IRIS Accounts Production v25.1.3.33 05660221 Board of Directors 1.9.23 31.8.24 31.8.24 Medium entities Groundworks and civil engineering. true false true true false false true false These accounts have been prepared in accordance with the provisions applicable to companies subject to the medium-sized companies regime. Ordinary 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh056602212023-08-31056602212024-08-31056602212023-09-012024-08-31056602212022-08-31056602212022-09-012023-08-31056602212023-08-3105660221ns15:EnglandWales2023-09-012024-08-3105660221ns14:PoundSterling2023-09-012024-08-3105660221ns10:Director12023-09-012024-08-3105660221ns10:PrivateLimitedCompanyLtd2023-09-012024-08-3105660221ns10:MediumEntities2023-09-012024-08-3105660221ns10:Audited2023-09-012024-08-3105660221ns10:Medium-sizedCompaniesRegimeForDirectorsReport2023-09-012024-08-3105660221ns10:Medium-sizedCompaniesRegimeForAccounts2023-09-012024-08-3105660221ns10:FullAccounts2023-09-012024-08-3105660221ns10:OrdinaryShareClass12023-09-012024-08-3105660221ns10:Director22023-09-012024-08-3105660221ns10:Director32023-09-012024-08-3105660221ns10:Director42023-09-012024-08-3105660221ns10:RegisteredOffice2023-09-012024-08-3105660221ns5:CurrentFinancialInstruments2024-08-3105660221ns5:CurrentFinancialInstruments2023-08-3105660221ns5:ShareCapital2024-08-3105660221ns5:ShareCapital2023-08-3105660221ns5:RetainedEarningsAccumulatedLosses2024-08-3105660221ns5:RetainedEarningsAccumulatedLosses2023-08-3105660221ns5:ShareCapital2022-08-3105660221ns5:RetainedEarningsAccumulatedLosses2022-08-3105660221ns5:RetainedEarningsAccumulatedLosses2022-09-012023-08-3105660221ns5:RetainedEarningsAccumulatedLosses2023-09-012024-08-3105660221ns5:PlantEquipmentOtherAssetsUnderOperatingLeases2023-09-012024-08-3105660221ns5:PlantEquipmentOtherAssetsUnderOperatingLeases2022-09-012023-08-3105660221ns5:OwnedAssets2023-09-012024-08-3105660221ns5:OwnedAssets2022-09-012023-08-3105660221ns5:LeasedAssets2023-09-012024-08-3105660221ns5:LeasedAssets2022-09-012023-08-3105660221ns5:HirePurchaseContracts2023-09-012024-08-3105660221ns5:HirePurchaseContracts2022-09-012023-08-3105660221ns10:OrdinaryShareClass12022-09-012023-08-3105660221ns5:PlantMachinery2023-08-3105660221ns5:FurnitureFittings2023-08-3105660221ns5:PlantMachinery2023-09-012024-08-3105660221ns5:FurnitureFittings2023-09-012024-08-3105660221ns5:PlantMachinery2024-08-3105660221ns5:FurnitureFittings2024-08-3105660221ns5:PlantMachinery2023-08-3105660221ns5:FurnitureFittings2023-08-3105660221ns5:WithinOneYearns5:CurrentFinancialInstruments2024-08-3105660221ns5:WithinOneYearns5:CurrentFinancialInstruments2023-08-3105660221ns5:DeferredTaxation2023-08-3105660221ns5:DeferredTaxation2023-09-012024-08-3105660221ns5:DeferredTaxation2024-08-3105660221ns10:OrdinaryShareClass12024-08-3105660221ns5:RetainedEarningsAccumulatedLosses2023-08-31056602213ns10:Director32023-08-31056602213ns10:Director32022-08-31056602213ns10:Director32023-09-012024-08-31056602213ns10:Director32022-09-012023-08-31056602213ns10:Director32024-08-31056602213ns10:Director32023-08-31056602214ns10:Director42023-08-31056602214ns10:Director42022-08-31056602214ns10:Director42023-09-012024-08-31056602214ns10:Director42022-09-012023-08-31056602214ns10:Director42024-08-31056602214ns10:Director42023-08-31
REGISTERED NUMBER: 05660221 (England and Wales)


















