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Registered number: 12813623









HONTAN HOLDINGS LIMITED









GROUP ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2024

 
HONTAN HOLDINGS LIMITED
 
 
COMPANY INFORMATION


Directors
Montague George 
Daniel Beckles 




Company secretary
Montague George



Registered number
12813623



Registered office
St Mary's House
Netherhampton

Salisbury

Wiltshire

SP2 8PU




Independent auditors
Clifford Fry & Co LLP (Statutory auditors)

St Mary's House

Netherhampton

Salisbury

Wiltshire

SP2 8PU





 
HONTAN HOLDINGS LIMITED
 

CONTENTS



Page
Group strategic report
1 - 5
Directors' report
6 - 7
Independent auditors' report
8 - 12
Consolidated statement of income and retained earnings
13
Consolidated balance sheet
14 - 15
Company balance sheet
16 - 17
Consolidated statement of cash flows
18 - 19
Consolidated analysis of net debt
20
Notes to the financial statements
21 - 41


 
HONTAN HOLDINGS LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2024

Mission statement
 
We remain focused on delivering our vision for employees, stakeholders, customers and the planet:
"We believe buying furniture should be simple. It should leave you happy, with money in your pocket, excited to get home, to hang out at home and entertain those you love.
We believe everyone has the right to a happy home - one they take pride in, kitted out to meet their needs in a hassle-free and low-impact way.
Our values of collaboration, transparency, integrity, innovation - alongside a desire to simplify the complex and a 'think small aim big' approach - are the enablers to make us the dependable, accessible destination for stylish furniture that delivers on our beliefs.”

Organisational structure and governance

The Board convenes on a quarterly basis and is chaired by the MD. The Board consists of two working directors and a finance controller. We consider key financial metrics and market conditions to set the financial course for the business. The senior leadership team meets once a quarter to discuss the commercial areas of the business, including: HR, Finance, Growth and Professional services. Weekly meetings are held with key managers, with representatives from each department including: Finance, Marketing, Operations and Tech; we discuss evolving opportunities and operational topics.

Review of the business
 
The 2023-2024 financial year marked our second full year operating from the Chippenham distribution centre. We continued to shift from foundational consolidation to focused growth initiatives. With our teams and structures now well-aligned, we initiated several key projects aimed at enhancing our market position and operational efficiency. Significant additions were made to our team; including a Financial Director, Head of Product, HR Manager, and Data analyst. These additions have strengthened our ability to scale and adapt, representing a pivotal step toward a robust and sustainable growth platform.
While the prior year brought relative stability to the supply chain, this year presented new challenges, particularly disruptions driven by conflicts in the Middle East. These challenges led to shipping delays and rising costs, which placed pressure on our margins. However, our strong supplier relationships and proactive planning mitigated some of the adverse impacts. Domestically, the environment remained complex, shaped by political elections, slow economic growth, elevated interest rates, and persistent cost of living concerns. Despite these headwinds, our adaptability and resilience have positioned us to navigate this dynamic landscape while maintaining focus on our long-term growth strategy.
• Turnover: Increased by 20.6% to £25.6m compared to the prior year.
• Gross Profit: Gross Profit Margin % increased 5.5% to 29.42%
• Net Profit: Net Profit Margin % increased by 7.25% to 2.36%
It is pleasing to see a positive moment on these three key indicators. We attribute these positive movements to work on sustained growth initiatives alongside stabilising production and shipping costs. 

