REGISTERED NUMBER: |
Hiatt Hardware (UK) Limited |
Strategic Report, Report of the Directors and |
Financial Statements For The Year Ended 31 December 2024 |
REGISTERED NUMBER: |
Hiatt Hardware (UK) Limited |
Strategic Report, Report of the Directors and |
Financial Statements For The Year Ended 31 December 2024 |
Hiatt Hardware (UK) Limited (Registered number: 06804515) |
Contents of the Financial Statements |
For The Year Ended 31 December 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 6 |
Income Statement | 8 |
Other Comprehensive Income | 9 |
Balance Sheet | 10 |
Statement of Changes in Equity | 11 |
Notes to the Financial Statements | 12 |
Hiatt Hardware (UK) Limited |
Company Information |
For The Year Ended 31 December 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Sidings Court |
Lakeside |
Doncaster |
South Yorkshire |
DN4 5NU |
Hiatt Hardware (UK) Limited (Registered number: 06804515) |
Strategic Report |
For The Year Ended 31 December 2024 |
The directors present their strategic report for the year ended 31 December 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company during the financial year was that of the design, development, manufacturing, marketing, and distribution of Hardware/ Ironmongery products to commercial retail and merchant trade including home improvement retailers. |
REVIEW OF BUSINESS |
The results for the year ended 31st December 2024 amounted to a profit before taxation of £2,884,430 compared to a profit before taxation of £3,607,965 in 2023, a decrease of 20.05%. Revenue for the year was £20,206,282 compared to £18,982,174 for 2023, an increase of 6.45%. |
During the year 2024 and in comparison, to year 2023, the company has invested heavily into new marketing initiatives to promote its various banners/ brands and increase brand presence overall in UK's Trade & DIY sector for an increased market share. The company has further successfully deployed a layer of fully hands on Management team under the Senior Leadership Board allowing the group to gain traction with various long term strategic growth initiatives. Overall, the business has performed reasonably well by increasing its revenue and achieving a strong level of underlying profitability in the current global crises-based market sector outlook. |
UK businesses in general currently face inflationary issues squeezing profit margins, labour shortages and supply chain disruptions continuing to test the businesses' adaptability. The company has delivered a solid and stable bottom line in such challenging market circumstances. |
Early 2024 saw the red sea crisis which followed through the year and delayed shipments on an average by 10-15 days and drove shipping costs higher. Ukraine and geopolitical tensions have led to rising fuel and energy costs, placing further strain on costs and supply chains. These factors, combined with heightened consumer expectations for prompt and free delivery, present serious challenges when maintaining efficiency and enhancing customer satisfaction. |
Looking ahead, despite a challenging retail forecast for Year 2025, the company remains committed to staying ahead of the curve. By leveraging our ongoing investment in digital tools, we aim to not only navigate the evolving landscape of trade policies but also seize new opportunities in the international market. While the additional tax burdens and rising costs may pose obstacles, our strategic focus on adaptability and innovation will continue to be our guiding force. As we gear up for the challenges ahead, we are confident that our proactive approach shall enable us to weather the storm and emerge stronger in the face of adversity. |
The British Pound and US Dollar exchange rate showcased a significant variation throughout the year and underscored an ongoing challenge of managing currency exposure and the importance of continuously fine-tuning financial strategies to maintain stability amidst such forex market volatility. The company is well positioned and decisively undertaking products like forward call options & derivatives to de-risk where possible and hedge the currency exposures to attain best value for company's loyal customer base. |
The Company is committed to maintaining the highest quality and service standards within the Hardware sector. As a crucial strategic ally for many prominent retail and merchant brands in fulfilling their hardware needs, the company is motivated by its fundamental goal of exceeding customer expectations in service, availability, and product quality. Leveraging its vast sector and core people experience, the company continually seeks to improve its offer and uphold a distinguished reputation linked to an outstanding service and unwavering quality. |
The direct-to-consumer E-Commerce channel is integral to our strategic vision, emphasising industry-leading after-sales customer service while enhancing brand awareness across our diverse portfolio of company's trademarked brands. This direction not only aligns with our future goals but also underscores our steadfast commitment in providing exceptional service and maintaining an extensive product range. The E-commerce strategy not only creates new demand for company's vast product range but also caters for strong after sales support for its retail B2B customers. |
