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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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HD SHARMAN GROUP LIMITED
COMPANY INFORMATION
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HD SHARMAN GROUP LIMITED
CONTENTS
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HD SHARMAN GROUP LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
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.
This is the holding company for its wholly owned subsidiaries Gutterline Services Limited, H D Sharman Limited, ITAC Limited, Delvemade Limited and Seamsil Limited.
Financial overview The Group achieved an operating profit of 3,509,983, comparing favourably with the 2023 comparative of £2,586,067. This performance has resulted from the 6.4% turnover growth achieved in 2023 and an improvement in gross margin from 57% in 2023 to 61% in 2024. The Directors are pleased with the performance of the business and expect 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.
The management of the business and the nature of the Group's 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 Group. 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 Group is reliant on its products being of a high quality and relevance to the demands of the RMI sector. This exposes the Group 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.
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HD SHARMAN GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The Group 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 Group's working capital management is credit control and cash collection. Sales ledger performance is reported monthly with particular focus on overdue balances.
The Group 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 and signed on its behalf.
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HD SHARMAN GROUP 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.
The profit for the year, after taxation, amounted to £2,391,776 (2023 - £1,497,004).
The final dividend payment made during the year was £2,222,619 (2023 - £1,840,688).
The directors who served during the year were:
The Group plans to continue to grow across its business activities, capitalising on opportunities as deemed appropriate.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group'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 Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Group keeps employees informed of matters affecting them as employees and the financial and economic factors affecting the performance of the Group by the method of ad-hoc internal communications.
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HD SHARMAN GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
No post balance sheet events to note.
Under section 487(2) of the Companies Act 2006, Price 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.
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HD SHARMAN GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HD SHARMAN GROUP LIMITED
We have audited the financial statements of HD Sharman Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Consolidated Statement of Income and Retained Earnings, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity, the Consolidated Analysis of Net Debt and the related notes, including a summary of 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).
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 Group 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.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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HD SHARMAN GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HD SHARMAN GROUP LIMITED (CONTINUED)
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 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group 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 Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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HD SHARMAN GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HD SHARMAN GROUP LIMITED (CONTINUED)
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 Group 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.
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HD SHARMAN GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HD SHARMAN GROUP LIMITED (CONTINUED)
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 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.
for and on behalf of
Chartered Accountants
Statutory Auditors
Tennyson House
Cambridge Business Park
CB4 0WZ
Date: 14 May 2025
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HD SHARMAN GROUP LIMITED
CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2024
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HD SHARMAN GROUP LIMITED
REGISTERED NUMBER: 11052295
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2024
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HD SHARMAN GROUP LIMITED
REGISTERED NUMBER: 11052295
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 11 May 2025.
The notes on pages 19 to 40 form part of these financial statements.
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HD SHARMAN GROUP LIMITED
REGISTERED NUMBER: 11052295
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
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HD SHARMAN GROUP LIMITED
REGISTERED NUMBER: 11052295
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 11 May 2025.
The notes on pages 19 to 40 form part of these financial statements.
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HD SHARMAN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
15.Tangible fixed assets (continued)
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HD SHARMAN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Subsidiary undertakings (continued)
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HD SHARMAN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The aggregate amount of creditors for which security has been given totalled £2,750,000 (2023 - £4,250,000) (Group and Company). The security given relates to a charge over 1,718,000 ordinary shares in Gutterline Services Limited and 40,000 ordinary shares in ITAC Limited and a cross guarantee over the assets of Gutterline Services Limited, H.D. Sharman Limited, Delvemade Limited and Seamsil Limited.
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HD SHARMAN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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HD SHARMAN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
During the year the following share were alloted at par:
73,620 A Ordinary shares of £0.01 each were issued paid for cash of £220,690.
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HD SHARMAN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Share premium account
issuing of shares are deducted from share premium.
Capital redemption reserve
Other reserves
Amounts used to issue bonus shares and consideration for the purchase of own shares are also deducted from the merger reserve.
Profit and loss account
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HD SHARMAN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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HD SHARMAN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Prior year adjustments have been made in the year impacting the Company Balance Sheet only requiring a restatement to debtors due within one year, creditors: amounts falling due within one year, and profit for the year.
The impact to the Consolidated Statement of Income and Retained Earnings and Balance Sheet was £Nil (£Nil : 31 December 2023). The impact to the Company's Balance Sheet was to increase profits by £191,199 and increase reserves by £191,199. During the current year, management identified an accounting error on internal charges and dividends in the year ended 31 December 2023. As a result, wholly owned subsidiary undertaking H D Sharman Limited paid an additional £250,000 management charge which related to 2023 to H D Sharman Group Limited. The impact of this is an increase in Company profit of £250,000 and an increase in amounts owed by group undertakings of £250,000. In addition, this has led to a restatement of the corporation tax return for the year ended 31 December 2023; the corporation tax charge has increased by £58,801 and the corporation tax creditor has increased by £58,801.
All bank loans and overdrafts of the Group are secured by fixed and floating charges). The security given relates to a charge over 1,718,000 ordinary shares in Gutterline Services Limited and 40,000 ordinary shares in ITAC Limited and a cross guarantee over the assets of Gutterline Services Limited, H.D. Sharman Limited, Delvemade Limited and Seamsil Limited.
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 £312,345 (2023 - £312,732).
Contributions totalling £15,404 (2023 - £13,288) were payable to the fund at the balance sheet date and are included in creditors.
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HD SHARMAN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
There is no ultimate controlling party.
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