REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 |
FOR |
HARRIS & BAILEY LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 |
FOR |
HARRIS & BAILEY LIMITED |
HARRIS & BAILEY LIMITED (REGISTERED NUMBER: 00129871) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Income Statement | 10 |
Other Comprehensive Income | 11 |
Statement of Financial Position | 12 |
Statement of Changes in Equity | 14 |
Statement of Cash Flows | 15 |
Notes to the Statement of Cash Flows | 16 |
Notes to the Financial Statements | 17 |
HARRIS & BAILEY LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MARCH 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Certified Auditors |
163 Herne Hill |
London |
SE24 9LR |
HARRIS & BAILEY LIMITED (REGISTERED NUMBER: 00129871) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2024 |
KEY FINANCIAL HIGHLIGHTS |
The results for the year and financial position of the company are shown in the annexed financial statements. The company's key financial highlights are as follows: |
2023/24 | 2022/23 | 2021/22 | 2020/21 |
Turnover | £16,641,912 | £15,702,985 | £15,498,452 | £14,581,031 |
% Increase / (Decrease) | 6% | 1.3% | 6.3% | (0.2%) |
Profit Before Tax | £546,732 | £989,301 | £675,105 | £974,850 |
% Increase / (Decrease) | (45%) | 46.5% | (30.7%) | 263.3% |
KEY PERFORMANCE INDICATORS |
The key performance indicators that the board monitor with regards to the financial performance of the business, are primarily Turnover and Net Profit. Turnover was up 6.0% for the year although this was partly inflation driven. |
Net profit (before tax) decreased by 44.7% to £547k. Inflationary pressures created intense price competition, squeezing profit margins and reducing overall profitability. It must also be noted that £357k of the prior year profit was attributable to fair value gains on our Hastings Road property redevelopment. |
BUSINESS REVIEW |
2023 was another challenging year for business. Inflation remained high due to the rollover of 2022 increases which negatively impacted trading volumes at the start of the year. From May onwards there was a noticeable decline in commodity prices, particularly on timber which drove up sales through the summer and contributed to us delivering almost £1m increase year on year. |
Although there was a decline in Profit Before Tax, Trading Profit, when adjusted for the 'windfall' profits of 2022, also delivered a creditable increase. |
In the general economy, to combat high inflation, the Bank of England continued to increase interest rates which peaked at 5.25% in August 2023. This drove up the cost of borrowing which is a key source of finance for the construction sector, resulting in a fall in the demand for housing. In addition, the war in Ukraine continued to affect food and energy prices and the UK construction industry also faced a shortage of skilled workers. |
Our strong balance sheet allowed us to benefit from the interest rate increases, and the passive income from our mortgage-free investment properties provided an additional safety net. |
PRINCIPAL RISKS AND UNCERTAINTIES |
In common with most businesses, the Company is subject to general commercial risks, both political and economic. |
Our healthy cash position cushions us from any liquidity risk. Of greater concern is our exposure to credit risk, created by high interest rates and financial instability, and the impact of these financial pressures on our customers. Our credit insurance policy does give us the comfort of reducing our debtor exposure, and we carefully monitor our uninsured risks. |
We are mindful of reported increases in fraud, driven by the cost-of-living crisis, and have increased our due diligence checks when setting up new customers. We have also embraced new payment technologies and now use secure payment links requiring multi-factor authentication. These have eliminated our exposure to 'Customer Not Present' transactions. |
More troubling is the political risk we face as a consequence of the economic decisions of the new Labour Government. There was a marked downturn in trade with the announcement of elections in 2024 and the construction sector has continued to stagnate as the industry processes the economic implications of Labour's first budget. |
To mitigate the increases in employers' NI, we have reduced our headcount primarily through natural wastage. We are also conducting a review of all overheads for potential savings to offset the increases in business rates also announced it the budget. |
HARRIS & BAILEY LIMITED (REGISTERED NUMBER: 00129871) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2024 |
The economic outlook remains challenging. However, we are cautiously optimistic the industry will return to growth in 2025. It is hoped easing inflation and interest rate cuts will stimulate private investment. We are also encouraged by Government announcements regarding measures designed to encourage house building. This includes reinstating compulsory housebuilding targets for local authorities, simplifying planning regulations and cutting bureaucratic hurdles. |
