Registered number:
For the Period Ended
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Horsfield Group Limited
Company Information
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Horsfield Group Limited
Contents
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Horsfield Group Limited
Group Strategic Report
For the Period Ended 30 September 2024
The directors present the group strategic report for the year ended 30 September 2024.
As shown in the statement of comprehensive income on page 13 the group’s loss before tax was £181k. The group's EBITDA was £621k. This included an amortisation charge of £421k following the acquisition of Swallow Holdings Limited and its subsidiaries on the 24 May 2024, detailed in note 13. The group’s turnover for the 18 weeks following acquisition was £10.90m.
This year has seen a consolidation of efficiency and cost cutting measures taken in order to restore reasonable levels of profitability to the business after the impacts of the pandemic and the significant rate of input cost rises in the last year. The statement of financial position on page 14 shows the group’s financial position at the year end in a positive net asset position. The group has a strong base of owned and long leasehold commercial property from which it operates, positive net current assets and good liquidity. The group continues to invest in its online retail trading platform for delivery of dairy, convenience and grocery products to residential customers in the North West and this remains a priority area for activity and investment for the future due to strong sales performance in this market segment due to a desire among consumers for both convenience and authentic local goods delivered to their homes. Environmental concerns over single use plastic & climate change is still encouraging a switch back to locally sourced, wholesome food operating in the circular economy with washable and re-useable glass bottles. The group will continue to make considerable investments in new dairy equipment and fleet vehicles of both HGVs and electric vehicles to enhance fuel, carbon and financial efficiency and reliability. The group has continued to source the majority of its raw milk requirements from selected high quality farms in the North West, particularly in Cheshire. Our online grocery is underpinned by strong relationships with high quality local providers of meat, fish, bakery, fruit and vegetable products. This strengthens our position with customers as a high quality supplier of genuine local produce with strong links to our farmer and local suppliers and low food miles.
Input cost price inflation especially in raw materials, wages, energy and transport costs, particularly driven by Government policy such as the employers National Insurance and National Minimum Wage increase and Net Zero requirements has become and will remain a key risk and uncertainty in the year ahead. We shall continue to monitor, review and act upon the pass through of cost increases.
A return to heavy discounting of milk by the major and minor multiple retailers and other milk delivery companies to win custom in the ‘cost of living crisis’ may lead to margin compression and loss of sales volume. The company will address this by remaining environmentally and price competitive for a delivered product with strong local provenance and high quality, in many cases in a reusable glass container, and appeal to those consumers who value these characteristics and are willing to pay for them, particularly through reaching a wider audience in Greater Manchester and Cheshire with its online platform. We encourage customers of our traditional offline delivery service to switch to online where appropriate as it delivers enhanced customer interaction, service and cash collection benefits. We will also continue to invest in the marketing of our “Best of Local” product range sold via the online platform which comprises high quality butcher, baker, fishmonger, cheese and staple green grocer products. We have seen the online business engage a new customer demographic compared to our traditional doorstep business. Glass bottled milk particularly via our online platform and our Bottled Milk Buyers continues to be very popular. We are also investing generally in our website, apps, IT infrastructure, software and staff training and awareness to constantly improve our productivity, financial control, cyber security and regulatory compliance.
