Hilton Docker Holdings Limited
Annual report and financial statements
For the period ended 31 October 2024
Hilton Docker Holdings Limited
Company information
Director
Mr T R Docker
Company number
15267344
Registered office
The Exchange
5 Bank Street
Bury
Lancashire
BL9 0DN
Auditor
DJH Audit Limited
The Exchange
5 Bank Street
Bury
Lancashire
BL9 0DN
Hilton Docker Holdings Limited
Contents
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 28
Hilton Docker Holdings Limited
Strategic report
For the period ended 31 October 2024
- 1 -
The director presents the strategic report for the period ended 31 October 2024.
Review of the business
The results for the period and financial position of the group are shown in the annexed financial statements.
The director is satisfied with the relatively stable turnover and results achieved in the year. These have been achieved despite the continuing difficulties facing the GRP and motor industry. As in the prior year, the sales are generated from a mix between customers and the company's own brands.
The group's gross profit margin fluctuates year on year due to a number of factors including:
Raw materials prices impacting the purchase price of goods
The sales mix of product type sold
Competition discounted prices
Going forward, the director believes that it will be very difficult to sustain the current year's results but they will aim to do so by improving the product range and building on strong relationships with customers.
Principal risks and uncertainties
The main ongoing risks facing the group are falling demand, wage rises and bad debts.
The GRP and motor industry is highly competitive and if vehicle chassis are being under-supplied a general downturn in trade quickly occurs, along with increased pressure from customers in relation to prices. The current downturn in consumer spending will continue to put sales under pressure over the next twelve months. Demand may be further impacted by unseasonal weather patterns.
Falling demand - the director aims to work closely with main customers to mitigate this risk and to source new customers, and also to continually offer new product designs.
Rising cost of raw materials and manufacturing cost - price increases will be passed on to customers where possible to help mitigate against this risk.
Bad debt risk - As higher manufacturing costs have taken effect customers continue to suffer and the risk of bad debts is expected to increase in the coming year. The director operates a strong credit control function, imposes strict credit limits and continually monitors balances owed.
Key performance indicators
The key performance indicators used by the director are:
Monthly sales data - which is compared to results in the prior year
Monthly sales ledger - which is is analysed by age of balance
Profit margins on a product by product basis
Other information and explanations
Trading since the period end has continued to be challenging, in light of the war in Ukraine and the cost of living crisis. However the group has taken steps to mitigate the effects of these challenges.
Mr T R Docker
Director
8 May 2025
Hilton Docker Holdings Limited
Director's report
For the period ended 31 October 2024
- 2 -
The director presents his annual report and financial statements for the period ended 31 October 2024.
Incorporation
The group was incorporated on 7 November 2023 and commenced trading on the same date.
Principal activities
The principal activity of the group in the year under review was that of the manufacture of specialist commercial vehicle, engineering and general fibreglass mouldings. The principal activity of the company is as a holding company to the trading subsidiary.
Results and dividends
No ordinary dividends were paid. The director does not recommend payment of a further dividend.
Director
The director who held office during the period and up to the date of signature of the financial statements was as follows:
Mr T R Docker
Auditor
DJH Audit Limited was appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of director's responsibilities
The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
Hilton Docker Holdings Limited
Director's report (continued)
For the period ended 31 October 2024
- 3 -
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 T R Docker
Director
8 May 2025
Hilton Docker Holdings Limited
Independent auditor's report
To the members of Hilton Docker Holdings Limited
- 4 -
Opinion
We have audited the financial statements of Hilton Docker Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 October 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 October 2024 and of the group's profit for the period 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 group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director 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 director is 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.
Hilton Docker Holdings Limited
Independent auditor's report (continued)
To the members of Hilton Docker Holdings Limited
- 5 -
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 director's report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company 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 director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the parent company or to cease operations, or has 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Hilton Docker Holdings Limited
Independent auditor's report (continued)
To the members of Hilton Docker Holdings Limited
- 6 -
As part of our planning process:
We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The company did not inform us of any known, suspected or alleged fraud.
We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006, and Health & Safety legislation including that relating to fire safety and hazardous substances.
We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.
Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.
The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
Identifying and testing journal entries, in particular those that were significant and unusual.
Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to depreciation.
Assessing the extent of compliance with, or lack thereof, relevant laws and regulations.
Testing key revenue lines for evidence of management bias, and cut-off testing for completeness of income.
Performing walkthrough testing to test controls and for evidence of management bias.
Performing a physical verification of key assets, including stock.
Obtaining third-party confirmation of material bank and loan balances.
Documenting and verifying all significant related party balances and transactions.
Testing all material consolidation adjustments.
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 members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Kate Hughes (Senior Statutory Auditor)
For and on behalf of
8 May 2025
DJH Audit Limited
Accountants
Statutory Auditor
The Exchange
5 Bank Street
Bury
Lancashire
BL9 0DN
Hilton Docker Holdings Limited
Group profit and loss account
For the period ended 31 October 2024
- 7 -
2024
ended
31 October
Notes
£
Turnover
3
6,054,727
Cost of sales
(3,046,944)
Gross profit
3,007,783
Administrative expenses
(1,936,179)
Other operating income
50,613
Operating profit
4
1,122,217
Interest receivable and similar income
6
4,251
Interest payable and similar expenses
7
(27,237)
Profit before taxation
1,099,231
Tax on profit
8
(428,990)
Profit for the financial period
670,241
Profit for the financial period is all attributable to the owners of the parent company.
Hilton Docker Holdings Limited
Group statement of comprehensive income
For the period ended 31 October 2024
- 8 -
2024
ended
31 October
£
Profit for the period
670,241
Other comprehensive income
-
Cash flow hedges gain arising in the period
Total comprehensive income for the period
670,241
Total comprehensive income for the period is all attributable to the owners of the parent company.
Hilton Docker Holdings Limited
Group balance sheet
As at 31 October 2024
- 9 -
Notes
£
£
Fixed assets
Goodwill
9
4,866,866
Tangible assets
10
396,337
5,263,203
Current assets
Stocks
13
38,880
Debtors
14
1,939,013
Cash at bank and in hand
2,454,645
4,432,538
Creditors: amounts falling due within one year
15
(1,511,663)
Net current assets
2,920,875
Total assets less current liabilities
8,184,078
Creditors: amounts falling due after more than one year
16
(16,051)
Provisions for liabilities
Deferred tax liability
17
104,785
(104,785)
Net assets
8,063,242
Capital and reserves
Called up share capital
19
7,393,001
Profit and loss reserves
670,241
Total equity
8,063,242
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved and signed by the director and authorised for issue on 8 May 2025
08 May 2025
Mr T R Docker
Director
Company registration number 15267344 (England and Wales)
Hilton Docker Holdings Limited
Company balance sheet
As at 31 October 2024
31 October 2024
- 10 -
Notes
£
£
Fixed assets
Investments
11
7,393,000
Current assets
Cash at bank and in hand
1,499,997
Creditors: amounts falling due within one year
15
(1,500,000)
Net current liabilities
(3)
Net assets
7,392,997
Capital and reserves
Called up share capital
19
7,393,001
Profit and loss reserves
(4)
Total equity
7,392,997
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £4.
The financial statements were approved and signed by the director and authorised for issue on 8 May 2025
08 May 2025
Mr T R Docker
Director
Company registration number 15267344 (England and Wales)
Hilton Docker Holdings Limited
Group statement of changes in equity
For the period ended 31 October 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 7 November 2023
-
-
-
Period ended 31 October 2024:
Profit and total comprehensive income
-
670,241
670,241
Issue of share capital
19
7,393,001
-
7,393,001
Balance at 31 October 2024
7,393,001
670,241
8,063,242
Hilton Docker Holdings Limited
Company statement of changes in equity
For the period ended 31 October 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 7 November 2023
-
-
-
Period ended 31 October 2024:
Profit and total comprehensive income
-
(4)
(4)
Issue of share capital
19
7,393,001
-
7,393,001
Balance at 31 October 2024
7,393,001
(4)
7,392,997
Hilton Docker Holdings Limited
Group statement of cash flows
For the period ended 31 October 2024
- 13 -
Notes
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
22
1,519,417
Interest paid
(27,237)
Income taxes paid
(264,751)
Net cash inflow/(outflow) from operating activities
1,227,429
Investing activities
Purchase of business
1,224,571
Purchase of tangible fixed assets
5,057
Interest received
4,251
Net cash generated from/(used in) investing activities
1,233,879
Financing activities
Proceeds from issue of shares
1
Payment of finance leases obligations
(6,664)
Net cash used in financing activities
(6,663)
Net increase in cash and cash equivalents
2,454,645
Cash and cash equivalents at beginning of period
-
Cash and cash equivalents at end of period
2,454,645
Hilton Docker Holdings Limited
Notes to the group financial statements
For the period ended 31 October 2024
- 14 -
1
Accounting policies
Company information
Hilton Docker Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The company's registered number is 15267344 and its registered office is The Exchange, 5 Bank Street, Bury, BL9 0DN.
The group consists of Hilton Docker Holdings Limited and all of its subsidiaries.
1.1
Reporting period
The reporting period is shorter than one year as the parent company was incorporated on 07 November 2023.
1.2
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.
1.3
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
1.4
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Hilton Docker Holdings Limited together with its subsidiary Hilton Docker Mouldings Limited.
All financial statements are made up to 31 October 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Hilton Docker Holdings Limited
Notes to the group financial statements (continued)
For the period ended 31 October 2024
1
Accounting policies
(Continued)
- 15 -
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
1.5
Going concern
At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.6
Turnover
Turnover comprises the aggregate of the fair value of sales of goods, net of value - added tax.
Turnover is recognised when then company has delivered products to the customer, the customer has accepted the products and collection of the related receivables is anticipated. For moulds retained for production, turnover is recognised when the company has carried out an appropriate level of testing on the mould and has deemed it satisfactorily for use in production.
1.7
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.8
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings
2% on cost
Plant and equipment
20% reducing balance
Fixtures and fittings
20% reducing balance
Computers
20% reducing balance
Motor vehicles
25% reducing balance
Included in land and buildings is freehold land which is not depreciated.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
Hilton Docker Holdings Limited
Notes to the group financial statements (continued)
For the period ended 31 October 2024
1
Accounting policies
(Continued)
- 16 -
1.9
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.10
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
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.
1.11
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.
Hilton Docker Holdings Limited
Notes to the group financial statements (continued)
For the period ended 31 October 2024
1
Accounting policies
(Continued)
- 17 -
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.
1.12
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.
1.13
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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.
Hilton Docker Holdings Limited
Notes to the group financial statements (continued)
For the period ended 31 October 2024
1
Accounting policies
(Continued)
- 18 -
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.14
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.15
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Hilton Docker Holdings Limited
Notes to the group financial statements (continued)
For the period ended 31 October 2024
1
Accounting policies
(Continued)
- 19 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.16
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.
1.17
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.18
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.
1.19
Amounts recoverable on contract
Goods in productions comprising amounts recoverable on contract are valued between 25-80% of anticipated sales price, depending on their stage of completion and including estimates of impairment.
Hilton Docker Holdings Limited
Notes to the group financial statements (continued)
For the period ended 31 October 2024
- 20 -
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the director is 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.
The estimates and assumptions which have a significant risk of causing material adjustment to the carrying amount of the assets and liabilities are outlined below:
Estimating the useful economic life of an asset and the anticipated residual value are considered a key judgement in calculating an appropriate depreciation and amortisation charge.
3
Turnover and other revenue
£
Other revenue
Interest income
4,251
The turnover and profit before taxation are attributable to the one principal activity of the group, and arose entirely within the UK.
4
Operating profit
£
Operating profit for the period is stated after charging:
Fees payable to the group's auditor for the audit of the group's financial statements
10,030
Depreciation of owned tangible fixed assets
45,900
Amortisation of intangible assets
469,289
Hilton Docker Holdings Limited
Notes to the group financial statements (continued)
For the period ended 31 October 2024
- 21 -
5
Employees
The average monthly number of persons (including directors) employed by the group and company during the period was:
Group
Company
Number
Number
Production
63
-
Administration
2
-
Director
1
1
Total
66
1
Their aggregate remuneration comprised:
Group
Company
£
£
Wages and salaries
2,295,917
Pension costs
47,260
2,343,177
6
Interest receivable and similar income
£
Interest income
Interest on bank deposits
4,251
7
Interest payable and similar expenses
£
Interest on bank overdrafts and loans
19
Other interest
27,218
Total finance costs
27,237
Hilton Docker Holdings Limited
Notes to the group financial statements (continued)
For the period ended 31 October 2024
- 22 -
8
Taxation
£
Current tax
UK corporation tax on profits for the current period
428,811
Adjustments in respect of prior periods
179
Total current tax
428,990
The actual charge for the period can be reconciled to the expected charge/(credit) for the period based on the profit or loss and the standard rate of tax as follows:
£
Profit before taxation
1,099,231
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00%
274,808
Tax effect of expenses that are not deductible in determining taxable profit
131,196
Adjustments in respect of prior years
180
Pre acquisition profit reversal
22,806
Taxation charge
428,990
9
Intangible fixed assets
Group
Goodwill
£
Cost
At 7 November 2023
Additions
5,336,155
At 31 October 2024
5,336,155
Amortisation and impairment
At 7 November 2023
Amortisation charged for the period
469,289
At 31 October 2024
469,289
Carrying amount
At 31 October 2024
4,866,866
The company had no intangible fixed assets at 31 October 2024.
Hilton Docker Holdings Limited
Notes to the group financial statements (continued)
For the period ended 31 October 2024
- 23 -
10
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 7 November 2023
Additions
220,441
74,749
47,699
34,592
64,756
442,237
At 31 October 2024
220,441
74,749
47,699
34,592
64,756
442,237
Depreciation and impairment
At 7 November 2023
Depreciation charged in the period
12,867
8,360
9,994
14,680
45,900
At 31 October 2024
12,867
8,360
9,994
14,680
45,900
Carrying amount
At 31 October 2024
220,441
61,882
39,339
24,598
50,076
396,337
The company had no tangible fixed assets at 31 October 2024.