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

FOR

HANNON BROTHERS LIMITED

HANNON BROTHERS LIMITED (REGISTERED NUMBER: 05660221)






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

Statement of Comprehensive Income 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


HANNON BROTHERS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 AUGUST 2024







DIRECTORS: C Clark
D W Hannon
A Llewellyn
W J Hannon



REGISTERED OFFICE: Stonebridge Golf Club
Somers Road
Meriden
Coventry
CV7 7PL



REGISTERED NUMBER: 05660221 (England and Wales)



AUDITORS: Flint & Thompson
Statutory Auditors
2 Manor Square
Solihull
West Midlands
B91 3PX



ACCOUNTANTS: Thursfield & Co
Holbeche House
437 Shirley Road
Birmingham
B27 7NX

HANNON BROTHERS LIMITED (REGISTERED NUMBER: 05660221)

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
Hannon Brothers Limited's principal activity continues to be that of Groundworks and Civil Engineering.

The company's turnover has increased despite the continued effects of the global pandemic and challenging business conditions. The company continues to trade profitably and as such the business is in a healthy position.

We consider that our key financial performance indicators are those that communicate the financial performance and strength of the business as a whole, these being turnover and operating margin.

The company had a turnover of £24.5 million (2023: £21.7 million), gross profit margin of 7.4% (2023: 12.3%) and operating profit of 1.9% (2023: 0.8%). Net assets increased by £455k.

PRINCIPAL RISKS AND UNCERTAINTIES
We continue to monitor the principal risks and uncertainties which the business and the wider industry are subject to such as:-

- Unforeseen events or circumstances. The continued effects of the Ukraine war has impacted many local economies and businesses around the globe due to the inflation of goods and services. However the company has continued to trade at capacity and continues making profit.

- Risk of bad debts. There is a continued risk of bad debts due to the risk of the economy.

- Slow down or recession in the economy. There is a noticeable slowdown in the economy, however we are prepared incase of recession.

-Cost of living crisis. The cost of living crisis is continuing to impact on the business as well as many other businesses, but plans are in place to adapt

The outlook for the business is promising as it continues to be engaged in profitable contracts.

ON BEHALF OF THE BOARD:





A Llewellyn - Director


21 May 2025

HANNON BROTHERS LIMITED (REGISTERED NUMBER: 05660221)

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.

DIVIDENDS
No dividends will be distributed for the year ended 31 August 2024.

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

C Clark
D W Hannon
A Llewellyn
W J Hannon

POLITICAL DONATIONS AND EXPENDITURE
The company made no political donations during the year.

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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Flint & Thompson, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





A Llewellyn - Director


21 May 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HANNON BROTHERS LIMITED

Opinion
We have audited the financial statements of Hannon Brothers Limited (the 'company') for the year ended 31 August 2024 which comprise the Statement of 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).

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
HANNON BROTHERS 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:

Our approach was as follows:

- We assessed the risks of material misstatement in respect of fraud by making enquiries to management during the audit.

- Based on the results of our risk assessment we designed our audit procedures to identify non-compliance with such laws and regulations identified below:

- We corroborated our enquiries through review of documentation from external inspection.

We considered the risk of fraud through management override and, in response, we incorporated testing of manual journal entries throughout the period into our audit approach.


We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and determined that the most significant is that which relates to The Health and Safety at Work Act 1974 and as compliance is fundamental to the operating aspects of the company to continue its business, or to avoid material penalties.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HANNON BROTHERS 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.




Peter Haughton FCCA MAAT (Senior Statutory Auditor)
for and on behalf of Flint & Thompson
Statutory Auditors
2 Manor Square
Solihull
West Midlands
B91 3PX

21 May 2025

HANNON BROTHERS LIMITED (REGISTERED NUMBER: 05660221)

STATEMENT OF COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 31 AUGUST 2024

2024 2023
Notes £    £   

TURNOVER 24,555,996 21,650,796

Cost of sales 22,733,615 18,979,584
GROSS PROFIT 1,822,381 2,671,212

Administrative expenses 1,351,281 2,497,812
OPERATING PROFIT 4 471,100 173,400

Interest receivable and similar income 4,428 -
475,528 173,400

Interest payable and similar expenses 5 - 1,145
PROFIT BEFORE TAXATION 475,528 172,255