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Horsfield Group Limited
Group Strategic Report (continued)
For the Period Ended 30 September 2024
Principal risks and uncertainties (continued)
We also aim to retain and grow milk sales volumes in the wholesale, middle ground and contract packing segments which gives breadth and depth to our business model. On contract packing we continue to have significant manufacturing commitments for some specialist milk such as barista milk. We also produce our own organic fresh milks and orange juice in glass bottles. Creditworthiness of our customers remains a risk. However, the company has a very diverse and well spread customer base and the company actively manages its debtors to keep risk exposure to acceptable levels and to follow up on slow or non-payment. Our bad debt provision and write off levels remain very low. The group’s revenues and costs derive entirely inside the UK (and principally the North West of England) so with the exception of the impact of world markets on the UK price of raw milk, cream, packaging materials, energy and fuel it is largely domestically focused. A safe working and operating environment for all our staff, customers, contractors and suppliers is of the utmost importance to the board of directors and to that end they have put in place policies, procedures, management and systems to plan, analyse, monitor and act on all aspects of health and safety within the business from farm collections of milk, through to production, logistics and fleet management, customer deliveries and administration. The Board have appointed a suitably qualified Health & Safety Manager and personally supervise regular meetings with the management of the company who have responsibility for operational health and safety. We seek to support, train and listen to our staff and conduct occasional employee engagement surveys and follow up with initiatives to meet any concerns raised. The group also takes its corporate and social responsibility seriously. It is a member of the Dairy Energy Savings Scheme, has completed its ESOS assessments and will continue to invest in energy saving measures. We include carbon accounting data in our accounts and are putting in place the measures to enable accurate recording and calculation of carbon usage by the business and plans to reduce it to zero over the medium and long term within national frameworks. We work with our packaging and other suppliers to find ways of reducing the amount of packaging materials used in our packing operations and comply with the requirements of the Plastic Packaging Tax and Extended Producer Packaging Obligations. Our poly bottle supplier uses a significant amount (30%) of recyclate in the bottles which are themselves fully recyclable through the normal council recycling system. We have moved to white poly bottle tops to further facilitate recycling of this element of our packaging. Our widespread and growing use of washable reusable glass bottles and electric delivery vehicles means we have long led the way in sustainable food delivery systems and are benefitting from the trend towards reusable glass for milk. The company is also a generous charitable donor, on its own account, supporting charities involved in the improvement of the lives of young people in Manchester and its environs such as The Message and Cre8, and also through its customer lottery scheme which regularly supports numerous worthy local charities such as Francis House Children’s Hospice, Joshua Tree and St Ann’s Hospice. We remain vigilant and prepared for any return to pandemic restrictions. The company has taken the necessary steps to continue its operations as an essential service supplying milk and groceries to customers throughout the Covid-19 pandemic and can do so again if required.
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Horsfield Group Limited
Group Strategic Report (continued)
For the Period Ended 30 September 2024
The key financial performance indicators are as follows:
Section 172(1) Statement The directors of Horsfield Group Limited are responsible for overseeing the operations and strategic direction of the Horsfield Group and are committed to fulfilling their duties under Section 172 of the Companies Act 2006. In performing their responsibilities, the directors have had regard to the interests of the company’s key stakeholders, including shareholders, subsidiary companies, regulators, and other relevant parties. Stakeholder Considerations in Decision-Making As a holding company, Horsfield Group Limited does not have direct employees or external customers, but it plays a vital role in supporting and overseeing its subsidiaries and principally in the appointment of Directors and the allocation of capital within the Group’s subsidiaries. The directors engage with the management teams of subsidiary companies to ensure that strategic decisions align with the group’s long-term objectives and the interests of shareholders. As its two ordinary shareholders are both directors of Horsfield Group Limited there is a very close alignment of shareholder goals with the direction of the Group holding company. The board regularly considers:
∙The financial performance and capital requirements of subsidiary companies, ensuring appropriate funding and governance structures.
∙The distribution of profits through dividends and reinvestment decisions to promote sustainable long-term growth.
∙The regulatory and legal frameworks in which the group operates, ensuring compliance with all relevant obligations.
∙The environmental, social, and governance (ESG) responsibilities of the group as a whole.
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Horsfield Group Limited
Group Strategic Report (continued)
For the Period Ended 30 September 2024
Long-Term Success & Governance The directors are committed to promoting the long-term success of the company and the group. Regular board meetings provide a forum to review strategic initiatives, assess risk management processes, and monitor financial performance at both the holding and subsidiary levels. The company also engages with external advisers such as accountants, insurance brokers and lawyers where necessary to ensure robust governance, risk management and compliance. During the financial year, the board has considered a range of key decisions, including the acquisition of Swallow Holdings Limited by way of share exchange, restructuring of the ownership and voting structure of the company and the issuing of preference shares in exchange for the ordinary shares of certain minority shareholders and overall dividend policy, ensuring they are made in the best interests of shareholders and the wider group. The directors are satisfied that they have acted in accordance with their duties under Section 172 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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Horsfield Group Limited
Directors' Report
For the Period Ended 30 September 2024
The directors present their report and the financial statements for the period ended 30 September 2024.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to 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.
