REGISTERED NUMBER: 13087454 (England and Wales) |
HUTCHINSON ENGINEERING GROUP LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
REGISTERED NUMBER: 13087454 (England and Wales) |
HUTCHINSON ENGINEERING GROUP LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
HUTCHINSON ENGINEERING GROUP LIMITED (REGISTERED NUMBER: 13087454) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 3 |
Report of the Independent Auditors | 4 | to | 6 |
Consolidated Statement of Comprehensive Income | 7 |
Consolidated Statement of Financial Position | 8 |
Company Statement of Financial Position | 9 |
Consolidated Statement of Changes in Equity | 10 |
Company Statement of Changes in Equity | 11 |
Consolidated Statement of Cash Flows | 12 |
Notes to the Consolidated Statement of Cash Flows | 13 | to | 14 |
Notes to the Consolidated Financial Statements | 15 | to | 24 |
HUTCHINSON ENGINEERING GROUP LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 APRIL 2024 |
DIRECTOR: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: | Rachel Rudkin FCCA |
AUDITORS: |
14 London Road |
Newark |
Nottinghamshire |
NG24 1TW |
BANKERS: | Lloyds Bank |
202 High Street |
Lincoln |
Lincolnshire |
LN5 7AP |
SOLICITORS: |
Olympic House |
Doddington Road |
Lincoln |
LN6 3SE |
HUTCHINSON ENGINEERING GROUP LIMITED (REGISTERED NUMBER: 13087454) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 APRIL 2024 |
The director presents his strategic report of the company and the group for the year ended 30 April 2024. |
REVIEW OF BUSINESS |
The director aims to present a balanced and comprehensive review of the development and performance of the group during the period and its position at the period end. The review is consistent with the size and nature of the group and is written in the context of the risks and uncertainties that the group faces. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The director continually monitors the key risks facing the company together with assessing the controls used for managing these risks. |
The principal risks and uncertainties facing the group are derived from general economic uncertainty and changes to laws and regulations given the highly regulated environment the group operates within. |
Financial risks are managed through the use of overdraft, hire purchase agreements and a fixed term loan in order to give more structure to the group's debt. |
There is a risk associated with the ongoing challenge of the nationwide shortage of haulier drivers However,the group continues to offer incentives to attract drivers into the industry to fulfil future orders. |
The risk and impact has been reviewed and having assessed the situation, the group is considered to have adequate resources to mitigate these risks. |
KEY PERFORMANCE INDICATORS |
The key financial performance indicators are those that show the financial performance and strength of the Group as a whole, which are considered to be turnover and gross margin. |
2024 | 2023 |
Turnover | 14,753,734 | 14,143,531 |
Gross Profit % | 20.41% | 25.60% |
Net Profit/ (loss) | 763,999 | 1,317,052 |
The above KPIs are calculated and reviewed on a regular basis by the director and used to monitor and manage the group's performance. |
Overall profit before tax is £763,999. After taxation, the profit for the financial year is £588,866. |
FUTURE DEVELOPMENTS |
A significant investment in plant and equipment and vehicles was made during the year totalling £2.8M and the group intends to utilise this investment to assist with future growth. |
The director is aware that any plans for the future development of the business may be subject to unforeseen future events outside of his control. |
ON BEHALF OF THE BOARD: |
HUTCHINSON ENGINEERING GROUP LIMITED (REGISTERED NUMBER: 13087454) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 30 APRIL 2024 |
The director presents his report with the financial statements of the company and the group for the year ended 30 April 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the period under review was that of engineering, plant repairers & dealers, haulage and fuel sales. |
DIVIDENDS |
No dividends will be distributed for the year ended 30 April 2024. |
DIRECTOR |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director 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 company and the group and of 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 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Duncan & Toplis Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HUTCHINSON ENGINEERING GROUP LIMITED |
Opinion |
