Caseware UK (AP4) 2023.0.135 2023.0.135 2024-12-312025-05-112025-05-142024-12-312025-05-11562024-01-01false57truefalsefalse 00945570 2024-01-01 2024-12-31 00945570 2023-01-01 2023-12-31 00945570 2024-12-31 00945570 2023-12-31 00945570 2023-01-01 00945570 6 2024-01-01 2024-12-31 00945570 6 2023-01-01 2023-12-31 00945570 1 2024-01-01 2024-12-31 00945570 e:CompanySecretary1 2024-01-01 2024-12-31 00945570 e:Director1 2024-01-01 2024-12-31 00945570 e:Director2 2024-01-01 2024-12-31 00945570 e:Director3 2024-01-01 2024-12-31 00945570 e:RegisteredOffice 2024-01-01 2024-12-31 00945570 d:Buildings d:LongLeaseholdAssets 2024-01-01 2024-12-31 00945570 d:Buildings d:ShortLeaseholdAssets 2024-01-01 2024-12-31 00945570 d:Buildings d:ShortLeaseholdAssets 2024-12-31 00945570 d:Buildings d:ShortLeaseholdAssets 2023-12-31 00945570 d:PlantMachinery 2024-01-01 2024-12-31 00945570 d:PlantMachinery 2024-12-31 00945570 d:PlantMachinery 2023-12-31 00945570 d:PlantMachinery d:OwnedOrFreeholdAssets 2024-01-01 2024-12-31 00945570 d:MotorVehicles 2024-01-01 2024-12-31 00945570 d:MotorVehicles 2024-12-31 00945570 d:MotorVehicles 2023-12-31 00945570 d:MotorVehicles d:OwnedOrFreeholdAssets 2024-01-01 2024-12-31 00945570 d:FurnitureFittings 2024-01-01 2024-12-31 00945570 d:FurnitureFittings 2024-12-31 00945570 d:FurnitureFittings 2023-12-31 00945570 d:FurnitureFittings d:OwnedOrFreeholdAssets 2024-01-01 2024-12-31 00945570 d:OfficeEquipment 2024-01-01 2024-12-31 00945570 d:OfficeEquipment 2024-12-31 00945570 d:OfficeEquipment 2023-12-31 00945570 d:OfficeEquipment d:OwnedOrFreeholdAssets 2024-01-01 2024-12-31 00945570 d:OwnedOrFreeholdAssets 2024-01-01 2024-12-31 00945570 d:PatentsTrademarksLicencesConcessionsSimilar 2024-12-31 00945570 d:PatentsTrademarksLicencesConcessionsSimilar 2023-12-31 00945570 d:ComputerSoftware 2024-12-31 00945570 d:ComputerSoftware 2023-12-31 00945570 d:CurrentFinancialInstruments 2024-12-31 00945570 d:CurrentFinancialInstruments 2023-12-31 00945570 d:CurrentFinancialInstruments d:WithinOneYear 2024-12-31 00945570 d:CurrentFinancialInstruments d:WithinOneYear 2023-12-31 00945570 f:UnitedKingdom 2024-01-01 2024-12-31 00945570 f:UnitedKingdom 2023-01-01 2023-12-31 00945570 f:RestWorldOutsideUK 2024-01-01 2024-12-31 00945570 f:RestWorldOutsideUK 2023-01-01 2023-12-31 00945570 d:UKTax 2024-01-01 2024-12-31 00945570 d:UKTax 2023-01-01 2023-12-31 00945570 d:ShareCapital 2024-12-31 00945570 d:ShareCapital 2023-12-31 00945570 d:RetainedEarningsAccumulatedLosses 2024-01-01 2024-12-31 00945570 d:RetainedEarningsAccumulatedLosses 2024-12-31 00945570 d:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 00945570 d:RetainedEarningsAccumulatedLosses 2023-12-31 00945570 d:RetainedEarningsAccumulatedLosses 2023-01-01 00945570 d:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2024-12-31 00945570 d:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2023-12-31 00945570 d:FinancialAssetsAmortisedCost 2024-12-31 00945570 d:FinancialAssetsAmortisedCost 2023-12-31 00945570 d:FinancialLiabilitiesAmortisedCost 2024-12-31 00945570 d:FinancialLiabilitiesAmortisedCost 2023-12-31 00945570 e:OrdinaryShareClass1 2024-01-01 2024-12-31 00945570 e:OrdinaryShareClass1 2024-12-31 00945570 e:OrdinaryShareClass1 2023-12-31 00945570 e:FRS102 2024-01-01 2024-12-31 00945570 e:Audited 2024-01-01 2024-12-31 00945570 e:FullAccounts 2024-01-01 2024-12-31 00945570 e:PrivateLimitedCompanyLtd 2024-01-01 2024-12-31 00945570 d:WithinOneYear 2024-12-31 00945570 d:WithinOneYear 2023-12-31 00945570 d:BetweenOneFiveYears 2024-12-31 00945570 d:BetweenOneFiveYears 2023-12-31 00945570 d:MoreThanFiveYears 2024-12-31 00945570 d:MoreThanFiveYears 2023-12-31 00945570 2 2024-01-01 2024-12-31 00945570 6 2024-01-01 2024-12-31 00945570 d:AcceleratedTaxDepreciationDeferredTax 2024-12-31 00945570 d:AcceleratedTaxDepreciationDeferredTax 2023-12-31 00945570 d:OtherDeferredTax 2024-12-31 00945570 d:OtherDeferredTax 2023-12-31 00945570 d:PatentsTrademarksLicencesConcessionsSimilar d:OwnedIntangibleAssets 2024-01-01 2024-12-31 00945570 d:ComputerSoftware d:OwnedIntangibleAssets 2024-01-01 2024-12-31 00945570 g:PoundSterling 2024-01-01 2024-12-31 xbrli:shares iso4217:GBP xbrli:pure
Registered number: 00945570









