Company registration number 01384830 (England and Wales)
ROY HATFIELD LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
ROY HATFIELD LIMITED
COMPANY INFORMATION
Directors
Mr R Hatfield
Mr G D Longley
Mr M R Hatfield
Ms M Hatfield
Mr G E Hatfield
Mr I C Beat
(Appointed 10 June 2024)
Company number
01384830
Registered office
Roy Hatfield Ltd
Fullerton Road
Rotherham
South Yorkshire
England
S60 1DH
Auditor
BHP LLP
New Chartford House
Centurion Way
Cleckheaton
Bradford
West Yorkshire
BD19 3QB
ROY HATFIELD LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 25
ROY HATFIELD LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 1 -
The directors present the strategic report for the year ended 31 October 2024.
REVIEW OF BUSINESS
During the year ended 31 October 2024 the company generated sales of £18.1m which were 26.2% higher than the £14.3m achieved in the previous financial year. Profit before taxation was £2.4m compared to £1.0m 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 company monitors its financial performance through key performance indicators, which are as follows:
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Profit before taxation (£) | | | | |
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Return on capital employed (%) | | | | |
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The directors are pleased with the company’s financial performance during the year despite the significant issues and uncertainties around the economy and market conditions. The company is well placed to withstand any future adverse events.
PRINCIPAL RISKS AND UNCERTAINTIES
The company 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 company 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 company trades only with recognised and creditworthy parties. It is the company'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 company is exposed to transaction foreign exchange risk. Transaction risk is managed by the use of forward currency contracts.
ROY HATFIELD LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 2 -
ENVIRONMENTAL POLICY
The board acknowledges that environmental protection is one of its business responsibilities. The company 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 company routinely assesses the environmental impact of all its operations and aim to reduce (and eliminate wherever practical) waste, the consumption of resources and pollution of the environment. The company is committed to the conservation of energy, water and natural resources through increased efficiency and the introduction of new technologies. In February 2022 the company in recognition of our Environmental Management System was awarded ISO 14001. The company commits sufficient staff and resources to ensure that these objectives are met and continuously monitors performance.
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.
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 company 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 company in recognition of our Health and Safety Management System was awarded ISO 45001. The company 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 company retained ISO 9001 which recognises our Quality Management System. The company 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 company 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 company 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 company 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 company.
ROY HATFIELD LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 3 -
Mr M R Hatfield
Director
12 May 2025
ROY HATFIELD LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 4 -
The directors present their annual report and financial statements for the year ended 31 October 2024.
Principal activities
The principal activity of the company in the year under review was that of metals and minerals processing, recycling of plasterboard and waste brokerage.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £150,000. The directors do not recommend payment of a final 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 G D Longley
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 company 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 company and of the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement 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 company’s auditor 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 company’s auditor is aware of that information.
ROY HATFIELD LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 5 -
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr M R Hatfield
Director
12 May 2025
ROY HATFIELD LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF ROY HATFIELD LIMITED
- 6 -
Opinion
We have audited the financial statements of Roy Hatfield Limited (the 'company') for the year ended 31 October 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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:
give a true and fair view of the state of the company's affairs as at 31 October 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
ROY HATFIELD LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF ROY HATFIELD LIMITED (CONTINUED)
- 7 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the 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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
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:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the Company through discussions with directors and other management, and from our commercial knowledge and experience of the trade;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company;
we assessed the extent of compliance with the laws and regulations considered above through making enquiries of management; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
ROY HATFIELD LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF ROY HATFIELD LIMITED (CONTINUED)
- 8 -
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by;
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risks of fraud through management bias and override controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
discussions with senior management regarding relevant regulations and reviewing the company’s legal and professional fees.
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.
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, 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 LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024
- 9 -
2024
2023
as restated
Notes
£
£
Turnover
3
18,086,882
14,327,533
Cost of sales
(14,106,374)
(10,912,100)
Gross profit
3,980,508
3,415,433
Administrative expenses
(1,675,046)
(2,040,244)
Other operating income
41,161
650,546
Operating profit
4
2,346,623
2,025,735
Interest receivable and similar income
7
48,688
58,202
Interest payable and similar expenses
8
(22,159)
(97,294)
Profit before taxation
2,373,152
1,986,643
Tax on profit
9
(508,099)
(334,477)
Profit for the financial year
1,865,053
1,652,166
The profit and loss account has been prepared on the basis that all operations are continuing operations.