The carrying value of land and buildings comprises:
Group
Company
£
£
Freehold
25,547
25,547
-
11
Fixed asset investments
Group
Company
Notes
£
£
Investments in subsidiaries
12
7,393,000
Hilton Docker Holdings Limited
Notes to the group financial statements (continued)
For the period ended 31 October 2024
11
Fixed asset investments
(Continued)
- 24 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 7 November 2023
-
Valuation changes
7,393,000
At 31 October 2024
7,393,000
Carrying amount
At 31 October 2024
7,393,000
12
Subsidiaries
Details of the company's subsidiaries at 31 October 2024 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Hilton Docker Mouldings Limited
The Exchange, 5 Bank Street, Bury, England, BL9 0DN
Manufacture of specialist commercial vehicle, engineering and general fibreglass mouldings
Ordinary
100.00
13
Stocks
Group
Company
£
£
Finished goods and goods for resale
38,880
14
Debtors
Group
Company
Amounts falling due within one year:
£
£
Trade debtors
1,793,149
Gross amounts owed by contract customers
59,475
Other debtors
10,495
Prepayments and accrued income
75,894
1,939,013
-
Hilton Docker Holdings Limited
Notes to the group financial statements (continued)
For the period ended 31 October 2024
- 25 -
15
Creditors: amounts falling due within one year
Group
Company
Notes
£
£
Hire purchase
7,408
Trade creditors
257,795
Amounts owed to group undertakings
1,500,000
Corporation tax payable
171,810
Other taxation and social security
274,792
-
Other creditors
659,104
Accruals and deferred income
140,754
1,511,663
1,500,000
Other creditors are secured by way of a fixed charge over the goodwill of the company and a floating charge over all of the assets of the company. Hire purchase obligations included within other creditors, are secured upon the asset which the hire purchase agreement relates to.
16
Creditors: amounts falling due after more than one year
Group
Company
Notes
£
£
Hire purchase
16,051
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Group
£
Accelerated capital allowances
104,785
The company has no deferred tax assets or liabilities.
Hilton Docker Holdings Limited
Notes to the group financial statements (continued)
For the period ended 31 October 2024
17
Deferred taxation
(Continued)
- 26 -
Group
Company
Movements in the period:
£
£
Asset at 7 November 2023
-
-
Charge to profit or loss
104,785
-
Liability at 31 October 2024
104,785
-
18
Retirement benefit schemes
Defined contribution schemes
£
Charge to profit or loss in respect of defined contribution schemes
47,260
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
19
Share capital
Group and company
Ordinary share capital
Number
£
Issued and fully paid
Ordinary shares of £1 each
7,393,001
7,393,001
Hilton Docker Holdings Limited
Notes to the group financial statements (continued)
For the period ended 31 October 2024
- 27 -
20
Acquisition of a business
On 15 December 2023 the group acquired 100 percent of the issued capital of Hilton Docker Mouldings Limited.
Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, plant and equipment
417,171
-
417,171
Inventories
2,100
-
2,100
Trade and other receivables
1,936,061
-
1,936,061
Cash and cash equivalents
1,224,571
-
1,224,571
Trade and other payables
(1,305,917)
-
(1,305,917)
Tax liabilities
(112,356)
-
(112,356)
Provisions
(104,785)
-
(104,785)
Total identifiable net assets
2,056,845
-
2,056,845
Goodwill
5,336,155
Total consideration
7,393,000
The consideration was satisfied by:
£
Issue of shares
7,393,000
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
6,054,727
Profit after tax
688,817
21
Controlling party
The ultimate controlling party is T R Docker.
Hilton Docker Holdings Limited
Notes to the group financial statements (continued)
For the period ended 31 October 2024
- 28 -
22
Cash generated from/(absorbed by) group operations
£
Profit for the period after tax
670,241
Adjustments for:
Taxation charged
428,990
Finance costs
27,237
Investment income
(4,251)
Amortisation and impairment of intangible assets
469,289
Depreciation and impairment of tangible fixed assets
45,900
Decrease in provisions
(104,785)
Movements in working capital:
Increase in stocks
(36,780)
Increase in debtors
(2,952)
Increase in creditors
26,528
Cash generated from/(absorbed by) operations
1,519,417
23
Analysis of changes in net funds - group
7 November 2023
Cash flows
New finance leases
31 October 2024
£
£
£
£
Cash at bank and in hand
-
2,454,645
-
2,454,645
Obligations under finance leases
-
6,664
(30,123)
(23,459)
-
2,461,309
(30,123)
2,431,186
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