REGISTERED NUMBER: 06180131 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 October 2024 |
for |
Hibiscus Holdings Plc |
REGISTERED NUMBER: 06180131 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 October 2024 |
for |
Hibiscus Holdings Plc |
Hibiscus Holdings Plc (Registered number: 06180131) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 October 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 4 |
Consolidated Statement of Comprehensive Income | 6 |
Consolidated Balance Sheet | 7 |
Company Balance Sheet | 8 |
Consolidated Statement of Changes in Equity | 9 |
Company Statement of Changes in Equity | 10 |
Consolidated Cash Flow Statement | 11 |
Notes to the Consolidated Cash Flow Statement | 12 |
Notes to the Consolidated Financial Statements | 13 |
Hibiscus Holdings Plc |
Company Information |
for the Year Ended 31 October 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Network House |
Stubs Beck Lane |
Cleckheaton |
BD19 4TT |
Hibiscus Holdings Plc (Registered number: 06180131) |
Group Strategic Report |
for the Year Ended 31 October 2024 |
The directors present their strategic report of the company and the group for the year ended 31 October 2024. |
FAIR REVIEW OF THE BUSINESS |
The group has repeated its consistent record in both turnover and profits for the year ended 31 October 2024. The group has performed well in a tough business climate during 2024, and has maintained its margins, with Gross Profit Margin for the year at 41.8% (2023: 42.1%). Operating Profit Margin for the year is 8.2% (2023: 10.6%), with a decrease from 2023 as a result of pay increases across the business to retain skilled staff at competitive remuneration packages. The statutory increase in Employers NI during the year has also resulted in increased costs of employment. |
The group has strived to maintain its high standards of quality and customer service through investment in plant and machinery during the year of £24,000. It has continued to establish trusted relationships with its suppliers as an organically grown group with over 30 years of trading history. The group reputation as a market leader in the chemical label printing industry continues in good stead. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Financial, credit, liquidity and cashflow risks are considered low as the group continues to show profitability. Working capital is managed and reviewed on a weekly basis. The group maintains a healthy balance sheet, highlighting the strong working capital cycle. The business continues to be run efficiently with a consistent and highly skilled management team. |
A major business risk has been the general election held in July 2024 and the resultant changes in taxation policy. The situation in the red sea continues to affect the group’s supply chain with extended lead times. |
STRATEGY |
The strategy of sustainable growth in customer base and maintaining profitability margins has successfully navigated the group through challenging economical periods, and the board are seeking a continuation. |
KEY PERFORMANCE INDICATORS |
The Board monitors the progress of the group by reference to the following KPI's : |
2024 | 2023 |
Turnover | £4,562,373 | £4,637,987 |
Gross profit percentage | 41.8% | 42.1% |
Operating profit percentage | 8.2% | 10.6% |
The main non-financial KPI is customer satisfaction resulting from repeat orders. |
FUTURE DEVELOPMENTS |
The group is now well placed for further growth and are seeking opportunities to significantly increase turnover by entering new markets. |
ON BEHALF OF THE BOARD: |
Hibiscus Holdings Plc (Registered number: 06180131) |
Report of the Directors |
for the Year Ended 31 October 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 31 October 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of the manufacture of specialist labels and software for hazardous goods. |
DIVIDENDS |
No interim dividends were paid during the year ended 31 October 2024. |
The directors recommend final dividends per share as follows: |
Ordinary £1 shares | NIL |
A Ordinary £1 shares | 6 |
B Ordinary £1 shares | 8.22 |
The total distribution of dividends for the year ended 31 October 2024 will be £ 336,904 . |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 November 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information. |
AUDITORS |
The auditors, KJA Kilner Johnson Ltd (Statutory Auditors), will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Hibiscus Holdings Plc |
