REGISTERED NUMBER: 04897556 (England and Wales) |
HOWGILL HOLDINGS LIMITED |
GROUP STRATEGIC REPORT, DIRECTORS' REPORT AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
REGISTERED NUMBER: 04897556 (England and Wales) |
HOWGILL HOLDINGS LIMITED |
GROUP STRATEGIC REPORT, DIRECTORS' REPORT AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
HOWGILL HOLDINGS LIMITED (REGISTERED NUMBER: 04897556) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Directors' Report | 3 |
Independent Auditors' Report | 5 |
Consolidated Statement of Comprehensive Income | 8 |
Consolidated Balance Sheet | 9 |
Company Balance Sheet | 10 |
Consolidated Statement of Changes in Equity | 11 |
Company Statement of Changes in Equity | 12 |
Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Financial Statements | 15 |
HOWGILL HOLDINGS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 APRIL 2024 |
Directors: |
Registered office: |
Business address: |
Registered number: |
Auditors: |
Accountants and Statutory Auditors |
Dalton House |
9 Dalton Square |
LANCASTER |
LA1 1WD |
Bankers: | National Westminster Bank plc |
55 Main Street |
Kirkby Lonsdale |
CARNFORTH |
LA6 2WY |
Accountants: |
Dalton House |
9 Dalton Square |
LANCASTER |
LA1 1WD |
HOWGILL HOLDINGS LIMITED (REGISTERED NUMBER: 04897556) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 APRIL 2024 |
The directors present their strategic report of the company and the group for the year ended 30 April 2024. |
Review of business |
Trading remains complex and uncertainty in the UK and Global economy continues to create pressures on business. Conflict between Russia and the Ukraine give rise for concern. Further conflicts in the Middle East starting in October 2023 are also unsettling. |
Oil prices have been falling from 2022 and have continued to do so through 2023 and the start of 2024. However, inflation is running at a high level which many of us have never seen in our lifetime coupled with high interest rates causing consumers to be cautious. |
Turnover has taken a slight dip on the previous year and profits are reduced due to increased operating costs. The outdoor industry still finds trading conditions difficult on the high street especially in the cycle market. The brands Petzl and La Sportiva are performing well in their respective markets and our online sales continue to grow. Lyon manufactured Work at Height products are increasingly in demand and our training and product sales to the Work at Height and Emergency Services Industries remain strong. |
Since leaving the EU the Government introduced the UKCA mark to replace the CE mark with a plan to cease recognition of the CE mark in December 2024. The Government has made a significant shift in the implementation of the mandatory UKCA mark as its start date has been postponed indefinitely. Some pundits said that "this was an unexpected turn of events from the Government." I would suggest that this is exactly what we have come to expect from Government whoever is in power! A shambolic shower of incompetents who claim that all this is about cutting burdens for business and creating certainty for firms. I think not. Uncertainty and significant cost to business and the consumer is the outcome of these changes! |
In February 2024, we suffered a malicious cyber-attack. Fortunately, we have robust IT security in place and the threat actors did not manage to extract any data from us. They did however manage to encrypt our data. Our systems shut down so quickly that they only managed to leave the start of a ransom note! We have Cyber Insurance in place which was deployed to recover our systems. My message to all businesses out there is that you are not immune from cyber-attacks. Get the best advice possible on Cyber-crime protection, it will only get worse and it is imperative that suitable insurance is in place. |
Our Employee Ownership Status continues to evolve with more staff thinking like owners. Regular comments from around the business like "if it was my money I would..." signify the positive changes Employee Ownership is making at Lyon. |
On behalf of the board: |
HOWGILL HOLDINGS LIMITED (REGISTERED NUMBER: 04897556) |
DIRECTORS' REPORT |
FOR THE YEAR ENDED 30 APRIL 2024 |
The directors present their 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 group in the year under review was that of the distribution of outdoor sport, recreation and vertical access equipment. Secondary activities include the manufacture of some of the items distributed and safety and access training for workers at height and rescue. There are also third party logistic operations. |
Dividends |
No dividends will be distributed for the year 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. |
