Registered number:
FOR THE YEAR ENDED 30 JUNE 2024
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HIB (LONDON) HOLDINGS LTD
COMPANY INFORMATION
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HIB (LONDON) HOLDINGS LTD
CONTENTS
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HIB (LONDON) HOLDINGS LTD
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
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.
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.
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.
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HIB (LONDON) HOLDINGS LTD
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
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
HiB debtor days and cash management are consistent with our budgeted expectations, reflecting effective financial oversight.
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.
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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.
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.
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 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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.
The directors who served during the year were:
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.
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HIB (LONDON) HOLDINGS LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
There have been no significant events affecting the Group since the year end.
The auditors, MHA, 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.
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HIB (LONDON) HOLDINGS LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HIB (LONDON) HOLDINGS LTD
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 policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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.
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.
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HIB (LONDON) HOLDINGS LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HIB (LONDON) HOLDINGS LTD (CONTINUED)
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 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. 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.
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.
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.
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HIB (LONDON) HOLDINGS LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HIB (LONDON) HOLDINGS LTD (CONTINUED)
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.
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HIB (LONDON) HOLDINGS LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HIB (LONDON) HOLDINGS LTD (CONTINUED)
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 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.
for and on behalf of
Chartered Accountants & Statutory Auditors
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HIB (LONDON) HOLDINGS LTD
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
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HIB (LONDON) HOLDINGS LTD
REGISTERED NUMBER: 07535356
CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2024
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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:
The notes on pages 18 to 39 form part of these financial statements.
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HIB (LONDON) HOLDINGS LTD
REGISTERED NUMBER: 07535356
COMPANY BALANCE SHEET
AS AT 30 JUNE 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 39 form part of these financial statements.
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