Opinion |
We have audited the financial statements of Hibiscus Holdings Plc (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 31 October 2024 and of the group's 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 group 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the 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 Group 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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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. |
Report of the Independent Auditors to the Members of |
Hibiscus Holdings Plc |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
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: |
While planning our audit, we have enquired of management and those charged with governance around any actual or potential litigation and claims against the company for non-compliance with specific laws and regulations. The same has been done in respect of any instances of fraud or irregularities. The responses received have been communicated with the engagement team at the planning stage. |
We have not been informed of any specific laws or regulatory related issues that could materially impact the financial statements in addition to this, there has been no suspected fraud or irregularities reported to us. |
While planning our audit the engagement partner selected appropriately trained staff to be engaged in the audit and the team are allocated based on their competence and capabilities. |
The audit work undertaken is a substantive work based audit approach, reviewing to source documentation where appropriate and includes a review and walkthrough of the systems which management have put in place. These tests are directional. Therefore, they are designed in a way to maximise audit effectiveness and the possible identification of any material fraud, irregularities, or instances of systems and procedure breaches. Our testing did not identify any issues that require additional reporting. |
These tests and other areas of our audit work are designed to enhance our ability to detect cases of material fraud and certain irregularities. It should be noted that our audit is carried out using a material based approach and therefore does not test every transaction, as such it would not detect all instances of irregularities and specifically fraud which is inherently more difficult to detect. |
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 |
Network House |
Stubs Beck Lane |
Cleckheaton |
BD19 4TT |
Hibiscus Holdings Plc (Registered number: 06180131) |
Consolidated |
Statement of Comprehensive |
Income |
for the Year Ended 31 October 2024 |
2024 | 2023 |
as restated |
Notes | £ | £ | £ | £ |
TURNOVER | 4,562,373 | 4,637,987 |
Cost of sales | 2,657,287 | 2,683,481 |
GROSS PROFIT | 1,905,086 | 1,954,506 |
Distribution costs | 47,926 | 46,675 |
Administrative expenses | 1,481,433 | 1,416,012 |
1,529,359 | 1,462,687 |
OPERATING PROFIT | 4 | 375,727 | 491,819 |
Interest receivable and similar income | 1,590 | - |
377,317 | 491,819 |
Interest payable and similar expenses | 5 | 87,666 | 73,974 |
PROFIT BEFORE TAXATION | 289,651 | 417,845 |
Tax on profit | 6 | 90,955 | 94,611 |
PROFIT FOR THE FINANCIAL YEAR |
Hibiscus Holdings Plc (Registered number: 06180131) |
Consolidated Balance Sheet |
31 October 2024 |
2024 | 2023 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 | 1,419,521 | 1,424,540 |
Investments | 11 | - | - |
Investment property | 12 | - | - |
1,419,521 | 1,424,540 |
CURRENT ASSETS |
Stocks | 13 | 433,819 | 525,002 |
Debtors | 14 | 816,707 | 687,300 |
Cash at bank and in hand | 23,153 | 461,890 |
1,273,679 | 1,674,192 |
CREDITORS |
Amounts falling due within one year | 15 | 1,320,609 | 1,641,149 |
NET CURRENT (LIABILITIES)/ASSETS | (46,930 | ) | 33,043 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
1,372,591 |
1,457,583 |
CREDITORS |
Amounts falling due after more than one year | 16 | (193,554 | ) | (150,426 | ) |
PROVISIONS FOR LIABILITIES | 20 | (366,466 | ) | (356,378 | ) |
NET ASSETS | 812,571 | 950,779 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 50,000 | 50,000 |
Retained earnings | 22 | 762,571 | 900,779 |
SHAREHOLDERS' FUNDS | 812,571 | 950,779 |
The financial statements were approved by the Board of Directors and authorised for issue on 16 April 2025 and were signed on its behalf by: |
J Killerby - Director |
Hibiscus Holdings Plc (Registered number: 06180131) |
