REGISTERED NUMBER: SC488409 (Scotland) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements For The Year Ended 30 June 2024 |
for |
Hulley & Kirkwood Limited |
REGISTERED NUMBER: SC488409 (Scotland) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements For The Year Ended 30 June 2024 |
for |
Hulley & Kirkwood Limited |
Hulley & Kirkwood Limited (Registered number: SC488409) |
Contents of the Consolidated Financial Statements |
For The Year Ended 30 June 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Statement of Comprehensive Income | 10 |
Consolidated Statement of Financial Position | 11 |
Company Statement of Financial Position | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Statement of Cash Flows | 15 |
Notes to the Consolidated Statement of Cash Flows | 16 |
Notes to the Consolidated Financial Statements | 17 |
Hulley & Kirkwood Limited |
Company Information |
For The Year Ended 30 June 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
INDEPENDENT AUDITORS: |
Chartered Accountants & Statutory Auditors |
Regent Court |
70 West Regent Street |
Glasgow |
G2 2QZ |
SOLICITORS: |
Floor 3 |
1-4 Atholl Crescent |
Edinburgh |
EH3 8HA |
Hulley & Kirkwood Limited (Registered number: SC488409) |
Group Strategic Report |
For The Year Ended 30 June 2024 |
REVIEW OF BUSINESS |
The financial results for the year ended 30th June 2024 reflected the continued difficulties faced by the company due to local and national government changes and funding decisions impacting the whole of the country. |
The economic and political landscapes remain uncertain, and the company continues to operate in a fluctuating market, seeking to function effectively and efficiently in spite of continued change and disruption. The company continued to complete new and existing contracts, delivering award winning projects and exceeding customer expectations. |
The Directors continue to monitor the situation on a daily basis, to ensure the business is protected in terms of resources, workflow, profitability and cashflow, as the commercial environment evolves. |
The Directors continually review the business performance using industry standard KPI's and internal management reporting, and are committed to pursue opportunities to develop the business in existing sectors and locations, while exploring new prospects afforded by the changing political and economic environment. |
The Directors are satisfied in the performance of the company and confident that the business will maximise its potential operations within the market in the year ahead. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors have taken steps to ensure that day to day risks are managed comprehensively by the company by ensuring it has appropriate contracts in place which are further supported by appropriate insurance cover. Comprehensive management reports are prepared on a monthly and quarterly basis; these reports are used to inform the Board on the financial and trading performance of the company and facilitate cash management. Primarily the business is exposed to the following risks and uncertainties: |
Liquidity risk |
The company aims to mitigate liquidity risk by managing cash flow generation from its operations. Investment is carefully controlled, and forecasts and budgets are prepared and reviewed on a regular basis. The directors are satisfied that the company has adequate resources to enable them to meet their liabilities as they fall due for the foreseeable future. |
Operational risk |
As a company we work to comply with all relevant legislation including health & safety and employment law. We have processes in place to ensure compliance across the business with regular reporting on these matters. There are also regular internal quality checks to ensure quality management processes are adhered to and all professional standards are met. |
Market and competition risk |
The market in which we operate is highly competitive. We face direct competition from businesses of a similar size as well as larger players in the market. Some competitors have differing cost structures which offers a variant pricing strategy that we need to be mindful of. We continue to address this risk by reviewing fee structures on an ongoing basis. |
The Directors remain confident that the business can maximise the opportunities that present themselves in the next twelve months and provide a strong financial performance over this period |
Hulley & Kirkwood Limited (Registered number: SC488409) |
Group Strategic Report |
For The Year Ended 30 June 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors have taken steps to ensure that day to day risks are managed comprehensively by the group by ensuring it has appropriate contracts in place which are further supported by appropriate insurance cover. Comprehensive management reports are prepared on a monthly and quarterly basis; these reports are used to inform the Board on the financial and trading performance of the group and facilitate cash management. |
