Company registration number 00709812 (England and Wales)
F.P. HERTING & SON PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
F.P. HERTING & SON PLC
CONTENTS
Page
Strategic report
2 - 4
Directors' report
5 - 7
Directors' responsibilities statement
8
Independent auditor's report
9 - 11
Statement of comprehensive income
12
Statement of financial position
13
Statement of changes in equity
14
Statement of cash flows
15
Notes to the financial statements
16 - 28
F.P. HERTING & SON PLC
COMPANY INFORMATION
- 1 -
Directors
Mr J P Herting
Mr N Herting
Mr P Herting
Mrs J Herting
Secretary
Mr Arthur Fernandes
Company number
00709812
Registered office
5th Floor
Watson House
54-60 Baker Street
London
United Kingdom
W1U 7BU
Auditor
King & King
Chartered Accountants & Statutory Auditors
5th Floor
Watson House
54-60 Baker Street
London
W1U 7BU
F.P. HERTING & SON PLC
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
The directors present the strategic report for the year ended 31 December 2024.
Review of the business
The company continued to perform well in the current year. The strength and resilience of our balance sheet, combined with the commitment and dedication of our employees and suppliers, along with strong demand for our high quality products have all contributed to this.
Despite the challenges faced by the construction industry and the slow growth of the UK economy in general in 2024, the company has managed to increase its revenue by 1.3%. Gross profit margin has remained steady at 42.3% in both 2024 and 2023. Despite the industry pressures, the company was able to achieve similar sales volumes as the prior year. The directors also managed to maintain the distribution and administrative expenses by resorting to cost cutting measures as well as bringing efficiency in operations by making use of state of the art software capability to improve distribution. As a result, the net profit ratio of the company improved from 15.4% in 2023 to 16% in 2024.
The company expects its revenues to increase in 2025 as the future outlook of the construction industry is promising. The current government has set construction of new housing and infrastructure as a major economic focus and is keen to accelerate the building of both new homes and infrastructure projects. All these measures are expected to give the much needed boost to the construction industry which in turn will boost revenues of ancillary industries such as those in which the company operates.
The company's cashflow position continued to stay strong during the year. The company had not drawndown from its invoice discounting facility as at the year end. The cash generated from operations was strong at £8.02 million (2023: £8.41 million). This shows that the company continues to efficiently manage its cashflows. The net assets as at 31 December 2024 totalled £13.07 million (2023 - £13.12 million). The debtor days as at the year end were 46 (2023: 40 days) and the creditor days were 53 (2023: 46 days). Both are well within the credit period allowed and the company's liquidity position is strong as is evident from the current ratio of 2.59 times (2023: 2.78 times) and acid test ratio of 1.12 times (2023: 1.10 times).
The directors have identified the following Key Performance Indicators to monitor the performance of the company during the year under report.
2024 2023
Revenue (£000's) 40,370 39,875
Profit before tax (£000's) 6,463 6,139
Gross profit margin (%) 42.37 42.33
Net profit margin (%) 16.01 15.40
Trade debtor days 46 40
Trade creditor days 53 46
Inventory turnover (times) 2.89 2.59
The directors also use non-financial performance indicators. These include customer satisfaction reports and delivery time reports.
As part of its commitment to reduce its carbon footprint, the company has installed solar panels on the roof of its Southall premises in the current year. The total cost of the project was £1.25 million and a total of 608 panels have been installed. The solar panels became fully functional in autumn 2024 and the company expects to start seeing their full impact from summer 2025. The company expects that in the summer months, the energy produced will be sufficient to cater fully to the company's energy needs.
F.P. HERTING & SON PLC
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
Principal risks and uncertainties
The principal risks that the directors consider to have a potentially material impact on the company's operations and achievement of strategic objectives are set out below. The scope and potential impact of risks will change over time. As such the risks set out below should not be regarded as a comprehensive statement of all potential risks and uncertainties that may manifest in the future.
Liquidity risk
The company manages liquidity by maintaining access to a number of sources of short-term and long-term financing at a level which is considered sufficient to meet its anticipated funding requirements. Specifically, the company uses invoice discounting facility for trade receivables to manage its short-term liquidity needs. The directors continue to review the company’s liquidity risks regularly and plan the future financing requirements accordingly.
