Company No: 00243035 (England and Wales)

Contents

• Company Information
• Strategic Report
• Directors' Report
• Directors' Responsibilities Statement
• Independent Auditor's Report
• Statement of Comprehensive Income
• Balance Sheet
• Statement of Changes in Equity
• Statement of Cash Flows
• Notes to the Financial Statements

DIRECTORS	Mrs E P Burgon
	Mr M I A Hughes

SECRETARY

Mrs C C Hughes

REGISTERED OFFICE	Station Road
	Stalbridge
	DT10 2RZ
	United Kingdom

COMPANY NUMBER

00243035 (England and Wales)

AUDITOR	Old Mill Audit Limited
	Statutory Auditor
	Maltravers House
	Petters Way
	Yeovil
	Somerset
	BA20 1SH
	United Kingdom

The directors present their Strategic Report for the financial year ended 31 December 2024.

REVIEW OF THE BUSINESS

William Hughes Ltd made a loss before tax of £58,256 in the year to 31 December 2024 compared to a profit before tax of £651,303 in the prior year. As turnover was impacted by delays in launching production of certain new model cars to the market, the directors have undertaken a review of all operating area costs and processes to return to profitability, whilst they await demands to scale up production.

Turnover has decreased to £10,284,393 (2023: £11,640,180)

At the year end, shareholders’ funds have decreased from £1,849,272 to 1,594,976.

The directors monitor the performance of the company be preparing annual budget in advance and using a number of financial key performance indicators, including:
-Gross margin
-Direct wages / Sales
-Material usage / sales

PRINCIPAL RISKS AND UNCERTAINTIES

2024 saw a global downturn in manufacturing. Though inflation is down there are still significant cost pressures.
2025 looks to be more stable but investment decisions are being considered with a lot of caution.

The major business risk and challenges to the business are market competition and the need to stay on top of technology, automation and AI developments.

The company manages these risks by continuous improvement in staff training and investment in modern technologies.

FUTURE DEVELOPMENTS

The directors are determined to focus on productivity, cost control and efficiency of production.

The company undertakes research and development activities identifying innovative solutions.

Approved by the Board of Directors and signed on its behalf by:

M I A Hughes Director

Station Road
Stalbridge
DT10 2RZ
United Kingdom

06 June 2025

The directors present their annual report on the affairs of the Company, together with the financial statements and auditors’ report, for the financial year ended 31 December 2024.

PRINCIPAL ACTIVITIES

The principal activity of the Company during the financial year continued to be that of the manufacture of wire and spring products.

DIVIDENDS

Ordinary dividends were paid amounting to £195,545. The directors do not recommend payment of a final dividend.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company's activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk.

Cash flow risk

The Company's activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates.

Interest bearing assets and liabilities are held at fixed rate to ensure certainty of cash flows.

Credit risk

Trade debtors are managed in respect of credit and cash flow by regularly monitoring the credit offered to customers and the amounts outstanding in excess of repayment terms and time limits.

Trade creditors are managed by ensuring sufficient funds are available to meet the amounts due. The business looks at maintaining the positive trading relationships and customer goodwill.

Liquidity risk

The company manages its liquidity risk by ensuring that there are sufficient funds to meet the monthly repayment commitment on loans, some of which include interest.

Foreign currency risk

The company is exposed to currency risk on its foreign transactions on the dates of exchange. The company uses foreign bank accounts to manage this risk.

DIRECTORS

The directors, who served during the financial year and to the date of this report except as noted, were as follows:

Mrs E P Burgon
Mr M I A Hughes

AUDITOR

Each of the persons who is a director at the date of approval of this report confirms that:

* So far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware; and

* The director has taken all the steps that they ought to have taken as a director in order to make himself/herself aware of any relevant audit information and to establish that the Company's auditor is aware of that information.


Old Mill Audit Limited have expressed their willingness to continue in office as auditor and appropriate arrangements have been put in place for them to be deemed reappointed as auditors following an Annual General Meeting.

Approved by the Board of Directors and signed on its behalf by:

M I A Hughes Director

Station Road
Stalbridge
DT10 2RZ
United Kingdom

06 June 2025

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”. 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 financial period.

In preparing these financial statements, the directors are required to:
* Select suitable accounting policies and then apply them consistently;
* Make judgements and accounting estimates that are reasonable and prudent;
* Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. The directors 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.

