Hargreaves Group (GB) Limited
Registered number: 06508774
Annual report and consolidated financial statements
For the 18 months ended 31 March 2024
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HARGREAVES GROUP (GB) LIMITED
COMPANY INFORMATION
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Chartered Accountants & Statutory Auditor
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Santander Corporate & Commercial Banking
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ABN AMRO Commercial Finance PLC
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HARGREAVES GROUP (GB) LIMITED
CONTENTS
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Independent Auditor's Report
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Consolidated Statement of Comprehensive Income
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Consolidated Statement of Financial Position
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Company Statement of Financial Position
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Consolidated Statement of Changes in Equity
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Company Statement of Changes in Equity
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Consolidated Statement of Cash Flows
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Notes to the Financial Statements
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HARGREAVES GROUP (GB) LIMITED
GROUP STRATEGIC REPORT
FOR THE 18 MONTHS ENDED 31 MARCH 2024
The director presents their Strategic Report for the period ended 31 March 2024 for Hargreaves Group (GB) Limited.
The Group continued its principal activity throughout the current year. The principal activity continued to be the manufacture and sale of concrete blocks and other products and merchanting.
The Statement of Comprehensive income is set out on page 9 and shows that the Group has achieved a turnover for the 18 month period of £30,587,445 (12 months ended 30 September 2022: £20,640,968) and a pre tax profit of £803,109 (12 months ended 30 September 2022: £735,376).
The net assets of the Group increased from £4,472,749 to £4,617,965.
The directors are pleased to report these results for the financial period to 31 March 2024. The increased activity during the period is attributable to increased sales in industrial services.
The strategic investments that the Group has made will allow the business to improve margins and profitability in 2025 and beyond.
Principal risks and uncertainties
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The principal risks of the Group are set out below:
Market risk
A depressed housing market can suppress the financial returns of the Group because of a lack of demand for precast concrete products. The housing market is proving to be very resilient in the current climate and is widely expected to lead the economy out of recession.
Seasonality risk
The construction industry is historically slow in winter. The Group ensures it has adequate cash reserves and manages cashflow accordingly.
Financing risk
The business has sufficient working capital and financing to manage its demands and needs. Further funding is available, should this be necessary The business regularly updates its cash flow forecasting.
Obsolescence risk
There is a risk that the Group's manufacturing processes and/or its range of products do not keep pace with more modern efficient procedures/products. This would result in other suppliers being more favourable to customers due to their more extensive product range or their price.
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HARGREAVES GROUP (GB) LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE 18 MONTHS ENDED 31 MARCH 2024
Financial key performance indicators
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The strategic objective of the Group is to generate shareholder value through growth of the block manufacturing business. Over the past 5 years the Group’s revenue has achieved growth at a compound rate of 5.2%.
It should be noted that the financial period ended 31 March 2024 includes two winter periods. The Company performs weak in the winter periods and taking that into consideration the director is encouraged by the increase in operating profit for the period.
This report was approved by the board and signed on its behalf.
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HARGREAVES GROUP (GB) LIMITED
DIRECTOR'S REPORT
FOR THE 18 MONTHS ENDED 31 MARCH 2024
The director presents his report and the financial statements for the 18 months ended 31 March 2024.
Director's responsibilities statement
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The director is responsible for preparing the Group Strategic Report, the Director's Report and the consolidated financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.
In preparing these financial statements, the director is required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent; and
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the 18 months, after taxation, amounted to £466,557 (2022 - £758,339).
Dividends reflected in the financial statements for the period amounted to £321,341 (12 months ended 30 September 2022: £Nil).
The director who served during the 18 months was:
The Group continues to invest in new equipment and has placed an order for new HGV’s for delivery in 2023.
The Group remains fully committed to a new, modern and highly efficient block factory at our Dewsbury plant.
The directors would like to thank all staff, customers and suppliers for their commitment and support over the last 12 months.
Qualifying third party indemnity provisions
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The Company has made qualifying third party indemnity provisions for the benefit of its directors which were made during the year and remain in force at the reporting date.
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HARGREAVES GROUP (GB) LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE 18 MONTHS ENDED 31 MARCH 2024
Matters covered in the Group Strategic Report
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Certain information is not shown in the Director's Report because it is shown in the Strategic Report in pages 1 and 2 instead under S414(C)11. The Strategic Report includes a business review, principle risks and uncertainties and information on the Company's key performance.
Disclosure of information to auditor
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The director at the time when this Director's Report is approved has confirmed that:
∙so far as he is aware, there is no relevant audit information of which the Company and the Group's auditor is unaware, and
∙he has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditor is aware of that information.
The auditor, Forvis Mazars LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
The financial statements have been prepared on a going concern basis. The Director has prepared detailed budgets and cash flow projections which have been regularly updated in the light of the current economic climate and market conditions. On the basis of the updated budgets and projections, at the date of the signature of the balance sheet the Director believes that the Group can continue to operate within its existing financing facilities and in conjunction with additional long term financing for a period of at least 12 months. Therefore the Director deems it appropriate that the financial statements should be prepared on a going concern basis.
This report was approved by the board and signed on its behalf.
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HARGREAVES GROUP (GB) LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HARGREAVES GROUP (GB) LIMITED
Opinion
We have audited the financial statements of Hargreaves Group (GB) Limited (the ‘Parent Company’) and its subsidiaries (the 'Group') for the 18 months ended 31 March 2024 which comprise Consolidated Statement of Comprehensive Income, the Consolidated and Company Statement of Financial Position, the Consolidated and Company Statement of Changes in Equity, the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
∙give a true and fair view of the state of the Group and Parent Company’s affairs as at 31 March 2024 and of the Group's profit for the 18 months then ended;
∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
∙have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Group and the 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 director's 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 the Parent Company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
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HARGREAVES GROUP (GB) LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HARGREAVES GROUP (GB) LIMITED
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Director's Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In light of the knowledge and understanding of the Group and Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Director's Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
∙the financial statements are not in agreement with the accounting records and returns; or
∙certain disclosures of director's remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit.
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HARGREAVES GROUP (GB) LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HARGREAVES GROUP (GB) LIMITED
Responsibilities of Director
As explained more fully in the Director's Responsibilities Statement set out on page 3, the director is 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 director determines 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 director is responsible for assessing the Group's and 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 director intends either to liquidate the Group or the Parent Company or to cease operations, or has no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.
Based on our understanding of the Group and the Parent Company and their industry, we considered that noncompliance with the following laws and regulations might have a material effect on the financial statements: anti-money laundering regulation and the Bribery Act 2010.
To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
∙Inquiring of management and, where appropriate, those charged with governance, as to whether the company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
∙Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
∙Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
∙Considering the risk of acts by the Group or Parent Company which were contrary to applicable laws and regulations, including fraud.
We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation and the Companies Act 2006.
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HARGREAVES GROUP (GB) LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HARGREAVES GROUP (GB) LIMITED
In addition, we evaluated the directors’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to carrying value of stock, revenue recognition (which we pinpointed to the cut off assertion) and significant one-off or unusual transactions.
Our audit procedures in relation to fraud included but were not limited to:
∙Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
∙Gaining an understanding of the internal controls established to mitigate risks related to fraud;
∙Discussing amongst the engagement team the risks of fraud; and
∙Addressing the risks of fraud through management override of controls by performing journal entry testing.
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of the audit report
This report is made solely to the Company's members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body for our audit work, for this report, or for the opinions we have formed.
Ashley Barraclough (Senior statutory auditor)
for and on behalf of
Forvis Mazars LLP
Chartered Accountants and Statutory Auditor
5th Floor
3 Wellington Place
Leeds
LS1 4AP
2 April 2025
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HARGREAVES GROUP (GB) LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE 18 MONTHS ENDED 31 MARCH 2024
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12 months ended
30 September
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Exceptional administrative expenses
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Interest payable and similar expenses
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Profit for the financial 18 months
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There were no recognised gains and losses for the 18 month period ended 31 March 2024 or the 12 month period ended 30 September 2022 other than those included in the consolidated statement of comprehensive income.
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There was no other comprehensive income for 18 month period ended 31 March 2024 (12 month period
ended 30 September 2022: £NIL).
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The notes on pages 16 to 41 form part of these financial statements.
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HARGREAVES GROUP (GB) LIMITED
REGISTERED NUMBER: 06508774
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2024
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Debtors: amounts falling due after more than one year
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Net current (liabilities)/assets
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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The financial statements were approved and authorised for issue by the board and were signed on its behalf on 2 April 2025.
The notes on pages 16 to 41 form part of these financial statements.
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HARGREAVES GROUP (GB) LIMITED
REGISTERED NUMBER: 06508774
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2024
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Total assets less current liabilities
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The Company has taken advantage of the exemption allowed under Section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The profit after tax of the Parent Company for the period was £Nil (12 months ended 30 September 2022: £Nil).
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 2 April 2025.
The notes on pages 16 to 41 form part of these financial statements.
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HARGREAVES GROUP (GB) LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE 18 MONTHS ENDED 31 MARCH 2024
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Comprehensive income for the year
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Total comprehensive income for the year
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Comprehensive income for the 18 months
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Total comprehensive income for the 18 months
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Contributions by and distributions to owners
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Dividends: Equity capital
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Total transactions with owners
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The notes on pages 16 to 41 form part of these financial statements.
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HARGREAVES GROUP (GB) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE 18 MONTHS ENDED 31 MARCH 2024
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The notes on pages 16 to 41 form part of these financial statements.
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HARGREAVES GROUP (GB) LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
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12 months ended
30 September
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Cash flows from operating activities
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Profit for the financial 18 months
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Amortisation of intangible assets
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Depreciation of tangible assets
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Loss on disposal of tangible assets
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Net cash generated from operating activities
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HARGREAVES GROUP (GB) LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE 18 MONTHS ENDED 31 MARCH 2024
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12 months ended
30 September
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Cash flows from investing activities
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Purchase of intangible fixed assets
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Purchase of tangible fixed assets
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Sale of tangible fixed assets
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Net cash from investing activities
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Cash flows from financing activities
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Repayment of/new finance leases
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Movements on invoice discounting
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Net cash used in financing activities
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Net (decrease) in cash and cash equivalents
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Cash and cash equivalents at beginning of 18 months
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Cash and cash equivalents at the end of 18 months
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Cash and cash equivalents at the end of 18 months comprise:
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The notes on pages 16 to 41 form part of these financial statements.
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HARGREAVES GROUP (GB) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
Hargreaves Group (GB) Limited ('the Company') is limited by share capital and incorporated in the United Kingdom. The address and its registered office and principal base of business is Thornhill Works, Calder Road, Ravensthrorpe, Dewsbury, West Yorkshire, WF12 9HY.
The functioning currency of the company is Pounds Sterling as this is the currency of the primary economic environment in which the Company operates.
The current period has been prepared on an 18 month basis to the 31 March 2024, in comparison to the prior year reporting period which was prepared on a 12 month basis, therefore the results of the two periods are not directly comparable.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The following principal accounting policies have been applied:
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Financial reporting standard 102 - reduced disclosure exemptions
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The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
• the requirements of Section 7 Statement of Cash Flows;
• the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
• the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
• the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A
• the requirements of Section 33 Related Party Disclosures paragraph 33.7.
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HARGREAVES GROUP (GB) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
2.Accounting policies (continued)
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
The financial statements have been prepared on a going concern basis. The Director has prepared detailed budgets and cash flow projections which have been regularly updated in the light of the current economic climate and market conditions. On the basis of the updated budgets and projections, at the date of the signature of the balance sheet the Director believes that the Group can continue to operate within its existing financing facilities and in conjunction with additional long term financing for a period of at least 12 months. Therefore the Director deems it appropriate that the financial statements should be prepared on a going concern basis.
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HARGREAVES GROUP (GB) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
2.Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
∙the Group has transferred the significant risks and rewards of ownership to the buyer;
∙the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙the amount of revenue can be measured reliably;
∙it is probable that the Group will receive the consideration due under the transaction; and
∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Group will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
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Operating leases: the Group as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in profit or loss in the 18 months in which they are incurred.
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HARGREAVES GROUP (GB) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
2.Accounting policies (continued)
Defined contribution pension plan
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.
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Current and deferred taxation
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The tax expense for the 18 months comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Exceptional items are transactions that fall within the ordinary activities of the Group but are presented separately due to their size or incidence.
- 19 -
|
HARGREAVES GROUP (GB) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
2.Accounting policies (continued)
Intangible assets comprise acquired Tipping Rights and BSI accreditation.
Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life.
Other intangible assets
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Amortisation is provided on the following bases:
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
|
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|
|
To be depreciated once the asset is in use
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
- 20 -
|
HARGREAVES GROUP (GB) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
2.Accounting policies (continued)
Investments in subsidiaries are measured at cost less accumulated impairment.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on he cost of purchase.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
|
|
Cash and cash equivalents
|
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
|
|
Provisions for liabilities
|
Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Increases in provisions are generally charged as an expense to profit or loss.
- 21 -
|
HARGREAVES GROUP (GB) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
2.Accounting policies (continued)
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.
Financial instruments are recognised in the Group's Statement of Financial Position when the Group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
- 22 -
|
HARGREAVES GROUP (GB) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
2.Accounting policies (continued)
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Financial instruments (continued)
|
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Other financial instruments
Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties.
- 23 -
|
HARGREAVES GROUP (GB) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
2.Accounting policies (continued)
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|
Financial instruments (continued)
|
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
- 24 -
|
HARGREAVES GROUP (GB) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
|
Judgements in applying accounting policies and key sources of estimation uncertainty
|
In applying the Group’s accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors’ judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.
Critical judgements in applying the accounting policies
The critical judgements that the directors have made in the process of applying the Group’s accounting policies that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below.
(i) Assessing indicators of impairment
In assessing whether there have been any indicators of impairment assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability and where applicable, the ability of the asset to be operated as planned. There have been no indicators of impairments identified during the current financial year.
Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
(i) Determining residual values and useful economic lives of tangible and intangible assets
The Group depreciates tangible assets, and amortises intangible assets, over their estimated useful lives. The estimation of the useful lives of tangible assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied. The estimation of useful lives of intangible assets is based on any contractual or legal rights associated with the asset, or the period in which the Group expects to use the asset if shorter. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes.
Judgement is also applied, when determining the residual values for fixed assets. When determining the residual value, the directors have assessed the amount that the Group would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful life. Where possible this is done with reference to external market prices.
- 25 -
|
HARGREAVES GROUP (GB) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
|
|
|
An analysis of turnover by class of business is as follows:
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|
12 months ended
30 September
|
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Sales of concrete products and merchanting
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All turnover arose within the United Kingdom.
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The operating profit is stated after charging:
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|
|
12 months ended
30 September
|
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Other operating lease rentals
|
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|
Depreciation of tangible fixed assets
|
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|
|
Amortisation of intangible assets, including goodwill
|
|
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|
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|
Defined contribution pension cost
|
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|
- 26 -
|
HARGREAVES GROUP (GB) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
|
|
|
During the 18 months, the Group obtained the following services from the Company's auditor:
|
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|
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|
|
12 months ended
30 September
|
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|
|
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|
|
|
|
Fees payable to the Company's auditor for the audit of the consolidated and parent Company's financial statements
|
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|
|
|
|
Staff costs, including director's remuneration, were as follows:
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|
|
Cost of defined contribution scheme
|
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|
|
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|
|
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|
|
The average monthly number of employees, including the director, during the 18 months was as follows:
|
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|
|
12 months ended
30 September
|
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|
The Company has no employees other than the director, who did not receive any remuneration (12 months ended 30 September 2022: £NIL)
|
- 27 -
|
HARGREAVES GROUP (GB) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
|
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|
|
12 months ended
30 September
|
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|
|
Group contributions to defined contribution pension schemes
|
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|
During the 18 months retirement benefits were accruing to 1 director (12 months ended 30 September 2022 - 1) in respect of defined contribution pension schemes.
