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COMPANY REGISTRATION NUMBER: 13595362
HEYWOOD DEVELOPMENT CAPITAL LIMITED
FINANCIAL STATEMENTS
31 October 2023
HEYWOOD DEVELOPMENT CAPITAL LIMITED
FINANCIAL STATEMENTS
YEAR ENDED 31 OCTOBER 2023
Contents
Page
Officers and professional advisers 1
Strategic report 2
Director's report 3
Independent auditor's report to the members 5
Consolidated statement of comprehensive income 8
Consolidated statement of financial position 9
Balance sheet 10
Consolidated statement of changes in equity 11
Statement of changes in shareholders funds 12
Consolidated statement of cash flows 13
Notes to the financial statements 14
HEYWOOD DEVELOPMENT CAPITAL LIMITED
OFFICERS AND PROFESSIONAL ADVISERS
Director
A S Phillips
Registered office
Level 3
St Georges Square
Huddersfield
HD1 1JF
Auditor
Wheawill & Sudworth Limited
Chartered Accountants & statutory auditor
35 Westgate
Huddersfield
HD1 1PA
HEYWOOD DEVELOPMENT CAPITAL LIMITED
STRATEGIC REPORT
YEAR ENDED 31 OCTOBER 2023
The directors present the strategic report for the year ended 31 October 2023. Principal activity The principal activity of the group during the year under review was that of the manufacture of rooftrusses and other related products. The group's strategy is to have sustainable and profitable growth by expanding our product portfolio, improving our supplier relationships and reaching out to existing and new potential clients. Review of the business The Directors were satisfied with our results. Our industry has had a challenging year, despite housing development being depressed ahead of the upcoming general election, the group has had improved results with raw material prices falling. As a result this increased our operating profit in the trading subsidiary by £244k. The trading subsidiary's turnover has reduced from £10.6 million in 2022 to £10.2 million in 2023. Principal risks and uncertainties Liquidity continues to be managed by the use of a mix of invoice financing and strict credit control procedures that minimise the risk of overdue debts. Trade creditors are paid within industry terms. Attention is paid to raw material price movements and trends. Development and performance Operational developments We continue to invest in our infrastructure and IT resources to help increase business efficiencies in the years to come allowing for extra capacity to be gained from our experienced and skilled workforce. Our people We are focused on up-skilling all staff members so that they can fulfill a variety of roles and progress in the group. Other information and explanations Future outlook The business is well placed to deliver profitable growth moving forward. Recent reduction in interest rates, change in government who have prioritised housing and greater optimism will see an uptick in business in 2024/2025.
This report was approved by the board of directors on 20 January 2025 and signed on behalf of the board by:
A S Phillips
Director
Registered office:
Level 3
St Georges Square
Huddersfield
HD1 1JF
HEYWOOD DEVELOPMENT CAPITAL LIMITED
DIRECTOR'S REPORT
YEAR ENDED 31 OCTOBER 2023
The director presents his report and the financial statements of the group for the year ended 31 October 2023 .
Directors
The directors who served the company during the year were as follows:
J D Mayo
A S Phillips
J D Mayo resigned as a director on 10 January 2025.
Dividends
Particulars of recommended dividends are detailed in note 11 to the financial statements.
Director's responsibilities statement
The director is responsible for preparing the strategic report, director's report and the financial statements in accordance with applicable law and regulations. Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and the company and the profit or loss of the group for that period. In preparing these financial statements, the director is required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The director is 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. He is 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. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the group and the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the group and the company's auditor is aware of that information.
