Company registration number 01192025 (England and Wales)
E.H. Hassell & Sons Limited
Annual report and financial statements
For the year ended 30 June 2024
E.H. Hassell & Sons Limited
Company information
Directors
Mr I D Hassell
Mrs R Burden
Mr J R Hassell
Secretary
Mrs R Burden
Company number
01192025
Registered office
Newstead Industrial Estate
Trentham Stoke On Trent
Staffs
ST4 8HX
Auditor
DJH Audit Limited
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
E.H. Hassell & Sons Limited
Contents
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 25
E.H. Hassell & Sons Limited
Strategic report
For the year ended 30 June 2024
- 1 -
The directors present the strategic report for the year ended 30 June 2024.
Review of the business
We aim to provide a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of the business and is written in the context of the risks and uncertainties we face.
Company turnover has increased this year by £2.18m to £13.12m (2023 - £10.94m), representing an increase of 19.88%, driven by a continued increase in Rapiscan sales.
Gross profit percentage has also increased this year to 36.04% (2023 - 33.49%). The company has worked hard during the year to drive efficiencies within the operating system.
Profit before tax for the year was £3.2m (2023 - £2.2m).
Return or capital employed (ROCE) increased significantly to 72.1% (2023 - 51.5%). This is considered to be a healthy return on the investment.
Return on capital employed is calculated by (Earnings before interest / total assets less creditors due after one year)
The directors are pleased with the results for the year and the financial position as at the year end.
Principal risks and uncertainties
The company like any other, faces risks and uncertainties in the course of doing business. Effective strategies have been developed to ensure that these risks are minimised, with a particular focus on factors such as high rates of interest and inflation that can affect demand for products and therefore, represent a risk to turnover and profitability.
The company mitigates this risk by developing key customer and supplier relationships.
Key performance indicators
We consider that our key performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover, gross margin and return on capital employed.
For an analysis please see our review of the business above.
Mrs R Burden
Director
10 December 2024
E.H. Hassell & Sons Limited
Directors' report
For the year ended 30 June 2024
- 2 -
The directors present their annual report and financial statements for the year ended 30 June 2024.
Principal activities
The principal activity of the company continued to be that of mechanical engineering and sales agents.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £1,881,787. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr I D Hassell
Mrs R Burden
Mr J R Hassell
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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements 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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
E.H. Hassell & Sons Limited
Directors' report (continued)
For the year ended 30 June 2024
- 3 -
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mrs R Burden
Director
10 December 2024
E.H. Hassell & Sons Limited
Independant auditor's report
To the members of E.H. Hassell & Sons Limited
- 4 -
Opinion
We have audited the financial statements of E.H. Hassell & Sons Limited (the 'company') for the year ended 30 June 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the 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:
give a true and fair view of the state of the company's affairs as at 30 June 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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.
E.H. Hassell & Sons Limited
Independant auditor's report (continued)
To the members of E.H. Hassell & Sons Limited
- 5 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed overleaf.
E.H. Hassell & Sons Limited
Independant auditor's report (continued)
To the members of E.H. Hassell & Sons Limited
- 6 -
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:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions; and
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC and relevant regulators including the Health and Safety Executive.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditors responsibilities. This description forms part of our auditor's report.
E.H. Hassell & Sons Limited
Independant auditor's report (continued)
To the members of E.H. Hassell & Sons Limited
- 7 -
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.
