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REGISTERED NUMBER: 02496356 (England and Wales)















HUTCHINSON ENGINEERING SERVICES LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2024






HUTCHINSON ENGINEERING SERVICES LIMITED (REGISTERED NUMBER: 02496356)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4 to 6

Income Statement and Other Comprehensive Income 7

Statement of Financial Position 8

Statement of Changes in Equity 9

Notes to the Financial Statements 10 to 17


HUTCHINSON ENGINEERING SERVICES LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 30 APRIL 2024







DIRECTORS: I E Hutchinson
J P Hare
P Moore


SECRETARY: I E Hutchinson


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


REGISTERED NUMBER: 02496356 (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 SERVICES LIMITED (REGISTERED NUMBER: 02496356)

STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024

The directors present their strategic report 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 business during the year and its position at the year end. The review is consistent with the size and nature of the business and is written in the context of the risks and uncertainties that the company faces.

The company's turnover has increased by £753k. The company continued to trade throughout the year and has seen an improvement in profit margins.

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 company are derived from general economic uncertainty and changes to laws and regulations given the highly regulated environment the company 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 company'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 company 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 company as a whole, which are considered to be turnover and gross margin.

2024 2023 2022 2021 2020
Turnover 14,097,728 13,344,145 12,224,659 10,522,86 10,503,522
Gross profit % 18.1% 22.8% 20.0% 18.9% 17.6%
Net profit/ (loss) 557,398 949,122 592,555 447,288 52,085

The above KPIs are calculated and reviewed on a regular basis by the director and used to monitor and manage the company's performance.

Profit margins have decreased from the prior year. Overall profit before tax is £557,398 (2023: £949,122 profit). After taxation, the profit for the financial year is £382,265 (2023: £608,683).

FUTURE DEVELOPMENTS
A significant investment in plant and equipment and vehicles was made during the year totalling £2.6M and the company 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:





Director


16 October 2024

HUTCHINSON ENGINEERING SERVICES LIMITED (REGISTERED NUMBER: 02496356)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 30 APRIL 2024

The directors present their report with the financial statements of the company for the year ended 30 April 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of engineering, plant repairers and dealers, haulage and fuel sales.

DIVIDENDS
No dividends will be distributed for the period ended 30 April 2024.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 May 2023 to the date of this report.

I E Hutchinson
J P Hare
P Moore

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director 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 company's auditors are aware of that information.

ON BEHALF OF THE BOARD:





I E Hutchinson - Director


16 October 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HUTCHINSON ENGINEERING SERVICES LIMITED

Opinion
We have audited the financial statements of Hutchinson Engineering Services Limited (the 'company') for the year ended 30 April 2024 which comprise the Income Statement and Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and 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 company's affairs as at 30 April 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, 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 Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' 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 SERVICES LIMITED


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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 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 company is subject to other laws and regulations where the consequence for noncompliance 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 company's vehicle operating license . 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 SERVICES 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 SERVICES LIMITED (REGISTERED NUMBER: 02496356)

INCOME STATEMENT AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024

2024 2023
Notes £    £   

REVENUE 3 14,097,728 13,344,145

Cost of sales 11,539,442 10,298,727
GROSS PROFIT 2,558,286 3,045,418

Administrative expenses 2,086,814 2,249,758
471,472 795,660

Other operating income 264,718 292,449
OPERATING PROFIT 5 736,190 1,088,109


Interest payable and similar expenses 6 178,792 138,987
PROFIT BEFORE TAXATION 557,398 949,122

Tax on profit 7 175,133 340,439
PROFIT FOR THE FINANCIAL YEAR 382,265 608,683

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 382,265 608,683

HUTCHINSON ENGINEERING SERVICES LIMITED (REGISTERED NUMBER: 02496356)

STATEMENT OF FINANCIAL POSITION
30 APRIL 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Property, plant and equipment 9 8,509,750 6,803,779

CURRENT ASSETS
Inventories 10 822,414 931,724
Debtors 11 4,257,608 3,813,966
Cash at bank and in hand 3,134 65,103
5,083,156 4,810,793
CREDITORS
Amounts falling due within one year 12 4,089,928 3,586,332
NET CURRENT ASSETS 993,228 1,224,461
TOTAL ASSETS LESS CURRENT LIABILITIES 9,502,978 8,028,240