Tax on profit 6 113,529 44,255
PROFIT FOR THE FINANCIAL YEAR 361,999 128,000

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

361,999

128,000

HANNON BROTHERS LIMITED (REGISTERED NUMBER: 05660221)

BALANCE SHEET
31 AUGUST 2024

2024 2023
Notes £    £    £   
FIXED ASSETS
Tangible assets 8 57,320 164,690

CURRENT ASSETS
Debtors 9 5,124,105 5,972,045
Cash at bank 3,290,901 1,675,616
8,415,006 7,647,661
CREDITORS
Amounts falling due within one year 10 3,870,204 3,557,882
NET CURRENT ASSETS 4,544,802 4,089,779
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,602,122

4,254,469

PROVISIONS FOR LIABILITIES 11 20,964 35,310
NET ASSETS 4,581,158 4,219,159

CAPITAL AND RESERVES
Called up share capital 12 100 100
Retained earnings 13 4,581,058 4,219,059
SHAREHOLDERS' FUNDS 4,581,158 4,219,159

The financial statements were approved by the Board of Directors and authorised for issue on 21 May 2025 and were signed on its behalf by:





A Llewellyn - Director


HANNON BROTHERS LIMITED (REGISTERED NUMBER: 05660221)

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 4,109,695 4,109,795

Changes in equity
Dividends - (18,636 ) (18,636 )
Total comprehensive income - 128,000 128,000
Balance at 31 August 2023 100 4,219,059 4,219,159

Changes in equity
Total comprehensive income - 361,999 361,999
Balance at 31 August 2024 100 4,581,058 4,581,158

HANNON BROTHERS LIMITED (REGISTERED NUMBER: 05660221)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,573,413 (1,121,184 )
Interest element of hire purchase or finance
lease rental payments paid

-

(1,145

)
Tax paid (47,888 ) (176,084 )
Net cash from operating activities 1,525,525 (1,298,413 )

Cash flows from investing activities
Purchase of tangible fixed assets (1,767 ) -
Sale of intangible fixed assets - 4,281
Sale of tangible fixed assets 87,099 4,332
Interest received 4,428 -
Net cash from investing activities 89,760 8,613

Cash flows from financing activities
Capital repayments in year - (9,820 )
Amount withdrawn by directors - (25,364 )
Equity dividends paid - (18,636 )
Net cash from financing activities - (53,820 )

Increase/(decrease) in cash and cash equivalents 1,615,285 (1,343,620 )
Cash and cash equivalents at beginning of
year

2

1,675,616

3,019,236

Cash and cash equivalents at end of year 2 3,290,901 1,675,616

HANNON BROTHERS LIMITED (REGISTERED NUMBER: 05660221)

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
£    £   
Profit before taxation 475,528 172,255
Depreciation charges 14,929 36,023
Loss/(profit) on disposal of fixed assets 7,109 (4,281 )
Finance costs - 1,145
Finance income (4,428 ) -
493,138 205,142
Decrease/(increase) in trade and other debtors 847,940 (73,324 )
Increase/(decrease) in trade and other creditors 232,335 (1,253,002 )
Cash generated from operations 1,573,413 (1,121,184 )

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 3,290,901 1,675,616
Year ended 31 August 2023
31/8/23 1/9/22
£    £   
Cash and cash equivalents 1,675,616 3,019,236


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1/9/23 Cash flow At 31/8/24
£    £    £   
Net cash
Cash at bank 1,675,616 1,615,285 3,290,901
1,675,616 1,615,285 3,290,901
Total 1,675,616 1,615,285 3,290,901

HANNON BROTHERS LIMITED (REGISTERED NUMBER: 05660221)

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

1. STATUTORY INFORMATION

Hannon Brothers 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.

The presentation currency of the financial statements is the Pound Sterling (£).


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.

Significant judgements and estimates
In the application of the group's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of revision and future periods where the revision affects both current and future periods.

It is the opinion of the directors that there are no material estimates or judgements.

Turnover
Revenue is recognised on construction contracts by reference to the services performed to date. Where the outcome of the contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract at the balance sheet date (determined by surveys of work performed by quantity surveyors in conjunction with clients).