ROY HATFIELD LIMITED
BALANCE SHEET
AS AT 31 OCTOBER 2024
31 October 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
11
8,129
8,579
Tangible assets
12
1,633,159
1,309,722
1,641,288
1,318,301
Current assets
Stocks
13
245,115
654,141
Debtors
14
11,514,433
3,224,494
Cash at bank and in hand
116,826
5,015,915
11,876,374
8,894,550
Creditors: amounts falling due within one year
15
(3,654,703)
(2,035,951)
Net current assets
8,221,671
6,858,599
Total assets less current liabilities
9,862,959
8,176,900
Creditors: amounts falling due after more than one year
16
(171,713)
(254,607)
Provisions for liabilities
Deferred tax liability
19
359,400
305,500
(359,400)
(305,500)
Net assets
9,331,846
7,616,793
Capital and reserves
Called up share capital
20
10,000
10,000
Capital redemption reserve
21
180,508
180,508
Profit and loss reserves
9,141,338
7,426,285
Total equity
9,331,846
7,616,793
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
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:
Mr M R Hatfield
Director
Company registration number 01384830 (England and Wales)
ROY HATFIELD LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 11 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Period ended 31 October 2023:
Balance at 1 November 2022
10,000
180,508
5,874,119
6,064,627
Year ended 31 October 2023:
Profit and total comprehensive income
-
-
1,652,166
1,652,166
Dividends
10
-
-
(100,000)
(100,000)
Balance at 31 October 2023
10,000
180,508
7,426,285
7,616,793
Year ended 31 October 2024:
Profit and total comprehensive income
-
-
1,865,053
1,865,053
Dividends
10
-
-
(150,000)
(150,000)
Balance at 31 October 2024
10,000
180,508
9,141,338
9,331,846
ROY HATFIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 12 -
1
Accounting policies
Company information
Roy Hatfield Limited is a private company limited by shares incorporated in England and Wales. The registered office is Roy Hatfield Ltd, Fullerton Road, Rotherham, South Yorkshire, England, S60 1DH.
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.
This 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:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Roy Hatfield (Holdings) Limited. These consolidated financial statements are available from its registered office, Fullerton Road, Rotherham, United Kingdom, S60 1DH.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company 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 company 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.
1.3
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.
ROY HATFIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 13 -
1.4
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
1.5
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
25% on reducing balance
Fixtures and fittings
5 years straight line
Motor vehicles
25% on 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 credited or charged to profit or loss.
1.6
Impairment of fixed assets
At each reporting period end date, the company 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.
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.
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.
ROY HATFIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 14 -
1.7
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.
1.8
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.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 15 -
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 company 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 company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 16 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
ROY HATFIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 17 -
1.14
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.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’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.
Recoverability of intercompany debtors
Recoverability of intercompany balances is deemed a key area of judgement based on the group entities ability to repay on demand.
3
Turnover and other revenue
The turnover and profit before taxation are attributable to the one principal activity of the company.
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
18,086,882
14,327,533
ROY HATFIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
3
Turnover and other revenue
(Continued)
- 18 -
2024
2023
£
£
Other revenue
Interest income
48,688
58,202
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Exchange losses
41,908
13,637
Fees payable to the company's auditor for the audit of the company's financial statements
35,000
6,250
Depreciation of owned tangible fixed assets
51,304
69,122
Depreciation of tangible fixed assets held under finance leases
375,665
289,597
Loss on disposal of tangible fixed assets
6,704
6,880
Amortisation of intangible assets
450
411
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Direct staff
25
30
Admin staff
7
11
Directors
6
6
Total
38
47
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,173,627
1,465,495
Social security costs
109,587
142,472
Pension costs
109,776
239,483
1,392,990
1,847,450
ROY HATFIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 19 -
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
104,129
258,426
Company pension contributions to defined contribution schemes
68,198
173,758
172,327
432,184
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023 - 4).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
n/a
84,000
Company pension contributions to defined contribution schemes
n/a
4,200
As total directors' remuneration was less than £200,000 in the current year, no disclosure is provided for that year.
