Year Ended
Registration number:
Hexagon Holdings Limited
Contents
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Consolidated Statement of Income and Retained Earnings |
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Consolidated Balance Sheet |
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Balance Sheet |
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Consolidated Statement of Cash Flows |
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Notes to the Financial Statements |
Hexagon Holdings Limited
Group Strategic Report
Year Ended 30 September 2024
The directors present their strategic report for the year ended 30 September 2024.
Principal activity
The principal activity of the group is that of processing, packaging and sale of premium drinking water and associated products.
Fair review of the business
Turnover has increased on the prior year which was due to an increase in the number of customers the group are providing services to. There were no acquistions in 2024 and the group continues to trade well.
The consolidated balance sheet has strengthened by £1k and remains strong at £3,965k (2023 - £3,963k). The shareholders are satisfied with the financial performance and the financial position of the group.
The group's key financial and other performance indicators during the year were as follows:
|
Unit |
2024 |
2023 |
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Turnover |
£'000 |
9,357 |
7,633 |
Principal risks and uncertainties
The group is exposed to a variety of financial risks, the most significant of which are credit and liquidity risk. The policy towards these financial risks is determined by the board, and then adopted and enforced by the management team.
Financial risk management objectives and policies
Liquidity risk
The group's trading activities expose the group to various risks, the most significant of which are linked to liquidity and cash flow. To mitigate these risks the group carefully controls costs and manages cash and stock levels through forecasting and budgeting. The experience of management ensures that the group can quickly adapt strategy as and when required.
Credit risk
The company maintains strong relationships with each of its key customers and has established credit control parameters with them. The company maintains trade indemnity insurance on the majority of its customers to cover the exposure to potential bad debts.
Approved by the
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Hexagon Holdings Limited
Group Directors' Report
Year Ended 30 September 2024
The directors present their report and the for the year ended 30 September 2024.
Directors
The directors who held office during the year were as follows:
Going concern
The financial statements have been prepared on a going concern basis. The directors acknowledge the company's net current liability position of £303,846 as at the year end (2023 - £711,961). The director's have satisfied themselves on the validity of applying the going concern basis of preparation as assurances have been received from the company's subsidiaries that the amount owed from them totaling £628,355 can be called upon for repayment should it impact the going concern of the company. In addition, the subsidiaries have provided assurances that they will provide financial support to the company to ensure its financial obligations are met as and when they fall due.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Approved by the
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Hexagon Holdings Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Hexagon Holdings Limited
Independent Auditor's Report to the Members of Hexagon Holdings Limited
Opinion
We have audited the financial statements of Hexagon Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024, which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Cash Flows, and 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 the parent company's affairs as at 30 September 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 auditor 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 and parent company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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.
Hexagon Holdings Limited
Independent Auditor's Report to the Members of Hexagon Holdings Limited
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Directors' Report.
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 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 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the 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 directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.
Hexagon Holdings Limited
Independent Auditor's Report to the Members of Hexagon Holdings Limited
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
As part of our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to the company. We gained an understanding of the company and the industry in which the company operates as part of this assessment to identify the key laws and regulations affecting the company.
We identified the principal risks of non-compliance with laws and regulations as relating to non compliance with the Health and Safety Act. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, including, but not limited to the reporting framework (FRS 102 and Companies Act 2006) and the relevant tax compliance regulations in the UK. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements including the risk of override of controls and determined that the principal risks were relating to fraudulent financial reporting in particular the potential overstatement of expenditure.
We discussed with management how the compliance with these laws and regulations is monitored and obtained copies of the key policies and procedures in place. We also identified the individuals who have responsibility for ensuring that the company complies with laws and regulations and deals with reporting any issues if they arise. As part of our planning procedures, we assessed the risk of any non compliance with laws and regulations on the company’s ability to continue trading and the risk of material misstatement to the accounts.