CREDITORS
Amounts falling due after more than one year 13 (2,566,233 ) (1,648,893 )

PROVISIONS FOR LIABILITIES 17 (1,294,600 ) (1,119,467 )
NET ASSETS 5,642,145 5,259,880

CAPITAL AND RESERVES
Called up share capital 18 100 100
Retained earnings 19 5,642,045 5,259,780
SHAREHOLDERS' FUNDS 5,642,145 5,259,880

The financial statements were approved by the Board of Directors and authorised for issue on 16 October 2024 and were signed on its behalf by:





I E Hutchinson - Director


HUTCHINSON ENGINEERING SERVICES LIMITED (REGISTERED NUMBER: 02496356)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 May 2022 100 5,251,097 5,251,197

Changes in equity
Dividends - (600,000 ) (600,000 )
Total comprehensive income - 608,683 608,683
Balance at 30 April 2023 100 5,259,780 5,259,880

Changes in equity
Total comprehensive income - 382,265 382,265
Balance at 30 April 2024 100 5,642,045 5,642,145

HUTCHINSON ENGINEERING SERVICES LIMITED (REGISTERED NUMBER: 02496356)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

1. STATUTORY INFORMATION

Hutchinson Engineering Services 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 Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102, not to disclose related party transactions with wholly owned subsidiaries within the group.

The company has also taken advantage of the following reduced disclosure exemptions:
- the requirements of Section 7 Statement of Cash Flows;
- the requirements of Section 11 Financial Instruments paragraphs 11.41 to 11.48.
- the requirement of Section 33 Related Party Disclosures paragraph 33.7.

The disclosures above are incorporated within the group consolidated financial statements.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates
In the application of the Company'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 SERVICES LIMITED (REGISTERED NUMBER: 02496356)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

2. ACCOUNTING POLICIES - continued

Property, plant and 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 - 15% on reducing balance
Motor vehicles - 25% on reducing balance 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 company 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 company. Unbilled revenue is included in debtors.

The company 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.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the income statement, 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 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 or finance leases are capitalised in the statement of financial position. 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 future payments is treated as a liability.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

HUTCHINSON ENGINEERING SERVICES LIMITED (REGISTERED NUMBER: 02496356)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

2. ACCOUNTING POLICIES - continued

Financial instruments
The company has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments.

Basic financial assets, including trade and other debtors and cash and bank balances 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, including trade and other creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

3. REVENUE

The revenue and profit before taxation are attributable to the one principal activity of the company.

An analysis of revenue by geographical market is given below:

2024 2023
£    £   
United Kingdom 14,097,728 13,344,145
14,097,728 13,344,145

4. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 4,194,348 3,956,015
Social security costs 446,805 442,848
Other pension costs 110,389 105,882
4,751,542 4,504,745

The average number of employees during the year was as follows:
2024 2023

Office and management 6 9
Manufacturing 36 34
Sales and distribution 42 40
84 83

HUTCHINSON ENGINEERING SERVICES LIMITED (REGISTERED NUMBER: 02496356)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

4. EMPLOYEES AND DIRECTORS - continued

2024 2023
£    £   
Directors' remuneration 114,344 106,813

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 3 3

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024 2023
£    £   
Depreciation - owned assets 345,520 384,237
Depreciation - assets on hire purchase contracts 545,205 470,886
Profit on disposal of fixed assets (87,567 ) (70,678 )
Auditors' remuneration 24,400 25,300

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Overdraft 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 - 34,217

Deferred tax 175,133 306,222
Tax on profit 175,133 340,439

HUTCHINSON ENGINEERING SERVICES LIMITED (REGISTERED NUMBER: 02496356)

NOTES TO THE 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 higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit before tax 557,398 949,122
Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 -
19%)