Report on the audit of the financial statements

Opinion

In our opinion the financial statements of William Hughes Limited (the 'Company'):
* Give a true and fair view of the state of the Company's affairs as at 31 December 2024 and of its loss for the financial year then ended;
* Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”; and
* Have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements which comprise:
* The Statement of Comprehensive Income;
* The Balance Sheet;
* The Statement of Changes in Equity;
* The Statement of Cash Flows; and
* The related notes 1 to 25.

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).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's 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 Financial Reporting Council's (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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. 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.

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 course of 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.

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the 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.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that 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.

We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006, UK tax legislation and compliance with industry quality standards IATF 16949, ISO 9001 and AS9100. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and review of quality inspection reports. 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. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:
* reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
* performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
* enquiring of management concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and
* reading minutes of meetings of those charged with governance.

Report on other legal and regulatory requirements

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 Director' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
* The Strategic Report and the Director' Report have been prepared in accordance with applicable legal requirements.

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 any material misstatements in the Strategic Report or the Director' Report.

Matters on which we are required to report by exception

Under the Companies Act 2006 we are required to report in respect of the following matters 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.

We have nothing to report in respect of these matters.

Use of our report

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Philip Mills MSc BA ACA (Senior Statutory Auditor)
For and on behalf of Old Mill Audit Limited
Statutory Auditor

Maltravers House
Petters Way
Yeovil
Somerset
BA20 1SH
United Kingdom

12 June 2025

	Note	2024		2023
		£		£
Turnover	3	10,284,393		11,640,180
Cost of sales		( 9,006,316)		( 9,561,026)
Gross profit		1,278,077		2,079,154
Distribution costs		( 3,127)		( 13,297)
Administrative expenses		( 1,453,796)		( 1,523,465)
Other operating income	4	156,364		165,999
Operating (loss)/profit		( 22,482)		708,391
Interest receivable and similar income	5	2,487		0
Interest payable and similar expenses	5	( 38,261)		( 57,088)
(Loss)/profit before taxation	6	( 58,256)		651,303
Tax on (loss)/profit	10	( 482)		( 161,784)
(Loss)/profit for the financial year		( 58,738)		489,519
Other comprehensive income		0		0
Total comprehensive (loss)/income		( 58,738)		489,519

All amounts relate to continuing operations.

	Note	2024		2023
		£		£
Fixed assets
Tangible assets	12	279,929		456,813
Investments	13	2,609		0
		282,538		456,813
Current assets
Stocks	14	465,671		341,586
Debtors
- due within one year	15	2,668,180		3,401,737
- due after more than one year	15	122,500		152,500
Cash at bank and in hand		625,389		621,441
		3,881,740		4,517,264
Creditors: amounts falling due within one year	16	( 2,318,434)		( 2,709,503)
Net current assets		1,563,306		1,807,761
Total assets less current liabilities		1,845,844		2,264,574
Creditors: amounts falling due after more than one year	17	( 239,503)		( 403,950)
Provision for liabilities	18	( 11,352)		( 11,352)
Net assets		1,594,989		1,849,272
Capital and reserves	21
Called-up share capital		6,000		6,000
Share premium account		12,000		12,000
Profit and loss account		1,576,989		1,831,272
Total shareholder's funds		1,594,989		1,849,272

The financial statements of William Hughes Limited (registered number: 00243035) were approved and authorised for issue by the Board of Directors on 06 June 2025. They were signed on its behalf by:

M I A Hughes Director

	Called-up share capital		Share premium account		Profit and loss account		Total
	£		£		£		£
At 01 January 2023	6,000		12,000		1,498,236		1,516,236
Profit for the financial year	0		0		489,519		489,519
Total comprehensive income	0		0		489,519		489,519
Dividends paid on equity shares (note 11)	0		0		( 156,483)		( 156,483)
At 31 December 2023	6,000		12,000		1,831,272		1,849,272
At 01 January 2024	6,000		12,000		1,831,272		1,849,272
Loss for the financial year	0		0		( 58,738)		( 58,738)
Total comprehensive loss	0		0		( 58,738)		( 58,738)
Dividends paid on equity shares (note 11)	0		0		( 195,545)		( 195,545)
At 31 December 2024	6,000		12,000		1,576,989		1,594,989