Company Balance Sheet |
31 October 2024 |
2024 | 2023 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
Investments | 11 |
Investment property | 12 |
CURRENT ASSETS |
Debtors | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 16 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 20 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Revaluation reserve | 22 |
Fair value reserve | 22 |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 176,720 | 315,081 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Hibiscus Holdings Plc (Registered number: 06180131) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 October 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 November 2022 | 50,000 | 928,045 | 978,045 |
Changes in equity |
Dividends | - | (350,500 | ) | (350,500 | ) |
Total comprehensive income | - | 461,234 | 461,234 |
Balance at 31 October 2023 | 50,000 | 1,038,779 | 1,088,779 |
Prior year adjustment | - | (138,000 | ) | (138,000 | ) |
As restated | 50,000 | 900,779 | 950,779 |
Changes in equity |
Dividends | - | (336,904 | ) | (336,904 | ) |
Total comprehensive income | - | 198,696 | 198,696 |
Balance at 31 October 2024 | 50,000 | 762,571 | 812,571 |
Hibiscus Holdings Plc (Registered number: 06180131) |
Company Statement of Changes in Equity |
for the Year Ended 31 October 2024 |
Called up | Fair |
share | Retained | Revaluation | value | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 November 2022 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - |
Balance at 31 October 2023 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | ( |
) |
Balance at 31 October 2024 |
Hibiscus Holdings Plc (Registered number: 06180131) |
Consolidated Cash Flow Statement |
for the Year Ended 31 October 2024 |
2024 | 2023 |
as restated |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 69,970 | 635,118 |
Interest paid | (72,873 | ) | (60,796 | ) |
Interest element of hire purchase payments paid | (1,353 | ) | - |
Finance costs paid | (13,440 | ) | (13,178 | ) |
Tax paid | (78,802 | ) | (125,213 | ) |
Net cash from operating activities | (96,498 | ) | 435,931 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (43,605 | ) | (152,776 | ) |
Interest received | 1,590 | - |
Net cash from investing activities | (42,015 | ) | (152,776 | ) |
Cash flows from financing activities |
New loans in year | - | 550,000 |
Loan repayments in year | (552,056 | ) | (89,373 | ) |
Capital repayments in year | (10,350 | ) | - |
Amount introduced by directors | 4,693 | 353,058 |
Amount withdrawn by directors | (5,136 | ) | (316,282 | ) |
Invoice financing advance | 601,296 | - |
Employee schemes | (1,767 | ) | - |
Equity dividends paid | (336,904 | ) | (350,500 | ) |
Net cash from financing activities | (300,224 | ) | 146,903 |
(Decrease)/increase in cash and cash equivalents | (438,737 | ) | 430,058 |
Cash and cash equivalents at beginning of year | 2 | 461,890 | 31,832 |
Cash and cash equivalents at end of year | 2 | 23,153 | 461,890 |
Hibiscus Holdings Plc (Registered number: 06180131) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 October 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
as restated |
£ | £ |
Profit before taxation | 289,651 | 417,845 |
Depreciation charges | 116,323 | 92,526 |
Finance costs | 87,666 | 73,974 |
Finance income | (1,590 | ) | - |
492,050 | 584,345 |
Decrease/(increase) in stocks | 91,183 | (30,173 | ) |
(Increase)/decrease in trade and other debtors | (127,640 | ) | 39,495 |
(Decrease)/increase in trade and other creditors | (385,623 | ) | 41,451 |
Cash generated from operations | 69,970 | 635,118 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 October 2024 |
31.10.24 | 1.11.23 |
£ | £ |
Cash and cash equivalents | 23,153 | 461,890 |
Year ended 31 October 2023 |
31.10.23 | 1.11.22 |
as restated |
£ | £ |
Cash and cash equivalents | 461,890 | 31,832 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
Other |
non-cash |
At 1.11.23 | Cash flow | changes | At 31.10.24 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 461,890 | (438,737 | ) | 23,153 |
461,890 | (438,737 | ) | 23,153 |
Debt |
Finance leases | - | 10,350 | (67,699 | ) | (57,349 | ) |
Debts falling due |
within 1 year | (641,538 | ) | 549,455 | - | (92,083 | ) |
Debts falling due |
after 1 year | (150,426 | ) | 2,600 | - | (147,826 | ) |
(791,964 | ) | 562,405 | (67,699 | ) | (297,258 | ) |
Total | (330,074 | ) | 123,668 | (67,699 | ) | (274,105 | ) |
