Company Registration No. 14775948 (England and Wales)
H&J Group Holdings Limited
Annual report and
group financial statements
for the year ended 31 March 2024
H&J Group Holdings Limited
Company information
Directors
Michael Byrne
(Appointed 3 April 2023)
Jason Leavesley
(Appointed 11 April 2023)
Philip Symons
(Appointed 11 May 2023)
Company number
14775948
Registered office
26-32 Oxford Road
Bournemouth
Dorset
England
BH8 8EZ
Independent auditor
Saffery LLP
Midland House
2 Poole Road
Bournemouth
Dorset
BH2 5QY
H&J Group Holdings Limited
Contents
Page
Strategic report
1 - 4
Directors' report
5
Directors' responsibilities statement
6
Independent auditor's report
7 - 10
Group statement of comprehensive income
11
Group statement of financial position
12
Company statement of financial position
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 35
H&J Group Holdings Limited
Strategic report
For the period ended 31 March 2024
1

The directors present their strategic report for H&J Group Holdings Limited for the year ended 31st March 2024. The principal activity of the group is the marketing and sales of collectable coins and stamps.

New Group Structure

In April 2023, the company became employee and management owned, through an Employee Ownership Trust. By placing the destiny of the business in the hands of its employees and management team, it aligns individual and collective aspirations, fostering an environment of shared responsibility, ownership and growth.

To facilitate this, a new Holding Company was formed, H&J Holdings Limited. This group structure brings Harrington & Byrne Limited and Jubilee Mint Limited together under a common ownership. The day-to-day operations of the subsidiaries has not been affected, other than creating the above benefits.

Business Review

The past year has been relatively successful, seizing the opportunities with key events such as King Charles’ Coronation and the launch of the D-Day Campaign. New strategies were instigated to maximise cost-effective customer acquisition, reduce the risk of fraud and protect against various external risks, to ensure growth in the future.

Group turnover was £45m. Profit margins were subject to the impact of external threats, such as price fluctuations in precious metals, credit risks, and inflation. Group costs continue to be managed tightly, combined with the emphasis on customer acquisition and retention, the future remains positive.

Principal risks and uncertainties

 

Price risk

Fluctuations in the price of precious metal are a risk to the company. The directors constantly review the cost price of coins and adjust the sales price when required in order to maintain margin.

Credit risk

The company continues to review and evolve controls and procedures in order to manage our credit risk and protect against the increasing risk of fraud, and ensure aged debtors and bad debt are kept to a minimum.

Currency

The company purchases some goods in Euros and is exposed to currency fluctuations. This risk is low given the relatively low value of transactions.

Inflation risk

The directors have considered the potential risks from increased inflation, including staff costs and utilities. Costs and the supply chain remain tightly controlled, with non-essential spend managed accordingly. Budgets are robustly managed and strategic investments are reviewed regularly for on-going financial viability.

Interest risk

The company currently has no loans, so this risk is low.

Key performance indicators

During the last 12 months group turnover was £45.1m. The gross profit margin was 38% and operating profit was £6.7m.

H&J Group Holdings Limited
Strategic report (continued)
For the period ended 31 March 2024
2

Future Developments

As we move forward, the continuity of our tried-and-tested business practices combined with our proactive approach to leveraging market opportunities like the Anniversary of D-Day, the company stands well-positioned to navigate any challenges that lie ahead. The directors remain optimistic and committed to the enduring success of H&J Group Holdings Limited, valuing the trust of our stakeholders and working tirelessly to uphold and further the reputation of our brand.

H&J Group Holdings Limited
Strategic report (continued)
For the period ended 31 March 2024
3
Promoting the success of the company

The Strategic Report must include a statement outlining how the directors of H&J Group Holdings Limited have considered the factors in section 172(1)(a)-(f) of the Companies Act 2006 when fulfilling their duties. In promoting the success of the H&J Group, the Directors are committed to acting in the best interests of members and stakeholders, specifically in the context of marketing and sales of collectable coins and stamps. Below, each of the six matters in Section 172(1)(a)-(f) is addressed in relation to the company’s strategic approach and activities.

