Company registration number 02426790 (England and Wales)
HART & WILCOX LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
HART & WILCOX LIMITED
COMPANY INFORMATION
Directors
Mr S P Hill
Mr M J Robinson
Mr R D Carvey
Mr S R Brooks
Mr D M Brook
Secretary
Mr S P Hill
Company number
02426790
Registered office
Concept House
Tendring Park
Colchester Road
Tendring
Essex
CO16 9AA
Independent auditor
Sumer Auditco Limited
820 The Crescent
Colchester Business Park
Colchester
Essex
CO4 9YQ
Bankers
HSBC Bank Plc
47 Station Road
Clacton
Essex
CO15 1RR
HART & WILCOX LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 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 - 24
HART & WILCOX LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

Business Review

Hart & Wilcox Ltd is entering its first year as a medium-sized company specialising in Design, Events & Exhibitions. Established in 1989 and taken over through MBO in 2015, the company has grown steadily, despite global economic uncertainties and global pandemics.

The Directors consider the continued results for the company to be satisfactory, with turnover steadily increasing and net profit levels being on target.

In terms of uncertainties facing the company, the Directors and Senior Management Team take active steps in looking to minimise the risk. Areas of uncertainty and risk that are actively being monitored are;

Market Competition - Increased competition from competitor agencies, located closer to where our work takes place.

Economic Downturns & Increased Inflation - Economic instability and continued rising costs, place us at a disadvantage in terms of expenses and direct costs.

Client Dependency - A significant portion of revenue is derived from a few key clients. Loss of any major client can adversely affect financial stability.

However, on all 3 of these fronts, Hart & Wilcox Ltd and its staff are committed to facing these challenges and are placing extra emphasis on looking at ways to reduce costs & expenses, whilst retaining a high-level of customer service that differentiates us from the competition.

It is because of the above that Hart & Wilcox Ltd remains in a strong and healthy cash position and early forecasts indicate that we will be able to continue to successfully operate at the current level. Although there is a dependency on a few clients, further resilience is provided by established relationships with a number of key personnel and suppliers to mitigate risk where possible.

The company remains in a healthy cash position and forecasts indicate that it will be able to continue to meet its liabilities as they fall due. Further resilience is provided by the established relationships already in place with a number of customers and suppliers, which helps to both spread and mitigate some of the trading risks the company may face. However, the directors acknowledge the inherent ongoing uncertainties faced by the company, in line with those faced by the wider economy as a whole.

Going Concern & Financial Stability

Hart & Wilcox Ltd is considered a going concern due to its robust financial health and continued commitment to operational efficiency. Areas of the company that are actively being monitored for going concern and financial stability are;

Financial Reserves - Hart & Wilcox Ltd has been committed to holding a readily accessible strong cash position since the MBO in 2015. This is reviewed weekly by all Directors and the finance department.

Cash Flow - Both Aged Debtors & Creditors are also reviewed weekly to ensure the timely payment from clients.

Strategic Planning - Proactive strategic planning takes place on a monthly/quarterly basis to look at potential opportunities, whether that be work, equipment and staff/training.

Given these factors, along with several others including, low debt level, consistent profit margins, commitment to development and strong management team. Hart & Wilcox Ltd is well-positioned to continue its operations and meet its liabilities in the foreseeable future. The Directors are fully committed to the company’s long-term sustainability and financial stability.

HART & WILCOX LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Key Performance Indicators

Hart & Wilcox Ltd recognises the following financial and non-financial indicators that are driving business success. Areas of company performance that are actively being monitored are;

Turnover -The company’s turnover has continued to steadily increase since the Pandemic. The Directors and Management team meet monthly to ensure we are on target to reach the revenue targets for the year. The turnover of the last 3 financial years is as follows;

Y/E 2022 - £7.9m (reduced operation Pandemic)

Y/E 2023 - £13.4m

Y/E 2024 - £14.2m

Profit - Both Gross and Net profit margins remain on target within the parameters set. Despite external economic factors and direct cost increases, staff have been diligent in retaining the margins expected of the company. The gross profit margin for the last 3 financial years is as follows;