Hibiscus Holdings Plc (Registered number: 06180131) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 October 2024 |
1. | STATUTORY INFORMATION |
Hibiscus Holdings Plc is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The consolidated financial statements include the results of the Company and all its subsidiary undertakings made up to the same accounting date. All intra-Group balances, transactions, income and expenses are eliminated in full on consolidation. The results of subsidiary undertakings acquired or disposed of during the period are included or excluded from the consolidated income statement from the effective date of acquisition or disposal. |
Significant judgements and estimates |
In the company the property is treated as an investment property and shown at fair value which is an accounting estimate. In the consolidated accounts, the property is treated as freehold property and is shown at depreciated cost because it is a group asset which is owned by one group member and rented to another group member. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
The entity recognises goods sales at the point at which goods are manufactured, packaged and exit the business premises for delivery to the customer. |
Tangible fixed assets |
Plant and machinery | - |
Motor vehicles | - |
Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
During the year, the business ERP system was incorrectly valuing internally manufactured finished goods. As a result, management restated the accounting policy for internally manufactured finished goods and valued internally manufactured finished goods at upto 75% of the selling price. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, 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. |
Hibiscus Holdings Plc (Registered number: 06180131) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 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. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
as restated |
£ | £ |
Wages and salaries | 1,118,473 | 1,080,244 |
Social security costs | 109,498 | 107,769 |
Other pension costs | 30,946 | 28,079 |
1,258,917 | 1,216,092 |
The average number of employees during the year was as follows: |
2024 | 2023 |
as restated |
Office and management | 10 | 7 |
Production and sales | 21 | 23 |
2024 | 2023 |
as restated |
£ | £ |
Directors' remuneration | 53,479 | 48,000 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 1 | - |
Hibiscus Holdings Plc (Registered number: 06180131) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2024 |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
2024 | 2023 |
as restated |
£ | £ |
Other operating leases | 136,303 | 116,239 |
Depreciation - owned assets | 98,336 | 92,526 |
Depreciation - assets on hire purchase contracts | 17,987 | - |
Auditors' remuneration | 15,000 | 13,000 |
Foreign exchange differences | - | 93 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
as restated |
£ | £ |
Bank loan interest | 35,225 | 31,250 |
Invoice discounting interest | 37,120 | 29,546 |
Interest payable | 528 | - |
Hire purchase | 1,353 | - |
Invoice discounting fees | 13,440 | 13,178 |
87,666 | 73,974 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
as restated |
£ | £ |
Current tax: |
UK corporation tax | 89,520 | 77,855 |
Deferred tax | (8,654 | ) | - |
Total current tax | 80,866 | 77,855 |
Deferred tax | 10,089 | 16,756 |
Tax on profit | 90,955 | 94,611 |
UK corporation tax has been charged at 25 % (2023 - 22.50 %). |
Hibiscus Holdings Plc (Registered number: 06180131) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2024 |
6. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
as restated |
£ | £ |
Profit before tax | 289,651 | 417,845 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 22.500 %) |
72,413 |
94,015 |
Effects of: |
Expenses not deductible for tax purposes | 883 | 15,644 |
Capital allowances in excess of depreciation | - | (21,397 | ) |
Utilisation of tax losses | (1,816 | ) | (26,834 | ) |
Adjustments to tax charge in respect of previous periods | 11,910 | - |
Deferred tax | 10,089 | 16,756 |
Change in effective tax rates | - | 11,252 |
Other reconciling items | (2,524 | ) | 5,175 |
Total tax charge | 90,955 | 94,611 |
7. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
8. | DIVIDENDS |
2024 | 2023 |
as restated |
£ | £ |
Ordinary shares of £1 each |
Final | - | 350,500 |
A Ordinary shares of £1 each |
Final | 199,885 | - |
B Ordinary shares of £1 each |
Final | 137,019 | - |