(a) The likely consequences of any decision in the long term:
In making long-term decisions, the Directors assess market trends, their impact on the business model, and continually review the company’s strategy in light of potential risks and uncertainties. Each decision is made with the long-term interests of all stakeholders in mind, recognising the importance of aligning with stakeholder expectations to support our sustainable growth and overall strategic goals.

(b) The interests of the Company's employees:
H&J Holdings, consisting of Jubilee Mint Limited and Harrington & Byrne Limited, is primarily owned by H&J Trustees Limited, an Employee-Owned Trust (EOT). This ownership structure fosters a sense of shared responsibility, pride, and collaboration, creating a supportive and inclusive workplace. Through the EOT, employees benefit from regular engagement with Directors, more job stability, and twice-yearly staff bonuses, alongside frequent remuneration reviews. This structure encourages higher employee engagement and contributes to a more committed and motivated workforce.

(c) The need to foster the Company's business relationships with suppliers, customers, and others:
Customer acquisition and retention are pivotal to our success. To achieve this, we emphasise Customer Service excellence by training our staff to provide exceptional service and maintain high product quality. Strong relationships with our suppliers are also fundamental, and we are committed to meeting payment terms as agreed to sustain trusted partnerships that contribute to our operational stability and growth.

(d) The impact of the Company's operations on the community and the environment:
The Group is committed to supporting the local community and respecting the environment through various initiatives. Our location was chosen with employee travel in mind, aiming to reduce commute times and encourage greener transport options, which aligns with our commitment to sustainability. Additionally, we actively support local businesses and, in the past, have collaborated with locally-based national charities, donating a percentage of sales from selected products to these causes. This approach reflects our dedication to creating a positive community impact.

(e) The desirability of the Company maintaining a reputation for high standards of business conduct:
The Board is dedicated to maintaining the highest standards of conduct, particularly in customer care and employee well-being. Our policies are designed to protect our customers, with special attention to those who may be more vulnerable, ensuring appropriate and compassionate handling of all customer interactions. Key internal policies are continually reviewed and embedded in our corporate culture, covering areas such as Data Protection, Anti-bribery and Corruption, Anti-money Laundering, and Anti-Discrimination.

(f) The need to act fairly as between shareholders of the Company:
The Board operates at a strategic level, setting the direction for the company and ensuring that its impact on all stakeholders is thoughtfully assessed. As an Employee-Owned Trust, the company’s shareholders are its employees, and acting fairly between them is a core principle. Through sound governance and best practices, the Board ensures that the company’s actions serve the greatest benefit for all stakeholders and shareholders.

These statements collectively reflect H&J Group’s commitment to sustainable growth, ethical standards, and the fair treatment of all those connected to our business.

H&J Group Holdings Limited
Strategic report (continued)
For the period ended 31 March 2024
4

On behalf of the board

Michael Byrne
Director
3 December 2024
H&J Group Holdings Limited
Directors' report
For the period ended 31 March 2024
5

The directors present their annual report and financial statements for the period ended 31 March 2024.

Principal activities

The principal activity of the company is that of a holding company. The principal activity of the group is that of the marketing and sales of collectable coins and stamps. The company was incorporated on 3 April 2023 in order to acquire the entire share capital of Harrington & Byrne Limited through a share for share exchange, and the entire share capital of The Jubilee Mint Limited through a combination of share for share exchange.

Results and dividends

The results for the Period are set out on page 11. The Group have applied the principles of merger accounting in preparing the financial statements. This means that on the acquisition of Harrington & Byrne Limited through a share for share exchange, the group has prepared the financial statements as though the group had always existed and therefore on consolidation there is comparative information presented.