The Company is subject to a broad range of existing and evolving governance, health & safety and other laws, regulations, standards and best practices, and this ever-increasing regulatory environment continues to place great pressure on our resources. However, we fully appreciate the importance of our duty of care to our stakeholders and continue to invest to ensure we remain fully compliant. |
FUTURE DEVELOPMENTS |
The new Labour Government has listed clean energy as one of its 5 key missions, promising to deliver energy security with zero-carbon electricity by 2030. Renewables are central to this mission and will play a major part in decarbonising the heating of our homes. We recognise the potential in helping achieve this ambition and our new partnership with Daikin is fundamental to accessing this exciting new market. In August, we opened our new 'Sustainable Home Centre', central to which is our new Daikin Product Showroom. We also opened a new Training Centre and have successfully run our first training courses. The training centre will allow us to develop and train new installers who want to enter the UK renewables market and will also be available for additional training courses for existing heating engineers. |
To underscore our commitment to this new venture, we have recently engaged an advertising agency to promote the company through targeted marketing, with particular focus on increasing awareness of the company name within the industry, both to our traditional customer base as well as new customers interested in cooling and renewables. Initial discussions have been positive, introducing lots of fresh new ideas to broaden our marketing strategy. |
Once again, the Directors wish to record their appreciation of the staff's achievements in delivering these results. |
ON BEHALF OF THE BOARD: |
HARRIS & BAILEY LIMITED (REGISTERED NUMBER: 00129871) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2024 |
The directors present their report with the financial statements of the company for the year ended 31 March 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of builders merchants. |
DIVIDENDS |
The total dividends for the year ended 31st March 2024 are £238,930. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
COMPANY'S POLICY ON PAYMENT OF CREDITORS |
It is the company's policy: |
(I) to settle the terms of payment with those suppliers when agreeing the terms of each transaction, |
(II) to ensure that those suppliers are made aware of the terms of payment and |
(III) to abide by the terms of payment |
ENVIRONMENTAL POLICY |
The Company acknowledges that it has a duty to implement an environmental policy which remains in place. |
BRIBERY ACT |
Anti corruption and bribery policies have been incorporated into the company's procedures. A notice has been sent to all staff setting out our commitment to the Bribery Act 2010. |
The company is committed to ethical business standards and transparency in all its commercial dealings. |
It has and will continue to maintain a zero tolerance policy to any form of improper behaviour connected to its business, whether internal or external. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
HARRIS & BAILEY LIMITED (REGISTERED NUMBER: 00129871) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2024 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued |
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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Innovi Advisors Ltd, will be proposed for re-appointment at the forthcoming General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HARRIS & BAILEY LIMITED |
Opinion |
We have audited the financial statements of Harris & Bailey Limited (the 'company') for the year ended 31 March 2024 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HARRIS & BAILEY LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on pages four and five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the 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 company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HARRIS & BAILEY LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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 key laws and regulations we have considered in this context included the Companies Act 2006, pension and tax legislation. In addition, we have considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- Using our general commercial and sector experience and through discussions with the directors and management, we identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements as well as those arising from management's own assessment of the risks that irregularities may occur either as a result of fraud or error. |
- We examined the company's regulatory and legal correspondence and discussed with the directors and management any known or suspected instances of fraud or non-compliance with laws and regulations. |
- We communicated identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
