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Registered number: 07535356










HIB (LONDON) HOLDINGS LTD










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2024

 
HIB (LONDON) HOLDINGS LTD
 
 
COMPANY INFORMATION


Directors
Mr W Ginsberg 
Mrs C Ginsberg 
Mr R I Ginsberg 
Mr B S Garfield (appointed 1 February 2025)




Registered number
07535356



Registered office
6th Floor
2 London Wall Place

London

England

EC25 5AU




Independent auditors
MHA
Chartered Accountants & Statutory Auditors

2 London Wall Place

London

EC2Y 5AU





 
HIB (LONDON) HOLDINGS LTD
 

CONTENTS



Page
Group strategic report
 
1 - 2
Directors' report
 
3 - 4
Independent auditors' report
 
5 - 8
Consolidated statement of comprehensive income
 
9
Consolidated balance sheet
 
10 - 11
Company balance sheet
 
12
Consolidated statement of changes in equity
 
13
Company statement of changes in equity
 
14
Consolidated statement of cash flows
 
15 - 16
Consolidated analysis of net debt
 
17
Notes to the financial statements
 
18 - 39


 
HIB (LONDON) HOLDINGS LTD
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024

Introduction
 
On behalf of the board of directors, I am pleased to present the Strategic Report for HiB (London) Holdings Ltd for the financial year ending 30 June 2024. The report outlines the group’s performance, strategy, key risks, and future outlook. 

Business Review
 
HiB continues to build on its solid foundation as a leading provider of innovative and creative bathroom solutions, specialising in the design, manufacture, and sale of mirrors, cabinets, furniture, sanitaryware, accessories, ventilation and lighting. HiB serves a diverse customer base that includes bathroom retailers, builders’ merchants, and the project and contract sectors.
HiB Ltd reported a revenue decline for the financial year ending 30 June 2024, largely reflecting the broader challenges facing the industry amid rising costs, inflation, and economic instability. Global supply chain disruptions, including instability exacerbated by issues in the Red Sea, have significantly pushed up container prices, adding further strain to operations. Additionally, raw material and energy costs have surged, tightening margins. General economic uncertainty has also dampened consumer spending, particularly within the home improvement sector, leading to a slowdown in demand. In response, HiB has implemented strategic cost-management measures to mitigate these pressures while continuing to deliver value to its customers.
HiB remains committed to integrating Environmental, Social, and Governance (ESG) principles into its core operations. During the year, HiB strengthened its ESG framework through a strategic partnership with a leading platform that ensures ethical and legal governance while formalising the recording of its environmental impact, enabling future data-driven reduction targets. Additionally, HiB invested in a number of electric vehicles (EVs) and waste management strategies to reduce its carbon footprint and minimise the environmental impact across its operations and logistics.

Principal Risks and Uncertainties
 
Market Risk
HiB is impacted by fluctuations in consumer demand and confidence, rising raw material and transportation costs, and broader economic uncertainty, all of which can affect both sales performance and profit margins.
Supply Risk 
HiB is affected by supply chain challenges, including delays in raw material deliveries, rising costs, and potential shortages of components, which can disrupt production schedules, extend lead times, and affect the company’s ability to fulfil customer orders on time. To mitigate these risks, HiB has increased stock levels to maintain consistent product availability, adjusted pricing strategies, and diversified its supply sources across multiple regions to ensure a stable and reliable supply chain.
Currency Risk
HiB purchases products in both dollars and euros, exposing it to foreign exchange fluctuations. While steps have been taken to minimise this exposure through forward exchange contracts, these currency risks, combined with other factors, may still have an impact on gross margin.
The Directors continuously monitor all areas of risk and take proactive measures to effectively manage and mitigate potential impacts on the business.

Page 1

 
HIB (LONDON) HOLDINGS LTD
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024

Financial Key Performance Indicators
 
HiB employs a variety of financial and non-financial KPIs to evaluate performance on a daily, weekly, and monthly basis. The results for the past three years are as follows:
   
 30/06/2024    30/06/2023    30/06/2022
Turnover   £30,963,735   £35,305,001   £38,608,463
Gross Profit %   50.3%    48.3%    47.8%
Profit before taxation  £5,539,351   £6,600,236   £10,039,449

Other Key Performance Indicators
 
HiB debtor days and cash management are consistent with our budgeted expectations, reflecting effective financial oversight.