	2024		2023
	£		£
Net cash flows from operating activities (note 23)	493,522		1,795,881
Cash flows from investing activities
Purchase of plant and machinery	( 16,375)		( 22,750)
Proceeds from sale of intangible assets	250		0
Investment in subsidiary	(2,609)		0
Net cash flows from investing activities	( 18,734)		( 22,750)
Cash flows from financing activities
Repayments of borrowings	( 50,641)		( 48,349)
Payment of finance leases obligations	(224,654)		(239,416)
Dividends paid	(195,545)		(156,487)
Net cash flows from financing activities	( 470,840)		( 444,252)
Net increase in cash and cash equivalents	3,948		1,328,879
Cash and cash equivalents at beginning of year	621,441		( 707,438)
Cash and cash equivalents at end of year	625,389		621,441
Reconciliation to cash at bank and in hand:
Cash at bank and in hand at end of year	619,750		618,240
Cash equivalents	5,639		3,201
Cash and cash equivalents at end of year	625,389		621,441

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

William Hughes Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is Station Road, Stalbridge, DT10 2RZ, United Kingdom.

The principal activities are set out in the Directors Report.

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 (FRS 102) applicable in the UK and Republic of Ireland issued by the Financial Reporting Council and the requirements of the Companies Act 2006.

The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.

Going concern

The directors recognise that the company has made a loss before tax of £58,256 in the financial year but have undertaken a review of all operating area costs and processes to return to profitability. The directors have assessed the Balance Sheet and the likely future cash flows at the date of approving these financial statements. The directors have noted the net current asset position of £1,563,293 (2023: £1,807,761) and, therefore, have a reasonable expectation that the Company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Foreign currency

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

Turnover

Turnover represents amounts receivable for goods net of VAT and trade discounts.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Employee benefits

Short term benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised as an expense when the Company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Defined contribution schemes
For defined contribution schemes the amounts charged to the Statement of Comprehensive Income in respect of pension costs and other post-retirement benefits are the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are shown as either accruals or prepayments in the Balance Sheet.

Other long-term employee benefits are measured at the present value of the benefit obligation at the reporting date.

Taxation

Current tax, including UK corporation tax and foreign tax, is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the Balance Sheet date where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the Balance Sheet date. Timing differences are differences between the Company's taxable profits and its results as stated in the financial statements that arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in the financial statements.

Deferred tax liabilities are recognised for timing differences arising from investments in subsidiaries and associates, except where the Company is able to control the reversal of the timing difference and it is probable that it will not reverse in the foreseeable future.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date that are expected to apply to the reversal of the timing difference. Deferred tax relating to property, plant and equipment is measured using the revaluation model and investment property is measured using the tax rates and allowances that apply to the sale of the asset.

Where items recognised in the Statement of Comprehensive Income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income.

Current tax assets and liabilities are offset only when there is a legally enforceable right to set off the amounts and the Company intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. Deferred tax assets and liabilities are offset only if: a) the Company has a legally enforceable right to set off current tax assets against current tax liabilities; and b) the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on the Company and the Company intends either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Plant and machinery	3 - 5 years straight line
Vehicles	30 % reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Leases

The Company as lessee
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the Balance Sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each Balance Sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Profit and Loss Account.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost includes materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity. Cost is calculated using the AVCO (average costing) method. Provision is made for obsolete, slow-moving or defective items where appropriate.

Stocks are held for both manufacturing and resale and no distinction is made between the two categories.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in creditors: amounts falling due within one year.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle that 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 Balance Sheet date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

2. Critical accounting judgements and key sources of estimation uncertainty

In the application of the Company’s accounting policies, which are described in note 1, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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

Critical judgements in applying the Company’s accounting policies

The following are the critical judgements, apart from those involving estimations (which are dealt with separately below), that the directors have made in the process of applying the Company’s accounting policies and that have the most significant effect on the amounts recognised in the financial statements.

Key source of estimation on uncertainty – useful economic lives of tangible assets

The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. Determination of appropriate useful economic lives is a key judgement and the useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

Key source of estimation uncertainty – bad debt provision

In assessing the recoverability of debtors, amounts falling due within one year, the directors have made the assumption that any impairment resulting from the non-recoverability of the debtors owed to the Company will not be in excess of the bad debt provision that has been put in place. The directors believe that the bad debt provision represents an appropriate estimate and as a result no further provisioning is required. The provision is based on reviews of specific balances, including historic collectability and the aging of the balance. The bad debt provision at the reporting date was £19,082 (2023: £15,791).

Calculation of residual values of tangible assets

Estimated residual value of tangible assets is reviewed annually with consideration given to any changes in market prices and improvements in technology that would alter demand for such tangible assets.

3. Turnover

Turnover represents the fair value of goods provided to customers during the financial year excluding value added tax.

Breakdown by geographical market:

An analysis of the Company's turnover by geographical market is set out below.

