Company registration number 13609441 (England and Wales)
SAMUEL HODGE GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
SAMUEL HODGE GROUP LIMITED
COMPANY INFORMATION
Directors
N D Crisford
S L Crisford
K L Crisford
H J Fitzpatrick
Company number
13609441
Registered office
Apex Office
Water Vole Way
Doncaster
South Yorkshire
United Kingdom
DN4 5JP
Auditor
BHP LLP
2 Rutland Park
Sheffield
S10 2PD
Bankers
Barclays Bank  Plc
2-12 Pinstone Street
Sheffield
S1 2HN
SAMUEL HODGE GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 35
SAMUEL HODGE GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

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

Review of the business

 

RLBS Limited

A very productive year with continuing focus on all aspects of refurbishment and remanufacture against the backdrop of an industry wide environmental push for ongoing improvement and waste reduction and greater recycling.

 

New product launches have contributed to the growing turnover and are now established as “industry standards” and expected to increase turnover and profitability in the coming months and years.

 

Ongoing investment in the management team and all areas is producing greater controls and KPI achievement leading to improving efficiencies and overhead reduction. Raw material costs have returned to more a stable condition and enabling more accurate quoting and cost controls.

 

Teknequip Limited and Teknequip Sp Z.oo

A decent year with the aerospace sector remaining buoyant and energy prices reducing from 2023 high point has help support a fair return. Our major customers continue to support with new projects and increasing volumes which bodes well for the coming year. It is anticipated that a couple of high-profile projects are awarded 1st quarter 2024/2025.

 

The factory is Poland has diversified further into fabrication areas on top of its historic machining biased activities. We are slowly developing a reputation for fabrication of pressure vessels and tanks for both import back into UK and European markets.

 

Victor Marine Limited

An improving performance in 4th quarter 2023 has continued into 2024 with an increased forward order book into 2025 and beyond. More focus on bespoke engineered projects has increased profitability but we remain committed to standard products and the support through spares and servicing of an increasing installed base.

 

A new management team is now in place and is proving to be dynamic and forward thinking as we explore new markets and opportunities. With exports from UK making up 90% of our turnover currency stability and geopolitical factors out of our control remain key to future progress.

 

Principal risks and uncertainties

Given the nature of the group's activities, the directors regard the principal risks that the group faces as the technical operational efficiency of its key product ranges, the foreign currency exposure from the overseas markets in which the group operates and the continued access to a skilled and loyal workforce to help deliver the group's products and services. To mitigate these risks the directors continue to invest in maintaining and improving technical and operational efficiency of its products and investing in the group's staff and where appropriate hedge its foreign currency exposure.

Key performance indicators

The principal key performance indicators used by the directors to monitor the group include order pipeline, gross and operational profit percentages and debtor and creditor days. The group operates in a number of difficult market places and the directors are satisfied with the current level of these key performance indicators.

 

Gross profit margin 37.9% (2023: 34%)

SAMUEL HODGE GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

On behalf of the board

N D Crisford
Director
13 October 2024
SAMUEL HODGE GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

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

Principal activities

The main activities of the subsidiary undertakings in the group are shown in note 14.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £Nil (2023: £Nil). 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:

N D Crisford
S L Crisford
K L Crisford
H J Fitzpatrick
Auditor

The auditor, BHP LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 auditor of the company 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 auditor of the company is aware of that information.

SAMUEL HODGE GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
On behalf of the board
N D Crisford
Director
13 October 2024
SAMUEL HODGE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SAMUEL HODGE GROUP LIMITED
- 5 -
Opinion

We have audited the financial statements of Samuel Hodge Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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 group and parent 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 group's and 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.

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.

Opinions on other matters prescribed by the Companies Act 2006

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

SAMUEL HODGE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SAMUEL HODGE GROUP LIMITED
- 6 -
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 their 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 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 parent 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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

SAMUEL HODGE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SAMUEL HODGE GROUP LIMITED
- 7 -

We assessed the susceptibility of the groups financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

 

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.