|
|
Interest payable and similar expenses
|
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|
|
12 months ended
30 September
|
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Other loan interest payable
|
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|
|
Finance leases and hire purchase contracts
|
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|
|
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- 28 -
|
HARGREAVES GROUP (GB) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
|
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|
12 months ended
30 September
|
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|
Adjustments in respect of previous periods
|
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Origination and reversal of timing differences
|
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|
|
Adjustments in respect of prior periods
|
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|
- 29 -
|
HARGREAVES GROUP (GB) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
10.Taxation (continued)
|
Factors affecting tax charge for the 18 months/year
|
|
The tax assessed for the 18 months/year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 23.01% (2022 - 19%). The differences are explained below:
|
|
|
|
|
|
|
12 months ended
30 September
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit on ordinary activities before tax
|
|
|
|
Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.01% (2022 - 19%)
|
|
|
|
|
|
|
|
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
|
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|
|
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|
|
Adjustments to tax charge in respect of prior periods
|
|
|
|
Remeasurement of deferred tax for changes in tax rates
|
|
|
|
Adjustments to tax charge in respect of prior periods - deferred tax
|
|
|
|
Additional deduction for R&D expenditure
|
|
|
|
Movement in deferred tax not recognised
|
|
|
|
Other timing differences leading to an increase (decrease) in taxation
|
|
|
|
|
|
|
|
Total tax charge for the 18 months/year
|
|
|
|
Factors that may affect future tax charges
|
There were no factors that may affect future tax charges.
- 30 -
|
HARGREAVES GROUP (GB) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
|
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|
12 months ended
30 September
|
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|
During the prior year, the deferred income relating to grant income received in 2015 has been released, since the requirements of the grant have been fulfilled.
|
- 31 -
|
HARGREAVES GROUP (GB) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
|
The individual intangible assets which are material to the financial statements are Tipping Rights. This intangible asset relates to the purchase of the rights to tip inert waste into the void space at a local quarry. As at 31 March 2024, Tipping Rights have a net book value of £127,667 (30 September 2022: £330,667) and the remaining useful economic life is 3 years.
|
- 32 -
|
HARGREAVES GROUP (GB) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
13.Intangible assets (continued)
- 33 -
|
HARGREAVES GROUP (GB) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
|
The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
|
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|
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|
|
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- 34 -
|
HARGREAVES GROUP (GB) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
|
|
Investments in subsidiary companies
|
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|
|
|
Direct subsidiary undertakings
|
|
The following were direct subsidiary undertakings of the Company:
|
|
|
|
|
|
|
|
|
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|
|
Hargreaves Ash Marketing Limited
|
|
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|
|
Hargreaves Roadstone Limited
|
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|
|
|
|
|
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|
|
Hargreaves Quarries (Derbyshire) Limited
|
|
|
|
- 35 -
|
HARGREAVES GROUP (GB) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
|
Indirect subsidiary undertaking
|
|
The following was an indirect subsidiary undertaking of the Company:
|
|
|
|
|
|
|
Newlay Cast Stone Limited
|
Manufacture of specialist artstone
|
|
|
|
All of the above subsidiaries, direct and indirect, have the same registered office: Thornhill Works, Calder Road, Ravensthorpe, Dewbury, West Yorkshire, WF12 9HY.
Newlay Cast Stone Limited is owned by Newlay Concrete Limited.