We also addressed the risk of management override of internal controls, including testing of journals and evaluating whether there was evidence of bias by the Directors that represented a risk of material misstatement due to fraud.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate omissions, collusion, forgery, misrepresentations, or the override of internal controls. We are also less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Hexagon Holdings Limited
Independent Auditor's Report to the Members of Hexagon Holdings 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 an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
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Melville Building East
Unit 18, 23 Royal William Yard
Devon
PL1 3GW
Hexagon Holdings Limited
Consolidated Statement of Income and Retained Earnings for the Year Ended 30 September 2024
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Note |
2024 |
2023 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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Administrative expenses |
( |
( |
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Operating profit |
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Other interest receivable and similar income |
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Interest payable and similar charges |
( |
( |
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Profit before tax |
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Taxation |
( |
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Profit for the financial year |
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Loss attributable to: |
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Owners of the company |
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Retained earnings brought forward |
(685,702) |
(1,279,438) |
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Dividends paid |
( |
- |
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Retained earnings carried forward |
(683,888) |
(685,702) |
Hexagon Holdings Limited
Consolidated Balance Sheet
30 September 2024
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Note |
2024 |
2023 |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Share premium reserve |
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Profit and loss account |
( |
( |
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Equity attributable to owners of the company |
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Shareholders' funds |
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Approved and authorised by the
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Company Registration Number: 11210932
Hexagon Holdings Limited
Balance Sheet
30 September 2024
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Note |
2024 |
2023 |
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Fixed assets |
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Tangible assets |
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Investments |
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Current assets |
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Debtors |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current liabilities |
( |
( |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Share premium reserve |
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Profit and loss account |
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Shareholders' funds |
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The company has taken the exemption in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account. The company made a profit after tax for the financial year of £506,264 (2023 - profit of £1,329,648).
Approved and authorised by the
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Company Registration Number: 11210932
Hexagon Holdings Limited
Consolidated Statement of Cash Flows
Year Ended 30 September 2024
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Note |
2024 |
2023 |
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Cash flows from operating activities |
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Profit for the year |
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Adjustments to cash flows from non-cash items |
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Depreciation and amortisation |
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Profit on disposal of tangible assets |
( |
( |
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Finance income |
( |
( |
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Finance costs |
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Income tax expense |
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( |
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Working capital adjustments |
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Decrease in stocks |
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Increase in trade debtors |
( |
( |
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Increase in trade creditors |
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Cash generated from operations |
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Income taxes paid |
( |
( |
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Net cash flow from operating activities |
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Cash flows from investing activities |
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Interest received |
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Purchase of tangible assets |
( |
( |
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Proceeds from sale of tangible assets |
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Purchase of intangible assets |
( |
- |
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Advances of loans, classified as investing activities |
- |
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Net cash flows from investing activities |
( |
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Cash flows from financing activities |
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Interest paid |
( |
( |
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Proceeds from bank borrowing draw downs |
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- |
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Repayment of bank borrowing |
( |
( |
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Proceeds from other borrowing draw downs |
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- |
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Repayment of other borrowings |
( |
( |
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Payments to finance lease creditors |
( |
( |
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Dividends paid |
( |
- |
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Net cash flows from financing activities |
( |
( |
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Net (decrease)/increase in cash and cash equivalents |
( |
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Cash and cash equivalents at 1 October |
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Cash and cash equivalents at 30 September |
308,176 |
821,684 |
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Hexagon Holdings Limited
Notes to the Financial Statements
Year Ended 30 September 2024
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
The principal place of business is:
25-26 Apple Lane
Exeter
Devon
EX2 5GL
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. There are no material departures from FRS102.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Summary of disclosure exemptions
FRS 102 grants a qualifying entity exemptions from the full requirements of FRS 102. The following exemptions have been taken in these financial statements as the company is deemed to be a qualifying entity:
The company has taken advantage of the exemption, under FRS 102 paragraph 1.12(b), from preparing a Statement of Cash Flows on the basis that it is a qualifying entity and its cash flows are included in the consolidated financial statements of the group. The company is also taking exemption from disclosure of key management personnel compensation and exemption from disclosure of related party transactions entered into between the company and other members of the Hexagon Holdings Limited group.
