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iso4217:GBP xbrli:pure xbrli:shares

Registration number: 01244978

Hystat Systems Limited

Annual Report and Financial Statements

for the Year Ended 29 February 2024

 

Hystat Systems Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 8

Profit and Loss Account

9

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13 to 26

 

Hystat Systems Limited

Company Information

Directors

SJ Wadsworth

T Hammonds

D Mason

C I Watson

RA Wadsworth

Registered office

Spa Fields Industrial Estate
New Street
Slaithwaite
Huddersfield
West Yorkshire
HD7 5BB

Auditors

Balance Accountants
Victoria Court
91 Huddersfield Road
Holmfirth
West Yorkshire
HD9 3JA

 

Hystat Systems Limited

Strategic Report for the Year Ended 29 February 2024

The directors present their strategic report for the year ended 29 February 2024.

Principal activity

The principal activity of the company is the sale, design, manufacture and repair of special hydraulic cylinders and piston accumulators for the heavy engineering industry.

Fair review of the business

The profit and loss account set out on page 9 shows turnover for the year of £12,521,390 (2023 - £10,491,472) and a profit after taxation for the year of £1,133,977 (2023 - £775,895).

Total company turnover increased by 19.3% in comparison with the prior year, following the completion of several large projects. Gross profit as a percentage of turnover increased from 32.2% to 34.1%. Manufacturing costs remain subject to stringent scrutiny and have been reduced wherever possible and have decreased as a percentage of turnover. Administrative expenses have increased by 14%, however as a percentage of turnover have decreased from 24% to 22.9%.

Principal risks and uncertainties

Operationally, global material cost increases and availability remain significant challenges to the business and industry, particularly around steel supply and electrical components. Inflationary pressures are also being experienced through increased energy and transport costs, further adding to a challenging business environment.

The main financial risks arising from the company’s activities are credit risk and liquidity risk. These are monitored by the board of directors.

The company’s credit risk is primarily attributable to its trade debtors. Credit risk is managed through credit insurance, credit checks on new and existing customers and by monitoring payments against contractual terms.

Liquidity risk is managed through a mixture of long and short term debt finance and readily accessible bank accounts to ensure that the company has sufficient funds to manage its day to day operations.

Approved and authorised by the Board on 1 October 2024 and signed on its behalf by:
 

.........................................
SJ Wadsworth
Director

 

Hystat Systems Limited

Directors' Report for the Year Ended 29 February 2024

The directors present their report and the financial statements for the year ended 29 February 2024.

Directors of the company

The directors who held office during the year were as follows:

SJ Wadsworth

T Hammonds

W Iredale (ceased 3 July 2023)

D Mason

C I Watson

RA Wadsworth

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved and authorised by the Board on 1 October 2024 and signed on its behalf by:
 

.........................................
SJ Wadsworth
Director

 

Hystat Systems Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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.

 

Hystat Systems Limited

Independent Auditor's Report to the Members of Hystat Systems Limited

Opinion

We have audited the financial statements of Hystat Systems Limited (the 'company') for the year ended 29 February 2024, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, and 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 29 February 2024 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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.

 

Hystat Systems Limited

Independent Auditor's Report to the Members of Hystat Systems Limited

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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and 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 our 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 and the Directors' Report.

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 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 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.

 

Hystat Systems Limited

Independent Auditor's Report to the Members of Hystat Systems Limited

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit 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.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

• Conclude 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.

• Evaluate 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.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the company audit. We remain solely responsible for our audit opinion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

 

Hystat Systems Limited

Independent Auditor's Report to the Members of Hystat Systems Limited

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 an auditor’s 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.