Market conditions
Market performance is affected by general economic conditions and a number of specific drivers such as construction activities, repairs, maintenance and improvements. This may cause adverse effect on financial results and loss of market share currently enjoyed by the company. We maintain a good relationship with majority of our customers to track the lead indicators that influence the market for the consumption of building material the company trades in.
Development and performance
The company's principal focus during the financial year was revenue maximisation whilst maintaining the gross profit margin on that revenue.
Position of the company's business at the year end
The company finished the year with a strong profitability and cashflow position despite the challenges faced by the industry in which it operates. The company is confident that the construction industry's situation will improve in 2025 and the revenues and profits will be higher than those in 2024. The company continues to expand its product base and actively monitors the market for newer products or upgraded versions of the existing products and proactively procures these according to their forecasted market demand. This in turn allows a greater foothold in the market, thus securing a bigger market share.
Going concern
The business is well placed with extensive stockholdings and infrastructure in place in order to cater well to the demands of the construction industry. Given the nature of the company's products, the stock holding has minimal risk of product obsolescence and is owned outright by the company.
The board is confident that the construction industry will grow in the future years and the company's profitability will improve with it. The board has also considered the financing facilities available to it and under the current circumstances, the board considers that the company is able to operate as a going concern for the foreseeable future.
Section 172 statement
Engaging with stakeholders
Building positive relationships through strong engagement, collaboration and dialogue with stakeholders that share our values is important to us, and working together towards shared goals assists us in delivering long-term sustainable success.
Details of the company's key stakeholders and how we engage with them are set out below:
F.P. HERTING & SON PLC
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
Customers
We build strong lasting relationships with our trade customers and spend considerable time with them to understand their needs and views and listen to how we can improve our offer and service for them. During our regular meetings with them, the customers give us indications of their planned purchases in the coming months. We make our buying decisions accordingly and ensure that the products that our customers require are readily available and can be delivered to them on a timely basis. We also use the customer insight gained during interactions with them to better suit their demands, with more flexible access to a product range and volume-based discounting. Our most significant customers are observed by us closely as they are imperative to our continued success.
Suppliers
Our suppliers are experts in the range of products we source from them. We aim to build strong relationship with our suppliers to develop mutually beneficial and lasting partnerships. Wherever possible, we aim to convey our product needs to our suppliers in advance to ensure that they are able to deliver us the required products when needed without any delay.
Engagement with suppliers is primarily through a series of interactions and formal reviews. The directors recognise that relationships with suppliers are important to the company's long-term success and therefore, review the feedback and issues on regular basis,
Employees
Our people are key to our success and we want them to be successful individually and as a team. We aim to build trusting, respectful and inclusive environment where everyone feels safe, welcome, valued for their contribution and able to perform at their best. We work hard to engage with and listen to our colleagues through briefings and meetings. Key areas of focus include safety, health and well-being, diversity and inclusion, development opportunities and pay and benefits.
Environmental impact
We are committed to building on the work already undertaken by us, such as installation of solar panels, electric cars for employees and using energy efficient lighting, to reduce our carbon footprint and we are continuously adapting our day to day activities to environmentally friendly alternatives.
Mr J P Herting
Director
25 March 2025
F.P. HERTING & SON PLC
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
The directors present their annual report and audited financial statements for the year ended 31 December 2024.
Principal activities
The principal activity of the company continued to be that of the supply of fixings and ironmongery to the construction industry.
Results and dividends
The results for the year are set out on page 12.
Ordinary dividends were paid amounting to £4,780,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr J P Herting
Mr N Herting
Mr P Herting
Mrs J Herting
Qualifying third party indemnity provisions
The company's articles of association stipulate qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.
Political donations
The company did not make any political donations during the year.
Post reporting date events
There are no events or transactions since the balance sheet date which could have a material effect upon the company.
Future developments
The board of directors forecast turnover to increase in 2025. The company also maintains extensive stockholdings and has infrastructure in place to continue to grow well into the future.
The outlook of the construction industry for the year 2025 is promising as the economy continues to stabilise. The government is committed to support the housing market with various incentives for buyers. Such measures are expected to give the needed boost to the construction industry and the company's revenue and profitability is expected to improve with it.