The group aims to mitigate liquidity risk by managing cash flow generation from its operations. Investment is carefully controlled, and forecasts and budgets are prepared and reviewed on a regular basis. The directors are satisfied that the group have adequate resources to enable them to meet their liabilities as they fall due for the foreseeable future. |
As a group we work to comply with all relevant legislation including health & safety and employment law. We have processes in place to ensure compliance across the business with regular reporting on these matters. |
The Directors remain confident that the business can maximise the opportunities that present themselves in the next twelve months and provide a strong financial performance over this period |
FINANCIAL KEY PERFORMANCE INDICATORS |
The key performance indicators are turnover and gross profit which are disclosed in the financial statements. Performance during the year is discussed within the business review above. |
KEY FINANCIAL PERFORMANCE INDICATORS |
The directors have identified the following key financial performance indicators : |
2024 | 2023 |
Turnover | £12,007,863 | £11,505,460 |
Net Profit % | 6.36% | 10.55% |
Net assets | £4,027,880 | £4,165,478 |
ON BEHALF OF THE BOARD: |
Hulley & Kirkwood Limited (Registered number: SC488409) |
Report of the Directors |
For The Year Ended 30 June 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 30 June 2024. |
DIVIDENDS |
No interim dividends were paid during the year ended 30 June 2024. |
The directors recommend final dividends per share as follows: |
Ordinary A Shares £1 shares | £0.1848 |
Ordinary B Shares £1 shares | £0.1848 |
The total distribution of dividends for the year ended 30 June 2024 will be £ 407,063 . |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
Hulley & Kirkwood Limited (Registered number: SC488409) |
Report of the Directors |
For The Year Ended 30 June 2024 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Hulley & Kirkwood Limited |
Opinion |
We have audited the financial statements of Hulley & Kirkwood Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 30 June 2024 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Hulley & Kirkwood Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Hulley & Kirkwood Limited |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- We identified the laws and regulations applicable to the company through discussions with directors and other management, and from our wider knowledge and experience; |
- We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company and the group, including the Companies Act 2006 and FRS 102. |
- We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- Identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company's and group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations |
Audit response to risks identified |
To address the risk of fraud through management bias and override of controls, we: |
- Performed analytical procedures to identify any unusual or unexpected relationships; |
- Tested journal entries to identify unusual transactions; |
- Assessed whether judgements and assumptions made in determining the accounting estimates set out were indicative of potential bias; and |
- Investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- Agreeing financial statement disclosures to underlying supporting documentation; |
- Reading the minutes of meetings of those charged with governance; |
- Enquiring of management as to actual and potential litigation and claims; and |
- Requesting correspondence with HMRC, Companies House and the company's and group's legal advisors. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Hulley & Kirkwood Limited |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants & Statutory Auditors |
Regent Court |
70 West Regent Street |
Glasgow |
G2 2QZ |
Hulley & Kirkwood Limited (Registered number: SC488409) |
Consolidated |
Statement of Comprehensive |
Income |
For The Year Ended 30 June 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
TURNOVER | 12,007,863 | 11,505,460 |
Distribution costs | 16,405 | 19,246 |
Administrative expenses | 10,972,182 | 10,132,984 |
10,988,587 | 10,152,230 |
OPERATING PROFIT | 5 | 1,019,276 | 1,353,230 |
Interest receivable and similar income | 111,469 | 7,806 |
1,130,745 | 1,361,036 |
Gain/loss on revaluation of investment property |
(265,637 |
) |
- |
865,108 | 1,361,036 |
Interest payable and similar expenses | 7 | 211,632 | 147,345 |
PROFIT BEFORE TAXATION | 653,476 | 1,213,691 |
Tax on profit | 8 | 254,009 | 95,078 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
399,467 |
1,118,613 |
Profit attributable to: |
Owners of the parent | 363,047 | 1,064,106 |
Non-controlling interests | 36,420 | 54,507 |
399,467 | 1,118,613 |
Total comprehensive income attributable to: |
Owners of the parent | 363,047 | 1,064,106 |
Non-controlling interests | 36,420 | 54,507 |
399,467 | 1,118,613 |
Hulley & Kirkwood Limited (Registered number: SC488409) |
Consolidated Statement of Financial Position |
30 June 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 | - | 115,939 |
Tangible assets | 12 | 107,323 | 102,761 |
Investments | 13 | - | - |
Investment property | 14 | 2,920,000 | 3,185,637 |
3,027,323 | 3,404,337 |
CURRENT ASSETS |
Debtors | 15 | 4,547,484 | 4,719,749 |
Cash at bank | 2,528,630 | 2,760,212 |
7,076,114 | 7,479,961 |
CREDITORS |
Amounts falling due within one year | 16 | 4,294,183 | 4,864,378 |
NET CURRENT ASSETS | 2,781,931 | 2,615,583 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
5,809,254 |
6,019,920 |
CREDITORS |
Amounts falling due after more than one year | 17 | (1,556,440 | ) | (1,745,582 | ) |
PROVISIONS FOR LIABILITIES | 21 | (224,934 | ) | (108,860 | ) |
NET ASSETS | 4,027,880 | 4,165,478 |
CAPITAL AND RESERVES |
Called up share capital | 22 | 2,460,225 | 2,460,225 |
Share premium | 23 | 1,088,734 | 1,088,734 |
Retained earnings | 23 | 305,171 | 592,472 |
SHAREHOLDERS' FUNDS | 3,854,130 | 4,141,431 |
NON-CONTROLLING INTERESTS | 173,750 | 24,047 |
TOTAL EQUITY | 4,027,880 | 4,165,478 |
The financial statements were approved by the Board of Directors and authorised for issue on 2 March 2025 and were signed on its behalf by: |
J G McInnes - Director |
Hulley & Kirkwood Limited (Registered number: SC488409) |
Company Statement of Financial Position |
30 June 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
Investments | 13 |
Investment property | 14 |
CURRENT ASSETS |
Debtors | 15 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Share premium | 23 |
Retained earnings | 23 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 407,752 | 578,683 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Hulley & Kirkwood Limited (Registered number: SC488409) |
Consolidated Statement of Changes in Equity |
For The Year Ended 30 June 2024 |
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
Balance at 1 July 2022 | 2,460,225 | 107,048 | 1,088,734 |
Changes in equity |
Dividends | - | (578,682 | ) | - |
Total comprehensive income | - | 1,064,106 | - |
Balance at 30 June 2023 | 2,460,225 | 592,472 | 1,088,734 |
Changes in equity |
Transfer of non-controlling interests | - | (243,285 | ) | - |
Dividends | - | (407,063 | ) | - |
Total comprehensive income | - | 363,047 | - |
Balance at 30 June 2024 | 2,460,225 | 305,171 | 1,088,734 |
Non-controlling | Total |
Total | interests | equity |
£ | £ | £ |
Balance at 1 July 2022 | 3,656,007 | 184,540 | 3,840,547 |
Changes in equity |
Dividends | (578,682 | ) | (215,000 | ) | (793,682 | ) |
Total comprehensive income | 1,064,106 | 54,507 | 1,118,613 |
Balance at 30 June 2023 | 4,141,431 | 24,047 | 4,165,478 |
Changes in equity |
Transfer of non-controlling interests | (243,285 | ) | 243,285 | - |
Dividends | (407,063 | ) | (130,000 | ) | (537,063 | ) |
Total comprehensive income | 363,047 | 36,420 | 399,467 |
Balance at 30 June 2024 | 3,854,130 | 173,752 | 4,027,882 |
Hulley & Kirkwood Limited (Registered number: SC488409) |
Company Statement of Changes in Equity |
For The Year Ended 30 June 2024 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 July 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 30 June 2023 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 30 June 2024 |
Hulley & Kirkwood Limited (Registered number: SC488409) |
Consolidated Statement of Cash Flows |
For The Year Ended 30 June 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 746,062 | 486,930 |
Interest paid | (211,632 | ) | (147,345 | ) |
Tax paid | (140,143 | ) | (149,060 | ) |
Net cash from operating activities | 394,287 | 190,525 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (52,585 | ) | (45,094 | ) |
Interest received | 111,469 | 7,806 |
Net cash from investing activities | 58,884 | (37,288 | ) |
Cash flows from financing activities |
New loans in year | - | 500,000 |
Loan repayments in year | (194,509 | ) | (156,841 | ) |
Amount withdrawn by directors | (490,244 | ) | (131,683 | ) |
Net cash from financing activities | (684,753 | ) | 211,476 |
(Decrease)/increase in cash and cash equivalents | (231,582 | ) | 364,713 |
Cash and cash equivalents at beginning of year |
2 |
2,760,212 |
2,395,499 |
Cash and cash equivalents at end of year | 2 | 2,528,630 | 2,760,212 |
Hulley & Kirkwood Limited (Registered number: SC488409) |
Notes to the Consolidated Statement of Cash Flows |
For The Year Ended 30 June 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 653,476 | 1,213,691 |
Depreciation charges | 163,962 | 349,686 |
Loss on revaluation of fixed assets | 265,637 | - |
Finance costs | 211,632 | 147,345 |
Finance income | (111,469 | ) | (7,806 | ) |
1,183,238 | 1,702,916 |
Increase in trade and other debtors | (12,588 | ) | (310,219 | ) |
Decrease in trade and other creditors | (424,588 | ) | (905,767 | ) |
Cash generated from operations | 746,062 | 486,930 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 30 June 2024 |
30.6.24 | 1.7.23 |
£ | £ |
Cash and cash equivalents | 2,528,630 | 2,760,212 |
Year ended 30 June 2023 |
30.6.23 | 1.7.22 |
£ | £ |
Cash and cash equivalents | 2,760,212 | 2,395,499 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.7.23 | Cash flow | At 30.6.24 |
£ | £ | £ |
Net cash |
Cash at bank | 2,760,212 | (231,582 | ) | 2,528,630 |
2,760,212 | (231,582 | ) | 2,528,630 |
Debt |
Debts falling due within 1 year | (199,875 | ) | 5,368 | (194,507 | ) |
Debts falling due after 1 year | (1,745,582 | ) | 189,142 | (1,556,440 | ) |
(1,945,457 | ) | 194,510 | (1,750,947 | ) |
Total | 814,755 | (37,072 | ) | 777,683 |
Hulley & Kirkwood Limited (Registered number: SC488409) |
Notes to the Consolidated Financial Statements |
For The Year Ended 30 June 2024 |
1. | STATUTORY INFORMATION |
Hulley & Kirkwood Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
The directors ordinarily review and update cash flow and trading forecasts to ensure the company has sufficient resources to enable it to meet its liabilities as they fall due for a period of at least twelve months from the date signing of the financial statements. The directors have considered a number of potential scenarios over the coming twelve months, including a sensitised forecast on the back of the current global uncertainty shows that the company has adequate working capital to continue trading over this period. |
The directors believe that the company has a strong pipeline of sales opportunities, and together with projects that are already confirmed, further sales will be generated which will create further cash inflows for the business. The directors are satisfied based on discussions with customers regarding specific projects, that demand is still there for Hulley & Kirkwood’s services. The company has shown its ability to grow during the 2024 financial year and the directors are satisfied that the company will remain cash generating and profit making. |
Thus, with a healthy cash balance, the ability of the team to operate and work remotely, good customer relationships and forecasted trading expectations, the directors are satisfied that the company will have adequate resources to continue as a going concern for the foreseeable future. |
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: |
Rendering of services |
Turnover from a contract to provide services is recognised in the period in which the services are provided in |
accordance with the stage of completion of the contract when all of the following conditions are satisfied: |
1. The amount of turnover can be measured reliably; |
2. It is probable that the Company will receive the consideration due under the contract; |
3. The stage of completion of the contract at the end of the reporting period can be measured reliably; and |
4. The costs incurred and the costs to complete the contract can be measured reliably. |
Goodwill |
Goodwill, being the amount paid in connection with the acquisition of a businesses in 2015 was amortised & evenly over their estimated useful life of ten years. The amount paid in connection with an acquisition in 2021, was amortised in full in 2024. |
Hulley & Kirkwood Limited (Registered number: SC488409) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 30 June 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Fixtures and fittings | - |
Computer equipment | - |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Financial instruments |
Basic financial instruments are recognised at amortised cost, except for investments in non-convertible preference and non-puttable ordinary shares which are measured at fair value, with changes recognised in profit or loss. Derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognised in profit or loss. |
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other |
accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in the case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hulley & Kirkwood Limited (Registered number: SC488409) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 30 June 2024 |
2. | ACCOUNTING POLICIES - continued |
Functional and presentation currency |
The Company's functional and presentational currency is GBP. |
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. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
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 the Statement of Comprehensive Income 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. |