- In addressing the risk of management override of controls, we tested the appropriateness of journal entries. We also challenged assumptions and judgements made by management in their significant accounting estimates and judgements. |
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 from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HARRIS & BAILEY LIMITED |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Certified Auditors |
163 Herne Hill |
London |
SE24 9LR |
HARRIS & BAILEY LIMITED (REGISTERED NUMBER: 00129871) |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
4,060,324 | 3,820,785 |
286,087 | 472,103 |
Other operating income |
OPERATING PROFIT | 4 |
Income from fixed asset investments |
Interest receivable and similar income |
197,093 | 116,136 |
562,032 | 650,993 |
Gain on revaluation of |
investment property | - | 353,608 |
562,032 | 1,004,601 |
Interest payable and similar expenses | 5 |
PROFIT BEFORE TAXATION |
Tax on profit | 6 |
PROFIT FOR THE FINANCIAL YEAR |
HARRIS & BAILEY LIMITED (REGISTERED NUMBER: 00129871) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 MARCH 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
HARRIS & BAILEY LIMITED (REGISTERED NUMBER: 00129871) |
STATEMENT OF FINANCIAL POSITION |
31 MARCH 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 8 |
Investments | 9 |
Investment property | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 16 | ( |
) | ( |
) |
PENSION ASSET | 19 |
NET ASSETS |
HARRIS & BAILEY LIMITED (REGISTERED NUMBER: 00129871) |
STATEMENT OF FINANCIAL POSITION - continued |
31 MARCH 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Share premium | 18 |
Capital redemption reserve | 18 |
Undistributable reserve | 18 |
Retained earnings | 18 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
HARRIS & BAILEY LIMITED (REGISTERED NUMBER: 00129871) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2024 |
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
Balance at 1 April 2022 |
Changes in equity |
Dividends | - | ( |
) | - |
Total comprehensive income | - | - |
Balance at 31 March 2023 |
Changes in equity |
Dividends | - | ( |
) | - |
Total comprehensive income | - | - |
Balance at 31 March 2024 |
Capital |
redemption | Undistributable | Total |
reserve | reserve | equity |
£ | £ | £ |
Balance at 1 April 2022 |
Changes in equity |
Dividends | - | - | ( |
) |
Total comprehensive income |
Balance at 31 March 2023 |
Changes in equity |
Dividends | - | - | ( |
) |
Total comprehensive income |
Balance at 31 March 2024 |
HARRIS & BAILEY LIMITED (REGISTERED NUMBER: 00129871) |
STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 MARCH 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Finance costs paid | (15,300 | ) | (15,300 | ) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Purchase of investment property | ( |
) |
Sale of tangible fixed assets |
Interest received |
Dividends received |
Rents received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year |
2 |
4,204,769 |
Cash and cash equivalents at end of year | 2 | 4,930,773 | 4,236,804 |
HARRIS & BAILEY LIMITED (REGISTERED NUMBER: 00129871) |
NOTES TO THE STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 MARCH 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation |
Depreciation charges |
(Profit)/loss on disposal of fixed assets | ( |
) |
Gain on revaluation of fixed assets | - | (353,608 | ) |
Finance costs | 15,300 | 15,300 |
Finance income | (197,093 | ) | (116,136 | ) |
595,601 | 768,945 |
Decrease in stocks |
Decrease in trade and other debtors |
Decrease in trade and other creditors | ( |
) | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 March 2024 |
31.3.24 | 1.4.23 |
£ | £ |
Cash and cash equivalents | 4,930,773 | 4,236,804 |
Year ended 31 March 2023 |
31.3.23 | 1.4.22 |
£ | £ |
Cash and cash equivalents | 4,236,804 | 4,204,769 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.4.23 | Cash flow | At 31.3.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 4,236,804 | 693,969 | 4,930,773 |
4,236,804 | 4,930,773 |
Debt |
Debts falling due after 1 year | (75,000 | ) | - | (75,000 | ) |
(75,000 | ) | - | (75,000 | ) |
Total | 4,161,804 | 693,969 | 4,855,773 |
HARRIS & BAILEY LIMITED (REGISTERED NUMBER: 00129871) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
1. | STATUTORY INFORMATION |
Harris & Bailey Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page. |
The presentation currency of the financial statements is the Pound Sterling (£) rounded to the nearest Pound. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Preparation of consolidated financial statements |
The company has taken advantage of Section 405 of the Companies Act 2006 in that the subsidiary undertakings have not been consolidated as their inclusion are not material for the purpose of giving a true and fair view. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Going concern |