Auditor
The auditor, King & King, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Energy and carbon report
Statement of carbon emissions in compliance with Streamlined Energy and Carbon (SECR) covering energy consumption and associated greenhouse gas emissions relating to gas and electricity, energy intensity and information relating to energy efficiency actions is outlined below:
F.P. HERTING & SON PLC
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 6 -
2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
5,150,198
5,505,868
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
4.40
4.90
- Fuel consumed for owned transport
1,297.00
1,396.00
1,301.40
1,400.90
Scope 2 - indirect emissions
- Electricity purchased
56.50
50.70
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the company
-
-
Total gross emissions
1,357.90
1,451.60
Intensity ratio
Total emissions/floor area (tCO2e/m2)
0.034
0.031
Quantification and reporting methodology
The Greenhouse Gas (GHG) Protocol Corporate Standard categorises an organisation’s GHG emissions into the following three ‘scopes’:
Scope 1 emissions = direct emissions from owned or controlled sources (i.e. gas burnt on-site).
Scope 2 emissions = indirect emissions from the generation of purchased energy (i.e. electricity purchased from the grid).
Scope 3 emissions = all indirect emissions (not included in Scope 2) that occur in the value chain of the reporting company, including both upstream and downstream emissions.
Energy consumption and carbon emissions have been reported based on the requirements outlined in 'Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance’.
For the calculation of CO2 emissions from energy data, the latest carbon factors from ‘UK Government GHG Conversion Factors for Company Reporting’ were used.
A carbon factor of 0.1829 kg CO2e/kWh (gross calorific value) is used for gas, assuming condensing gas boilers are efficiently operated. Purchased electricity uses a carbon conversion factor of 0.20705 kg CO2e/kWh.
Intensity measurement
The chosen intensity measurement ratio is total gross emissions from buildings (gas combustion and electricity) divided over floor area.
F.P. HERTING & SON PLC
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 7 -
Measures taken to improve energy efficiency
In year 2024, the company has invested and installed 608 solar panels on the roof of its main premises in Southall aimed at reducing its carbon footprint. The solar panels became fully functional in the later part of 2024 and the company expects to see their full impact during 2025.
Other measures taken by the company to improve energy efficiency include replacing inefficient lighting with LED as and when life cycle replacement is required. Staff awareness training is ongoing, with a view to reducing operational energy consumption. The company only operates electric cars for its employees.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of principal risks and uncertainties, financial reviews and key performance indicators.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
On behalf of the board
Mr J P Herting
Director
25 March 2025
F.P. HERTING & SON PLC
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and 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.
F.P. HERTING & SON PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF F.P. HERTING & SON PLC
- 9 -
Opinion
We have audited the financial statements of F.P. Herting & Son Plc (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 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.
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 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
F.P. HERTING & SON PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF F.P. HERTING & SON PLC (CONTINUED)
- 10 -
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 directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, 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 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 directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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.
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.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
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. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by making enquires of management and those charged with governance. We utilised internal and external information to corroborate these enquiries and to perform a fraud risk assessment for the company. We considered the risk of fraud to be significant within the areas of the recognition of revenue. Audit procedures performed by the engagement team included:
testing the occurrence, completeness and cut-off of revenues to supporting documentation including proof of delivery and receipt of payments;
identifying and testing journal entries considered by the engagement team to carry a significant risk of fraud.
F.P. HERTING & SON PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF F.P. HERTING & SON PLC (CONTINUED)
- 11 -
In assessing the potential risks of material misstatement, we obtained an understanding of:
The company’s operations, including the nature of its revenue sources and revenue recognition policy, the assessment of material judgements made by management and the design of the control environment for the overall financial reporting process for the company;
the company’s control environment, including the policies and procedures implemented to comply with the requirements of Financial Reporting Standard 102 and the Companies Act 2006, the adequacy of procedures for authorisation of transactions within the business and the regularity of management’s review of management accounts for indicators of material misstatement.
We enquired of management and those charged with governance whether they were aware of any instances of non-compliance with laws and regulations or whether they had any knowledge of actual, suspected or alleged fraud;
If any instances of non compliance with laws and regulations and / or fraud were identified, we assessed their potential impact and followed up where appropriate;
These audit procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error and detecting irregularities that result from fraud is inherently more difficult than detecting those that result from error, as fraud may involve collusion, deliberate concealment, forgery or intentional misrepresentations. Also, the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it;
The assessment of the appropriateness of the collective competence and capabilities of the engagement team included consideration of the engagement team’s:
understanding of, and practical experience with audit engagements of a similar nature and complexity through appropriate training and participation;
knowledge of the industry in which the client operates;
understanding of the requirements of Financial Reporting Standard 102 and the Companies Act 2006 and the application of the legal and regulatory requirements of these to the company.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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.
Shakeel Parkar (Senior Statutory Auditor)
For and on behalf of King & King, Statutory Auditor
Chartered Accountants
5th Floor
Watson House
54-60 Baker Street
London
W1U 7BU
25 March 2025
F.P. HERTING & SON PLC
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
2024
2023
Notes
£
£
Revenue
3
40,369,537
39,875,066
Cost of sales
(23,263,714)
(22,997,502)
Gross profit
17,105,823
16,877,564
Distribution costs
(4,951,052)
(5,169,184)
Administrative expenses
(5,667,868)
(5,530,904)
Operating profit
4
6,486,903
6,177,476
Finance costs
8
(23,907)
(38,562)
Profit before taxation
6,462,996
6,138,914
Tax on profit
9
(1,737,018)
(1,519,174)
Profit for the financial year
4,725,978
4,619,740
The income statement has been prepared on the basis that all operations are continuing operations.
F.P. HERTING & SON PLC
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2024
31 December 2024
- 13 -
2024
2023
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
11
5,119,150
4,443,540
Current assets
Inventories
12
8,038,857
8,891,649
Trade and other receivables
13
5,812,119
4,954,539
Cash and cash equivalents
321,322
862,012
14,172,298
14,708,200
Current liabilities
14
(5,481,171)
(5,293,780)
Net current assets
8,691,127
9,414,420
Total assets less current liabilities
13,810,277
13,857,960
Non-current liabilities
15
(187,524)
Provisions for liabilities
Deferred tax liability
18
740,738
546,875
(740,738)
(546,875)
Net assets
13,069,539
13,123,561
Equity
Called up share capital
20
50,000
50,000
Retained earnings
13,019,539
13,073,561
Total equity
13,069,539
13,123,561
The financial statements were approved by the board of directors and authorised for issue on 25 March 2025 and are signed on its behalf by:
Mr J P Herting
Mr N Herting
Director
Director
Company registration number 00709812 (England and Wales)
F.P. HERTING & SON PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 January 2023
50,000
12,553,821
12,603,821
Year ended 31 December 2023:
Profit and total comprehensive income
-
4,619,740
4,619,740
Dividends
10
-
(4,100,000)
(4,100,000)
Balance at 31 December 2023
50,000
13,073,561
13,123,561
Year ended 31 December 2024:
Profit and total comprehensive income
-
4,725,978
4,725,978
Dividends
10
-
(4,780,000)
(4,780,000)
Balance at 31 December 2024
50,000
13,019,539
13,069,539
F.P. HERTING & SON PLC
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
8,018,437
8,407,057
Interest paid
(23,907)
(38,562)
Income taxes paid
(1,402,596)
(1,470,900)
Net cash inflow from operating activities
6,591,934
6,897,595
Investing activities
Purchase of property, plant and equipment
(1,916,681)
(1,079,920)
Proceeds from disposal of property, plant and equipment
224,858
445,841
Net cash used in investing activities
(1,691,823)
(634,079)
Financing activities
Repayment of bank loans
(130,000)
(862,557)
Payment of finance leases obligations
(530,801)
(574,483)
Dividends paid
(4,780,000)
(4,100,000)
Net cash used in financing activities
(5,440,801)
(5,537,040)
Net (decrease)/increase in cash and cash equivalents
(540,690)
726,476
Cash and cash equivalents at beginning of year
862,012
135,536
Cash and cash equivalents at end of year
321,322
862,012
F.P. HERTING & SON PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
1
Accounting policies
Company information
F.P. Herting & Son Plc is a public company limited by shares incorporated in England and Wales. The registered office is 5th Floor, Watson House, 54-60 Baker Street, London, United Kingdom, W1U 7BU.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The directors have reviewed company's forecasts, carried out risk assessments and made other enquiries. After reviewing the company's position, the directors have formed a judgement at the time of approving the financial statements, that there is a reasonable expectation that the company has adequate resources to continue in operational existence for the 12 months from the date of signing this annual report and accounts. trueThus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Revenue
Revenue is recognised when the company has satisfied its performance obligations to the customer and the customer has obtained control of the goods being transferred. Performance obligations to the customer in respect of sale of goods are satisfied on delivery or collection by customer.