H.D. SHARMAN LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

 
H.D. SHARMAN LIMITED
 

COMPANY INFORMATION


Directors
Mr J Moeller-Jensen 
Mr B Horgan 
Mr M De Rozarieux 




Company secretary
M De Rozarieux



Registered number
00945570



Registered office
High Peak Works
Chapel-en-le-Frith

High Peak

Derbyshire

SK23 0HW




Independent auditors
Price Bailey LLP
Chartered Accountants & Statutory Auditors

Tennyson House

Cambridge Business Park

Cambridge

CB4 0WZ





 
H.D. SHARMAN LIMITED
 

CONTENTS



Page
Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditors' Report
5 - 8
Statement of Income and Retained Earnings
9
Balance Sheet
10
Notes to the Financial Statements
11 - 25


 
H.D. SHARMAN LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction
 
This is a balanced and comprehensive review of the performance of our business during the year and its position at the year end consistent with the size and nature of our business and is written in the context of the risks and uncertainties we face.

Business review
 
Financial overview
The Company achieved an operating profit of £3,572,583, ahead of the 2023 comparative of £2,673,325. This upturn has resulted from the 11.8% turnover growth achieved in 2024 coupled with  a 1.8% gross margin increase arising from procurement and productivity initiatives.
The Directors are pleased with the performance of the business and except a similar level of performance for the year ahead subject to influence of external economic factors. 
Turnover
Management consider the results for the year to be in line with the overall performance of the market.
Operating costs
Following on from a challenging year in 2023, during which the Company experienced inflation across both raw material and employee costs, stability returned in 2024. As a result, through careful management, operating cost growth was restricted to 5.7%, around 6% below turnover growth. 

Principal risks and uncertainties
 
The management of the business and the nature of the Companys strategy are subject to a number of risks. Management have set out below the principal risks facing the business. Where possible, processes are in place to monitor and mitigate such risks.
Economic downturn
The success of the business is reliant on demand within the commercial repair maintenance and improvement sector (RMI) demand. An economic downturn, resulting in reduction of RMI demand, will have an impact on the turnover achieved by the Company. In response to this risk, management aim to keep abreast of economic downturn, marketing and pricing strategies are modified to reflect the new market conditions.
Manufacturing of products
The Company is reliant on its products being of a high quality and relevance to the demands of the RMI sector. This exposes the Company to risks in a number of areas which are dependant on its manufacturing in respect of:
- quality of the products.
- pricing of the products.
- range of types of product offered.
Management are confident that the products produced will be of a continued high quality and will meet the markets demands.

Page 1

 
H.D. SHARMAN LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Financial key performance indicators
 
The Company measures its financial performance in several areas as follows:
1. Within its offering the busines manufactures, markets and sells a number of roof and gutter refurbishment systems to contractors through a number of different sales channels. In order to measure performance, and to support strategic development, the business segmentally reports its sales and profitability by product.
2. The key aspect of the Company's working capital management is credit control and cash collection. Sales ledger performance is reported monthly with particular focus on overdue balances.

Other key performance indicators
 
The Company measure its non-financial performance in several areas as follows:
1. New roofing contractor business generation is reported through the numbers trained each month as approved installers. In regards to specification led business generation the number of CPDs delivered to surveyors and other specifiers is published within monthly KPI information.
2. Conversion rate of quotes to orders is reports weekly within the business and is used to drive CRM activity and to understand lost business. The latter is recorded by reason code to best understand market dynamics.
3. Quality control is a business priority throughout the business and monthly meetings take place during which production and non-conformances are quantified in order to identify trends and improvement ideas. The same focus is also applied to customer service issues.


This report was approved by the board on 11 May 2025 and signed on its behalf.



................................................
Mr M De Rozarieux
Director

Page 2

 
H.D. SHARMAN LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

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

Principal activity

The principal activity of the company during the year was the manufacture of specialist plastic and agricultural products.

Directors

The directors who served during the year were:

Mr J Moeller-Jensen 
Mr B Horgan 
Mr M De Rozarieux 

Results and dividends

The profit for the year, after taxation, amounted to £2,753,906 (2023 - £1,829,648).

The directors have issued a final dividend of £Nil (2023 - £1,840,688).

Future developments

The company plans to continue to grow across all business activities, capitalising on opportunities as deemed appropriate.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Page 3

 
H.D. SHARMAN LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

No post balance sheet events to note. 

Auditors

Under section 487(2) of the Companies Act 2006Price Bailey LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board and signed on its behalf.
 





................................................
Mr M De Rozarieux
Director

Date: 11 May 2025

Page 4

 
H.D. SHARMAN LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF H.D. SHARMAN LIMITED
 

Opinion


We have audited the financial statements of H.D. Sharman Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Income and Retained Earnings, the Balance Sheet and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


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 Auditors' 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


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 Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Page 5

 
H.D. SHARMAN LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF H.D. SHARMAN LIMITED (CONTINUED)


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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.


Page 6

 
H.D. SHARMAN LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF H.D. SHARMAN LIMITED (CONTINUED)


Auditors' 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 Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations. This included those regulations directly related to the financial
statements, including financial reporting, tax legislation and industry regulations including GDPR, employment
law, health and safety and warranties.
We communicated the identified laws and regulations with the audit team and remained alert to any indications
of non-compliance throughout the audit. We carried out specific procedures to address the risks identified.
These included the following:
 - agreeing the financial statement disclosures to underlying supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
 - enquiries of management including those responsible for key regulations;
 - performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;.
In addressing the risk of management override of controls, we carried out testing of journal entries and other
adjustments for appropriateness, assessing whether the judgements made in making accounting estimates are
indicative of a potential bias and evaluating the business rationale of significant transactions outside the normal
course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including
those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions
reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves
intentional concealment, forgery, collusion, omission or misrepresentation as to what extent the audit was considered capable of detecting irregularities, including fraud.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Page 7

 
H.D. SHARMAN LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF H.D. SHARMAN LIMITED (CONTINUED)


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Paul Cullen FCCA (Senior Statutory Auditor)
  
for and on behalf of
Price Bailey LLP
 
Chartered Accountants
Statutory Auditors
  
Tennyson House
Cambridge Business Park
Cambridge
CB4 0WZ

 
Date: 
14 May 2025
Page 8

 
H.D. SHARMAN LIMITED
 

STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
Restated 2023
Note
£
£

  

Turnover
 4 
13,680,022
12,236,473

Cost of sales
  
(5,421,189)
(5,086,626)

Gross profit
  
8,258,833
7,149,847

Distribution costs
  
(1,449,431)
(1,833,167)

Administrative expenses
  
(3,361,819)
(2,893,355)

Operating profit
 5 
3,447,583
2,423,325

Interest receivable and similar income
 9 
7
72

Interest payable and similar expenses
 10 
(2,356)
(4,818)

Profit before tax
  
3,445,234
2,418,579

Tax on profit
 11 
(691,328)
(588,931)

Profit after tax
  
2,753,906
1,829,648

  

  

Retained earnings at the beginning of the year
  
7,555,616
7,566,656

Profit for the year
  
2,753,906
1,829,648

Dividends declared and paid
 12 
(2,222,619)
(1,840,688)

Retained earnings at the end of the year
  
8,086,903
7,555,616

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of income and retained earnings.

The notes on pages 11 to 25 form part of these financial statements.

Page 9

 
H.D. SHARMAN LIMITED
REGISTERED NUMBER: 00945570

BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
Restated 2023
Note
£
£

Fixed assets
  

Intangible assets
 13 
99,816
115,297

Tangible fixed assets
 14 
1,135,845
1,046,063

  
1,235,661
1,161,360

Current assets
  

Stocks
 15 
2,512,525
2,038,484

Debtors
 16 
12,060,815
8,354,174

Cash at bank and in hand
 17 
971,230
917,570

  
15,544,570
11,310,228

Creditors: amounts falling due within one year
 18 
(8,523,863)
(4,761,540)

Net current assets
  
 
 
7,020,707
 
 
6,548,688

Total assets less current liabilities
  
8,256,368
7,710,048

Provisions for liabilities
  

Deferred tax
  
(167,365)
(152,332)

  
 
 
(167,365)
 
 
(152,332)

Net assets
  
8,089,003
7,557,716


Capital and reserves
  

Called up share capital 
 21 
2,100
2,100

Profit and loss account
  
8,086,903
7,555,616

  
8,089,003
7,557,716


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 11 May 2025.




................................................
Mr M De Rozarieux
Director

The notes on pages 11 to 25 form part of these financial statements.

Page 10

 
H.D. SHARMAN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.


General information

H.D. Sharman Limited is a private company limited by shares incorporated in England and Wales, United Kingdom. The address of the registered office is High Peak Works, Chapel-en-le-Frith, High Peak, Derbyshire, SK23 0HW. 
The principal activity of the Company continues to be that of the manufacture of specialist plastic and agricultural products.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The Company's functional and presentational currency is GBP. 
The financial statements have been rounded to the nearest pound.

The following principal accounting policies have been applied:

 
2.2

Financial reporting standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

- the requirements of Section 7 Statement of Cash Flows;
   - the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d). 

This information is included in the consolidated financial statements of H.D. Sharman Group Limited as at 31 December 2024 and these financial statements may be obtained from H.D. Sharman Group Limited, High Peaks Works, Chapel-en-le-Frith, High Peak, Derbyshire, SK23 0HW.

 
2.3

Going concern

The directors have prepared projected budgets and on the basis of these budgets, the directors have considered the company to continue to operate as a going concern. The directors are confident that the company will have sufficient funds to meet its liabilities as they fall due for a period of not less than 12 months from the date of approval of these financial statements.
The directors continue to monitor cashflow closely and exercise tight credit control and, based on their forecasts and built up reserves, consider it appropriate to continue to prepare the financial statements on a going concern basis.

 
2.4

Turnover

Turnover comprises revenue recognised by the company in respect of goods supplied during the period, exclusive of Value Added Tax and trade discounts. Turnover is recognised when the company has transferred the significant risks and rewards of ownership to the buyer, which is upon dispatch.

Page 11

 
H.D. SHARMAN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.5

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Amortisation is provided on the following basis:
           Computer software                     -           20 - 25%  Straight line
 

 
2.6

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is provided on the following basis:

Leasehold improvements
-
5 - 15% Straight line
Motor vehicles
-
20% Straight line
Plant, machinery, fixtures, fittings and office equipment
-
5 - 15% Straight line

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Income and Retained Earnings.

 
2.7

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. 

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in statement of income and retained earnings.

 
2.8

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 12

 
H.D. SHARMAN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.9

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.10

Financial instruments

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Basic 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 the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

 
2.11

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank
loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at
amortised cost using the effective interest method.

Page 13

 
H.D. SHARMAN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.12

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Income and Retained Earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.13

Finance costs

Finance costs are charged to statement of income and retained earnings over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.14

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

 
2.15

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.16

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 14

 
H.D. SHARMAN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.17

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.18

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.19

Corporation and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


 
2.20

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

Page 15

 
H.D. SHARMAN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

On the application of the Company's accounting policies, the directors are required to make significant judgements, estimates and assumptions. The estimates and associated assumptions are based on historical experience and other factors, including expectations of future events that are beleived to be reasonable under the circumstances. Although these estimates are based on management's best knowledge of the amount, events or actions, actual results ultimately may differ from those estimates.
Estimates and judgements are continually evaluated. 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 revision and future periods where the revision affects both current and future periods.
Details of the company's significant accounting judgements and critical accouting estimates include:
Tangible fixed assets
Each year the company reviews the estimated useful lives and residual values of tangible fixed assets and these are adjusted if appropriate. The depreciation rates are calculated according to the useful economic life that management believe to be appropriate based on the nature of the asset in operation.
Impairment of stock and work in progress
Management have assessed the need to write off or provide against any specific items based on the levels held at period end and the expected sales of such items in the immediate period post year end. Management take into account historic sales data at the date the estimate is made.
Impairment of trade debtors
The recoverability has been assessed at the period end and up until the date of signing these financial statements. Management have based the decision to provide for any amounts based on their judgement of all the available information and their experience of the specific nature of the trade debtor in question.
Categorising leases
In categorising leases as finance leases of operating leases, management make judgements to whether significant risks and rewards of ownership to the company as lessee.


4.


Turnover

2% of the Company's turnover (2023 - 2%) is attributable to geographical markets outside of the United Kingdom.

Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
13,440,280
12,051,805

Rest of the world
239,742
184,668

13,680,022
12,236,473


Page 16

 
H.D. SHARMAN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Research & development charged as an expense
188,000
179,622

Exchange differences
254
-

Depreciation of tangible fixed assets
119,424
106,918

Amortisation of intangible assets, including goodwill
15,482
18,319

Fees payable to the Company's auditor and its associates for the audit of the Company's annual financial statements
25,300
22,000

Defined contribution pension cost
195,518
209,078


6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
25,300
22,000

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.


7.


Employees

2024
2023
£
£

Wages and salaries
2,650,249
2,558,424

Social security costs
261,589
249,040

Cost of defined contribution scheme
195,518
209,078

3,107,356
3,016,542


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Directors
3
3



Production
54
53

57
56

Page 17

 
H.D. SHARMAN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
181,819
146,847

Company contributions to defined contribution pension schemes
12,270
8,663

194,089
155,510


During the year retirement benefits were accruing to 1 director (2023 - 1) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £181,819 (2023 - £146,847).
The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £12,270 (2023 - £8,663).


9.


Interest receivable

2024
2023
£
£


Other interest receivable
7
72


10.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
2,356
4,818

Page 18

 
H.D. SHARMAN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

11.


Taxation


2024
Restated 2023
£
£

Corporation tax


Current tax on profits for the year
676,295
532,537


Deferred tax


Origination and reversal of timing differences
15,033
56,394


Tax on profit
691,328
588,931

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 25%). The differences are explained below:

2024
Restated 2023
£
£


Profit on ordinary activities before tax
3,445,234
2,418,579


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)
861,309
604,645

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
16,576
(35,747)

Capital allowances for year in excess of depreciation
(6,664)
(37,596)

Changes in provisions leading to an increase (decrease) in the tax charge
(2,269)
2,025

Group relief
(192,657)
(790)

Deferred tax
15,033
56,394

Total tax charge for the year
691,328
588,931


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


12.


Dividends

2024
2023
£
£


Declared in the year
2,222,619
1,840,688

Page 19

 
H.D. SHARMAN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

13.


Intangible assets




Patents
Computer software
Total

£
£
£



Cost


At 1 January 2024
188,962
192,041
381,003



At 31 December 2024

188,962
192,041
381,003



Amortisation


At 1 January 2024
125,000
140,706
265,706


Charge for the year on owned assets
-
15,482
15,482



At 31 December 2024

125,000
156,188
281,188



Net book value



At 31 December 2024
63,962
35,853
99,815



At 31 December 2023
63,962
51,335
115,297



Page 20
 


 
H.D. SHARMAN LIMITED


 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024


14.


Tangible fixed assets






Leasehold improvements
Plant and machinery
Motor vehicles
Fixtures and fittings
Office equipment
Total

£
£
£
£
£
£



Cost 


At 1 January 2024
590,935
817,747
23,995
57,566
168,617
1,658,860


Additions
88,060
113,568
-
4,337
14,596
220,561


Disposals
-
(21,505)
-
-
-
(21,505)



At 31 December 2024

678,995
909,810
23,995
61,903
183,213
1,857,916



Depreciation


At 1 January 2024
120,384
352,935
9,598
44,473
85,407
612,797


Charge for the year on owned assets
34,056
61,037
4,799
934
18,598
119,424


Disposals
-
(10,150)
-
-
-
(10,150)



At 31 December 2024

154,440
403,822
14,397
45,407
104,005
722,071



Net book value



At 31 December 2024
524,555
505,988
9,598
16,496
79,208
1,135,845



At 31 December 2023
470,551
464,812
14,397
13,093
83,210
1,046,063

Page 21
 
H.D. SHARMAN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

15.


Stocks

2024
2023
£
£

Raw materials and consumables
1,852,938
999,722

Work in progress (goods to be sold)
61,059
88,739

Finished goods and goods for resale
598,528
950,023

2,512,525
2,038,484



16.


Debtors

2024
2023
£
£



Trade debtors
1,383,422
1,129,028

Amounts owed by group undertakings
10,370,690
6,871,427

Prepayments and accrued income
306,703
353,719

12,060,815
8,354,174



17.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
971,230
917,570



18.


Creditors: Amounts falling due within one year

2024
Restated 2023
£
£

Trade creditors
194,399
311,949

Amounts owed to group undertakings
7,856,900
3,990,265

Corporation tax
195,818
45,072

Other taxation and social security
205,160
305,368

Other creditors
24,586
21,317

Accruals and deferred income
47,000
87,569

8,523,863
4,761,540


All bank loans and overdrafts of the Group are secured by a fixed charge over property, plant and equipment, goodwill, share capital and stock. There is also a floating charge over any current or future assets the business owns which is not covered by the fixed charge. Security has also been provided by fellow subsidiary companies included within the Group.

Page 22

 
H.D. SHARMAN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

19.


Financial instruments

2024
2023
£
£

Financial assets


Financial assets measured at fair value through profit or loss
971,230
917,570

Financial assets that are debt instruments measured at amortised cost
11,754,112
8,000,455

12,725,342
8,918,025


Financial liabilities


Financial liabilities measured at amortised cost
(8,122,885)
(4,161,100)


Financial assets measured at fair value through profit or loss comprise of cash at bank and in hand.


Financial assets that are debt instruments measured at amortised cost comprise trade debtors, amounts owed by group undertakings, and other debtors.


Financial liabilities measured at amortised cost comprise trade creditors, amounts owed to group undertakings, other creditors and accruals.


20.


Deferred taxation




2024
2023


£

£






At beginning of year
(152,332)
(95,938)


Charged to profit or loss
(15,033)
(56,394)



At end of year
(167,365)
(152,332)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(152,332)
(155,388)

Other short term timing differences
(15,033)
3,056

(167,365)
(152,332)


21.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



2,100 (2023 - 2,100) Ordinary shares of £1.00 each
2,100
2,100
Page 23

 
H.D. SHARMAN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

21.Share capital (continued)




22.


Prior year adjustment

Prior year adjustments have been made in the year impacting administrative expenses, tax on profit, and creditors: amounts falling due within one year. 
The impact to the Statement of Income and Retained Earnings was to decrease profits by £191,199 for the year ended 31 December 2023.
The impact to the Balance Sheet was to decrease reserves by £191,199 for the year ended 31 December 2023.
During the current year, management identified an accounting error on internal charges and dividends in the year ended 31 December 2023.
As a result, H D Sharman Limited paid an additional £250,000 management charge which related to 2023 to parent company H D Sharman Group Limited. The impact of this is a decrease in profit of £250,000 and an increase in amounts owed to group undertakings of £250,000.
In addition, the above adjustment has led to a restatement of the corporation tax return for the year ended 31 December 2023. As a result, the corporation tax charge for the year has decreased by £58,801 and the corporation tax creditor has decreased by £58,801.


23.


Contingent liabilities

The Company has provided a cross guarantee on loans of the parent company H.D. Sharman Group Limited totalling £2,750,000 (2023 - £4,250,000). Security is held over all assets of H.D. Sharman Limited.


24.


Pension commitments

The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £195,518 (2023 - £209,078).
Contributions totalling £15,404 (2023 - £13,288) were payable to the fund at the balance sheet date and are included in creditors.

Page 24

 
H.D. SHARMAN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

25.


Commitments under operating leases

At 31 December 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
223,741
223,741

Later than 1 year and not later than 5 years
395,627
504,641

Later than 5 years
438,116
438,116

1,057,484
1,166,498


26.


Related party transactions

The Company has taken advantage of the exemption from the requirement to disclose transactions with wholly owned group companies.
During the year the company was charged management fees of £386,000 (2023 - £375,000), from Bridgehill Partners Capital 1 Ltd, a company in which Mr J Moeller-Jensen and Mr B Horgan are directors.


27.


Post balance sheet events

No post balance sheet events to note. 


28.


Controlling party

The parent undertaking is Gutterline Services Limited, a company registered in England and Wales, United Kingdom. The ultimate controlling party is H.D. Sharman Group Limited.
Consolidated financial statements for H.D. Sharman Group Limited can be obtained from High Peaks Works, Chapel-en-le-Frith, High Peak, Derbyshire, SK23 0HW.


Page 25