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
12,122
53,846
Interest receivable from group companies
36,566
Other interest income
4,356
Total income
48,688
58,202
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
2,199
73,041
Interest on finance leases and hire purchase contracts
19,960
24,253
22,159
97,294
ROY HATFIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 20 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
442,367
311,540
Adjustments in respect of prior periods
11,832
Total current tax
454,199
311,540
Deferred tax
Origination and reversal of timing differences
53,900
22,937
Total tax charge
508,099
334,477
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
2,373,152
1,986,643
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
593,288
496,661
Tax effect of expenses that are not deductible in determining taxable profit
47,652
6,075
Change in unrecognised deferred tax assets
2
(2,063)
Adjustments in respect of prior years
11,832
(39,802)
Effect of change in corporation tax rate
(38,730)
Permanent capital allowances in excess of depreciation
677
(41,540)
Patent box deduction
(145,352)
(46,124)
Taxation charge for the year
508,099
334,477
10
Dividends
2024
2023
£
£
Interim paid
150,000
100,000
ROY HATFIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 21 -
11
Intangible fixed assets
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
12
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 November 2023
47,120
3,777,869
71,107
110,734
4,006,830
Additions
125,848
505,696
98,261
27,305
757,110
Disposals
(91,432)
(920)
(92,352)
At 31 October 2024
172,968
4,192,133
168,448
138,039
4,671,588
Depreciation and impairment
At 1 November 2023
2,042
2,641,208
42,062
11,796
2,697,108
Depreciation charged in the year
2,707
362,542
33,004
28,716
426,969
Eliminated in respect of disposals
(85,060)
(588)
(85,648)
At 31 October 2024
4,749
2,918,690
74,478
40,512
3,038,429
Carrying amount
At 31 October 2024
168,219
1,273,443
93,970
97,527
1,633,159
At 31 October 2023
45,078
1,136,661
29,045
98,938
1,309,722
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Plant and equipment
319,920
430,348
ROY HATFIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 22 -
13
Stocks
2024
2023
£
£
Raw materials and consumables
245,115
654,141
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,931,996
2,261,925
Corporation tax recoverable
8,036
Amounts owed by group undertakings
7,351,268
635,941
Other debtors
23,584
198,175
Prepayments and accrued income
199,549
128,453
11,514,433
3,224,494
Amounts owed by group undertakings are interest free and repayable on demand.
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
575
Obligations under finance leases
18
82,895
132,048
Trade creditors
2,705,409
1,182,694
Amounts owed to group undertakings
230,792
Corporation tax
349,377
Other taxation and social security
348,907
273,280
Other creditors
163,291
36,449
Accruals and deferred income
123,409
61,528
3,654,703
2,035,951
Amounts owed to group undertakings are interest free and repayable on demand.
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
18
171,713
254,607
ROY HATFIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 23 -
17
Loans and overdrafts
2024
2023
£
£
Bank overdrafts
575
Payable within one year
575
18
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
82,895
132,048
In two to five years
171,713
254,607
254,608
386,655
The hire purchase contracts are secured against the assets to which they 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.
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
359,400
305,500
2024
Movements in the year:
£
Liability at 1 November 2023
305,500
Charge to profit or loss
53,900
Liability at 31 October 2024
359,400
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
ROY HATFIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 24 -
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
10,000
10,000
10,000
10,000
21
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.
22
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). As Roy Hatfield Limited is one of these subsidiaries the debenture is also secured against the company's assets.
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.
23
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
4,244
7,536
24
Directors' transactions
The following advances and credits to a director subsisted during the years ended 31 October 2024 and 31 October 2023:
Description
% Rate
Opening balance
Amounts repaid
Closing balance
£
£
£
Loan
-
29,235
(5,651)
23,584
29,235
(5,651)
23,584
ROY HATFIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 25 -
25
Ultimate controlling party
The ultimate controlling parties are Mr G Hatfield and Mr M Hatfield.
Roy Hatfield (Holdings) Limited is regarded by the directors as being the company's ultimate parent company.
The company is a wholly owned subsidiary of Roy Hatfield (Holdings) Limited, a company incorporated in England and Wales. The consolidated financial statements of Roy Hatfield (Holdings) Limited are available from the registered office, Fullerton Road, Rotherham, South Yorkshire, S60 1DH.
26
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 £431,250. This reclassification has no impact on profit or reserves.
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