Operating leases |
Rentals paid under operating leases are charges to the Statement of Comprehensive Income on a straight line basis over the lease term. |
Provisions |
Liabilities are recognised where the company has an obligation at the Statement of Financial Position date as a result of a past event and it is probable that a transfer of economic benefit will be required in settlement with the amount of the settlement able to be estimated reliably. Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advance payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges. |
Hulley & Kirkwood Limited (Registered number: SC488409) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 30 June 2024 |
3. | JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities reported at the balance sheet date and the amounts reported for revenue and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements and estimates have had the most significant effects on amounts recognised in the financial statements. |
Depreciation |
The estimates and assumptions used to determine the depreciation charge requires judgements to be made as regards asset useful lives and residual values. The useful lives and residual values of the company's fixed assets are determined by management at the time the asset is acquired and reviewed annually for appropriateness. The lives are based on historical experience with similar assets. Historically, changes in useful lives have not resulted in material changes to the company's depreciation charge. |
Revenue Recognition |
Revenue on long term contracts for services is recognised according to the stage of completion reached on the contract by measuring a proportion of costs incurred for work performed to total estimated costs.Estimating the costs to completion and therefore the total contract costs is a key judgement in respect of revenue recognition on these contracts. Management bases their judgements of revenue and the assessment of the expected outcome of each contract on the latest information available. This includes contract valuations, and forecast costs to complete. The estimates of the contract positions and the profit or loss earned to date is updated regularly and the impact of any change in the accounting estimates are reflected in the financial statements. See notes 15 and 17 for amounts recoverable on contracts and payments received on account. |
Provisions |
Liabilities are recognised where the Company has an obligation at the Statement of Financial Position date as a result of a past event and it is probable that a transfer of economic benefit will be required in settlement with the amount of the settlement able to be estimated reliably. Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advance payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges. |
Valuation of Property |
Investment property is carried at fair value determined by the directors. The valuation of investment properties is subject to, among other factors, the nature of the property, its location and the expected future rental value. As a result, the valuation of the investment property incorporated into the financial statements is subject to a degree of estimation and is made on the basis of assumptions which may be affected by periods of volatility or low transactions flow in the market. If any of the assumptions used within the valuation of investment property proved to be inaccurate due to changes in market conditions, this could result in the valuation of the investment property differing from the valuation incorporated into the financial statements and the difference could have a material effect on the financial statements. |
Hulley & Kirkwood Limited (Registered number: SC488409) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 30 June 2024 |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 6,534,629 | 5,889,839 |
Social security costs | 847,094 | 718,514 |
Other pension costs | 554,121 | 628,376 |
7,935,844 | 7,236,729 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Directors | 6 | 7 |
Engineers | 105 | 103 |
Administration | 18 | 17 |
The average number of employees by undertakings that were proportionately consolidated during the year was 129 (2023 - 127 ) . |
2024 | 2023 |
£ | £ |
Directors' remuneration | 845,056 | 966,502 |
Directors' pension contributions to money purchase schemes | 74,200 | 89,550 |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc | 129,697 | 139,645 |
Pension contributions to money purchase schemes | 12,000 | 9,000 |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
2024 | 2023 |
£ | £ |
Hire of plant and machinery | 149,697 | 142,278 |
Other operating leases | 388,881 | 368,391 |
Depreciation - owned assets | 48,023 | 91,698 |
Goodwill amortisation | 115,939 | 257,988 |
6. | AUDITORS' REMUNERATION |
2024 | 2023 |
£ | £ |
Fees payable for audit of the group's financial statements | 25,000 | 24,000 |
Hulley & Kirkwood Limited (Registered number: SC488409) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 30 June 2024 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank loan interest | 138,502 | 100,756 |
Other interest | 73,130 | 46,589 |
211,632 | 147,345 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 247,789 | 89,428 |
Deferred tax | 6,220 | 5,650 |
Tax on profit | 254,009 | 95,078 |
UK corporation tax has been charged at 25 % (2023 - 20.50 %). |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax | 653,476 | 1,213,691 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 20.500 %) |
163,369 |
248,807 |
Effects of: |
Expenses not deductible for tax purposes | 103,123 | 5,973 |
Adjustments to tax charge in respect of prior periods including R&D tax credits | (18,071 |
) |
(223,317 |
) |
Other timing differences | (9,941 | ) | 5,077 |
Non-tax deductible amortisation of goodwill | 10,025 | 52,888 |
Movement in deferred tax | 6,230 | 5,650 |
Effect of marginal rate | (726 | ) | - |
Total tax charge | 254,009 | 95,078 |
9. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
Hulley & Kirkwood Limited (Registered number: SC488409) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 30 June 2024 |
10. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary A Shares shares of £1 each |
Final | 232,691 | 344,876 |
Ordinary B Shares shares of £1 each |
Final | 174,372 | 233,806 |
407,063 | 578,682 |
11. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 July 2023 |
and 30 June 2024 | 2,579,884 |
AMORTISATION |
At 1 July 2023 | 2,463,945 |
Amortisation for year | 115,939 |
At 30 June 2024 | 2,579,884 |
NET BOOK VALUE |
At 30 June 2024 | - |
At 30 June 2023 | 115,939 |
Hulley & Kirkwood Limited (Registered number: SC488409) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 30 June 2024 |
12. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
and | Computer |
fittings | equipment | Totals |
£ | £ | £ |
COST |
At 1 July 2023 | 773,728 | 770,377 | 1,544,105 |
Additions | 1,460 | 51,125 | 52,585 |
At 30 June 2024 | 775,188 | 821,502 | 1,596,690 |
DEPRECIATION |
At 1 July 2023 | 739,313 | 702,031 | 1,441,344 |
Charge for year | 6,139 | 41,884 | 48,023 |
At 30 June 2024 | 745,452 | 743,915 | 1,489,367 |
NET BOOK VALUE |
At 30 June 2024 | 29,736 | 77,587 | 107,323 |
At 30 June 2023 | 34,415 | 68,346 | 102,761 |
13. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertaking |
£ |
COST OR VALUATION |
At 1 July 2023 |
and 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
Cost or valuation at 30 June 2024 is represented by: |
Shares in |
group |
undertaking |
£ |
Valuation in 2023 | 6,100,000 |
Hulley & Kirkwood Limited (Registered number: SC488409) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 30 June 2024 |
13. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Head Office Watermark Business Park, Govan Road, Glasgow, G51 2SE |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: Head Office Watermark Business Park, Govan Road, Glasgow, G51 2SE |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
(Loss)/profit for the year | ( |
) |
Registered office: Head Office Watermark Business Park, Govan Road, Glasgow, G51 2SE |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Hulley & Kirkwood Limited (Registered number: SC488409) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 30 June 2024 |
14. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 July 2023 | 3,185,637 |
Revaluations | (265,637 | ) |
At 30 June 2024 | 2,920,000 |
NET BOOK VALUE |
At 30 June 2024 | 2,920,000 |
At 30 June 2023 | 3,185,637 |
Investment property was valued on an open market basis on 27 January 2025 by Lambert Smith Hampton. |
Fair value at 30 June 2024 is represented by: |
£ |
Valuation in 2024 | 2,920,000 |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 3,419,243 | 3,267,103 |
Amounts recoverable on contract | 238,092 | 402,024 |
Other debtors | 773,379 | 818,378 |
Deferred tax | - | 17,983 | - | - |
Tax | - | 81,828 |
Prepayments | 116,770 | 132,433 |
4,547,484 | 4,719,749 |
Hulley & Kirkwood Limited (Registered number: SC488409) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 30 June 2024 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 18) | 194,507 | 199,875 |
Payments on account | 434,842 | 492,903 |
Trade creditors | 153,549 | 32,114 |
Tax | 211,461 | 106,635 |
Social security and other taxes | 194,792 | 182,286 |
VAT | 1,097,260 | 1,034,057 | - | - |
Other creditors | 1,561,278 | 2,283,285 |
Amounts owed to group undertakings | - | - | 2,170,161 | 2,126,277 |
Accruals and deferred income | 446,494 | 533,223 |
4,294,183 | 4,864,378 |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2024 | 2023 |
