Hart & Sons (Dorset) Limited
Registered number: 01177276
Annual Report
For the year ended 30 June 2024
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HART & SONS (DORSET) LIMITED
COMPANY INFORMATION
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Chartered Accountants & Statutory Auditor
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HART & SONS (DORSET) LIMITED
CONTENTS
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Independent Auditors' Report
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Statement of Changes in Equity
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Notes to the Financial Statements
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HART & SONS (DORSET) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
The directors present their Strategic Report for Hart & Sons (Dorset) Limited ("the Company") for the year ended 30 June 2024.
The Company continued its principal activity throughout the current year, being the sale of Cookware, Kitchen Electrics, DIY, houseware, garden, ironmongery and clothing.
Business review
The Company has faced a challenging year with a decrease in turnover from £20,523,138 to £19,227,555, reflecting a 6.3% decline in sales compared to the previous year. Despite this drop in revenue, the group maintained a solid gross profit of £5,568,077 and achieved a profit before tax of £211,971, demonstrating effective cost management and operational efficiency in a tough market environment.
The profit for the year after taxation stands at £157,188, showcasing the resilience of the business despite external challenges. This positive outcome highlights the company’s ability to adapt and navigate the complexities of the current business landscape.
The Company continues to strengthen its financial position, with a strong balance sheet that provides a solid foundation for future growth and strategic investment. This stability is crucial for the long-term sustainability and success of the business.
A key focus during the year has been the continued investment in leading-edge technology. This strategic approach is already yielding positive results, with early signs of a strong return on investment, enhancing operational efficiencies and positioning the Company for future growth.
Looking ahead, the Company remains committed to driving innovation, optimizing its cost structure, and enhancing shareholder value, while staying focused on delivering high-quality products and services to its customers.
Overall, despite the decline in turnover, the business has demonstrated resilience through effective cost management, a strong financial position, and forward-thinking investments in technology.
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HART & SONS (DORSET) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
Principal risks and uncertainties
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Management continually monitors the key risks facing the Company together with assessing the controls used for managing these risks. The Directors formally reviews and documents the principal risks facing the business quarterly. Updating forecasts where necessary.
The principal risks and uncertainties facing the Company are as follows:
Competitor Pressure
The competitive landscape remains one of the principal risks to the business. Increased competition, both from established players and new entrants, could lead to pricing pressures, reduced market share, and margin erosion. The company must continue to innovate, enhance customer relationships, and maintain operational efficiencies to stay ahead of competitors and retain a strong market position.
Political Instability in the UK and USA
The potential for changing political dynamics in both the UK and the USA poses a risk to the company's strategic outlook. Shifts in political leadership, with new political parties and changes in Prime Ministers and Presidents, could lead to shifts in policy, regulations, and economic conditions. These political changes may impact the cost of stock, particularly due to alterations in trade agreements, tariffs, and import/export policies. Additionally, changes in fiscal policies, including tax rates, could directly affect the company’s profitability and tax obligations.
Economic and Regulatory Uncertainty
Alongside political shifts, broader economic factors such as inflation, interest rates, and changes in fiscal policies could increase costs and affect demand for the company’s products and services. Similarly, evolving regulations in both domestic and international markets, especially concerning environmental and tax laws, could create additional compliance burdens or alter the cost structures.
The Company is actively monitoring these risks and remains committed to adapting its strategy and operations to mitigate their potential impact, while maintaining a focus on long-term growth and stability. We continue to engage with policymakers, stay informed on market trends, and invest in innovation to ensure resilience in the face of these uncertainties.
Financial key performance indicators
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Management uses a range of performance measures to monitor and manage the business.
The financial key performance indicators are as set out below:
Sales measured year on year: £1.3m decrease in the year – total sales exceeded Directors expectations especially due to the cost of living crisis, this was fuelled by an increased portfolio of brands and the availability of stock.
Gross profit measured year on year: £0.6m decrease in the year - the decrease is in line with the Director‘s expectation with the decrease in sales, change of product mix and increase of competition.
Operating profit measured year on year: £0.5m decrease in the year - the decrease is in line with the Director’s expectation with a concentration on costs, development projects and employee retention.
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HART & SONS (DORSET) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
Looking ahead, the Company is committed to driving sustainable growth and operational efficiency through a series of strategic initiatives and investments. Key areas of focus for the coming year and beyond include:
Stabilising Turnover
A primary target for the upcoming year is to stabilise turnover. While we have experienced some challenges in revenue this year, the focus will be on consolidating market share, enhancing customer retention, and exploring new business opportunities to achieve steady and sustainable sales growth.
