Company registration number 00255130 (England and Wales)
HE-MAN DUAL CONTROLS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
HE-MAN DUAL CONTROLS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
HE-MAN DUAL CONTROLS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
4
18,123
14,592
Tangible assets
5
580,535
624,206
598,658
638,798
Current assets
Stocks
697,390
558,171
Debtors
6
3,433,608
3,439,209
Cash at bank and in hand
194,265
239,515
4,325,263
4,236,895
Creditors: amounts falling due within one year
7
(685,825)
(729,549)
Net current assets
3,639,438
3,507,346
Total assets less current liabilities
4,238,096
4,146,144
Creditors: amounts falling due after more than one year
8
(705,618)
(1,129,545)
Provisions for liabilities
(67,093)
(97,629)
Net assets
3,465,385
2,918,970
Capital and reserves
Called up share capital
9
2,000
2,000
Profit and loss reserves
3,463,385
2,916,970
Total equity
3,465,385
2,918,970
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 7 November 2024 and are signed on its behalf by:
Mr. A Appleby
Director
Company Registration No. 00255130
HE-MAN DUAL CONTROLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
He-Man Dual Controls Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit J, Centurion Business Park, Bitterne Road, Southampton, SO18 1UB.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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
These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future. In making this assessment they have taken into account the improved performance during 2023 which has continued into 2024.
They have also considered the year end balances due from HM Holding Limited, a group undertaking, of £2,837,431 and amounts due to loan note holders by HM Holding Limited and subject to cross guarantees of £2,414,860. They have also considered year end loan commitments and that the forecasts prepared by the directors as part of their going concern assessment indicate that the loan covenants will be met.
On the basis of the facilities available under the finance agreement, the trading position of the company up to the date of signature of these accounts and the forecast for 2024 and 2025 the directors believe that liabilities can be met as they fall due for a period of at least one year from the date of signature of these accounts. The directors therefore continue to adopt the going concern basis in the preparation of the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
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.
HE-MAN DUAL CONTROLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets comprise primarily of trade marks costs. Such assets are defined as having finite useful lives and the costs are amortised on a straight line basis over their estimated useful lives of 10 years. Intangible assets are stated at cost less amortisation and are reviewed for impairment whenever there is an indication that the carrying value may be impaired.
Amortisation 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:
Development costs
10% straight line
Patents
20% straight line
1.6
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
10% straight line
Plant and equipment
33.33% straight line and 10% straight line
Motor vehicles
33.33% straight line
Tooling and Office Equipment
20% straight line and 33.33% 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.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.
1.8
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.
HE-MAN DUAL CONTROLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
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.
1.9
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.
1.10
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, cash and bank balances and amounts due from group companies are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans 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.
1.11
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.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
HE-MAN DUAL CONTROLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
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.
1.13
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.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
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 leases asset are consumed.
HE-MAN DUAL CONTROLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -
1.16
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.
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
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
41
39
4
Intangible fixed assets
Development costs
Patents
Total
£
£
£
Cost
At 1 January 2023
16,213
16,213
Additions
7,130
7,130
At 31 December 2023
16,213
7,130
23,343
Amortisation and impairment
At 1 January 2023
1,621
1,621
Amortisation charged for the year
3,243
356
3,599
At 31 December 2023
4,864
356
5,220
Carrying amount
At 31 December 2023
11,349
6,774
18,123
At 31 December 2022
14,592
14,592
HE-MAN DUAL CONTROLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
5
Tangible fixed assets
Leasehold improvements
Plant and equipment
Motor vehicles
Tooling and Office Equipment
Total
£
£
£
£
£
Cost
At 1 January 2023
350,026
876,940
54,267
32,541
1,313,774
Additions
3,670
35,821
15,695
55,186
Disposals
(216,949)
(20,524)
(26,805)
(264,278)
At 31 December 2023
353,696
695,812
33,743
21,431
1,104,682
Depreciation and impairment
At 1 January 2023
143,183
477,408
42,077
26,900
689,568
Depreciation charged in the year
35,125
57,065
4,286
2,381
98,857
Eliminated in respect of disposals
(216,949)
(20,524)
(26,805)
(264,278)
At 31 December 2023
178,308
317,524
25,839
2,476
524,147
Carrying amount
At 31 December 2023
175,388
378,288
7,904
18,955
580,535
At 31 December 2022
206,843
399,532
12,190
5,641
624,206
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
508,840
499,134
Corporation tax recoverable
4,241
Amounts owed by group undertakings
2,837,431
2,820,631
Other debtors
2,165
100
Prepayments and accrued income
85,172
115,103
3,433,608
3,439,209
7
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
104,167
Obligations under finance leases
65,824
79,879
Trade creditors
140,882
324,637
Corporation tax
83,976
Other taxation and social security
117,974
82,376
Other creditors
22,241
19,372
Accruals and deferred income
150,761
223,285
685,825
729,549
HE-MAN DUAL CONTROLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Creditors: amounts falling due within one year
(Continued)
- 8 -
All contracts under finance leases are secured against the assets to which they relate.