Future Outlook
 
HiB remains confident in its long-term strategy, actively investing in product innovation and expanding ranges to drive growth with both existing and new customers. Continued investments in people, systems, and facilities are ensuring that HiB has the infrastructure needed for future expansion. These efforts will position HiB well for growth as market conditions stabilise.
Despite current economic challenges, HiB resilience is underpinned by its dedication to innovative product design, supporting its team members and customers, and minimising its environmental impact. This strong foundation ensures HiB is well-equipped to seize future opportunities and achieve sustainable success.


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



................................................
Mr R I Ginsberg
Director

Date: 20 March 2025

Page 2

 
HIB (LONDON) HOLDINGS LTD
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024

The directors present their report and the financial statements for the year ended 30 June 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

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


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

make judgments and accounting estimates that are reasonable and prudent;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £4,198,152 (2023 - £5,227,202).

Dividends of £2,324,820 (2023 - £3,099,820) were paid during the year.

Directors

The directors who served during the year were:

Mr W Ginsberg 
Mrs C Ginsberg 
Mr R I Ginsberg 

Future developments

The Directors are focused on driving recovery and long-term growth by maintaining the management policies that have driven success in previous years. Through continued investment in product innovation and expanding HiB’s range to meet evolving consumer demands, exploring new market opportunities, and implementing cost management initiatives to enhance operational efficiency and protect margins, HiB is well-positioned for future success and resilience in an evolving market landscape.

Page 3

 
HIB (LONDON) HOLDINGS LTD
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024

Directors' indemnity insurance

Directors' liability and indemnity insurance was in force throughout the year to cover the directors and officers of the group against actions brought against them in their personal capacity. Neither the insurance nor the indemnity provide cover where the individual has acted fraudulently or dishonestly.

Disclosure of information to auditors

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

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

Post balance sheet events

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

Auditors

The auditorsMHAwill 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.
 





................................................
Mr R I Ginsberg
Director

Date: 20 March 2025

Page 4

 
HIB (LONDON) HOLDINGS LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HIB (LONDON) HOLDINGS LTD
 

Opinion


We have audited the financial statements of HIB (London) Holdings Ltd (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 June 2024, which comprise the Consolidated Statement of comprehensive income, the Consolidated and Company Balance sheets, the Consolidated Statement of cash flows, the Consolidated and Company Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 5

 
HIB (LONDON) HOLDINGS LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HIB (LONDON) HOLDINGS LTD (CONTINUED)


Other information


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


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


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


Page 6

 
HIB (LONDON) HOLDINGS LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HIB (LONDON) HOLDINGS LTD (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.


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

•  Enquiry of management and those charged with governance around actual and potential litigation and claims;
• Enquiry of entity staff in compliance functions to identify any instances of non-compliance with laws and          regulations;
• Performing audit work over the risk of management override of controls, including testing of journal entries and    other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;
• Reviewing financial statement disclosures and testing to supporting documentation to access compliance with applicable laws and regulations.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.


Page 7

 
HIB (LONDON) HOLDINGS LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HIB (LONDON) HOLDINGS LTD (CONTINUED)


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Neil Stern, FCA (Senior statutory auditor)
  
for and on behalf of
MHA
 
Chartered Accountants & Statutory Auditors
  
London



20 March 2025MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313).
Page 8

 
HIB (LONDON) HOLDINGS LTD
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024

2024
2023
Note
£
£

  

Turnover
 4 
30,963,735
35,305,001

Cost of sales
  
(15,385,027)
(18,252,488)

Gross profit
  
15,578,708
17,052,513

Distribution costs
  
(849,734)
(999,370)

Administrative expenses
  
(10,519,426)
(9,725,874)

Other operating income
 5 
237,491
244,222

Fair value movements
 16 
700,000
-

Operating profit
 6 
5,147,039
6,571,491

Interest receivable and similar income
 10 
389,250
52,756

Interest payable and similar expenses
 11 
3,062
(24,011)

Profit before taxation
  
5,539,351
6,600,236

Tax on profit
 12 
(1,341,199)
(1,373,034)

Profit for the financial year
  
4,198,152
5,227,202

  

Cash flow hedge reserve
 18 
1,223,681
(1,533,929)

Other comprehensive income for the year
  
1,223,681
(1,533,929)

Total comprehensive income for the year
  
5,421,833
3,693,273

Profit for the year attributable to:
  

Owners of the parent Company
  
4,198,152
5,227,202

  
4,198,152
5,227,202

Total comprehensive income for the year attributable to:
  

Owners of the parent Company
  
5,421,833
3,693,273

  
5,421,833
3,693,273

The notes on pages 18 to 39 form part of these financial statements.

Page 9

 
HIB (LONDON) HOLDINGS LTD
REGISTERED NUMBER: 07535356

CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 14 
793,530
811,729

Investment property
 16 
5,900,000
5,200,000

  
6,693,530
6,011,729

Current assets
  

Stocks
 17 
3,425,043
4,185,279

Debtors: amounts falling due within one year
 18 
5,127,170
5,008,590

Cash at bank and in hand
 19 
15,294,255
15,027,939

  
23,846,468
24,221,808

Creditors: amounts falling due within one year
 20 
(7,033,689)
(9,999,241)

Net current assets
  
 
 
16,812,779
 
 
14,222,567

Total assets less current liabilities
  
23,506,309
20,234,296

Provisions for liabilities
  

Deferred taxation
 21 
(589,298)
(414,298)

  
 
 
(589,298)
 
 
(414,298)

Net assets
  
22,917,011
19,819,998


Capital and reserves
  

Called up share capital 
 22 
100,000
100,000

Revaluation reserve
 23 
2,314,411
1,789,411

Foreign exchange reserve
 23 
91,830
(1,131,851)

Other reserves
 23 
41,829
41,829

Profit and loss account
 23 
20,368,941
19,020,609

  
22,917,011
19,819,998


Page 10

 
HIB (LONDON) HOLDINGS LTD
REGISTERED NUMBER: 07535356
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 30 JUNE 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
Mr R I Ginsberg
Director

Date: 20 March 2025

The notes on pages 18 to 39 form part of these financial statements.

Page 11

 
HIB (LONDON) HOLDINGS LTD
REGISTERED NUMBER: 07535356

COMPANY BALANCE SHEET
AS AT 30 JUNE 2024

2024
2023
Note
£
£

Fixed assets
  

Investments
 15 
91,929
91,929

  
91,929
91,929

Current assets
  

Debtors: amounts falling due within one year
 18 
49,854
49,924

Cash at bank and in hand
 19 
146
76

  
50,000
50,000

Creditors: amounts falling due within one year
 20 
(100)
(100)

Net current assets
  
 
 
49,900
 
 
49,900

Total assets less current liabilities
  
141,829
141,829

  

  

Net assets
  
141,829
141,829


Capital and reserves
  

Called up share capital 
 22 
100,000
100,000

Other reserves
 23 
41,829
41,829

Profit for the year
  
2,324,820
3,099,820

Dividends paid

  

(2,324,820)
(3,099,820)

  
 
 
141,829
 
 
141,829


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
Mr R I Ginsberg
Director

Date: 20 March 2025

The notes on pages 18 to 39 form part of these financial statements.

Page 12
 

 
HIB (LONDON) HOLDINGS LTD


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024



Called up share capital
Revaluation reserve
Foreign exchange reserve
Other reserves
Profit and loss account
Total equity


£
£
£
£
£
£



At 1 July 2022
100,000
1,789,411
402,078
41,829
16,893,227
19,226,545



Comprehensive income for the year


Profit for the year
-
-
-
-
5,227,202
5,227,202


Cash flow hedge movement (note 18)
-
-
(1,533,929)
-
-
(1,533,929)


Dividends: Equity capital
-
-
-
-
(3,099,820)
(3,099,820)





At 1 July 2023
100,000
1,789,411
(1,131,851)
41,829
19,020,609
19,819,998



Comprehensive income for the year


Profit for the year
-
-
-
-
4,198,152
4,198,152


Cash flow hedge movement (note 18)
-
-
1,223,681
-
-
1,223,681


Dividends: Equity capital
-
-
-
-
(2,324,820)
(2,324,820)


Transfer between reserves - movement on fair value revaluation and associated deferred tax
-
525,000
-
-
(525,000)
-



At 30 June 2024
100,000
2,314,411
91,830
41,829
20,368,941
22,917,011



The notes on pages 18 to 39 form part of these financial statements.

Page 13
 
HIB (LONDON) HOLDINGS LTD
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024


Called up share capital
Other reserves
Profit and loss account
Total equity

£
£
£
£


At 1 July 2022
100,000
41,829
-
141,829


Comprehensive income for the year

Profit for the year
-
-
3,099,820
3,099,820

Dividends: Equity capital
-
-
(3,099,820)
(3,099,820)



At 1 July 2023
100,000
41,829
-
141,829


Comprehensive income for the year

Profit for the year
-
-
2,324,820
2,324,820

Dividends: Equity capital
-
-
(2,324,820)
(2,324,820)


At 30 June 2024
100,000
41,829
-
141,829


The notes on pages 18 to 39 form part of these financial statements.

Page 14

 
HIB (LONDON) HOLDINGS LTD
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
4,198,152
5,227,202

Adjustments for:

Depreciation of tangible assets
289,806
209,133

Interest paid
(3,062)
24,011

Interest received
(389,250)
(52,756)

Taxation charge
1,341,199
1,373,034

Decrease in stocks
760,236
1,089,046

(Increase)/decrease in debtors
(26,750)
1,482,764

(Decrease)/increase in creditors
(2,674,615)
438,948

Net fair value (gains)/losses recognised in P&L
(700,000)
-

Corporation tax (paid)
(1,548,966)
(1,004,153)

Cash flow hedge
1,223,681
(1,533,929)

Net cash generated from operating activities

2,470,431
7,253,300


Cash flows from investing activities

Purchase of tangible fixed assets
(271,607)
(566,371)

Interest received
389,250
52,756

Net cash from investing activities

117,643
(513,615)
Page 15

 
HIB (LONDON) HOLDINGS LTD
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024


2024
2023

£
£



Cash flows from financing activities

Repayment of loans
-
(450,787)

Dividends paid
(2,324,820)
(3,099,820)

Interest paid
3,062
(24,011)

Net cash used in financing activities
(2,321,758)
(3,574,618)

Net increase in cash and cash equivalents
266,316
3,165,067

Cash and cash equivalents at beginning of year
15,027,939
11,862,872

Cash and cash equivalents at the end of year
15,294,255
15,027,939


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
15,294,255
15,027,939

15,294,255
15,027,939


The notes on pages 18 to 39 form part of these financial statements.

Page 16

 
HIB (LONDON) HOLDINGS LTD
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 JUNE 2024




At 1 July 2023
Cash flows
At 30 June 2024
£

£

£

Cash at bank and in hand

15,027,939

266,316

15,294,255


-

-

-


-

-

-


15,027,939
266,316
15,294,255

The notes on pages 18 to 39 form part of these financial statements.

Page 17

 
HIB (LONDON) HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

1.


General information

HIB (London) Holdings Ltd is a private company limited by shares incorporated in England and Wales. The address of the registered office is detailed on the company information page.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

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

The presentational and functional currency is sterling and the financial statements have been rounded to the nearest £1.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

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

Page 18

 
HIB (LONDON) HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

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

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

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

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

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.
The recognition of foreign exchange gains and losses arising on hedging instruments are set out in note 2.23.

Page 19

 
HIB (LONDON) HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.4

Revenue

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

Sale of goods

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

 
2.5

Operating leases: the Group as lessor

Rental income from operating leases is credited to profit or loss on a straight-line basis over the lease term.

Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight-line basis, unless another systematic basis is representative of the time pattern over which the lessor's benefit from the leased asset is diminished.

 
2.6

Operating leases: the Group as lessee

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

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

 
2.7

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

Page 20

 
HIB (LONDON) HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.8

Interest income

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

 
2.9

Finance costs

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

 
2.10

Pensions

Defined contribution pension plan

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

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

 
2.11

Share-based payments

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Group keeping the scheme open or the employee maintaining any contributions required by the scheme).
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.
Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.

Page 21

 
HIB (LONDON) HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.12

Current and deferred taxation

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

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

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

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

 
2.13

Tangible fixed assets

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

Page 22

 
HIB (LONDON) HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)


2.13
Tangible fixed assets (continued)

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Long-term leasehold property (building only)
-
7%
on cost
Plant and machinery
-
20%
on cost
Motor vehicles
-
25%
on cost
Fixtures and fittings
-
20%
on cost
Computer equipment
-
33%
on cost

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

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

 
2.14

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers or by the directors.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.15

Investment property

Investment property is carried at fair value determined annually by external valuers or by the directors and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

 
2.16

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 23

 
HIB (LONDON) HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.17

Stocks

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

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

 
2.18

Debtors

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

 
2.19

Cash and cash equivalents

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

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

 
2.20

Creditors

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

 
2.21

Provisions for liabilities

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

 
2.22

Financial instruments

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

The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Group's Balance sheet when the Group becomes party to the contractual provisions of the instrument.
Page 24

 
HIB (LONDON) HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)


2.22
Financial instruments (continued)


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

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

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

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Page 25

 
HIB (LONDON) HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)


2.22
Financial instruments (continued)


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

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

Other financial instruments

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

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

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.