As part of the directors' assessment of going concern, they have prepared detailed cash flow and profit and loss forecasts for the next 12 months. The forecasts have been prepared on an appropriate basis, taking into account the current economic conditions that exist. |
After making appropriate enquires, the directors have a reasonable expectation that the company has adequate resources to enable it to continue in operational existence for the foreseeable future. They believe it is appropriate to prepare the accounts on a going concern basis. |
Revenue recognition |
Revenue is the amount derived from ordinary activities, and is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated customer returns, rebates and other similar allowances, and is stated net of VAT. |
Revenue from the sale of goods is recognised when all of the following conditions are satisfied. |
- the company has transferred to the buyer the significant risks and rewards of ownership of the goods; |
- the company 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 possible that the economic benefits associated with the transaction will flow to the company; and |
- the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Specifically, revenue is recognised when goods are delivered and legal title is passed. |
HARRIS & BAILEY LIMITED (REGISTERED NUMBER: 00129871) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets held for the company's own use are stated at cost less accumulated depreciation and accumulated impairment losses. |
Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives at the following rates: |
Freehold buildings | 1-10% | Straight line |
Plant and machinery | 25-40% | Reducing balance |
Motor vehicles | 25% | Reducing balance |
Office furniture and equipment | 40% | Reducing balance |
Computer equipment | 40% | Reducing balance |
Assets held under finance leases are depreciated in the same way as owned assets. |
At each statement of financial position date, the company reviews the carrying amount of its tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an 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 the asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost less any provision for impairment. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. A valuation is performed annually by the Directors. |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell (net realisable value). Costs, which comprise direct production costs, are based on the method most appropriate to the type of inventory class, but usually on a first-in-first-out basis. Overheads are charged to profit or loss as incurred. Net realisable value is based on the estimated selling price less any estimated completion or selling costs. |
When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in the amount of stocks recognised as an expense in the period in which the reversal occurs. |
Trade and Other Debtors |
Trade and other debtors that are receivable within one year and do not constitute a financing transaction are recorded at the undiscounted amount expected to be received, net of impairment. |
Cash and Cash Equivalents |
Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. |
Trade and Other Creditors |
Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost. |
HARRIS & BAILEY LIMITED (REGISTERED NUMBER: 00129871) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Pension costs and other post-retirement benefits |
The company operates a defined benefit pension scheme which is now closed to future accrual. The assets of the scheme are measured at fair value, and the liabilities are measured on an actuarial basis using the projected unit method and discounted at an appropriate rate of return. Any deficit of the scheme is recognised as a liability on the balance sheet, however as there are no ongoing contributions and there will be no refund made by the scheme, any surplus is not recognised. The current service cost, being the actuarially determined present value of the pension benefits earned by employees in the current period, and the past service cost are included within staff costs. Other finance costs includes the net of the expected return on assets, being the actuarial forecast of total return on the assets of the scheme, and the interest cost being the notional interest cost arising from unwinding the discount on the scheme liabilities. All changes in the pension surplus or deficit due to changes in actuarial assumptions or differences between actuarial forecasts and the actual return are reported in the statement of total recognised gains and losses. |
Contributions to defined contribution schemes are charged to the profit and loss account as incurred. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease. |
Liquid resources |
Liquid resources include sums on short-term deposits with recognised banks and building societies. |
Financial instruments |
18% and 21% Preference Shares are classified as other liabilities as the discounted cash flow is higher than the nominal value of the shares. The preference shares are held at £15,000 and £60,000 respectively. |