Hexagon Holdings Limited
Notes to the Financial Statements
Year Ended 30 September 2024
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 30 September 2024.
As a consolidated profit and loss account is published, a separate profit and loss account for the parent company is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006.
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group.
Hexagon Holdings Limited
Notes to the Financial Statements
Year Ended 30 September 2024
Judgements and key sources of estimation uncertainty
In the application of the company's accounting policies, which are described in this note, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historically known factors and experience. Management perceive a key source of estimation uncertainty to be the discounting rate applied to loan notes held by the shareholders. The discount rate applied is applied 8.12% and the carrying amount of loans at the balance sheet date is £1,520,227 (2023 - £1,952,402). Any other estimates and underlying assumptions used by management such as depreciation rates are reviewed on an ongoing basis. Any revision deemed to be required to any accounting estimates would be recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. No such changes or amendments are deemed necessary in either this or the prior period. |
The business is required under FRS102 to identify the separable intangibles purchases as part of any business combination as part of a purchase price allocation exercise. This involved valuing contracts acquired, as part of company acquisitions or trade and asset purchases, for their expected future profitability. This is an estimated based on expected returns and is therefore considered to be a key source of estimation uncertainty. Judgement is also involved in deciding which separable intangibles existed to value under this requirement of FRS102. The carrying amount at the year end is £3,212,142. |
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the company.
Tax
Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the consolidated profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Hexagon Holdings Limited
Notes to the Financial Statements
Year Ended 30 September 2024
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
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Asset class |
Depreciation method and rate |
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Leasehold Improvements |
2% - 7% straight line |
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Furniture, fittings and equipment |
20% straight line |
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Motor vehicles |
20% - 33% straight line |
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Other property, plant and equipment |
10% straight line |
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Leasehold property |
2% straight line |
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Goodwill
Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Intangible assets
Customer contracts are valued at the present value of future cash flows and amortised over the life of the contract which is assumed on average to be 10 years.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
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Asset class |
Amortisation method and rate |
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Goodwill |
10 years straight line |
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Website |
5 years straight line |
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Other intangible assets |
10 - 20 years straight line |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Stocks
Stocks are stated at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
Hexagon Holdings Limited
Notes to the Financial Statements
Year Ended 30 September 2024
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Hexagon Holdings Limited
Notes to the Financial Statements
Year Ended 30 September 2024
Financial instruments
Classification
• Short term trade and other debtors and creditors;
• Bank loans; and
• Cash and bank balances.
All financial instruments are classified as basic.
Recognition and measurement
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.
Loans from directors who are also shareholders are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.
Loans that have a zero percent interest that are from non-shareholders or corporate bodies are discounted using the weighted average cost of capital of the company.
Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.
Impairment
Financial guarantee contracts
This disclosure box set not to appear in S1A template - in full FRS102 this will need to deleted if not required
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Revenue |
The analysis of the group's revenue for the year from continuing operations is as follows:
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2024 |
2023 |
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Sale of goods and services |
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The analysis of the group's Turnover for the year by market is as follows:
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2024 |
2023 |
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UK |
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Hexagon Holdings Limited
Notes to the Financial Statements
Year Ended 30 September 2024
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Operating profit |
Arrived at after charging/(crediting)
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2024 |
2023 |
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Depreciation expense |
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Amortisation expense |
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|
|
Operating lease expense - other |
|
|
|
Profit on disposal of property, plant and equipment |
( |
( |
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2024 |
2023 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
|
2024 |
2023 |
|
|
Administration and support |
|
|
|
Sales and marketing |
|
|
|
Distribution |
|
|
|
Management |
|
|
|
|
|
Hexagon Holdings Limited
Notes to the Financial Statements
Year Ended 30 September 2024
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2024 |
2023 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
95,975 |
100,957 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
|
2024 |
2023 |
|
|
Accruing benefits under money purchase pension scheme |
|
|
|
Auditor's remuneration |
|
2024 |
2023 |
|
|
Audit of the trading company's financial statements |
21,350 |
10,500 |
|
Audit of holding company's financial statements |
3,000 |
3,000 |
|
|
|
The audit fee is borne by the company's immediate subsidiary company, Thirsty Work Limited.
