for shares which have not yet vested.

Capital redemption reserve

Represents the nominal value of shares that have been cancelled.

Foreign exchange reserve

Comprises translation differences arising from the translation of financial statements of the Group's foreign entities into Sterling.

ESOP reserve

Represents the cost of the unvested and unallocated shares held by the Employee Share Ownership Plan (ESOP) at the year end.

Profit and loss account

Includes all current and prior period retained profits and losses.


27.


Capital commitments

As at 31 March 2024, the Group and Company had capital commitments amounting to £447,621 (2023: £361,053).






28.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £1,922,317 (2023 - £1,462,546) Contributions totalling £179,448 (2023 - £126,732) were payable to the fund at the balance sheet date and are included in creditors.

Page 50

 
HAWKINS & ASSOCIATES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

29.


Commitments under operating leases

At 31 March 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Not later than 1 year
618,870
648,377
618,870
565,691

Later than 1 year and not later than 5 years
2,073,704
1,289,953
2,073,704
1,269,091

Later than 5 years
2,038,086
2,412,164
2,038,086
2,412,164

4,730,660
4,350,494
4,730,660
4,246,946

At 31 March 2024 the Group and the Company had an underlease for each of the following periods:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Not later than 1 year
103,635
103,635
103,635
103,635

Later than 1 year and not later than 5 years
414,540
414,540
414,540
414,540

Later than 5 years
447,192
550,827
447,192
550,827

965,367
1,069,002
965,367
1,069,002


30.


Related party transactions

The group takes advantage of the FRS 102 section 33 "Related Party Disclosures" exemption, permitting it not to disclose transactions with group undertakings where 100% of the voting rights are controlled within the group and consolidated group accounts are prepared.
Key management personnel compensation amounted to £1,469,702 (2023 - £1,537,491).
Dividends were paid to directors during the year as follows:


2024
2023
£
£

Mr A R Bryce
4,560
5,598
Mr A D Chambers
944
952
Dr A C M Moncrieff
-
6,671
Dr A C Prickett
2,663
3,218
Mr I Giddings
3,081
3,765
Dr R Edwards
5,143
6,363
Mr A Reeves
2,899
3,366
19,290
29,933


Page 51