Cost Reduction Initiatives
The Company is dedicated to working diligently on reducing costs across the business. We will continue to focus on improving operational efficiencies, optimizing our supply chain, and streamlining processes in order to reduce overheads and improve profitability. Every effort will be made to ensure that cost-saving initiatives do not compromise the quality of our products and services.
Three-Year Strategic Plan with Financial Modelling
A detailed, forward-looking three-year strategic plan will be implemented, underpinned by in-depth financial modelling. This plan will guide our business decisions and investments, with a strong focus on long-term growth, risk management, and value creation. The financial modelling will help to better assess potential outcomes, allocate resources effectively, and track progress against key objectives.
Continued Investment in Leading Technology
We will maintain our commitment to investing in advanced technologies, including Artificial Intelligence (AI), to enhance our operational capabilities and customer experience. AI-powered solutions will help us streamline processes, optimize decision-making, and improve customer service, ensuring we remain competitive in an ever-evolving market.
Implementation of EPOS Systems
The Company will also move forward with the implementation of Electronic Point of Sale (EPOS) systems across our retail operations. This modern technology will provide real-time data analytics, improve inventory management, and enhance the overall efficiency of transactions. The benefits of the EPOS system include quicker checkouts, better stock visibility, and an enhanced customer experience, which will contribute to operational success and customer satisfaction.
Widening Product Range and Online Presence
Expanding our product offering and increasing our online presence will be a key priority. We aim to broaden the range of products available for sale online, providing our customers with a wider variety of choices and enhancing the overall shopping experience. Strengthening our e-commerce platform will not only drive sales but also enable us to tap into new markets and reach a larger customer base.
By focusing on these key areas, the Company is positioning itself for a successful and sustainable future. We are confident that these strategic developments will enable us to stabilize turnover, reduce costs, and deliver long-term value to our stakeholders, while adapting to the changing needs of the market.
This report was approved by the board and signed on its behalf by:
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HART & SONS (DORSET) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
The Directors present their report and the audited financial statements for Hart & Sons (Dorset) Limited ("the Company") for the year ended 30 June 2024.
The profit for the year, after taxation, amounted to £157,188 (2023: £589,965).
Dividends totalling £658,368 were paid during the year (2023: £1,013,056). The Directors do not recommend the payment of a final dividend.
The Directors who served during the year and to the date of this report were:
Directors' responsibilities statement
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The Directors are responsible for preparing the Strategic Report, the Directors' Report and the audited financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare audited 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 audited financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
∙prepare the audited 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 audited financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Qualifying third part indemnity provisions
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The Company has granted an indemnity to one or more of its Directors against liability in respect of proceedings brought by third parties, subject to the conditions set out in section 234 of the Companies Act 2006. Such qualifying third-party indemnity provision remains in force as at the date of approving the Directors' report.
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HART & SONS (DORSET) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
Provision of information to auditor
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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 auditor is 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 auditor is aware of that information.
Matters covered in the Strategic Report
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The Company has prepared a Strategic Report in accordance with section 414C(11) of the Companies Act 2006 and (Strategic Report and Directors' Report) Regulations 2013 that covers future developments.
When determining whether the Company’s financial statements can be prepared on a going concern basis, the Directors considered the business activities, together with the factors likely to affect its future development, performance and position; these are set out in the Strategic Report.
As at the date of this report, the Directors have a reasonable expectation that the Company has adequate resources to continue in business for at least 12 months from the date of signing. Thus, the Directors continue to adopt the going concern basis of accounting in preparing the annual financial statements.
Post balance sheet events
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There have been no significant events affecting the Company since the year end.
The auditors, Forvis Mazars LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf by:
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HART & SONS (DORSET) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HART & SONS (DORSET) LIMITED
Opinion
We have audited the financial statements of Hart & Sons (Dorset) Limited (the ‘Company’) for the year ended 30 June 2024 which comprise the Profit and Loss Account, the Balance Sheet, the Statement of Changes in Equity and notes to the financial statements, including a summary of significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
∙give a true and fair view of the state of the Company’s affairs as at 30 June 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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. 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.
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HART & SONS (DORSET) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HART & SONS (DORSET) LIMITED
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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the 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 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.
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HART & SONS (DORSET) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HART & SONS (DORSET) LIMITED
Responsibilities of Directors
As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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 either the directors intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Auditor's 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 auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
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.
Based on our understanding of the Company and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation, anti-bribery, corruption and fraud, anti-money laundering regulation.
To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
∙Inquiring of management and, where appropriate, those charged with governance, as to whether the Company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
∙Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
∙Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
∙Considering the risk of acts by the Company which were contrary to applicable laws and regulations, including fraud.
We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006.