|
Other interest receivable and similar income |
|
2024 |
2023 |
|
|
Interest income on bank deposits |
|
|
|
Interest payable and similar expenses |
|
2024 |
2023 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
|
Interest expense on other finance liabilities |
|
|
|
|
|
Hexagon Holdings Limited
Notes to the Financial Statements
Year Ended 30 September 2024
|
Taxation |
Tax charged/(credited) in the profit and loss account
|
2024 |
2023 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
UK corporation tax adjustment to prior periods |
|
- |
|
305,970 |
327,226 |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
( |
|
Tax expense/(receipt) in the income statement |
|
( |
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2024 |
2023 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Increase in UK and foreign current tax from adjustment for prior periods |
|
- |
|
Tax decrease from other short-term timing differences |
- |
( |
|
Other tax effects for reconcilliation between accounting profit and tax expense/(income) |
( |
( |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Deferred tax credit relating to changes in tax rates or laws |
- |
( |
|
Decrease from effect of tax incentives |
- |
( |
|
Total tax charge/(credit) |
|
( |
Hexagon Holdings Limited
Notes to the Financial Statements
Year Ended 30 September 2024
Deferred tax
Group
Deferred tax assets and liabilities
|
2024 |
Liability |
|
Difference between depreciation and capital allowances |
|
|
Short term timing differences |
|
|
|
|
2023 |
Liability |
|
Difference between depreciation and capital allowances |
|
|
Short term timing differences |
|
|
|
|
Intangible assets |
Group
|
Goodwill |
Trademarks, patents and licenses |
Other intangible assets |
Total |
|
|
Cost or valuation |
||||
|
At 1 October 2023 |
|
|
|
|
|
Additions acquired separately |
|
- |
|
|
|
At 30 September 2024 |
|
|
|
|
|
Amortisation |
||||
|
At 1 October 2023 |
|
|
|
|
|
Amortisation charge |
|
- |
|
|
|
At 30 September 2024 |
|
|
|
|
|
Carrying amount |
||||
|
At 30 September 2024 |
|
- |
|
|
|
At 30 September 2023 |
|
- |
|
|
Hexagon Holdings Limited
Notes to the Financial Statements
Year Ended 30 September 2024
|
Tangible assets |
Group
|
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Other property, plant and equipment |
Total |
|
|
Cost or valuation |
|||||
|
At 1 October 2023 |
|
|
|
|
|
|
Additions |
|
|
|
|
|
|
Disposals |
- |
- |
( |
( |
( |
|
At 30 September 2024 |
|
|
|
|
|
|
Depreciation |
|||||
|
At 1 October 2023 |
|
|
|
|
|
|
Charge for the year |
|
|
|
|
|
|
Eliminated on disposal |
- |
- |
( |
( |
( |
|
At 30 September 2024 |
|
|
|
|
|
|
Carrying amount |
|||||
|
At 30 September 2024 |
|
|
|
|
|
|
At 30 September 2023 |
|
|
|
|
|
Included within the net book value of land and buildings above is £600,656 (2023 - £453,146) in respect of long leasehold land and buildings.
