REGISTERED NUMBER: 13515433 (England and Wales) |
| GROB & CO HOLDINGS LTD |
| GROUP STRATEGIC REPORT, |
| REPORT OF THE DIRECTOR AND |
| CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED |
| 30TH SEPTEMBER 2024 |
REGISTERED NUMBER: 13515433 (England and Wales) |
| GROB & CO HOLDINGS LTD |
| GROUP STRATEGIC REPORT, |
| REPORT OF THE DIRECTOR AND |
| CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED |
| 30TH SEPTEMBER 2024 |
GROB & CO HOLDINGS LTD (REGISTERED NUMBER: 13515433) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 | to | 3 |
Report of the Director | 4 | to | 6 |
Report of the Independent Auditors | 7 | to | 9 |
Consolidated Income Statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Statement of Financial Position | 12 |
Company Statement of Financial Position | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Statement of Cash Flows | 16 |
Notes to the Consolidated Statement of Cash Flows | 17 | to | 18 |
Notes to the Consolidated Financial Statements | 19 | to | 38 |
GROB & CO HOLDINGS LTD |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
20 Eversley Road |
Bexhill on Sea |
East Sussex |
TN40 1HE |
GROB & CO HOLDINGS LTD (REGISTERED NUMBER: 13515433) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
The director presents his strategic report of the company and the group for the year ended 30th September 2024. |
REVIEW OF BUSINESS |
The board are pleased to present the Group results for the financial year ended 30 September 2024. |
A customer to one of the subsidiaries went into Administration on the 20th September 2024. Our financial exposure was limited and unpaid debt on two projects were written off during the period to 30th September 2024. |
A new subsidiary Company was established during the period named LeFactory Ltd who are the manufacturers of the product for the Group. In the six months of trading to 30th September 2024, the Company generated a small profit pre tax and continue to expand production facilities into the next financial year. |
Our Order book is strong and we continue to win larger Airside projects as is the strategy for the Group. |
The Group are fully committed to its Net Zero Strategy and aim to become Net Zero by 2030. |
In 2023 the Group became Carbon Neutral (PAS2060 : 2014) and are working with its sustainability partner in planning the road map to Net Zero. So far the Group have introduced: Solar Panels at the Eastbourne site, Electric Company Car Policy and EV Chargers at Harlow, Eastbourne and Polegate sites, HVO Commercial Fleet and Fleetboard Manager Software, Green Steel and Digitalising of processes to reduce paper consumptions. Our work in this area will continue and future updates will be provided as well as promoted on digital platforms. |
The Board acknowledges the contributions made by all of its employees and thanks them for their continuing efforts on behalf of the Group. |
PRINCIPAL RISKS, UNCERTAINTIES AND FUTURE DEVELOPMENTS |
Long term contract management: The risks that the Group are exposed to depend on the size and complexity of the project together with the legal form of the contract. The development and retention of high quality staff is essential to the success of our business and the effective operation of our contract management processes. The Group maintains effective procedures for the estimation and tendering process as well as for the management and monitoring of contracts in progress. |
The Group is exposed to risks that could impact the delivery of our contracts to our clients on time and within the estimated costs. Robust controls exist to monitor and manage contract performance throughout the contract to identify and manage risks as they arise throughout the contract. The Group monitors performance of suppliers and contractors throughout the contract. |
GROB & CO HOLDINGS LTD (REGISTERED NUMBER: 13515433) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
SECTION 172(1) STATEMENT |
The Group provide a complete package for air conditioning and ventilation and fire rated duct systems. The Group operates within the UK and depends on trust and confidence of its stakeholders to continue to operate sustainably in the long term. It seeks to put clients' interests first, invest in its employees, nurtures relationships with its supply chain, has regard to the communities and regions in which it operates and strives to generate profits for its shareholders. |
The Directors of the Group have acted in accordance with their duties, in particular their duty to act in a manner in which they consider, in good faith, would be most likely to promote the success of the Group for the benefit of its members as a whole, having regard to the stakeholders and matters set out in section 172 (1) of the Companies Act 2006. |
The Directors of the Group support the subsidiary Managing Directors in managing the operations of each business in line with the Group's strategy. |
The Directors consider the likely consequences of any decision in the long-term. Each company within the Group is bound by Group policies, consistent with the Group's culture, which is built around the following values: |
- Respect |
- Trust |
- Integrity |
- Collaboration |
- Value |
The Group culture extends to key areas including customers, suppliers, employees and the environment. |
The Directors and management operate the business in a responsible manner with the aim of ensuring that the Group maintains good governance, consistently reviews its core values and ultimately maintains a reputation for high standards and a quality product with a professional standard of business conduct. |
KEY PERFORMANCE INDICATORS (KPI'S) |
The director considers the revenue and operating profit of the Group to be the key performance indicators, these are set out below. |
Turnover for the year was £40.2m (2023: £36.3m) and operating profit £1.7m (2023: £0.5m loss) |
ON BEHALF OF THE BOARD: |
GROB & CO HOLDINGS LTD (REGISTERED NUMBER: 13515433) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
The director presents his report with the financial statements of the company and the group for the year ended 30th September 2024. |
PRINCIPAL ACTIVITY |
| The interests of Grob & Co Holdings Limited and its subsidiaries (the "Group") are primarily in ductwork manufacture and contracting, ventilation and air-conditioning products and engineering of fire resistant duct systems. |
DIVIDENDS |
The total distribution of dividends for the year ended 30th September 2024 will be £140,226 (2023: £141,482). |
DIRECTOR |
CHARITABLE DONATIONS |
During the year donations were made to charity of £13,106 (2023: £24,809). |
HOTCHKISS GROUP PENSION SCHEME |
Note 24 to the financial statements discloses a Financial Reporting Standard 102 funding asset for the Hotchkiss Group Pension Scheme of £9,881,000 (2023: £9,101,000), less a deferred tax liability of £1,534,000 (2023: £963,000). This scheme is a defined benefit pension scheme with total assets to 30 September 2024 of £28,544,000 (2023: £27,939,000). The actuarial and MRF valuation, in normal circumstances, would be carried out every three years and on 31 March 2021 these valuations were carried out by the Scheme's actuary and this showed that the scheme was approximately 90% funded. |
Following this full valuation and a rapidly changing investment market, a Trustee meeting was held and a change in investments of the pension scheme was agreed to stabilize the assets and reduce any risk to the scheme. This also meant that the pension scheme had moved from a 90% funded scheme to a fully funded status. The next full Actuarial Valuation dated 31 March 2024 was signed by the Scheme Trustee and Actuary in April 2025. This showed the scheme was over 130% funded at the Actuarial Valuation date of 31 March 2024 and will be updated in the financial reports for 30 September 2025. |
GOING CONCERN |
The directors have given careful consideration to the risks and uncertainties on businesses operations. The Group has modelled sensitivities on decreases in turnover and cash for a period of twelve months beyond the date of signing these financial reports. |
Under these scenarios, the business would continue to trade with adequate cash balances and have taken steps to manage its cash flow. |
After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements. |
FINANCIAL RISK MANAGEMENT |
Note 27 to the financial statements sets out the group's approach to financial risk management. |
GROB & CO HOLDINGS LTD (REGISTERED NUMBER: 13515433) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
EMPLOYEES |
It is the Board's policy to employ disabled persons whenever suitable vacancies arise and to provide for such employees the appropriate level of training and career progression within the group. |
The Group's directors recognise the importance of communications with the Group's employees and therefore hold regular meetings with the employees' representatives. The directors make it their policy to be accessible to all employees. |
MATTERS COVERED IN THE STRATEGIC REPORT |
Information in respect of business review, post balance sheet events and key performance indicators (KPIs) are not shown in the Directors' Report because they are presented in the Strategic Report in accordance with s414c(ii) of the Companies Act 2006. |
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 they are 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; |
- state whether applicable accounting standards have been followed, subject to any material |
departures disclosed and explained in the financial statements; |
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. The director 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 auditor is unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditor is aware of that information. |
GROB & CO HOLDINGS LTD (REGISTERED NUMBER: 13515433) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
AUDITORS |
GMP Audit Limited, Statutory Auditor offer themselves for re-appointment as auditor in accordance with Section 485(4) of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GROB & CO HOLDINGS LTD |
Opinion |
| We have audited the financial statements of Grob & Co Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 30th September 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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 30th 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GROB & CO HOLDINGS LTD |
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. |
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 five, 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GROB & CO HOLDINGS LTD |
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: |
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: |
- Discussions with management which included consideration of known or suspected instances of non-compliance with laws and regulations and fraud. |
- Reviewing, evaluating and testing systems and controls to assess their effectiveness to prevent and detect irregularities. |
- Identifying, reviewing and testing of journal entries. |
- Challenging assumptions and judgements made by management in respect of significant accounting estimates. |
- Reviewing minutes of Board Meetings for known or suspected instances of non-compliance with laws and regulations and fraud. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
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 |
20 Eversley Road |
Bexhill on Sea |
East Sussex |
TN40 1HE |
GROB & CO HOLDINGS LTD (REGISTERED NUMBER: 13515433) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
2024 | 2023 |
Notes | £'000 | £'000 | £'000 |
TURNOVER | 3 | 40,199 | 36,285 |
Cost of sales | 32,201 | 30,956 |
GROSS PROFIT | 7,998 | 5,329 |
Distribution costs | 543 | 439 |
Administrative expenses | 5,727 | 5,362 |
6,270 | 5,801 |
OPERATING PROFIT/(LOSS) | 5 | 1,728 | (472 | ) |
Interest receivable and similar income | 11 | 2 |
Other finance income | 24 | 510 | 433 |
521 | 435 |
2,249 | (37 | ) |
Interest payable and similar expenses | 6 | 63 | 36 |
PROFIT/(LOSS) BEFORE TAXATION | 2,186 | (73 | ) |
Tax on profit/(loss) | 7 | - | - |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR | ( | ) |
Profit/(loss) attributable to: |
Owners of the parent | 2,186 | (73 | ) |
GROB & CO HOLDINGS LTD (REGISTERED NUMBER: 13515433) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
2024 | 2023 |
Notes | £'000 | £'000 |
PROFIT/(LOSS) FOR THE YEAR | 2,186 | (73 | ) |
OTHER COMPREHENSIVE INCOME |
Actuarial gain/(loss) on defined benefit | 270 | 492 |
pension scheme |
Income tax relating to other comprehensive income | (571 | ) | 119 |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX | (301 | ) | 611 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 1,885 | 538 |
Total comprehensive income attributable to: |
Owners of the parent | 1,885 | 538 |
GROB & CO HOLDINGS LTD (REGISTERED NUMBER: 13515433) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
30TH SEPTEMBER 2024 |
2024 | 2023 |
Notes | £'000 | £'000 | £'000 |
FIXED ASSETS |
Intangible assets | 10 | (2,904 | ) | (3,292 | ) |
Tangible assets | 11 | 3,721 | 3,822 |
Investments | 12 | - | - |
817 | 530 |
CURRENT ASSETS |
Stocks | 13 | 559 | 685 |
Debtors | 14 | 10,444 | 8,911 |
Cash at bank and in hand | 15 | 2,358 | 1,713 |
13,361 | 11,309 |
CREDITORS |
Amounts falling due within one year | 16 | 12,060 | 10,446 |
NET CURRENT ASSETS | 1,301 | 863 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 2,118 | 1,393 |
CREDITORS |
Amounts falling due after more than one year | 17 | (404 | ) | (1,215 | ) |
PENSION ASSET | 24 | 8,347 | 8,138 |
NET ASSETS | 10,061 | 8,316 |
CAPITAL AND RESERVES |
Called up share capital | 22 | - | - |
Retained earnings | 23 | 10,061 | 8,316 |
SHAREHOLDERS' FUNDS | 10,061 | 8,316 |
The financial statements were approved by the director and authorised for issue on 9th June 2025 and were signed by: |
O C Y Grob - Director |
GROB & CO HOLDINGS LTD (REGISTERED NUMBER: 13515433) |
COMPANY STATEMENT OF FINANCIAL POSITION |
30TH SEPTEMBER 2024 |
2024 | 2023 |
Notes | £'000 | £'000 | £'000 |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Cash at bank | 15 |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT LIABILITIES | ( | ) | ( | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 17 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Retained earnings | 23 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 146 | 144 |
The financial statements were approved by the director and authorised for issue on |
GROB & CO HOLDINGS LTD (REGISTERED NUMBER: 13515433) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£'000 | £'000 | £'000 |
Balance at 1st October 2022 | - | 7,919 | 7,919 |
Changes in equity |
Deficit for the year | - | (73 | ) | (73 | ) |
Other comprehensive income | - | 611 | 611 |
Total comprehensive income | - | 538 | 538 |
Dividends | - | (141 | ) | (141 | ) |
Balance at 30th September 2023 | - | 8,316 | 8,316 |
Changes in equity |
Profit for the year | - | 2,186 | 2,186 |
Other comprehensive income | - | (301 | ) | (301 | ) |
Total comprehensive income | - | 1,885 | 1,885 |
Dividends | - | (140 | ) | (140 | ) |
Balance at 30th September 2024 | - | 10,061 | 10,061 |
GROB & CO HOLDINGS LTD (REGISTERED NUMBER: 13515433) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£'000 | £'000 | £'000 |
Changes in equity |
Dividends | - | ( | ) | ( | ) |
Total comprehensive income | - |
Balance at 30th September 2023 |
Changes in equity |
Dividends | - | ( | ) | ( | ) |
Total comprehensive income | - |
Balance at 30th September 2024 |
GROB & CO HOLDINGS LTD (REGISTERED NUMBER: 13515433) |
CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
2024 | 2023 |
Notes | £'000 | £'000 |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,178 | (1,643 | ) |
Interest element of finance lease payments paid | (63 | ) | (36 | ) |
Net cash from operating activities | 1,115 | (1,679 | ) |
Cash flows from investing activities |
Purchase of intangible fixed assets | (6 | ) | (38 | ) |
Purchase of tangible fixed assets | (533 | ) | (402 | ) |
Sale of tangible fixed assets | 349 | 7 |
Interest received | 11 | 2 |
Net cash from investing activities | (179 | ) | (431 | ) |
Cash flows from financing activities |
New loans in year | - | 333 |
Loan repayments in year | (108 | ) | - |
New finance leases in the year | - | 275 |
Capital repayments in year | (43 | ) | (22 | ) |
Equity dividends paid | (140 | ) | (141 | ) |
Net cash from financing activities | (291 | ) | 445 |
Increase/(decrease) in cash and cash equivalents | 645 | (1,665 | ) |
Cash and cash equivalents at beginning of year | 2 | 1,713 | 3,378 |
Cash and cash equivalents at end of year | 2 | 2,358 | 1,713 |
GROB & CO HOLDINGS LTD (REGISTERED NUMBER: 13515433) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
1. | RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£'000 | £'000 |
Profit/(loss) before taxation | 2,186 | (73 | ) |
Depreciation charges | (78 | ) | (132 | ) |
Profit on disposal of fixed assets | (19 | ) | (2 | ) |
Pension scheme movement | - | (9 | ) |
Finance costs | 63 | 36 |
Finance income | (521 | ) | (435 | ) |
1,631 | (615 | ) |
Decrease in stocks | 126 | 275 |
(Increase)/decrease in trade and other debtors | (1,533 | ) | 1,341 |
Increase/(decrease) in trade and other creditors | 954 | (2,644 | ) |
Cash generated from operations | 1,178 | (1,643 | ) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 30th September 2024 |
30/9/24 | 1/10/23 |
£'000 | £'000 |
Cash and cash equivalents | 2,358 | 1,713 |
Year ended 30th September 2023 |
30/9/23 | 1/10/22 |
£'000 | £'000 |
Cash and cash equivalents | 1,713 | 3,378 |
GROB & CO HOLDINGS LTD (REGISTERED NUMBER: 13515433) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/10/23 | Cash flow | At 30/9/24 |
£'000 | £'000 | £'000 |
Net cash |
Cash at bank and in hand | 1,713 | 645 | 2,358 |
1,713 | 645 | 2,358 |
Debt |
Finance leases | (275 | ) | 43 | (232 | ) |
Debts falling due within 1 year | (108 | ) | (10 | ) | (118 | ) |
Debts falling due after 1 year | (225 | ) | 118 | (107 | ) |
(608 | ) | 151 | (457 | ) |
Total | 1,105 | 796 | 1,901 |
GROB & CO HOLDINGS LTD (REGISTERED NUMBER: 13515433) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
1. | STATUTORY INFORMATION |
Grob & Co Holdings Ltd 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 financial statements are presented in Sterling (£). |
The individual accounts of Grob & Co Holdings Limited have also adopted the disclosure exemption from the requirement to present a statement of cash flows and related notes as they form part of the consolidated group cash flows and related notes. |
Going concern |
The Group has modelled sensitivities on decreases in turnover and cash a for a period of twelve months beyond the date of signing these financial reports. |
Under these scenarios, the Group would continue to trade with adequate cash balances and have taken steps to manage its cash flow. |
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 continues to adopt the going concern basis in preparing its financial statements. |
Basis of consolidation |
The group financial statements consolidate the financial statements of Grob & Co Holdings Limited and its subsidiary undertakings for the year ended 30th September 2024. |
Unless otherwise stated, the acquisition method of accounting has been adopted. Under this method, the results of subsidiary undertakings and associated undertakings acquired or disposed of in the period are included in the consolidated profit and loss account from the date of acquisition or up to the date of disposal. |
Goodwill arising on consolidation (representing the excess of the fair value of the consideration given over the fair value of the separable net assets acquired) is capitalised and amortised by equal annual instalments over its estimated useful life. |
The parent company has taken advantage of section 408 of the Companies Act 2006 and has not included its own profit and loss account in these financial statements. |
GROB & CO HOLDINGS LTD (REGISTERED NUMBER: 13515433) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
2. | ACCOUNTING POLICIES - continued |
Significant judgements and estimates |
| Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgments and estimates have been made include the following: |
| Long term contracts and stocks: |
| The Turnover policy, described below, requires forecasts to be made of the outcomes of long term contracts, which require assessments and judgements to be made on the costs to complete, changes in the scope of work, contract programmes and changes in costs. There are several long term contracts where the Group has incorporated significant judgements over contractual entitlements. The range of potential outcomes could result in a positive or negative change to the underlying profitability and cash flow. |
| The Group maintains robust controls to monitor performance and review those judgements. Where it is considered that the outcome of a long term contract can be assessed with reasonable certainty, attributable profit is recognised in the profit and loss account as the difference between the reported turnover and related costs for that contract. Provision is made on a contract by contract basis for all foreseeable losses. |
| The value of long term contract work in progress, including retentions, at the year end for the group was £2,792,000 (2023: £1,642,000). The directors undertake detailed review and analysis of the progress of projects and the commercial position of the company, with the input from senior qualified Chartered Surveyors and project managers, to determine the appropriate carrying value. |
| Freehold Property: |
| A triennial review of FRS102 amended Section 17 Property, Plant and Equipment, to introduce an accounting policy option in respect of investment property rented to another group entity whereby entities may elect to transfer these properties to property, plant and equipment and measure them at cost (less depreciation and impairment). A transitional option is to value the properties at the transitional date adopting that valuation and holding the property at deemed cost. Transfer of Property, Plant and Equipment, to or from investment property will be made when there is a change in use of the property. |
| Taxation: |
| The valuation of Deferred tax requires judgement as to whether the asset will be realised. Deferred tax is not recognised by the Group or company, as set out in Note 21 the nature of the group's business is highly cyclical together with the uncertainties discussed in the strategic report it is considered appropriate to not recognise deferred tax assets in relation to losses and timing differences. The deferred tax on the Defined Benefit Pension scheme is recognised as the Company's objective is to ensure the pension fund set out in Note 24 becomes fully funded. |
| Pensions: |
| The group operates three pension schemes, one of which is a Defined Benefit Scheme, the liabilities of the scheme are significant to the Group and the assumptions around that valuation are set out in detail in Note 24. |
GROB & CO HOLDINGS LTD (REGISTERED NUMBER: 13515433) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover represents the value of work done during the period excluding value added tax and discounts. |
Long term contracts |
For long term contracts, turnover is calculated by reference to the value of contracts completed in the period and the movement in contract valuations during the period. Revenue and costs are recognised by reference to the stage of completion of the contract at the balance sheet date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable. Where it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense. |
Sale of goods |
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods. |
Goodwill |
Intangible assets |
| Intangible assets are measured at cost less accumulated amortisation and any accumulated impairment losses. |
| Amortisation is charged so as to allocate the cost of intangibles less their residual values over their estimated useful lives, using the straight-line method. The intangible assets are amortised over their estimated useful economic lives at the following rates: |
| Licenses | 10% to 33% per annum on cost |
Tangible fixed assets |
| Tangible fixed assets are stated at cost or deemed cost, net of depreciation and any provision for impairment. Depreciation is calculated so as to write down the cost less estimated residual value of all tangible fixed assets, other than freehold land, by equal instalments over their estimated useful economic lives at the following rates: |
| Freehold buildings | 20 years |
| Plant and machinery & office equipment | 3 to 10 years |
| Motor vehicles | 4 years |
GROB & CO HOLDINGS LTD (REGISTERED NUMBER: 13515433) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
2. | ACCOUNTING POLICIES - continued |
Stocks and work in progress |
Stocks and work in progress are stated at the lower of cost and net realisable value. Cost is determined on a standard costing basis. Direct overheads are included in the cost of work in progress. |
Long term contracts |
Long term contracts are assessed on a contract basis and are reflected in the profit and loss account by recording turnover and related costs as contract activity progresses. Where it is considered that the outcome of a long term contract can be assessed with reasonable certainty, attributable profit is recognised in the profit and loss account as the difference between the reported turnover and related costs for that contract. Provision is made on a contract by contract basis for all foreseeable losses. |
Contract work in progress is stated at costs incurred, less those transferred to the profit and loss account, after deducting foreseeable losses and payments on account not matched with turnover. |
Amounts recoverable on contracts are included in debtors and represent turnover recognised in excess of payments on account. |
Financial instruments |
| Non-derivative financial instruments comprise trade and other receivables, cash and cash equivalents, loans and borrowings and trade and other payables. |
| A financial instrument is recognised if the group becomes party to the contractual provisions of the instrument. Financial instruments are derecognised if the group's contractual rights to the cash flows from the financial asset expire. Financial liabilities are derecognised if the group's obligations specified in the contract expire or are discharged or cancelled. |
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 statement of financial position date. |
Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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. |
GROB & CO HOLDINGS LTD (REGISTERED NUMBER: 13515433) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
2. | ACCOUNTING POLICIES - continued |
Research and development |
| Research expenditure is charged to profits in the period in which it is incurred. Development costs incurred on specific projects are capitalised when recoverability can be assessed with reasonable certainty and are amortised in line with the expected use arising from the projects, being 5 years. All other development costs are written off in the period of expenditure. |
Foreign currencies |
| Transactions in foreign currencies are translated at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities in foreign currencies are translated at the rates of exchange ruling at the balance sheet date. Exchange differences are dealt with through the profit and loss account. |
| Debtors |
| Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
| Cash and cash equivalents |
| Cash and cash equivalents comprise cash in hand and on-demand deposits. Bank overdrafts are shown within Creditors: amounts falling due within one year in the Statement of Financial Position. As a result of the early adoption of the triennial review an Analysis of changes in net debt is provided in Note 3 to the cash flow statement. |
| Creditors |
| Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost. |
| Provisions for liabilities |
| Provisions are recognised when the group has a present obligation (legal or constructive) as a result of a past event, it is probable that the group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. |
| The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. |
Operating leases |
Rental charges on operating leases are charged to the profit and loss account on a straight line basis over the life of the lease. The aggregate benefit of lease incentives are recognised as a reduction to the expense recognised over the lease term on a straight line basis. |
GROB & CO HOLDINGS LTD (REGISTERED NUMBER: 13515433) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
2. | ACCOUNTING POLICIES - continued |
Retirement benefits |
| Defined Contribution Pension Schemes |
| The pension costs for the auto enrolment and group personal pension schemes are charged to the consolidated income statement in the period in which they become payable. The company accounts for its contributions to these schemes as defined contribution schemes. |
| Defined Benefit Pension Scheme |
| Scheme assets are measured at fair values. Scheme liabilities are measured annually on an actuarial basis using the projected unit method and are discounted at appropriate high quality corporate bond rates. The net surplus or deficit, adjusted for deferred tax, is presented separately from other net assets on the balance sheet. A net surplus is recognised only to the extent that it is recoverable by the group. |
| The current service cost and costs from settlements and curtailments are charged against operating profit. |
| Actuarial gains and losses and returns on plan assets, excluding amounts included in net interest on the net defined benefit liability, are reported as recognised gains and losses in the consolidated statement of comprehensive income. |
3. | TURNOVER |
All turnover arises within the UK and relates to the supply and installation of both fire rated and non fire rated ventilation and air conditioning ductwork. |
The amount of contract revenue recognised as turnover in the year was £39,816,105 (2023: £35,898,320). |
GROB & CO HOLDINGS LTD (REGISTERED NUMBER: 13515433) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
4. | EMPLOYEES AND DIRECTORS |
Staff costs during the year were as follows: |
Year Ended | Year Ended |
30/9/24 | 30/9/23 |
£'000 | £'000 |
Wages and salaries | 9,188 | 9,185 |
Social security costs | 973 | 978 |
Other pension costs | 300 | 356 |
10,461 | 10,519 |
The average number of employees of the group (including directors) during the year, analysed by category was as follows: |
Year Ended | Year Ended |
30/9/24 | 30/9/23 |
Number | Number |
Production | 112 | 91 |
Administration | 133 | 117 |
245 | 208 |
Remuneration in respect of directors was as follows: |
Year Ended | Year Ended |
30/9/24 | 30/9/23 |
£'000 | £'000 |
Emoluments | 549 | 533 |
Pension contributions | 86 | 86 |
635 | 619 |
The emoluments of the highest paid director, excluding pension contributions were £138,924 (2023: £133,283). Company pension contributions of £10,357 were made during the period (2023: £10,225). |
During the period 6 of the group directors (2023: 5) participated in a money purchase pension scheme. |
GROB & CO HOLDINGS LTD (REGISTERED NUMBER: 13515433) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
5. | OPERATING PROFIT/(LOSS) |
The profit on ordinary activities before taxation is stated after: |
Year Ended | Year Ended |
30/9/24 | 30/9/23 |
£'000 | £'000 |
Fees payable to the Group's Auditor's and its associates for the audit of the annual accounts |
- audit of the Company's financial statements | 8 | 8 |
- audit of the subsidiaries financial statements | 42 | 41 |
Depreciation | 302 | 266 |
Amortisation | (382 | ) | (398 | ) |
Hire of plant and machinery | 756 | 601 |
Profit on disposal of fixed assets | (19 | ) | (2 | ) |
Operating lease rentals |
- land and buildings | 427 | 375 |
- other assets | 174 | 221 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£'000 | £'000 |
Interest payable | 63 | 36 |
7. | TAXATION |
Analysis of the tax charge |
No liability to UK corporation tax arose for the year ended 30th September 2024 nor for the year ended 30th September 2023. |
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 |
£'000 | £'000 |
Profit/(loss) before tax | 2,186 | (73 | ) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 25 %) | 547 | (18 | ) |
Effects of: |
Expenses not deductible for tax purposes | 47 | 30 |
Adjustments to tax charge in respect of previous periods | - | 7 |
Origination and reversal of timing differences not recognised | (594 | ) | (19 | ) |
Total tax charge | - | - |
GROB & CO HOLDINGS LTD (REGISTERED NUMBER: 13515433) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
7. | TAXATION - continued |
Tax effects relating to effects of other comprehensive income |
2024 |
Gross | Tax | Net |
£'000 | £'000 | £'000 |
Actuarial gain/(loss) on defined benefit | 270 | (571 | ) | (301 | ) |
pension scheme |
270 | (571 | ) | (301 | ) |
2023 |
Gross | Tax | Net |
£'000 | £'000 | £'000 |
Actuarial gain/(loss) on defined benefit | 492 | 119 | 611 |
pension scheme |
492 | 119 | 611 |
8. | 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. |
9. | DIVIDENDS |
2024 | 2023 |
£'000 | £'000 |
Ordinary share of £1 |
Interim | 140 | 141 |
GROB & CO HOLDINGS LTD (REGISTERED NUMBER: 13515433) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Patents |
Negative | and |
goodwill | licences | Totals |
£'000 | £'000 | £'000 |
COST |
At 1st October 2023 | (4,189 | ) | 105 | (4,084 | ) |
Additions | - | 6 | 6 |
At 30th September 2024 | (4,189 | ) | 111 | (4,078 | ) |
AMORTISATION |
At 1st October 2023 | (838 | ) | 46 | (792 | ) |
Amortisation for year | (419 | ) | 37 | (382 | ) |
At 30th September 2024 | (1,257 | ) | 83 | (1,174 | ) |
NET BOOK VALUE |
At 30th September 2024 | (2,932 | ) | 28 | (2,904 | ) |
At 30th September 2023 | (3,351 | ) | 59 | (3,292 | ) |
11. | TANGIBLE FIXED ASSETS |
Group |
Office |
furniture |
Freehold | Plant and | and | Motor |
property | machinery | equipment | vehicles | Totals |
£'000 | £'000 | £'000 | £'000 | £'000 |
COST |
At 1st October 2023 | 3,547 | 511 | 209 | 34 | 4,301 |
Additions | 80 | 404 | 48 | 1 | 533 |
Disposals | - | (441 | ) | (6 | ) | (34 | ) | (481 | ) |
At 30th September 2024 | 3,627 | 474 | 251 | 1 | 4,353 |
DEPRECIATION |
At 1st October 2023 | 230 | 126 | 94 | 30 | 480 |
Charge for year | 116 | 112 | 71 | 4 | 303 |
Eliminated on disposal | - | (114 | ) | (4 | ) | (33 | ) | (151 | ) |
At 30th September 2024 | 346 | 124 | 161 | 1 | 632 |
NET BOOK VALUE |
At 30th September 2024 | 3,281 | 350 | 90 | - | 3,721 |
At 30th September 2023 | 3,317 | 385 | 115 | 4 | 3,821 |
GROB & CO HOLDINGS LTD (REGISTERED NUMBER: 13515433) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
11. | TANGIBLE FIXED ASSETS - continued |
Group |
The company holds no fixed assets. All assets are held by the subsidiary companies, therefore no separate company assets register has been shown. |
The gross book value of freehold land and buildings includes £2,299,000 (2023: £2,299,000) of depreciable assets for the group. |
Included within the cost of freehold land and buildings is land amounting to £1,248,000 (2023: £1,248,000), which is not depreciated. |
On the 30 September 2021, Stiles Harold Williams Partnership LLP, Commercial Property Consultants carried out valuations on current market values. The Eastbourne property was valued at £3,525,000. Stiles Harold Williams Partnership LLP acted as independent valuers and are Chartered Surveyors, being members of The Royal Institute of Chartered Surveyors. |
The director has adopted the triennial review of FRS102, the impact on the entity is in respect of freehold property and land held by the entity but occupied by subsidiary companies may be valued at transition, at deemed cost, being the valuation at the date of the transition or hold the asset at the historic cost as if the property had always been held at cost. The option to value at a deemed cost being the valuation at the date of transition has been adopted. |
The net carrying amount of assets held under finance leases included in plant and machinery as at 30 September 2024 was £237,015 (2023: £22,709), and the depreciation charge in relation to these items for the year then ended was £63,060 (2023: £24,582). |
Restatement of cost and depreciation as at 1 October 2023 |
Upon acquisition of the group on 30th September 2021, the fixed assets were recorded as additions at fair value. Since acquisitions, assets have been disposed of, and whilst the correct net book value has been disposed of, such that the balance sheet is correct, the cost and depreciation on disposal shown in this note in the consolidated accounts have been overstated by an equal and opposite amount. The cost and depreciation figures as at 1 October 2023 have therefore been restated to the correct figures. The net book value is unaffected by this restatement. |
GROB & CO HOLDINGS LTD (REGISTERED NUMBER: 13515433) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
12. | FIXED ASSET INVESTMENTS |
The company's investments in the group's principal undertakings are as follows: |
2024 | 2023 |
£'000 | £'000 |
Shares in subsidiary undertaking at cost | 5,296 | 5,296 |
5,296 | 5,296 |
Country of incorporation | Principal activity | Proportion of ordinary shares held |
Hotchkiss Group Holdings Limited | England and Wales | Management of the Group's subsidiaries | 100% |
****Grob Group Limited | England and Wales | Management of the Group's subsidiaries & DB Pension Scheme | 100% |
***Hotchkiss Limited | England and Wales | Ventilation and air conditioning ductwork contractors | 100% |
***Fire Protection Limited | England and Wales | Fire-rated ductwork contractor | 100% |
***Hotchkiss Group Pension Trustees Limited | England and Wales | Corporate Trustee | 100% |
***LeFactory Limited | England and Wales | Ventilation and air conditioning ductwork manufacturers | 100% |
* D G Palmer Limited | England and Wales | Installation of air-conditioning systems | 100% |
**Firestorm Filtration Limited | England and Wales | Dormant | 100% |
* | The company is a subsidiary of Hotchkiss Limited |
** | The company is a subsidiary of Fire Protection Limited |
*** | The company is a subsidiary of Grob Group Limited |
**** | The company is a subsidiary of Hotchkiss Group Holdings Limited |
GROB & CO HOLDINGS LTD (REGISTERED NUMBER: 13515433) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
The registered address for all the above entities excluding Grob Group Limited is 7 Marshall Road, Eastbourne, BN22 9AX. Grob Group Ltd's registered office is 1st Floor, 99 Bishopsgate, London, EC2M 3XD. |
Parental guarantees to subsidiary undertakings |
For the year ended 30 September 2024, Grob & Co Holdings Limited has provided a guarantee in respect of all liabilities due by its subsidiary company D G Palmer Limited (Company No 3805928), Grob Group Limited (Company no 00393466), LeFactory Limited (Company No 14903973) and Hotchkiss Group Holdings Ltd (Company No 12452387), thus entitling them to the exemption from audit under section 479a of the Companies Act 2006 relating to subsidiary companies. |
13. | STOCKS |
Group |
2024 | 2023 |
£'000 | £'000 |
Raw materials | 559 | 685 |
Stock recognised in cost of sales during the year as an expense was £3,039,868 (2023: £3,996,891). |
An impairment loss of £nil (2023: £3,406) was recognised in cost of sales against stock during the year in respect of slow-moving and obsolete stock. |
14. | DEBTORS |
Group |
2024 | 2023 |
£'000 | £'000 |
Amounts falling due within one year: |
Trade debtors | 7,015 | 6,713 |
Amounts owed by associates | - | 61 |
Amounts recoverable on contract | 2,169 | 1,642 |
Other debtors | 74 | 49 |
VAT | 287 | 162 |
Prepayments | 276 | 284 |
9,821 | 8,911 |
Amounts falling due after more than | one year: |
Amounts recoverable on contract | 623 | - |
Aggregate amounts | 10,444 | 8,911 |
GROB & CO HOLDINGS LTD (REGISTERED NUMBER: 13515433) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
14. | DEBTORS - continued |
Within trade debtors and amounts recoverable on contracts is a total of £8,638,658 (2023: £7,041,771) due within one year from customers for contract work. |
Included in Amounts recoverable on contracts are the sum of £1,105,647 (2023: £1,303,527) which falls due after more than one year. |
15. | CASH AT BANK AND IN HAND |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£'000 | £'000 | £'000 | £'000 |
Cash at bank and in hand | 2,358 | 1,713 | 18 | 2 |
2,358 | 1,713 | 18 | 2 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£'000 | £'000 | £'000 | £'000 |
Other loans (see note 18) | 118 | 108 |
Finance leases (see note 19) | 60 | 76 |
Trade creditors | 6,502 | 5,805 |
Amounts owed to group undertakings | - | - |
Social security and other taxes | 338 | 317 |
Other creditors | 1,060 | 1,056 |
Directors' current accounts | 350 | 350 | 350 | 350 |
Payments received on account | 1,888 | 1,024 |
Accrued expenses | 1,744 | 1,710 |
12,060 | 10,446 |
Payments received on account represents amounts due to customers in respect of contract work. |
Other creditors includes £53,490 (2023: £38,236) due in respect of pension contributions. The amount of contributions included therein in relation to directors is £9,863 (2023: £8,939). |
As noted from the parental guarantee (note 12) the aggregate amount of secured liabilities concerning subsidiaries is £14,034 (2023: £7,820) in respect of D G Palmer Ltd, £130,777 (2023: £286,705) for Grob Group Ltd and £1,100,822 (2023: £nil) in respect of LeFactory Limited. |
GROB & CO HOLDINGS LTD (REGISTERED NUMBER: 13515433) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£'000 | £'000 | £'000 | £'000 |
Other loans (see note 18) | 107 | 225 |
Finance leases (see note 19) | 172 | 199 |
Other creditors | - | 791 |
Contract liability accrual | 125 | - | - | - |
404 | 1,215 |
18. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2024 | 2023 |
£'000 | £'000 |
Amounts falling due within one year or | on demand: |
Other loans | 118 | 108 |
Amounts falling due between one and | two years: |
Other loans - 1-2 years | 107 | 118 |
Amounts falling due between two and | five years: |
Other loans - 2-5 years | - | 107 |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Finance leases |
2024 | 2023 |
£'000 | £'000 |
Net obligations repayable: |
Within one year | 60 | 76 |
Between one and five years | 172 | 199 |
232 | 275 |
The above finance lease commitments are secured against the Coil Line asset to which the lease relates. |
GROB & CO HOLDINGS LTD (REGISTERED NUMBER: 13515433) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
19. | LEASING AGREEMENTS - continued |
Group |
Non-cancellable | operating leases |
2024 | 2023 |
£'000 | £'000 |
Within one year | 554 | 604 |
Between one and five years | 1,375 | 1,648 |
In more than five years | 307 | 461 |
2,236 | 2,713 |
20. | SECURED DEBTS |
The company, together with other members of the group, has provided a debenture and cross guarantee in favour of Barclays Bank PLC as security for all money, obligations and liabilities owing to them. The security is capped at a maximum aggregate value of £600,000. Barclays Bank have a fixed charge over properties owned by the group and a floating charge over all other assets of the group. |
At the balance sheet date, there were no amounts owed to Barclays Bank PLC by any group company with regard to which the security could be called upon. |
21. | DEFERRED TAXATION |
The group has recognised its deferred taxation liability totalling £1,533,867 (2023: £963,131), related to timing differences, after taking into account trading losses and capital losses that are available to mitigate the tax liability. This liability relates to the DB Pension scheme asset, and has therefore been recognised in Other Comprehensive Income, with the DB Scheme asset reported net of the deferred tax liability. |
There is a deferred tax liability of £72,514 (2023: £153,473) arising from the revaluation of land and buildings held as fixed assets. This deferred tax liability is inclusive of the rolled over contingent capital gains tax liability on the eventual crystallisation of the gain from land sales which had been rolled over into the cost of the new building at Eastbourne see note 25. |
There is also a deferred tax liability of £2,470,250 (2023: £2,275,250) in relation to the DB Pension scheme asset. This deferred tax liability has also been included in the calculations for the deferred tax asset shown above, as the company has pre-existing tax losses brought forward which can be used to offset the resulting liability. |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 1 | 1 |
23. | RESERVES |
Retained earnings includes all current and prior period retained profits and losses. |
GROB & CO HOLDINGS LTD (REGISTERED NUMBER: 13515433) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
24. | EMPLOYEE BENEFIT OBLIGATIONS |
The group operates three pension schemes. An auto enrolment scheme administered by National Employment Savings Trust (NEST), a Group Personal Pension Scheme administered by Aegon (formerly Scottish Equitable) and a Defined Benefit Scheme administered by Scottish Widows. As at 1 April 2009 the Defined Benefit Scheme was closed to future accrual of benefits and its members transferred to the Group Personal Pension Scheme. The Group will continue to fund the deferred benefits of the members. |
The Defined Benefit Scheme provides benefits based on final pensionable pay. The assets of the scheme are held separately from those of the company, being invested on behalf of the scheme by Legal and General. Contributions to the scheme are charged to the profit and loss account so as to spread the cost of pensions over employees' working lives with the Group. The contributions are determined by a qualified actuary using the projected unit method. |
Hotchkiss Group Pension Scheme operates a defined benefit scheme in the UK for employees of Grob Group Limited, Hotchkiss Limited and Fire Protection Limited. |
The actuarial valuation was completed as at 1 April 2021 and the valuation formed the basis of the FRS102 valuation at 30 September 2021. The next actuarial valuation date is 1 April 2024 with a final date for submission of June 2025. |
A landmark judgement was reached in the High Court on 26 October 2018 in the Lloyds Banking Group Pensions Trustees Limited v Lloyds Bank Plc Guaranteed Minimum Pension (GMP) equalisation case. A key implication of this case is the need for pension schemes to equalise benefits for the effect of unequal GMPs accrued between May 1990 and April 1997. This affects the Hotchkiss Group Pension Scheme. We consider that the Court judgment adjusts the assumptions to be adopted in the valuation of the scheme liabilities from the date of the judgement, the impact of this judgement has been calculated by the Scheme Actuary's and the estimate of the change in assumption has been reflected in the liabilities of the of the Group. |
A further judgement was reached in the High Court on 20 November 2020 ruling that pension schemes will need to revisit the Guaranteed Minimum Pension (GMP) equalisation of transferred out member payments since 17 May 1990, to check if any additional value is due as a result of the GMP equalisation ruling. The impact of this second ruling has been calculated by the Scheme Actuary's and the estimate for the changes in assumptions have been reflected in the liabilities of the Group. |
The amounts recognised in profit or loss are as follows: |
Defined benefit |
pension plans |
2024 | 2023 |
£'000 | £'000 |
Current service cost | - | - |
Net interest from net defined benefit asset/liability | (510 | ) | (433 | ) |
Past service cost | - | - |
(510 | ) | (433 | ) |
Actual return on plan assets | 1,526 | 1,449 |
GROB & CO HOLDINGS LTD (REGISTERED NUMBER: 13515433) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
24. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
The amounts recognised in the balance sheet are as follows: |
2024 | 2023 |
£'000 | £'000 |
Total market value of assets | 28,544 | 27,939 |
Present value of scheme liabilities | (18,663 | ) | (18,838 | ) |
Return on plan assets in excess of interest income | 9,881 | 9,101 |
Related deferred tax liability | (1,534 | ) | (963 | ) |
Net pension asset / (liability) | 8,347 | 8,138 |
Changes in the present value of the defined benefit obligation are as follows: |
Defined benefit |
pension plans |
2024 | 2023 |
£'000 | £'000 |
Opening defined benefit obligation | 18,838 | 19,638 |
Interest cost | 1,016 | 1,016 |
Actuarial losses/(gains) | 193 | (879 | ) |
Benefits paid | (1,384 | ) | (937 | ) |
18,663 | 18,838 |
Changes in the fair value of scheme assets are as follows: |
Defined benefit |
pension plans |
2024 | 2023 |
£'000 | £'000 |
Opening fair value of scheme assets | 27,939 | 27,805 |
Contributions by employer | - | 9 |
Expected return | 1,526 | 1,449 |
Benefits paid | (1,384 | ) | (937 | ) |
Return on plan assets (excluding interest income) | 463 | (387 | ) |
28,544 | 27,939 |
GROB & CO HOLDINGS LTD (REGISTERED NUMBER: 13515433) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
24. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
The amounts recognised in other comprehensive income are as follows: |
Defined benefit |
pension plans |
2024 | 2023 |
£'000 | £'000 |
Return on plan assets (excluding interest income) | 463 | (387 | ) |
Actuarial gains/(losses) | (193 | ) | - |
270 | (387 | ) |
The major categories of scheme assets as a percentage of total scheme assets are as follows: |
Defined benefit |
pension plans |
2024 | 2023 |
Bonds | 98.70% | 97.20% |
Cash | 1.30% | 2.80% |
100.00% | 100.00% |
None of the assets shown above include any direct investments in the Group's own financial instruments or any property occupied by, or other assets used by the Group. |
Principal actuarial assumptions at the balance sheet date (expressed as weighted averages): |
2024 | 2023 |
Rate of increase in pensions in payment and deferred pensions | 2.65% | 2.85% |
Discount rate applied to scheme liabilities | 5.10% | 5.60% |
Retail price inflation assumption | 3.00% | 3.20% |
Consumer price inflation assumption | 2.65% | 2.85% |
Mortality rates are based on the standard tables known as S4PA (2023: S3PA), using 100% (males) and 97% (females) of the base table with the CMI_2023 (2023: 102% CMI_2022) mortality projections with a long term rate of improvement of 1.25%. |
Under these assumptions life expectancy is as follows: |
2024 | 2023 |
For a male member aged 65 now | 21.3 | 21.3 |
At 65 for a male member aged 45 now | 22.6 | 22.5 |
For a female member aged 65 now | 23.6 | 23.2 |
At 65 for a female member aged 45 now | 25.1 | 24.7 |
The assumptions used by the actuary are the best estimates chosen from a range of possible actuarial assumptions which, due to the timescale covered, may not necessarily be borne out in practice. |
GROB & CO HOLDINGS LTD (REGISTERED NUMBER: 13515433) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
25. | CONTINGENT LIABILITIES |
A contingent capital gains tax liability of £72,514 (2023: £153,473) arises on the eventual crystallisation of the gain from land sales currently rolled over into the costs of the new building at Eastbourne. |
The rolled over gain is netted off against costs for the deferred tax calculation as explained in note 21, therefore this contingent capital gains tax liability is not an additional item as it is already included within the deferred tax calculation. |
26. | RELATED PARTY DISCLOSURES |
On the year end date of 30 September 2021, Grob & Co Holdings Limited acquired Hotchkiss Group. |
Grob & Co Holdings Limited is a company registered in England and Wales. It heads the overall group in which the results of the company are consolidated. The financial statements of Grob & Co Holdings Limited can be obtained from the company's registered office at 7 Marshall Road, Hampden Park Industrial Estate, Eastbourne, East Sussex, BN22 9AX. |
The ultimate controlling party of the group is Mr O C Y Grob. |
Key management personnel are the director(s) of the company and its subsidiaries, information regarding Key management personnel compensation is included in director's emoluments, note 4 of these accounts. |
27. | FINANCIAL RISK MANAGEMENT |
The group has exposures to three main areas of risk - foreign exchange currency exposure, liquidity risk and customer credit exposure. |
Foreign exchange transactional currency exposure |
The group is exposed to currency exchange rate risk to the extent that a small proportion of Grob Group Limited's supply chain is based in Europe, but as this is not significant no active management of this risk is undertaken. |
Liquidity risk |
The objective of the group in managing liquidity risk is to ensure that it can meet its financial obligations as and when they fall due. The group expects to meet its financial obligations through operating cash flows. |
Customer credit exposure |
The group may offer credit terms to its customers which allow payment of the debt after delivery of the goods or services. The group is at risk to the extent that a customer may be unable to pay the debt on the specified due date. This risk is mitigated by the strong on-going customer relationships and active debt management. |