Y/E 2022 - £3.8m - 48%

Y/E 2023 - £6.0m - 45%

Y/E 2024 - £6.4m - 45%

Client Retention - Hart & Wilcox Ltd client retention rate remains strong, with no Tier 1 client leaving business. The company has also seen increased spend from 3 Tier 1 clients, through work diversification and additional contacts within the client set-up. As well as Tier 1 clients, staff have been tasked with building the pool of Tier 2 & 3 clients from the local and surrounding area. Across the board focus has been placed on building strong relationships and understanding client needs, which has successfully fostered loyalty and repeat business, which are critical for the companies long-term stability and growth.

Employee Retention - Alongside Clients, Staff/Employees remain a key focus of Hart & Wilcox Ltd. Through the creation of a supportive and engaging work environment and by investing in professional development, the company has been able to build a positive company culture, which has successfully reduced employee turnover. Retaining top talent is seen as a key target for the company.

Overall Annual Account Analysis

Full details and figures for Hart & Wilcox Ltd can be found within the completed Profit & Loss Account. However, a high-level summary of the Account Analysis can be found here;

Revenue - Has remained strong and is projected to continue to stay steady for the forthcoming year.

Operating Expenses - Have increased due to investment in new technology, property and staff training, but are being well-managed and within budget.

Net Profit - Has not increased concurrently with revenue, but this is expected due to increased costs incurred to deliver the additional work.

Balance Sheet - Continued to invest to build a strong asset base with minimal liabilities, ensuring financial stability.

Future Developments

In order to continue to operate successfully Hart & Wilcox Ltd recognises that it cannot stand still. It recognises the following areas (but not limited to) as need for continual improvement;

Geographic Expansion - Due to the increased levels in overseas work, the company is currently exploring opportunities to expand operations into other countries, in order to meet local requirements and meet demand.

Premise/Office Expansion - To support additional levels of work, investment has been made into the company offices/premises to ensure there is adequate space and working environments for existing and new employees.

Technology Investment - To help maintain profit margins, strategic capital purchases are continually reviewed to ensure the right tech is purchased at the right time.

Partnerships - Where possible Hart & Wilcox Ltd looks to continually build its pool of local partners to help deliver projects to the company's standard.

Conclusions

Hart & Wilcox Ltd is well-positioned for sustainable growth, backed by strong financials and a clear strategic vision. By mitigating risks and capitalizing on opportunities, we are confident in our ability to deliver value to our clients and stakeholders.

HART & WILCOX LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

On behalf of the board

Mr S P Hill
Director
26 September 2024
HART & WILCOX LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

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

Principal activities

The principal activity of the company continued to be that of the arrangement of conference, exhibitions and other media promotions.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £302,606. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr S P Hill
Mr M J Robinson
Mr R D Carvey
Mr S R Brooks
Mr D M Brook
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr S P Hill
Director
26 September 2024
HART & WILCOX LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -

The directors are responsible 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:

 

 

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.

HART & WILCOX LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HART & WILCOX LIMITED
- 6 -
Opinion

We have audited the financial statements of Hart & Wilcox Limited (the 'company') for the year ended 31 March 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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:

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's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

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

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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.

 

Other matters – prior year financial statements unaudited

The company was not required to have a statutory audit for the year ended 31 March 2023 as it was entitled to exemption by the provision of the Companies Act 2006 relating to the audit of financial statements by virtue of Section 477 and no member or members requested an audit pursuant to Section 476 of the Act. Accordingly, the corresponding figures for the year ended 31 March 2023 are unaudited.

HART & WILCOX LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HART & WILCOX LIMITED
- 7 -

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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.

Auditor's 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.

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, through discussion with the directors (as required by auditing standards), inspection of the company's regulatory and legal correspondence and discussed with the directors the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

HART & WILCOX LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HART & WILCOX LIMITED
- 8 -

Secondly, the company is subject to many other laws and regulations where the consequences of noncompliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: corporate governance, consumer contracts, health and safety, anti-bribery and corruption, human rights and employment law and GDPR. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance as to whether the company complies with such regulations; enquiries of management and those charged with governance concerning any actual or potential litigation or claims, inspection of any relevant legal documentation, review of board minutes, testing the appropriateness of journal entries and the performance of analytical review to identify any unexpected movements in account balances which may be indicative of fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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

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.

Timothy O'Connor
Senior Statutory Auditor
For and on behalf of Sumer Auditco Limited
26 September 2024
820 The Crescent
Colchester Business Park
Colchester
Essex
CO4 9YQ
HART & WILCOX LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
14,237,123
13,435,351
Cost of sales
(7,793,137)
(7,393,783)
Gross profit
6,443,986
6,041,568
Administrative expenses
(3,639,486)
(5,804,719)
Other operating income
14,515
8,135
Operating profit
4
2,819,015
244,984
Interest receivable and similar income
7
29,646
4,167
Profit before taxation
2,848,661
249,151
Tax on profit
8
(731,599)
(52,649)
Profit for the financial year
2,117,062
196,502

The profit and loss account has been prepared on the basis that all operations are continuing operations.

HART & WILCOX LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
2024
2023
£
£
Profit for the year
2,117,062
196,502
Other comprehensive income
-
-
Total comprehensive income for the year
2,117,062
196,502
HART & WILCOX LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
466,628
340,929
Current assets
Stocks
11
297,695
351,115
Debtors
12
4,148,253
3,507,597
Cash at bank and in hand
1,754,292
1,979,590
6,200,240
5,838,302
Creditors: amounts falling due within one year
13
(2,995,235)
(4,332,870)
Net current assets
3,205,005
1,505,432
Total assets less current liabilities
3,671,633
1,846,361
Provisions for liabilities
Deferred tax liability
14
81,727
70,911
(81,727)
(70,911)
Net assets
3,589,906
1,775,450
Capital and reserves
Called up share capital
16
100
100
Profit and loss reserves
3,589,806
1,775,350
Total equity
3,589,906
1,775,450

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 26 September 2024 and are signed on its behalf by:
Mr S P Hill
Mr S R Brooks
Director
Director
Company registration number 02426790 (England and Wales)
HART & WILCOX LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
100
1,876,028
1,876,128
Year ended 31 March 2023:
Profit and total comprehensive income
-
196,502
196,502
Dividends
9
-
(297,180)
(297,180)
Balance at 31 March 2023
100
1,775,350
1,775,450
Year ended 31 March 2024:
Profit and total comprehensive income
-
2,117,062
2,117,062
Dividends
9
-
(302,606)
(302,606)
Balance at 31 March 2024
100
3,589,806
3,589,906
HART & WILCOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
1
Accounting policies
Company information

Hart & Wilcox Limited is a private company limited by shares incorporated in England and Wales. The registered office is Concept House, Tendring Park, Colchester Road, Tendring, Essex, CO16 9AA.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Turnover from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

HART & WILCOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
15 Years Straight Line
Plant and equipment
15% Straight Line
Computers
20% Straight Line
Motor vehicles
25% Straight Line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

HART & WILCOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

HART & WILCOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

HART & WILCOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

HART & WILCOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
1.15

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Main activity
14,237,123
13,435,351
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
2,164,640
3,569,597
EU
3,123,053
2,176,260
Rest of World
8,949,430
7,689,494
14,237,123
13,435,351
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
60,089
(18,788)
Fees payable to the company's auditor for the audit of the company's financial statements
13,500
-
0
Depreciation of owned tangible fixed assets
118,662
69,760
Loss on disposal of tangible fixed assets
31,168
2,148
Operating lease charges
245,270
248,327
HART & WILCOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Management
17
12
Administration
5
4
Design
17
14
Production
10
8
Accounts
8
6
Total
57
44

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,042,462
1,960,785
Social security costs
214,217
209,864
Pension costs
98,838
164,346
2,355,517
2,334,995
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
65,244
65,371
Company pension contributions to defined contribution schemes
50,000
128,120
115,244
193,491

During the year retirement benefits were accruing to 5 directors (2023 - 5) in respect of defined contribution pension schemes.