Page 1

 
HONTAN HOLDINGS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024

Other notable developments/events

Growth in the US:
We have continued to see sales in the US go from strength to strength, growing by 179%. We have launched over 100 products in the market, set up a US compliance testing framework, and expanded our reach through Amazon US. Throughout this period, we have maintained a risk-averse approach, understanding that the US is still new territory for us, and we are cautious not to overexpose ourselves given the current macro environment.
• Sustainability Initiatives:
Our key sustainability initiative has been transitioning to more eco-friendly packaging with a ‘no plastic’ first approach, significantly reducing plastic usage and incorporating recycled materials. Our 2024 garden furniture range completed a full material transition, retaining only essential plastics. We achieved FSC accreditation for the second consecutive year and are working with a sourcing partner to further improve our supply chain.
• Product Expansion:
The addition of a new Head of Product in early 2024 prompted a significant restructuring of our product team, establishing a framework that supports long-term, sustainable growth. This year, we launched 90 new products, many of which have been successful. Our team has a robust pipeline in place, well-positioned to leverage the benefits of this new structure in the coming years.
• People and Culture:
We remain committed to ensuring Furniturebox (trading name of Monty Trading Limited) is one of the best places to work. We strive to foster an environment of openness, excellence, and enjoyment. If employees dread Monday mornings, we know we have failed. Senior teams review feedback from colleagues regularly, reading all feedback given monthly by team members. We remain consistent with our benefits for both hands on and office colleagues. Additionally, we set a record this year in number and value donations of furniture to our local partner KFR, which supports underprivileged households in the area.
• Operational Efficiency:
Following the significant adjustments in 2022-2023, our work locations have now fully stabilised. Our distribution centre is running as intended, with capacity available for further expansion, and incremental efficiency improvements are being implemented continuously.
• Technology Advancements:
We made significant strides in internal technology, launching an extranet, knowledge management tools, and adopting AI-driven tools. We implemented an IPAS system for greater control over integrations and added roles for tech support and data analytics.
• Customer Focus:
Our Customer Success Team has continued to deliver high-quality, timely service, achieving an excellent net promoter score of 80. This year, we transitioned to Zendesk, introduced an AI chatbot, and launched Business WhatsApp to expand contact options. A new 'Customer First' process ensures swift resolution of customer issues, reducing costs and improving experiences. Our knowledge base now includes over 1,500 internal articles, with a growing focus on external resources to encourage self-service

Page 2

 
HONTAN HOLDINGS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024

Future developments
 
Our core growth strategy remains consistent, but our capacity to leverage it has strengthened considerably as we head into the next financial period. With a team that has grown substantially in experience, we are now positioned with deeper insights and a refined approach to identifying and capitalising on new opportunities. Enhanced analytics and the time invested in analysis have sharpened our ability to uncover valuable insights, further empowering us to make data-driven decisions that align closely with our strategic priorities.
In addition to our diversified revenue streams and an expanding product portfolio, we have significantly bolstered our operational resilience over the past year. These factors, coupled with our ongoing commitment to a customer-centric model and our highly efficient distribution capabilities, give us confidence that we will see accelerated momentum in our growth flywheel.
Early trading indicates strong trading resilience, despite mixed signals in the market. We are positive about the prospects for the next financial period.
Our focus will continue in these key areas:
• Product Resourcing: We initiated a resourcing project in mid-2024 to diversify sourcing, mitigate tariffs, and safeguard supply chains.
• Product Ranges: Our team will focus on diversifying the product portfolio, addressing category imbalances.
• Compliance: We will build upon our existing standards, developing proprietary standards monitored by on-the-ground quality teams.
• US Market Expansion: Despite macro concerns, we remain well-positioned for continued US growth across existing and new channels.
• Sustainability: We have scoped an external partner to support our sustainability goals, and will initiate recommendations from their audit.
• People: Continued focus on employee feedback and development to maintain a positive work environment.
• Brand: Continue exploration moulding, marketing and communicating our brand and offering to ensure long term customer loyalty and brand equity.

Page 3

 
HONTAN HOLDINGS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024

Principal risks and uncertainties
 
Quality of Service
We rigorously monitor KPIs to uphold exceptional service standards, with weekly reviews ensuring consistent performance. Our Trustpilot rating remains an outstanding 4.9/5 for the fifth consecutive year. Supported by strong operations, precise reporting, and reliable infrastructure, we have minimised service delivery risks, ensuring consistent excellence.
Market Risks
Our diversification across products, geographies, and customer bases continues to mitigate market risks. Despite economic turbulence, our strong performance demonstrates the resilience of this approach and its ability to navigate challenging conditions, positioning us well for future uncertainties.
Macro Risks
We actively address macro risks, including FX and shipping challenges, through strategic forward planning and robust key operational relationships, ensuring minimal disruption to performance.
Colleague Quality
Key director-level hires in marketing and finance, along with low staff turnover, have strengthened our leadership team. Enhanced team alignment and the appointment of a dedicated HR Manager have boosted engagement and ensured every team member’s voice is valued. These developments reinforce our reputation as an employer of choice and underpin operational stability.