This report was approved by the board of directors on 20 January 2025 and signed on behalf of the board by:
A S Phillips
Director
Registered office:
Level 3
St Georges Square
Huddersfield
HD1 1JF
HEYWOOD DEVELOPMENT CAPITAL LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HEYWOOD DEVELOPMENT CAPITAL LIMITED
YEAR ENDED 31 OCTOBER 2023
Opinion
We have audited the financial statements of Heywood Development Capital Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2023 which comprise the consolidated statement of comprehensive income, consolidated statement of financial position, balance sheet, consolidated statement of changes in equity, statement of changes in shareholders funds, consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the group's and of the parent company's affairs as at 31 October 2023 and of the group's profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's or the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director 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 director is responsible for the other information. 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. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or - the parent company financial statements are not in agreement with the accounting records and returns; or - certain disclosures of director's remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of the director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or the parent company or to cease operations, or has 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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Obtained an understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with that framework; Assessment of the susceptibility of the entity’s financial statements to material misstatement, including how fraud might occur; Ensured whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations; Gained clear understanding of the entity’s current activities, the scope of its authorisation and confirmed the effectiveness of its control environment where the entity is a regulated entity; As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group's internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the director. - Conclude on the appropriateness of the director's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group's or the parent company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. - Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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.
David Martin Butterworth
(Senior Statutory Auditor)
For and on behalf of
Wheawill & Sudworth Limited
Chartered Accountants & statutory auditor
35 Westgate
Huddersfield
HD1 1PA
20 January 2025
HEYWOOD DEVELOPMENT CAPITAL LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
YEAR ENDED 31 OCTOBER 2023
2023
2022
Note
£
£
Turnover
4
10,156,796
887,952
Cost of sales
6,463,527
638,674
-------------
------------
Gross profit
3,693,269
249,278
Distribution costs
236,363
20,505
Administrative expenses
2,492,374
167,040
------------
------------
Operating profit
5
964,532
61,733
Other interest receivable and similar income
8
9,958
328
Interest payable and similar expenses
9
150,353
7,281
------------
------------
Profit before taxation
824,137
54,780
Tax on profit
10
275,434
16,089
------------
------------
Profit for the financial year and total comprehensive income
548,703
38,691
------------
------------
Profit for the financial year attributable to:
The owners of the parent company
321,682
19,100
Non-controlling interests
227,021
19,591
------------
------------
548,703
38,691
------------
------------
All the activities of the group are from continuing operations.
HEYWOOD DEVELOPMENT CAPITAL LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 October 2023
2023
2022
Note
£
£
Fixed assets
Intangible assets
12
2,957,197
2,705,156
Tangible assets
13
380,326
236,856
------------
------------
3,337,523
2,942,012
Current assets
Stocks
15
379,524
443,342
Debtors
16
2,103,621
2,272,838
Cash at bank and in hand
15,770
475,199
------------
------------
2,498,915
3,191,379
Creditors: amounts falling due within one year
17
4,466,204
4,309,901
------------
------------
Net current liabilities
1,967,289
1,118,522
------------
------------
Total assets less current liabilities
1,370,234
1,823,490
Creditors: amounts falling due after more than one year
18
1,107,346
915,824
Provisions
20
89,861
52,115
------------
------------
Net assets
173,027
855,551
------------
------------
Capital and reserves
Called up share capital
23
2
2
Profit and loss account
( 183,810)
19,100
------------
------------
Equity attributable to the owners of the parent company
( 183,808)
19,102
Non-controlling interests
356,835
836,449
------------
------------
173,027
855,551
------------
------------
These financial statements were approved by the board of directors and authorised for issue on 20 January 2025 , and are signed on behalf of the board by:
A S Phillips
Director
Company registration number: 13595362
HEYWOOD DEVELOPMENT CAPITAL LIMITED
BALANCE SHEET
31 October 2023
2023
2022
Note
£
£
Fixed assets
Investments
14
1,799,134
1,005,000
Current assets
Debtors
16
503,964
2
Creditors: amounts falling due within one year
17
1,902,630
1,005,000
------------
------------
Net current liabilities
1,398,666
1,004,998
------------
------------
Total assets less current liabilities
400,468
2
Creditors: amounts falling due after more than one year
18
395,089
------------
------------
Net assets
5,379
2
------------
------------
Capital and reserves
Called up share capital
23
2
2
Profit and loss account
5,377
------------
------------
Shareholders funds
5,379
2
------------
------------
The profit for the financial year of the parent company was £ 529,969 (2022: £Nil).