Terri Pierpoint (Senior Statutory Auditor)
For and on behalf of BHP LLP
14 October 2024
Chartered Accountants
Statutory Auditor
2 Rutland Park
Sheffield
S10 2PD
SAMUEL HODGE GROUP LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
14,390,502
12,939,368
Cost of sales
(8,931,966)
(8,539,131)
Gross profit
5,458,536
4,400,237
Distribution costs
(119,971)
(127,382)
Administrative expenses
(4,453,825)
(3,735,848)
Other operating income
412,910
299,063
Operating profit
4
1,297,650
836,070
Interest receivable and similar income
8
305,000
164,000
Interest payable and similar expenses
9
(232,183)
(141,939)
Profit before taxation
1,370,467
858,131
Tax on profit
10
(326,146)
(169,076)
Profit for the financial year
1,044,321
689,055
Profit for the financial year is all attributable to the owners of the parent company.
SAMUEL HODGE GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
Notes
£
£
Profit for the year
1,044,321
689,055
Other comprehensive income
Actuarial (loss)/gain on defined benefit pension schemes
24
(1,005,000)
2,342,333
Currency translation differences
20,184
12,743
Tax relating to other comprehensive income
251,250
(585,583)
Other comprehensive income for the year
(733,566)
1,769,493
Total comprehensive income for the year
310,755
2,458,548
Total comprehensive income for the year is all attributable to the owners of the parent company.
SAMUEL HODGE GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
4,060,192
4,089,933
Investment property
12
3,975,000
3,975,000
8,035,192
8,064,933
Current assets
Stocks
15
4,281,078
3,896,450
Debtors
16
2,659,893
2,945,016
6,940,971
6,841,466
Creditors: amounts falling due within one year
17
(3,549,834)
(3,701,309)
Net current assets
3,391,137
3,140,157
Total assets less current liabilities
11,426,329
11,205,090
Creditors: amounts falling due after more than one year
18
(5,132,373)
(5,865,089)
Provisions for liabilities
Deferred tax liability
21
590,600
584,900
(590,600)
(584,900)
Net assets excluding pension surplus
5,703,356
4,755,101
Defined benefit pension surplus
22
4,130,250
4,767,750
Net assets
9,833,606
9,522,851
Capital and reserves
Called up share capital
23
500,000
500,000
Revaluation reserve
1,707,664
1,707,664
Capital redemption reserve
500,000
500,000
Other reserves
1,000,000
1,000,000
Profit and loss reserves
6,125,942
5,815,187
Total equity
9,833,606
9,522,851
The financial statements were approved by the board of directors and authorised for issue on 13 October 2024 and are signed on its behalf by:
13 October 2024
N D Crisford
Director
Company registration number 13609441 (England and Wales)
SAMUEL HODGE GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
13
1,000,000
1,000,000
Capital and reserves
Called up share capital
23
500,000
500,000
Capital redemption reserve
500,000
500,000
Total equity
1,000,000
1,000,000

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £0 (2023 - £0 profit).