In addition, we evaluated the directors’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to revenue recognition (which we pinpointed to the cut-off assertion) and significant one-off or unusual transactions.
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HART & SONS (DORSET) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HART & SONS (DORSET) LIMITED
Our audit procedures in relation to fraud included but were not limited to:
∙Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
∙Gaining an understanding of the internal controls established to mitigate risks related to fraud;
∙Discussing amongst the engagement team the risks of fraud; and
∙Addressing the risks of fraud through management override of controls by performing journal entry testing.
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
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 auditor’s report.
Use of the audit report
This report is made solely to the Company's members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditor's 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.
Lesley Fox (Senior Statutory Auditor)
for and on behalf of Forvis Mazars LLP
Chartered Accountants and Statutory Auditor
5th Floor
Merck House
Seldown Lane
Poole
Dorset
BH15 1TW
13 March 2025
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HART & SONS (DORSET) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2024
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Interest receivable and similar income
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Profit for the financial year
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The Profit and Loss account has been prepared on the basis that all operations are continuing operations.
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There was no other comprehensive income for 2024 (2023: £nil).
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The notes on pages 13 to 27 form part of these financial statements.
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HART & SONS (DORSET) LIMITED
REGISTERED NUMBER: 01177276
BALANCE SHEET
AS AT 30 JUNE 2024
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Provisions for liabilities
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 13 to 27 form part of these financial statements.
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HART & SONS (DORSET) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
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Comprehensive income for the year
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Total comprehensive income for the year
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Dividends: Equity capital
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Comprehensive income for the year
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Total comprehensive income for the year
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Dividends: Equity capital
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The notes on pages 13 to 27 form part of these financial statements.
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HART & SONS (DORSET) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Hart & Sons (Dorset) Limited (registered number 01177276) is a private Company limited by shares, incorporated in England and Wales. The address of the registered office is 5th Floor, Merck House, Seldown Lane, Dorset, BH15 1TW. The principal business address is Station Road, Sturminster Newton, Dorset, DT10 1BD.
The principal activity of the Company during the year was the sale of DIY, houseware, garden, ironmongery and clothing.
2.Accounting policies
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Basis of preparation of financial statements
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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 judgement in applying the Company's accounting policies (see note 3).
The financial statements have been presented in Pounds Sterling as this is the currency of the primary economic environment in which the Company operates and are rounded to the nearest pound.
The following principal accounting policies have been applied:
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Financial Reporting Standard 102 - reduced disclosure exemptions
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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 4 Statement of Financial Position paragraph 4.12(a)(iv);
∙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 11.41(b), 11.41(c), 11.41(e), 11.41(f), 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 HartsofStur Holdings Limited as at 30 June 2024 and these financial statements may be obtained from Companies House.
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HART & SONS (DORSET) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
2.Accounting policies (continued)
When determining whether the Company’s financial statements can be prepared on a going concern basis, the Directors considered the business activities, together with the factors likely to affect its future development, performance and position; these are set out in the Strategic Report.
As at the date of this report, the Directors have a reasonable expectation that the Company has adequate resources to continue in business for at least 12 months from the date of signing. Thus, the Directors continue to adopt the going concern basis of accounting in preparing the annual financial statements.
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.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Website development is amortised on a 3 year straight line basis. Software is amortised on a 6 year straight line basis. The basis is considered by the directors to represent the finite life of the intangible assets.
Amortisation charge for the year is included within 'administrative expenses' in the Profit and Loss Account.
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HART & SONS (DORSET) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
2.Accounting policies (continued)
Tangible assets are stated at historic cost less accumulated depreciation. Depreciation is not charged on freehold land. Depreciation on other tangible fixed assets is provided at rates calculated to write off the cost of those assets, less their estimated residual value, over their expected useful lives.
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount. Depreciation expenses are charged to 'administrative expenses' in the Profit and Loss Account.
Depreciation is provided on the following basis:
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.
At each Balance Sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately through the Profit and Loss Account.
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.
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Cash and cash equivalents
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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.
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HART & SONS (DORSET) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
2.Accounting policies (continued)
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Profit and Loss Account.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.
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.
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentation 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.
All other foreign exchange gains and losses are presented in the Profit or Loss Account within 'administrative expenses'.
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.
- 16 -
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HART & SONS (DORSET) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
2.Accounting policies (continued)
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to the Profit and Loss Account on a straight line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the period until the date the rent is expected to be adjusted to the prevailing market rate.
The Company has taken advantage of the optional exemption available on transition to FRS 102 which allows lease incentives on leases entered into before the date of transition to continue to be charged over the period to the first market rent review rather than the term of the lease.
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 Profit or Loss Account when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
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Interest receivable and similar income
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Interest receivable and similar income is recognised in the Profit or Loss Account using the effective interest method.
- 17 -
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HART & SONS (DORSET) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
2.Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in Profit or Loss Account except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; 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 balance sheet date.
- 18 -
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HART & SONS (DORSET) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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Judgements in applying accounting policies and key sources of estimation uncertainty
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In applying the Company’s accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors’ judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.
Critical judgements in applying the Company’s accounting policies
The critical judgements that the directors have made in the process of applying the Company's accounting policies that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below.
(i) Stock Provision
Provisions for stock items are made by the management of the Company based on the age and condition of stock and related costs.
Key sources of estimation uncertainty
The directors do not consider there to be any material key sources of estimation uncertainty.
Analysis of turnover by country of destination:
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All turnover is derived from the Company's principal activity.
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- 19 -
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HART & SONS (DORSET) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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The operating profit is stated after charging:
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Depreciation on tangible fixed assets
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Other operating lease rentals
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Amortisation of intangible assets
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During the year, the Company obtained the following services from the Company's auditors:
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Fees payable to the Company's auditor for the audit of the Company's annual financial statements
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The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.
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- 20 -
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HART & SONS (DORSET) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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Staff costs, including directors' remuneration, were as follows:
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Cost of defined contribution scheme
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The average monthly number of employees, including the directors, during the year was as follows:
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Company contributions to defined contribution pension schemes
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During the year retirement benefits were accruing to 3 directors (2023: 3) in respect of defined contribution pension schemes.
The highest paid director received remuneration of £99,140 (2023: £63,642).
The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £21,710 (2023: £115,800).
All directors and certain senior employees who have authority and responsibility for planning, directing and controlling activities of the Company are considered to be key management personnel. Total remuneration in respect of these individuals is £386,963 (2023: £431,963).
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Interest receivable and similar income
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Other interest receivable
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- 21 -
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HART & SONS (DORSET) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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Current tax on profits for the year
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Adjustments in respect of previous periods
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Origination and reversal of timing differences
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Factors affecting tax charge for the year
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The tax assessed for the year is higher than (2023 - lower than) the standard rate of corporation tax in the UK of 25.00% (2023 - 20.50%). The differences are explained below:
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Profit multiplied by standard rate of corporation tax in the UK of 25% (2023: 20.5%)
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Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
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Capital allowances for year in excess of depreciation
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Adjustments to tax charge in respect of prior periods
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Total tax charge for the year
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Factors that may affect future tax charges
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There were no factors that may affect future tax charges.
- 22 -
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HART & SONS (DORSET) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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Dividends paid on equity capital of £4.94 (2023: £7.60) per share.
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- 23 -
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HART & SONS (DORSET) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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The Company does not hold any tangible fixed assets under finance leases.
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Finished goods and goods for resale
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Stocks are stated net of a provision for impairment as at year end of £nil (2023: £nil).
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- 24 -
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HART & SONS (DORSET) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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Debtors: Amounts falling due within one year
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Prepayments and accrued income
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Included within trade debtors is a bad debt provision of £nil (2023: £nil).
Included within other debtors is corporation tax receivable of £10,967 (2023: £66,073).
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Amounts owed to group undertakings are unsecured, interest free and repayable on demand.
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- 25 -
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HART & SONS (DORSET) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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Credited to profit or loss
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The provision for deferred taxation is made up as follows:
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Accelerated capital allowances
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Allotted, called up and fully paid
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133,384 (2023 - 133,384) Ordinary shares of £1 each
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The Company has one class of ordinary shares; each share carries one voting right per share but no right
to fixed income.
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Profit & loss account
The profit and loss account includes all current and prior period retained profits and losses.
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 £107,322 (2023: £337,912). Contributions totalling £nil (2023: £nil) were payable to the fund at the balance sheet date.
- 26 -
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HART & SONS (DORSET) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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Commitments under operating leases
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At 30 June 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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Related party transactions
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The Company has taken advantage of the exemption available under FRS 102 Section 33 not to disclose transactions with its parent company because the Company is a subsidiary undertaking where 100% of the voting rights are controlled within the Group.
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Post balance sheet events
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There have been no significant events affecting the Company since the year end.
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Ultimate parent undertaking and controlling party
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The ultimate parent Company is Hartsofstur Holdings Limited, a company incorporated in the United Kingdom.
The parent undertaking of the smallest and largest Group, which includes the Company and for which Group accounts are prepared, is Hartsofstur Holdings Limited, a company incorporated in the United Kingdom. Copies of the Group financial statements of Hartsofstur Holdings Limited are available from Companies House.
There is no ultimate controlling party.
- 27 -
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