In 2024, our E-Commerce sales demonstrated impressive growth, with turnover rising by 23.60%. The company is optimistic about continued product expansion and investment into Year 2025 and beyond. However, this growth trajectory presents challenges; the emergence of e-commerce platforms has enabled cross-border selling, leading to intensified market competition. To maintain our competitive edge, we recognise the increasing need to effectively utilise AI and automation technologies. |
As we move forward, we are dedicated to navigating these challenges while enhancing our customer experience and driving brand recognition. |
The board continue to seek out suitable opportunities to build on the current strategy and create a strong diverse customer focused brand. |
Key Performance Indicators (KPIs) |
Key performance indicators include ratios and metrics that monitor the financial health and performance of the business: |
2024 | 2023 |
Average stock days (Stock value/Cost of goods sold) x 365 - monthly average | 140 | 157 |
Current ratio (Current assets/Current liabilities) | 3.81 | 3.31 |
Hiatt Hardware (UK) Limited (Registered number: 06804515) |
Strategic Report |
For The Year Ended 31 December 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The company monitors movements and the potential impact of the Sterling exchange rate with the US Dollar and hedges against them, where appropriate. |
Inflation Risk and Interest Risk |
The evolving economic landscape poses challenges for businesses navigating the dual risks of inflation and interest rates. With inflation expected to spike to 3.7% in 2025 due to energy costs and global instability, businesses may face pressure to pass on added costs to customers amid a cost-of-living crisis. |
The Bank of England's series of interest rate cuts, responding to inflation trends, signal potential further cuts in 2025. These adjustments, likely to be spaced out and possibly starting in June, will influence the broader economy and customer behaviour, impacting businesses indirectly even if they do not bear significant interest costs themselves. Balancing these risks will be crucial for sustaining stability and growth in a shifting economic environment. |
Commodity Price Risk |
Navigating the intricate web of variables impacting the metal market in Year 2025 requires a keen eye for detail and a firm grasp on the shifting economic, political, and sector-specific landscapes. With reshoring trends, evolving economic factors, and emerging demands shaping the industry, businesses must remain vigilant to steer through this complex terrain. Strategic decisions beckon in a market where foresight is key. |
Supply Chain Management |
The global supply chains have faced another year of disruptions. The most significant have included the Red sea, Russia-Ukraine war, US-China trade war, and the consumer goods boom. Supply chain disruptions have also included a variety of natural disasters, financial failures, and operational difficulties. |
The company maintains a diligent oversight of political, economic, and social factors that have the potential to impact its robust supply chains. The board is committed to proactively adapt to evolving circumstances at every stage of the supply chain, leveraging its extensive expertise in managing these processes effectively. |
The company continues to deliver significant value to its retail customers through its network of customised manufacturing facilities, ethical sourcing practices, and a well-controlled and transparent supply chain. |
Cyber Risk |
As digitalisation continues to expand, the company faces an emerging threat in the form of cybersecurity risks. With the increased reliance on digital platforms for operations and customer interactions, the vulnerability to cyber-attacks grows. |
Ensuring robust cybersecurity measures is imperative to safeguard sensitive data, maintain operational continuity, and protect the company's reputation. Continuous monitoring, regular updates to security protocols, and employee training on cyber hygiene are essential components in mitigating this evolving risk landscape. Proactive measures will be crucial in fortifying the company's resilience against potential cyber threats in an increasingly interconnected world. |
Employee Risk |
The company mitigates this risk, by developing robust recruitment strategies, offering competitive compensation packages, providing opportunities for professional growth, and upskilling or reskilling existing employees to fill talent gaps. Reasonably sustainable head count in each department alleviates pressure and fosters an effective working environment for all working colleagues. |
By fostering a diverse workforce and embracing various perspectives, the company not only enhances innovation but also creates a welcoming environment where employees feel valued and respected. This inclusivity not only boosts morale but also promotes collaboration and creativity, allowing us to tackle challenges from multiple angles and devise innovative solutions. By championing diversity in its workforce and encouraging a culture of openness and respect, the company is well equipped and set up for continued success in today's dynamic business landscape. |
Hiatt Hardware (UK) Limited (Registered number: 06804515) |
Strategic Report |
For The Year Ended 31 December 2024 |
SECTION 172(1) STATEMENT |