The financial statements were approved by the board of directors and authorised for issue on 13 October 2024 and are signed on its behalf by:
13 October 2024
N D Crisford
Director
Company registration number 13609441 (England and Wales)
SAMUEL HODGE GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
Share capital
Revaluation reserve
Capital redemption reserve
Merger reserve
Profit and loss reserves
Total
£
£
£
£
£
£
Balance at 1 April 2022
500,000
1,707,664
500,000
1,000,000
3,356,639
7,064,303
Year ended 31 March 2023:
Profit for the year
-
-
-
-
689,055
689,055
Other comprehensive income:
Actuarial gains on defined benefit plans
-
-
-
-
2,342,333
2,342,333
Currency translation differences
-
-
-
-
12,743
12,743
Tax relating to other comprehensive income
-
-
0
-
-
(585,583)
(585,583)
Total comprehensive income
-
-
-
-
2,458,548
2,458,548
Balance at 31 March 2023
500,000
1,707,664
500,000
1,000,000
5,815,187
9,522,851
Year ended 31 March 2024:
Profit for the year
-
-
-
-
1,044,321
1,044,321
Other comprehensive income:
Actuarial gains on defined benefit plans
-
-
-
-
(1,005,000)
(1,005,000)
Currency translation differences
-
-
-
-
20,184
20,184
Tax relating to other comprehensive income
-
-
0
-
-
251,250
251,250
Total comprehensive income
-
-
-
-
310,755
310,755
Balance at 31 March 2024
500,000
1,707,664
500,000
1,000,000
6,125,942
9,833,606
SAMUEL HODGE GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
Share capital
Capital redemption reserve
Total
£
£
£
Balance at 1 April 2022
500,000
500,000
1,000,000
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
-
0
Balance at 31 March 2023
500,000
500,000
1,000,000
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
-
-
0
Balance at 31 March 2024
500,000
500,000
1,000,000
SAMUEL HODGE GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
1,757,518
784,102
Interest paid
(232,183)
(141,939)
Income taxes paid
(100,176)
(133,786)
Net cash inflow from operating activities
1,425,159
508,377
Investing activities
Purchase of tangible fixed assets
(112,184)
(228,826)
Proceeds from disposal of tangible fixed assets
75,215
14,600
Net cash used in investing activities
(36,969)
(214,226)
Financing activities
Repayment of directors loans
(275,388)
(794,000)
Proceeds from borrowings
-
1,000,000
Repayment of borrowings
(107,511)
(769,765)
Repayment of bank loans
(291,272)
(12,445)
Movement in finance leases obligations
(188,808)
(105,971)
Net cash used in financing activities
(862,979)
(682,181)
Net increase/(decrease) in cash and cash equivalents
525,211
(388,030)
Cash and cash equivalents at beginning of year
(1,317,388)
(916,766)
Effect of foreign exchange rates
(30,085)
(12,592)
Cash and cash equivalents at end of year
(822,262)
(1,317,388)
Relating to:
Bank overdrafts included in creditors payable within one year
(822,262)
(1,317,388)
SAMUEL HODGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
1
Accounting policies
Company information

Samuel Hodge Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Apex Office, Water Vole Way, Doncaster, South Yorkshire, DN4 5JP.

 

The group consists of Samuel Hodge Group Limited and all of its subsidiaries.

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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Prior period error

Comparative amounts in relation to the group statement of cashflows, wages and salaries (Note 6), creditors due over one year (Note19) and loans and overdrafts (Note 20) have been restated within the relevant notes to reflect their accurate balances. This has no impact on the profit or the reserves.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Samuel Hodge Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 March 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

SAMUEL HODGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
1.5
Turnover

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

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Income receivable from rental contracts are charged to the profit and loss account in the period that they fall due.

1.6
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.7
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:

Freehold land and buildings
Not depreciated
Plant and equipment
Between 15% and 33% straight line
Fixtures and fittings
Between 15% and 50% straight line
Motor vehicles
25% straight line

Following the revaluation depreciation is not provided on the group's freehold property. It is the group's policy to maintain the property in good repair and, as a consequence, the value of the property is not being reduced significantly by the passage of time. Hence in the opinion of the Directors any element of depreciation would be immaterial.

 

In line with FRS102 no provision for depreciation is made for land owned by the group or assets in the course of construction.

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 recognised in the profit and loss account.

1.8
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

 

SAMUEL HODGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.10
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

1.11
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.

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.

1.12
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.

SAMUEL HODGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
1.13
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

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 group 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.

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 group after deducting all of its liabilities.

SAMUEL HODGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group 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 group.

1.15
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 group’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 if, and only if, there is 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.

1.16
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.

SAMUEL HODGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 20 -
1.17
Retirement benefits

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

The group operates a defined benefit scheme of which most group companies are members. Further information on the scheme is given in note 22.