Revenue is measured at the transaction price received or receivable and represents amounts receivable for goods provided in the normal course of business, net of discounts and value added tax.
1.4
Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use and dismantling and restoration costs.
Land is not depreciated. Depreciation is recognised on all the other assets so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold buildings
2% straight line
Plant and equipment
10% reducing balance
Fixtures and fittings
15% reducing balance
Computers
30% reducing balance
Motor vehicles
33% reducing balance
Tangible assets are derecognised on disposal or when no future economic benefits are expected. The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively.
F.P. HERTING & SON PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
1.5
Impairment of non-current assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Inventories
Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Inventories are recognised as an expense in the period in which the related revenue is recognised. Cost is determined on weighted average method. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.
Inventories held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, inventories are assessed for impairment. If an item of inventory is impaired, the identified inventory is reduced to its selling price less cost to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is recognised the impairment charge is reversed up to the original impairment loss, and is recognised as a credit in profit and loss account.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company 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.
F.P. HERTING & SON PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -
Basic financial assets
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
F.P. HERTING & SON PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 19 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
F.P. HERTING & SON PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 20 -
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
F.P. HERTING & SON PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 21 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:
Useful lives of assets
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
Allowance for inventory obsolescence
Factors taken into consideration include the nature and condition of inventory, current economic environment and historic trade patterns in ensuring that stock recoverability is appropriately estimated.
3
Revenue
All revenue is attributable to supply of fixings and ironmongery to the construction industry and arises solely within the United Kingdom.
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
1,974
(347)
Depreciation of owned property, plant and equipment
522,191
473,642
Depreciation of property, plant and equipment held under finance leases
442,952
472,187
Loss/(profit) on disposal of property, plant and equipment
51,070
(72,457)
Operating lease charges
157,645
135,010
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
27,500
27,500
For other services
Other taxation services
6,000
6,000
All other non-audit services
10,000
10,000
16,000
16,000
F.P. HERTING & SON PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Distribution staff
94
93
Administration staff
52
52
Total
146
145
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
5,372,241
5,692,657
Social security costs
583,467
619,778
Pension costs
200,684
133,331
6,156,392
6,445,766
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
249,716
230,949
Company pension contributions to defined contribution schemes
2,400
31,200
252,116
262,149
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
107,727
97,447
F.P. HERTING & SON PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
8
Finance costs
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
2,030
11,799
Other finance costs:
Interest on finance leases and hire purchase contracts
26,062
26,763
Other interest
(4,185)
23,907
38,562
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,543,155
1,331,249
Deferred tax
Origination and reversal of timing differences
193,863
187,925
Total tax charge
1,737,018
1,519,174
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
6,462,996
6,138,914
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
1,615,749
1,534,729
Tax effect of expenses that are not deductible in determining taxable profit
85,152
50,803
Tax effect of income not taxable in determining taxable profit
(18,114)
Effect of change in corporation tax rate
(83,736)
Permanent capital allowances in excess of depreciation
(157,746)
(152,433)
Deferred tax adjustments
193,863
187,925
Taxation charge for the year
1,737,018
1,519,174
In the Spring 2023 budget, the Chancellor announced that the rate of corporation tax applicable on companies with profits over £250,000 will be 25% from April 2023 onwards. Due to this amendment, the corporation tax in the prior year has been computed at 19% for the first three months and at 25% for the remaining nine months of the financial year. In the current year, the applicable rate of tax has been 25% for the full financial year.