 
2.23

Hedge accounting

The Group uses foreign currency forward contracts to manage its exposure to foreign exchange rates. These derivatives are measured at fair value at each balance sheet date.
When a hedged item is an unrecognised firm commitment, the cumulative hedging gain or loss on the hedged item is recognised as an asset or liability at fair value at each balance sheet date. The movement in the fair value is recognised in other comprehensive income and present in a separate cash flow hedge reserve.
Realised gains and losses on the hedging instruments and the hedged items are recognised in profit or loss for the year.

Page 26

 
HIB (LONDON) HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.24

Dividends

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

  
2.25

Damaged and faulty products provision

A provision is made for rectification costs in respect of damaged goods received and goods damaged in transit to customers.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the company's accounting policies, which are described above, management is
required to make judgments, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
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.
The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the
financial statements are described below:
Fixed assets
Judgments have been made in relation to the lives of tangible assets in particular the valuation and the
useful economic life and residual values of leasehold property and fixtures and fittings. The directors have concluded that the asset values and residual values are appropriate.
Valuation of stock
Stock is included at the lower of cost and net realisable value. The directors have reviewed the stock
obsolescence policy and are satisfied that stock is fairly valued at the year end.
Trade debtors
Judgments have been made on the recoverability of trade debtors and the valuation of provisions and the
directors are satisfied that debts are recoverable.
Provisions
Provisions for damaged and faulty products are calculated and provided for based on historic trends. The
directors have considered and concluded that the valuations of provisions are appropriate.
Foreign exchange hedging
Judgments have been made in relation to the fair value of forward exchange contracts by reference to the
spot rate at the balance sheet date. The directors have concluded that the contracts are fairly valued at
the year end.

Page 27

 
HIB (LONDON) HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

4.


Turnover

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


2024
2023
£
£

Distribution of bathroom products
30,963,735
35,305,001

30,963,735
35,305,001


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
28,331,333
32,218,217

Rest of Europe
2,603,774
3,079,899

Rest of the world
28,628
6,885

30,963,735
35,305,001



5.


Other operating income

2024
2023
£
£

Sundry income
237,491
244,222

237,491
244,222



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation of tangible fixed assets
289,806
209,133

Fees payable to the group's auditors and its associates for the audit of the group's annual financial statements
23,500
22,000

Exchange differences
304,921
580,898

Operating lease rentals
1,334,784
2,086,820

Defined contribution pension cost
138,286
119,522

Page 28

 
HIB (LONDON) HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

7.


Auditors' remuneration

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


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
23,500
22,000


8.


Employees

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


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


Wages and salaries
5,300,933
4,872,770
-
-

Social security costs
495,599
481,892
-
-

Cost of defined contribution scheme
138,286
119,522
-
-

5,934,818
5,474,184
-
-


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



Group
Group
Company
Company
        2024
        2023
        2024
        2023
            No.
            No.
            No.
            No.









Directors
10
10
4
4



Warehouse
66
67
-
-



Marketing and customer services
56
58
-
-



Finance and administration
10
13
-
-

142
148
4
4

Page 29

 
HIB (LONDON) HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
92,629
105,816

Group contributions to defined contribution pension schemes
4,000
4,000

96,629
109,816


The directors are the Key Management Personnel of the group.
During the year retirement benefits were accruing to 1 
 (2023 - 1) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £42,129 (2023 - £54,611).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £4,000 (2023 - £4,000).


10.


Interest receivable

2024
2023
£
£


Bank interest receivable
389,250
52,756

389,250
52,756


11.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
(3,062)
24,011

(3,062)
24,011

Page 30

 
HIB (LONDON) HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

12.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
1,166,199
1,283,235

Adjustments in respect of previous periods
-
89,799


1,166,199
1,373,034


Total current tax
1,166,199
1,373,034

Deferred tax


Revaluation
175,000
-

Total deferred tax
175,000
-


Tax on profit
1,341,199
1,373,034

Factors affecting tax charge for the year

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

2024
2023
£
£


Profit on ordinary activities before tax
5,539,351
6,600,236


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)
1,384,838
1,650,059

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
4,349
4,243

Capital allowances for year in excess of depreciation
32,125
(4,199)

Adjustments to tax charge in respect of prior periods
-
89,799

Non-taxable income
(149,070)
(138,193)

Other differences leading to an increase (decrease) in the tax charge
68,957
(228,675)

Total tax charge for the year
1,341,199
1,373,034

Page 31

 
HIB (LONDON) HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
 
12.Taxation (continued)


Factors that may affect future tax charges

The rate of corporation tax increased to 25% on 1 April 2023.


