Company registration number 10455878 (England and Wales)
ROY HATFIELD (HOLDINGS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
ROY HATFIELD (HOLDINGS) LIMITED
COMPANY INFORMATION
Directors
Mr R Hatfield
Mr M R Hatfield
Ms M Hatfield
Mr G E Hatfield
Mr I C Beat
(Appointed 10 June 2024)
Company number
10455878
Registered office
Roy Hatfield Ltd
Fullerton Road
Rotherham
United Kingdom
S601DH
Auditor
BHP LLP
New Chartford House
Centurion Way
Cleckheaton
Bradford
West Yorkshire
BD19 3QB
ROY HATFIELD (HOLDINGS) LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 6
Independent auditor's report
7 - 9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 34
ROY HATFIELD (HOLDINGS) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 1 -

The directors present their strategic report of the company and the group for the year ended 31 October 2024.

REVIEW OF BUSINESS

During the year ended 31 October 2024 the group generated sales of £63.1m which were 11.4% higher than the £56.7m achieved in the previous financial year. Profit before taxation was £6.3m compared to £5.6m in the previous financial year. The increase in turnover and profitability was largely driven by volume increases together with production efficiencies during the year.

 

The group monitors its financial performance through key performance indicators, which are as follows:

 

 

 

2024

 

2023

Turnover (£)

 

63,115,489

 

56,665,699

Operating Profit (£)

 

7,400,740

 

6,136,541

Profit before taxation (£)

 

6,263,264

 

5,640,100

 

 

 

 

 

Gross profit (%)

 

15.99

 

15.77

Net profit (%)

 

7.52

 

7.91

Return on capital employed (%)

 

27.32

 

26.47

 

 

 

 

 

Current ratio

 

2.10

 

1.89

Acid test ratio

 

1.26

 

1.31

Cash ratio

 

0.60

 

0.66

Debt to equity ratio

 

0.78

 

0.96

Interest coverage

 

6.04

 

9.77

 

The directors are pleased with the group’s financial performance during the year despite the significant issues and uncertainties around the economy and market conditions. The group is well placed to withstand any future adverse events.

PRINCIPAL RISKS AND UNCERTAINTIES

The group has a comprehensive system of risk management to enable the board to identify, evaluate and manage potential risks and uncertainties that could have a material impact on the company's performance.

 

The main risks under the period of review are summarised below:

 

Commodity price risk

The group is exposed to commodity price volatility. This is managed by regular monitoring of selling and purchase prices and where appropriate utilisation of appropriate hedging instruments.

 

Credit risk

The group trades only with recognised and creditworthy parties. It is the group's policy that all customers who wish to trade on credit terms are subject to credit vetting procedures and that payment terms are rigorously enforced. In addition, the company has in place trade credit insurance policies which offer additional protection.

 

Currency risk

The group is exposed to transaction foreign exchange risk. Transaction risk is managed by the use of forward currency contracts.

ROY HATFIELD (HOLDINGS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 2 -
SECTION 172(2-1) STATEMENT

The board acknowledges its responsibility and consider they have acted in good faith, and in a way most likely to promote the success of the company for the benefit of its members and stakeholders. In doing this, section 172(1) requires directors to have regard for the following six factors;

 

Likely consequences of any decisions in the long term

The group has an annual budget and a three year plan which is reviewed regularly to benchmark performance and achievements against it’s long term strategy. The board then considers the outlook for the entire group and the opportunities to create, deliver and realise value for its members and stakeholders.

 

Interests of the company’s employees

The group recognises that employee engagement, development and satisfaction are key to building a successful business. To achieve this, the group has adopted several policies aimed at recruiting, training and rewarding employees.

 

Need to foster the group’s business relationships with suppliers, customers and others

The group recognises the need to maintain a supply chain that adheres to and is aligned with our environmental, social and commercial objectives and policies. The group is committed to carrying out dealings with customers, suppliers and stakeholders in a fair, open and honest manner. It is also committed to complying with all legislative and regulatory requirements that are relevant to its business activities in all jurisdictions.

 

Impact of the group’s operations on the community and the environment

The group takes its responsibility within the community and wider environment seriously. The group takes a proactive approach to health and safety, and the environment. It is committed to the highest possible standards along with the minimisation of adverse environmental impacts. The group publishes its Greenhouse Gas (GHG) emissions in the group strategic report.

 

Reputation for a high standard of business conduct

The group is committed to maintaining high standards of corporate governance and annually undertakes a self-assessment performance review.

 

Need to act fairly between members of the company

An important role of the board is to represent and promote the interests of the members as well as being accountable to them for the performance and activities of the group. This is done through regular company board meetings which are held throughout the year along with participation from other senior employees.

ROY HATFIELD (HOLDINGS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 3 -

ENVIRONMENTAL POLICY

The board acknowledges that environmental protection is one of its business responsibilities. The group aims to minimise the environmental impact of its operations by complying with or exceeding its obligations under all relevant environmental legislation, considering full compliance to be the minimum acceptable level of performance. The group routinely assesses the environmental impact of all its operations and aims to reduce (and eliminate wherever practical) waste, the consumption of resources and pollution of the environment. The group is committed to the conservation of energy, water and natural resources through increased efficiency and the introduction of new technologies. In February 2022 the group in recognition of our Environmental Management System was awarded ISO 14001. The group commits sufficient staff and resources to ensure that these objectives are met and continuously monitors performance. All subsequent independent system audits have been satisfactory.

 

In November 2021 the group began recording energy and fuel usage across all areas of the business based on supplier invoices received so that we can measure and report our Greenhouse Gas (GHG) emissions. The methodology used to define the scope and calculate Co2 emissions was the GHG Protocol Corporate Accounting and Reporting Standard. Under GHG protocols we report Scope 1 and 2 emissions. Scope 1 being direct emissions that result from activities within control of the group and Scope 2 which result from indirect emissions which the group have no direct control of but accept by using the energy we are indirectly responsible for the release of Co2. The conversion factors used are those published by the UK government (Department for Business, Energy & Industrial Strategy).

 

The overall energy consumption of the group was calculated to be:

 

Energy usage (kWh)

 

2024

2023

Change

% change

Electricity

 

380,442

366,191

14,251

3.89%

Gas

 

30,197

23,529

6,668

28.34%

Total

 

410,639

389,720

20,919

5.37%

 

 

 

 

 

 

Energy usage (kg CO2e)

 

 

 

 

 

Gas Oil

 

516,253

360,246

156,007

43.31%

Transport diesel

 

305,301

311,638

(6,337)

(2.03%)

Total

 

821,554

671,884

149,670

22.28%

 

The overall Co2 emissions based on the energy consumption for the group was calculated to be 692 tonnes and in accordance with the reporting standard Scope 1 and 2 GHG emissions are:

 

CO2e (tonnes)

 

2024

2023

Change

% change

Scope 1 (direct emissions)

 

828

677

151

22.26%

Scope 2 (indirect emissions)

 

79

75

4

5.03%

Total

 

906

752

154

20.54%

 

The following expresses our annual emissions in relation to quantifiable factors associated with our activities.

 

Average emissions per employee

 

2024

2023

Change

% change

Emissions reported per employee

 

15

16

(1)

(8.62%)

 

 

The group has established metrics and targets for reducing emissions over the next financial year.

ROY HATFIELD (HOLDINGS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 4 -

SOCIAL POLICY

The board acknowledges that its people are its most important resource and consequently strives to adopt human resource policies, practices and procedures that provide its employees with a good working environment, equitable compensation and benefits as well as the opportunity to be recognised on the basis of merit and develop their career in line with their ability and potential.

 

The group through sponsorship, charities and clubs donated £14,727 during the year ended 31 October 2024 compared to £9,385 in the previous financial year. The group supports a local charity which offers support to adults who are homeless or at risk of becoming homeless and where practical the endeavours to offer suitable employment opportunities. For several years, many employees have given their time to work alongside the charity at busy times of the year. In addition, the group offers support to a local food bank through both direct monthly donations and one off financial contribution. During the year the group donated £6,620 compared to £3,900 in the previous financial year.

 

HEALTH AND SAFETY

The board acknowledges that safeguarding the health and safety of employees is integral to its business success and aims to create a working environment that assures this. To fulfil these commitments the group recognises that it must have a risk informed and engaged workforce that fully accepts the health and safety responsibilities of their role within the business, in turn the business is committed to providing leadership and all necessary training. In February 2022 the group in recognition of our Health and Safety Management System was awarded ISO 45001. The group commits sufficient staff and resources to ensure that these objectives are met and continuously monitors performance. All subsequent independent system audits have been satisfactory.