	2024		2023
	£		£
UK	6,019,432		6,757,876
Europe	3,916,667		3,955,231
Rest of the World	348,294		927,073
	10,284,393		11,640,180

4. Other operating income

	2024		2023
	£		£
Grant income	860		860
Management charges	155,504		165,139
	156,364		165,999

5. Interest receivable and interest payable

	2024		2023
	£		£
Interest receivable and similar income	2,487		0
Interest payable and similar expenses	( 38,261)		( 57,088)
	(35,774)		(57,088)

Interest payable and similar expenses

	2024		2023
	£		£
Bank loans and overdrafts	( 12,463)		( 30,237)
Finance leases and hire purchase contracts	( 25,798)		( 26,851)
	( 38,261)		( 57,088)

6. (Loss)/profit before taxation

(Loss)/profit before taxation is stated after charging/(crediting):

	2024		2023
	£		£
Depreciation of tangible fixed assets (note 12)	242,167		250,864
Government grants	( 860)		( 860)
Operating lease rentals	114,348		156,348
Foreign exchange losses/(gains)	62,485		( 11,012)
Gain on disposal of fixed assets	( 363)		0

7. Auditor's remuneration

An analysis of the auditor's remuneration is as follows:

	2024		2023
	£		£
Fees payable to the Company’s auditor and its associates for the audit of the Company's annual financial statements:	20,000		18,020
Total audit fees	20,000		18,020

8. Staff number and costs

	2024		2023
	Number		Number
The average monthly number of employees (including directors) was:
Production	82		87
Sales and administration	29		28
Directors	2		2
	113		117

Their aggregate remuneration comprised:

	2024		2023
	£		£
Wages and salaries	3,209,414		3,372,187
Social security costs	263,451		254,416
Other retirement benefit costs	111,227		108,212
	3,584,092		3,734,815

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. All amounts disclosed above as other retirement benefit costs represent contributions to this scheme.

9. Directors' remuneration

	2024		2023
	£		£
Directors' emoluments	40,446		29,824
Company contributions to money purchase pension schemes	22,926		19,314
	63,372		49,138

	2024		2023
	Number		Number
Members of a money purchase pension scheme	1		1

10. Tax on (loss)/profit

	2024		2023
	£		£
Current tax on (loss)/profit
UK corporation tax	3,085		163,497
Total current tax	3,085		163,497
Deferred tax
Origination and reversal of timing differences	( 2,603)		( 1,713)
Total deferred tax	( 2,603)		( 1,713)
Total tax on (loss)/profit	482		161,784

Tax reconciliation

The tax assessed for the year is higher than (2023: higher than) the standard rate of corporation tax in the UK:

	2024		2023
	£		£
(Loss)/profit before taxation	(58,256)		651,303
Tax on (loss)/profit at standard UK corporation tax rate of 25.00% (2023: 23.52%)	( 14,564)		153,186
Effects of:
Expenses not deductible for tax purposes	15,225		14,667
Adjustments in respect of prior years	0		( 5,972)
Remeasurement of deferred tax for changes in tax rates	0		(97)
Marginal Relief	(179)		0
Total tax charge for year	482		161,784

11. Dividends on equity shares

	2024		2023
	£		£
Amounts recognised as distributions to equity holders in the financial year:
Interim dividend for the financial year ended 31 December 2024	195,545		156,487

12. Tangible assets

	Plant and machinery		Vehicles		Total
	£		£		£
Cost
At 01 January 2024	2,229,183		96,413		2,325,596
Additions	48,945		16,375		65,320
Disposals	0		( 12,495)		( 12,495)
At 31 December 2024	2,278,128		100,293		2,378,421
Accumulated depreciation
At 01 January 2024	1,807,298		61,485		1,868,783
Charge for the financial year	229,043		13,124		242,167
Disposals	0		( 12,458)		( 12,458)
At 31 December 2024	2,036,341		62,151		2,098,492
Net book value
At 31 December 2024	241,787		38,142		279,929
At 31 December 2023	421,885		34,928		456,813
Leased assets included above:
Net book value
At 31 December 2024	236,289		0		236,289
At 31 December 2023	412,506		0		412,506

13. Fixed asset investments

	2024		2023
	£		£
Subsidiary undertakings	2,609		0

Investments in subsidiaries

	2024
	£
Cost
At 01 January 2024	0
Additions	2,609
At 31 December 2024	2,609
Carrying value at 31 December 2024	2,609
Carrying value at 31 December 2023	0

14. Stocks

	2024		2023
	£		£
Stocks	465,671		341,586

There are no material differences between the replacement cost of stock and the Balance Sheet amounts.

15. Debtors

	2024		2023
	£		£
Debtors: amounts falling due within one year
Trade debtors	1,611,845		2,426,138
Amounts owed by related parties (note 24)	774,430		373,478
VAT recoverable	13,981		( 96,182)
Other debtors	1,837		383,561
Prepayments	262,183		311,824
Amounts owed by directors (note 24)	0		1,617
Deferred tax asset	3,904		1,301
	2,668,180		3,401,737
Debtors: amounts falling due after more than one year
Amounts owed by related parties (note 24)	122,500		152,500

16. Creditors: amounts falling due within one year

	2024		2023
	£		£
Bank loans and overdrafts	48,788		48,804
Obligations under finance leases and hire purchase contracts	157,337		219,224
Directors loans (note 24)	37,509		13,718
Trade creditors	221,066		592,876
Amounts owed to Parent undertakings (note 24)	100,011		100,011
Amounts owed to related parties (note 24)	1,112,353		660,326
Taxation and social security	52,140		253,191
Accruals	105,166		74,074
Other creditors	484,064		747,279
	2,318,434		2,709,503

Bank loans are repayable over 120 months ending in 2025 and over 126 months ending in 2030. Interest is charged on these loans at 3.47 - 4.64%. The loans do not include any restrictions that will impact upon trade. The loans are secured by an unlimited guarantee on the assets of the company and an intercompany unlimited cross guarantee.

Finance leases of £157,337 (2023 - £219,224) are secured on the assets to which they relate.

Intercompany guarantees to bankers exist supported by legal charges on debentures, freehold and leasehold property owned by High Tension Wires Limited, Stateview Finance Limited, Stalbridge Finance Limited, William Hughes Limited, Longmead Finance Limited and William Hughes Sidings Limited.

The loan due within one year of £131,783 (2023 - £nil) is secured by way of a fixed and floating charge over all the property of the company.

17. Creditors: amounts falling due after more than one year

	2024		2023
	£		£
Bank loans and overdrafts	159,052		209,677
Obligations under finance leases and hire purchase contracts	79,751		193,573
Other creditors	700		700
	239,503		403,950

Bank loans are repayable over 120 months ending in 2025 and over 126 months ending in 2030. Interest is charged on these loans at 3.47 - 4.64%. The loans do not include any restrictions that will impact upon trade. The loans are secured by an unlimited guarantee on the assets of the company and a intercompany unlimited cross guarantee.

The company acquires a proportion of its fixed assets under finance leases. These leases have terms of 1 to 5 years.

Other creditors are cumulative irredeemable shares.

Bank loans
	2024		2023
	£		£
Between one and two years	48,788		48,788
Between two and five years	89,523		89,523
After five years	20,741		71,366
	159,052		209,677
On demand or within one year	48,788		48,788
	207,840		258,465

Finance leases
	2024		2023
	£		£
Between one and two years	79,751		187,424
Between two and five years	0		6,149
After five years	0		0
	79,751		193,573
On demand or within one year	157,337		219,224
	237,088		412,797

Directors loans
	2024		2023
	£		£
Between one and two years	0		0
Between two and five years	0		0
After five years	0		0
	0		0
On demand or within one year	37,509		13,718
	37,509		13,718

Total borrowings including finance leases
	2024		2023
	£		£
Between one and two years	128,539		236,212
Between two and five years	89,523		95,672
After five years	20,741		71,366
	238,803		403,250
On demand or within one year	243,634		281,730
	482,437		684,980

18. Provision for liabilities

	Other		Total
	£		£
At 01 January 2024	11,352		11,352
At 31 December 2024	11,352		11,352

The company has a contractual commitment to restore the leased premises to their original condition when the lease ends. The directors estimate the cost of doing this to be £11,352.

19. Deferred tax

	2024		2023
	£		£
At the beginning of financial year	1,301		( 412)
Credited to the Profit and Loss Account	2,603		1,713
At the end of financial year	3,904		1,301

The deferred tax liability of £412 set out above relating to accelerated capital allowances is expected to reverse over the lifetime of the assets to which it relates.

The deferred tax asset of £3,904 (2023 - £1,301) is in respect of short term riming differences and will be reversed within 12 months.

20. Financial instruments

The carrying values of the Company’s financial assets and liabilities are summarised by category below:

	2024		2023
	£		£
Financial assets
Measured at undiscounted amount receivable
Trade debtors (note 15)	1,611,845		2,426,138
Other debtors (note 15)	1,837		383,561
Amounts owed by related parties (note 15)	896,930		525,978
Amounts owed by directors (note 15)	0		1,617
	2,510,612		3,337,294
Financial liabilities
Measured at amortised cost
Bank loans and other loans	( 207,840)		( 258,465)
Obligations under finance leases	( 237,088)		( 412,797)
Cumulative irredeemable preference shares	(700)		(700)
Measured at undiscounted amount payable
Bank overdraft (note 16)	0		( 16)
Trade creditors (note 16)	( 221,066)		( 592,876)
Other payables (note 16 and note 17)	( 484,818)		( 747,979)
Amounts owed to Parent undertakings (note 16)	( 100,011)		( 100,011)
Amounts owed to related parties (note 16)	( 1,112,353)		( 660,326)
Amounts owed to directors (note 16)	( 37,509)		( 13,718)
	(2,401,385)		(2,786,888)

21. Called-up share capital and reserves

	2024		2023
	£		£
Allotted, called-up and fully-paid
6,000 Ordinary shares of £ 1.00 each	6,000		6,000
700 Preference shares of £ 1.00 each	700		700
	6,700		6,700
Presented as follows:
Called-up share capital presented as equity	6,000		6,000

The Company's other reserves are as follows:

The share premium reserve contains the premium arising on issue of equity shares, net of issue expenses.

The profit and loss reserve represents cumulative profits or losses, net of dividends paid and other adjustments.

Ordinary shares carry full voting, equity and dividend rights.

Preference shares are irredeemable and confer the right to a fixed cumulative preferential dividend at the rate of 6% per annum.

22. Financial commitments

Commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

	2024		2023
	£		£
within one year	316,874		355,835
between one and five years	0		156,000
	316,874		511,835

Intercompany guarantees to bankers exist supported by legal charges on debentures, freehold and leasehold property owned by High Tension Wires Limited, Stateview Finance Limited, Stalbridge Finance Limited, William Hughes Limited, Longmead Finance Limited and William Hughes Sidings Limited.

23. Statement of Cash Flows

	2024		2023
	£		£
Operating (loss)/profit	( 22,482)		708,391
Adjustment for:
Depreciation and amortisation	242,167		250,860
Increase in provisions	0		5,935
Profit on sale of plant and equipment	( 213)		0
Operating cash flows before movement in working capital	219,472		965,186
(Increase)/decrease in stocks	( 124,085)		159,724
Decrease in debtors	766,160		871,676
Decrease in creditors	( 78,936)		( 89,758)
Cash generated by operations	782,611		1,906,828
Income taxes paid	( 253,315)		( 53,881)
Interest paid	( 35,774)		( 57,066)
Net cash flows from operating activities	493,522		1,795,881

	Balance at 01 January 2024		Cash flows		New finance leases		Balance at 31 December 2024
	£		£		£		£
Cash at bank and in hand	621,440		3,950		0		625,390
	621,424		3,966		0		625,390
Bank loans	( 258,726)		50,886		0		( 207,840)
Finance leases	( 412,795)		224,654		( 48,945)		( 237,086)
	( 671,521)		275,540		( 48,945)		( 444,926)
Net debt	( 50,097)		279,506		( 48,945)		180,464

24. Related party transactions

Transactions with related parties or connected persons

Amounts owed by related parties

	2024		2023
	£		£
Other related party	896,930		525,978

All balances are repayable on demand and bear no interest.

Amounts owed to related parties

	2024		2023
	£		£
Other related parties	1,349,441		1,073,122
Entities with control, joint control or significant influence over the company	100,011		100,011
	1,449,452		1,173,133

All balances are repayable on demand and bear no interest.

Transactions with Related Parties

	2024		2023
	£		£
Other related parties sales	(465,012)		(643,626)
Other related parties purchases	4,133,139		4,102,058
	3,668,127		3,458,432

Dividends totalling £195,545 (2023: £156,487) were paid in the year to the parent company High Tension Wires Limited.

Transactions with the entity’s directors (or members of its governing body)

Amounts owed by directors

	2024		2023
	£		£
Director's loan account	0		1,617

Amounts owed to directors

	2024		2023
	£		£
Directors' loan account	37,509		13,718

25. Controlling party

Parent Company:

High Tension Wires Limited

Station Road, Stalbridge, Dorset, DT10 2RZ

The company is controlled by High Tension Wires Limited, by virtue of its majority shareholding. High Tension Wires Limited is controlled by its directors and incorporated in England and Wales.