£ | £ |
Bank loans (see note 18) | 1,556,440 | 1,745,582 |
18. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 194,507 | 199,875 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 194,507 | 199,875 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 490,535 | 541,389 |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more than 5 years |
by instalments | 871,398 | 1,004,318 |
871,398 | 1,004,318 |
Hulley & Kirkwood Limited (Registered number: SC488409) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 30 June 2024 |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year | 243,473 | 236,934 |
Between one and five years | 306,806 | 300,034 |
In more than five years | 66,825 | 93,555 |
617,104 | 630,523 |
20. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2024 | 2023 |
£ | £ |
Bank loans | 1,750,947 | 1,945,457 |
The bank loan is secured by a standard security or bond and legal charge over certain of Hulley Property Company Limited (a subsidiary company) investment property and by a bond and floating charge over the whole assets of Hulley Property Company Limited. |
21. | PROVISIONS FOR LIABILITIES |
Group |
2024 | 2023 |
£ | £ |
Deferred tax | 64,317 | 67,542 |
Other provisions |
Dilapidation provision | 160,617 | 41,318 |
Aggregate amounts | 224,934 | 108,860 |
Group |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1 July 2023 | 67,542 | 46,317 |
Provided during year | (3,225 | ) | 119,299 |
Balance at 30 June 2024 | 64,317 | 165,616 |
Hulley & Kirkwood Limited (Registered number: SC488409) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 30 June 2024 |
21. | PROVISIONS FOR LIABILITIES - continued |
Full provision has been made for the company's obligation to pay annuities to certain employees, former employees and their dependants in accordance with accounting standards and has been discounted. The provision has been fully utilised during 2022. |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary A Shares | £1 | 1,513,500 | 1,513,500 |
Ordinary B Shares | £1 | 946,725 | 946,725 |
2,460,225 | 2,460,225 |
23. | RESERVES |
Group |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 July 2023 | 592,472 | 1,088,734 | 1,681,206 |
Profit for the year | 363,047 | 363,047 |
Dividends | (407,063 | ) | (407,063 | ) |
Transfer of non-controlling |
interests | (243,285 | ) | - | (243,285 | ) |
At 30 June 2024 | 305,171 | 1,088,734 | 1,393,905 |
Company |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 July 2023 | 1,629,074 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 30 June 2024 | 1,629,763 |
24. | PENSION COMMITMENTS |
The group operates a defined contributions pension scheme. The assets if the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents the contributions payable by the group to the fund and amounted to £554,121 (2023 - £628,376). |
Hulley & Kirkwood Limited (Registered number: SC488409) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 30 June 2024 |
25. | CONTINGENT LIABILITIES |
The group has granted a guarantee for £1,398,309 (2023: £1,503,693) to The Royal Bank of Scotland plc in relation to loans provided to a related company, Hulley Property Company Limited. |
The group has also granted a cross corporate guarantee for £nil (2023: £207,543) in favour of the Security Trustee in relation to Loan Notes issued in Hulley and Kirkwood Limited. |
The company has also granted a guarantee for £160,149 to The Royal Bank of Scotland plc for loans provided to Hulley & Kirkwood Consulting Engineers Limited. |
26. | RELATED PARTY DISCLOSURES |
There were balances due to group companies of £2,170,161 (2023: £2,126,277).These balances have been removed on consolidation of the group's financial statements. Transactions within the group totalling £528,706 (2023: £497,981) have been removed on consolidation. |
Included within accruals and deferred income are balances of £nil (2023: £46,652) due to Directors. These are repayable on demand. |
During the year, directors advanced £287,520 (2023 - £922,500), accrued interest net of tax of £94,156 (2023 - £27,648) and withdrew £871,920 (2023 - £1,056,394). The balance due to the directors at 30 June 2024 is £542,480 (2023 - £1,032,724). |
During the year, shareholders, withdrew funds of £784,415 (2023 - £574,636), were paid interest net of tax of £1,139 (2023: £7,038) and advanced sums to the company of £579,057 (2023: £377,963). The balance due to shareholders at 30 June 2024 is £694,686 (2023: £646,960). Balances are unsecured and repayable on demand. |
Included in debtors is £332,570 due from (2023 - £547,793) Hulley and Kirkwood Employee Trust, a trust whose trustees are directors of the company. All intercompany balances are repayable on demand. |
27. | ULTIMATE CONTROLLING PARTY |
In the opinion of the directors there is no ultimate controlling party. |