13.


Dividends

2024
2023
£
£


Dividends paid on equity capital
2,324,820
3,099,820

2,324,820
3,099,820


14.


Tangible fixed assets

Group






Long-term leasehold property
Motor vehicles
Fixtures and fittings
Computer equipment
Total

£
£
£
£
£



Cost or valuation


At 1 July 2023
84,576
70,730
1,544,937
368,306
2,068,549


Additions
-
-
182,887
88,720
271,607



At 30 June 2024

84,576
70,730
1,727,824
457,026
2,340,156



Depreciation


At 1 July 2023
41,369
70,730
953,968
190,753
1,256,820


Charge for the year
5,641
-
164,445
119,720
289,806



At 30 June 2024

47,010
70,730
1,118,413
310,473
1,546,626



Net book value



At 30 June 2024
37,566
-
609,411
146,553
793,530



At 30 June 2023
43,207
-
590,969
177,553
811,729

Page 32

 
HIB (LONDON) HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

15.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 July 2023
91,929



At 30 June 2024
91,929





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

HIB Limited
Distribution of bathroom products
Ordinary
100%
HIB Properties
Property holding
Ordinary
100%

The registered office of the subsidiary companies is the same as that of HIB (London) Holdings Ltd.





Page 33

 
HIB (LONDON) HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

16.


Investment property

Group


Long term leasehold investment property

£



Valuation


At 1 July 2023
5,200,000


Surplus on revaluation
700,000



At 30 June 2024
5,900,000


Comprising


Deemed cost
2,996,291

Annual revaluation surplus/(deficit):


2019
253,709

2022
1,950,000

2024
700,000

At 30 June 2024
5,900,000

The 2024 valuations were made by the directors, on an open market value for existing use basis.

The long term leasehold investment property was held as a tangible fixed asset until 17 August 2018 when it was transferred at the deemed cost of £2,996,291, being the historical cost of £3,323,807 and depreciation of £327,516. The value of £2,996,291 was considered by the directors to be the deemed cost and the fair value at the date of transfer.
The long term leasehold investment property had been revalued by Aitchison Raffety Limited (members of Royal Institution of Chartered Surveyors) as at 2 September 2022 at a value of £5,200,000. At 30 June 2022, £1,950,000 had been recognised as the fair value increase in the Statement of Comprehensive Income following the directors' valuation at that date. 
The directors have reviewed the market rates and recently had a rent review, based the rental yields it was established that the market value has gone up in line with the rental yield and therefore, the directors consider that the valuation of £5,900,000 at 30 June 2024 is appropriate.











Page 34

 
HIB (LONDON) HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

17.


Stocks

Group
Group
2024
2023
£
£

Finished goods and goods for resale
3,425,043
4,185,279

3,425,043
4,185,279


Stock recognised in cost of sales during the year as an expense was £13,421,216 (2023 - £15,833,014).


18.


Debtors

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


Trade debtors
4,437,417
4,555,220
-
-

Amounts owed by group undertakings
-
-
49,854
49,924

Other debtors
58,051
77,091
-
-

Prepayments and accrued income
539,872
376,279
-
-

Financial instruments
91,830
-
-
-

5,127,170
5,008,590
49,854
49,924


The group uses foreign currency forward contracts to reduce exposure to foreign exchange rate fluctuations on highly profitable forecast transactions. These are held at amortised cost and  accounted for as a cash flow hedge. These contracts are valued at fair value and included in debtors of £91,830 (2023: £1,131,851 creditor) with a cash flow hedge net gain of £1,223,681, (2023 loss of £1,533,929) included in the cash flow hedge reserve.    


19.


Cash and cash equivalents

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

Cash at bank and in hand
15,294,255
15,027,939
146
76

15,294,255
15,027,939
146
76


Page 35

 
HIB (LONDON) HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

20.


Creditors: Amounts falling due within one year

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

Trade creditors
1,611,096
1,721,212
-
-

Amounts owed to group undertakings
-
-
100
100

Corporation tax
267,404
558,341
-
-

Other taxation and social security
533,733
859,664
-
-

Other creditors
1,261,703
2,012,269
-
-

Accruals and deferred income
3,359,753
3,715,904
-
-

Financial instruments
-
1,131,851
-
-

7,033,689
9,999,241
100
100





21.


Deferred taxation


Group





2024
2023


£

£






At beginning of year
(414,298)
(414,298)


Charged to profit or loss
(175,000)
-



At end of year
(589,298)
(414,298)






The provision for deferred taxation is made up as follows:

Group
Group
2024
2023
£
£

Revaluation
(589,298)
(414,298)

(589,298)
(414,298)

Page 36

 
HIB (LONDON) HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

22.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



25,000 (2023 - 25,000) Ordinary A shares of £1.00 each
25,000
25,000
900 (2023 - 900) Ordinary B shares of £1.00 each
900
900
27,000 (2023 - 27,000) Ordinary C shares of £1.00 each
27,000
27,000
9,000 (2023 - 9,000) Ordinary D shares of £1.00 each
9,000
9,000
38,000 (2023 - 38,000) Ordinary E shares of £1.00 each
38,000
38,000
100 (2023 - 100) Ordinary F shares of £1.00 each
100
100

100,000

100,000

There are differing rights and restrictions applying to the classes of shares. The voting rights, preferences and restrictions attaching to each class of shares are detailed in the articles.



23.


Reserves

Revaluation reserve

The revaluation reserve is the amount arising on the revaluation of investment property, being the difference between the amount of the asset determined under the historical cost convention and the amount determined by the fair value of the asset. The revaluation reserve is a non-distributable reserve.

Other reserves

The balance on the other reserve relates to the fair value of options granted under the Enterprise Management Incentive Scheme detailed in note 24. The balance is non-distributable.

Foreign exchange reserve

The balance on the other reserve relates to gains / (losses) on foreign exchange forward agreements included in a cash flow hedging relationship in place at the balance sheet date and is non-distributable.

Profit and loss account

The profit and loss account is represented by retained earnings.

Page 37

 
HIB (LONDON) HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

24.


Share-based payments

The group has an Enterprise Management Incentive Scheme set up during a prior year for five directors of a subsidiary company. During a previous year, options were granted to one director of a subsidiary company. Options are exercisable at a pre-determined price and have vested at the year end date. The options do not include any performance conditions. The options are settled in equity once exercised. The options lapse if they remain unexercised after a period of ten years from the date of grant. Options are forfeited if the director leaves the group before the options are exercised.

Weighted average exercise price (pence)
2024
Number
2024
Weighted average exercise price
(pence)
2023
Number
2023

Outstanding at the beginning of the year

4915

41,829

4915
 
41,829
 
Outstanding at the end of the year
4915

41,829

4915
 
41,829
 





25.


Pension commitments

The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £138,286 (2023 - £119,522). Contributions totalling £24,478 (2023 - £22,105) were payable to the fund at the reporting date.


26.


Commitments under operating leases

At 30 June 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2024
2023
£
£

Not later than 1 year
926,897
752,175

Later than 1 year and not later than 5 years
3,216,900
2,383,987

Later than 5 years
2,146,509
2,086,820

6,290,306
5,222,982
Page 38

 
HIB (LONDON) HOLDINGS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

27.Directors' personal guarantees

In respect of the bank loans, the directors Mr W Ginsberg and Mr R I Ginsberg have provided personal guarantees for a principal amount of £1,000,000 plus interest and other costs, with a legal charge over the group's  leasehold property, limited to £500,000.


28.


Related party transactions

Following repayments in the year of £520,418, amounts owed at the balance sheet date to Mr R I Ginsberg (a director and the ultimate controlling party)  totalled £785,216 (2023: £1,305,634). These amounts are unsecured, interest free and repayable on demand.
Following repayments in the year of £150,000, amounts owed at the balance sheet date to Mr W B Ginsberg (a director) totalled £250,000 (2023: £400,000). These amounts are unsecured, interest free and repayable on demand.
During the year dividends of £2,324,820 (2023: £3,099,820) were paid to the Ginsberg family.


29.


Controlling party

The ultimate controlling party is the director Mr R I Ginsberg (2023: Mr R I Ginsberg) by way of his majority shareholding in HIB (London) Holdings Ltd.

 
Page 39