......................................
R A Barrowclough (Senior Statutory Auditor)
For and on behalf of Balance Accountants, Statutory Auditor

Victoria Court
91 Huddersfield Road
Holmfirth
West Yorkshire
HD9 3JA

1 October 2024

 

Hystat Systems Limited

Profit and Loss Account for the Year Ended 29 February 2024

Note

2024
£

2023
£

Turnover

3

12,521,390

10,491,472

Cost of sales

 

(8,247,533)

(7,116,786)

Gross profit

 

4,273,857

3,374,686

Administrative expenses

 

(2,869,825)

(2,518,049)

Other operating income

4

105,952

8,907

Operating profit

5

1,509,984

865,544

Other interest receivable and similar income

6

-

1,144

Interest payable and similar expenses

7

(13,457)

(13,721)

   

(13,457)

(12,577)

Profit before tax

 

1,496,527

852,967

Tax on profit

10

(362,550)

(77,072)

Profit for the financial year

 

1,133,977

775,895

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

Hystat Systems Limited

Statement of Comprehensive Income for the Year Ended 29 February 2024

2024
£

2023
£

Profit for the year

1,133,977

775,895

Total comprehensive income for the year

1,133,977

775,895

 

Hystat Systems Limited

(Registration number: 01244978)
Balance Sheet as at 29 February 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

12

1,362,194

1,295,947

Current assets

 

Stocks

13

2,319,497

2,725,993

Debtors

14

3,497,256

4,168,277

Cash at bank and in hand

15

1,204,231

99,099

 

7,020,984

6,993,369

Creditors: Amounts falling due within one year

16

(2,719,398)

(2,412,130)

Net current assets

 

4,301,586

4,581,239

Total assets less current liabilities

 

5,663,780

5,877,186

Creditors: Amounts falling due after more than one year

16

(122,688)

(199,150)

Provisions for liabilities

17

(247,543)

(251,891)

Net assets

 

5,293,549

5,426,145

Capital and reserves

 

Called up share capital

50,663

50,663

Share premium reserve

67,374

67,374

Capital redemption reserve

142,897

142,897

Retained earnings

5,032,615

5,165,211

Shareholders' funds

 

5,293,549

5,426,145

Approved and authorised by the Board on 1 October 2024 and signed on its behalf by:
 

.........................................
SJ Wadsworth
Director

 

Hystat Systems Limited

Statement of Changes in Equity for the Year Ended 29 February 2024

Share capital
£

Share premium
£

Capital redemption reserve
£

Retained earnings
£

Total
£

At 1 March 2023

50,663

67,374

142,897

5,165,211

5,426,145

Profit for the year

-

-

-

1,133,977

1,133,977

Dividends

-

-

-

(1,266,573)

(1,266,573)

At 29 February 2024

50,663

67,374

142,897

5,032,615

5,293,549

Share capital
£

Share premium
£

Capital redemption reserve
£

Retained earnings
£

Total
£

At 1 March 2022

50,663

67,374

142,897

4,895,945

5,156,879

Profit for the year

-

-

-

775,895

775,895

Dividends

-

-

-

(506,629)

(506,629)

At 28 February 2023

50,663

67,374

142,897

5,165,211

5,426,145

 

Hystat Systems Limited

Notes to the Financial Statements for the Year Ended 29 February 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Spa Fields Industrial Estate
New Street
Slaithwaite
Huddersfield
West Yorkshire
HD7 5BB

These financial statements were authorised for issue by the Board on 1 October 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The presentation currency is £ sterling.

Going concern

The financial statements have been prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
the amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Analysis of turnover by geographical market: United Kingdom £9,249,226 (2023: £6,929,210), Non United Kingdom £3,272,164 (2023: £3,562,262)

 

Hystat Systems Limited

Notes to the Financial Statements for the Year Ended 29 February 2024

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

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

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Leasehold property improvements

10% on straight line

Loose tools

20% on reducing balance

Plant and machinery

15% on reducing balance

Fixtures and fittings

15% on reducing balance

Computer equipment

25% on reducing balance

Motor vehicles

25% on reducing balance

 

Hystat Systems Limited

Notes to the Financial Statements for the Year Ended 29 February 2024

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

over 5 years

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

 

Hystat Systems Limited

Notes to the Financial Statements for the Year Ended 29 February 2024

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

 

Hystat Systems Limited

Notes to the Financial Statements for the Year Ended 29 February 2024

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Cash flow statement
The company has taken advantage of the exemption from the requirement to prepare a cash flow statement on the grounds that it is a wholly owned subsidiary undertaking of a parent which prepares a consolidated cash flow statement. The consolidated cash flow statement is included in the financial statements of Hystat Holdings Limited.

