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Registered number: SC015281










HOGGS OF FIFE LIMITED
DIRECTORS' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

 
HOGGS OF FIFE LIMITED
 

COMPANY INFORMATION


Directors
Mr R F Gibson 
Mrs C M McLaren 
Mrs A E Lang 
Mrs A M Gibson 
Mr S Taylor 
Mr S J Jepson (appointed 23 August 2023)




Company secretary
Mr J S Lamond



Registered number
SC015281



Registered office
Eden Valley Business Park

Cupar

KY154RB




Independent auditors
Sumer Auditco Limited
Chartered Accountants & Statutory Auditors

14 City Quay

Dundee

DD1 3JA





 
HOGGS OF FIFE LIMITED
 

CONTENTS



Page
Strategic report
1
Directors' report
2 - 3
Independent auditors' report
4 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 22


 
HOGGS OF FIFE LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024

Introduction
 
Hoggs of Fife Limited, and its Fife Country sub-brand, continue to offer some of the best country clothing and workwear, and the company's core activities remain the distribution of these products to the UK retail trade, as well as direct retailing via its own home shopping catalogues and website, augmented by its Fife-based retail store. The company’s strategy is to grow sales and profit in all customer groups and product categories, underpinned by product development and improvement, and supported by excellent customer service. 

Business review
 
The inflationary pressures, which first appeared in the previous year, continued to exert pressure on sales to the consumer, affecting both the Trade and Retail sectors. These inflationary pressures began to ease towards the end of the year, but not before again affecting significant increases in several cost areas. In an effort to maintain margins, the company’s selling prices continued to rise, exerting pressure on consumer demand. Stock levels continued to fall, compared to previous, Covid-19 affected years, where the company had attempted to safeguard sales by stockpiling key lines. The strength of the company’s product range continued to attract new business interest, both at home and abroad, standing the company in good stead for the future.

Principal risks and uncertainties
 
The Directors and Management Team routinely monitor all risks and uncertainties, taking appropriate actions to mitigate where and when necessary. Volatile global uncertainty continued to introduce complexity to sales predictions. Volatile currency markets also impact the company’s product costs and, where possible, currency is bought forward at times of more advantageous rates. Cyber Security remains a key risk for the Company, and the Company continues to mitigate the risks associated with data security through outsourcing its I.T. to a specialist I.T. Services Provider.

Financial key performance indicators
 
Sales of £11.4M were up on 2023 (£11.1M), and Gross Margin was up from 49.3% to 49.8%. Profit Before Tax decreased to £1,499k (2023 - £1,538k) with Net Operating Profit Margin decreasing to 12.40% (2023 - 13.82%). Working Capital Ratio increased to 7.7 (2023 - 7.2)

Other key performance indicators
 
The Statement of Financial Position on page 9 of the Financial Statements shows the Company’s Financial Position at the year end with Net Assets of £8.9M (2023 - £8.4M).


This report was approved by the board on 7 February 2025 and signed on its behalf.



Mr R F Gibson
Director

Page 1

 
HOGGS OF FIFE LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024

The directors present their report and the financial statements for the year ended 31 May 2024.

Directors' responsibilities statement

The directors are responsible for preparing the 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 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 of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Directors' reports may differ from legislation in other jurisdictions.

Results and dividends

The profit for the year, after taxation, amounted to £1,087,290 (2023 - £1,222,497).

A dividend of £532,500 was paid during the year (2023 - £426,000).

Directors

The directors who served during the year were:

Mr R F Gibson 
Mrs C M McLaren 
Mrs A E Lang 
Mrs A M Gibson 
Mr S Taylor 
Mr S J Jepson (appointed 23 August 2023)

Page 2

 
HOGGS OF FIFE LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024


Future developments

In order to secure future sales growth, within its Trade business, the company's strategy is to continue developing relationships with retail and agri businesses, and product development will reflect products which appeal to all target markets. To service the expectations of both B2B and B2C customers, and the move towards greater remote buying, the company will continue to invest in technology which facilitates this.

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'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's auditors are aware of that information.

Post balance sheet events

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

Auditors

The auditorsSumer Auditco Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 7 February 2025 and signed on its behalf.
 





Mr R F Gibson
Director

Page 3

 
HOGGS OF FIFE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HOGGS OF FIFE LIMITED
 

Opinion


We have audited the financial statements of Hoggs of Fife Limited (the 'Company') for the year ended 31 May 2024, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity 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 Company's affairs as at 31 May 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 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 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.


Page 4

 
HOGGS OF FIFE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HOGGS OF FIFE LIMITED (CONTINUED)


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 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 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 Company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 2, 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 Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 5

 
HOGGS OF FIFE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HOGGS OF FIFE 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 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 company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. 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, forgery or intentional misrepresentations, or through collusion.
We focused 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, enquiries with management and enquiries of legal counsel. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. 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.


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 6

 
HOGGS OF FIFE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HOGGS OF FIFE 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.