Financial key performance indicators
 
• Sales Growth: 20.64% (2023: 33.23%)
• Gross Profit Margin: 29.42% (2023: 23.95%)
• Operating Profit Margin: 2.03% (2023: -3.06%) 
• Net Current Assets £3,358,660 (2023: £2,529,721)
• Debtor days: 63 (2023: 62)
• Creditor days: 101 (2023: 76)
• Current ratio: 1.67 (2023: 1.75) 
• Cash ratio: 0.03 (2023: 0.10)
• Earnings per share: £54.35 (2023: -£93.75)

Page 4

 
HONTAN HOLDINGS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024


This report was approved by the board on 4 February 2025 and signed on its behalf.



................................................
Montague George
Secretary

Page 5

 
HONTAN HOLDINGS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2024

The Directors present their report and the financial statements for the year ended 31 July 2024.

Directors' responsibilities statement

The Directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Group's financial statements 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 Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £603,329 (2023 - loss of £1,040,621).

The directors have paid a final dividend of £140,150 (2023 - £150,000).

Directors

The Directors who served during the year were:

Montague George 
Daniel Beckles 

Future developments

The Group continues to trade successfully with no material future developments.

Page 6

 
HONTAN HOLDINGS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024

Disclosure of information to auditors

Each of the persons who are Directors at the time when this Directors' report is approved has confirmed that:
 
so far as the Director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

The auditorsClifford Fry & Co LLP (Statutory auditors)will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 4 February 2025 and signed on its behalf.
 





................................................
Montague George
Secretary

Page 7

 
HONTAN HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HONTAN HOLDINGS LIMITED
 

Opinion


We have audited the financial statements of Hontan Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 July 2024, which comprise the Consolidated statement of income and retained earnings, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows and the related notes, including a summary of significant accounting policiesThe 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's affairs as at 31 July 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 United Kingdom, including the Financial Reporting Council'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 or 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.


Page 8

 
HONTAN HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HONTAN HOLDINGS LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The Directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion 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.


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 in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept 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.


Page 9

 
HONTAN HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HONTAN HOLDINGS LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 6, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the Directors are responsible for assessing the 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.


Page 10

 
HONTAN HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HONTAN HOLDINGS LIMITED (CONTINUED)


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 Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the Group, including obtaining details on how they identify and comply with laws and regulations and whether they were aware of any non-compliance, how they detect and respond to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud, and finally the controls they have in order to mitigate risks of fraud or non-compliance with laws and regulations.
We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, intentional misrepresentations.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: revenue and profit recognition.
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to,  the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud, and enquiries with management.
As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.


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.


Page 11

 
HONTAN HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HONTAN HOLDINGS LIMITED (CONTINUED)


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 2006Our 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.





Simon Allenby FCA (Senior statutory auditor)
  
for and on behalf of
Clifford Fry & Co LLP (Statutory auditors)
 
St Mary's House
Netherhampton
Salisbury
Wiltshire
SP2 8PU

4 February 2025
Page 12

 
HONTAN HOLDINGS LIMITED
 
 
CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 JULY 2024

2024
2023
Note
£
£

  

Turnover
 4 
25,617,335
21,233,813

Cost of sales
  
(18,080,430)
(16,147,567)

Gross profit
  
7,536,905
5,086,246

Distribution costs
  
(2,164,440)
(1,408,601)

Administrative expenses
  
(4,989,478)
(4,329,893)

Other operating income
 6 
2,077
1,597

Gain/(loss) from changes in fair value of foreign exchange forward contracts
  
135,667
(455,546)