3

Turnover

The analysis of the company's revenue for the year from continuing operations is as follows:

2024
£

2023
£

Sale of goods and services

12,521,390

10,491,472

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2024
£

2023
£

Government grants

22,872

8,907

Miscellaneous other operating income

83,080

-

105,952

8,907

5

Operating profit

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

239,306

224,159

Foreign exchange (gains)/losses

(2,436)

156

Operating lease expense - plant and machinery

6,893

8,692

Loss/(profit) on disposal of property, plant and equipment

13,601

(8,202)

 

Hystat Systems Limited

Notes to the Financial Statements for the Year Ended 29 February 2024

6

Other interest receivable and similar income

2024
£

2023
£

Interest income on bank deposits

-

1,144

7

Interest payable and similar expenses

2024
£

2023
£

Interest on bank overdrafts and borrowings

2,881

2,976

Interest on obligations under finance leases and hire purchase contracts

9,218

10,745

Interest expense on other finance liabilities

1,358

-

13,457

13,721

8

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

2,845,551

2,719,514

Social security costs

287,735

274,795

Pension costs, defined contribution scheme

306,441

281,928

Redundancy costs

47,422

-

Other employee expense

64,932

87,334

3,552,081

3,363,571

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Production

45

52

Administration and support

26

26

Directors

5

6

76

84

 

Hystat Systems Limited

Notes to the Financial Statements for the Year Ended 29 February 2024

9

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

397,630

409,410

Contributions paid to money purchase schemes

61,515

46,926

459,145

456,336

During the year the number of directors who were receiving benefits and share incentives was as follows:

2024
No.

2023
No.

Accruing benefits under money purchase pension scheme

5

5

In respect of the highest paid director:

2024
£

2023
£

Remuneration

102,734

76,801

Company contributions to money purchase pension schemes

10,910

6,814

 

Hystat Systems Limited

Notes to the Financial Statements for the Year Ended 29 February 2024

10

Taxation

Tax charged/(credited) in the profit and loss account

2024
£

2023
£

Current taxation

UK corporation tax

289,621

20,351

UK corporation tax adjustment to prior periods

77,277

-

366,898

20,351

Deferred taxation

Movement in deferred taxation provision

(4,348)

56,721

Tax expense in the income statement

362,550

77,072

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023 - the same as the standard rate of corporation tax in the UK) of 24.49% (2023 - 19%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

1,496,527

852,967

Corporation tax at standard rate

366,526

162,064

Deferred tax (credit)/expense from unrecognised tax loss or credit

(4,348)

56,721

Tax increase/(decrease) from effect of capital allowances and depreciation

7,718

(4,839)

Tax decrease arising from group relief

(84,623)

(59,597)

Tax increase/(decrease) from effect of adjustment in research and development tax credit

77,277

(77,277)

Total tax charge

362,550

77,072

 

Hystat Systems Limited

Notes to the Financial Statements for the Year Ended 29 February 2024

11

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 March 2023

14,025

14,025

At 29 February 2024

14,025

14,025

Amortisation

At 1 March 2023

14,025

14,025

At 29 February 2024

14,025

14,025

Carrying amount

At 29 February 2024

-

-

At 28 February 2023

-

-

 

Hystat Systems Limited

Notes to the Financial Statements for the Year Ended 29 February 2024

12

Tangible assets

Leasehold property improvements
 £

Fixtures and fittings
£

Plant and machinery
£

Computer equipment
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 March 2023

70,855

231,699

3,108,479

96,860

264,507

3,772,400

Additions

155,322

61,846

118,281

10,118

-

345,567

Disposals

-

(34,178)

(173,775)

(12,486)

-

(220,439)

At 29 February 2024

226,177

259,367

3,052,985

94,492

264,507

3,897,528

Depreciation

At 1 March 2023

1,293

167,629

2,107,824

57,772

141,935

2,476,453

Charge for the year

15,548

16,040

159,911

11,725

36,081

239,305

Eliminated on disposal

-

(29,940)