The loss for the period, after taxation, amounted to £393,037.
The directors do not recommend payment of a final dividend.
The directors who served during the period were:
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Horsfield Group Limited
Directors' Report (continued)
For the Period Ended 30 September 2024
The business remains well set to benefit from its diverse and solid customer base and its large and dense potential market for customers using a technology led approach to connecting with and serving them which yields regular repeat custom and the ability to sell a diverse range of products. It has low cost, strategically well positioned and well invested manufacturing and distribution facilities in Manchester, Stockport, Warrington and Kendal.
In the early part of the 2024-25 financial year the company acquired dairy depots in Chester and the Wirral of a similar scale and nature to those it already operates in Stockport and Warrington which will profitably expand both sales revenue and our geographic footprint for the provision of our goods and services. We will continue to bid for further profitable business using our available production and distribution capacity and in particular will invest in and market heavily to residential consumers our online milk and convenience and “Best of Local” grocery offering in the year ahead. We will also seek to grow sales of our own produced product range of fresh, organic, specialist milks and orange juice. The directors consider the company to be in a strong financial position and plan to expand the company’s operations by organic growth and acquisition of further business if the opportunity presents itself in the future.
The group places considerable value on the involvement of its employees and has continued its existing practice of keeping them informed on matters affecting them as employees and on various matters affecting the performance of the group. In particular the group will involve employees in developing a strong health and safety culture by creating opportunities for them to easily communicate concerns and ideas about how to improve the company's performance in this area.
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Horsfield Group Limited
Directors' Report (continued)
For the Period Ended 30 September 2024
Carbon and energy performance is overseen by the operations and finance teams, with board-level engagement as part of strategic ESG initiatives.
In calculating the company’s energy consumption, the directors have followed the 2024 UK Government GHG Conversion Factors for Company Reporting. Figures are based upon metering information and quantities purchased during the period.
All figures relate to the UK for the period 1 October 2023 to 30 September 2024.
This is the group’s first year of SECR reporting, and these figures will form the baseline for monitoring carbon reduction progress in future years. Although Creamline Dairies Limited was acquired part-way through the financial year, it is the only trading entity in the group. Accordingly, full-year turnover and production figures have been used in the intensity metrics to align with the energy data, which also reflects a full-year period. Refrigerant emissions and Scope 3 emissions have been excluded from this year’s report due to data availability and immateriality considerations. The company intends to assess the relevance of these sources and the feasibility of including them in future reporting periods.
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Horsfield Group Limited
Directors' Report (continued)
For the Period Ended 30 September 2024
Carbon Reduction Projects
Our upcoming projects will include:
∙Moving to 100% renewable electricity supply (in 2025)
∙We are looking into changing our operations to reduce the amount of waste generated
∙Increase our use of electric vehicles
∙Work with main suppliers to jointly reduce our carbon footprint
∙Acquire more energy efficient equipment/machinery
∙Modernisation of ICE fleet vehicles
∙We are in the process of changing all of our lights to LEDs and will start to install censored lighting
∙We have changed our poly bottle caps to clear caps which are easier to recycle than coloured ones
∙Continue to improve our production and transportation process to become more efficient
Post balance sheet events have been disclosed in the future developments section of the directors report. There have been no other significant events affecting the Group since the year end.
The auditors, Hurst Accountants Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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Horsfield Group Limited
Independent Auditors' Report to the Members of Horsfield Group Limited
We have audited the financial statements of Horsfield Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the period ended 30 September 2024, which comprise the Group statement of comprehensive income, the Group and company statements of financial position, the Group statement of cash flows, the analysis of net debt, the Group and company statement of changes in equity and the related notes, 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).
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 United Kingdom, including the Financial Reporting Council'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.
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 or 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.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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Horsfield Group Limited
Independent Auditors' Report to the Members of Horsfield Group Limited (continued)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group Strategic Report and the Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
∙the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
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 Directors' Report.
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Horsfield Group Limited
Independent Auditors' Report to the Members of Horsfield Group Limited (continued)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Identifying and assessing potential risks related to irregularities
In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
∙The nature of the industry and sector in which the company operates; the control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets.
∙The outcome of enquiries of local management and parent company management, including whether management was aware of any instances of non-compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged fraud.
∙Supporting documentation relating to the Company's policies and procedures for:
- Identifying, evaluating, and complying with laws and regulations.
- Detecting and responding to the risks of fraud
∙The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
∙The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
∙The legal and regulatory framework in which the Company operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or which had a fundamental effect on the operations of the Company, including General Data Protection requirements, Anti-bribery and Corruption, food standards and waste standards compliance.
Audit response to risks identified
Our procedures to respond to the risks identified included the following:
∙Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements.
∙Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud.
∙Evaluation the operating effectiveness of management’s controls designed to prevent and detect irregularities.
∙Enquiring of management about any actual and potential litigation and claims.
∙Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud.
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Horsfield Group Limited
Independent Auditors' Report to the Members of Horsfield Group Limited (continued)
We have also considered the risk of fraud through management override of controls by:
∙Testing the appropriateness of journal entries and other adjustments, and identifying accounting transactions which may pose a heightened risk of material misstatement, whether due to fraud or error.
∙Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and
∙Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
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 Auditors' Report.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditors
3 Stockport Exchange
Cheshire
SK1 3GG
2 May 2025
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Horsfield Group Limited
Consolidated Statement of Comprehensive Income
For the Period Ended 30 September 2024
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Horsfield Group Limited
Registered number: 15157762
Consolidated Statement of Financial Position
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 20 to 40 form part of these financial statements.
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Horsfield Group Limited
Registered number: 15157762
Company Statement of Financial Position
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 20 to 40 form part of these financial statements.
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Horsfield Group Limited
Consolidated Statement of Changes in Equity
For the Period Ended 30 September 2024
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Horsfield Group Limited
Company Statement of Changes in Equity
For the Period Ended 30 September 2024
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Horsfield Group Limited
Consolidated Statement of Cash Flows
For the Period Ended 30 September 2024
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Horsfield Group Limited
Consolidated Statement of Cash Flows (continued)
For the Period Ended 30 September 2024
Consolidated Analysis of Net Debt
For the Period Ended 30 September 2024
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Horsfield Group Limited
Notes to the Financial Statements
For the Period Ended 30 September 2024
Horsfield Group Limited is a private company limited by share capital, incorporated in England, registered number 02979029. The address of the registered office and principal place of business is Mellors Road, Trafford Park, Manchester, M17 1PB. The company was incorporated on 23 September 2023 and started trading on the 24 May 2024, when it acquired Swallow Holdings and its subsidiaries. Therefore the financial statements reflect 18 weeks of trading.
The principal activity of the company is acting as a holding company. The nature of the group's operations and principal activities is the retail and wholesale of milk, dairy and grocery products.
2.Accounting policies
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires group management to exercise judgement in applying the group's accounting policies (see note 3). The parent company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own statement of comprehensive income in these financial statements. The group has also taken the exemption not to present the cash flow statement or net debt reconciliation for the parent company. The following principal accounting policies have been applied:
The consolidated financial statements present the results of the group and its own subsidiaries ("the group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
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Horsfield Group Limited
Notes to the Financial Statements
For the Period Ended 30 September 2024
2.Accounting policies (continued)
Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the consolidated statement of comprehensive income over its useful economic life. Other intangible assets Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
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Horsfield Group Limited
Notes to the Financial Statements
For the Period Ended 30 September 2024
2.Accounting policies (continued)
Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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 in profit or loss.
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Horsfield Group Limited
Notes to the Financial Statements
For the Period Ended 30 September 2024
2.Accounting policies (continued)
The group only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate, which is an approximation of the amount that the group would receive for the asset if it were to be sold at the reporting date. Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is an 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.
Expenditure relating to the development of software used within the business is capitalised as an intangible fixed asset and amortised on a straight line basis over the estimated useful life. Associated sundry costs are recognised in profit or loss in the period they are incurred.
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Horsfield Group Limited
Notes to the Financial Statements
For the Period Ended 30 September 2024
2.Accounting policies (continued)
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Horsfield Group Limited
Notes to the Financial Statements
For the Period Ended 30 September 2024
2.Accounting policies (continued)
Amortisation of Goodwill Goodwill is being amortised over its estimated useful economic life. The carrying amount of goodwill as at the balance sheet date was £12,201,323. The total amortisation charge for the period was £427,407. Management has determined the useful economic life of goodwill arising from acquisitions based on their assessment of the period over which the acquired businesses are expected to generate positive cash flows. Goodwill arising from the acquisition of various local businesses is being amortised over five years, reflecting management’s judgement of the expected retention period of customer relationships and the durability of the brand value in those markets. Goodwill arising from the acquisition of Swallow Holdings Limited and its subsidiary Creamline Dairies Limited is being amortised over ten years. Management considers this to be appropriate based on the long-term strategic value and stability of Creamline Dairies Limited's operations.
The whole of the turnover is attributable to the group's principal activity wholly undertaken in the UK.
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Horsfield Group Limited
Notes to the Financial Statements
For the Period Ended 30 September 2024
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Horsfield Group Limited
Notes to the Financial Statements
For the Period Ended 30 September 2024
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Horsfield Group Limited
Notes to the Financial Statements
For the Period Ended 30 September 2024
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Horsfield Group Limited
Notes to the Financial Statements
For the Period Ended 30 September 2024
12.Taxation (continued)
There were no factors that may affect future tax charges.
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Horsfield Group Limited
Notes to the Financial Statements
For the Period Ended 30 September 2024
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Horsfield Group Limited
Notes to the Financial Statements
For the Period Ended 30 September 2024
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Horsfield Group Limited
Notes to the Financial Statements
For the Period Ended 30 September 2024
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Horsfield Group Limited
Notes to the Financial Statements
For the Period Ended 30 September 2024
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Horsfield Group Limited
Notes to the Financial Statements
For the Period Ended 30 September 2024
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Horsfield Group Limited
Notes to the Financial Statements
For the Period Ended 30 September 2024
Net obligations under hire purchase contracts are secured against the assets to which they relate.
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Horsfield Group Limited
Notes to the Financial Statements
For the Period Ended 30 September 2024
23.Deferred taxation (continued)
The Company was incorporated on 23 September 2023, with 1 Ordinary share of nominal value £1.
On 24 May 2024 the Company issued 6,250 A ordinary shares, 8,750 B ordinary shares and 6,199,998 preference shares in consideration for the transfer of the entire issued share capital of Swallow Holdings Limited, in accordance with the terms of a share purchase agreement. All shares issued have a nominal value of £1 each. The A ordinary and B ordinary shares rank pari passu. The preference shares are classified as debt as the Company is obliged to pay a fixed dividend at 3.5% above base rate, they hold no voting rights and the holders have priority over equity shareholders in receiving their fixed dividend on winding up.
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Horsfield Group Limited
Notes to the Financial Statements
For the Period Ended 30 September 2024
Profit and loss account
The acquisition of Swallow Holdings Limited has been accounted for using the acquisition method in accordance with FRS 102. The identifiable assets and liabilities of the acquired entities were assessed for fair value at the acquisition date, and in these cases, the book values were deemed to approximate their fair values. Any excess consideration has been recognised as goodwill.
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Horsfield Group Limited
Notes to the Financial Statements
For the Period Ended 30 September 2024
26.Business combinations (continued)
The group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £65,873. Contributions totalling £19,441 were payable to the fund at the balance sheet date and are included in creditors.
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Horsfield Group Limited
Notes to the Financial Statements
For the Period Ended 30 September 2024
Page 39
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Horsfield Group Limited
Notes to the Financial Statements
For the Period Ended 30 September 2024
The group is under the control of C Swallow by virtue of his majority shareholding.
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