Ordinary dividends were paid amounting to £7,500,000. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the Period and up to the date of signature of the financial statements were as follows:

Michael Byrne
(Appointed 3 April 2023)
Jason Leavesley
(Appointed 11 April 2023)
Philip Symons
(Appointed 11 May 2023)
Auditor

Saffery LLP were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Energy and carbon report

The group is applying exemption from disclosure as H&J Group Holdings Limited and all other subsidiary companies are not mandated to report on the basis they are individually small or medium in size.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Michael Byrne
Director
3 December 2024
H&J Group Holdings Limited
Directors' responsibilities statement
For the period ended 31 March 2024
6

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

 

Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

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

H&J Group Holdings Limited
Independent auditor's report
To the members of H&J Group Holdings Limited
7
Opinion

We have audited the financial statements of H&J Group Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the Period ended 31 March 2024 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 group and parent 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

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.

H&J Group Holdings Limited
Independent auditor's report (continued)
To the members of H&J Group Holdings Limited
8

Opinions on other matters prescribed by the Companies Act 2006

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

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 their 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:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 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 parent 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.

H&J Group Holdings Limited
Independent auditor's report (continued)
To the members of H&J Group Holdings Limited
9

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

 

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the group and parent company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the group and parent company by discussions with directors and by updating our understanding of the sector in which the group and parent company operates.

 

Laws and regulations of direct significance in the context of the group and parent company include The Companies Act 2006 and UK Tax legislation.

 

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of group and parent company financial statement disclosures. We reviewed the parent company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the parent 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 parent 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 parent company and the parent company's members as a body, for our audit work, for this report, or for the opinions we have formed.

 

H&J Group Holdings Limited
Independent auditor's report (continued)
To the members of H&J Group Holdings Limited
10
Jamie Lane (Senior Statutory Auditor)
For and on behalf of Saffery LLP
3 December 2024
Statutory Auditors
Midland House
2 Poole Road
Bournemouth
Dorset
BH2 5QY
H&J Group Holdings Limited
Group statement of comprehensive income
For the period ended 31 March 2024
11
Year
Year
ended
ended
31 March
31 March
2024
2023
Notes
£
£
Turnover
3
45,107,216
44,336,362
Cost of sales
(27,728,793)
(27,867,837)
Gross profit
17,378,423
16,468,525
Administrative expenses
(10,733,003)
(7,839,206)
Other operating income
11,826
-
Operating profit
4
6,657,246
8,629,319
Interest receivable and similar income
8
66,764
19,039
Interest payable and similar expenses
9
-
0
(1,066)
Profit before taxation
6,724,010
8,647,292
Tax on profit
10
(2,052,493)
(1,641,875)
Profit for the financial Period
22
4,671,517
7,005,417
Profit for the financial Period is all attributable to the owners of the parent company.
Total comprehensive income for the Period is all attributable to the owners of the parent company.
H&J Group Holdings Limited
Group statement of financial position
As at 31 March 2024
12
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
8,163,026
-
0
Other intangible assets
12
41,612
36,118
Total intangible assets
8,204,638
36,118
Tangible assets
13
97,983
78,023
8,302,621
114,141
Current assets
Stocks
16
516,773
1,330,180
Debtors
17
12,292,755
9,475,448
Cash at bank and in hand
3,727,662
4,022,341
16,537,190
14,827,969
Creditors: amounts falling due within one year
18
(4,345,826)
(3,498,993)
Net current assets
12,191,364
11,328,976
Total assets less current liabilities
20,493,985
11,443,117
Provisions for liabilities
Deferred tax liability
19
27,036
22,222
(27,036)
(22,222)
Net assets
20,466,949
11,420,895
Capital and reserves
Called up share capital
21
148
100
Share premium account
22
20,897
-
0
Other reserves
22
11,853,592
-
0
Profit and loss reserves
22
8,592,312
11,420,795
Total equity
20,466,949
11,420,895
The financial statements were approved by the board of directors and authorised for issue on 3 December 2024 and are signed on its behalf by:
03 December 2024
Michael Byrne
Director
Company registration number 14775948 (England and Wales)
H&J Group Holdings Limited
Company statement of financial position
As at 31 March 2024
31 March 2024
13
2024
Notes
£
£
Fixed assets
Investments
14
200
Capital and reserves
Called up share capital
21
148
Share premium account
22
20,897
Profit and loss reserves
22
(20,845)
Total equity
200

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the period was £7,479,155.