(138,947)

(11,537)

-

(180,424)

At 29 February 2024

16,841

153,729

2,128,788

57,960

178,016

2,535,334

Carrying amount

At 29 February 2024

209,336

105,638

924,197

36,532

86,491

1,362,194

At 28 February 2023

69,562

64,070

1,000,655

39,088

122,572

1,295,947

 

Hystat Systems Limited

Notes to the Financial Statements for the Year Ended 29 February 2024

13

Stocks

2024
£

2023
£

Work in progress

1,212,299

1,653,030

Other inventories

1,107,198

1,072,963

2,319,497

2,725,993

14

Debtors

Current

Note

2024
£

2023
£

Trade debtors

 

1,789,665

2,905,773

Amounts owed by related parties

23

1,465,040

1,082,355

Other debtors

 

98,750

2,703

Prepayments

 

143,801

177,446

   

3,497,256

4,168,277

15

Cash and cash equivalents

2024
£

2023
£

Cash on hand

841

579

Cash at bank

1,203,390

98,520

1,204,231

99,099

Bank overdrafts

-

(183,760)

Cash and cash equivalents in statement of cash flows

1,204,231

(84,661)

 

Hystat Systems Limited

Notes to the Financial Statements for the Year Ended 29 February 2024

16

Creditors

Note

2024
£

2023
£

Due within one year

 

Loans and borrowings

20

87,373

297,623

Trade creditors

 

1,042,863

650,845

Amounts due to related parties

23

-

110,148

Social security and other taxes

 

164,346

223,000

Other payables

 

779,930

823,633

Accruals

 

353,907

286,530

Corporation tax liability

10

290,979

20,351

 

2,719,398

2,412,130

Due after one year

 

Loans and borrowings

20

122,688

199,150

17

Provisions for liabilities

Deferred tax
£

Total
£

At 1 March 2023

251,891

251,891

Additional provisions

(4,348)

(4,348)

At 29 February 2024

247,543

247,543

18

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £306,441 (2023 - £281,928).

 

Hystat Systems Limited

Notes to the Financial Statements for the Year Ended 29 February 2024

19

Share capital

Allotted, called up and fully paid shares

 

2024

2023

 

No.

£

No.

£

Allotted issued and fully paid of £0.10 each

506,628

50,663

506,628

50,663

         

20

Loans and borrowings

2024
£

2023
£

Non-current loans and borrowings

Bank borrowings

-

32,265

Hire purchase contracts

122,688

166,885

122,688

199,150

2024
£

2023
£

Current loans and borrowings

Bank borrowings

-

29,460

Bank overdrafts

-

183,760

Hire purchase contracts

87,373

84,403

87,373

297,623

 

Hystat Systems Limited

Notes to the Financial Statements for the Year Ended 29 February 2024

21

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

-

906

22

Dividends

   

2024

 

2023

   

£

 

£

Interim dividend of £2.50 (2023 - £1.00) per ordinary share

 

1,266,573

 

506,629

         

23

Related party transactions

Summary of transactions with parent

Amounts owed to related parties includes an amount of £nil (2023 £41,100) owed to Hystat Holdings Limited. There are no conditions attached to this loan.
 During the year the company paid a dividend of £1,266,573 (2023: £506,629) and rent of £137,000 (2023: £137,000) to Hystat Holdings Limited.
 

Summary of transactions with other related parties

Amounts owed by related parties includes an amount of £1,465,040 (2023: £1,082,355), owed by HSL Cylinders Limited. There are no conditions attached to this loan.
Amounts owed to related parties includes an amount of £nil (2023 £69,048) owed to HSL Cylinders Limited. There are no conditions attached to this loan.

 During the year the company had sales of £304,887 (2023 £116,495) to and purchases of £746,550 (2023 £122,600) from HSL Cylinders Limited.
 

24

Parent and ultimate parent undertaking

The company's immediate parent is Hystat Holdings Limited , incorporated in England and Wales.