Company registration number 04138566 (England and Wales)
HYFORE WORKHOLDING LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
HYFORE WORKHOLDING LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 13
HYFORE WORKHOLDING LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
601,683
525,641
Current assets
Stocks
370,533
339,460
Debtors
4
4,787,315
4,729,039
Cash at bank and in hand
1,377
1,619
5,159,225
5,070,118
Creditors: amounts falling due within one year
5
(897,588)
(883,140)
Net current assets
4,261,637
4,186,978
Total assets less current liabilities
4,863,320
4,712,619
Creditors: amounts falling due after more than one year
6
(232,788)
(212,409)
Provisions for liabilities
(57,831)
(59,256)
Net assets
4,572,701
4,440,954
Capital and reserves
Called up share capital
7
10,000
10,000
Share premium account
14,975
14,975
Profit and loss reserves
4,547,726
4,415,979
Total equity
4,572,701
4,440,954
HYFORE WORKHOLDING LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 2 -

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

The financial statements were approved by the board of directors and authorised for issue on 18 April 2025 and are signed on its behalf by:
A Maher
M J Doyle
Director
Director
Company registration number 04138566 (England and Wales)
HYFORE WORKHOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
1
Accounting policies
Company information

Hyfore Workholding Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 2, 67 Blackhorse Road, Longford, Coventry, West Midlands, CV6 6DP.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 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 under the historical cost convention. The principal accounting policies adopted are set out below.

The financial statements of the company are consolidated in the financial statements of The Engineering Technology Group Holdings Limited. These consolidated financial statements are available from its registered office, Wellesbourne Distribution Park, Unit 16, Loxley Road, Wellesbourne, Warwickshire, CV35 9JY.

1.2
Going concern

Although, as anticipated at the end of 2022, activity levels for the wider group increased during 2023, due to general UK and Worldwide economic pressures, margins were inevitably squeezed. Also, because of the wider group decision to acquire additional machine stock on the back of the success of 2022 and then customers delaying making capital goods investment, cashflow management once again became the focus for the management team. Unfortunately, by the end of 2023, the Group had breached one of the financial covenants required by its bankers and as a consequence its bank loan has been shown in the Balance Sheet as at 31 December 2023 as falling due on demand due to this technical default. However, the bank has subsequently issued a waiver in relation to this breach. true

 

The Group entered the start of 2024 with a positive position however subsequent growth in sales has not been at the level anticipated, due to a combination of customers delaying purchasing decisions and the Group facing the challenges of an under-resourced sales force. Consequently, at the time of approving these financial statements, further breaches of the bank’s financial covenants have been noted and there have been additional pressures on the Group’s cash flows which continue to be managed with the support of creditors, including HMRC, and the shareholders.

HYFORE WORKHOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -

Going concern (continued)

The Directors have prepared short term cashflow forecasts and profit forecasts for the Group covering the year to 31 December 2026 and consider that these are based on attainable activity levels, despite the current uncertainty levels in the UK manufacturing sectors and the forthcoming increases in employment costs. These forecasts have been subject to sensitivity analysis to understand the possible impact should there be a slowdown in machine sales. This analysis indicates that should the Group see a very significant downturn in sales orders compared to that forecast or compared to that achieved in 2024 it would need to consider sourcing additional headroom, either through changing their working capital finance model; extension of creditor and HMRC payment terms and/or financial support from the shareholders. The Board are already positively exploring alternative working capital models which may be more appropriate to deal with the volatility in the day to day working capital requirements of the wider group which capital goods distributors typically experience. This volatility usually arises due to the quantum values associated with purchases of machinery as well as the need to hold some stock levels ready to meet customer demand. However, the value of machine order sales in the first quarter of 2025 reveals an increase over that achieved in the same period for 2024 and, based on current economic forecasts, the Directors believe that there is likely to be opportunity to see a further increase towards the end of 2025. At the time of concluding this assessment, the USA have announced the potential implementation of tariffs on goods imported to the USA. The announcements have created worldwide economic uncertainty and it is not yet possible to conclude what the future impact might be on the UK economy, particularly as changes are continuing to be announced. The Directors have reviewed the Group’s customer base to understand how many could be impacted by the imposition of significant import tariffs, primarily those connected to the UK car manufacturing sector. Whilst it is acknowledged that some are likely to be negatively impacted, the Directors also recognise that some other customers may nevertheless gain a competitive advantage over their competitors who manufacture in countries who may face the imposition of higher tariff rates than the UK.

 

Having, to date, demonstrated their ability to manage working capital whilst experiencing fluctuating sales patterns and together with their belief and confidence that appropriate funding resources will be made available for the foreseeable future and there being a return to suitable activity levels throughout 2025 and beyond, the Directors have continued to adopt the going concern basis of accounting for the preparation of these financial statements.

1.3
Turnover

Turnover represents amounts receivable for goods and services net of VAT and trade discounts.

 

Turnover is recognised on despatch of goods and completion of services.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

HYFORE WORKHOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -

Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Tangible fixed assets

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:

Land and buildings Leasehold
Over the life of the lease
Plant and machinery
10 - 20% straightline
Fixtures, fittings & equipment
25% straightline
Computer equipment
25 - 33% straightline

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.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

HYFORE WORKHOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's 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

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.

HYFORE WORKHOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 7 -
Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including 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.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

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

Current tax

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

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.

HYFORE WORKHOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 8 -

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.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the 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.

1.14
Government grants

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

HYFORE WORKHOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 9 -
1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Employees

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

2023
2022
Number
Number
Total
25
23

A portion of the overheads arising during the year for Hyfore Workholding Limited have been paid by The Engineering Technology Group Limited.

 

The proportion of these overheads which relate to Hyfore Workholding Limited and other group companies were then recharged to the respective companies at the end of the year.

 

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).

 

HYFORE WORKHOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2023
16,576
1,192,070
1,208,646
Additions
-
0
192,265
192,265
At 31 December 2023
16,576
1,384,335
1,400,911
Depreciation and impairment
At 1 January 2023
3,084
679,921
683,005
Depreciation charged in the year
331
115,892
116,223
At 31 December 2023
3,415
795,813
799,228
Carrying amount
At 31 December 2023
13,161
588,522
601,683
At 31 December 2022
13,492
512,149
525,641
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
556,073
450,359
Amounts owed by group undertakings
4,181,621
4,229,419
Other debtors
49,621
49,261
4,787,315
4,729,039
HYFORE WORKHOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
5
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
32,532
104,753
Trade creditors
417,740
333,439
Amounts owed to group undertakings
-
0
5,047
Taxation and social security
23,646
-
0
Other creditors
423,670
439,901
897,588
883,140

Included in creditors due within one year are secured creditors of £404,374 (2022 - £510,026). Hire purchase creditors totalling £103,953 (2022 - £69,649) are secured over the assets to which they relate. The bank overdraft of £32,532 (2022 - £104,754) is secured by a debenture including a fixed and floating charge of over the assets of the company and the invoice discounting facility of £267,889 (2022 - £335,623) is secured by a fixed charge over the trade debtors.

6
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
232,788
212,409

Included in creditors due in more than one year are secured creditors of £232,788 (2022 - £212,409)These creditors are secured over the assets to which they relate.

7
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
10,000
10,000
10,000
10,000
8
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.

The auditor's report is unqualified and includes the following:

HYFORE WORKHOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Audit report information
(Continued)
- 12 -
Opinion

In our opinion the financial statements:

Senior Statutory Auditor:
Wende Hubbard FCCA
Statutory Auditor:
Burgis & Bullock
Date of audit report:
18 April 2025
9
Financial commitments, guarantees and contingent liabilities

An unlimited debenture has been given by the company in favour of the group’s bankers in respect of loans and overdrafts due by group undertakings. The balance on other group companies' bank loans and overdrafts at the year end was £1,607,109 (2022 - £2,475,556)

 

A further debenture has been given by the company in respect of securing loan notes issued by the ultimate parent company to J Temple, a company director. The balance on these loan notes, including accrued interest, amounted to £500,000 (2022 - £500,000) at the year end.

 

Four of the directors have given a personal indemnity in favour of the group's bankers in respect of any potential losses on the company's invoice discounting agreement.

HYFORE WORKHOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
10
Operating lease commitments
Lessee

Operating lease payments represent rentals payable by the company for properties and motor vehicles.

 

The property lease has a term of ten years from 2019. The vehicle rentals are predominantly fixed for three years.

 

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2023
2022
£
£
Within one year
258,559
117,084
Between two and five years
641,703
312,615
In over five years
3,833
49,833
904,095
479,532
11
Related party transactions

Intercompany balances are repayable on demand.

 

The company has taken advantage of the exemption available in FRS102 whereby it has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary undertaking of the group.

12
Parent company

The largest and smallest group within which the company are consolidated is the company's ultimate holding company, The Engineering Technology Group Holdings Limited whose registered office is Wellesbourne Distribution Park, Unit 16, Loxley Road, Wellesbourne, Warwickshire, CV35 9JY.

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