The directors of the group affirm that they have fulfilled their fiduciary duties diligently and in the best interest of the members, demonstrating good faith and utilising their utmost abilities. Their ongoing commitment lies in promoting the success and future growth of the group, with a strong emphasis on prioritising the health and safety of employees and other stakeholders, thereby ensuring a safe working environment for all. The company has implemented robust processes that are integrated into day-to-day operations to ensure compliance with relevant regulations. |
Moreover, the group has established internal policies aimed at mitigating a wide range of risk factors that could potentially impact the smooth functioning and reputation of the group. These policies also serve to ensure that the group operates in a socially and ethically responsible manner. All employees are required to read and sign these policies, demonstrating their understanding and commitment to adhere to the outlined principles. While the policies encompass various areas, some examples include but are not limited to the following: |
- | Anti-Bribery and Corruption Policy |
- | Data Protection Policy |
- | Environmental Policy |
- | Equal Opportunities and Diversity Policy |
- | Ethical policy |
- | Health & Safety Policy |
- | Hospitality and Gifts Policy |
- | Modern Slavery Policy |
- | Dignity at work Policy |
The board of directors also acknowledge the growing importance of sustainability and its effects on the wider stakeholders. It endeavours to clearly understand the impact of the company's business activities on the environment and society and assess the risks and opportunities presented. |
GOING CONCERN |
The directors consider that taking into the account the healthy financial position of the company, especially the availability of retained working capital and low fixed yet an efficient cost base that the business can operate for the foreseeable future. As a result, these financial statements and annual reports have been prepared on a going concern basis. |
ON BEHALF OF THE BOARD: |
Hiatt Hardware (UK) Limited (Registered number: 06804515) |
Report of the Directors |
For The Year Ended 31 December 2024 |
The directors present their report with the financial statements of the company for the year ended 31 December 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of design, development, manufacturing, marketing, and distribution of Hardware/ Ironmongery products to commercial retail and merchant trade including home improvement retailers. |
DIVIDENDS |
Dividends of £1,040,000 were paid in the year to GKA Grandsons Limited. The directors do not propose a final dividend. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Hiatt Hardware (UK) Limited |
Opinion |
We have audited the financial statements of Hiatt Hardware (UK) Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity 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 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. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Hiatt Hardware (UK) Limited |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- | Enquiry of management, those charged with governance around actual and potential litigation and claims; |
- | Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations; |
- | Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; |
- | Performing audit work over the risk of management override of controls, including testing of journal entries, sales and stock controls and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants |
Sidings Court |
Lakeside |
Doncaster |
South Yorkshire |
DN4 5NU |
Hiatt Hardware (UK) Limited (Registered number: 06804515) |
Income Statement |
For The Year Ended 31 December 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
4,232,918 | 3,514,172 |
2,649,808 | 3,437,341 |
Other operating income |
OPERATING PROFIT | 4 |
Interest receivable and similar income |
PROFIT BEFORE TAXATION |
Tax on profit | 5 |
PROFIT FOR THE FINANCIAL YEAR |
Hiatt Hardware (UK) Limited (Registered number: 06804515) |
Other Comprehensive Income |
For The Year Ended 31 December 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME |
Revaluation of property |
Income tax relating to other comprehensive income |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Hiatt Hardware (UK) Limited (Registered number: 06804515) |
Balance Sheet |
31 December 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 7 |
Tangible assets | 8 |
Investments | 9 |
CURRENT ASSETS |
Stocks | 10 |
Debtors | 11 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 13 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 14 |
Share premium | 15 |
Revaluation reserve | 15 |
Retained earnings | 15 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Hiatt Hardware (UK) Limited (Registered number: 06804515) |
Statement of Changes in Equity |
For The Year Ended 31 December 2024 |
Called up |
share | Retained | Share | Revaluation | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2023 |
Changes in equity |
Profit for the year | - | 2,774,255 | - | - | 2,774,255 |
Other comprehensive income | - | 8,102 | - | ( |
) | 6,250 |
Total comprehensive income | - | - | ( |
) |
Dividends | - | ( |
) | - | - | ( |
) |
Balance at 31 December 2023 |
Changes in equity |
Profit for the year | - | 2,179,084 | - | - | 2,179,084 |
Other comprehensive income | - | 8,102 | - | ( |
) | 6,250 |
Total comprehensive income | - | - | ( |
) |
Dividends | - | ( |
) | - | - | ( |
) |
Balance at 31 December 2024 |
Hiatt Hardware (UK) Limited (Registered number: 06804515) |
Notes to the Financial Statements |
For The Year Ended 31 December 2024 |
1. | STATUTORY INFORMATION |
Hiatt Hardware (UK) Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Accounting reference date |
The company has taken advantage of the provisions in section 390 of the Companies Act 2006 which allow the company to make accounts up to a date within seven days of the accounting reference date. The company financial statements are made up to 31st December 2024 (2023: 26 December 2023). |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows. |
Preparation of consolidated financial statements |
The financial statements contain information about Hiatt Hardware (UK) Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, GKA Grandsons Limited, 106 Elkington Street, Aston, Birmingham B6 4SL. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Critical accounting judgements and key sources of estimation uncertainty |
In preparing these financial statements, the directors have had to make the following judgements: |
Stock valuation (judgement) |
At each reporting date, stock is assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to sell. The impairment loss is recognised immediately in the statement of comprehensive income. |
Property Valuation (judgement) |
At each reporting date, the property value is assessed to ensure it is being held at fair value. |
Turnover |
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company 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 company has transferred the significant risks and rewards of ownership to the buyer; |
- | the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |
- | the amount of revenue can be measured reliably; |
- | it is probable that the company 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. |
Goodwill |
Goodwill, being the amount paid in connection with the acquisition of a business in 2009, has been fully amortised. |
Hiatt Hardware (UK) Limited (Registered number: 06804515) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2024 |
2. | ACCOUNTING POLICIES - continued |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
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. |
The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred. |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life: |
Plant & machinery - 20% on cost |
Motor vehicles - 20% on reducing balance |
Computer equipment - 20% on cost |
Fixtures and fittings - 20% on cost |
Long leasehold property - 2% on cost |
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 within 'cost of sales' in the statement of comprehensive income. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Financial instruments |
The company holds basic financial instruments as defined by FRS102. The financial assets and financial liabilities of the company and their measurement basis are as follows: |
Financial assets - trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments. |
Cash at bank - is classified as a basic financial instrument and is measured at face value. |
Financial liabilities - trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition. Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument. |
The company enters into foreign exchange forward contracts to manage its exposure to foreign currency risk. These derivatives are measured at fair value at each reporting date and changes in fair value are recognised in profit and loss for the period |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Hiatt Hardware (UK) Limited (Registered number: 06804515) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2024 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Trust |
The company has created a trust whose beneficiaries include employees of the company and their dependents. Assets held under this trust are controlled by trustees who will be acting independently and entirely at their own discretion. |
Where assets are held in the trust and these are considered by the company to be in respect of services already provided by employees to the company, the company accounts for these as assets of the trust when payment is made to the trust. The value transferred was charged in the company's profit and loss account for the year to which it related. |
Grants |
Grants received in respect of revenue expenditure are credited to the profit and loss account in the year to which they relate. |
3. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
Administrative and warehouse staff |
2024 | 2023 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Hiatt Hardware (UK) Limited (Registered number: 06804515) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2024 |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
Computer software amortisation |
Auditors' remuneration |
Foreign exchange gains/(losses) | ( |
) |
5. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) |
Tax on profit |
UK corporation tax has been charged at 25% (2023 - 23.50%). |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Patent box | (21,735 | ) | (21,653 | ) |
Super deduction | - | (8 | ) |
Change in tax rates | - | 1,885 |
Depreciation on non eligible assets | 5,973 | 5,614 |
Total tax charge | 705,346 | 833,710 |
Tax effects relating to effects of other comprehensive income |