Gary Neil Chadwick FCCA
Senior Statutory Auditor
For and on behalf of DJH Audit Limited
20 January 2025
Accountants
Statutory Auditor
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
E.H. Hassell & Sons Limited
Statement of comprehensive income
For the year ended 30 June 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
13,119,717
10,943,815
Cost of sales
(8,391,551)
(7,278,240)
Gross profit
4,728,166
3,665,575
Distribution costs
(166,654)
(225,317)
Administrative expenses
(1,322,659)
(1,226,296)
Operating profit
4
3,238,853
2,213,962
Interest receivable and similar income
8
11,519
4,731
Interest payable and similar expenses
9
(12,743)
(24,898)
Profit before taxation
3,237,629
2,193,795
Tax on profit
10
(811,898)
(587,610)
Profit for the financial year
2,425,731
1,606,185
E.H. Hassell & Sons Limited
Statement of financial position
As at 30 June 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
1,008,543
1,151,527
Current assets
Stocks
13
780,161
745,768
Debtors
14
4,280,362
4,100,399
Cash at bank and in hand
937,331
829,820
5,997,854
5,675,987
Creditors: amounts falling due within one year
15
(2,096,039)
(2,480,748)
Net current assets
3,901,815
3,195,239
Total assets less current liabilities
4,910,358
4,346,766
Creditors: amounts falling due after more than one year
16
(101,366)
(48,218)
Provisions for liabilities
Deferred tax liability
18
216,000
249,500
(216,000)
(249,500)
Net assets
4,592,992
4,049,048
Capital and reserves
Called up share capital
20
5,734
5,734
Capital redemption reserve
21
11,516
11,516
Profit and loss reserves
4,575,742
4,031,798
Total equity
4,592,992
4,049,048
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 10 December 2024 and are signed on its behalf by:
Mrs R Burden
Director
Company registration number 01192025 (England and Wales)
E.H. Hassell & Sons Limited
Statement of changes in equity
For the year ended 30 June 2024
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 July 2022
5,734
11,516
2,958,591
2,975,841
Year ended 30 June 2023:
Profit and total comprehensive income
-
-
1,606,185
1,606,185
Dividends
11
-
-
(532,978)
(532,978)
Balance at 30 June 2023
5,734
11,516
4,031,798
4,049,048
Year ended 30 June 2024:
Profit and total comprehensive income
-
-
2,425,731
2,425,731
Dividends
11
-
-
(1,881,787)
(1,881,787)
Balance at 30 June 2024
5,734
11,516
4,575,742
4,592,992
E.H. Hassell & Sons Limited
Statement of cash flows
For the year ended 30 June 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
2,832,664
1,410,181
Interest paid
(12,743)
(24,898)
Income taxes paid
(602,544)
(309,077)
Net cash inflow from operating activities
2,217,377
1,076,206
Investing activities
Purchase of tangible fixed assets
(171,020)
(535,452)
Proceeds from disposal of tangible fixed assets
83,668
179,317
Interest received
11,519
4,731
Net cash used in investing activities
(75,833)
(351,404)
Financing activities
Payment of finance leases obligations
(152,246)
(266,996)
Dividends paid
(1,881,787)
(532,978)
Net cash used in financing activities
(2,034,033)
(799,974)
Net increase/(decrease) in cash and cash equivalents
107,511
(75,172)
Cash and cash equivalents at beginning of year
829,820
904,992
Cash and cash equivalents at end of year
937,331
829,820
E.H. Hassell & Sons Limited
Notes to the financial statements
For the year ended 30 June 2024
- 12 -
1
Accounting policies
Company information
E.H. Hassell & Sons Limited is a private company limited by shares incorporated in England and Wales. The registered office is Newstead Industrial Estate, Trentham Stoke On Trent, Staffs, ST4 8HX.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with other group entities where the relationship is one of being wholly owned.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for 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.
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 despatch 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.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
E.H. Hassell & Sons Limited
Notes to the financial statements (continued)
For the year ended 30 June 2024
1
Accounting policies
(Continued)
- 13 -
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:
Plant and machinery
10% / 20% per annum on cost
Fixtures, fittings and equipment
10% per annum on cost
Motor vehicles
20% per annum on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
E.H. Hassell & Sons Limited
Notes to the financial statements (continued)
For the year ended 30 June 2024
1
Accounting policies
(Continued)
- 14 -
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position 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 fellow 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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
E.H. Hassell & Sons Limited
Notes to the financial statements (continued)
For the year ended 30 June 2024
1
Accounting policies
(Continued)
- 15 -
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, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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.
E.H. Hassell & Sons Limited
Notes to the financial statements (continued)
For the year ended 30 June 2024
1
Accounting policies
(Continued)
- 16 -
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.
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 income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
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 statement of financial position 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.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
E.H. Hassell & Sons Limited
Notes to the financial statements (continued)
For the year ended 30 June 2024
- 17 -
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Amounts recoverable on long term contracts
Long term contract revenue is estimated based on the % cost completion of the project at the year end.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
13,055,814
10,888,676
Europe
63,903
55,139
13,119,717
10,943,815
2024
2023
£
£
Other revenue
Interest income
11,519
4,731
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
637
8,474
Depreciation of owned tangible fixed assets
225,623
273,474
Depreciation of tangible fixed assets held under finance leases
33,604
-
Profit on disposal of tangible fixed assets
(28,891)
(81,587)
E.H. Hassell & Sons Limited
Notes to the financial statements (continued)
For the year ended 30 June 2024
- 18 -
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 company
16,000
15,250
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Cost of sales
40
37
Selling & distribution
2
3
Administration
8
7
Total
50
47
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,791,741
1,673,439
Social security costs
185,396
177,021
Pension costs
128,137
108,130
2,105,274
1,958,590
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
171,519
217,229
Company pension contributions to defined contribution schemes
17,228
14,547
188,747
231,776
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).
E.H. Hassell & Sons Limited
Notes to the financial statements (continued)
For the year ended 30 June 2024
7
Directors' remuneration
(Continued)
- 19 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
n/a
70,000
As total directors' remuneration was less than £200,000 in the current year, no disclosure is provided for that year.
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
11,519
4,731
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
11,519
4,731
9
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
12,743
24,898
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
845,398
393,241
Adjustments in respect of prior periods
(4,975)
Total current tax
845,398
388,266
E.H. Hassell & Sons Limited
Notes to the financial statements (continued)
For the year ended 30 June 2024
10
Taxation
2024
2023
£
£
(Continued)
- 20 -
Deferred tax
Origination and reversal of timing differences
(33,500)
Other adjustments
199,344
Total deferred tax
(33,500)
199,344
Total tax charge
811,898
587,610
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
3,237,629
2,193,795
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
809,407
416,821
Tax effect of expenses that are not deductible in determining taxable profit
2,549
1,025
Effect of change in corporation tax rate
28,701
Under/(over) provided in prior years
(4,975)
Deferred tax under/(over) provided current year
(45)
(13)
Deferred tax (over)/under provided prior year
(13)
146,051
Taxation charge for the year
811,898
587,610
11
Dividends
2024
2023
£
£
Interim paid
1,881,787
532,978
E.H. Hassell & Sons Limited
Notes to the financial statements (continued)
For the year ended 30 June 2024
- 21 -
12
Tangible fixed assets
Plant and machinery
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 July 2023
1,679,463
144,267
390,513
2,214,243
Additions
134,597
6,870
29,553
171,020
Disposals
(135,504)
(37,055)
(172,559)
At 30 June 2024
1,678,556
151,137
383,011
2,212,704
Depreciation and impairment
At 1 July 2023
716,607
108,353
237,756
1,062,716
Depreciation charged in the year
193,242
9,385
56,600
259,227
Eliminated in respect of disposals
(81,287)
(36,495)
(117,782)
At 30 June 2024
828,562
117,738
257,861
1,204,161
Carrying amount
At 30 June 2024
849,994
33,399
125,150
1,008,543
At 30 June 2023
962,856
35,914
152,757
1,151,527
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Plant and machinery
36,804
459,518
Motor vehicles
30,423
45,627
67,227
505,145
13
Stocks
2024
2023
£
£
Raw materials and consumables
721,688
716,149
Work in progress
58,473
29,619
780,161
745,768
E.H. Hassell & Sons Limited
Notes to the financial statements (continued)
For the year ended 30 June 2024
- 22 -
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,822,881
1,844,984
Gross amounts owed by contract customers
1,169,628
1,650,000
Amounts owed by group undertakings
22,411
18,789
Other debtors
133
1,139
Prepayments and accrued income
265,309
585,487
4,280,362
4,100,399
Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
17
81,866
107,260
Trade creditors
938,850
1,508,526
Corporation tax
462,177
219,323
Other taxation and social security
448,271
478,127
Other creditors
106,141
115,395
Accruals and deferred income
58,734
52,117
2,096,039
2,480,748
Included within other creditors are net obligations due under hire purchase contracts of £81,866 (2023 - £107,260), these are secured on the assets to which they relate.
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
17
101,366
48,218
Included within other creditors are net obligations due under hire purchase contracts of £101,366 (2023 - £48,218), these are secured on the assets to which they relate.
E.H. Hassell & Sons Limited
Notes to the financial statements (continued)
For the year ended 30 June 2024
- 23 -
17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
81,866
107,260
In two to five years
101,366
48,218
183,232
155,478
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
18
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
216,000
249,500
2024
Movements in the year:
£
Liability at 1 July 2023
249,500
Credit to profit or loss
(33,500)
Liability at 30 June 2024
216,000
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
128,137
108,130
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
E.H. Hassell & Sons Limited
Notes to the financial statements (continued)
For the year ended 30 June 2024
- 24 -
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary 'D' shares of £1 each
2,867
2,867
2,867
2,867
Ordinary 'B' shares of £1 each
2,867
2,867
2,867
2,867
5,734
5,734
5,734
5,734
21
Capital redemption reserve
The capital redemption reserve contains the nominal value of own shares that have been acquired by the company and cancelled.
22
Ultimate controlling party
The ultimate parent company is IDH Holdings Limited, incorporated in England and Wales, registered office: The Glades, Festival Way, Festival Park, Stoke on Trent, Staffordshire, ST1 5SQ.
This forms a small group.
23
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
2,425,731
1,606,185
Adjustments for:
Taxation charged
811,898
587,610
Finance costs
12,743
24,898
Investment income
(11,519)
(4,731)
Gain on disposal of tangible fixed assets
(28,891)
(81,587)
Depreciation and impairment of tangible fixed assets
259,227
273,474
Decrease in provisions
(60,000)
Movements in working capital:
Decrease/(increase) in stocks
145,607
(96,292)
Increase in debtors
(179,963)
(1,651,818)
(Decrease)/increase in creditors
(602,169)
812,442
Cash generated from operations
2,832,664
1,410,181
E.H. Hassell & Sons Limited
Notes to the financial statements (continued)
For the year ended 30 June 2024
- 25 -
24
Analysis of changes in net funds
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
829,820
107,511
937,331
Obligations under finance leases
(155,478)
(27,754)
(183,232)
674,342
79,757
754,099
2024-06-302023-07-01falseCCH SoftwareCCH Accounts Production 2024.200Mr I D HassellMr J R HassellMr J R HassellMrs R Burdenfalsefalse011920252023-07-012024-06-3001192025bus:Director12023-07-012024-06-3001192025bus:CompanySecretaryDirector12023-07-012024-06-3001192025bus:Director22023-07-012024-06-3001192025bus:CompanySecretary12023-07-012024-06-3001192025bus:Director32023-07-012024-06-3001192025bus:RegisteredOffice2023-07-012024-06-30011920252024-06-30011920252022-07-012023-06-3001192025core:RetainedEarningsAccumulatedLosses2022-07-012023-06-3001192025core:RetainedEarningsAccumulatedLosses2023-07-012024-06-30011920252023-06-3001192025core:PlantMachinery2024-06-3001192025core:FurnitureFittings2024-06-3001192025core:MotorVehicles2024-06-3001192025core:PlantMachinery2023-06-3001192025core:FurnitureFittings2023-06-3001192025core:MotorVehicles2023-06-3001192025core:CurrentFinancialInstrumentscore:WithinOneYear2024-06-3001192025core:CurrentFinancialInstrumentscore:WithinOneYear2023-06-3001192025core:Non-currentFinancialInstrumentscore:AfterOneYear2024-06-3001192025core:Non-currentFinancialInstrumentscore:AfterOneYear2023-06-3001192025core:CurrentFinancialInstruments2024-06-3001192025core:CurrentFinancialInstruments2023-06-3001192025core:ShareCapital2024-06-3001192025core:ShareCapital2023-06-3001192025core:CapitalRedemptionReserve2024-06-3001192025core:CapitalRedemptionReserve2023-06-3001192025core:RetainedEarningsAccumulatedLosses2024-06-3001192025core:RetainedEarningsAccumulatedLosses2023-06-3001192025core:ShareCapital2022-06-3001192025core:CapitalRedemptionReserve2022-06-3001192025core:RetainedEarningsAccumulatedLosses2022-06-3001192025core:ShareCapitalOrdinaryShares2024-06-3001192025core:ShareCapitalOrdinaryShares2023-06-30011920252023-06-30011920252022-06-3001192025core:PlantMachinery2023-07-012024-06-3001192025core:FurnitureFittings2023-07-012024-06-3001192025core:MotorVehicles2023-07-012024-06-3001192025core:AccountingPolicyChangeIncreaseDecrease2023-07-012024-06-3001192025core:ContinuingOperations2022-07-012023-06-3001192025core:UKTax2023-07-012024-06-3001192025core:UKTax2022-07-012023-06-300119202512023-07-012024-06-300119202512022-07-012023-06-300119202522023-07-012024-06-300119202522022-07-012023-06-300119202532023-07-012024-06-300119202532022-07-012023-06-3001192025core:PlantMachinery2023-06-3001192025core:FurnitureFittings2023-06-3001192025core:MotorVehicles2023-06-3001192025core:Non-currentFinancialInstruments2024-06-3001192025core:Non-currentFinancialInstruments2023-06-3001192025core:WithinOneYear2024-06-3001192025core:WithinOneYear2023-06-3001192025core:BetweenTwoFiveYears2024-06-3001192025core:BetweenTwoFiveYears2023-06-3001192025bus:PrivateLimitedCompanyLtd2023-07-012024-06-3001192025bus:FRS1022023-07-012024-06-3001192025bus:Audited2023-07-012024-06-3001192025bus:FullAccounts2023-07-012024-06-30xbrli:purexbrli:sharesiso4217:GBP