For the financial year ended 31 July 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

Hirex Limited is a private company limited by shares incorporated in England and Wales. The registered office is Riverside House, Kings Reach Business Park, Yew Street, Stockport, Cheshire, SK4 2HD.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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 using the historical cost convention except that as disclosed in the accounting policies, certain items are shown at fair value.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

The company recognises revenue when:

- the amount of revenue can be reliably measured

- it is probable that future economic benefits will flow to the entity

- specific criteria have been met for each of the company's activities

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

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

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.

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.

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 balance sheet 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.

Basic financial assets, which include debtors 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.

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

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

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

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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 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 profit and loss account, 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.

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 balance sheet 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.

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

Leased assets

Included within net book value of tangible fixed assets is £1,829 (2023: £2,438) in respect of assets held under finance leases and similar hire purchase contracts. Depreciation for the year on these assets is £610 (2023: £812).

Revaluation

The Plant and Machinery class of fixed assets was revalued on 31st July 2021 by Wignall Brownlow Chartered Surveyors who is external to the company. The basis of this valuation was on current market value using the adopted principles of the RICS valuation standards global and UK 7th edition. The class of assets has a current value of £93,515 (2023: £93,589) and a carrying amount at historical cost of £54,787 (2023: £40,741). The depreciation on this historical cost is £10,407 (2023: £7,334).

The Fixtures and Fittings class of fixed assets was revalued on 31st July 2021 by Wignall Brownlow Chartered Surveyors who is external to the company. The basis of this valuation was on current market value using the adopted principles of the RICS valuation standards global and UK 7th edition. The class of assets has a current value of £651,789 (2023: £676,607) and a carrying amount at historical cost of £283,630 (2023: £244,651). The depreciation on this historical cost is £97,194 (2023: £68,584).

The Office Equipment class of fixed assets was revalued on 31st July 2021 by Wignall Brownlow Chartered Surveyors who is external to the company. The basis of this valuation was on current market value using the adopted principles of the RICS valuation standards global and UK 7th edition. The class of assets has a current value of £35,916 (2023: £44,361) and a carrying amount at historical cost of £26,509 (2023: £31,549). The depreciation on this historical cost is £11,181 (2023: £9,227).

Overdrafts and finance lease liabilities are secured against the assets of the company of which they relate too.

Defined contribution pension scheme

The company operated a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to nil (2023: nil).

Contributions totaling £3,460 (2023: £2,977 were payable to the scheme at the end of the year and are included in creditors.

During the year the company made the following related party transactions:

Index Group Limited

Mr N G McWilliams and Mr J P McWilliams, both directors of Hirex Limited, are also directors or Index Group Limited, Index Shell Limited and Index Electrical Limited.

During the year to the 31st July 2024, the company has transacted with Index Group Limited, an associated undertaking and details of these transactions are as follows:

a. Sales to Index Group Limited £2,273,179 (2023: £2,006,147)

b. At 31st July 2024 the amount owed by Index Group Limited was £46,458 (2023: £50,568). No amounts were due to Index Group Limited as at 31st July 2024 (2023: nil).

No transactions have taken place with Index Shell Limited and Index Electrical Limited.

The company occupies premises at Lomax Street, Radcliffe, Manchester. This property is owned by Hirex Limited Retirement Benefit Scheme, a pension scheme in which three directors are members/trustees. Rents amounting to £136,000 have been charged during the year (2023: £50,000)