These financial statements were approved by the board of directors and authorised for issue on 20 January 2025 , and are signed on behalf of the board by:
A S Phillips
Director
Company registration number: 13595362
HEYWOOD DEVELOPMENT CAPITAL LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
YEAR ENDED 31 OCTOBER 2023
Called up share capital
Profit and loss account
Equity attributable to the owners of the parent company
Non-controlling interests
Total
£
£
£
£
£
At 1 November 2021
Profit for the year
19,100
19,100
19,591
38,691
------------
------------
------------
------------
------------
Total comprehensive income for the year
19,100
19,100
19,591
38,691
Issue of shares
2
2
2
Acquisition of subsidiary with minority interest
816,858
816,858
------------
------------
------------
------------
------------
Total investments by and distributions to owners
2
2
816,858
816,860
At 31 October 2022
2
19,100
19,102
836,449
855,551
Profit for the year
321,682
321,682
227,021
548,703
------------
------------
------------
------------
------------
Total comprehensive income for the year
321,682
321,682
227,021
548,703
Dividends paid and payable
11
( 524,592)
( 524,592)
( 504,019)
( 1,028,611)
Acquisition of subsidiary with minority interest
( 202,616)
( 202,616)
------------
------------
------------
------------
------------
Total investments by and distributions to owners
( 524,592)
( 524,592)
( 706,635)
( 1,231,227)
------------
------------
------------
------------
------------
At 31 October 2023
2
( 183,810)
( 183,808)
356,835
173,027
------------
------------
------------
------------
------------
HEYWOOD DEVELOPMENT CAPITAL LIMITED
STATEMENT OF CHANGES IN SHAREHOLDERS FUNDS
YEAR ENDED 31 OCTOBER 2023
Called up share capital
Profit and loss account
Total
£
£
£
At 1 November 2021
Profit for the year
Issue of shares
2
2
------------
------------
------------
Total investments by and distributions to owners
2
2
At 31 October 2022
2
2
Profit for the year
529,969
529,969
------------
------------
------------
Total comprehensive income for the year
529,969
529,969
Dividends paid and payable
11
( 524,592)
( 524,592)
------------
------------
------------
Total investments by and distributions to owners
( 524,592)
( 524,592)
------------
------------
------------
At 31 October 2023
2
5,377
5,379
------------
------------
------------
HEYWOOD DEVELOPMENT CAPITAL LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
YEAR ENDED 31 OCTOBER 2023
2023
2022
£
£
Cash flows from operating activities
Profit for the financial year
548,703
38,691
Adjustments for:
Depreciation of tangible assets
53,107
6,245
Amortisation of intangible assets
339,477
25,825
Other interest receivable and similar income
( 9,958)
( 328)
Interest payable and similar expenses
150,353
7,281
Gains on disposal of tangible assets
( 337)
Tax on profit
275,434
16,089
Changes in:
Stocks
63,818
34,253
Trade and other debtors
60,187
401,124
Trade and other creditors
( 183,779)
1,289,784
------------
------------
Cash generated from operations
1,297,005
1,818,964
Interest paid
( 150,353)
( 7,281)
Interest received
9,958
328
Tax paid
( 115,828)
( 54,617)
------------
------------
Net cash from operating activities
1,040,782
1,757,394
------------
------------
Cash flows from investing activities
Purchase of tangible assets
( 197,741)
( 243,101)
Proceeds from sale of tangible assets
1,501
Acquisition of subsidiaries
( 131,697)
( 1,005,000)
------------
------------
Net cash used in investing activities
( 327,937)
( 1,248,101)
------------
------------
Cash flows from financing activities
Proceeds from issue of ordinary shares
2
Proceeds from borrowings
166,700
Repayments of borrowings
( 292,726)
( 32,626)
Payments of finance lease liabilities
( 17,637)
( 1,470)
Dividends paid
( 1,028,611)
------------
------------
Net cash used in financing activities
( 1,172,274)
( 34,094)
------------
------------
Net (decrease)/increase in cash and cash equivalents
( 459,429)
475,199
Cash and cash equivalents at beginning of year
475,199
------------
------------
Cash and cash equivalents at end of year
15,770
475,199
------------
------------
HEYWOOD DEVELOPMENT CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 OCTOBER 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Level 3, St Georges Square, Huddersfield, HD1 1JF.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis . The financial statements are prepared in sterling, which is the functional currency of the entity and are rounded to the nearest £ . Going concern The company meets its day to day working capital requirements through the use of invoice finance facilities. The directors have a reasonable expectation that these facilities will continue and the company will have adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
Disclosure exemptions
The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following reduced disclosures available under FRS 102:
(a) Disclosures in respect of each class of share capital have not been presented.