F.P. HERTING & SON PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
10
Dividends
2024
2023
£
£
Final paid
4,780,000
4,100,000
11
Property, plant and equipment
Freehold buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2024
3,521,066
1,794,984
199,036
3,726,496
9,241,582
Additions
1,250,237
666,444
1,916,681
Disposals
(582,102)
(582,102)
At 31 December 2024
3,521,066
1,250,237
1,794,984
199,036
3,810,838
10,576,161
Depreciation and impairment
At 1 January 2024
1,714,989
1,486,840
188,005
1,408,208
4,798,042
Depreciation charged in the year
70,421
20,837
46,222
3,309
824,354
965,143
Eliminated in respect of disposals
(306,174)
(306,174)
At 31 December 2024
1,785,410
20,837
1,533,062
191,314
1,926,388
5,457,011
Carrying amount
At 31 December 2024
1,735,656
1,229,400
261,922
7,722
1,884,450
5,119,150
At 31 December 2023
1,806,077
308,144
11,031
2,318,288
4,443,540
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts:
2024
2023
£
£
Motor vehicles
886,037
1,328,989
12
Inventories
2024
2023
£
£
Finished goods
8,038,857
8,891,649
Inventories are stated after provision for slow moving and obsolete inventories amounting to £581,729 (2023: £1,009,297).
F.P. HERTING & SON PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
13
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Trade receivables
5,128,271
4,369,745
Other receivables
192,901
97,888
Prepayments and accrued income
490,947
486,906
5,812,119
4,954,539
14
Current liabilities
2024
2023
Notes
£
£
Bank loans
16
130,000
Obligations under finance leases
17
181,101
524,378
Trade payables
3,356,510
2,903,801
Corporation tax
725,367
584,808
Other taxation and social security
857,959
772,582
Other payables
307,484
290,223
Accruals and deferred income
52,750
87,988
5,481,171
5,293,780
15
Non-current liabilities
2024
2023
Notes
£
£
Obligations under finance leases
17
187,524
16
Borrowings
2024
2023
£
£
Bank loans
130,000
Payable within one year
130,000
Bank loan has been fully paid off in the current year. The loan was secured by means of a fixed and floating charge over the freehold property owned by the company, being Frederick House, 25 Armstrong Way, Great Western Industrial Park, Southall, Middlesex UB2 4SD.
Also included in bank loans is an invoice discounting facility balance of nil (2023: £nil) secured by means of a fixed and floating charge over all assets of the company.
F.P. HERTING & SON PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 26 -
17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
181,101
524,378
In two to five years
187,524
181,101
711,902
Finance lease payments represent amounts payable by the company for financing certain items of motor vehicles. No restrictions are placed on the use of the assets. The average financing term is 2 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent payments
18
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
740,738
546,875
2024
Movements in the year:
£
Liability at 1 January 2024
546,875
Charge to profit or loss
193,863
Liability at 31 December 2024
740,738
The deferred tax liability set out above relates to accelerated capital allowances that are expected to mature in line with the useful lives of the assets.
The net deferred tax liability expected to reverse in 2025 is £397,082. This primarily relates to the reversal of timing differences on capital allowances.
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
200,684
133,331
The company operates a defined contribution pension scheme for all of its qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
F.P. HERTING & SON PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 27 -
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
50,000
50,000
50,000
50,000
There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.
21
Contingencies
The company has a bond with H M Revenue and Customs in respect of Value Added Tax totalling £80,000. This is a deferment notice in respect of input VAT on imported products.
22
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
158,095
155,919
Between two and five years
136,339
196,934
294,434
352,853
23
Directors' transactions
Included in other creditors are amounts owed due to the directors totalling £51,292 (2023 - £47,935). Amounts owed to the directors are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
24
Ultimate controlling party
The company is under the control of Mr N Herting and other directors of the company.
F.P. HERTING & SON PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 28 -
25
Cash generated from operations
2024
2023
£
£
Profit after taxation
4,725,978
4,619,740
Adjustments for:
Taxation charged
1,737,018
1,519,174
Finance costs
23,907
38,562
Loss/(gain) on disposal of property, plant and equipment
51,070
(72,457)
Depreciation and impairment of property, plant and equipment
965,143
945,829
Movements in working capital:
Decrease in inventories
852,792
1,457,702
(Increase)/decrease in trade and other receivables
(857,580)
440,512
Increase/(decrease) in trade and other payables
520,109
(542,005)
Cash generated from operations
8,018,437
8,407,057
26
Analysis of changes in net funds
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
862,012
(540,690)
321,322
Borrowings excluding overdrafts
(130,000)
130,000
-
Obligations under finance leases
(711,902)
530,801
(181,101)
20,110
120,111
140,221
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