2024 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation of property | 6,250 | 6,250 |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation of property | 6,250 | 6,250 |
Hiatt Hardware (UK) Limited (Registered number: 06804515) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2024 |
6. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary A shares of £1 each |
Interim |
Ordinary B shares of £1 each |
Interim |
7. | INTANGIBLE FIXED ASSETS |
Computer |
Goodwill | software | Totals |
£ | £ | £ |
COST |
At 1 January 2024 |
and 31 December 2024 |
AMORTISATION |
At 1 January 2024 |
Amortisation for year |
At 31 December 2024 |
NET BOOK VALUE |
At 31 December 2024 |
At 31 December 2023 |
8. | TANGIBLE FIXED ASSETS |
Long | Fixtures |
leasehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST OR VALUATION |
At 1 January 2024 |
Additions |
At 31 December 2024 |
DEPRECIATION |
At 1 January 2024 |
Charge for year |
At 31 December 2024 |
NET BOOK VALUE |
At 31 December 2024 |
At 31 December 2023 |
Hiatt Hardware (UK) Limited (Registered number: 06804515) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2024 |
8. | TANGIBLE FIXED ASSETS - continued |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 January 2024 |
Additions |
At 31 December 2024 |
DEPRECIATION |
At 1 January 2024 |
Charge for year |
At 31 December 2024 |
NET BOOK VALUE |
At 31 December 2024 |
At 31 December 2023 |
Cost or valuation at 31 December 2024 is represented by: |
Long | Fixtures |
leasehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
Valuation in 2020 | 5,000,000 | - | - |
Cost | - | 388,934 | 189,110 |
5,000,000 | 388,934 | 189,110 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
Valuation in 2020 | - | - | 5,000,000 |
Cost | 494,672 | 61,759 | 1,134,475 |
494,672 | 61,759 | 6,134,475 |
If long leasehold property had not been revalued it would have been included at the following historical cost: |
2024 | 2023 |
£ | £ |
Cost | 3,466,212 | 3,466,212 |
Aggregate depreciation | 155,979 | 138,648 |
Long leasehold land and buildings were valued on an open market basis on 31 December 2020 by Mr J K Crawford MRICS, of Cushman & Wakefield. |
The directors consider this valuation approximates to the market value at 31 December 2024. |
Hiatt Hardware (UK) Limited (Registered number: 06804515) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2024 |
9. | FIXED ASSET INVESTMENTS |
Unlisted |
investment |
£ |
COST |
At 1 January 2024 |
and 31 December 2024 |
NET BOOK VALUE |
At 31 December 2024 |
At 31 December 2023 |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Registered office: 106 Elkington Street, Aston, Birmingham, England, B6 4SL |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
10. | STOCKS |
2024 | 2023 |
£ | £ |
Stocks |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Derivative financial instruments | - | 428,023 |
Prepayments |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Taxation |
Social security and other taxes |
Derivative financial instruments | 138,876 | - |
Other creditors |
Directors' current accounts | - | 881,752 |
Accruals and deferred income |
Hiatt Hardware (UK) Limited (Registered number: 06804515) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2024 |
13. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax |
Other timing differences | (420 | ) | (289 | ) |
Accelerated capital allowances | 104,941 | 110,726 |
Deferred tax on revaluation surplus | 353,079 | 359,329 |
457,600 | 469,766 |
Deferred |
tax |
£ |
Balance at 1 January 2024 |
Movement in year |
Capital allowances | (5,785 | ) |
Revaluation | (6,250 | ) |
Short term timing difference | (131 | ) |
Balance at 31 December 2024 |
Deferred tax has been charged at 25% (2023: 25%). |
14. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary A | £1 | 540 | 540 |
Ordinary B | £1 | 460 | 460 |
1,000 | 1,000 |
15. | RESERVES |
Retained | Share | Revaluation |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 January 2024 | 13,682,792 |
Profit for the year | - | - |
Dividends | ( |
) | - | - | ( |
) |
Transfer for depreciation on |
revaluation | 8,102 | - | (8,102 | ) | - |
Movement in deferred tax |
provision | - | - | 6,250 | 6,250 |
At 31 December 2024 | 14,828,126 |
16. | ULTIMATE PARENT COMPANY |
The controlling party and parent undertaking, whose consolidated financial statements include the results of this company, is GKA Grandsons Limited. |
Its registered office is 106 Elkington Street, Aston, Birmingham, B6 4SL. |
Group financial statements can be obtained from Companies House, Crown Way, Maindy, Cardiff, CF14 3UZ. |
Hiatt Hardware (UK) Limited (Registered number: 06804515) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2024 |
17. | OTHER FINANCIAL COMMITMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2024 | 2023 |
£ | £ |
Payable within one year | 1,866 | 1,866 |
Payable between one and five years | 1,866 | 3,733 |
3,732 | 5,599 |
18. | RELATED PARTY DISCLOSURES |
During the year the following related party transactions took place and the balances outstanding are:- |
2024 | 2023 |
£ | £ |
Purchases with companies controlled by close family members | 4,764,995 | 4,256,688 |
Amount due to companies controlled by close family members | 2,132,167 | 1,468,196 |
Amount due from parent company | 1,500,000 | - |
Amount due to the directors | - | 881,752 |
The amounts due are repayable on demand. |
All transactions were under normal market conditions. |
There are no key management personnel except the directors. |