 

GOVERNANCE

The board is committed to maintaining high standards of corporate governance and in February 2022 the group retained ISO 9001 which recognises our Quality Management System. The group commits sufficient staff and resources to ensure that these objectives are met and continuously monitors performance. All subsequent independent system audits have been satisfactory.

 

SUPPLIERS

The group is a signatory of The Prompt Payment Code (PPC) which set standards for payment practices and is administered by the Office of the Small Business Commissioner (OSBC) on behalf of BEIS.

 

SUSTAINABILITY

The board acknowledges that sustainability is one of its business responsibilities. In 2023, the group had its sustainability management system assessed by EcoVadis. EcoVadis operate an evidence based platform which focuses on four themes, Environment, Labour & Human Rights, Ethics and Sustainable Procurement, which provide a sustainability rating and an assessment of ESG performance. The outcome of the assessment saw the group being awarded a Silver medal with a sustainability rating of 60% and being ranked in the 81st percentile. We are continuing to improve on this by working with external consultants with an ultimate aim of reaching a higher standard.

 

SUBSEQUENT EVENTS AND FUTURE DEVELOPMENTS

There have been no events to the date of this report which have materially affected the group.

On behalf of the board

Mr M R Hatfield
Director
12 May 2025
ROY HATFIELD (HOLDINGS) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 5 -

The directors present their annual report and financial statements for the year ended 31 October 2024.

Principal activities

The principal activity of the company and group continued to be that of processing and distribution of metals, minerals and solid fuels, recycling of plasterboard and waste brokerage.

Results and dividends

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £723,395. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr C S Lambert
(Resigned 7 June 2024)
Mr R Hatfield
Mr M R Hatfield
Ms M Hatfield
Mr G E Hatfield
Mr I C Beat
(Appointed 10 June 2024)
Auditor

BHP LLP were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

ROY HATFIELD (HOLDINGS) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 6 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Mr M R Hatfield
Director
12 May 2025
ROY HATFIELD (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ROY HATFIELD (HOLDINGS) LIMITED
- 7 -
Opinion

We have audited the financial statements of Roy Hatfield (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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 other information comprises the information included in the annual report other than the financial statements and our auditor's 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

ROY HATFIELD (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ROY HATFIELD (HOLDINGS) LIMITED
- 8 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 is 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 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 an auditor's 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 financial statements.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

ROY HATFIELD (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ROY HATFIELD (HOLDINGS) LIMITED
- 9 -

We assessed the susceptibility of the group’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by;

 

 

To address the risks of fraud through management bias and override controls, we:

 

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the director’s and other management and the inspection of regulatory and legal correspondence.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 an auditor's 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.