(b) No cash flow statement has been presented for the company.
(c) Disclosures in respect of financial instruments have not been presented.
(d) No disclosure has been given for the aggregate remuneration of key management personnel.
Consolidation
The financial statements consolidate the financial statements of Heywood Development Capital Limited and all of its subsidiary undertakings.
The results of subsidiaries acquired or disposed of during the year are included from or to the date that control passes.
The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account.
Non-controlling interests
Minority interests in the net assets of consolidated subsidiaries are identified separately from the Group’s equity. Minority interests consist of the amount of those interests at the date of the original business combination and the minority’s share of changes in equity since the date of the combination.
The proportions of profit or loss and changes in equity allocated to the owners of the parent and to the minority interests are determined on the basis of existing ownership interests and do not reflect the possible exercise or conversion of options or convertible instruments.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Operating leases
Rentals paid under operating leases are charged to profit and loss as incurred.
Goodwill
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill
-
10% straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Long leasehold property
-
Over the length of the lease
Plant and machinery
-
15% reducing balance
Fixtures and fittings
-
15% reducing balance
Equipment
-
25% straight line
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the balance sheet as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
4. Turnover
Turnover arises from:
2023
2022
£
£
Sale of goods
10,156,796
887,952
-------------
------------
The whole of the turnover is attributable to the principal activity of the group wholly undertaken in the United Kingdom.
5. Operating profit
Operating profit or loss is stated after charging/crediting:
2023
2022
£
£
Amortisation of intangible assets
339,477
25,825
Depreciation of tangible assets
53,107
6,245
Gains on disposal of tangible assets
( 337)
Impairment of trade debtors
46,404
1,525
------------
------------
6. Staff costs
The average number of persons employed by the group during the year, including the director, amounted to:
2023
2022
No.
No.
Production staff
61
56
------------
------------
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
2,831,657
208,865
Social security costs
102,739
7,358
Other pension costs
66,968
2,050
------------
------------
3,001,364
218,273
------------
------------
7. Director's remuneration
The director's aggregate remuneration in respect of qualifying services was:
2023
2022
£
£
Remuneration
211,667
41,423
Company contributions to defined contribution pension plans
38,664
------------
------------
250,331
41,423
------------
------------
The number of directors who accrued benefits under company pension plans was as follows:
2023
2022
No.
No.
Defined contribution plans
1
------------
------------
Remuneration of the highest paid director in respect of qualifying services:
2023
2022
£
£
Aggregate remuneration
132,500
33,151
------------
------------
8. Other interest receivable and similar income
2023
2022
£
£
Interest on loans and receivables
321
Interest on cash and cash equivalents
126
Other interest receivable and similar income
9,832
7
------------
------------
9,958
328
------------
------------
9. Interest payable and similar expenses
2023
2022
£
£
Interest on banks loans and overdrafts
135,855
6,247
Interest on obligations under finance leases and hire purchase contracts
9,569
1,034
Other interest payable and similar charges
4,929
------------
------------
150,353
7,281
------------
------------
10. Tax on profit
Major components of tax expense
2023
2022
£
£
Current tax:
UK current tax expense
237,841
16,089
Adjustments in respect of prior periods
( 153)
------------
------------
Total current tax
237,688
16,089
------------
------------
Deferred tax:
Origination and reversal of timing differences
37,746
------------
------------
Tax on profit
275,434
16,089
------------
------------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2022: higher than) the standard rate of corporation tax in the UK of 25 % (2022: 19 %).