Operating profit/(loss)
 7 
520,731
(1,106,197)

Interest receivable and similar income
 11 
12,560
7,014

Interest payable and similar expenses
 12 
(97,611)
(76,548)

Profit/(loss) before tax
  
435,680
(1,175,731)

Tax on profit/(loss)
 13 
167,649
135,110

Profit/(loss) after tax
  
603,329
(1,040,621)

  

  

Retained earnings at the beginning of the year
  
4,256,551
5,447,172

Profit/(loss) for the year attributable to the owners of the parent
  
603,329
(1,040,621)

Dividends declared and paid
 14 
(140,150)
(150,000)

Retained earnings at the end of the year
  
4,719,730
4,256,551

There were no recognised gains and losses for 2024 or 2023 other than those included in the consolidated statement of income and retained earnings.

The notes on pages 21 to 41 form part of these financial statements.

Page 13

 
HONTAN HOLDINGS LIMITED
REGISTERED NUMBER: 12813623

CONSOLIDATED BALANCE SHEET
AS AT 31 JULY 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 15 
125,038
134,818

Tangible assets
 16 
2,526,305
3,204,233

  
2,651,343
3,339,051

Current assets
  

Stocks
 18 
3,759,446
1,962,458

Debtors: amounts falling due within one year
 19 
4,442,667
3,586,594

Cash at bank and in hand
 20 
160,854
340,168

  
8,362,967
5,889,220

Creditors: amounts falling due within one year
 21 
(5,004,307)
(3,359,499)

Net current assets
  
 
 
3,358,660
 
 
2,529,721

Total assets less current liabilities
  
6,010,003
5,868,772

Creditors: amounts falling due after more than one year
 22 
(696,749)
(1,124,679)

Provisions for liabilities
  

Deferred taxation
 25 
(582,424)
(476,442)

  
 
 
(582,424)
 
 
(476,442)

Net assets
  
4,730,830
4,267,651


Capital and reserves
  

Called up share capital 
 26 
11,100
11,100

Profit and loss account
 27 
4,719,730
4,256,551

  
4,730,830
4,267,651


Page 14

 
HONTAN HOLDINGS LIMITED
REGISTERED NUMBER: 12813623
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 JULY 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 4 February 2025.




................................................
Montague George
................................................
Daniel Beckles
Director
Director

The notes on pages 21 to 41 form part of these financial statements.

Page 15

 
HONTAN HOLDINGS LIMITED
REGISTERED NUMBER: 12813623

COMPANY BALANCE SHEET
AS AT 31 JULY 2024

2024
2023
Note
£
£

Fixed assets
  

Investments
 17 
11,000
11,000

  
11,000
11,000

Current assets
  

Debtors: amounts falling due within one year
 19 
2,035,790
2,044,590

Cash at bank and in hand
 20 
880
609

  
2,036,670
2,045,199

Creditors: amounts falling due within one year
 21 
(8,040)
(137,460)

Net current assets
  
 
 
2,028,630
 
 
1,907,739

Total assets less current liabilities
  
2,039,630
1,918,739

  

  

Net assets
  
2,039,630
1,918,739


Capital and reserves
  

Called up share capital 
 26 
11,100
11,100

Profit and loss account brought forward
  
1,907,639
1,917,730

Profit for the year
  
261,041
139,909

Other changes in the profit and loss account

  

(140,150)
(150,000)

Profit and loss account carried forward
  
2,028,530
1,907,639

  
2,039,630
1,918,739


Page 16

 
HONTAN HOLDINGS LIMITED
REGISTERED NUMBER: 12813623
    
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 JULY 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 4 February 2025.




................................................
Montague George
................................................
Daniel Beckles
Director
Director

The notes on pages 21 to 41 form part of these financial statements.