HARRIS & BAILEY LIMITED (REGISTERED NUMBER: 00129871) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
3. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 2,270,793 | 2,234,761 |
Social security costs | 215,476 | 214,808 |
Other pension costs | 150,570 | 148,011 |
2,636,839 | 2,597,580 |
The average monthly number of employees during the year was as follows: |
2024 | 2023 |
Hardware | 27 | 25 |
Building | 16 | 16 |
Accounts/Administration | 9 | 10 |
Cafe | 3 | 3 |
Directors | 5 | 6 |
60 | 60 |
2024 | 2023 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Depreciation - owned assets |
(Profit)/loss on disposal of fixed assets | ( |
) |
Auditors remuneration. |
HARRIS & BAILEY LIMITED (REGISTERED NUMBER: 00129871) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
18% Cumulative preference | 2,700 | 2,700 |
21% Cumulative preference | 12,600 | 12,600 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax: |
Origination and reversal of timing differences |
Deferred Tax | 2,461 | - |
Total deferred tax |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
Effects of: |
Expenses not deductible for tax purposes | ( |
) |
Deferred tax movements | 2,461 | 94,386 |
Total tax charge | 140,018 | 231,407 |
7. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary shares of £1 each |
Final |
Interim |
HARRIS & BAILEY LIMITED (REGISTERED NUMBER: 00129871) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
8. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1 April 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 April 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
Included in cost of land and buildings is freehold land of £ 303,500 (2023 - £ 303,500 ) which is not depreciated. |
HARRIS & BAILEY LIMITED (REGISTERED NUMBER: 00129871) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
9. | FIXED ASSET INVESTMENTS |
Shares in |
group | Unlisted |
undertakings | investments | Totals |
£ | £ | £ |
COST |
At 1 April 2023 |
and 31 March 2024 | 160,152 |
PROVISIONS |
At 1 April 2023 |
and 31 March 2024 | 158,050 | - | 158,050 |
NET BOOK VALUE |
At 31 March 2024 | 2,102 |
At 31 March 2023 | 2,102 |
The company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Registered office: See Company Information page for registered office. |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Registered office: See Company Information page for registered office. |
Nature of business: |
% |
Class of shares: | holding |
Registered office: See Company Information page for registered office. |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
HARRIS & BAILEY LIMITED (REGISTERED NUMBER: 00129871) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
10. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 April 2023 |
and 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
Fair value at 31 March 2024 is represented by: |
£ |
Valuation in 2005 | 1,128,959 |
Valuation in 2006 | 142,000 |
Valuation in 2007 | (1,182,372 | ) |
Valuation in 2008 | (67,500 | ) |
Valuation in 2009 | (7,500 | ) |
Valuation in 2011 | 30,000 |
Valuation in 2014 | 20,000 |
Valuation in 2017 | 161,982 |
Valuation in 2021 | (42,378 | ) |
Valuation in 2023 | 353,608 |
Cost | 1,638,201 |
2,175,000 |
If Investment properties had not been revalued they would have been included at the following historical cost: |
2024 | 2023 |
£ | £ |
Cost | 1,638,201 | 1,638,201 |
Aggregate depreciation | (169,301 | ) | (150,958 | ) |
Investment properties were valued on an open market basis on 30 November 2020 by Michael Rogers LLP, Chartered Surveyors. |
The Companies Act 2006 requires that Fixed Assets are depreciated over their useful economic lives, however FRS 102 Section 16, Investment Property states that this accounting treatment would not show a true and fair view and that Investment Properties should be shown at their market value. Accordingly, depreciation has not been charged. |
11. | STOCKS |
2024 | 2023 |
£ | £ |
Goods for resale |
HARRIS & BAILEY LIMITED (REGISTERED NUMBER: 00129871) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Other debtors |
Prepayments and accrued income |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Corporation tax |
Other taxation and social |
Other creditors |
Pension scheme contributions | 22,091 | 20,561 |
Accrued expenses |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Preference shares (see note 15) |
15. | LOANS |
An analysis of the maturity of loans is given below: |
2024 | 2023 |
£ | £ |
Amounts falling due in more than five years: |
Repayable otherwise than by instalments |
Preference shares | 75,000 | 75,000 |
HARRIS & BAILEY LIMITED (REGISTERED NUMBER: 00129871) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
15. | LOANS - continued |
Details of shares shown as liabilities as follows: |
Allotted and issued: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
15,000 | 18% Cumulative preference | £1 | 15,000 | 15,000 |
60,000 | 21% Cumulative preference | £1 | 60,000 | 60,000 |
75,000 | 75,000 |
18% Cumulative first preference shares of £1 each |