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write down the value of each asset over its useful economical life or, if held under a financing lease, over the lease term, whichever is shorter

Plant and machinery - 15% or 25% per annum of the net book value
Computer costs - 25% of the net book value
Fixtures and fittings - 25% of the net book value

Financial instruments
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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.


HANNON BROTHERS LIMITED (REGISTERED NUMBER: 05660221)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2024

2. ACCOUNTING POLICIES - continued
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.

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.

Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash generating unit to which the asset belongs. The cash generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or group of assets.

3. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 445,290 415,025
Other pension costs 8,061 8,011
453,351 423,036

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

Managerial and office 7 7
Directors 4 4
11 11

2024 2023
£    £   
Directors' remuneration - -

HANNON BROTHERS LIMITED (REGISTERED NUMBER: 05660221)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2024

4. OPERATING PROFIT

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

2024 2023
£    £   
Hire of plant and machinery 5,815,980 2,493,548
Depreciation - owned assets 14,929 29,691
Depreciation - assets on hire purchase contracts or finance leases - 6,332
Loss/(profit) on disposal of fixed assets 7,109 (4,281 )
Auditors' remuneration 9,995 9,545

5. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Hire purchase - 1,145

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 127,875 47,951
Under/(over) provision in prior years - (48 )
Total current tax 127,875 47,903

Deferred tax (14,346 ) (3,648 )
Tax on profit 113,529 44,255

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
£    £   
Profit before tax 475,528 172,255
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 21.440%)

118,882

36,931

Effects of:
Expenses not deductible for tax purposes 7,424 2,361
Depreciation in excess of capital allowances 1,569 8,652
Adjustments to tax charge in respect of previous periods - (41 )
Deferred tax (14,346 ) (3,648 )
Total tax charge 113,529 44,255

HANNON BROTHERS LIMITED (REGISTERED NUMBER: 05660221)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2024

7. DIVIDENDS
2024 2023
£    £   
Ordinary shares of £1 each
Final - 18,636

8. TANGIBLE FIXED ASSETS
Fixtures
Plant and and
machinery fittings Totals
£    £    £   
COST
At 1 September 2023 649,112 18,591 667,703
Additions - 1,767 1,767
Disposals (436,418 ) - (436,418 )
At 31 August 2024 212,694 20,358 233,052
DEPRECIATION
At 1 September 2023 490,268 12,745 503,013
Charge for year 13,026 1,903 14,929
Eliminated on disposal (342,210 ) - (342,210 )
At 31 August 2024 161,084 14,648 175,732
NET BOOK VALUE
At 31 August 2024 51,610 5,710 57,320
At 31 August 2023 158,844 5,846 164,690

9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 3,724,927 4,433,976
Other debtors 370,220 370,220
VAT 888,212 1,017,956
Prepayments 140,746 149,893
5,124,105 5,972,045

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade creditors 2,784,891 3,402,574
Corporation tax 127,938 47,951
Social security & other taxes 16,183 22,667
Other creditors 3,923 7,341
Wages account 20 20
Accrued expenses 937,249 77,329
3,870,204 3,557,882

HANNON BROTHERS LIMITED (REGISTERED NUMBER: 05660221)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2024

11. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 20,964 35,310

Deferred
tax
£   
Balance at 1 September 2023 35,310
Credit to Statement of Comprehensive Income during year (14,346 )
Balance at 31 August 2024 20,964

12. CALLED UP SHARE CAPITAL

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

13. RESERVES
Retained
earnings
£   

At 1 September 2023 4,219,059
Profit for the year 361,999
At 31 August 2024 4,581,058

14. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

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

2024 2023
£    £   
D W Hannon
Balance outstanding at start of year - (14,279 )
Amounts advanced - 29,000
Amounts repaid - (14,721 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year - -

W J Hannon
Balance outstanding at start of year - (11,085 )
Amounts advanced - 15,000
Amounts repaid - (3,915 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year - -

HANNON BROTHERS LIMITED (REGISTERED NUMBER: 05660221)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2024

15. RELATED PARTY DISCLOSURES

During the year the company entered into the following transactions with related parties:

Transaction value Balance owed by/ (owed to )
2024 2023 2024 2023
£    £    £    £   
HCL Developments Ltd Nil 758,000 Nil Nil
HCL Services Ltd 4,416,883 1,515,230 356,000 356,000


16. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is D W Hannon and W J Hannon.