2023
2022
£
£
Profit on ordinary activities before taxation
824,137
54,780
------------
------------
Profit on ordinary activities by rate of tax
206,034
10,408
Adjustment to tax charge in respect of prior periods
( 153)
Effect of expenses not deductible for tax purposes
96,217
5,681
Effect of capital allowances and depreciation
( 446)
Effect of different UK tax rates on some earnings
(26,218)
------------
------------
Tax on profit
275,434
16,089
------------
------------
11. Dividends
2023
2022
£
£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
1,028,611
------------
------------
12. Intangible assets
Group
Goodwill
£
Cost
At 1 November 2022
2,730,981
Acquisitions through business combinations
591,518
------------
At 31 October 2023
3,322,499
------------
Amortisation
At 1 November 2022
25,825
Charge for the year
339,477
------------
At 31 October 2023
365,302
------------
Carrying amount
At 31 October 2023
2,957,197
------------
At 31 October 2022
2,705,156
------------
The company has no intangible assets.
13. Tangible assets
Group
Long leasehold property
Plant and machinery
Fixtures and fittings
Equipment
Total
£
£
£
£
£
Cost
At 1 November 2022
1,895
187,309
12,501
41,396
243,101
Additions
176,913
19,378
1,450
197,741
Disposals
( 1,164)
( 1,164)
------------
------------
------------
------------
------------
At 31 October 2023
1,895
363,058
31,879
42,846
439,678
------------
------------
------------
------------
------------
Depreciation
At 1 November 2022
1,895
2,562
181
1,607
6,245
Charge for the year
35,162
3,282
14,663
53,107
------------
------------
------------
------------
------------
At 31 October 2023
1,895
37,724
3,463
16,270
59,352
------------
------------
------------
------------
------------
Carrying amount
At 31 October 2023
325,334
28,416
26,576
380,326
------------
------------
------------
------------
------------
At 31 October 2022
184,747
12,320
39,789
236,856
------------
------------
------------
------------
------------
The company has no tangible assets.
14. Investments
The group has no investments.
Company
Shares in group undertakings
£
Cost
At 1 November 2022
1,005,000
Additions
794,134
------------
At 31 October 2023
1,799,134
------------
Impairment
At 1 November 2022 and 31 October 2023
------------
Carrying amount
At 31 October 2023
1,799,134
------------
At 31 October 2022
1,005,000
------------
Subsidiaries, associates and other investments
Details of the investments in which the parent company has an interest of 20% or more are as follows:
Class of share
Percentage of shares held
Subsidiary undertakings
Heywood Timber Holdings Limited
Ordinary C shares £0.01
71.832
Heywood Rooftruss Company Limited
Ordinary £0.01
71.832
15. Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
317,724
337,588
Work in progress
61,800
105,754
------------
------------
------------
------------
379,524
443,342
------------
------------
------------
------------
16. Debtors
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade debtors
1,379,282
1,670,573
Called up share capital not paid
2
2
2
2
Prepayments and accrued income
65,149
68,833
Director's loan account
503,962
503,962
Other debtors
155,226
533,430
------------
------------
------------
------------
2,103,621
2,272,838
503,964
2
------------
------------
------------
------------
The debtors above include the following amounts falling due after more than one year:
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade debtors
7,909
------------
------------
------------
------------
17. Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans and overdrafts
335,597
275,693
Trade creditors
1,686,030
1,911,868
Amounts owed to group undertakings
1,588,006
1,005,000
Accruals and deferred income
70,000
23,925
Corporation tax
429,645
307,785
1,563
Social security and other taxes
179,159
154,487
Obligations under finance leases and hire purchase contracts
17,637
17,637
Other creditors
1,748,136
1,618,506
313,061
------------
------------
------------
------------
4,466,204
4,309,901
1,902,630
1,005,000
------------
------------
------------
------------
An amount of £263,393 (2022: £nil) included in other creditors represents deferred consideration which is unsecured and interest-free, subject to default interest of 6% pa for delayed payment. Obligations under finance leases and hire purchase contracts are secured on the related assets. Included in other creditors is £1,233,731 (2022: £1,601,397) which is secured on the assets of the group.
18. Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans and overdrafts
664,524
850,454
Obligations under finance leases and hire purchase contracts
47,733
65,370
Other creditors
395,089
395,089
------------
------------
------------
------------
1,107,346
915,824
395,089
------------
------------
------------
------------
An amount of £395,089 (2022: £nil) included in other creditors represents deferred consideration which is unsecured and interest-free, subject to default interest of 6% pa for delayed payment. Obligations under finance leases and hire purchase contracts are secured on the related assets.
19. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Not later than 1 year
27,607
27,607
Later than 1 year and not later than 5 years
74,818
102,425
------------
------------
------------
------------
102,425
130,032
Less: future finance charges
( 37,055)
( 47,025)
------------
------------
------------
------------
Present value of minimum lease payments
65,370
83,007
------------
------------
------------
------------
20. Provisions
Group
Deferred tax (note 21)
£
At 1 November 2022
52,115
Additions
37,746
------------
At 31 October 2023
89,861
------------
The company does not have any provisions.
21. Deferred tax
The deferred tax included in the balance sheet is as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Included in provisions (note 20)
89,861
52,115
------------
------------
------------
------------
The deferred tax account consists of the tax effect of timing differences in respect of:
Group
Company
2023
2022
2023
2022
£
£
£
£
Accelerated capital allowances
89,861
52,115
------------
------------
------------
------------
22. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution pension plans was £ 28,304 (2022: £ 2,050 ).
23. Called up share capital
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
2
2
2
2
------------
------------
------------
------------
24. Analysis of changes in net debt
At 1 Nov 2022
Cash flows
At 31 Oct 2023
£
£
£
Cash at bank and in hand
475,199
(459,429)
15,770
Debt due within one year
(293,330)
(59,904)
(353,234)
Debt due after one year
(915,824)
203,567
(712,257)
------------
------------
------------
( 733,955)
( 315,766)
( 1,049,721)
------------
------------
------------
25. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Not later than 1 year
286,124
204,680
Later than 1 year and not later than 5 years
230,904
258,514
------------
------------
------------
------------
517,028
463,194
------------
------------
------------
------------
26. Director's advances, credits and guarantees
During the year the director entered into the following advances and credits with the company and its subsidiary undertakings:
2023
Balance brought forward
Advances/ (credits) to the director
Balance outstanding
£
£
£
J D Mayo
226,410
226,410
A S Phillips
277,552
277,552
------------
------------
------------
503,962
503,962
------------
------------
------------
2022
Balance brought forward
Advances/ (credits) to the director
Balance outstanding
£
£
£
J D Mayo
A S Phillips
------------
------------
------------
------------
------------
------------
The directors' loan accounts included in debtors are unsecured, bear interest at HMRC official rate and were settled in full in October 2024.
27. Related party transactions
Group
Included in other creditors are amounts due to companies under common control totalling £1,656 (2022: £1,656) and included in other debtors are amounts due from companies under common control totalling £12,510 (2022:£69,013) which are repayable on demand and currently interest free. Certain directors have provided personal guarantees in support of some of the company's finance facilities.
28. Control
There is no one controlling party of the company.