7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
29,483
4,167
Other interest income
163
-
0
Total income
29,646
4,167
HART & WILCOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
720,783
30,854
Adjustments in respect of prior periods
-
0
12
Total current tax
720,783
30,866
Deferred tax
Origination and reversal of timing differences
10,816
21,783
Total tax charge
731,599
52,649

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
2,848,661
249,151
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
712,165
47,339
Tax effect of expenses that are not deductible in determining taxable profit
51,747
20,350
Under/(over) provided in prior years
-
0
12
Net book value of qualifying assets
(43,473)
(36,541)
Tax written down values
344
(294)
Deferred tax charge
10,816
21,783
Taxation charge for the year
731,599
52,649
9
Dividends
2024
2023
£
£
Interim paid
302,606
297,180
HART & WILCOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
10
Tangible fixed assets
Leasehold improvements
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
75,586
468,026
168,697
74,387
786,696
Additions
127,949
45,225
106,355
-
0
279,529
Disposals
-
0
(219,365)
-
0
-
0
(219,365)
At 31 March 2024
203,535
293,886
275,052
74,387
846,860
Depreciation and impairment
At 1 April 2023
4,022
325,508
79,951
36,286
445,767
Depreciation charged in the year
8,684
57,210
39,059
13,709
118,662
Eliminated in respect of disposals
-
0
(184,197)
-
0
-
0
(184,197)
At 31 March 2024
12,706
198,521
119,010
49,995
380,232
Carrying amount
At 31 March 2024
190,829
95,365
156,042
24,392
466,628
At 31 March 2023
71,564
142,518
88,746
38,101
340,929
11
Stocks
2024
2023
£
£
Work in progress
297,695
351,115
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,719,571
2,734,673
Amounts owed by group undertakings
974,005
356,490
Other debtors
2,450
5,267
Prepayments and accrued income
452,227
411,167
4,148,253
3,507,597
HART & WILCOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
13
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
367,413
384,125
Amounts owed to group undertakings
-
0
1,857,494
Corporation tax
720,768
30,854
Other taxation and social security
470,511
659,867
Other creditors
447,165
65,685
Accruals and deferred income
989,378
1,334,845
2,995,235
4,332,870
14
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
81,727
70,911
2024
Movements in the year:
£
Liability at 1 April 2023
70,911
Charge to profit or loss
10,816
Liability at 31 March 2024
81,727
15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
98,838
164,346

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £98,838 (2023 - £164,346).

HART & WILCOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
100
100
100
100
17
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Financial assets measured at amortised cost
3,696,026
3,096,430
Carrying amount of financial liabilities
Financial liabilities measured at amortised cost
(1,803,956)
(3,642,149)

Financial assets measured at amortised cost comprise of trade debtors, amounts owed from related parties and other debtors.

 

Financial liabilities measured at amortised cost comprise of trade creditors, amounts owed to related parties, other creditors and accruals and deferred income.

18
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
223,177
241,385
Between two and five years
634,479
328,676
In over five years
443,782
-
0
1,301,438
570,061
19
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
807,364
788,331
Other information

The company is a wholly owned subsidiary of Experiential Ltd and has taken advantage of the exemption contained in Section 1A of Financial Reporting Standard 102 and has therefore not disclosed transactions or balances with entities which form part of that group.

HART & WILCOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
20
Ultimate controlling party

The parent company is Experiential Ltd, with a registered office of 820 The Crescent, Colchester Business Park, Colchester, Essex, CO4 9YQ.

 

The results of the company are consolidated within Experiential Ltd. A copy of these financial statements is available from Companies House, Crown Way, Cardiff, CF14 3UZ.

21
Directors' transactions

The following amounts were due from the directors to the company on an interest free, repayable on demand basis:-

Description
Opening balance
Amounts repaid
Closing balance
£
£
£
Directors
4,567
(4,567)
-
4,567
(4,567)
-
0
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