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
|
2024 |
2023 |
|
|
Motor vehicles |
599,229 |
458,079 |
|
Plant and machinery |
791,678 |
597,791 |
|
1,390,907 |
1,055,870 |
Hexagon Holdings Limited
Notes to the Financial Statements
Year Ended 30 September 2024
Company
|
Plant and machinery |
|
|
Cost or valuation |
|
|
At 1 October 2023 |
|
|
At 30 September 2024 |
|
|
Depreciation |
|
|
At 1 October 2023 |
|
|
Charge for the year |
|
|
At 30 September 2024 |
|
|
Carrying amount |
|
|
At 30 September 2024 |
|
|
At 30 September 2023 |
|
|
Investments |
Group
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the group holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
|
2024 |
2023 |
|||
|
|
C/O Francis Clark LLP
|
Ordinary shares |
|
|
|
England and Wales |
||||
|
|
C/O Francis Clark LLP
|
Ordinary shares |
|
|
|
England and Wales |
||||
Hexagon Holdings Limited
Notes to the Financial Statements
Year Ended 30 September 2024
* indicates direct investment of the company
Subsidiary undertakings
|
Thirsty Work Limited The principal activity of Thirsty Work Limited is |
|
Thirsty Work Watercoolers Limited The principal activity of Thirsty Work Watercoolers Limited is |
Company
|
2024 |
2023 |
|
|
Investments in subsidiaries |
|
|
|
Subsidiaries |
£ |
|
Cost or valuation |
|
|
At 1 October 2023 |
|
|
At 30 September 2024 |
|
|
Provision |
|
|
At 1 October 2023 |
- |
|
At 30 September 2024 |
- |
|
Carrying amount |
|
|
At 30 September 2024 |
|
|
At 30 September 2023 |
|
|
Stocks |
|
Group |
Company |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
Other inventories |
|
|
- |
- |
Hexagon Holdings Limited
Notes to the Financial Statements
Year Ended 30 September 2024
|
Debtors |
|
Group |
Company |
||||
|
Note |
2024 |
2023 |
2024 |
2023 |
|
|
Trade debtors |
|
|
- |
- |
|
|
Amounts owed by related parties |
- |
- |
|
- |
|
|
Other debtors |
|
|
|
|
|
|
Prepayments |
|
|
- |
- |
|
|
|
|
|
|
||
Details of non-current trade and other debtors
Group
£80,000 (2023 - £80,000) of a loan to a connected party is classified as non current.
|
Cash and cash equivalents |
|
Group |
Company |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
Cash on hand |
|
|
- |
- |
|
Cash at bank |
|
|
- |
- |
|
|
|
- |
- |
|
Hexagon Holdings Limited
Notes to the Financial Statements
Year Ended 30 September 2024
|
Creditors |
|
Group |
Company |
||||
|
Note |
2024 |
2023 |
2024 |
2023 |
|
|
Due within one year |
|||||
|
Loans and borrowings |
|
|
|
|
|
|
Trade creditors |
|
|
- |
- |
|
|
Corporation tax |
171,483 |
315,384 |
106,916 |
103,124 |
|
|
Social security and other taxes |
|
|
- |
- |
|
|
Other creditors |
|
|
|
|
|
|
Accrued expenses |
|
|
|
|
|
|
|
|
|
|
||
|
Due after one year |
|||||
|
Loans and borrowings |
|
|
|
|
|
|
Other creditors |
|
|
- |
- |
|
|
Amounts owed to group |
- |
- |
- |
693,784 |
|
|
|
|
|
|
||
|
Loans and borrowings |
Non-current loans and borrowings
|
Group |
Company |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
Bank borrowings |
|
|
|
|
|
HP and finance lease liabilities |
|
|
- |
- |
|
Unsecured debentures |
|
- |
- |
- |
|
Other borrowings |
|
|
- |
- |
|
Other loans to connected parties |
- |
1,699,734 |
- |
- |
|
|
|
|
|
|
Hexagon Holdings Limited
Notes to the Financial Statements
Year Ended 30 September 2024
Current loans and borrowings
|
Group |
Company |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
Bank borrowings |
|
|
|
|
|
HP and finance lease liabilities |
|
|
- |
- |
|
Loan notes |
|
|
- |
- |
|
|
|
|
|
|
Group
Bank borrowings
|
|
|
|
|
|
|
|
The bank loans are secured by way of a fixed charge over the assets of the company.