Jamie Williams (Senior Statutory Auditor)
For and on behalf of BHP LLP, Statutory Auditor
Chartered Accountants
New Chartford House
Centurion Way
Cleckheaton
Bradford
West Yorkshire
BD19 3QB
12 May 2025
ROY HATFIELD (HOLDINGS) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024
- 10 -
2024
2023
as restated
Notes
£
£
Turnover
3
63,115,489
56,665,699
Cost of sales
(53,024,956)
(47,729,482)
Gross profit
10,090,533
8,936,217
Administrative expenses
(2,689,793)
(2,799,678)
Operating profit
4
7,400,740
6,136,539
Interest receivable and similar income
8
87,318
131,465
Interest payable and similar expenses
9
(1,224,794)
(627,904)
Profit before taxation
6,263,264
5,640,100
Tax on profit
10
(1,514,716)
(1,158,405)
Profit for the financial year
4,748,548
4,481,695
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
ROY HATFIELD (HOLDINGS) LIMITED
GROUP BALANCE SHEET
AS AT
31 OCTOBER 2024
31 October 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
8,129
8,579
Tangible assets
13
5,129,276
4,667,659
5,137,405
4,676,238
Current assets
Stocks
16
16,758,759
12,145,623
Debtors
17
13,104,957
13,485,019
Cash at bank and in hand
12,089,460
13,578,586
41,953,176
39,209,228
Creditors: amounts falling due within one year
18
(20,003,510)
(20,706,475)
Net current assets
21,949,666
18,502,753
Total assets less current liabilities
27,087,071
23,178,991
Creditors: amounts falling due after more than one year
19
(565,719)
(770,440)
Provisions for liabilities
Deferred tax liability
22
927,400
839,752
(927,400)
(839,752)
Net assets
25,593,952
21,568,799
Capital and reserves
Called up share capital
24
175,268
175,268
Capital redemption reserve
25
15,240
15,240
Profit and loss reserves
25,403,444
21,378,291
Total equity
25,593,952
21,568,799
The financial statements were approved by the board of directors and authorised for issue on 12 May 2025 and are signed on its behalf by:
12 May 2025
Mr M R Hatfield
Director
Company registration number 10455878 (England and Wales)
ROY HATFIELD (HOLDINGS) LIMITED
COMPANY BALANCE SHEET
AS AT 31 OCTOBER 2024
31 October 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
1,192,915
1,220,929
Investments
14
176,368
176,368
1,369,283
1,397,297
Current assets
Debtors
17
10,117,995
10,899,512
Cash at bank and in hand
68,439
522,212
10,186,434
11,421,724
Creditors: amounts falling due within one year
18
(10,880,192)
(11,503,851)
Net current liabilities
(693,758)
(82,127)
Net assets
675,525
1,315,170
Capital and reserves
Called up share capital
24
175,268
175,268
Profit and loss reserves
500,257
1,139,902
Total equity
675,525
1,315,170

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £83,750 (2023 - £49,664 profit).

The financial statements were approved by the board of directors and authorised for issue on 12 May 2025 and are signed on its behalf by:
12 May 2025
Mr M R Hatfield
Director
Company registration number 10455878 (England and Wales)
ROY HATFIELD (HOLDINGS) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 13 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 November 2022
175,268
15,240
17,728,172
17,918,680
Year ended 31 October 2023:
Profit and total comprehensive income
-
-
4,481,695
4,481,695
Dividends
11
-
-
(831,576)
(831,576)
Balance at 31 October 2023
175,268
15,240
21,378,291
21,568,799
Year ended 31 October 2024:
Profit and total comprehensive income
-
-
4,748,548
4,748,548
Dividends
11
-
-
(723,395)
(723,395)
Balance at 31 October 2024
175,268
15,240
25,403,444
25,593,952
ROY HATFIELD (HOLDINGS) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 November 2022
175,268
1,921,814
2,097,082
Year ended 31 October 2023:
Profit and total comprehensive income for the year
-
49,664
49,664
Dividends
11
-
(831,576)
(831,576)
Balance at 31 October 2023
175,268
1,139,902
1,315,170
Year ended 31 October 2024:
Profit and total comprehensive income
-
83,750
83,750
Dividends
11
-
(723,395)
(723,395)
Balance at 31 October 2024
175,268
500,257
675,525
ROY HATFIELD (HOLDINGS) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
31
4,550,764
(4,564,996)
Interest paid
(1,224,794)
(627,904)
Income taxes paid
(1,363,358)
(268,674)
Net cash inflow/(outflow) from operating activities
1,962,612
(5,461,574)
Investing activities
Purchase of intangible assets
-
(135)
Purchase of tangible fixed assets
(1,027,580)
(1,038,870)
Proceeds from disposal of tangible fixed assets
16,000
56,055
Interest received
87,318
131,465
Net cash used in investing activities
(924,262)
(851,485)
Financing activities
Movement on directors' loan
5,651
(529,235)
Proceeds from new bank loans
-
11,500,000
Repayment of bank loans
(1,000,000)
-
Payment of finance leases obligations
(809,157)
(583,839)
Dividends paid to equity shareholders
(723,395)
(831,576)
Net cash (used in)/generated from financing activities
(2,526,901)
9,555,350
Net (decrease)/increase in cash and cash equivalents
(1,488,551)
3,242,291
Cash and cash equivalents at beginning of year
13,578,011
10,335,720
Cash and cash equivalents at end of year
12,089,460
13,578,011
Relating to:
Cash at bank and in hand
12,089,460
13,578,586
Bank overdrafts included in creditors payable within one year
-
(575)
ROY HATFIELD (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 16 -
1
Accounting policies
Company information

Roy Hatfield (Holdings) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Roy Hatfield Ltd, Fullerton Road, Rotherham, England, S60 1DH.