 

Accounting for defined benefit pensions is in accordance with FRS 102. This requires that the operating and financing costs of the group's defined benefit scheme are recognised separately in the profit and loss account; service costs are systematically spread over service lives of employees, financing costs are recognised in the periods in which they arise. Variations from expected costs, arising from experience of the scheme or changes in the actuarial assumptions, are recognised immediately in the statement of other comprehensive income. The difference between the fair value of assets and the present value of accrued pension liabilities estimated using the projected unit credit method, is shown as a liability in the balance sheet net of deferred tax.

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.

 

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.

1.18
Leases

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

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.19
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.

SAMUEL HODGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Depreciation, useful lives and residual values of property, plant and equipment

The company estimates the useful lives and residual values of property, plant and equipment in order to calculate depreciation charges. Changes in these estimates could result in changes being required to annual depreciation charges in the statement of comprehensive income and the carrying values of property, plant and equipment.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Defined Benefit pension scheme

The present value of the Defined Benefit pension scheme surplus depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost or income for pensions include the discount rate which is an estimate. See note 22 for more details.

Investment property valuation

The fair value of the investment property has been arrived at on the basis of a valuation carried out last year by CPP Commercial Property Partners Chartered Surveyors, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of precision machined components
4,590,661
4,004,909
Repair and manufacture of dispensing equipment
7,145,935
7,089,429
Sale of oily water seperators, tank cleaning machines and fans
2,653,906
1,845,030
14,390,502
12,939,368
SAMUEL HODGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
3
Turnover and other revenue
(Continued)
- 22 -
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
8,534,582
8,800,828
Middle East
84,970
100,630
Far East
774,645
396,088
North America
22,525
45,415
European Union and Eastern Europe
4,534,837
3,283,618
Rest of World
438,943
312,789
14,390,502
12,939,368
2024
2023
£
£
Other revenue
Interest income
305,000
164,000
Commissions received
15,241
8,758
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(40,059)
(20,502)
Research and development costs
874
754
Depreciation of owned tangible fixed assets
274,767
273,124
Depreciation of tangible fixed assets held under finance leases
123,256
86,412
Profit on disposal of tangible fixed assets
(8,000)
(14,600)
Operating lease charges
57,600
55,800
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
7,000
7,000
Audit of the financial statements of the company's subsidiaries
48,500
45,326
55,500
52,326
SAMUEL HODGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Administration
28
27
-
-
Production
125
116
-
-
Sales
5
5
-
-
Total
158
148
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
4,482,366
4,064,537
-
0
-
0
Social security costs
468,171
427,099
-
-
Pension costs
175,947
170,614
-
0
-
0
5,126,484
4,662,250
-
0
-
0
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
141,037
132,437
Company pension contributions to defined contribution schemes
30,457
9,793
171,494
142,230
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on the net defined benefit asset
305,000
164,000
SAMUEL HODGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
158,589
84,239
Interest on finance leases and hire purchase contracts
32,344
18,093
Other interest
41,250
39,607
Total finance costs
232,183
141,939
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
281,696
72,376
Deferred tax
Origination and reversal of timing differences
5,700
76,700
Decrease in pension provision
38,750
20,000
Total deferred tax
44,450
96,700
Total tax charge
326,146
169,076

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
1,370,467
858,131
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
342,617
163,045
Tax effect of expenses that are not deductible in determining taxable profit
2,002
1,884
Permanent capital allowances in excess of depreciation
-
0
(23,887)
Effect of overseas tax rates
(19,134)
6,320
Effect of changes in deferred tax rates
-
0
23,682
Movement in deferred tax not recognised
56
(1,968)
Other tax adjustments
605
-
0
Taxation charge
326,146
169,076
SAMUEL HODGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
10
Taxation
(Continued)
- 25 -

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2024
2023
£
£
Deferred tax arising on:
Actuarial differences recognised as other comprehensive income
(251,250)
585,583
11
Tangible fixed assets
Group
Freehold land and buildings
Assets under construction
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 April 2023
3,097,672
147,159
5,277,976
122,610
32,769
8,678,186
Additions
3,638
-
0
380,563
1,027
-
0
385,228
Disposals
(67,586)
-
0
(54,520)
-
0
-
0
(122,106)
Transfers
-
0
(147,159)
139,813
7,346
-
0
-
0
Exchange adjustments
33,524
-
0
96,137
-
0
-
0
129,661
At 31 March 2024
3,067,248
-
0
5,839,969
130,983
32,769
9,070,969
Depreciation and impairment
At 1 April 2023
97,537
-
0
4,351,838
116,683
22,195
4,588,253
Depreciation charged in the year
22,771
-
0
363,871
3,300
8,081
398,023
Eliminated in respect of disposals
(558)
-
0
(54,333)
-
0
-
0
(54,891)
Exchange adjustments
9,449
-
0
69,943
-
0
-
0
79,392
At 31 March 2024
129,199
-
0
4,731,319
119,983
30,276
5,010,777
Carrying amount
At 31 March 2024
2,938,049
-
0
1,108,650
11,000
2,493
4,060,192
At 31 March 2023
3,000,135
147,159
926,138
5,927
10,574
4,089,933
The company had no tangible fixed assets at 31 March 2024 or 31 March 2023.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
701,569
565,599
-
0
-
0
SAMUEL HODGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
11
Tangible fixed assets
(Continued)
- 26 -

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

2024
2023
£
£
Group
Cost
3,368,476
3,368,476
Accumulated depreciation
(117,741)
(96,141)
Carrying value
3,250,735
3,272,335
12
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 April 2023 and 31 March 2024
3,975,000
-

The fair value of the investment property has been arrived at on the basis of a valuation carried out last year by CPP Commercial Property Partners Chartered Surveyors, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

 

The director has reviewed the investment property valuation as at 31 March 2024 and determined that there has been no material change to the market value of the property in the current year.

 

If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Cost
2,368,365
2,368,365
-
-
Accumulated depreciation
(508,566)
(508,566)
-
-
Carrying amount
1,859,799
1,859,799
-
-
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
1,000,000
1,000,000
SAMUEL HODGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
13
Fixed asset investments
(Continued)
- 27 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023 and 31 March 2024
1,000,000
Carrying amount
At 31 March 2024
1,000,000
At 31 March 2023
1,000,000
14
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
RLBS Limited
Apex Office, Water Vole Way, Doncaster, DN4 5JP
Gas pressure valves and dispensing equipment
Ordinary
100.00
Samuel Hodge Limited
Same as above
Management company
Ordinary
100.00
Samuel Hodge Holdings Limited
Same as above
Holding company
Ordinary
100.00
Teknequip Limited
Same as above
Precision engineers
Ordinary
100.00
Victor Marine Limited
Same as above
Oily water separators, marine tank cleaning equipment and gas freeing tanks
Ordinary
100.00
Hodge Seperators Limited
Same as above
Dormant company
Ordinary
100.00
Victor Pyrate Limited
Same as above
Dormant company
Ordinary
100.00
Teknequip Kalisz
Paderewskiego 34, 62-800 Kalisz, Poland
Precision engineers
Ordinary
100.00
15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Work in progress
86,115
83,861
-
-
Finished goods and goods for resale
4,194,963
3,812,589
-
0
-
0
4,281,078
3,896,450
-
-
SAMUEL HODGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 28 -
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,481,962
2,760,267
-
0
-
0
Other debtors
116,309
118,972
-
0
-
0
Prepayments and accrued income
38,235
46,333
-
0
-
0
2,636,506
2,925,572
-
-
Amounts falling due after more than one year:
Trade debtors
23,387
19,444
-
0
-
0
Total debtors
2,659,893
2,945,016
-
-
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
915,927
1,391,071
-
0
-
0
Obligations under finance leases
20
188,541
158,231
-
0
-
0
Other borrowings
19
280,000
187,511
-
0
-
0
Trade creditors
990,922
1,097,718
-
0
-
0
Corporation tax payable
238,033
56,513
-
0
-
0
Other taxation and social security
382,653
340,331
-
-
Other creditors
290,461
286,468
-
0
-
0
Accruals and deferred income
263,297
183,466
-
0
-
0
3,549,834
3,701,309
-
0
-
0

Bank loans and overdrafts, see note 19 for security details.

18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
602,618
913,872
-
0
-
0
Obligations under finance leases
20
480,755
426,829
-
0
-
0
Other borrowings
19
4,049,000
4,524,388
-
0
-
0
5,132,373
5,865,089
-
-

Bank loans and overdrafts, see note 19 for security details.

SAMUEL HODGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 29 -
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
696,283
987,555
-
0
-
0
Bank overdrafts
822,262
1,317,388
-
0
-
0
Other loans
4,329,000
4,711,899
-
0
-
0
5,847,545
7,016,842
-
-
Payable within one year
1,195,927
1,578,582
-
0
-
0
Payable after one year
4,651,618
5,438,260
-
0
-
0

The bank loan and overdraft are secured by way of legal charges over certain properties held by the group.

 

20
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
188,541
158,231
-
0
-
0
In two to five years
480,755
426,829
-
0
-
0
669,296
585,060
-
-

Finance lease obligations are secured on the assets to which they relate.

21
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
109,600
103,900
Revaluations
481,000
481,000
590,600
584,900
The company has no deferred tax assets or liabilities.
SAMUEL HODGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
21
Deferred taxation
(Continued)
- 30 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 April 2023
584,900
-
Charge to profit or loss
5,700
-
Liability at 31 March 2024
590,600
-

The deferred tax liability set out above is expected to reverse and relates to accelerated capital allowances that are expected to mature within the same period.

22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
175,947
170,614

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

Defined benefit schemes

The group operates a funded pension scheme of the defined benefit type, providing retirement benefits based on final salary. The scheme assets are held in a separately administered fund managed by a board of trustees. Valuations are carried out every three years by independent actuaries, and the contribution rate is decided on the basis of their recommendations.

 

At 31 March 2022, the date of the last full actuarial valuation, the market value of the scheme's assets, including money purchase assets, was £34,308,000, and the level of funding on an actuarial basis was 123%. The valuation assumed a return on investments of 9.0% per annum and increase in pension of 3.7% annually.

 

With effect from 31 March 2016, the scheme closed to future benefit accrual and all active members became deferred members of the scheme.

 

The valuation used for FRS 102 disclosures has been based on a full assessment of the liabilities of the scheme as at 31 March 2022. The present value of the defined benefit obligation, the related current service cost and any past service costs were measured using the projected unit credit method.

 

The principal assumptions used to calculate the liabilities under FRS 102 are set out below:

 

2024
2023
Key assumptions
%
%
Discount rate
4.85
4.85
Expected rate of increase of pensions in payment
3.05
3.15
RPI inflation
3.30
3.30
CPI inflation
2.40
2.40
SAMUEL HODGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
22
Retirement benefit schemes
(Continued)
- 31 -
Mortality assumptions
2024
2023

Assumed life expectations on retirement at age 65:

Years
Years
Retiring today
- Males
85.4
85.9
- Females
88.2
88.7
Retiring in 20 years
- Males
86.7
87.2
- Females
89.7
90.1

In addition to the assumptions noted above, the assumptions are that a 60 year old male executive pensioner is assumed to live to 87.3 (2023: 87.9) and a male executive pensioner reaching 60 in 20 years time is assumed to live to 88.9 (2023: 89.4).

The amounts included in the balance sheet arising from obligations in respect of defined benefit plans are as follows:

2024
2023
Group
£
£
Present value of defined benefit obligations
19,115,000
19,565,000
Fair value of plan assets
(24,622,000)
(25,922,000)
Surplus in scheme
(5,507,000)
(6,357,000)
Deferred taxation balance
1,376,750
1,589,250
Total asset recognised
(4,130,250)
(4,767,750)
The company had no post employment benefits at 31 March 2024 or 1 April 2023.

In the year ended 31 March 2022 the pension scheme surplus recognised by the group in the consolidated financial statements was restricted to two thirds of the total surplus. Following an amendment to the trust deed in the year to 31 March 2023 the group was in a position to recognise the full surplus, hence the prior year reversal of the restriction.

Group
2024
2023

Amounts recognised in the profit and loss account

£
£
Net interest on net defined benefit liability/(asset)
(305,000)
(164,000)
SAMUEL HODGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
22
Retirement benefit schemes
(Continued)
- 32 -
Group
2024
2023

Amounts taken to other comprehensive income

£
£
Actual return on scheme assets
(58,000)
7,060,000
Less: calculated interest element
1,225,000
942,000
Return on scheme assets excluding interest income
1,167,000
8,002,000
Actuarial changes related to obligations
(162,000)
(8,377,000)
Effect of changes in the amount of surplus that is not recoverable
-
(1,967,333)
Total costs/(income)
1,005,000
(2,342,333)
Group
2024

Movements in the present value of defined benefit obligations

£
Liabilities at 1 April 2023
19,565,000
Benefits paid
(1,208,000)
Actuarial gains and losses
(162,000)
Interest cost
920,000
At 31 March 2024
19,115,000
Group
2024

The defined benefit obligations arise from plans funded as follows:

£
Wholly unfunded obligations
-
Wholly or partly funded obligations
19,115,000
19,115,000
Group
2024

Movements in the fair value of plan assets

£
Fair value of assets at 1 April 2023
25,922,000
Interest income
1,225,000
Return on plan assets (excluding amounts included in net interest)
(1,167,000)
Benefits paid
(1,208,000)
Other
(150,000)
At 31 March 2024
24,622,000

The actual return on plan assets was £58,000 (2023: £7,060,000).

SAMUEL HODGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
22
Retirement benefit schemes
(Continued)
- 33 -

Fair value of plan assets at the reporting period end

Group
2024
2023
£
£
Debt instruments
24,371,000
25,390,000
Cash
251,000
532,000
24,622,000
25,922,000
23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 50p each
1,000,000
1,000,000
500,000
500,000
24
Operating lease commitments
Lessee

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
62,132
62,132
-
-
Between two and five years
30,098
56,230
-
-
92,230
118,362
-
-
SAMUEL HODGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 34 -
25
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
470,505
373,534

At the year end amounts owed to a previous director H B Kinmond in respect of loans totalled £650,000 (2023: £750,000) and is included within other creditors due over and under one year. During the year interest of £41,250 (2023: £39,607) was paid in respect of this loan.

26
Directors' transactions

At the year end amounts owed to N Crisford a director of the company, in respect of interest free loans totalled £3,679,000 (2023: £3,954,388) and is included within other creditors due over and under one year.

 

27
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
1,044,321
689,055
Adjustments for:
Taxation charged
326,146
169,076
Finance costs
232,183
141,939
Investment income
(305,000)
(164,000)
(Gain)/loss on disposal of tangible fixed assets
(8,000)
9,760
Depreciation and impairment of tangible fixed assets
398,023
359,536
Pension scheme non-cash movement
150,000
84,000
Movements in working capital:
Increase in stocks
(384,628)
(696,383)
Decrease/(increase) in debtors
285,123
(107,554)
Increase in creditors
19,350
298,673
Cash generated from operations
1,757,518
784,102
SAMUEL HODGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 35 -
28
Analysis of changes in net debt - group
1 April 2023
Cash flows
New finance leases
Exchange rate movements
31 March 2024
£
£
£
£
£
Cash at bank and in hand
-
30,085
-
(30,085)
-
Bank overdrafts
(1,317,388)
495,126
-
-
(822,262)
(1,317,388)
525,211
-
(30,085)
(822,262)
Borrowings excluding overdrafts
(5,699,454)
674,171
-
-
(5,025,283)
Obligations under finance leases
(585,060)
188,808
(273,044)
-
(669,296)
(7,601,902)
1,388,190
(273,044)
(30,085)
(6,516,841)
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