Company registration number 08843460 (England and Wales)
HATFIELD ENERGY LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
HATFIELD ENERGY LTD
COMPANY INFORMATION
Directors
Mr M Hatfield
Mr G E Hatfield
Mr I C Beat
(Appointed 10 June 2024)
Company number
08843460
Registered office
Roy Hatfield Ltd
Fullerton Road
Rotherham
England
S60 1DH
Auditor
BHP LLP
New Chartford House
Centurion Way
Cleckheaton
Bradford
West Yorkshire
BD19 3QB
HATFIELD ENERGY LTD
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 - 23
HATFIELD ENERGY LTD
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 £40.9m which were 0.85% higher than the £40.6m achieved in the previous financial year. Profit before taxation was £2.8m compared to £3.5m in the previous financial year. The increase in turnover was largely driven by volume increases.

 

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

 

 

 

2024

 

2023

Turnover (£)

 

40,929,471

 

40,585,110

Operating Profit (£)

 

3,834,844

 

3,942,969

Profit before taxation (£)

 

2,751,505

 

3,543,274

 

 

 

 

 

Gross profit (%)

 

10.57

 

12.08

Net profit (%)

 

5.00

 

7.25

Return on capital employed (%)

 

26.11

 

31.18

 

 

 

 

 

Current ratio

 

1.66

 

1.72

Acid test ratio

 

0.91

 

1.05

Cash ratio

 

0.54

 

0.46

Interest coverage

 

3.35

 

8.40

 

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.

HATFIELD ENERGY LTD
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 company 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 company and the opportunities to create, deliver and realise value for its members and stakeholders.

 

Interests of the company’s employees.

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

 

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

The company recognises the need to maintain a supply chain that adheres to and is aligned with our environmental, social and commercial objectives and policies. The company 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 company’s operations on the community and the environment.

The company takes its responsibility within the community and wider environment seriously. The company 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 company publishes its Greenhouse Gas GHG) emissions in the company strategic report.

 

Reputation for a high standard of business conduct.

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

 

Need to act fairly as 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 company. This is done through regular company board meetings which are held throughout the year along with participation from other senior employees.

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.

 

The company is not obliged to report its own energy and carbon information on the basis that it is a subsidiary undertaking, its parent reports on the company as a whole and its parent complies with the relevant requirements of energy and carbon reporting.

HATFIELD ENERGY LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 3 -

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.

On behalf of the board

Mr M Hatfield
Director
12 May 2025
HATFIELD ENERGY LTD
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 processing and distribution of solid fuels.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. 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
(Resigned 25 March 2024)
Mr M Hatfield
Mr G E Hatfield
Ms M Hatfield
(Resigned 25 March 2024)
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.

Energy and carbon report

The company is not obliged to report its own energy and carbon information on the basis that it is a subsidiary undertaking, its parent reports on the group as a whole and its parent complies with the relevant requirements of energy and carbon reporting.

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:

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.

HATFIELD ENERGY LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 5 -
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.

On behalf of the board
Mr M Hatfield
Director
12 May 2025
HATFIELD ENERGY LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF HATFIELD ENERGY LTD
- 6 -
Opinion

We have audited the financial statements of Hatfield Energy Ltd (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:

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 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.

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:

HATFIELD ENERGY LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF HATFIELD ENERGY LTD (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:

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:

HATFIELD ENERGY LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF HATFIELD ENERGY LTD (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;

 

 

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 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
HATFIELD ENERGY LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024
- 9 -
2024
2023
as restated
Notes
£
£
Turnover
3
40,929,471
40,585,110
Cost of sales
(36,601,866)
(35,683,820)
Gross profit
4,327,605
4,901,290
Administrative expenses
(492,761)
(958,321)
Operating profit
4
3,834,844
3,942,969
Interest receivable and similar income
8
61,663
69,887
Interest payable and similar expenses
9
(1,145,002)
(469,582)
Profit before taxation
2,751,505
3,543,274
Tax on profit
10
(704,837)
(601,517)
Profit for the financial year
2,046,668
2,941,757

The profit and loss account has been prepared on the basis that all operations are continuing operations.

HATFIELD ENERGY LTD
BALANCE SHEET
AS AT 31 OCTOBER 2024
31 October 2024
- 10 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
12
220,625
235,500
Current assets
Stocks
13
16,513,644
11,491,482
Debtors
14
8,063,234
10,217,568
Cash at bank and in hand
11,836,837
8,013,279
36,413,715
29,722,329
Creditors: amounts falling due within one year
15
(21,945,814)
(17,312,096)
Net current assets
14,467,901
12,410,233
Total assets less current liabilities
14,688,526
12,645,733
Provisions for liabilities
Deferred tax liability
16
55,000
58,875
(55,000)
(58,875)
Net assets
14,633,526
12,586,858
Capital and reserves
Called up share capital
18
1,000
1,000
Profit and loss reserves
14,632,526
12,585,858
Total equity
14,633,526
12,586,858
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 Hatfield
Director
Company registration number 08843460 (England and Wales)
HATFIELD ENERGY LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 31 October 2023:
Balance at 1 November 2022
1,000
9,744,101
9,745,101
Year ended 31 October 2023:
Profit and total comprehensive income
-
2,941,757
2,941,757
Dividends
11
-
(100,000)
(100,000)
Balance at 31 October 2023
1,000
12,585,858
12,586,858
Year ended 31 October 2024:
Profit and total comprehensive income
-
2,046,668
2,046,668
Balance at 31 October 2024
1,000
14,632,526
14,633,526
HATFIELD ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 12 -
1
Accounting policies
Company information

Hatfield Energy Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Roy Hatfield Ltd, Fullerton Road, Rotherham, 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:

 

 

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.

HATFIELD ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 13 -
1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment
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.

1.5
Impairment of fixed assets

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

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

 

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

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

1.6
Stocks

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

 

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

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

1.7
Cash and cash equivalents

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

HATFIELD ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 14 -
1.8
Financial instruments

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

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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.

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.

HATFIELD ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 15 -
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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

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

1.10
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

HATFIELD ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 16 -
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.

1.11
Employee benefits

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

 

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

 

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

1.12
Retirement benefits

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

1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.14
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.

HATFIELD ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 17 -
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.

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.

HATFIELD ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 18 -
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
40,732,330
39,913,851
Europe
-
671,259
India
197,141
-
40,929,471
40,585,110
2024
2023
£
£
Other revenue
Interest income
61,663
69,887
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(306,709)
(160,708)
Depreciation of owned tangible fixed assets
67,675
8,500
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 company
15,600
4,000
For other services
Audit-related assurance services
-
0
1,000
Taxation compliance services
1,500
-
0
1,500
1,000
HATFIELD ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 19 -
6
Employees

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

2024
2023
Number
Number
Direct staff
2
-
Admin staff
6
5
Total
8
5

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
289,930
266,280
Social security costs
25,946
28,747
Pension costs
91,115
141,408
406,991
436,435
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
86,985
-
0
Company pension contributions to defined contribution schemes
82,779
-
169,764
-
0

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023 - 0).

8
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
61,663
69,887
HATFIELD ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 20 -
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
972,068
456,936
Interest on invoice finance arrangements
72,597
-
0
Other interest
100,337
12,646
1,145,002
469,582
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
700,042
542,642
Adjustments in respect of prior periods
8,670
-
0
Total current tax
708,712
542,642
Deferred tax
Origination and reversal of timing differences
(3,875)
58,875
Total tax charge
704,837
601,517

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
2,751,505
3,543,274
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
687,876
885,819
Tax effect of expenses that are not deductible in determining taxable profit
18,006
3,162
Tax effect of utilisation of tax losses not previously recognised
-
0
(10,206)
Unutilised tax losses carried forward
-
0
(216,191)
Change in unrecognised deferred tax assets
(156)
(124)
Adjustments in respect of prior years
8,670
-
0
Effect of change in corporation tax rate
-
0
(60,943)
Group relief
(9,559)
-
0
Taxation charge for the year
704,837
601,517
HATFIELD ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 21 -
11
Dividends
2024
2023
£
£
Interim paid
-
0
100,000
12
Tangible fixed assets
Plant and equipment
£
Cost
At 1 November 2023
275,541
Additions
52,800
At 31 October 2024
328,341
Depreciation and impairment
At 1 November 2023
40,041
Depreciation charged in the year
67,675
At 31 October 2024
107,716
Carrying amount
At 31 October 2024
220,625
At 31 October 2023
235,500
13
Stocks
2024
2023
£
£
Raw materials and consumables
16,513,644
11,491,482
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
7,254,265
9,727,882
Other debtors
300,000
300,000
Prepayments and accrued income
508,969
189,686
8,063,234
10,217,568
HATFIELD ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 22 -
15
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
756,945
3,897,869
Amounts owed to group undertakings
17,255,684
10,990,281
Corporation tax
701,144
544,178
Other taxation and social security
952,896
1,083,977
Other creditors
107,000
20,410
Accruals and deferred income
2,172,145
775,381
21,945,814
17,312,096

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

16
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
55,000
58,875
2024
Movements in the year:
£
Liability at 1 November 2023
58,875
Credit to profit or loss
(3,875)
Liability at 31 October 2024
55,000

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.

17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
91,115
141,408

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

HATFIELD ENERGY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 23 -
18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100
100
1,000
1,000
19
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 Hatfield Energy 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.

20
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.

21
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 £82,471. This reclassification has no impact on profit or reserves.

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