Page 17

 
HONTAN HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2024

2024
2023
£
£

Cash flows from operating activities

Profit/(loss) for the financial year
603,329
(1,040,621)

Adjustments for:

Amortisation of intangible assets
41,280
14,312

Depreciation of tangible assets
723,760
655,307

Loss on disposal of tangible assets
2,666
6,577

Interest paid
97,611
76,548

Interest received
(12,560)
(7,014)

Taxation charge
(167,649)
(135,110)

(Increase)/decrease in stocks
(1,796,988)
971,297

(Increase) in debtors
(918,639)
(940,546)

Increase/(decrease) in creditors
1,786,054
(1,422,106)

Net fair value (gains)/losses recognised in P&L
(135,667)
455,546

Corporation tax received/(paid)
336,197
(6,806)

Net cash generated from operating activities

559,394
(1,372,616)


Cash flows from investing activities

Purchase of intangible fixed assets
(31,500)
(25,052)

Purchase of tangible fixed assets
(48,498)
(493,071)

Sale of tangible fixed assets
-
37,783

Interest received
12,560
7,014

HP interest paid
(90,787)
(76,548)

Net cash from investing activities

(158,225)
(549,874)
Page 18

 
HONTAN HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024


2024
2023

£
£



Cash flows from financing activities

Repayment of/new finance leases
(433,509)
1,543,682

Dividends paid
(140,150)
(150,000)

Interest paid
(6,824)
-

Net cash used in financing activities
(580,483)
1,393,682

Net (decrease) in cash and cash equivalents
(179,314)
(528,808)

Cash and cash equivalents at beginning of year
340,168
868,976

Cash and cash equivalents at the end of year
160,854
340,168


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
160,854
340,168

160,854
340,168


The notes on pages 21 to 41 form part of these financial statements.

Page 19

 
HONTAN HOLDINGS LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 JULY 2024




At 1 August 2023
Cash flows
At 31 July 2024
£

£

£

Cash at bank and in hand

340,168

(179,314)

160,854

Debt due within 1 year

(167,042)

133,397

(33,645)

Finance leases

(1,558,188)

433,509

(1,124,679)


(1,385,062)
387,592
(997,470)

The notes on pages 21 to 41 form part of these financial statements.

Page 20

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

1.


General information

The Company is a private company limited by share capital, registered and incorporated in England and Wales. The registered office is St Mary's House, Netherhampton, Salisbury, Wiltshire, SP2 8PU. The Company's principal place of business is Unit 6, St Modwen's Park, Chippenham, SN15 5BD. The principal activity of the Group is that of online retail.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of income and retained earnings in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of income and retained earnings from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 December 2014.

Page 21

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.5

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 22

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

2.Accounting policies (continued)

 
2.6

Leased assets: the Group as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Group in independently administered funds.

Page 23

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

2.Accounting policies (continued)

 
2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


 
2.11

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Goodwill
-
5
years
Other intangible fixed assets
-
5
years

 
2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 24

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

2.Accounting policies (continued)


2.12
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance and straight line basis.

Depreciation is provided on the following basis:

Warehouse racking & storage
-
10 years straight line
Fixtures, fittings & equipment
-
15% reducing balance
Warehouse equipment & machinery
-
5 years straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Consolidated statement of income and retained earnings for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 
2.14

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.15

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 25

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

2.Accounting policies (continued)

 
2.16

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.17

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.18

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 26

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

2.Accounting policies (continued)

 
2.19

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Page 27

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

2.Accounting policies (continued)

 
2.20

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The Directors do not believe that the financial statements are materially impacted by their use of judgements.


4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Retail sales
25,617,335
21,233,813

25,617,335
21,233,813


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
18,932,230
18,739,609

Europe
707,041
349,930

Rest of the world
5,978,064
2,144,274

25,617,335
21,233,813



5.


Foreign currency transactions

Exchange differences recognised in profit and loss for the year, except for those arising on financial instruments measured at fair value through profit and loss, amounted to losses of £406,094 (2023 - £411,292).

Page 28

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

6.


Other operating income

2024
2023
£
£

Insurance claims receivable
1,618
1,411

Sundry income
459
186

2,077
1,597



7.


Operating profit/(loss)

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

2024
2023
£
£

Exchange differences
406,094
411,292


8.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
3,660
3,960

Page 29

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

9.