 

The group consists of Roy Hatfield (Holdings) Limited and all of its subsidiaries.

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.

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 company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

ROY HATFIELD (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 17 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Roy Hatfield (Holdings) Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 October 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future.

 

The directors have prepared cashflows and forecasts which cover a period of at least 12 months from the signing date of these financial statements. The forecasts show that the group can meet all of its obligations as they fall due in this period.

 

Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

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

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.

Revenue from the provision of services is recognised by reference to work performed. Revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.6
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Patents & licences
20 years
ROY HATFIELD (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 18 -
1.7
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:

Freehold land and buildings
2% on cost
Plant and equipment
15% - 50% reducing balance
Fixtures and fittings
5 years straight line
Computers
3 years straight line
Motor vehicles
25% reducing balance

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 recognised in the profit and loss account.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

ROY HATFIELD (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 19 -

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.

1.10
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.

1.11
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.

1.12
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

ROY HATFIELD (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 20 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 group 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

ROY HATFIELD (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 21 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group 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 group.

1.14
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 group’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.

 

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 if, and only if, there is 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.

1.15
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.

1.16
Retirement benefits

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

ROY HATFIELD (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 22 -
1.17
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 leased asset are consumed.

1.18
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
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Fixed asset depreciation

Tangible fixed assets are depreciated over their useful economic life. Calculation of the useful economic life of assets is considered a key area of judgement due to the value present in the accounts.

Stock provision

Stock is valued at the lower cost and net realisable value. New realisable value includes, where necessary, provisions for differences in quality and quantity of coal. Calculation of these provisions requires judgements to be made, which include stock loss trends and stock count differences.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
63,115,489
56,665,699
ROY HATFIELD (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
3
Turnover and other revenue
(Continued)
- 23 -
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
62,918,348
55,994,440
Europe
-
671,259
India
197,141
-
63,115,489
56,665,699
2024
2023
£
£
Other revenue
Interest income
87,318
131,465
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(264,801)
(147,072)
Depreciation of owned tangible fixed assets
267,744
334,168
Depreciation of tangible fixed assets held under finance leases
728,037
429,437
Loss on disposal of tangible fixed assets
12,182
6,880
Amortisation of intangible assets
450
411
Operating lease charges
113,091
61,909
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
8,720
-
Audit of the financial statements of the company's subsidiaries
53,765
9,400
62,485
9,400
For other services
Taxation compliance services
1,500
-
All other non-audit services
7,100
8,950
8,600
8,950
ROY HATFIELD (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 24 -
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Direct staff
43
24
-
-
Admin staff
14
12
-
-
Directors
5
11
6
5
Total
62
47
6
5

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
2,581,413
1,879,016
-
0
-
0
Social security costs
233,930
238,206
-
-
Pension costs
246,734
405,935
-
0
-
0
3,062,077
2,523,157
-
0
-
0
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
191,114
258,426
Company pension contributions to defined contribution schemes
150,977
173,758
342,091
432,184
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
n/a
83,551
Company pension contributions to defined contribution schemes
n/a
4,178

As total directors' remuneration (excluding pension contributions) was less than £200,000 in the current year, no disclosure is provided for that year.

The number of directors to whom retirement benefits were accruing was 4 (2023: 4).