336,904 | 350,500 |
9. | PRIOR YEAR ADJUSTMENT |
A prior year adjustment of £138,000 has been made in the consolidated accounts to reflect accumulated depreciation on freehold property up to 31 October 2023. |
A prior period error was realised in the accounting classification of investment property in Hibiscus Holdings PLC, the company. The balance was incorrectly accounted and recognised as freehold property in prior periods. The correction made in the prior period has nil effect on the brought forward reserves. |
Hibiscus Holdings Plc (Registered number: 06180131) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2024 |
10. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Plant and | Motor |
property | machinery | vehicles | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 November 2023 | 1,150,000 | 990,533 | - | 2,140,533 |
Additions | - | 39,355 | 71,949 | 111,304 |
At 31 October 2024 | 1,150,000 | 1,029,888 | 71,949 | 2,251,837 |
DEPRECIATION |
At 1 November 2023 | 138,000 | 577,993 | - | 715,993 |
Charge for year | 23,000 | 75,336 | 17,987 | 116,323 |
At 31 October 2024 | 161,000 | 653,329 | 17,987 | 832,316 |
NET BOOK VALUE |
At 31 October 2024 | 989,000 | 376,559 | 53,962 | 1,419,521 |
At 31 October 2023 | 1,012,000 | 412,540 | - | 1,424,540 |
Cost or valuation at 31 October 2024 is represented by: |
Freehold | Plant and | Motor |
property | machinery | vehicles | Totals |
£ | £ | £ | £ |
Valuation in 2022 | 1,150,000 | - | - | 1,150,000 |
Cost | - | 1,029,888 | 71,949 | 1,101,837 |
1,150,000 | 1,029,888 | 71,949 | 2,251,837 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST OR VALUATION |
Additions | 71,949 |
At 31 October 2024 | 71,949 |
DEPRECIATION |
Charge for year | 17,987 |
At 31 October 2024 | 17,987 |
NET BOOK VALUE |
At 31 October 2024 | 53,962 |
Hibiscus Holdings Plc (Registered number: 06180131) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2024 |
10. | TANGIBLE FIXED ASSETS - continued |
Company |
Plant and |
machinery |
£ |
COST OR VALUATION |
At 1 November 2023 |
Additions |
At 31 October 2024 |
DEPRECIATION |
At 1 November 2023 |
Charge for year |
At 31 October 2024 |
NET BOOK VALUE |
At 31 October 2024 |
At 31 October 2023 |
Cost or valuation at 31 October 2024 is represented by: |
Plant and |
machinery |
£ |
Cost | 1,029,888 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 November 2023 |
and 31 October 2024 |
NET BOOK VALUE |
At 31 October 2024 |
At 31 October 2023 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: Hudswell Road, Leeds, LS10 1AG |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Hibiscus Holdings Plc (Registered number: 06180131) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2024 |
12. | INVESTMENT PROPERTY - continued |
12. | INVESTMENT PROPERTY |
Company |
Total |
£ |
FAIR VALUE |
At 1 November 2023 |
and 31 October 2024 |
NET BOOK VALUE |
At 31 October 2024 |
At 31 October 2023 |
A prior year adjustment has been made to reclassify the property as an investment property. It was previously shown as freehold property. It continues to be shown at fair value under FRS 102 section 16-4A so there is no effect on profit in either year.The reserves have been amended accordingly. |
Fair value at 31 October 2024 is represented by: |
£ |
Valuation in 2022 | 900,000 |
Cost | 1,150,000 |
2,050,000 |
If Investment property had not been revalued it would have been included at the following historical cost: |
2024 | 2023 |
as restated |
£ | £ |
Cost | 1,150,000 | 1,150,000 |
Aggregate depreciation | (161,000 | ) | (138,000 | ) |
Investment property was valued on an open market basis on 17 October 2022 by Dove Haigh Phillips . |
13. | STOCKS |
Group |
2024 | 2023 |
as restated |
£ | £ |
Raw materials | 108,376 | 129,498 |
Work-in-progress | 7,098 | 3,865 |
Finished goods | 318,345 | 391,639 |
433,819 | 525,002 |
Hibiscus Holdings Plc (Registered number: 06180131) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2024 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
as restated | as restated |
£ | £ | £ | £ |
Trade debtors | 763,702 | 663,963 |
Other debtors | 1,767 | 1,168 |
VAT | - | - |
Prepayments and accrued income | 51,238 | 22,169 |
816,707 | 687,300 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
as restated | as restated |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 17) | 87,821 | 591,112 |
Other loans (see note 17) | 4,262 | 50,426 |
Hire purchase contracts (see note 18) | 11,621 | - |