Other borrowings
Other loans to connected parties is denominated in pounds sterling, £, with a nominal interest rate of 0%. The carrying amount at year end is £Nil (2023 - £1,566,000).
Another loan is denominated in pounds sterling, £, with a nominal interest rate of 12%, and the final instalment is due on 30 September 2026. The carrying amount at year end is £575,000 (2023 - £Nil).
Loan notes are denominated in pounds sterling, £, with a nominal interest rate of 0%, with no fixed maturity date. The carrying amount at year end is £1,520,227 (2023 - £1,952,402). The present value of these loans has been calculated using a discount rate of 8.12%.
Company
Bank borrowings
|
|
Hexagon Holdings Limited
Notes to the Financial Statements
Year Ended 30 September 2024
Included in the loans and borrowings are the following amounts due after more than five years:
|
2024 |
2023 |
|
|
After more than five years by instalments |
|
|
|
- |
- |
|
Analysis of cash and cash equivalents and net debt |
|
At 1 October 2023 |
Cash flow |
Non-cash movement |
At 30 September 2024 |
||
|
£ |
£ |
£ |
£ |
||
|
Cash at bank and on hand |
821,684 |
(513,508) |
- |
308,176 |
|
|
Cash and cash equivalents |
821,684 |
(513,508) |
- |
308,176 |
|
|
Hire purchase contracts |
(1,029,331) |
677,751 |
(1,080,065) |
(1,431,645) |
|
|
Loan notes |
(1,952,402) |
584,086 |
(151,911) |
(1,520,227) |
|
|
Loans to connected parties |
(1,699,734) |
1,699,734 |
- |
- |
|
|
Other loans |
(500,000) |
(500,000) |
|||
|
Bank loans |
(1,150,247) |
(918,731) |
- |
(2,068,978) |
|
|
(5,831,714) |
1,542,840 |
(1,231,976) |
(5,520,850) |
||
|
Net debt |
(5,010,030) |
1,029,332 |
(1,231,976) |
(5,212,674) |
|
Obligations under leases and hire purchase contracts |
Group
Finance leases
The total of future minimum lease payments is as follows:
|
2024 |
2023 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
Operating leases
The total of future minimum lease payments is as follows:
|
2024 |
2023 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
Later than five years |
|
|
|
|
|
Hexagon Holdings Limited
Notes to the Financial Statements
Year Ended 30 September 2024
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
|
Deferred tax and other provisions |
Group
|
Deferred tax |
|
|
At 1 October 2023 |
|
|
Reversal of timing differences |
|
|
At 30 September 2024 |
|
|
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £49,537 (2023 - £56,728).
|
Share capital |
Allotted, called up and fully paid shares
|
2024 |
2023 |
|||
|
No. |
£ |
No. |
£ |
|
|
Ordinary shares of £0.01 each of £0.01 each |
16,950 |
170 |
16,950 |
170 |
|
Commitments |
Group
Capital commitments
The total amount contracted for but not provided in the financial statements was £
|
Related party transactions |
Group
The group has taken advantage of the exemption in FRS 102 "Related Party Disclosures" from disclosing transactions with wholly owned members of the group.
Hexagon Holdings Limited
Notes to the Financial Statements
Year Ended 30 September 2024
Key management compensation
|
2024 |
2023 |
|
|
Salaries and other short term employee benefits |
|
|
Summary of transactions with entities with joint control or significant interest
Summary of transactions with other related parties
There were also additional amounts owed to a shareholder of £330,000 (2023 - £1,848,734).