ROY HATFIELD (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 25 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
12,122
53,846
Other interest income
75,196
77,619
Total income
87,318
131,465
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
974,267
444,188
Interest on invoice finance arrangements
72,597
-
0
Interest on finance leases and hire purchase contracts
77,593
85,179
Other interest
100,337
98,537
Total finance costs
1,224,794
627,904
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,406,566
854,182
Adjustments in respect of prior periods
20,502
-
0
Total current tax
1,427,068
854,182
Deferred tax
Origination and reversal of timing differences
87,648
304,223
Total tax charge
1,514,716
1,158,405
ROY HATFIELD (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
10
Taxation
(Continued)
- 26 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
6,263,264
5,640,100
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
1,565,816
1,410,025
Tax effect of expenses that are not deductible in determining taxable profit
66,156
9,239
Change in unrecognised deferred tax assets
(86)
220,224
Adjustments in respect of prior years
20,502
(50,009)
Effect of change in corporation tax rate
-
(199,346)
Permanent capital allowances in excess of depreciation
7,680
(285,277)
Effect of overseas tax rates
-
0
38,730
Tax at marginal rate
-
0
60,943
Patent box deduction
(145,352)
(46,124)
Taxation charge
1,514,716
1,158,405
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
723,395
831,576
ROY HATFIELD (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 27 -
12
Intangible fixed assets
Group
Patents & licences
£
Cost
At 1 November 2023 and 31 October 2024
8,990
Amortisation and impairment
At 1 November 2023
411
Amortisation charged for the year
450
At 31 October 2024
861
Carrying amount
At 31 October 2024
8,129
At 31 October 2023
8,579
The company had no intangible fixed assets at 31 October 2024 or 31 October 2023.
13
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 November 2023
1,982,098
6,432,980
71,107
1,190
144,789
8,632,164
Additions
125,848
1,180,545
98,261
-
0
80,926
1,485,580
Disposals
-
0
(91,432)
(920)
-
0
(34,055)
(126,407)
At 31 October 2024
2,107,946
7,522,093
168,448
1,190
191,660
9,991,337
Depreciation and impairment
At 1 November 2023
716,090
3,188,199
42,062
165
17,989
3,964,505
Depreciation charged in the year
30,721
895,442
33,004
396
36,218
995,781
Eliminated in respect of disposals
-
0
(85,060)
(588)
-
0
(12,577)
(98,225)
At 31 October 2024
746,811
3,998,581
74,478
561
41,630
4,862,061
Carrying amount
At 31 October 2024
1,361,135
3,523,512
93,970
629
150,030
5,129,276
At 31 October 2023
1,266,008
3,244,781
29,045
1,025
126,800
4,667,659
ROY HATFIELD (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
13
Tangible fixed assets
(Continued)
- 28 -
Company
Freehold land and buildings
£
Cost
At 1 November 2023 and 31 October 2024
1,400,683
Depreciation and impairment
At 1 November 2023
179,754
Depreciation charged in the year
28,014
At 31 October 2024
207,768
Carrying amount
At 31 October 2024
1,192,915
At 31 October 2023
1,220,929

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
2,037,818
2,042,618
-
0
-
0
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
176,368
176,368
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 November 2023 and 31 October 2024
176,368
Carrying amount
At 31 October 2024
176,368
At 31 October 2023
176,368
ROY HATFIELD (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 29 -
15
Subsidiaries

Details of the company's subsidiaries at 31 October 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Roy Hatfield Limited
Fullerton Road, Rotherham, South Yorkshire, England, S60 1DH
Ordinary
100.00
Hatfield Energy Limited
Fullerton Road, Rotherham, South Yorkshire, England, S60 1DH
Ordinary
100.00
Hatfield Site Services Limited
Fullerton Road, Rotherham, South Yorkshire, England, S60 1DH
Ordinary
100.00
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
16,758,759
12,145,623
-
-
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
12,059,061
12,656,248
-
0
-
0
Corporation tax recoverable
8,036
-
0
-
0
-
0
Amounts owed by group undertakings
-
-
10,115,113
10,899,512
Other debtors
323,647
510,632
-
0
-
0
Prepayments and accrued income
714,213
318,139
2,882
-
0
13,104,957
13,485,019
10,117,995
10,899,512

Amounts owed by group undertakings are interest free and repayable on demand.

ROY HATFIELD (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 30 -
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
10,500,000
11,500,575
10,500,000
11,500,000
Obligations under finance leases
21
596,506
742,942
-
0
-
0
Trade creditors
3,656,012
5,193,038
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
300,000
-
0
Corporation tax payable
965,301
893,555
-
0
-
0
Other taxation and social security
1,547,458
1,447,440
-
-
Other creditors
270,291
56,858
-
0
-
0
Accruals and deferred income
2,467,942
872,067
80,192
3,851
20,003,510
20,706,475
10,880,192
11,503,851

Amounts owed to group undertakings are interest free and repayable on demand.