We have audited the financial statements of Hutchinson Engineering Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, 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 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 group's and of the parent company affairs as at 30 April 2024 and of the group's 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. |
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 Auditors' 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 and 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 director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon. |
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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Director 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 Group Strategic Report or the Report of the Director. |
We have nothing to report in respect of the following matters where 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HUTCHINSON ENGINEERING GROUP LIMITED |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page three, 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 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. |
Auditors' 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit. |
The potential impact of different laws and regulations varies considerably. Firstly, the group and parent company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgemental areas of the financial statements such as depreciation of tangible fixed assets, as well as the risk of inappropriate journal entries to increase reported profitability. Audit procedures performed by the engagement team included the identification and testing of material and unusual journal entries and challenging management on key accounting estimates, assumptions and judgements made in the preparation of the financial statements.We carried out detailed substantive tests on accounting estimates, including reviewing the methods used by management to make those estimates, re-performing the calculation, and reviewing the outcome of prior year estimates. |
Secondly, the group and parent company is subject to other laws and regulations where the consequence for non compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Health and Safety regulations, Goods vehicle operating laws and Employment laws. |
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection. This inspection included a review of correspondence from any external regulators as well as verification of the group's vehicle operating license period. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HUTCHINSON ENGINEERING GROUP LIMITED |
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 a Report of the Auditors 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. |
for and on behalf of |
14 London Road |
Newark |
Nottinghamshire |
NG24 1TW |
HUTCHINSON ENGINEERING GROUP LIMITED (REGISTERED NUMBER: 13087454) |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ |
REVENUE | 3 | 14,753,734 | 14,143,531 |
Cost of sales | 11,742,220 | 10,522,002 |
GROSS PROFIT | 3,011,514 | 3,621,529 |
Administrative expenses | 2,310,061 | 2,377,008 |
701,453 | 1,244,521 |
Other operating income | 241,337 | 211,518 |
OPERATING PROFIT | 5 | 942,790 | 1,456,039 |
Interest payable and similar expenses | 6 | 178,792 | 138,987 |
PROFIT BEFORE TAXATION | 763,998 | 1,317,052 |
Tax on profit | 7 | 175,133 | 403,166 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 588,865 | 913,886 |
Profit attributable to: |
Owners of the parent | 588,865 | 913,886 |
Total comprehensive income attributable to: |
Owners of the parent | 588,865 | 913,886 |
HUTCHINSON ENGINEERING GROUP LIMITED (REGISTERED NUMBER: 13087454) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | - | - |
Property, plant and equipment | 10 | 10,834,009 | 9,096,785 |
Investments | 11 | - | - |
10,834,009 | 9,096,785 |
CURRENT ASSETS |
Inventories | 12 | 1,204,095 | 1,303,299 |
Debtors | 13 | 3,142,768 | 2,684,392 |
Cash at bank and in hand | 236,784 | 241,061 |
4,583,647 | 4,228,752 |
CREDITORS |
Amounts falling due within one year | 14 | 4,464,963 | 4,054,182 |
NET CURRENT ASSETS | 118,684 | 174,570 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 10,952,693 | 9,271,355 |
CREDITORS |
Amounts falling due after more than one year | 15 | (2,566,233 | ) | (1,648,893 | ) |
PROVISIONS FOR LIABILITIES | 20 | (1,294,600 | ) | (1,119,467 | ) |
NET ASSETS | 7,091,860 | 6,502,995 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 100 | 100 |
Merger reserves | 22 | 4,980,545 | 4,980,545 |
