| REGISTERED NUMBER: |
| HOTCHKISS LTD |
| STRATEGIC REPORT, |
| REPORT OF THE DIRECTORS AND |
| FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED |
| 30TH SEPTEMBER 2024 |
| REGISTERED NUMBER: |
| HOTCHKISS LTD |
| STRATEGIC REPORT, |
| REPORT OF THE DIRECTORS AND |
| FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED |
| 30TH SEPTEMBER 2024 |
| HOTCHKISS LTD (REGISTERED NUMBER: 00900611) |
| CONTENTS OF THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
| Page |
| Company Information | 1 |
| Strategic Report | 2 | to | 3 |
| Report of the Directors | 4 | to | 6 |
| Report of the Independent Auditors | 7 | to | 10 |
| Statement of Income and Retained Earnings | 11 |
| Statement of Financial Position | 12 |
| Notes to the Financial Statements | 13 | to | 25 |
| HOTCHKISS LTD |
| COMPANY INFORMATION |
| FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| 20 Eversley Road |
| Bexhill on Sea |
| East Sussex |
| TN40 1HE |
| HOTCHKISS LTD (REGISTERED NUMBER: 00900611) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
| The directors present their strategic report for the year ended 30th September 2024. |
| BUSINESS REVIEW |
| The directors are pleased to report a turnover for the year ended 30th September 2024 of £22.8m (2023: £26.3m) and our operating profit was £2.3m (2023: £0.7m). |
| The previous year to September 2023, saw a slowing down of physical work on site as we were working in pre-construction phases of various projects. These projects quickly picked up during the earlier parts of this year and were well progressed by the year end, which gave us good turnover and margin recognition for the year to September 2024. |
| We also continue to notice that project's practical completion dates are regularly being extended, and as such, projects are taking longer to complete than we perhaps allow for within our budgets, forecasts and resource planning. This has contributed to the downturn of turnover for the year to 30 September 2024. |
| The sales strategy for the business has changed since the acquisition in September 2021, and we have started to see the results of this with our secured order book sat at £46.7m at the end of 30 September 2024. |
| Overheads have reduced within the year now that the manufacturing facility, previously managed within Hotchkiss Ltd, was separated out to form the new Group Company; LeFactory Ltd. |
| LeFactory Ltd began trading from the 1st April 2024 so there have been many factory related assets being disposed of and sold to LeFactory Ltd within the year. |
| Based on the forecasts and projections, the Board anticipates satisfactory profitable performance in the next financial year. |
| We continue to work towards the Group's sustainability strategy, and as a Group became Carbon Neutral in the summer of 2023 (PAS2060:2014). Our scope 3 emissions were completed in 2024 and we began engagements with the supply chain to enable us to start building our own Net Zero Strategy. |
| Sustainable projects we have now completed are; installation of EV Car Chargers, installation of 520 Solar Panels to the Eastbourne factory roof, which should generate c.245,000 Kwh or save c.55 tonnes of CO2e annually. We have also moved the Group's commercial fleet fuel away from diesel and are fueling with HVO (Hydrotreated Vegetable Oil), which will reduce emissions by c.90% or c.80 tonnes of CO2 annually. We have also been the first Ductwork company to offer our Customers Green Steel, which is produced by the Steel Manufacturers using reduced CO2 emissions. |
| One of our targets is to be a completely paperless company. We have reduced paper usage massively across most departments, however for the final reductions we are relying on software to eradicate the requirement for paper and these projects are still ongoing. |
| Mr D J Baldock resigned as a director during the year to take a position as Managing Director to LeFactory Ltd a new business within the Group. Mr O Grob has taken the position of Hotchkiss Ltd's Managing Director for the interim. A new Company structure and appointments for the business will be notified in early 2025. |
| The board thanks every employee for their continuing hard work and efforts on behalf of the company. |
| HOTCHKISS LTD (REGISTERED NUMBER: 00900611) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| Long term contract management: The risks that the Company are exposed to depends 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 Company maintains effective procedures for the estimation and tendering process as well as for the management and monitoring of contracts in progress. |
| The Company 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 Company monitors performance of its suppliers and contractors throughout the contract. |
| KEY PERFORMANCE INDICATORS (KPIS) |
| The Company directors consider the revenue and operating profit of the business to be the key performance indicators, these are set out below. |
| Turnover decreased to £22.8m from £26.3m whilst operating profit increased to £2.3m from £0.6m on prior year operations. |
| ON BEHALF OF THE BOARD: |
| HOTCHKISS LTD (REGISTERED NUMBER: 00900611) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
| The directors present their report with the financial statements of the company for the year ended 30th September 2024. |
| PRINCIPAL ACTIVITY |
| The activity of the Hotchkiss Limited (the "Company") continues to be that of ventilation and air conditioning ductwork contractors. |
| DIVIDENDS |
| The directors have not declared or settled any dividends in the year to Grob Group Ltd (2023: £nil). |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1st October 2023 to the date of this report. |
| Other changes in directors holding office are as follows: |
| D J Baldock resigned 28th November 2023 and was reappointed as above. He then resigned on 1st March 2025. |
| 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 company. The directors recognise the importance of communications with the company's employees and therefore hold regular meetings with the employees' representatives. The directors make it their policy to be accessible to all employees. |
| FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES |
| The company uses financial instruments, other than derivatives, comprising cash and other liquid resources and various other items such as trade debtors and creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company's operations. The main risks arising from the company's financial instruments are interest rate risk, liquidity risk and customer credit exposure. The directors review and agree policies for managing each of these risks and they are summarised below. |
| Interest rate risk |
| The company finances its operations through retained profits. The directors do not consider that there is a risk of significant fluctuation in the rate for the foreseeable future. |
| Liquidity risk |
| The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest any cash assets safely and profitably. Debt is structured so repayments can be made out of cash generated through operations. |
| HOTCHKISS LTD (REGISTERED NUMBER: 00900611) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
| Customer credit exposure |
| The company may offer credit terms to its customers which allow payment of the debt after delivery of the goods or services. The company 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. |
| Going concern |
| The directors have given careful consideration to the risks and uncertainties on businesses operations. The Company has modelled sensitivities on decreases in turnover and cash at 10%, 20% and 30% increments, with no changes to overheads 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. |
| Matters covered in the strategic report |
| Information in respect of business review 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. |
| QUALIFYING THIRD PARTY INDEMNITY PROVISION |
| In accordance with clause 20.1.1 of the Articles of Association, a qualifying indemnity provision is in force for the benefit of each of the directors of the company. |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
| Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
| - select suitable accounting policies and then apply them consistently; |
| - make judgements and accounting estimates that are reasonable and prudent; |
| The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITOR |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's 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 company's auditor is aware of that information. |
| HOTCHKISS LTD (REGISTERED NUMBER: 00900611) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
| AUDITORS |
| The 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 |
| HOTCHKISS LTD |
| Opinion |
| We have audited the financial statements of Hotchkiss Ltd (the 'company') for the year ended 30th September 2024 which comprise the Statement of Income and Retained Earnings, Statement of Financial Position 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 company's affairs as at 30th September 2024 and of its profit for the year then ended; |
| - | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
| - | have been prepared in accordance with the requirements of the Companies Act 2006. |
| Basis for opinion |
| We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
| Conclusions relating to going concern |
| In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
| Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
| Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
| Other information |
| The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
| Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
| In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| HOTCHKISS 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 Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| Matters on which we are required to report by exception |
| In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
| We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
| - | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the financial statements are not in agreement with the accounting records and returns; or |
| - | certain disclosures of directors' remuneration specified by law are not made; or |
| - | we have not received all the information and explanations we require for our audit. |
| Responsibilities of directors |
| As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
| In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| HOTCHKISS 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. |
| There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, 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 concealment by, for example, forgery or intentional misrepresentations, or through collusion. |
| A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| HOTCHKISS LTD |
| 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 |
| HOTCHKISS LTD (REGISTERED NUMBER: 00900611) |
| STATEMENT OF INCOME AND RETAINED EARNINGS |
| FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
| 2024 | 2023 |
| Notes | £'000 | £'000 | £'000 |
| TURNOVER | 3 |
| Cost of sales |
| GROSS PROFIT |
| Distribution costs |
| Administrative expenses |
| 3,168 | 3,859 |
| OPERATING PROFIT | 5 |
| Interest receivable and similar income | 6 |
| 2,296 | 667 |
| Interest payable and similar expenses | 7 |
| PROFIT BEFORE TAXATION |
| Tax on profit | 8 |
| PROFIT FOR THE FINANCIAL YEAR |
| Retained earnings at beginning of year |
| RETAINED EARNINGS AT END OF YEAR |
| HOTCHKISS LTD (REGISTERED NUMBER: 00900611) |
| STATEMENT OF FINANCIAL POSITION |
| 30TH SEPTEMBER 2024 |
| 2024 | 2023 |
| Notes | £'000 | £'000 | £'000 |
| FIXED ASSETS |
| Intangible assets | 9 |
| Tangible assets | 10 |
| Investments | 11 |
| CURRENT ASSETS |
| Stocks | 12 |
| Debtors | 13 |
| Cash at bank and in hand | 14 |
| CREDITORS |
| Amounts falling due within one year | 15 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
16 |
( |
) |
( |
) |
| PROVISIONS FOR LIABILITIES | 20 | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 21 |
| Retained earnings | 22 |
| SHAREHOLDERS' FUNDS |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| HOTCHKISS LTD (REGISTERED NUMBER: 00900611) |
| NOTES TO THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
| 1. | STATUTORY INFORMATION |
| Hotchkiss Ltd is a |
| The presentation currency of the financial statements is the Pound Sterling (£). |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| Going concern |
| The Company has modelled sensitivities on decreases in turnover and cash at 10%, 20% and 30% increments, with no changes to overheads 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 Reporting Standard 102 - reduced disclosure exemptions |
| The accounts of Hotchkiss Limited have adopted the following disclosure exemptions: |
| 1. the requirement to present a statement of cash flows and related notes |
| 2. financial instrument disclosures, including: |
| 3. categories of financial instruments, |
| 4. items of income, expenses, gains or losses relating to financial instruments, and |
| exposure to and management of financial risks. |
| Preparation of consolidated financial statements |
| The financial statements contain information about Hotchkiss Ltd as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its ultimate parent undertaking, Grob & Co Holdings Limited, registered in England and Wales. |
| HOTCHKISS LTD (REGISTERED NUMBER: 00900611) |
| NOTES TO THE 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 Company 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 Company 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 company was £2,482,048 (2023: £1,353,282). The directors consider that the net realisable value of stocks is in excess of cost. |
| Taxation: |
| The valuation of deferred tax requires judgement as to whether the asset will be realised. Deferred tax is not recognised by the Company, as set out in Note 20 the nature of the 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. |
| HOTCHKISS LTD (REGISTERED NUMBER: 00900611) |
| NOTES TO THE 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. |
| Intangible fixed assets and amortisation |
| 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: |
| Licences 10% to 33% per annum on cost |
| Tangible fixed assets |
| Plant and machinery | - |
| Office furniture and equipment | - |
| Motor vehicles | - |
| Investments in subsidiaries |
| Investments in subsidiary undertakings are recognised at cost. |
| 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 cost basis. Direct overheads are included in the cost of work in progress. |
| 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 company becomes party to the contractual provisions of the instrument. Financial instruments are derecognised if the company's contractual rights to the cash flows from the financial asset expire. Financial liabilities are derecognised if the company's obligations specified in the contract expire or are discharged or cancelled. |
| HOTCHKISS LTD (REGISTERED NUMBER: 00900611) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
| Current or deferred taxation assets and liabilities are not discounted. |
| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the 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. |
| 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. |
| Operating leases |
| Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
| Retirement benefits |
| The company is a member of a group which operates a pension scheme providing benefits based on final pensionable pay. The assets of the scheme are held separately from those of the group. 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 company also operates an auto enrolment pension scheme and a personal pension scheme. The assets of the schemes are held separately from those of the company in independently administered funds. The amount charged against profits represents the contributions payable to the schemes in respect of the accounting period. |
| HOTCHKISS LTD (REGISTERED NUMBER: 00900611) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| 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. |
| 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. |
| 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. |
| 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. |
| 3. | TURNOVER |
| All turnover arises within the UK and relates to the supply of, or supply and installation of ventilation and air conditioning ductwork. |
| The amount of contract revenue recognised as turnover in the year was £22,070,341 (2023: £25,833,961). |
| 4. | EMPLOYEES AND DIRECTORS |
| Staff costs during the year were as follows: |
| 2024 | 2023 |
| £'000 | £'000 |
| Wages and salaries | 3,453 | 4,701 |
| Social security costs | 369 | 490 |
| Other pension costs | 89 | 136 |
| 3,911 | 5,327 |
| The average number of employees of the company (including directors) during the year was: |
| 2024 | 2023 |
| Number | Number |
| Production | 37 | 37 |
| Administration | 58 | 58 |
| 95 | 95 |
| HOTCHKISS LTD (REGISTERED NUMBER: 00900611) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
| Remuneration in respect of directors was as follows: |
| 2024 | 2023 |
| £'000 | £'000 |
| Emoluments | 90 | 253 |
| Pension contributions | 9 | 21 |
| 99 | 274 |
| During the period 1 director (2023: 2) participated in a money purchase pension scheme. |
| The emoluments of the highest paid director, excluding pension contributions, were £60,231 (2023: £132,805). Company pension contributions of £6,273, were made to the personal pension scheme on their behalf (2023: £11,067). |
| 5. | OPERATING PROFIT |
| The profit on ordinary activities before taxation is stated after: |
| 2024 | 2023 |
| £'000 | £'000 |
| Auditor's remuneration | 22 | 21 |
| Depreciation | 36 | 48 |
| Amortisation | 19 | 20 |
| (Profit) / loss on sale of fixed assets | (1 | ) | 0 |
| Hire of plant and machinery | 443 | 444 |
| Operating lease rentals |
| - other assets | 92 | 94 |
| 6. | INTEREST RECEIVABLE AND SIMILAR INCOME |
| 2024 | 2023 |
| £'000 | £'000 |
| Interest from group companies |
| Other interest receivable |
| 7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 2024 | 2023 |
| £'000 | £'000 |
| Other interest |
| HOTCHKISS LTD (REGISTERED NUMBER: 00900611) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
| 8. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 2024 | 2023 |
| £'000 | £'000 |
| Current tax: |
| UK corporation tax |
| Deferred tax |
| Tax on profit |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| 2024 | 2023 |
| £'000 | £'000 |
| Profit before tax |
| Profit multiplied by the standard rate of corporation tax in the UK of |
| Effects of: |
| Expenses not deductible for tax purposes |
| Adjustments to tax charge in respect of previous periods | ( |
) |
| Origination and reversal of timing differences | 11 | (101 | ) |
| Total tax charge | 618 | 12 |
| HOTCHKISS LTD (REGISTERED NUMBER: 00900611) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
| 9. | INTANGIBLE FIXED ASSETS |
| Patents |
| and |
| licences |
| £'000 |
| COST |
| At 1st October 2023 |
| Additions |
| At 30th September 2024 |
| AMORTISATION |
| At 1st October 2023 |
| Amortisation for year |
| At 30th September 2024 |
| NET BOOK VALUE |
| At 30th September 2024 |
| At 30th September 2023 |
| 10. | TANGIBLE FIXED ASSETS |
| Office |
| furniture |
| Plant and | and | Motor |
| machinery | equipment | vehicles | Totals |
| £'000 | £'000 | £'000 | £'000 |
| COST |
| At 1st October 2023 |
| Additions |
| Disposals | ( |
) | ( |
) | ( |
) | ( |
) |
| At 30th September 2024 |
| DEPRECIATION |
| At 1st October 2023 |
| Charge for year |
| Eliminated on disposal | ( |
) | ( |
) | ( |
) | ( |
) |
| At 30th September 2024 |
| NET BOOK VALUE |
| At 30th September 2024 |
| At 30th September 2023 |
| HOTCHKISS LTD (REGISTERED NUMBER: 00900611) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
| 11. | FIXED ASSET INVESTMENTS |
| Shares in |
| group |
| undertakings |
| £'000 |
| COST |
| At 1st October 2023 |
| and 30th September 2024 |
| NET BOOK VALUE |
| At 30th September 2024 |
| At 30th September 2023 |
| The company owns 100% of the issued ordinary shares of £1 each of D G Palmer Limited, a company incorporated in England and Wales, registered address 7 Marshall Road, Eastbourne, BN22 9AX, whose principal activity is the installation of ventilation and air conditioning systems. |
| The D G Palmer Limited profit for the period and the aggregate amount of capital and reserves at the end of the year were £12,721 (2023: Loss £10,941) and £25,718 (2023: £12,997) respectively. |
| 12. | STOCKS |
| 2024 | 2023 |
| £'000 | £'000 |
| Raw materials |
| Stock recognised in cost of sales during the year as an expense was £580,407 (2023: £1,478,142). |
| 13. | DEBTORS |
| 2024 | 2023 |
| £'000 | £'000 |
| Amounts falling due within one year: |
| Trade debtors |
| Amounts owed by group undertakings |
| Amounts recoverable on contract |
| Other debtors |
| VAT |
| Prepayments |
| Amounts falling due after more than one year: |
| Amounts recoverable on contract |
| Aggregate amounts |
| HOTCHKISS LTD (REGISTERED NUMBER: 00900611) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
| 13. | DEBTORS - continued |
| Included in amounts recoverable on contracts is an amount of £622,968 (2023: £926,457) which falls due after more than 1 year. |
| Amounts owed by group undertakings includes £6,043,354 (2023: £5,397,158) due from Grob Group Limited. This sum is repayable on demand and is not subject to interest. This also includes amounts owed to group undertakings regarding trading related liabilities amounting to £154,909 (2023: £19,836) due to Fire Protection Limited, £193,118 (2023: £nil) owed by D G Palmer Limited and £381,155 (2023: £nil) owed by group undertakings by Lefactory Limited. |
| 14. | CASH AT BANK AND IN HAND |
| 2024 | 2023 |
| £'000 | £'000 |
| Cash at bank and in hand | 1,874 | 843 |
| 1,874 | 843 |
| 15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £'000 | £'000 |
| Other loans (see note 17) |
| Finance leases (see note 18) |
| Trade creditors |
| Tax |
| Social security and other taxes |
| Other creditors |
| Payments received on account |
| Accrued expenses |
| Payments received on account represents amounts due to customers in respect of contract work. |
| Other creditors includes £43,607 (2023: £37,328) due in respect of pension contributions. The amount of contributions included therein in relation to directors is £nil (2023: £2,505). |
| 16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| 2024 | 2023 |
| £'000 | £'000 |
| Other loans (see note 17) |
| Finance leases (see note 18) |
| Contract liability accrual | 125 | - |
| HOTCHKISS LTD (REGISTERED NUMBER: 00900611) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
| 17. | LOANS |
| An analysis of the maturity of loans is given below: |
| 2024 | 2023 |
| £'000 | £'000 |
| Amounts falling due within one year or on demand: |
| Other loans |
| Amounts falling due between one and two years: |
| Other loans - 1-2 years | 107 |
| Amounts falling due between two and five years: |
| Other loans - 2-5 years |
| 18. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Finance leases |
| 2024 | 2023 |
| £'000 | £'000 |
| Net obligations repayable: |
| Within one year |
| Between one and five years |
| The above finance lease commitments are secured against the Coil Line asset to which the lease relates. |
| Non-cancellable | operating leases |
| 2024 | 2023 |
| £'000 | £'000 |
| Within one year |
| Between one and five years |
| In more than five years |
| HOTCHKISS LTD (REGISTERED NUMBER: 00900611) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
| 19. | 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. |
| 20. | PROVISIONS FOR LIABILITIES |
| 2024 | 2023 |
| £'000 | £'000 |
| Deferred tax | 3 | - |
| Deferred |
| tax |
| £'000 |
| Provided during year |
| Balance at 30th September 2024 |
| The company has recognised its deferred taxation liability of £3,025 (2023: £11,804 not recognised). |
| 21. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2024 | 2023 |
| value: | £'000 | £'000 |
| Ordinary | £1 | 5 | 5 |
| Called up share capital represents the nominal value of shares that have been issued. |
| 22. | RESERVES |
| Retained |
| earnings |
| £'000 |
| At 1st October 2023 |
| Profit for the year |
| At 30th September 2024 |
| 23. | PENSION COMMITMENTS |
| The company participates in three pension schemes operated by Grob Group Limited. Particulars of the group schemes are contained in the financial statements of Grob & Co Holdings Limited, the ultimate parent undertaking. |
| HOTCHKISS LTD (REGISTERED NUMBER: 00900611) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30TH SEPTEMBER 2024 |
| 24. | RELATED PARTY DISCLOSURES |
| The company's ultimate parent undertaking is Grob & Co Holdings Ltd. Grob & Co Holdings Ltd is a company registered in England and Wales and heads the overall group in which the results of the company are consolidated. |
| The ultimate controlling party of the group is Mr O C Y Grob. |
| As the company is a wholly owned subsidiary of Grob & Co Holdings Limited, the company has taken advantage of the exemption contained in FRS 102 and has not disclosed transactions or balances with entities which form part of the group. 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. |
| Directors consider that all key management personnel are directors of the company, information regarding key management personnel compensation is included in directors emoluments, note 4 of these accounts. |
| 25. | CONTROLLING PARTIES |
| The company's parent undertaking is Grob & Co Holdings Limited. The ultimate controlling party of the group is Mr O C Y Grob. |
| Grob & Co Holdings Limited is a company registered in England and Wales. It is the company's ultimate parent undertaking and heads the largest group in which the results of the company are consolidated. |