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REGISTERED NUMBER: 04032009 (England and Wales)















Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 31 August 2024

for

H S Components Limited

H S Components Limited (Registered number: 04032009)






Contents of the Financial Statements
for the Year Ended 31 August 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Income Statement 7

Balance Sheet 8

Statement of Changes in Equity 9

Cash Flow Statement 10

Notes to the Cash Flow Statement 11

Notes to the Financial Statements 12


H S Components Limited

Company Information
for the Year Ended 31 August 2024







DIRECTORS: P R Starling
DA Starling





SECRETARY: DA Starling





REGISTERED OFFICE: Unit 3 Shawcross House
Horace Waller VC Parade
Shawcross Business Park
Dewsbury
West Yorkshire
WF12 7RF





REGISTERED NUMBER: 04032009 (England and Wales)





AUDITORS: Xeinadin Audit Limited
Sidings House
Sidings Court
Lakeside
Doncaster
DN4 5NU

H S Components Limited (Registered number: 04032009)

Strategic Report
for the Year Ended 31 August 2024

The directors present their strategic report for the year ended 31 August 2024.

REVIEW OF BUSINESS
The company maintains a customer-focused sales strategy, offering a wide range of high-quality motor vehicle parts and accessories through our network of four branches and online platform.

PRINCIPAL RISKS AND UNCERTAINTIES
The Directors continuously monitor the key risks facing the Company and evaluate the controls in place to manage these risks.

The main risks and uncertainties facing the Company remain local competition, shifts in consumer spending patterns, and dependence on key suppliers. These risks are mitigated through ongoing product range development and regular monitoring of business performance by the Directors.

As with any business offering credit terms to customers, there is a risk that payments may not be received when due. This risk is mitigated through credit checks, vigilant monitoring of credit limits, and the implementation of a robust credit control policy. Additionally, the company maintains cash reserves should they ever be required.

KEY PERFORMANCE INDICATORS
The Directors employ a variety of financial and non-financial performance metrics to monitor and manage the business.

The key financial measurements of our success are turnover, gross profit, net profit % before tax and cash generation.

Turnover - £13.6m (2023 - £10.5m)
Gross profit - £5.3m (2023 - £4.1m)
Net profit % before tax - 10.1% (2023 - 9.9%)
Cash generation - £0.5m (2023 - £0.1m)

The non-financial measures of the business focus upon include; staff retention, team well being and how we positively impact the local and wider community via fund raising for charitable organisations.

DEVELOPMENT AND PERFORMANCE
Turnover has increased by 29% from £10.5m to £13.6m. Despite continued pressure on operating costs, profit after tax has increased by 33% to £1.0m (2023 - £0.8m).

FINANCIAL POSITION AT THE REPORTING DATE
The balance sheet shows that the net assets have increased from £2.9m to £3.8m.

FUTURE DEVELOPMENTS
The Directors look forward to the next financial year where we have just launched our new branch in Bradford which looks likely to continue the rapid growth in revenue of the business. Investment in the future will remain key to the continued growth of the company, from investing in our employees through to the systems used in every aspect of the business.

OTHER INFORMATION AND EXPLANATIONS
The business will continue to engage with new vehicle technologies and in turn pass these learnings and technical insights on to the local Garage network that we serve.

ON BEHALF OF THE BOARD:





P R Starling - Director


8 May 2025

H S Components Limited (Registered number: 04032009)

Report of the Directors
for the Year Ended 31 August 2024

The directors present their report with the financial statements of the company for the year ended 31 August 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of suppliers of wholesale and retail motor parts.

DIVIDENDS
Dividends declared are disclosed on the statement of changes in equity.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 September 2023 to the date of this report.

P R Starling
DA Starling

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Xeinadin Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





P R Starling - Director


8 May 2025

Report of the Independent Auditors to the Members of
H S Components Limited

Opinion
We have audited the financial statements of H S Components Limited (the 'company') for the year ended 31 August 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, 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 have audited the financial statements of H S Components Limited (the 'company') for the year ended 31 August 2024 which comprise the Income Statement, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, 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).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 August 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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
H S Components Limited


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 Report of the Directors.

We have nothing to report in respect of the following matters where 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 Statement of Directors' Responsibilities set out on page three, 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 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.

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 a Report of the Auditors 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:

Audit procedures performed by the engagement team include:

- Enquiring of and obtaining written representation from management in relation to known or suspected instances of non-compliance with laws and regulations and fraud;
- Enquiring of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations;
- Evaluation of management's controls designed to prevent and detect irregularities;
- Identifying and, where relevant, testing journal entries posted by senior management or with unusual combinations;
- Assessing and evaluating the business rationale of significant transactions outside the normal course of business;
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
- Review of correspondence with regulators in so far as they are related to the financial statements;
- Incorporating elements of unpredictability into the nature, timing and/or extent of audit procedures performed.

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 Report of the Auditors.

Other matters
In the previous accounting period the directors of the company took advantage of the audit exemption under s477 of the Companies Act 2006, being a small company. Therefore, the prior period financial statements were not subject to an audit.

Report of the Independent Auditors to the Members of
H S Components Limited


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 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 a Report of the Auditors 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.




Andrew Cribb FCA (Senior Statutory Auditor)
for and on behalf of Xeinadin Audit Limited
Sidings House
Sidings Court
Lakeside
Doncaster
DN4 5NU

19 May 2025

H S Components Limited (Registered number: 04032009)

Income Statement
for the Year Ended 31 August 2024

2024 2023
(Unaudited)
Notes £    £    £   

TURNOVER 3 13,616,426 10,539,177

Cost of sales 8,310,326 6,412,982
GROSS PROFIT 5,306,100 4,126,195

Distribution costs 160,956 153,805
Administrative expenses 3,781,688 2,946,053
3,942,644 3,099,858
1,363,456 1,026,337

Other operating income 2,754 2,754
OPERATING PROFIT 5 1,366,210 1,029,091

Interest receivable and similar income 7 15,559 9,910
1,381,769 1,039,001

Interest payable and similar expenses 8 500 545
PROFIT BEFORE TAXATION 1,381,269 1,038,456

Tax on profit 9 307,167 232,916
PROFIT FOR THE FINANCIAL YEAR 1,074,102 805,540

H S Components Limited (Registered number: 04032009)

Balance Sheet
31 August 2024

2024 2023
(Unaudited)
Notes £    £    £   
FIXED ASSETS
Tangible assets 11 922,835 768,020

CURRENT ASSETS
Stocks 12 2,485,253 1,664,023
Debtors 13 1,645,248 1,291,765
Cash at bank and in hand 1,838,128 1,309,839
5,968,629 4,265,627
CREDITORS
Amounts falling due within one year 14 2,862,055 1,878,213
NET CURRENT ASSETS 3,106,574 2,387,414
TOTAL ASSETS LESS CURRENT LIABILITIES 4,029,409 3,155,434

CREDITORS
Amounts falling due after more than one year 15 (16,406 ) (31,359 )

PROVISIONS FOR LIABILITIES 17 (218,888 ) (219,062 )
NET ASSETS 3,794,115 2,905,013

CAPITAL AND RESERVES
Called up share capital 18 100 100
Retained earnings 19 3,794,015 2,904,913
SHAREHOLDERS' FUNDS 3,794,115 2,905,013

The financial statements were approved by the Board of Directors and authorised for issue on 8 May 2025 and were signed on its behalf by:





P R Starling - Director


H S Components Limited (Registered number: 04032009)

Statement of Changes in Equity
for the Year Ended 31 August 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 September 2022 100 2,481,173 2,481,273

Changes in equity
Dividends - (381,800 ) (381,800 )
Total comprehensive income - 805,540 805,540
Balance at 31 August 2023 100 2,904,913 2,905,013

Changes in equity
Dividends - (185,000 ) (185,000 )
Total comprehensive income - 1,074,102 1,074,102
Balance at 31 August 2024 100 3,794,015 3,794,115

H S Components Limited (Registered number: 04032009)

Cash Flow Statement
for the Year Ended 31 August 2024

2024 2023
(Unaudited)
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,194,188 970,281
Interest paid (500 ) (545 )
Tax paid (166,482 ) (93,299 )
Net cash from operating activities 1,027,206 876,437

Cash flows from investing activities
Purchase of tangible fixed assets (344,981 ) (359,435 )
Sale of tangible fixed assets 15,452 6,800
Interest received 15,559 9,910
Net cash from investing activities (313,970 ) (342,725 )

Cash flows from financing activities
Capital repayments in year (11,980 ) (11,761 )
Amount introduced by directors 74,931 135,962
Amount withdrawn by directors (60,144 ) (175,000 )
Equity dividends paid (185,000 ) (381,800 )
Net cash from financing activities (182,193 ) (432,599 )

Increase in cash and cash equivalents 531,043 101,113
Cash and cash equivalents at beginning of year 2 1,309,839 1,207,726

Cash and cash equivalents at end of year 2 1,838,128 1,309,839

H S Components Limited (Registered number: 04032009)

Notes to the Cash Flow Statement
for the Year Ended 31 August 2024

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024 2023
(Unaudited)
£    £   
Profit before taxation 1,381,269 1,038,456
Depreciation charges 177,540 139,182
Profit on disposal of fixed assets (2,826 ) (524 )
Government grants (2,754 ) (2,754 )
Finance costs 500 545
Finance income (15,559 ) (9,910 )
1,538,170 1,164,995
Increase in stocks (821,230 ) (436,022 )
Increase in trade and other debtors (384,414 ) (133,688 )
Increase in trade and other creditors 861,662 374,996
Cash generated from operations 1,194,188 970,281

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 August 2024
31.8.24 1.9.23
£    £   
Cash and cash equivalents 1,838,128 1,309,839
Year ended 31 August 2023
31.8.23 1.9.22
(Unaudited)
£    £   
Cash and cash equivalents 1,309,839 1,207,726


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.9.23 Cash flow At 31.8.24
£    £    £   
Net cash
Cash at bank and in hand 1,309,839 528,289 1,838,128
1,309,839 528,289 1,838,128
Debt
Finance leases (33,468 ) 11,980 (21,488 )
(33,468 ) 11,980 (21,488 )
Total 1,276,371 540,269 1,816,640

H S Components Limited (Registered number: 04032009)

Notes to the Financial Statements
for the Year Ended 31 August 2024

1. STATUTORY INFORMATION

H S Components Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The company's functional and presentational currency is GBP, values are rounded to the nearest pound.

After reviewing the company's forecasts and projections, the Directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore adopts the going concern basis in preparing its financial statements.

Turnover
Turnover is net of customer returns and is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on delivery of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Short leasehold - 20% on cost
Tenant improvements - 10% on cost
Plant and machinery - 10% on cost
Fixtures and fittings - 25% on reducing balance
Motor vehicles - 20% on cost
Computer equipment - 25% on cost

All fixed assets are initially recorded at cost. Property, plant and equipment is used in the company's principal activity for the production and supply of goods or for administrative purposes and is stated in the balance sheet under the historic cost model. This model requires the assets to be stated at cost less amounts in respect of depreciation and less any accumulated impairment losses.

At each balance sheet date, the directors review the assets to determine whether, or not, there are any indications that tangible fixed assets have suffered impairment losses. If any such indication exists, the recoverable amount of the respective asset is estimated in order to determine the extent of the impairment loss.

At each balance sheet date, the directors review the useful lives and residual values of the company's assets and these are revised as necessary. Any revisions to useful lives and residual values are applied prospectively from the date of change.

Where the recoverable amount of an asset is estimated to be less than the carrying amount in the financial statements, the carrying amount is reduced to its recoverable amount by way of an impairment loss which is charged to profit or loss immediately.

Impairment losses are reversed when the conditions giving rise to the previously recognised impairment loss cease to exist. In the situation that an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined, net of depreciation charges, had the asset not been subject to impairment in prior years. A reversal of a previously recognised impairment loss is recognised as income immediately.

H S Components Limited (Registered number: 04032009)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024

2. ACCOUNTING POLICIES - continued

Government grants
Government grants are recognised on the accrual model.

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis.

At each balance sheet date, the directors undertake a review of its stock for impairment. Where any write-downs of stock become necessary to reduce the value from cost to estimated selling price less costs to complete and sell, such write-downs are recognised as an expense in profit or loss in the period in which the write-down or loss occurs. Where such write-downs subsequently reverse, the amount of any reversal is recognised as a reduction in the amount of stocks recognised as an expense in the period in which the reversal occurs.

Impairment of financial assets
At each balance sheet date, the directors assess financial assets for indicators of impairment. Financial assets are considered to be impaired if there is objective evidence that the estimated future cash flows associated with the financial asset has been adversely affected by one, or more, events or conditions. In respect of financial assets which are carried at amortised cost, the amount of the impairment loss is the difference between the asset's carrying amount in the financial statements and the present value of the estimated future cash flows expected to be received by the company.

If, in a subsequent accounting period, the amount of the impairment loss decreases and the decrease can be related objectively to an event which takes place after the impairment was recognised, the previously recognised impairment loss is reversed through profit or loss to the extent that the carrying amount of the asset at the date the impairment is reversed does not exceed what the amortised cost would have been had no impairment loss been recognised in prior periods. In respect of financial assets carried at cost, the amount of the impairment loss is the difference between the asset's carrying amount in the financial statements and the present value of the estimated future cash flows discounted at the current market rate of return for a similar financial asset. The directors do not consider that any impairment losses recognised in respect of such financial assets will reverse.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. The entity's taxable profit differs from the profit reported in the income statement for the year because of items of income or expense which are taxable or deductible in different periods together with items which are beyond the scope of tax and hence are never taxable or deductible.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

H S Components Limited (Registered number: 04032009)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024

2. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Trade and other debtors
Trade and other debtors are initially recognised at the transaction price and subsequently measured using the amortised cost method which uses the effective interest method. At each balance sheet date, the directors assess trade and other debtors for evidence of indicators of impairment and where the directors conclude that amounts in respect of trade and other debtors are not recoverable, a specific bad debt provision is recognised. Trade debtors are not interest-bearing. Where the effects of discounting trade and other debtors is judged to be immaterial, such debtors are stated at cost less impairment losses in respect of bad debts.

Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and on hand, on-demand deposits with banks and other short-term highly liquid investments.

Trade and other creditors
Trade and other creditors are initially recognised in the financial statements at transaction price. Trade and other creditors are then subsequently measured at amortised cost using the effective interest method unless the effects of discounting would be considered immaterial. If the effects of discounting are judged to be immaterial, trade and other creditors are stated at cost. Trade creditors are not interest-bearing.

Provisions
Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2024 2023
(Unaudited)
£    £   
Motor factors 13,616,426 10,539,177
13,616,426 10,539,177

H S Components Limited (Registered number: 04032009)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024

3. TURNOVER - continued

An analysis of turnover by geographical market is given below:

2024 2023
(Unaudited)
£    £   
United Kingdom 13,496,399 10,426,250
Europe 2,362 4,983
Outside of Europe 117,665 107,944
13,616,426 10,539,177

4. EMPLOYEES AND DIRECTORS
2024 2023
(Unaudited)
£    £   
Wages and salaries 1,993,446 1,542,241
Social security costs 176,207 132,479
Other pension costs 209,863 86,039
2,379,516 1,760,759

The average number of employees during the year was as follows:
2024 2023
(Unaudited)

Head office 22 20
Dewsbury 24 20
Leeds 19 17
Castleford 10 4
75 61

2024 2023
(Unaudited)
£    £   
Directors' remuneration 25,064 25,064
Directors' pension contributions to money purchase schemes 164,000 43,200

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

In addition to the directors earnings mentioned above there was also health insurance paid for the directors totalling £3,416 (2023 - £3,202)

H S Components Limited (Registered number: 04032009)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024 2023
(Unaudited)
£    £   
Other operating leases 160,346 143,905
Depreciation - owned assets 166,184 127,827
Depreciation - assets on hire purchase contracts 11,356 11,356
Profit on disposal of fixed assets (2,826 ) (524 )
Foreign exchange differences (986 ) 3,467

6. AUDITORS' REMUNERATION
2024 2023
(Unaudited)
£    £   
Fees payable to the company's auditors for the audit of the company's financial
statements

13,000

-
Total audit fees 13,000 -

The auditors provide no other services to the company.

7. INTEREST RECEIVABLE AND SIMILAR INCOME
2024 2023
(Unaudited)
£    £   
Bank account interest 3,351 820
Other interest 12,208 9,090
15,559 9,910

8. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
(Unaudited)
£    £   
HP interest 500 545

9. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
(Unaudited)
£    £   
Current tax:
UK corporation tax 307,341 166,482

Deferred tax (174 ) 66,434
Tax on profit 307,167 232,916

H S Components Limited (Registered number: 04032009)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024

9. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
(Unaudited)
£    £   
Profit before tax 1,381,269 1,038,456
Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 -
21.515%)

345,317

223,424

Effects of:
Expenses not deductible for tax purposes 203 225
Capital allowances in excess of depreciation (38,179 ) (57,167 )
Deferred tax movement (174 ) 66,434
Total tax charge 307,167 232,916

10. DIVIDENDS
2024 2023
(Unaudited)
£    £   
Ordinary shares of 1 each
Interim 185,000 381,800

11. TANGIBLE FIXED ASSETS
Short Tenant Plant and
leasehold improvements machinery
£    £    £   
COST
At 1 September 2023 6,140 478,060 14,090
Additions 3,802 118,652 2,666
Disposals - - -
At 31 August 2024 9,942 596,712 16,756
DEPRECIATION
At 1 September 2023 2,763 133,365 7,436
Charge for year 1,228 47,806 1,434
Eliminated on disposal - - -
At 31 August 2024 3,991 181,171 8,870
NET BOOK VALUE
At 31 August 2024 5,951 415,541 7,886
At 31 August 2023 3,377 344,695 6,654

H S Components Limited (Registered number: 04032009)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024

11. TANGIBLE FIXED ASSETS - continued

Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
COST
At 1 September 2023 39,110 434,171 175,385 1,146,956
Additions 8,176 189,650 22,035 344,981
Disposals - (16,835 ) - (16,835 )
At 31 August 2024 47,286 606,986 197,420 1,475,102
DEPRECIATION
At 1 September 2023 22,530 85,036 127,806 378,936
Charge for year 4,247 96,087 26,738 177,540
Eliminated on disposal - (4,209 ) - (4,209 )
At 31 August 2024 26,777 176,914 154,544 552,267
NET BOOK VALUE
At 31 August 2024 20,509 430,072 42,876 922,835
At 31 August 2023 16,580 349,135 47,579 768,020

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST
At 1 September 2023
and 31 August 2024 56,780
DEPRECIATION
At 1 September 2023 14,905
Charge for year 11,356
At 31 August 2024 26,261
NET BOOK VALUE
At 31 August 2024 30,519
At 31 August 2023 41,875

12. STOCKS
2024 2023
(Unaudited)
£    £   
Finished goods 2,485,253 1,664,023

H S Components Limited (Registered number: 04032009)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024

13. DEBTORS
2024 2023
(Unaudited)
£    £   
Amounts falling due within one year:
Trade debtors 1,290,398 995,596
Other debtors 69,675 151,987
Directors' current accounts 24,251 55,182
Prepayments 147,210 86,000
1,531,534 1,288,765

Amounts falling due after more than one year:
Other debtors 113,714 3,000

Aggregate amounts 1,645,248 1,291,765

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
(Unaudited)
£    £   
Hire purchase contracts (see note 16) 12,197 11,979
Trade creditors 2,110,435 1,376,404
Tax 307,341 166,482
Social security and other taxes 46,536 38,791
VAT 112,553 213,469
Pension liability 8,800 6,946
Credit cards 26,716 17,496
Directors' current accounts - 16,144
Accrued expenses 234,723 27,748
Deferred government grants 2,754 2,754
2,862,055 1,878,213

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024 2023
(Unaudited)
£    £   
Hire purchase contracts (see note 16) 9,291 21,489
Deferred government grants 7,115 9,870
16,406 31,359

H S Components Limited (Registered number: 04032009)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024

16. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2024 2023
(Unaudited
£    £   
Net obligations repayable:
Within one year 12,197 11,979
Between one and five years 9,291 21,489
21,488 33,468

Non-cancellable operating leases
2024 2023
(Unaudited)
£    £   
Within one year 185,752 151,666
Between one and five years 330,352 349,935
516,104 501,601

17. PROVISIONS FOR LIABILITIES
2024 2023
(Unaudited)
£    £   
Deferred tax 218,888 219,062

Deferred
tax
£   
Balance at 1 September 2023 219,062
Accelerated capital allowances (174 )
Balance at 31 August 2024 218,888

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
100 Ordinary 1 100 100

H S Components Limited (Registered number: 04032009)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024

19. RESERVES
Retained
earnings
£   

At 1 September 2023 2,904,913
Profit for the year 1,074,102
Dividends (185,000 )
At 31 August 2024 3,794,015

20. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 August 2024 and 31 August 2023:

2024 2023
(Unaudited)
£    £   
P R Starling
Balance outstanding at start of year 55,182 -
Amounts advanced 44,883 55,182
Amounts repaid (75,814 ) -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 24,251 55,182

The loan is repayable on demand. Interest of 2.25% was charged using the average balance method.

21. RELATED PARTY DISCLOSURES

A loan of £161,397 (2023: £150,487) was made to Prestige Development Services Ltd, a company controlled by the Directors,
Mr P Starling and Mrs D Starling. Interest has been charged on the loan at Bank of England base rate plus 2%.

22. ULTIMATE CONTROLLING PARTY

The controlling party is HS Group 2000 Limited.

HS Group 2000 Limited is based inside of the UK and its address is as follows:

Unit 3 Shawcross House Horace Waller Vc Parade
Shawcross Business Park
Dewsbury
West Yorkshire
England
WF12 7RF

The ultimate controlling party is the Director of the company and their associates by virtue of their joint 100% shareholding in HS Group 2000 Limited, which owns 100% of the shareholding in HS Components Limited.

23. GOVERNMENT GRANTS

A capital investment grant to the company is recognised over 10 years in line with the depreciation of the assets to which it relates. £2,754 (2023 - £2,754) has been recognised in the Income Statement.