Retained earnings | 22 | 2,111,215 | 1,522,350 |
SHAREHOLDERS' FUNDS | 7,091,860 | 6,502,995 |
The financial statements were approved by the director and authorised for issue on 16 October 2024 and were signed by: |
I E Hutchinson - Director |
HUTCHINSON ENGINEERING GROUP LIMITED (REGISTERED NUMBER: 13087454) |
COMPANY STATEMENT OF FINANCIAL POSITION |
30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Property, plant and equipment | 10 |
Investments | 11 |
CURRENT ASSETS |
Debtors | 13 |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's (loss)/profit for the financial year | (28,800 | ) | 600,000 |
The financial statements were approved by the director and authorised for issue on |
HUTCHINSON ENGINEERING GROUP LIMITED (REGISTERED NUMBER: 13087454) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 APRIL 2024 |
Called up |
share | Retained | Merger | Total |
capital | earnings | reserves | equity |
£ | £ | £ | £ |
Balance at 1 May 2022 | - | 608,464 | 4,980,545 | 5,589,009 |
Changes in equity |
Issue of share capital | 100 | - | - | 100 |
Total comprehensive income | - | 913,886 | - | 913,886 |
Balance at 30 April 2023 | 100 | 1,522,350 | 4,980,545 | 6,502,995 |
Changes in equity |
Total comprehensive income | - | 588,865 | - | 588,865 |
Balance at 30 April 2024 | 100 | 2,111,215 | 4,980,545 | 7,091,860 |
HUTCHINSON ENGINEERING GROUP LIMITED (REGISTERED NUMBER: 13087454) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 APRIL 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Changes in equity |
Issue of share capital | - |
Total comprehensive income | - |
Balance at 30 April 2023 |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 30 April 2024 |
HUTCHINSON ENGINEERING GROUP LIMITED (REGISTERED NUMBER: 13087454) |
CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,277,093 | (965,440 | ) |
Interest paid | (66,233 | ) | (49,106 | ) |
Interest element of hire purchase payments paid | (112,559 | ) | (89,881 | ) |
Tax paid | (95,303 | ) | - |
R and D tax credit | 241,338 | 39,140 |
Net cash from operating activities | 1,244,336 | (1,065,287 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (2,759,571 | ) | (1,097,982 | ) |
Sale of tangible fixed assets | 183,599 | 157,239 |
Net cash from investing activities | (2,575,972 | ) | (940,743 | ) |
Cash flows from financing activities |
Loan repayments in year | (102,253 | ) | (112,177 | ) |
HP repayments in year | - | (302,401 | ) |
Capital repayments in year | 1,350,300 | 2,314,831 |
Amount introduced by directors | 86,837 | 5,585 |
Amount withdrawn by directors | (118,423 | ) | (132,287 | ) |
Share issue | - | 100 |
Net cash from financing activities | 1,216,461 | 1,773,651 |
Decrease in cash and cash equivalents | (115,175 | ) | (232,379 | ) |
Cash and cash equivalents at beginning of year | 2 | 241,061 | - |
Cash and cash equivalents at end of year | 2 | 125,887 | 241,061 |
HUTCHINSON ENGINEERING GROUP LIMITED (REGISTERED NUMBER: 13087454) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 30 APRIL 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 763,998 | 1,317,052 |
Depreciation charges | 933,010 | 882,834 |
Profit on disposal of fixed assets | (94,263 | ) | (76,678 | ) |
R and D tax credit | (241,338 | ) | (39,140 | ) |
Finance costs | 178,792 | 138,987 |
1,540,199 | 2,223,055 |
Decrease/(increase) in inventories | 99,204 | (1,303,299 | ) |
Increase in trade and other debtors | (458,284 | ) | (3,713,304 | ) |
Increase in trade and other creditors | 95,974 | 1,828,108 |
Cash generated from operations | 1,277,093 | (965,440 | ) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 30 April 2024 |
30.4.24 | 1.5.23 |
£ | £ |
Cash and cash equivalents | 236,784 | 241,061 |
Bank overdrafts | (110,897 | ) | - |
125,887 | 241,061 |
Year ended 30 April 2023 |
30.4.23 | 1.5.22 |
£ | £ |
Cash and cash equivalents | 241,061 | - |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.5.23 | Cash flow | At 30.4.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 241,061 | (4,277 | ) | 236,784 |
Bank overdrafts | - | (110,897 | ) | (110,897 | ) |
241,061 | (115,174 | ) | 125,887 |
Debt |
Finance leases | (2,012,430 | ) | (1,350,300 | ) | (3,362,730 | ) |
Debts falling due within 1 year | (116,897 | ) | (2,899 | ) | (119,796 | ) |
Debts falling due after 1 year | (702,983 | ) | 105,152 | (597,831 | ) |
(2,832,310 | ) | (1,248,047 | ) | (4,080,357 | ) |
Total | (2,591,249 | ) | (1,363,221 | ) | (3,954,470 | ) |
HUTCHINSON ENGINEERING GROUP LIMITED (REGISTERED NUMBER: 13087454) |
ERROR MESSAGES FROM THE CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 30 APRIL 2024 |
** | CURRENT YEAR - MOVEMENT IN CASH AND CASH EQUIVALENTS |
AS CALCULATED IN CONSOLIDATED STATEMENT OF CASH FLOWS |
DOES NOT AGREE TO MOVEMENT PER STATEMENT OF FINANCIAL POSITION |
COMPARE MOVEMENT ON CONSOLIDATED STATEMENT OF CASH FLOWS | = | (115,175 | ) |
TO | MOVEMENT PER STATEMENT OF FINANCIAL POSITION |
CASH AND CASH EQUIVALENTS LESS BANK OVERDRAFTS |
(4,277 | ) | - | 110,897 | = | (115,174 | ) |
** | LAST YEAR - MOVEMENT IN CASH AND CASH EQUIVALENTS |
AS CALCULATED IN CONSOLIDATED STATEMENT OF CASH FLOWS |
DOES NOT AGREE TO MOVEMENT PER STATEMENT OF FINANCIAL POSITION |
COMPARE MOVEMENT ON CONSOLIDATED STATEMENT OF CASH FLOWS | = | (232,379 | ) |
TO | MOVEMENT PER STATEMENT OF FINANCIAL POSITION |
CASH AND CASH EQUIVALENTS | = | 241,061 |
HUTCHINSON ENGINEERING GROUP LIMITED (REGISTERED NUMBER: 13087454) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
1. | STATUTORY INFORMATION |
Hutchinson Engineering Group Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These consolidated financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and the Companies Act 2006. The consolidated financial statements have been prepared under the historical cost convention. |
The directors have reasonable expectations that the group has adequate resources to continue in existence for the foreseeable future. The group has therefore adopted the going concern basis in preparing its consolidated financial statements. |
Basis of consolidation |
The group financial statements consolidate the results of the Company, Hutchinson Engineering Services Limited and Specialist Trailer Services UK Limited (the 'Group') at the reporting date of 30 April 2024. |
Significant judgements and estimates |
In the application of the group's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are disclosed as appropriate within the notes to the financial statements. |
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed periodically and may vary depending on a number of factors. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. |
Stock is carried at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving stock. The Director has used their knowledge and experience of the industry to determine the level of provisioning required based on the aging profile of stock. |
Revenue |
Revenue represents amounts charged to customers for goods and services provided during the year, excluding value added tax and trade discounts. |
Engineering and plant repairs revenue is recognised when the significant risks and benefits of ownership of the product have transferred to the buyer, which may be upon completion of the product or the product being ready for delivery, based on the specific contract terms. Haulage revenue is recognised when delivery is made. |
HUTCHINSON ENGINEERING GROUP LIMITED (REGISTERED NUMBER: 13087454) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
2. | ACCOUNTING POLICIES - continued |
Property plant & equipment |
Freehold property | - |
Improvements to property | - |
Fixtures, plant and equipment | - |
Motor vehicles | - |
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
Inventory and amounts recoverable on contracts |
Inventories are valued at the lower of cost and fair value less costs to complete and sell, after making due allowance for obsolete and slow moving inventories and accounted for on a first-in-first-out basis. |
Revenue is recognised on contracts where the group has obtained a right to consideration. Revenue recognised in this manner is based on an assessment of the fair value of the goods and services provided at the financial reporting date as a proportion of the total value of the contract. Provision is made against unbilled amounts on those contracts where the right to receive payment is contingent on factors outside the control of the group. Unbilled revenue is included in debtors. |
The group holds various spares and other equipment and is subject to changing consumer demands and economic trends. As a result it is necessary to consider the recoverability of the cost of inventory and the associated provisioning required. When calculating the provision, management considers the nature and condition of the inventory, as well as applying assumptions around anticipated saleability of finished goods and future usage of raw materials. |
Financial instruments |
The group has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments. |
Basic financial assets are initially recognised at transaction price, 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. |
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. |
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
Basic financial liabilities 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 receipts discounted at a market rate of interest. |
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. Accounts 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. |
HUTCHINSON ENGINEERING GROUP LIMITED (REGISTERED NUMBER: 13087454) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Business combinations |
Investment in subsidiaries |
The consolidated financial statements incorporate the financial statements of Hutchinson Engineering Services Limited and entities controlled by the group (its subsidiaries). Control is achieved where the group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. |
The results of subsidiaries acquired during the year are included in total comprehensive income from the effective date of acquisition using accounting policies consistent with those of the parent. All intra-group transactions, balances, income and expenses are eliminated in full on consolidation. |
Investments in subsidiaries are accounted for at cost less impairment in the individual financial statements. |
3. | REVENUE |
The revenue and profit before taxation are attributable to the one principal activity of the group. |
An analysis of revenue by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom | 14,753,734 | 14,143,531 |
14,753,734 | 14,143,531 |
HUTCHINSON ENGINEERING GROUP LIMITED (REGISTERED NUMBER: 13087454) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 4,190,719 | 3,964,213 |
Social security costs | 446,435 | 443,407 |
Other pension costs | 110,243 | 106,091 |
4,747,397 | 4,513,711 |
The average number of employees during the year was NIL (2023 - NIL). |
The average number of employees by undertakings that were proportionately consolidated during the year was 99 (2023 - 95 ) . |
2024 | 2023 |
£ | £ |
Director's remuneration | 144,234 | 134,736 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Depreciation - owned assets | 387,806 | 411,947 |
Depreciation - assets on hire purchase contracts | 545,205 | 470,886 |
Profit on disposal of fixed assets | (94,263 | ) | (76,678 | ) |
Auditors' remuneration | 32,400 | 32,300 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank interest | 5,714 | 4,433 |
Bank loan interest | 60,519 | 44,673 |
Hire purchase interest | 112,559 | 89,881 |
178,792 | 138,987 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | - | 96,944 |
Deferred tax | 175,133 | 306,222 |
Tax on profit | 175,133 | 403,166 |
HUTCHINSON ENGINEERING GROUP LIMITED (REGISTERED NUMBER: 13087454) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
7. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax | 763,999 | 1,317,052 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 19 %) | 191,000 | 250,240 |
Effects of: |
Expenses not deductible for tax purposes | 4,658 | (10,510 | ) |
Capital allowances in excess of depreciation | (490,970 | ) | (127,175 | ) |
Utilisation of tax losses | 288,112 | (18,838 | ) |
Deferred tax | 175,133 | 306,222 |
Transition in tax rate | - | 3,227 |
Tax losses carry forward | 7,200 | - |
Total tax charge | 175,133 | 403,166 |
** | PROFIT BEFORE TAX FOR CURRENT YEAR ON CLIENT SCREEN OF | 763,999 |
DOES NOT AGREE TO AMOUNT ON STATEMENT OF COMPREHENSIVE INCOME OF | 763,998 |
8. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 May 2023 |
and 30 April 2024 | 24,000 |
AMORTISATION |
At 1 May 2023 |
and 30 April 2024 | 24,000 |
NET BOOK VALUE |
At 30 April 2024 | - |
At 30 April 2023 | - |
HUTCHINSON ENGINEERING GROUP LIMITED (REGISTERED NUMBER: 13087454) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
10. | PROPERTY, PLANT AND EQUIPMENT |
Group |
Improvements | Fixtures, |
Freehold | to | plant and | Motor |
property | property | equipment | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 May 2023 | 3,189,098 | 193,642 | 3,170,425 | 9,065,264 | 15,618,429 |
Additions | - | - | 100,786 | 2,658,785 | 2,759,571 |
Disposals | - | - | (207,714 | ) | (338,452 | ) | (546,166 | ) |
At 30 April 2024 | 3,189,098 | 193,642 | 3,063,497 | 11,385,597 | 17,831,834 |
DEPRECIATION |
At 1 May 2023 | 153,183 | 193,642 | 1,665,844 | 4,508,975 | 6,521,644 |
Charge for year | 20,997 | - | 252,385 | 659,629 | 933,011 |
Eliminated on disposal | - | - | (151,041 | ) | (305,789 | ) | (456,830 | ) |
At 30 April 2024 | 174,180 | 193,642 | 1,767,188 | 4,862,815 | 6,997,825 |
NET BOOK VALUE |
At 30 April 2024 | 3,014,918 | - | 1,296,309 | 6,522,782 | 10,834,009 |
At 30 April 2023 | 3,035,915 | - | 1,504,581 | 4,556,289 | 9,096,785 |
The net book value of property, plant and equipment includes £5,515,243 in respect of assets held under |
hire purchase contracts. |
Company |
Freehold |
property |
£ |
COST |
At 1 May 2023 |
and 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At 30 April 2023 |
HUTCHINSON ENGINEERING GROUP LIMITED (REGISTERED NUMBER: 13087454) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 May 2023 |
and 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At 30 April 2023 |
12. | STOCKS |
Group |
2024 | 2023 |
£ | £ |
Stocks | 1,152,650 | 1,240,606 |
Work-in-progress | 51,445 | 62,693 |
1,204,095 | 1,303,299 |
Inventories are stated after provisions for impairment of £239,502. |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 2,547,557 | 1,998,288 |
Amounts owed by group undertakings | - | - |
Amounts recoverable on contract | 81,398 | 213,380 |
Other debtors | 45,000 | 68,272 |
Prepayments | 468,813 | 404,452 |
3,142,768 | 2,684,392 |
HUTCHINSON ENGINEERING GROUP LIMITED (REGISTERED NUMBER: 13087454) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 230,693 | 116,897 |
Hire purchase contracts (see note 17) | 1,394,328 | 1,066,520 |
Trade creditors | 1,119,348 | 1,053,087 |
Amounts owed to group undertakings | - | - |
Taxation | 1,641 | 96,944 |
Other taxes and social security | 276,946 | 313,839 |
Other creditors | 285,819 | 192,408 |
Directors' current accounts | 914,127 | 945,713 | 914,077 | 945,663 |
Accrued expenses | 242,061 | 268,774 |
4,464,963 | 4,054,182 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2024 | 2023 |
£ | £ |
Bank loans (see note 16) | 597,831 | 702,983 |
Hire purchase contracts (see note 17) | 1,968,402 | 945,910 |
2,566,233 | 1,648,893 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts | 110,897 | - |
Bank loans | 119,796 | 116,897 |
230,693 | 116,897 |
Amounts falling due between one and two years: |
Bank loans - 1-2 years | 123,194 | 120,211 |
Amounts falling due between two and five years: |
Bank loans - 2-5 years | 390,945 | 381,480 |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 83,692 | 201,292 |
HUTCHINSON ENGINEERING GROUP LIMITED (REGISTERED NUMBER: 13087454) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year | 1,394,328 | 1,066,520 |
Between one and five years | 1,968,402 | 945,910 |
3,362,730 | 2,012,430 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2024 | 2023 |
£ | £ |
Bank overdraft | 110,897 | - |
Bank loans | 717,627 | 819,880 |
Hire purchase contracts | 3,362,730 | 2,012,430 |
4,191,254 | 2,832,310 |
The group bank loans and overdrafts are secured against the freehold property of the group and by fixed and floating charges on all the assets. The hire purchase liabilities are secured against the relevant asset. |
19. | FINANCIAL INSTRUMENTS |
The group has the following financial instruments: |
2024 | 2023 |
£ | £ |
Financial assets that are debt instruments measured at amortised cost |
Trade debtors | 2,547,557 | 1,998,288 |
Amounts recoverable on contract | 81,398 | 213,380 |
Other debtors | 513,813 | 472,724 |
Financial liabilities measured at amortised cost |
Bank loans and overdrafts | 230,693 | 116,897 |
Trade creditors | 1,119,348 | 1,053,088 |
Hire purchase contracts | 1,394,328 | 1,066,520 |
Other creditors | 527,880 | 461,182 |
Director's current account | 914,127 | 945,713 |
The total interest income and interest expense for financial assets and financial liabilities that are not measured at fair value through profit or loss was £nil and £178,792 (2023: £nil and £138,987) respectively. |
HUTCHINSON ENGINEERING GROUP LIMITED (REGISTERED NUMBER: 13087454) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
20. | PROVISIONS FOR LIABILITIES |
Group |
2024 | 2023 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 1,294,600 | 1,119,467 |
Group |
Deferred |
tax |
£ |
Balance at 1 May 2023 | 1,119,467 |
Provided during year | 175,133 |
Balance at 30 April 2024 | 1,294,600 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | 1 | 100 | 100 |
22. | RESERVES |
Group |
Retained | Merger |
earnings | reserves | Totals |
£ | £ | £ |
At 1 May 2023 | 1,522,350 | 4,980,545 | 6,502,895 |
Profit for the year | 588,865 | 588,865 |
At 30 April 2024 | 2,111,215 | 4,980,545 | 7,091,760 |
23. | CAPITAL COMMITMENTS |
2024 | 2023 |
£ | £ |
Contracted but not provided for in the |
financial statements | 845,940 | 1,438,650 |
24. | RELATED PARTY DISCLOSURES |
Key management personnel compensation is considered to be the same as the director's remuneration as disclosed in note 4. |