Employees

Staff costs, including Directors' remuneration, were as follows:


Group
Group
2024
2023
£
£


Wages and salaries
2,303,294
1,700,285

Social security costs
209,411
158,189

Cost of defined contribution scheme
48,732
34,379

2,561,437
1,892,853


The average monthly number of employees, including the Directors, during the year was as follows:


        2024
        2023
            No.
            No.







Employees
74
58


10.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
41,826
21,037

41,826
21,037



11.


Interest receivable

2024
2023
£
£


Other interest receivable
12,560
7,014

12,560
7,014

Page 30

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

12.


Interest payable and similar expenses

2024
2023
£
£


Finance leases and hire purchase contracts
90,787
76,548

Other interest payable
6,824
-

97,611
76,548


13.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
5,760
-

Adjustments in respect of previous periods
(279,391)
-


Total current tax
(273,631)
-

Deferred tax


Origination and reversal of timing differences
105,982
(135,110)

Total deferred tax
105,982
(135,110)


Tax on profit/(loss)
(167,649)
(135,110)
Page 31

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
 
13.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 19% to 31 March 2023 and 25% from 1 April 2023). The differences are explained below:

2024
2023
£
£


Profit/(loss) on ordinary activities before tax
435,680
(1,175,731)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
108,920
(246,968)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
6,415
2,698

Capital allowances for year in excess of depreciation
159,855
24,768

Utilisation of tax losses
(267,987)
-

Adjustments to tax charge in respect of prior periods
(279,391)
-

Other timing differences leading to an increase (decrease) in taxation
105,983
(135,111)

Capital gains
-
459

Unrelieved tax losses carried forward
-
219,044

Marginal relief
(1,444)
-

Total tax charge for the year
(167,649)
(135,110)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


14.


Dividends

2024
2023
£
£


Dividends on Ordinary A shares
70,075
75,000


Dividends on Ordinary B shares
70,075
75,000

140,150
150,000

Page 32

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

15.


Intangible assets

Group and Company





Other intangible assets
Goodwill
Total

£
£
£



Cost


At 1 August 2023
183,399
10,000
193,399


Additions
31,500
-
31,500



At 31 July 2024

214,899
10,000
224,899



Amortisation


At 1 August 2023
48,581
10,000
58,581


Charge for the year on owned assets
41,280
-
41,280



At 31 July 2024

89,861
10,000
99,861



Net book value



At 31 July 2024
125,038
-
125,038



At 31 July 2023
134,818
-
134,818



Page 33

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

16.


Tangible fixed assets

Group






Warehouse equipment and machinery
Fixtures, fittings & equipment
Warehouse racking and storage
Total

£
£
£
£



Cost or valuation


At 1 August 2023
3,189,451
205,773
626,985
4,022,209


Additions
8,753
39,745
-
48,498


Disposals
-
(2,844)
-
(2,844)



At 31 July 2024

3,198,204
242,674
626,985
4,067,863



Depreciation


At 1 August 2023
645,509
67,151
105,316
817,976


Charge for the year on owned assets
159,689
22,619
2,699
185,007


Charge for the year on financed assets
478,753
-
60,000
538,753


Disposals
-
(178)
-
(178)



At 31 July 2024

1,283,951
89,592
168,015
1,541,558



Net book value



At 31 July 2024
1,914,253
153,082
458,970
2,526,305



At 31 July 2023
2,543,942
138,622
521,669
3,204,233

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2024
2023
£
£



Warehouse racking and storage
443,333
503,333

Warehouse equipment & machinery
1,427,331
1,906,084

1,870,664
2,409,417

Page 34

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

17.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 August 2023
11,000



At 31 July 2024
11,000





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

Monty Trading Limited
St Mary's House, Netherhampton, Salisbury, Wiltshire, SP2 8PU
Ordinary shares
100%

The aggregate of the share capital and reserves as at 31 July 2024 and the profit or loss for the year ended on that date for the subsidiary undertaking were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)

Monty Trading Limited
2,702,200
612,288


18.