These 15,000 shares receive a dividend of 18% of their nominal value each year. Upon winding up of the Company, the shareholders will receive their capital before any other distributions are made by the Company. The preference shares do not confer the right to vote at meetings unless the business of the meeting concerns the rights of the preference shares or the winding up of the company. |
21% Cumulative second preference shares of £1 each |
These 60,000 shares receive a dividend of 21% of their nominal value each year. Upon winding up of the Company, the shareholders will receive their capital after the 18% cumulative first preference shares are paid but before any other distribution are made by the Company. The preference shares do not confer the right to vote at meetings unless the business of the meeting concerns the rights of the preference shares or the winding up of the company. |
16. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Other timing differences | (5,523 | ) | (5,140 | ) |
Investment properties | 37,425 | 37,425 |
163,297 | 160,836 |
Deferred |
tax |
£ |
Balance at 1 April 2023 |
Provided during year |
Balance at 31 March 2024 |
HARRIS & BAILEY LIMITED (REGISTERED NUMBER: 00129871) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 1,086,048 | 1,086,048 |
Deferred ordinary shares | £1 | 120,000 | 120,000 |
1,206,048 | 1,206,048 |
Deferred ordinary shares of £1 each |
Upon winding up of the Company, the capital paid up on the deferred ordinary shares shall be returned after any payment of any other shares in the capital of the Company. The deferred ordinary shares shall not confer any further right to participate in the profits or assets of the Company. |
18. | RESERVES |
Capital |
Retained | Share | redemption | Undistributable |
earnings | premium | reserve | reserve | Totals |
£ | £ | £ | £ | £ |
At 1 April 2023 | 10,793,679 |
Profit for the year | - | - | - |
Dividends | ( |
) | - | - | - | ( |
) |
At 31 March 2024 | 10,961,463 |
HARRIS & BAILEY LIMITED (REGISTERED NUMBER: 00129871) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
19. | EMPLOYEE BENEFIT OBLIGATIONS |
The group operated a defined benefit (final salary) pension scheme based in the UK. The assets of the scheme are held separate from the group in a trustee-administered fund. The valuation under FRS 102 Section 28, Employee Benefits was carried out using membership data at 1st January 2013, updated for materially significant changes that occurred up to 31st March 2024. |
A Legal & General insurance policy has been purchased for the buyout of the remaining members. The buyout process was completed in October 2017. |
Harris & Bailey Limited, as the current principal employer of the scheme, permanently ceased to contribute, |
under general rule 6(b) of the Rules, to the scheme with effect on and from 30th April 2015. |
Harris & Bailey Limited, under general rule 45(e) of the Rules, requested the Trustees to proceed to wind-up the scheme, in accordance with general rule 48 of the Rules, with effect on and from 1st May 2015. |
The amounts recognised in the statement of financial position are as follows: |
Defined benefit pension plans: | 2024 | 2023 |
£ | £ |
Present value of funded obligations | - | - |
Fair value of plan assets | 43,000 | 43,000 |
43,000 | 43,000 |
Estimated final expenses of closing scheme | (5,000 | ) | (5,000 | ) |
38,000 | 38,000 |
Estimated tax @ 35% | (13,300 | ) | (13,300 | ) |
Net Asset | 24,700 | 24,700 |
The trustees anticipate that the scheme will be terminated in the next financial year. |
Defined contribution scheme |
Contributions to defined contribution pension schemes were £NIL (2023: £NIL). |
HARRIS & BAILEY LIMITED (REGISTERED NUMBER: 00129871) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
20. | RELATED PARTY DISCLOSURES |
During the year, dividends of £22,516 (2023: £45,032) were paid to S Harris, Director. |
During the year, dividends of £10,780 (2023: £10,780) were paid to T Hayman, Director. |
During the year, dividends of £77,516 (2023: £55,000) were paid to J Southgate, wife of a Director. |
During the year, goods on credit of £756 (2023: £1,442) were paid to N Horsfield, Director. This amount remains outstanding at the year end. |
During the year, goods on credit of £7,221 (2023: £1,777) were paid to S Harris, Director. This amount remains outstanding at the year end. |
During the year, goods on credit of £Nil (2023: £Nil) were paid to C Cartwright, Director. |
During the year, payments of £1,324 (2023: £1,224) were paid to T Hayman, Director, for use of home telephone. |
During the year, payments of £1,282 (2023: £1,345) were paid to N Horsfield, Director, for use of home telephone. |
During the year, payments of £920 (2023: £1,072) were paid to J Southgate, Director, for use of home telephone. |
During the year, payments of £916 (2023: £709) were paid to C Cartwright, Director, for use of home telephone. |
During the year, payments of £475 (2023: £684) were paid to S Harris, Director, for use of home telephone. |