The following UK companies were exempt from the requirements relating to the audit of individual accounts by virtue of section 479A of the Companies Act 2006:
Hargreaves Ash Marketing Limited, Hargreaves Roadstone Limited, Hargreaves (GB) Limited and Newlay Cast Stone Limited.
|
|
Raw materials and consumables
|
|
|
|
Work in progress (goods to be sold)
|
|
|
|
Finished goods and goods for resale
|
|
|
|
Long-term contract balances
|
|
|
|
|
|
|
|
|
|
|
|
Long-term contract balances consist of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs to date less provision for losses
|
|
|
|
|
|
|
- 36 -
|
HARGREAVES GROUP (GB) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
|
Due after more than one year
|
|
|
|
|
|
Prepayments and accrued income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prepayments and accrued income
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
|
|
- 37 -
|
HARGREAVES GROUP (GB) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
|
Creditors: Amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other taxation and social security
|
|
|
|
Obligations under finance lease and hire purchase contracts
|
|
|
|
Proceeds of factored debts
|
|
|
|
|
|
|
|
Accruals and deferred income
|
|
|
|
|
|
|
|
|
|
|
|
Creditors: Amounts falling due after more than one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net obligations under finance leases and hire purchase contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
£1,600,000 (30 September 2022: £850,000) of the hire purchase liabilities are secured by way of personal gurantee by the Director. The reamining liability is secured on the assets to which the liability relates.
Other loans totalling £450,000 (30 September 2022: £412,000) are secured by way of personal guarantee by the Director.
All monies due or to become due from the group on any account to Santander UK Plc are secured by a mortgage and a fixed and floating charge over all assets of the company.
All monies due or to become due from the group on any account to ABM Amro Commercial Finance Plc are secured by a mortgage and a fixed and floating charge over all assets of the company.
|
- 38 -
|
HARGREAVES GROUP (GB) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
|
Hire purchase and finance leases
|
|
Minimum lease payments under hire purchase fall due as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
£2,050,000 (30 September 2022: £1,262,000) of the outstanding hire purchase liability is secured by way of personal guarantee by D M Beaumont, Director. The remaining balance is secured on the assets to which they relate.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charged to profit or loss
|
|
|
|
|
|
|
|
Accelerated capital allowances
|
|
|
|
Short term timing differences
|
|
|
|
Losses and other deductions
|
|
|
|
|
|
|
- 39 -
|
HARGREAVES GROUP (GB) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
|
|
Allotted, called up and fully paid
|
|
|
|
|
|
|
|
|
|
1,000 (2022 - 1,000) Ordinary shares of £1.00 each
|
|
|
Profit & loss account
The profit & loss account reserve represents cumulative profits and losses less dividends declared.
|
|
|
At 31 March 2024 the Group and Company had capital commitments as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contracted for but not provided in these financial statements
|
|
|
The group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge for the 18 month period to 31 March 2024 represents contributions payable by the group to the fund and amounted to £185,267 (12 months ended 30 September 2022: £121,205). Contributions totalling £5,387 (30 September 2022: £8,828) were payable to the fund at the balance sheet date and are included in creditors.
- 40 -
|
HARGREAVES GROUP (GB) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTHS ENDED 31 MARCH 2024
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Commitments under operating leases
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At 31 March 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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Related party transactions
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The company has taken advantage of the exemption conferred by FRS 102 Section 33 not to disclose transactions with wholly owned members of the group.
During the year the Group entered into transactions with entities under common control. The Group sold and purchased goods and services (including recharges and rent) to enities under common control with a value of £564,294 (12 months ended 30 September 2022: £1,699,208) and £417,975 (12 months ended 30 September 2022: £722,278) respectively.
The Group also entered into transactions with entities under the control of a director's relative. The Group sold and purchased goods and services (including rent and other recharges) to such entities totalling £279,314 (12 months ended 30 September 2022: £281,513) and £Nil (12 months ended 30 September 2022: £Nil) respectively.
Amounts due to the group from these enitities at year end were £2,037,576 (30 September 2022: £2,238,109) and amounts due to such companies were £2,528,015 (30 September 2022: £1,533,628).
Dividends totalling £321,341 (30 September 2022: £Nil) were paid to the shareholders in the year.
Mr D M Beaumont, a director, has entered into personal guarantees on behalf of the Group of £2,800,000 (30 September 2022: £1,262,000).
During the year rent totalling £87,000 (12 months ended 30 September 2022: £290,000) fell due in respect of a property which is owned by the director.
The ultimate controlling party is D M Beaumont, a director and majority shareholder of the Company.
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