Stocks

Group
Group
2024
2023
£
£

Finished goods and goods for resale
3,759,446
1,962,458

3,759,446
1,962,458


Page 35

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

19.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Trade debtors
1,077,299
1,163,354
-
-

Amounts owed by group undertakings
-
-
2,035,790
2,044,590

Other debtors
2,938,114
2,118,372
-
-

Prepayments and accrued income
427,254
304,868
-
-

4,442,667
3,586,594
2,035,790
2,044,590


Included in other Group debtors is a directors' loan account balance of £715 (2023 - £Nil) in relation to Daniel Beckles. 


20.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Cash at bank and in hand
160,854
340,168
880
609

160,854
340,168
880
609


Page 36

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

21.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Trade creditors
3,032,102
1,277,320
-
-

Other taxation and social security
571,832
591,256
-
-

Obligations under finance lease and hire purchase contracts
427,930
433,509
-
-

Other creditors
327,177
390,983
50
129,900

Accruals and deferred income
555,594
441,092
7,990
7,560

Financial instruments
89,672
225,339
-
-

5,004,307
3,359,499
8,040
137,460



The following liabilities were secured:
Group
Group
2024
2023
£
£

Hire purchase contracts
427,930
433,509

427,930
433,509

Details of security provided:

The hire purchase contracts are secured over the assets concerned.

Page 37

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

22.


Creditors: Amounts falling due after more than one year

Group
Group
2024
2023
£
£

Net obligations under finance leases and hire purchase contracts
696,749
1,124,679

696,749
1,124,679



The following liabilities were secured:
Group
Group
2024
2023
£
£


Hire purchase contracts
696,749
1,124,679

696,749
1,124,679

Details of security provided:

The hire purchase contracts are secured over the assets concerned.




23.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2024
2023
£
£

Within one year
427,930
433,509

Between 1-5 years
696,749
1,124,679

1,124,679
1,558,188

Page 38

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

24.


Financial instruments

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Financial assets

Cash at bank and in hand
160,854
340,168
880
609


Financial liabilities

Derivative financial instruments measured at fair value through profit or loss
(89,672)
(225,339)
-
-


Financial assets measured at fair value through profit or loss comprise cash at bank and in hand and derivatives.


Derivative financial instruments measured at fair value through profit or loss comprise foreign exchange forward contracts.


The Group enters into foreign exchange forward contracts for its supplier purchases. At the year end an external valuation is obtained and contracts are adjusted to fair value. Fair value movements are recognised in the profit and loss account for the period.


25.


Deferred taxation


Group



2024
2023


£

£






At beginning of year
(476,442)
(611,552)


Charged to the profit or loss
(105,982)
135,110



At end of year
(582,424)
(476,442)

Page 39

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
 
25.Deferred taxation (continued)

Company


2024
2023






At end of year
-
-
The provision for deferred taxation is made up as follows:

Group
Group
2024
2023
£
£

Accelerated capital allowances
(582,424)
(734,615)

Tax losses carried forward
-
258,173

(582,424)
(476,442)


26.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



8,325 (2023 - 8,325) Ordinary A shares of £1 each
8,325
8,325
2,775 (2023 - 2,775) Ordinary B shares of £1 each
2,775
2,775

11,100

11,100



27.


Reserves

Profit and loss account

Includes all current and prior period profits and losses.


28.


Pension commitments

The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £48,732 (2023 - £34,379). Contributions totalling £11,491 (2023 - £7,630) were payable to the fund at the balance sheet date and are included in creditors.

Page 40

 
HONTAN HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

29.


Commitments under operating leases

At 31 July 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2024
2023
£
£

Not later than 1 year
808,849
835,065

Later than 1 year and not later than 5 years
749,906
745,049

Later than 5 years
668,647
668,647

2,227,402
2,248,761

Lease payments recognised in the year as an expense amounted to £770,407 (2023 - £727,488).


30.


Controlling party

The Company is controlled by the Director, Montague George, by virtue of his shareholding, as described in the Directors' report.

Page 41