 

The financial statements were approved by the board of directors and authorised for issue on 3 December 2024 and are signed on its behalf by:
03 December 2024
Michael Byrne
Director
Company registration number 14775948 (England and Wales)
H&J Group Holdings Limited
Group statement of changes in equity
For the period ended 31 March 2024
14
Share capital
Share premium account
Merger reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2022
100
-
0
-
9,025,378
9,025,478
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
-
7,005,417
7,005,417
Dividends
11
-
-
-
(4,610,000)
(4,610,000)
Balance at 31 March 2023
100
-
0
-
11,420,795
11,420,895
Period ended 31 March 2024:
Profit and total comprehensive income
-
-
-
4,671,517
4,671,517
Issue of share capital
21
48
20,897
-
-
20,945
Dividends
11
-
-
-
(7,500,000)
(7,500,000)
Merger accounting for the Jubilee Mint Limited
-
-
11,853,592
-
11,853,592
Balance at 31 March 2024
148
20,897
11,853,592
8,592,312
20,466,949
H&J Group Holdings Limited
Company statement of changes in equity
For the period ended 31 March 2024
15
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 3 April 2023
-
0
-
0
-
0
-
Period ended 31 March 2024:
Profit and total comprehensive income
-
-
7,479,155
7,479,155
Issue of share capital
21
148
20,897
-
21,045
Dividends
11
-
-
(7,500,000)
(7,500,000)
Balance at 31 March 2024
148
20,897
(20,845)
200
H&J Group Holdings Limited
Group statement of cash flows
For the period ended 31 March 2024
16
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
6,770,819
5,048,716
Income taxes paid
(2,017,172)
(1,485,000)
Net cash inflow from operating activities
4,753,647
3,563,716
Investing activities
Cash acquired on business combination
2,387,117
-
Purchase of intangible assets
(317)
(738)
Purchase of tangible fixed assets
(23,880)
(32,164)
Proceeds from disposal of tangible fixed assets
1,046
101
Interest received
66,764
19,039
Net cash generated from/(used in) investing activities
2,430,730
(13,762)
Financing activities
Proceeds from issue of shares
20,944
-
Interest paid
-
(1,066)
Dividends paid to equity shareholders
(7,500,000)
(4,610,000)
Net cash used in financing activities
(7,479,056)
(4,611,066)
Net decrease in cash and cash equivalents
(294,679)
(1,061,112)
Cash and cash equivalents at beginning of Period
4,022,341
5,083,453
Cash and cash equivalents at end of Period
3,727,662
4,022,341
H&J Group Holdings Limited
Notes to the group financial statements
For the period ended 31 March 2024
17
1
Accounting policies
Company information

H&J Group Holdings Limited (“the company”) is a private company limited by shares incorporated in England and Wales. The registered office is 26-32 Oxford Road, Bournemouth, England, BH8 8EZ .

 

The group consists of H&J Group Holdings Limited and all of its subsidiaries.

1.1
Reporting period

The financial statements have been prepared for a period which is less than 12 months as this is the first set of financial statements post incorporation.

1.2
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include financial instruments at fair value. The principal accounting policies adopted are set out below.

1.3
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

The merger accounting method has been applied to the Harrington and Byrne Limited business combination. Under the merger accounting method, the Group accounts for Harrington and Byrne Limited as if it had always been combined since the original acquisition of the relevant entities by the ultimate controlling party, resulting in the results being shown in the comparatives for the group. The merger accounting method involves accounting for assets and liabilities of the acquired business using existing carrying values rather than fair values, as a result no goodwill has arisen on this combination.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

H&J Group Holdings Limited
Notes to the group financial statements (continued)
For the period ended 31 March 2024
1
Accounting policies (continued)
18
1.4
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company H&J Group Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 March 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group statement of financial position at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.5
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

H&J Group Holdings Limited
Notes to the group financial statements (continued)
For the period ended 31 March 2024
1
Accounting policies (continued)
19
1.6
Turnover

Turnover 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. 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 revenue is recognised:

 

Sales of goods

 

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:

 

The amounts invoiced in advance which cannot be recognised as turnover is included in deferred income at the year end.

1.7
Intangible fixed assets - goodwill

Goodwill arising on the acquisition of subsidiary undertakings represents the excess of the fair value of the consideration over the fair value of the identifiable assets and liabilities acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.8
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Website
20% straight line
Software
33% straight line
1.9
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

H&J Group Holdings Limited
Notes to the group financial statements (continued)
For the period ended 31 March 2024
1
Accounting policies (continued)
20

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment
15% reducing balance
Fixtures and fittings
15% reducing balance & 15% straight line
Computers
20% - 33% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

1.10
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.11
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

H&J Group Holdings Limited
Notes to the group financial statements (continued)
For the period ended 31 March 2024
1
Accounting policies (continued)
21

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.12
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.13
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.14
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

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

 

Financial assets and liabilities are offset and 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 debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

H&J Group Holdings Limited
Notes to the group financial statements (continued)
For the period ended 31 March 2024
1
Accounting policies (continued)
22
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

H&J Group Holdings Limited
Notes to the group financial statements (continued)
For the period ended 31 March 2024
1
Accounting policies (continued)
23
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.15
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

 

Merger relief has been applied where equity of an acquired company has been purchased via the issue of shares.

1.16
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

H&J Group Holdings Limited
Notes to the group financial statements (continued)
For the period ended 31 March 2024
1
Accounting policies (continued)
24
1.17
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.18
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.19
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

2
Critical accounting judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

 

- The useful economic life of goodwill and the period over which to write off goodwill

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
45,107,216
44,336,362
2024
2023
£
£
Other revenue
Interest income
66,764
19,039

The entirety of the turnover generated by the company has arisen from its principal activity.

H&J Group Holdings Limited
Notes to the group financial statements (continued)
For the period ended 31 March 2024
25
4
Operating profit
2024
2023
£
£
Operating profit for the period is stated after charging/(crediting):
Exchange losses
1,874
46
Depreciation of owned tangible fixed assets
47,475
35,936
Loss/(profit) on disposal of tangible fixed assets
9,818
(77)
Amortisation of intangible assets
924,886
10,607
Impairment of intangible assets
8,393
-
0
Operating lease charges
187,719
119,401
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company's subsidiaries
33,090
23,545
For other services
Taxation compliance services
4,500
2,000
All other non-audit services
4,910
6,700
9,410
8,700
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the Period was:

Group
Company
2024
2023
2024
Number
Number
Number
Sales
59
47
-
Administration
32
8
-
Management
5
6
-
Total
96
61
-
0
H&J Group Holdings Limited
Notes to the group financial statements (continued)
For the period ended 31 March 2024
6
Employees (continued)
26

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
£
£
£
Wages and salaries
4,773,249
4,054,091
-
0
Social security costs
716,500
666,953
-
Pension costs
185,800
117,909
-
0
5,675,549
4,838,953
-
0
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
521,332
610,181
Company pension contributions to defined contribution schemes
43,427
26,068
564,759
636,249
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
227,628
287,132
Company pension contributions to defined contribution schemes
22,732
23,164

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023: 3).

 

All key management personnel were remunerated through directors' remuneration.

8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
66,764
19,039
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
-
1,066
H&J Group Holdings Limited
Notes to the group financial statements (continued)
For the period ended 31 March 2024
27
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
2,065,709
1,643,953
Adjustments in respect of prior periods
-
0
320
Total current tax
2,065,709
1,644,273
Deferred tax
Origination and reversal of timing differences
(13,216)
(2,398)
Total tax charge
2,052,493
1,641,875

The actual charge for the Period can be reconciled to the expected charge for the Period based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
6,724,010
8,647,292
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
1,681,003
1,642,985
Tax effect of expenses that are not deductible in determining taxable profit
142,857
201
Adjustments in respect of prior years
-
0
320
Amortisation on assets not qualifying for tax allowances
226,750
-
0
Deferred tax
-
0
(576)
Fixed asset differences
1,883
(1,055)
Taxation charge
2,052,493
1,641,875
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Ordinary
7,500,000
4,610,000
H&J Group Holdings Limited
Notes to the group financial statements (continued)
For the period ended 31 March 2024
28
12
Intangible fixed assets
Group
Goodwill
Website
Total
£
£
£
Cost
At 1 April 2023
-
0
53,336
53,336
Additions - separately acquired
9,070,029
317
9,070,346
Additions on acquisition
-
0
28,201
28,201
Cost on acquisition
-
0
8,982
8,982
At 31 March 2024
9,070,029
90,836
9,160,865
Amortisation and impairment
At 1 April 2023
-
0
17,218
17,218
Amortisation charge in the period
907,003
17,883
924,886
Amoritsation on acquisition
-
0
8,393
8,393
Transfers
-
0
5,730
5,730
At 31 March 2024
907,003
49,224
956,227
Carrying amount
At 31 March 2024
8,163,026
41,612
8,204,638
At 31 March 2023
-
0
36,118
36,118
The company had no intangible fixed assets at 31 March 2024.

More information on impairment movements in the Period is given in note .

H&J Group Holdings Limited
Notes to the group financial statements (continued)
For the period ended 31 March 2024
29
13
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 April 2023
-
0
104,160
83,141
187,301
Additions
-
0
22,074
1,806
23,880
Additions on acquisition
4,407
58,278
133,322
196,007
Disposals
-
0
(12,481)
-
0
(12,481)
Transfers
-
0
-
0
(8,982)
(8,982)
At 31 March 2024
4,407
172,031
209,287
385,725
Depreciation and impairment
At 1 April 2023
-
0
48,637
60,641
109,278
Depreciation charge in the period
244
18,995
28,236
47,475
Depreciation on acquisition
2,783
34,108
101,445
138,336
Eliminated in respect of disposals
-
0
(1,617)
-
0
(1,617)
Transfers
-
0
-
0
(5,730)
(5,730)
At 31 March 2024
3,027
100,123
184,592
287,742
Carrying amount
At 31 March 2024
1,380
71,908
24,695
97,983
At 31 March 2023
-
0
55,523
22,500
78,023
The company had no tangible fixed assets at 31 March 2024.
14
Fixed asset investments
Group
Company
2024
2023
2024
Notes
£
£
£
Investments in subsidiaries
15
-
0
-
0
200
H&J Group Holdings Limited
Notes to the group financial statements (continued)
For the period ended 31 March 2024
14
Fixed asset investments (continued)
30
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 3 April 2023
-
Additions
200
At 31 March 2024
200
Carrying amount
At 31 March 2024
200
At 31 March 2023
-
15
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Address
Class of
% Held
shares held
Direct
Harrington & Byrne Limited
1
Ordinary
100.00
The Jubilee Mint Limited
2
Ordinary
100.00

Registered office addresses (all UK unless otherwise indicated):

1
17 Hanover Square, Mayfair, London, England, W1S 1BN
2
26-32 Oxford Road, Bournemouth, England, BH8 8EZ
16
Stocks
Group
Company
2024
2023
2024
£
£
£
Finished goods and goods for resale
516,773
1,330,180
-
0
H&J Group Holdings Limited
Notes to the group financial statements (continued)
For the period ended 31 March 2024
31
17
Debtors
Group
Company
2024
2023
2024
Amounts falling due within one year:
£
£
£
Trade debtors
11,157,084
7,812,844
-
0
Other debtors
24,485
1,005,902
-
0
Prepayments and accrued income
1,111,186
656,702
-
0
12,292,755
9,475,448
-
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
£
£
£
Trade creditors
1,588,283
1,398,817
-
0
Corporation tax payable
1,161,043
848,238
-
0
Other taxation and social security
331,540
130,113
-
Other creditors
19,404
45,131
-
0
Accruals and deferred income
1,245,556
1,076,694
-
0
4,345,826
3,498,993
-
0
H&J Group Holdings Limited
Notes to the group financial statements (continued)
For the period ended 31 March 2024
32
19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
27,036
22,222
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the Period:
£
£
Liability at 1 April 2023
22,222
-
Credit to profit or loss
(13,216)
-
On acquisition
18,030
-
Liability at 31 March 2024
27,036
-
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
185,800
117,909

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. Contributions totalling £18,808 (2023: £12,144) were payable to the fund at the Statement of Financial Position date and are included in creditors.

21
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 0.01p each
1,130,800
-
113
-
A Ordinary shares of 0.01p each
345,400
-
35
-
1,476,200
-
148
-
H&J Group Holdings Limited
Notes to the group financial statements (continued)
For the period ended 31 March 2024
21
Share capital (continued)
33

The Ordinary shares have full rights to attend and vote, dividends and a return of capital on redemption.

The A Ordinary shares shall not be entitled to receive dividends until such time as the deferred consideration has been discharged in full, no voting rights and a return of capital on redemption.

 

On 11 April 2023 1,000,000 Ordinary shares were issued in exchange for the entire share capital in Harrington & Byrne Limited.

 

On 11 April 2023 130,831 Ordinary shares were issued in exchange for the entire share capital in The Jubilee Mint Limited.

 

On 4 May 2023 345,532 A Ordinary shares were issued at 0.6p per share.

 

 

22
Reserves

Called up share capital

The called up share capital reserve represents the nominal value of equity shares issued.

 

Share premium account

The share premium account reserve represents the amounts above the nominal value of shares issued and called up by the Company.

 

Merger reserve

The merger reserve represents the difference between the nominal value of shares issued and the fair value of the assets received during the reorganisation. The merger reserve arose following a share for share exchange between The Jubilee Mint Limited and H&J Group Holdings Limited as part of the group reorganisation during the year.

 

Profit and loss reserve

The profit and loss reserve represents the Group’s cumulative net gains and losses less contributions/distributions.

 

H&J Group Holdings Limited
Notes to the group financial statements (continued)
For the period ended 31 March 2024
34
23
Acquisition of a business

On 11 April 2023 the group acquired 100 percent of the issued capital of Jubilee Mint Limited.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Intangible assets
19,808
(9,904)
9,904
Property, plant and equipment
57,671
(28,836)
28,835
Inventories
248,304
(24,830)
223,474
Trade and other receivables
2,084,866
(293,122)
1,791,744
Cash and cash equivalents
2,387,117
-
2,387,117
Trade and other payables
(1,996,073)
-
(1,996,073)
Deferred tax
(18,030)
-
(18,030)
Total identifiable net assets
2,783,663
(356,692)
2,426,971
Goodwill
9,070,029
Total consideration
11,497,000
The consideration was satisfied by:
£
Share for share exchange
11,497,000
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
8,564,869
Profit after tax
1,167,800
24
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
258,365
119,482
-
-
Between two and five years
740,170
126,856
-
-
998,535
246,338
-
-
H&J Group Holdings Limited
Notes to the group financial statements (continued)
For the period ended 31 March 2024
35
25
Related party transactions

The company has taken advantage of the exemption available in FRS 102 section 33 from the requirement to disclose transactions with any wholly owned members of the group.

26
Controlling party

The ultimate controlling party is H&J Trustees Limited by virtue of its shareholding.

27
Cash generated from group operations
2024
2023
£
£
Profit for the Period after tax
4,671,517
7,005,417
Adjustments for:
Taxation charged
2,052,493
1,641,875
Finance costs
-
0
1,066
Investment income
(66,764)
(19,039)
Loss/(gain) on disposal of tangible fixed assets
9,818
(77)
Amortisation and impairment of intangible assets
924,886
10,607
Depreciation and impairment of tangible fixed assets
47,475
35,936
Movements in working capital:
Decrease in stocks
1,061,610
63,624
Increase in debtors
(732,441)
(2,777,106)
Decrease in creditors
(1,197,775)
(913,587)
Cash generated from operations
6,770,819
5,048,716
28
Analysis of changes in net funds - group
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
4,022,341
(294,679)
3,727,662
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