Greg Stapley (Senior statutory auditor)
  
for and on behalf of
Sumer Auditco Limited
 
Chartered Accountants & Statutory Auditors
  
14 City Quay
Dundee
DD1 3JA

10 February 2025
Page 7

 
HOGGS OF FIFE LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024

2024
2023
£
£

  

Turnover
 4 
11,429,817
11,076,177

Cost of sales
  
(5,734,296)
(5,612,040)

Gross profit
  
5,695,521
5,464,137

Distribution costs
  
(2,534,451)
(2,412,290)

Administrative expenses
  
(1,744,669)
(1,521,601)

Other operating income
 5 
598
201

Operating profit
 6 
1,416,999
1,530,447

Interest receivable and similar income
 10 
86,375
16,607

Interest payable and similar expenses
 11 
(4,056)
(8,915)

Profit before tax
  
1,499,318
1,538,139

Tax on profit
 12 
(412,028)
(315,642)

Profit for the financial year
  
1,087,290
1,222,497

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 11 to 22 form part of these financial statements.

Page 8

 
HOGGS OF FIFE LIMITED
REGISTERED NUMBER: SC015281

STATEMENT OF FINANCIAL POSITION
AS AT 31 MAY 2024

2024
2023
£
£

Fixed assets
  

Tangible assets
 14 
242,184
278,485

  
242,184
278,485

Current assets
  

Stocks
 15 
4,506,790
6,375,104

Debtors: amounts falling due within one year
 16 
1,285,618
1,040,008

Cash at bank and in hand
  
4,285,285
2,094,000

  
10,077,693
9,509,112

Creditors: amounts falling due within one year
 17 
(1,315,146)
(1,329,002)

Net current assets
  
 
 
8,762,547
 
 
8,180,110

Total assets less current liabilities
  
9,004,731
8,458,595

Provisions for liabilities
  

Deferred tax
 18 
(58,629)
(67,283)

  
 
 
(58,629)
 
 
(67,283)

Net assets
  
8,946,102
8,391,312


Capital and reserves
  

Called up share capital 
 19 
21,300
21,300

Profit and loss account
 20 
8,924,802
8,370,012

  
8,946,102
8,391,312


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 7 February 2025.




Mr R F Gibson
Director

The notes on pages 11 to 22 form part of these financial statements.
Page 9

 
HOGGS OF FIFE LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 June 2022
21,300
7,573,515
7,594,815



Profit for the year
-
1,222,497
1,222,497

Dividends: Equity capital
-
(426,000)
(426,000)



At 1 June 2023
21,300
8,370,012
8,391,312



Profit for the year
-
1,087,290
1,087,290

Dividends: Equity capital
-
(532,500)
(532,500)


At 31 May 2024
21,300
8,924,802
8,946,102


The notes on pages 11 to 22 form part of these financial statements.

Page 10

 
HOGGS OF FIFE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

1.


General information

Hoggs of Fife Limited is a private company, limited by shares, domiciled in Scotland with registration number SC015281. The registered office is Eden Valley Business Park, Cupar, Fife, KY15 4RB.

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 management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Hoggs of Fife (Holdings) Limited as at 31 May 2024 and these financial statements may be obtained from Companies House.

 
2.3

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover 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 turnover is recognised:

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of turnover can be measured reliably;
it is probable that the Company 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.

Page 11

 
HOGGS OF FIFE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.4

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.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided at the following rates:

Plant and machinery
-
10-20%
Motor vehicles
-
25%
Fixtures and fittings
-
14.3-33.33%

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.

 
2.5

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 weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting 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.

 
2.6

Financial instruments

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

Financial instruments are recognised in the Company's Statement of financial position when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

 
2.7

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.

Page 12

 
HOGGS OF FIFE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.8

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 reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting 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; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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 reporting date.


 
2.9

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the reporting date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the reporting date.

 
2.10

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company 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 Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

Page 13

 
HOGGS OF FIFE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.11

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.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.12

Interest income

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

 
2.13

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.

 
2.14

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.

 
2.15

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.

 
2.16

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.

Page 14

 
HOGGS OF FIFE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.17

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.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements in conformity with generally accepted accounting principles requires the Directors to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period.  Actual results in the future could differ from those estimates.  In this regard, the Directors believe that the critical accounting policies where judgments or estimations are necessary applied are summarised below. 
Tangible Fixed Assets
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors.
Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
Stock Provision
Stock is valued at the lower of cost and net realisable value. This includes any provisions for slow moving or obsolete stock. Calculation of such provisions requires judgments to be made on various aspects of stock based on forecasts and historical trading.
The Directors review the valuation method on a regular basis to ensure that the carrying value of stock remains appropriate. Due consideration is given to amounts realised following the year end in relation to stock included in the financial statements at the year end.
Page 15

 
HOGGS OF FIFE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

4.


Turnover

Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
11,179,953
10,849,409

Rest of Europe
213,725
212,559

Rest of the world
36,139
14,209

11,429,817
11,076,177



5.


Other operating income

2024
2023
£
£

Other operating income
598
201

598
201



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Exchange differences
12,891
(74,858)

Other operating lease rentals
241,724
208,102

Depreciation charge for the year
81,548
84,068


7.


Auditors' remuneration

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


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
22,000
15,500

Page 16

 
HOGGS OF FIFE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

8.


Employees

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


2024
2023
£
£

Wages and salaries
1,348,989
1,382,447

Social security costs
134,535
146,741

Cost of defined contribution scheme
266,403
156,149

1,749,927
1,685,337


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


        2024
        2023
            No.
            No.







Employees
52
51


9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
273,775
227,111

Company contributions to defined contribution pension schemes
99,423
99,835

373,198
326,946


During the year retirement benefits were accruing to 3 directors (2023 - 2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £112,804 (2023 - £142,233).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £23,945 (2023 - £23,331).


10.


Interest receivable

2024
2023
£
£


Bank interest receivable
86,375
16,607

86,375
16,607

Page 17

 
HOGGS OF FIFE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

11.


Interest payable and similar expenses

2024
2023
£
£


Other interest payable
4,056
8,915

4,056
8,915


12.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
420,682
294,002


Deferred tax


Deferred tax - current year
(8,654)
21,640


Tax on profit
412,028
315,642

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 25%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
1,499,318
1,538,139


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)
374,830
384,535

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
129
(3,477)

Capital allowances for year in excess of depreciation
8,655
(12,870)

Short term timing difference leading to an increase (decrease) in taxation
(8,654)
21,640

Changes in provisions leading to an increase (decrease) in the tax charge
37,615
-

Group relief
(547)
(736)

Effect of changes in corporation tax rates
-
(73,450)

Total tax charge for the year
412,028
315,642

Page 18

 
HOGGS OF FIFE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

13.


Dividends

2024
2023
£
£


Dividends - ordinary
532,500
426,000

532,500
426,000


14.


Tangible fixed assets





Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£



Cost or valuation


At 1 June 2023
442,347
19,400
472,983
934,730


Additions
18,094
-
27,153
45,247



At 31 May 2024

460,441
19,400
500,136
979,977



Depreciation


At 1 June 2023
240,488
19,400
396,357
656,245


Charge for the year on owned assets
38,471
-
43,077
81,548



At 31 May 2024

278,959
19,400
439,434
737,793



Net book value



At 31 May 2024
181,482
-
60,702
242,184



At 31 May 2023
201,859
-
76,626
278,485

Page 19

 
HOGGS OF FIFE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

15.


Stocks

2024
2023
£
£

Finished goods and goods for resale
4,506,790
6,375,104

4,506,790
6,375,104



16.


Debtors

2024
2023
£
£


Trade debtors
966,267
843,781

Amounts owed by group undertakings
144,870
-

Other debtors
16,552
26,988

Prepayments and accrued income
157,929
169,239

1,285,618
1,040,008



17.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
143,187
124,836

Other taxation and social security
545,726
665,726

Other creditors
7,520
7,341

Accruals and deferred income
618,713
531,099

1,315,146
1,329,002


Page 20

 
HOGGS OF FIFE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

18.


Deferred taxation




2024


£






At beginning of year
(67,283)


Utilised in year
8,654



At end of year
(58,629)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(58,629)
(67,283)

(58,629)
(67,283)


19.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



21,300 Ordinary shares of £1.00 each
21,300
21,300



20.


Reserves

Profit and loss account

The profit and loss account represents the accumulation of net profits achieved since incorporation of the company net of dividends paid.


21.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £266,403 (2023 - £156,149). Contributions totalling £79 (2023 - £nil) were payable to the fund at the reporting date and are included within creditors due within one year.

Page 21

 
HOGGS OF FIFE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024


22.


Commitments under operating leases

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

2024
2023
£
£


Not later than 1 year
223,128
229,827

Later than 1 year and not later than 5 years
16,970
40,284

240,098
270,111


23.


Related party transactions

The Company has elected to take the exemption available under FRS 102 s33.1A, and therefore, has not disclosed transactions between the Company and other wholly owned members of the Group, of which Hoggs of Fife (Holdings) Limited is the ultimate parent. 
During the year the Company incurred rental costs of £131,104
 (2023 - £131,104) in respect of properties owned by an associated company, Clunie Investments Ltd. At the year end the Company was due £863 (2023 - £350) from Clunie Investments Ltd.
Key management personnel include directors of Hoggs of Fife Limited and its parent, Hoggs of Fife (Holdings) Limited, who together have authority and responsibility for planning, directing and controlling the activities of the Company. The total compensation paid to key management personnel for services provided to the Company was £316,458 
(2023 - £362,819).


24.


Controlling party

The immediate and ultimate controlling parent undertaking is Hoggs of Fife (Holdings) Limited, a private company domiciled in Scotland with registration number SC642176. 
Hoggs of Fife (Holdings) Limited is the parent undertaking of the smallest and largest group of undertakings to consolidate these financial statements at 31 May 2024. The consolidated financial statements of Hoggs of Fife (Holdings) Limited are available from the registered office at Eden Valley Business Park, Cupar, Fife, KY15 4RB and are publicly available from Companies House.

Page 22