139,350

180,333

Effects of:
Expenses not deductible for tax purposes 6,685 4,396
Income not taxable for tax purposes (2,027 ) (14,906 )
Capital allowances in excess of depreciation (459,839 ) (128,371 )
Utilisation of tax losses - (8,875 )
Deferred tax 175,133 306,222
Transition in tax rate - 1,640
Tax losses carried forward 288,112 -
Tax losses surrendered to group 27,719 -
Total tax charge 175,133 340,439

8. DIVIDENDS
2024 2023
£    £   
Ordinary shares of £1 each
Interim - 600,000

9. PROPERTY, PLANT AND EQUIPMENT
Improvements Fixtures,
Freehold to plant and Motor
property property equipment vehicles Totals
£    £    £    £    £   
COST
At 1 May 2023 1,049,897 193,642 3,065,422 8,881,921 13,190,882
Additions - - 78,104 2,604,229 2,682,333
Disposals - - (207,714 ) (325,602 ) (533,316 )
At 30 April 2024 1,049,897 193,642 2,935,812 11,160,548 15,339,899
DEPRECIATION
At 1 May 2023 153,183 193,642 1,587,514 4,452,764 6,387,103
Charge for year 20,997 - 225,251 644,477 890,725
Eliminated on disposal - - (151,041 ) (296,638 ) (447,679 )
At 30 April 2024 174,180 193,642 1,661,724 4,800,603 6,830,149
NET BOOK VALUE
At 30 April 2024 875,717 - 1,274,088 6,359,945 8,509,750
At 30 April 2023 896,714 - 1,477,908 4,429,157 6,803,779

The net book value of property, plant and equipment includes £ 5,515,243 (2023 - £ 3,579,814 ) in respect of assets held under hire purchase contracts.

HUTCHINSON ENGINEERING SERVICES LIMITED (REGISTERED NUMBER: 02496356)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

10. INVENTORIES
2024 2023
£    £   
Raw materials and consumables 822,414 931,724

Inventories are stated after provisions for impairment of £239,502.

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 2,331,615 1,770,939
Amounts owed by group undertakings 1,329,015 1,314,044
Amounts recoverable on contract 130,663 213,380
Other debtors 20,000 117,536
Prepayments and accrued income 446,315 398,067
4,257,608 3,813,966

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 14) 230,693 116,897
Hire purchase contracts (see note 15) 1,394,328 1,066,520
Trade creditors 1,036,572 999,475
Amounts owed to group undertakings 659,004 640,875
Corporation tax - 34,217
Other taxes and social security 271,631 304,394
Other creditors 285,820 192,408
Accruals and deferred income 211,880 231,546
4,089,928 3,586,332

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024 2023
£    £   
Bank loans (see note 14) 597,831 702,983
Hire purchase contracts (see note 15) 1,968,402 945,910
2,566,233 1,648,893

14. LOANS

An analysis of the maturity of loans is given below:

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

HUTCHINSON ENGINEERING SERVICES LIMITED (REGISTERED NUMBER: 02496356)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

14. LOANS - continued
2024 2023
£    £   
Amounts falling due in more than five years:
Repayable by instalments
Bank loan > 5 years 83,692 201,292

15. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

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

16. SECURED DEBTS

The following secured debts are included within creditors:

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 bank loans and overdraft are secured against the freehold property of the company and by fixed and floating charges on all the assets. The hire purchase liabilities are secured against the relevant asset.

17. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax
Accelerated capital allowances 1,294,600 1,119,467

Deferred
tax
£   
Balance at 1 May 2023 1,119,467
Provided during year 175,133
Charge to Income Statement
Balance at 30 April 2024 1,294,600

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
100 Ordinary £1 100 100

HUTCHINSON ENGINEERING SERVICES LIMITED (REGISTERED NUMBER: 02496356)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

19. RESERVES
Retained
earnings
£   

At 1 May 2023 5,259,780
Profit for the year 382,265
At 30 April 2024 5,642,045

20. CAPITAL COMMITMENTS
2024 2023
£    £   
Contracted but not provided for in the
financial statements 845,940 1,438,650

21. RELATED PARTY DISCLOSURES

Key management personnel compensation is considered to be the same as director's remuneration as disclosed in note 4.

22. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is Hutchinson Engineering GroupLimited.