8
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
645,833
1,000,000
Obligations under finance leases
59,785
129,545
705,618
1,129,545
During the previous year the company refinanced its existing loan arrangements. The company made an early repayment in the year and the remaining repayments on the loan are due in instalments from August 2024. Interest is due on the outstanding balance at 4.75% above the lenders’ base rate
Amounts included above which fall due after five years are as follows:
Payable by instalments
-
145,833
9
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Odinary shares of £1 each
2,000
2,000
2,000
2,000
10
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Jon Noble
Statutory Auditor:
Azets Audit Services
11
Financial commitments, guarantees and contingent liabilities
The assets of the Company are secured by a fixed and floating charge in respect of the third party bank loans and amounts due by its parent company on loans from the the majority share holder and ultimate controlling party.
HE-MAN DUAL CONTROLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
12
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
475,000
575,000
13
Parent company
The immediate parent company is He-Man Equipment Limited. The registered address of He-Man Equipment Limited is Unit J, Centurion Business Park, Bitterne Road West, Southampton, Hampshire, SO18 1UB.
There is no ultimate controlling party.
2023-12-312023-01-01false08 November 2024CCH SoftwareCCH Accounts Production 2024.210No description of principal activityThis audit opinion is unqualifiedMr. A ApplebyMr. A FieldMr. J Stenton-PuttMr R C Kingfalsefalse002551302023-01-012023-12-31002551302023-12-31002551302022-12-3100255130core:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-12-3100255130core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-12-3100255130core:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-12-3100255130core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2022-12-3100255130core:LeaseholdImprovements2023-12-3100255130core:PlantMachinery2023-12-3100255130core:MotorVehicles2023-12-3100255130core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2023-12-3100255130core:LeaseholdImprovements2022-12-3100255130core:PlantMachinery2022-12-3100255130core:MotorVehicles2022-12-3100255130core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2022-12-3100255130core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3100255130core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3100255130core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-3100255130core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3100255130core:CurrentFinancialInstruments2023-12-3100255130core:CurrentFinancialInstruments2022-12-3100255130core:Non-currentFinancialInstruments2023-12-3100255130core:Non-currentFinancialInstruments2022-12-3100255130core:ShareCapital2023-12-3100255130core:ShareCapital2022-12-3100255130core:RetainedEarningsAccumulatedLosses2023-12-3100255130core:RetainedEarningsAccumulatedLosses2022-12-3100255130bus:Director12023-01-012023-12-3100255130core:IntangibleAssetsOtherThanGoodwill2023-01-012023-12-3100255130core:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-01-012023-12-3100255130core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-01-012023-12-3100255130core:LeaseholdImprovements2023-01-012023-12-3100255130core:PlantMachinery2023-01-012023-12-3100255130core:MotorVehicles2023-01-012023-12-3100255130core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2023-01-012023-12-31002551302022-01-012022-12-3100255130core:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-12-3100255130core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2022-12-31002551302022-12-3100255130core:DevelopmentCostsCapitalisedDevelopmentExpenditurecore:ExternallyAcquiredIntangibleAssets2023-01-012023-12-3100255130core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillcore:ExternallyAcquiredIntangibleAssets2023-01-012023-12-3100255130core:ExternallyAcquiredIntangibleAssets2023-01-012023-12-3100255130core:LeaseholdImprovements2022-12-3100255130core:PlantMachinery2022-12-3100255130core:MotorVehicles2022-12-3100255130core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2022-12-3100255130bus:PrivateLimitedCompanyLtd2023-01-012023-12-3100255130bus:SmallCompaniesRegimeForAccounts2023-01-012023-12-3100255130bus:FRS1022023-01-012023-12-3100255130bus:Audited2023-01-012023-12-3100255130bus:Director22023-01-012023-12-3100255130bus:Director32023-01-012023-12-3100255130bus:Director42023-01-012023-12-3100255130bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP