| REGISTERED NUMBER: 09797043 (England and Wales) |
| Group Strategic Report, Report of the Director and |
| Audited Consolidated Financial Statements for the Year Ended 31 August 2024 |
| for |
| HS Group 2000 Limited |
| REGISTERED NUMBER: 09797043 (England and Wales) |
| Group Strategic Report, Report of the Director and |
| Audited Consolidated Financial Statements for the Year Ended 31 August 2024 |
| for |
| HS Group 2000 Limited |
| HS Group 2000 Limited (Registered number: 09797043) |
| Contents of the Consolidated Financial Statements |
| for the Year Ended 31 August 2024 |
| Page |
| Company Information | 1 |
| Group Strategic Report | 2 |
| Report of the Director | 3 |
| Report of the Independent Auditors | 4 |
| Consolidated Income Statement | 7 |
| Consolidated Other Comprehensive Income | 8 |
| Consolidated Balance Sheet | 9 |
| Company Balance Sheet | 10 |
| Consolidated Statement of Changes in Equity | 11 |
| Company Statement of Changes in Equity | 12 |
| Consolidated Cash Flow Statement | 13 |
| Notes to the Consolidated Cash Flow Statement | 14 |
| Notes to the Consolidated Financial Statements | 15 |
| HS Group 2000 Limited |
| Company Information |
| for the Year Ended 31 August 2024 |
| DIRECTOR: |
| SECRETARY: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Sidings House |
| Sidings Court |
| Lakeside |
| Doncaster |
| DN4 5NU |
| HS Group 2000 Limited (Registered number: 09797043) |
| Group Strategic Report |
| for the Year Ended 31 August 2024 |
| The directors presents their strategic report of the company and the Group for the year ended 31 August 2024. |
| REVIEW OF BUSINESS |
| The group 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 monitors the key risks facing the group and evaluate the controls in place to manage these risks. |
| The main risks and uncertainties facing the group 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 group maintains cash reserves should they ever be required. |
| KEY PERFORMANCE INDICATORS |
| The Directors employs 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 the group has 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 Group, 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: |
| HS Group 2000 Limited (Registered number: 09797043) |
| Report of the Director |
| for the Year Ended 31 August 2024 |
| The director presents his report with the financial statements of the company and the group for the year ended 31 August 2024. |
| PRINCIPAL ACTIVITY |
| The principal activity of the group in the year under review was that of suppliers of wholesale and retail motor parts. |
| DIVIDENDS |
| Interim dividends per share were paid during the year as follows: |
| Ordinary £1 | - | £1450 |
| Ordinary C £1 | - | £40000 |
| The total distribution of dividends for the year ended 31 August 2024 will be £ 185,000 . |
| DIRECTOR |
| Following the year-end, D A Starling was appointed as a director on 21st February 2025. |
| STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
| The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
| Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
| The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is 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. |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group'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: |
| Report of the Independent Auditors to the Members of |
| HS Group 2000 Limited |
| Opinion |
| We have audited the financial statements of HS Group 2000 Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 August 2024 and of the group's 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
| Conclusions relating to going concern |
| In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
| Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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 director with respect to going concern are described in the relevant sections of this report. |
| Other information |
| The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
| Report of the Independent Auditors to the Members of |
| HS Group 2000 Limited |
| Matters on which we are required to report by exception |
| In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director. |
| 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the parent company financial statements are not in agreement with the accounting records and returns; or |
| - | certain disclosures of director's remuneration specified by law are not made; or |
| - | we have not received all the information and explanations we require for our audit. |
| Responsibilities of director |
| As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
| In preparing the financial statements, the director is responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or the parent company or to cease operations, or has 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: |
| - 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 |
| HS Group 2000 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. |
| for and on behalf of |
| Sidings House |
| Sidings Court |
| Lakeside |
| Doncaster |
| DN4 5NU |
| HS Group 2000 Limited (Registered number: 09797043) |
| Consolidated 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 | 2,946,052 |
| 3,942,644 | 3,099,857 |
| 1,363,456 | 1,026,338 |
| Other operating income | 2,754 | 2,754 |
| OPERATING PROFIT | 5 | 1,366,210 | 1,029,092 |
| Interest receivable and similar income | 7 | 15,559 | 9,910 |
| 1,381,769 | 1,039,002 |
| Interest payable and similar expenses | 8 | 500 | 545 |
| PROFIT BEFORE TAXATION | 1,381,269 | 1,038,457 |
| Tax on profit | 9 | 307,167 | 232,916 |
| PROFIT FOR THE FINANCIAL YEAR |
| Profit attributable to: |
| Owners of the parent | 1,074,102 | 805,541 |
| HS Group 2000 Limited (Registered number: 09797043) |
| Consolidated Other Comprehensive Income |
| for the Year Ended 31 August 2024 |
| 2024 | 2023 |
| (Unaudited) |
| Notes | £ | £ |
| PROFIT FOR THE YEAR | 1,074,102 | 805,541 |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 1,074,102 | 805,541 |
| Total comprehensive income attributable to: |
| Owners of the parent | 1,074,102 | 805,541 |
| HS Group 2000 Limited (Registered number: 09797043) |
| Consolidated Balance Sheet |
| 31 August 2024 |
| 2024 | 2023 |
| (Unaudited) |
| Notes | £ | £ | £ |
| FIXED ASSETS |
| Tangible assets | 12 | 922,835 | 768,020 |
| Investments | 13 | - | - |
| 922,835 | 768,020 |
| CURRENT ASSETS |
| Stocks | 14 | 2,485,253 | 1,664,023 |
| Debtors | 15 | 1,645,253 | 1,291,770 |
| Cash at bank and in hand | 1,838,128 | 1,309,839 |
| 5,968,634 | 4,265,632 |
| CREDITORS |
| Amounts falling due within one year | 16 | 2,862,055 | 1,878,212 |
| NET CURRENT ASSETS | 3,106,579 | 2,387,420 |
| TOTAL ASSETS LESS CURRENT LIABILITIES | 4,029,414 | 3,155,440 |
| CREDITORS |
| Amounts falling due after more than one year | 17 | (16,406 | ) | (31,359 | ) |
| PROVISIONS FOR LIABILITIES | 19 | (218,888 | ) | (219,062 | ) |
| NET ASSETS | 3,794,120 | 2,905,019 |
| CAPITAL AND RESERVES |
| Called up share capital | 20 | 105 | 105 |
| Retained earnings | 21 | 3,794,015 | 2,904,914 |
| SHAREHOLDERS' FUNDS | 3,794,120 | 2,905,019 |
| The financial statements were approved by the director and authorised for issue on 9 May 2025 and were signed by: |
| Mr P R Starling - Director |
| HS Group 2000 Limited (Registered number: 09797043) |
| Company Balance Sheet |
| 31 August 2024 |
| 2024 | 2023 |
| Notes | £ | £ | £ |
| FIXED ASSETS |
| Tangible assets | 12 |
| Investments | 13 |
| CURRENT ASSETS |
| Debtors | 15 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CAPITAL AND RESERVES |
| Called up share capital | 20 |
| SHAREHOLDERS' FUNDS |
| Company's profit for the financial year | 185,000 | 361,800 |
| The financial statements were approved by the director and authorised for issue on |
| HS Group 2000 Limited (Registered number: 09797043) |
| Consolidated 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 | 205 | 2,481,173 | 2,481,378 |
| Changes in equity |
| Issue of share capital | (100 | ) | - | (100 | ) |
| Dividends | - | (381,800 | ) | (381,800 | ) |
| Total comprehensive income | - | 805,541 | 805,541 |
| Balance at 31 August 2023 | 105 | 2,904,914 | 2,905,019 |
| Changes in equity |
| Dividends | - | (185,000 | ) | (185,000 | ) |
| Total comprehensive income | - | 1,074,102 | 1,074,102 |
| Balance at 31 August 2024 | 105 | 3,794,016 | 3,794,121 |
| HS Group 2000 Limited (Registered number: 09797043) |
| Company 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 |
| Changes in equity |
| Dividends | - | ( |
) | ( |
) |
| Total comprehensive income | - |
| Balance at 31 August 2023 |
| Changes in equity |
| Dividends | - | ( |
) | ( |
) |
| Total comprehensive income | - |
| Balance at 31 August 2024 |
| HS Group 2000 Limited (Registered number: 09797043) |
| Consolidated Cash Flow Statement |
| for the Year Ended 31 August 2024 |
| 2024 | 2023 |
| (Unaudited) |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | 1,191,434 | 970,276 |
| Interest paid | (500 | ) | (545 | ) |
| Tax paid | (166,482 | ) | (93,299 | ) |
| Net cash from operating activities | 1,024,452 | 876,432 |
| 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 | 528,289 | 101,108 |
| Cash and cash equivalents at beginning of year | 2 | 1,309,839 | 1,309,839 |
| Cash and cash equivalents at end of year | 2 | 1,838,128 | 1,309,839 |
| HS Group 2000 Limited (Registered number: 09797043) |
| Notes to the Consolidated 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 | 1,038,457 |
| 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 | 1,164,996 |
| Increase in stocks | (821,230 | ) | (436,022 | ) |
| Increase in trade and other debtors | (384,414 | ) | (133,693 | ) |
| Increase in trade and other creditors | 858,908 | 374,995 |
| Cash generated from operations | 1,191,434 | 970,276 |
| 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 | 1,309,839 |
| 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 |
| HS Group 2000 Limited (Registered number: 09797043) |
| Notes to the Consolidated Financial Statements |
| for the Year Ended 31 August 2024 |
| 1. | STATUTORY INFORMATION |
| HS Group 2000 Limited is a |
| 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 Group's functional and presentational currency is GBP, values are rounded to the nearest pound. |
| After reviewing the Group's forecasts and projections, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The Group therefore adopts the going concern basis in preparing its financial statements. |
| Basis of consolidation |
| The Group and all its subsidiary undertakings, are consolidated. Intercompany transactions and balances among Group companies are eliminated in full. |
| 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. |
| HS Group 2000 Limited (Registered number: 09797043) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 August 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Tangible fixed assets |
| Short leasehold | - |
| Tenant improvements | - |
| Plant and machinery | - |
| Fixtures and fittings | - |
| Motor vehicles | - |
| Computer equipment | - |
| All fixed assets are initially recorded at cost. Property, plant and equipment is used in the Group'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 Group'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. |
| 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. |
| HS Group 2000 Limited (Registered number: 09797043) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 August 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Impairment of financial assets |
| At each balance sheet date, the director assesses 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 Group. |
| 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 director does 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 Consolidated 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. |
| 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 Group operates a defined contribution pension scheme. Contributions payable to the Group's pension scheme are charged to profit or loss in the period to which they relate. |
| HS Group 2000 Limited (Registered number: 09797043) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 August 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| 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 Group 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 Group. |
| 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 | 19 |
| Castleford | 10 | 4 |
| 2024 | 2023 |
| (Unaudited) |
| £ | £ |
| Director's remuneration | 25,064 | 25,064 |
| Director's pension contributions to money purchase schemes | 164,000 | 43,200 |
| HS Group 2000 Limited (Registered number: 09797043) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 August 2024 |
| 4. | EMPLOYEES AND DIRECTORS - continued |
| 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). |
| 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 Group. |
| 7. | INTEREST RECEIVABLE AND SIMILAR INCOME |
| 2024 | 2023 |
| (Unaudited) |
| £ | £ |
| Deposit 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 |
| HS Group 2000 Limited (Registered number: 09797043) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 August 2024 |
| 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 |
| 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 | 1,038,457 |
| 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. | INDIVIDUAL INCOME STATEMENT |
| As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
| The parent company's profit for the year was £185,000 (2023: £361,800). |
| 11. | DIVIDENDS |
| Total interim dividends were declared during the year of £185,000 (2023 - £381,800). |
| HS Group 2000 Limited (Registered number: 09797043) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 August 2024 |
| 12. | TANGIBLE FIXED ASSETS |
| Group |
| 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 |
| 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 |
| HS Group 2000 Limited (Registered number: 09797043) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 August 2024 |
| 12. | TANGIBLE FIXED ASSETS - continued |
| Group |
| 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 |
| 13. | FIXED ASSET INVESTMENTS |
| Company |
| Shares in |
| group |
| undertakings |
| £ |
| COST |
| At 1 September 2023 |
| and 31 August 2024 |
| NET BOOK VALUE |
| At 31 August 2024 |
| At 31 August 2023 |
| The following were the principal subsidiary undertakings of the Company: |
| H S Components Limited Ordinary 100% - Supply of motor parts |
| 14. | STOCKS |
| Group |
| 2024 | 2023 |
| (Unaudited |
| £ | £ |
| Finished goods | 2,485,253 | 1,664,023 |
| HS Group 2000 Limited (Registered number: 09797043) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 August 2024 |
| 15. | DEBTORS |
| Group | Company |
| 2024 | 2023 | 2024 | 2023 |
| (Unaudited) |
| £ | £ | £ | £ |
| Amounts falling due within one year: |
| Trade debtors | 1,290,398 | 995,596 |
| Other debtors | 69,680 | 151,992 |
| Directors' current accounts | 24,251 | 55,182 | - | - |
| Prepayments | 147,210 | 86,000 |
| 1,531,539 | 1,288,770 |
| Amounts falling due after more than one year: |
| Other debtors | 113,714 | 3,000 |
| Aggregate amounts | 1,645,253 | 1,291,770 |
| 16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group |
| 2024 | 2023 |
| (Unaudited |
| £ | £ |
| Hire purchase contracts (see note 18) | 12,197 | 11,979 |
| Trade creditors | 2,110,435 | 1,376,403 |
| 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 | 1,878,212 |
| 17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| Group |
| 2024 | 2023 |
| (Unaudited |
| £ | £ |
| Hire purchase contracts (see note 18) | 9,291 | 21,489 |
| Deferred government grants | 7,115 | 9,870 |
| 16,406 | 31,359 |
| HS Group 2000 Limited (Registered number: 09797043) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 August 2024 |
| 18. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Group |
| 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 |
| Group |
| 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 |
| 19. | PROVISIONS FOR LIABILITIES |
| Group |
| 2024 | 2023 |
| (Unaudited |
| £ | £ |
| Deferred tax | 218,888 | 219,062 |
| Group |
| Deferred |
| tax |
| £ |
| Balance at 1 September 2023 | 219,062 |
| Accelerated capital allowances | (174 | ) |
| Balance at 31 August 2024 | 218,888 |
| 20. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2024 | 2023 |
| value: | £ | £ |
| Ordinary | £1 | 100 | 100 |
| Ordinary B | £1 | 2 | 2 |
| Ordinary C | £1 | 1 | 1 |
| Ordinary D | £1 | 2 | 2 |
| 105 | 105 |
| HS Group 2000 Limited (Registered number: 09797043) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 August 2024 |
| 21. | RESERVES |
| Group |
| 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 |
| Company |
| Retained |
| earnings |
| £ |
| Profit for the year |
| Dividends | ( |
) |
| At 31 August 2024 |
| 22. | DIRECTOR'S 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. |
| 23. | RELATED PARTY DISCLOSURES |
| A loan of £161,397 (2023: £150,487) was made by H S Components Limited to Prestige Development Services Limited, 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% |
| 24. | ULTIMATE CONTROLLING PARTY |
| The ultimate controlling party is the Director of the company and their associates by virtue of their joint 100% shareholding. |
| 25. | GOVERNMENT GRANTS |
| A capital investment grant to H S Components Limited 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. |