Financial instruments |
Objectives and policies |
The company aims to achieve steady growth and maintain a good profit margin. |
This is achieved by all means possible, including realistic pricing, strict cost controls and efficient stock management. |
Foreign exchange currency fluctuations could have a direct impact upon margins and profitability, however, foreign currency is forward bought where appropriate to minimise this particular risk. |
The company also looks to adopt pro-active policies to meet the changes required by their distributor brands as when they are required. |
Price risk, credit risk, liquidity risk and cash flow risk |
Due to realistic pricing, sensible credit limits along with good credit controls and efficient stock management these risks have been minimised by the company. |
Statement of directors' responsibilities |
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
HOWGILL HOLDINGS LIMITED (REGISTERED NUMBER: 04897556) |
DIRECTORS' REPORT |
FOR THE YEAR ENDED 30 APRIL 2024 |
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 group'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 group's auditors are aware of that information. |
Auditors |
The auditors, Xeinadin Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
On behalf of the board: |
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF |
HOWGILL HOLDINGS LIMITED |
Opinion |
We have audited the financial statements of Howgill Holdings 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 Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 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 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 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 Group Strategic Report and the Directors' Report, but does not include the financial statements and our Auditors' Report 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements. |
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF |
HOWGILL HOLDINGS LIMITED |
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 Directors' Report. |
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 directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the 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 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 directors either intend to liquidate the group or the parent 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 an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
· enquiries are made of management and those charged with governance as to whether there is any knowledge of actual, suspected, or alleged fraud, whether there is any known non-compliance with laws or regulations, and whether the company has been subject to any litigation or any legal claims. |
· audit work over the risk of management override of controls is undertaken. This includes testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. |
· analytical reviews are performed on the financial statements at all stages of the audit by comparison to prior years, budgets and expectations to ensure the reasonableness of the figures therein. |
· third party confirmation is obtained from the company's bankers to confirm bank balances, loan facilities and security held. |
· detailed audit testing is undertaken in specific areas to ensure that income and expenditure is correctly recorded and is a genuine income or expense of the company. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
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 Auditors' Report. |
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF |
HOWGILL HOLDINGS 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 an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Accountants and Statutory Auditors |
Dalton House |
9 Dalton Square |
LANCASTER |
LA1 1WD |
HOWGILL HOLDINGS LIMITED (REGISTERED NUMBER: 04897556) |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
Turnover | 3 | 16,504,524 | 17,163,019 |
Cost of sales | 11,114,982 | 11,541,032 |
Gross profit | 5,389,542 | 5,621,987 |
Distribution costs | 1,703,987 | 1,543,316 |
Administrative expenses | 3,255,146 | 3,030,162 |
4,959,133 | 4,573,478 |
430,409 | 1,048,509 |
Other operating income | 60,732 | 50,999 |
Operating profit | 5 | 491,141 | 1,099,508 |
Interest receivable and similar income | 19,789 | 9,191 |
Profit before taxation | 510,930 | 1,108,699 |
Tax on profit | 7 | 57,900 | 181,293 |
Profit for the financial year |
Other comprehensive income |
Lyon Equipment Trustees Limited | (508,105 | ) | (2,787,585 | ) |
Income tax relating to other comprehensive income |
- |
- |
Other comprehensive income for the year, net of income tax |
(508,105 |
) |
(2,787,585 |
) |
Total comprehensive income for the year | (55,075 | ) | (1,860,179 | ) |
Profit attributable to: |
Owners of the parent | 453,030 | 927,406 |
Total comprehensive income attributable to: |
Owners of the parent | (55,075 | ) | (1,860,179 | ) |
HOWGILL HOLDINGS LIMITED (REGISTERED NUMBER: 04897556) |
CONSOLIDATED BALANCE SHEET |
30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
Fixed assets |
Intangible assets | 9 | 195,577 | 240,336 |
Tangible assets | 10 | 2,992,283 | 3,065,056 |
Investments | 11 | - | - |
3,187,860 | 3,305,392 |
Current assets |
Stocks | 12 | 6,609,261 | 6,380,674 |
Debtors | 13 | 2,086,279 | 2,615,940 |
Cash at bank and in hand | 1,367,415 | 1,300,555 |
10,062,955 | 10,297,169 |
Creditors |
Amounts falling due within one year | 14 | 1,271,212 | 1,461,564 |
Net current assets | 8,791,743 | 8,835,605 |
Total assets less current liabilities | 11,979,603 | 12,140,997 |
Provisions for liabilities | 15 | 259,564 | 365,883 |
Net assets | 11,720,039 | 11,775,114 |
Capital and reserves |
Called up share capital | 16 | 500,000 | 500,000 |
Retained earnings | 17 | 11,220,039 | 11,275,114 |
Shareholders' funds | 11,720,039 | 11,775,114 |
The financial statements were approved by the Board of Directors and authorised for issue on 29 January 2025 and were signed on its behalf by: |
Mr J B Capper - Director |
HOWGILL HOLDINGS LIMITED (REGISTERED NUMBER: 04897556) |
COMPANY BALANCE SHEET |
30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
Fixed assets |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
Creditors |
Amounts falling due within one year | 14 |
Net current liabilities | ( |
) | ( |
) |
Total assets less current liabilities |
Capital and reserves |
Called up share capital | 16 |
Retained earnings | 17 |
Shareholders' funds |
Company's loss for the financial year | (100 | ) | (100 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on |
HOWGILL HOLDINGS LIMITED (REGISTERED NUMBER: 04897556) |
CONSOLIDATED 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 | 500,000 | 13,135,293 | 13,635,293 |
Changes in equity |
Profit for the year | - | 927,406 | 927,406 |
Other comprehensive income | - | (2,787,585 | ) | (2,787,585 | ) |
Total comprehensive income | - | (1,860,179 | ) | (1,860,179 | ) |
Balance at 30 April 2023 | 500,000 | 11,275,114 | 11,775,114 |
Changes in equity |
Profit for the year | - | 453,030 | 453,030 |
Other comprehensive income | - | (508,105 | ) | (508,105 | ) |
Total comprehensive income | - | (55,075 | ) | (55,075 | ) |
Balance at 30 April 2024 | 500,000 | 11,220,039 | 11,720,039 |
HOWGILL HOLDINGS LIMITED (REGISTERED NUMBER: 04897556) |
COMPANY 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 |
Changes in equity |
Deficit for the year | - | (100 | ) | (100 | ) |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 30 April 2023 |
Changes in equity |
Deficit for the year | - | (100 | ) | (100 | ) |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 30 April 2024 |
HOWGILL HOLDINGS LIMITED (REGISTERED NUMBER: 04897556) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 925,589 | (1,004,470 | ) |
Tax paid | (206,085 | ) | (298,676 | ) |
Net cash from operating activities | 719,504 | (1,303,146 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (173,828 | ) | (192,970 | ) |
Sale of tangible fixed assets | 9,500 | 20,069 |
Interest received | 19,789 | 9,191 |
Net cash from investing activities | (144,539 | ) | (163,710 | ) |
Cash flows from financing activities |
Amount introduced by directors | - | 45,000 |
Lyon Equipment Trustees Limited | (508,105 | ) | (2,787,586 | ) |
Net cash from financing activities | (508,105 | ) | (2,742,586 | ) |
Increase/(decrease) in cash and cash equivalents | 66,860 | (4,209,442 | ) |
Cash and cash equivalents at beginning of year |
2 |
1,300,555 |
5,509,997 |
Cash and cash equivalents at end of year | 2 | 1,367,415 | 1,300,555 |
HOWGILL HOLDINGS LIMITED (REGISTERED NUMBER: 04897556) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 APRIL 2024 |
1. | Reconciliation of profit before taxation to cash generated from operations |
2024 | 2023 |
£ | £ |
Profit before taxation | 510,930 | 1,108,699 |
Depreciation charges | 291,360 | 278,531 |
(Profit)/loss on disposal of fixed assets | (9,500 | ) | 5,254 |
Finance income | (19,789 | ) | (9,191 | ) |
773,001 | 1,383,293 |
Increase in stocks | (228,587 | ) | (1,751,007 | ) |
Decrease/(increase) in trade and other debtors | 529,661 | (58,995 | ) |
Decrease in trade and other creditors | (148,486 | ) | (577,761 | ) |
Cash generated from operations | 925,589 | (1,004,470 | ) |
2. | Cash and cash equivalents |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 April 2024 |
30/4/24 | 1/5/23 |
£ | £ |
Cash and cash equivalents | 1,367,415 | 1,300,555 |
Year ended 30 April 2023 |
30/4/23 | 1/5/22 |
£ | £ |
Cash and cash equivalents | 1,300,555 | 5,509,997 |
3. | Analysis of changes in net funds |
At 1/5/23 | Cash flow | At 30/4/24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,300,555 | 66,860 | 1,367,415 |
1,300,555 | 66,860 | 1,367,415 |
Total | 1,300,555 | 66,860 | 1,367,415 |
HOWGILL HOLDINGS LIMITED (REGISTERED NUMBER: 04897556) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
1. | Statutory information |
Howgill Holdings Limited is a |
2. | Accounting policies |
Basis of preparing the financial statements |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Goodwill |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Freehold property | - |
Short leasehold | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell, after making due allowance for obsolete and slow moving items. |
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 balance sheet date. |
HOWGILL HOLDINGS LIMITED (REGISTERED NUMBER: 04897556) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
2. | Accounting policies - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
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. |
3. | Turnover |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom | 16,207,669 | 16,907,557 |
Europe | 233,364 | 183,363 |
Rest of world | 63,491 | 72,099 |
16,504,524 | 17,163,019 |
4. | Employees and directors |
2024 | 2023 |
£ | £ |
Wages and salaries | 3,041,699 | 2,796,300 |
Social security costs | 304,831 | 277,796 |
Other pension costs | 207,525 | 198,386 |
3,554,055 | 3,272,482 |
HOWGILL HOLDINGS LIMITED (REGISTERED NUMBER: 04897556) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
4. | Employees and directors - continued |
The average number of employees during the year was as follows: |
2024 | 2023 |
Administration | 15 | 15 |
Distribution | 8 | 8 |
Sales and marketing | 38 | 36 |
Production | 16 | 15 |
Reprocessing | 2 | 2 |
Training | 8 | 8 |
Work and rescue | 7 | 6 |
2024 | 2023 |
£ | £ |
Directors' remuneration | 264,000 | 273,187 |
Directors' pension contributions to money purchase schemes | 32,786 | 35,327 |
The number of directors to whom retirement benefits were accruing was as follows: |
Defined benefit schemes | 4 | 7 |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc | 77,000 | 70,001 |
5. | Operating profit |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Hire of plant and machinery | 4,995 | 5,359 |
Depreciation - owned assets | 246,601 | 233,771 |
(Profit)/loss on disposal of fixed assets | (9,500 | ) | 5,254 |
Goodwill amortisation | 44,759 | 44,759 |
Foreign exchange differences | 49,258 | (11,928 | ) |
6. | Auditors' remuneration |
2024 | 2023 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
15,650 |
15,050 |
HOWGILL HOLDINGS LIMITED (REGISTERED NUMBER: 04897556) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
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 | 164,219 | 204,930 |
Deferred tax | (106,319 | ) | (23,637 | ) |
Tax on profit | 57,900 | 181,293 |
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 | 510,930 | 1,108,699 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 25 %) |
127,733 |
277,175 |
Effects of: |
Expenses not deductible for tax purposes | 12,277 | 10,568 |
Capital allowances in excess of depreciation | (101,696 | ) | (25,267 | ) |
Adjustments to tax charge in respect of previous periods | 19,586 | - |
Research and development tax credit | - | (19,591 | ) |
Change in Corporation tax rate | - | (61,592 | ) |
Total tax charge | 57,900 | 181,293 |
Tax effects relating to effects of other comprehensive income |
2024 |
Gross | Tax | Net |
£ | £ | £ |
Lyon Equipment Trustees Limited | (508,105 | ) | - | (508,105 | ) |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Lyon Equipment Trustees Limited | (2,787,585 | ) | - | (2,787,585 | ) |
8. | Individual statement of comprehensive income |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
HOWGILL HOLDINGS LIMITED (REGISTERED NUMBER: 04897556) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
9. | Intangible fixed assets |
Group |
Goodwill |
£ |
Cost |
At 1 May 2023 |
and 30 April 2024 | 545,180 |
Amortisation |
At 1 May 2023 | 304,844 |
Amortisation for year | 44,759 |
At 30 April 2024 | 349,603 |
Net book value |
At 30 April 2024 | 195,577 |
At 30 April 2023 | 240,336 |
10. | Tangible fixed assets |
Group |
Freehold | Short | Plant and |
property | leasehold | machinery |
£ | £ | £ |
Cost |
At 1 May 2023 | 3,397,144 | 115,274 | 760,941 |
Additions | - | - | 94,314 |
Disposals | - | - | - |
At 30 April 2024 | 3,397,144 | 115,274 | 855,255 |
Depreciation |
At 1 May 2023 | 1,045,894 | 115,274 | 573,497 |
Charge for year | 61,875 | - | 42,266 |
Eliminated on disposal | - | - | - |
At 30 April 2024 | 1,107,769 | 115,274 | 615,763 |
Net book value |
At 30 April 2024 | 2,289,375 | - | 239,492 |
At 30 April 2023 | 2,351,250 | - | 187,444 |
HOWGILL HOLDINGS LIMITED (REGISTERED NUMBER: 04897556) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
10. | Tangible fixed assets - continued |
Group |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
Cost |
At 1 May 2023 | 679,898 | 620,515 | 430,090 | 6,003,862 |
Additions | 21,227 | 34,650 | 23,637 | 173,828 |
Disposals | - | (25,490 | ) | - | (25,490 | ) |
At 30 April 2024 | 701,125 | 629,675 | 453,727 | 6,152,200 |
Depreciation |
At 1 May 2023 | 464,567 | 360,252 | 379,322 | 2,938,806 |
Charge for year | 23,671 | 87,888 | 30,901 | 246,601 |
Eliminated on disposal | - | (25,490 | ) | - | (25,490 | ) |
At 30 April 2024 | 488,238 | 422,650 | 410,223 | 3,159,917 |
Net book value |
At 30 April 2024 | 212,887 | 207,025 | 43,504 | 2,992,283 |
At 30 April 2023 | 215,331 | 260,263 | 50,768 | 3,065,056 |
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 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: Units 3-7, Tebay Business Park, Old Tebay, Penrith, Cumbria, CA10 3SS |
Nature of business: |
% |
Class of shares: | holding |
HOWGILL HOLDINGS LIMITED (REGISTERED NUMBER: 04897556) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
11. | Fixed asset investments - continued |
12. | Stocks |
Group |
2024 | 2023 |
£ | £ |
Stocks | 6,108,349 | 5,806,523 |
Raw materials | 500,912 | 574,151 |
6,609,261 | 6,380,674 |
13. | Debtors: amounts falling due within one year |
Group |
2024 | 2023 |
£ | £ |
Trade debtors | 1,972,550 | 2,567,969 |
Provision for doubtful debts | (423 | ) | (9,358 | ) |
Other debtors | 23,511 | 1,021 |
Prepayments | 90,641 | 56,308 |
2,086,279 | 2,615,940 |
14. | Creditors: amounts falling due within one year |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade creditors | 536,140 | 651,076 |
Tax | 164,219 | 206,085 |
Social security and other taxes | 92,526 | 85,387 |
VAT | 423,593 | 471,491 | - | - |
Accruals | 54,734 | 47,525 |
1,271,212 | 1,461,564 |
15. | Provisions for liabilities |
Group |
2024 | 2023 |
£ | £ |
Deferred tax | 259,564 | 365,883 |
HOWGILL HOLDINGS LIMITED (REGISTERED NUMBER: 04897556) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
15. | Provisions for liabilities - continued |
Group |
Deferred |
tax |
£ |
Balance at 1 May 2023 | 365,883 |
Credit to Statement of Comprehensive Income during year | (106,319 | ) |
Balance at 30 April 2024 | 259,564 |
16. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | 1 | 500,000 | 500,000 |
Ordinary shares have the following rights, preferences and restrictions: |
Each share entitles the holder to vote, to dividends and to capital distribution arising from the winding up of the company. |
17. | Reserves |
Group |
Retained |
earnings |
£ |
At 1 May 2023 | 11,275,114 |
Profit for the year | 453,030 |
Lyon Equipment Trustees Limited | (508,105 | ) |
At 30 April 2024 | 11,220,039 |
Company |
Retained |
earnings |
£ |
At 1 May 2023 |
Deficit for the year | ( |
) |
At 30 April 2024 |
18. | Pension commitments |
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £207,525 (2023 - £198,386). |
HOWGILL HOLDINGS LIMITED (REGISTERED NUMBER: 04897556) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
19. | Contingent asset |
Due to the short-term effects of the cyber attack in February 2024, Lyon Equipment Limited is in the process of making an insurance claim for the lost revenue during this time. Whilst future economic benefit is probable, there is currently no reliable estimate of the value of the economic benefit that will be received. |
20. | Directors' advances, credits and guarantees |
The following advances and credits to a director subsisted during the years ended 30 April 2024 and 30 April 2023: |
2024 | 2023 |
£ | £ |
Mr J B Capper |
Balance outstanding at start of year | - | 45,000 |
Amounts repaid | - | (45,000 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | - | - |
The outstanding balance owed by the director was repaid on 13 May 2022. |
21. | Related party disclosures |
On the 4 May 2022, the entirety of the shares of Howgill Holdings Limited (the parent company of Lyon Equipment Limited) were purchased by Lyon Equipment Trustees Limited, acting as a Trustee of the Lyon Equipment Employee Ownership Trust. The value of this transaction was £10,464,850. |
The amount of £10,464,850 is being paid by the Howgill Holdings Limited Group, along with interest. The payments of capital and interest made in the year to 30 April 2024 were £508,105 (2023 - £2,787,585). |