Trade creditors | 368,425 | 324,232 |
Tax | 79,919 | 77,855 |
Social security and other taxes | 28,757 | 25,639 |
VAT | 71,946 | 71,230 | 353 | - |
Other creditors | 612,575 | 433,983 |
Directors' loan accounts | - | 443 | - | 443 |
Accruals and deferred income | 55,283 | 66,229 |
1,320,609 | 1,641,149 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
as restated | as restated |
£ | £ | £ | £ |
Bank loans (see note 17) | 147,826 | 150,426 |
Hire purchase contracts (see note 18) | 45,728 | - |
Amounts owed to group undertakings | - | - | 695,326 | 517,042 |
193,554 | 150,426 |
Hibiscus Holdings Plc (Registered number: 06180131) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2024 |
17. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
as restated | as restated |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 87,821 | 591,112 |
Other loans | 4,262 | 50,426 |
92,083 | 641,538 |
Amounts falling due between one and two years: |
Bank loans - 1-2 years | 87,818 | 87,818 |
Amounts falling due between two and five years: |
Bank loans - 2-5 years | 60,008 | 62,608 |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2024 | 2023 |
as restated |
£ | £ |
Gross obligations repayable: |
Within one year | 12,273 | - |
Between one and five years | 46,380 | - |
58,653 | - |
Finance charges repayable: |
Within one year | 652 | - |
Between one and five years | 652 | - |
1,304 | - |
Net obligations repayable: |
Within one year | 11,621 | - |
Between one and five years | 45,728 | - |
57,349 | - |
Group |
Non-cancellable operating | leases |
2024 | 2023 |
as restated |
£ | £ |
Within one year | 57,959 | 37,180 |
Between one and five years | 63,549 | 70,558 |
121,508 | 107,738 |
Hibiscus Holdings Plc (Registered number: 06180131) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2024 |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
as restated | as restated |
£ | £ | £ | £ |
Bank loans | 235,647 | - |
Other loans | 4,262 | - | - | - |
Hire purchase contracts | 57,349 | - | - | - |
Invoice discounting | 601,299 | 406,581 | - | - |
898,557 | 406,581 |
The company has an invoice finance facility. The debt outstanding at the year end is secured with a charge over trade debtors. |
All freehold and leasehold property owned by the group is secured by a loan from Santander UK PLC loan. |
20. | PROVISIONS FOR LIABILITIES |
Group | Company |
2024 | 2023 | 2024 | 2023 |
as restated | as restated |
£ | £ | £ | £ |
Deferred tax |
Other timing differences | (661 | ) | - | - | - |
Deferred tax | 367,127 | 356,378 | 367,127 | 356,378 |
366,466 | 356,378 | 367,127 | 356,378 |
Group |
Deferred |
tax |
£ |
Balance at 1 November 2023 | 356,378 |
Provided during year | 10,749 |
Credit to Statement of Comprehensive Income during year | (661 | ) |
Balance at 31 October 2024 | 366,466 |
Company |
Deferred |
tax |
£ |
Balance at 1 November 2023 |
Provided during year | ( |
) |
Prior year adjustment | 20,564 |
Balance at 31 October 2024 |
Hibiscus Holdings Plc (Registered number: 06180131) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2024 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | as restated |
£ | £ |
Ordinary | £1 | - | 50,000 |
A Ordinary | £1 | 33,333 | - |
B Ordinary | £1 | 16,667 | - |
50,000 | 50,000 |
22. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 November 2023 | 1,038,779 |
Prior year adjustment | (138,000 | ) |
900,779 |
Profit for the year | 198,696 |
Dividends | (336,904 | ) |
At 31 October 2024 | 762,571 |
Company |
Fair |
Retained | Revaluation | value |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
At 1 November 2023 | 1,287,406 |
Profit for the year |
Dividends | ( |
) | ( |
) |
Transfer in year | 249,891 | (924,891 | ) | 675,000 | - |
At 31 October 2024 | 1,127,222 |
23. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 31 October 2024 and 31 October 2023: |
2024 | 2023 |
as restated |
£ | £ |
J Killerby |
Balance outstanding at start of year | (443 | ) | 350,057 |
Amounts advanced | 204,578 | - |
Amounts repaid | (204,135 | ) | (350,500 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | - | (443 | ) |
Hibiscus Holdings Plc (Registered number: 06180131) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2024 |
23. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES - continued |
B Killerby |
Balance outstanding at start of year | - | - |
Amounts advanced | 137,019 | - |
Amounts repaid | (137,019 | ) | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | - | - |