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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: I E Hutchinson


SECRETARY: Mrs J E Hutchinson


REGISTERED OFFICE: Old North Road
Weston
Newark
Nottinghamshire
NG23 6SY


REGISTERED NUMBER: 13087454 (England and Wales)


SENIOR STATUTORY AUDITOR: Rachel Rudkin FCCA


AUDITORS: Duncan & Toplis Audit Limited
14 London Road
Newark
Nottinghamshire
NG24 1TW


BANKERS: Lloyds Bank
202 High Street
Lincoln
Lincolnshire
LN5 7AP


SOLICITORS: Knights PLC
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:





I E Hutchinson - Director


16 October 2024

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
I E Hutchinson held office during the whole of the period from 1 May 2023 to the date of this report.

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:





I E Hutchinson - Director


16 October 2024

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.




Rachel Rudkin FCCA (Senior Statutory Auditor)
for and on behalf of Duncan & Toplis Audit Limited
14 London Road
Newark
Nottinghamshire
NG24 1TW

31 October 2024

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 588,865 913,886

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 2,139,201 2,139,201
Investments 11 101 101
2,139,302 2,139,302

CURRENT ASSETS
Debtors 13 535,377 595,763

CREDITORS
Amounts falling due within one year 14 2,103,379 2,134,965
NET CURRENT LIABILITIES (1,568,002 ) (1,539,202 )
TOTAL ASSETS LESS CURRENT LIABILITIES 571,300 600,100

CAPITAL AND RESERVES
Called up share capital 21 100 100
Retained earnings 571,200 600,000
SHAREHOLDERS' FUNDS 571,300 600,100

Company's (loss)/profit for the financial year (28,800 ) 600,000

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

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)

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 100 - 100
Total comprehensive income - 600,000 600,000
Balance at 30 April 2023 100 600,000 600,100

Changes in equity
Total comprehensive income - (28,800 ) (28,800 )
Balance at 30 April 2024 100 571,200 571,300

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 private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

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
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Freehold property - 2% on cost
Improvements to property - 10% on cost
Fixtures, plant and equipment - 25% on cost, 20% on cost, 15% on reducing balance and 15% on cost
Motor vehicles - 25% on reducing balance, 25% on cost and 15% on reducing balance

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 2,139,201
NET BOOK VALUE
At 30 April 2024 2,139,201
At 30 April 2023 2,139,201

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 101
NET BOOK VALUE
At 30 April 2024 101
At 30 April 2023 101


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 - - 535,377 595,763
Amounts recoverable on contract 81,398 213,380 - -
Other debtors 45,000 68,272 - -
Prepayments 468,813 404,452 - -
3,142,768 2,684,392 535,377 595,763

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 - - 1,189,302 1,189,302
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 2,103,379 2,134,965

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: £    £   
100 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.