19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
21
565,719
770,440
-
0
-
0
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
10,500,000
11,500,000
10,500,000
11,500,000
Bank overdrafts
-
0
575
-
0
-
0
10,500,000
11,500,575
10,500,000
11,500,000
Payable within one year
10,500,000
11,500,575
10,500,000
11,500,000

The bank loan is secured as a debenture loan on the assets of the group Roy Hatfield (Holdings) Limited, including its subsidiaries. It is also secured with a charge over the cash deposit in Hatfield Energy Ltd. The loan is repayable on demand with interest being charged.

ROY HATFIELD (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 31 -
21
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
596,506
227,109
-
0
-
0
In two to five years
565,719
1,286,273
-
0
-
0
1,162,225
1,513,382
-
-

Hire purchase creditors are secured against the assets to which the relate to. The contracts are payable by monthly instalments over their individual periods, with the longest current contract set to be fully repaid by March 2028. Interest is charged on a monthly basis for each contract individually.

22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
927,400
839,752
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 November 2023
839,752
-
Charge to profit or loss
87,648
-
Liability at 31 October 2024
927,400
-
ROY HATFIELD (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 32 -
23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
246,734
405,935

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

24
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share of £1 each
168,014
168,014
168,014
168,014
Ordinary A share of £1 each
462
462
462
462
Ordinary B share of £1 each
6,788
6,788
6,788
6,788
Ordinary C,D,E & F share of £1 each
4
4
4
4
175,268
175,268
175,268
175,268

The shareholders are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company. All share classes rank pari passu with regard to the residual assets of the company.

 

25
Capital redemption reserve

Following the group restructure by the company in 2017, and transfer of certain assets to the parent company Roy Hatfield (Holdings) Limited, the company's share capital was reduced and the capital redemption reserve was increased.

26
Financial commitments, guarantees and contingent liabilities

The bank loan taken out for the group Roy Hatfield (Holdings) Limited and its subsidiaries has a balance of £10,500,000 (2023: £11,500,000).

 

The Company's bankers hold an Inter-company Guarantee between the following group companies: Roy Hatfield Limited, Roy Hatfield (Holdings) Limited, Hatfield Energy Limited, Hatfield Site Services Limited.

ROY HATFIELD (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 33 -
27
Operating lease commitments
Lessee

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
4,244
7,536
-
-
4,244
7,536
-
-
28
Related party transactions
Remuneration of key management personnel

During the year, a total of key management personnel compensation of £464,207 (2023: £450,100) was paid.

29
Directors' transactions
Description
% Rate
Opening balance
Amounts repaid
Closing balance
£
£
£
Loan
-
29,235
(5,651)
23,584
29,235
(5,651)
23,584
30
Controlling party

The controlling parties are Mr G Hatfield and Mr M Hatfield.

ROY HATFIELD (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 34 -
31
Cash generated from/(absorbed by) group operations
2024
2023
£
£
Profit after taxation
4,748,548
4,481,695
Adjustments for:
Taxation charged
1,514,716
1,158,405
Finance costs
1,224,794
627,904
Investment income
(87,318)
(131,465)
Loss on disposal of tangible fixed assets
12,182
6,880
Amortisation and impairment of intangible assets
450
411
Depreciation and impairment of tangible fixed assets
995,781
763,606
Movements in working capital:
Increase in stocks
(4,613,136)
(4,096,635)
Decrease/(increase) in debtors
382,447
(960,134)
Increase/(decrease) in creditors
372,300
(6,415,663)
Cash generated from/(absorbed by) operations
4,550,764
(4,564,996)
32
Analysis of changes in net funds - group
1 November 2023
Cash flows
New finance leases
31 October 2024
£
£
£
£
Cash at bank and in hand
13,578,586
(1,489,126)
-
12,089,460
Bank overdrafts
(575)
575
-
-
0
13,578,011
(1,488,551)
-
12,089,460
Borrowings excluding overdrafts
(11,500,000)
1,000,000
-
(10,500,000)
Obligations under finance leases
(1,513,382)
809,157
(458,000)
(1,162,225)
564,629
320,606
(458,000)
427,235
33
Prior period adjustment

Comparative amounts have been restated to reclassify certain expenses from administrative expenses to cost of sales, to more accurately reflect their nature. The total reclassification is £513,721. This reclassification has no impact on profit or reserves.

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