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Registered number: 00147014










John Hogg Technical Solutions Limited










Annual Report and Financial Statements

For the year ended 30 September 2024

 
John Hogg Technical Solutions Limited
 

Company Information


Directors
WR Webb 
SP Wright 
Dr PJ Double 
V Sayer 




Company secretary
L Case



Registered number
00147014



Registered office
Mellors Road
Newbridge

Trafford Park

Manchester

M17 1PB




Independent auditor
Sumer Auditco NI Limited
Statutory Auditors

Glendinning House

6 Murray Street

Belfast

BT1 6DN




Bankers
Natwest Bank plc
Third Avenue

Trafford Park

Manchester

M17 1NW





 
John Hogg Technical Solutions Limited
 

Contents



Page
Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditor's Report
 
5 - 8
Statement of Comprehensive Income
 
9
Balance Sheet
 
10
Statement of Changes in Equity
 
11
Notes to the Financial Statements
 
12 - 27


 
John Hogg Technical Solutions Limited
 

Strategic report
For the year ended 30 September 2024

Introduction
 
The directors present their Strategic report on the company for the year ended 30 September 2024.

Principal activity and business review
 
The principal activity of the company is the development, manufacture and supply of specialist additives and associated ancillary equipment and services for companies and governments involved in the international petroleum and speciality chemical industries.
JHTS recorded a turnover of £53.5m and pre-tax profits of £7.6m in the financial year 2023/24, which represented a good trading performance in an exceptional year of transition and re-stocking for key markets. The strategy of the business focuses on sustainable investment that delivers value to its customers and growth through developing new technologies and entering new markets.
The directors consider the results for the year and the position of the Company at the year end to be satisfactory
and expect the Company to maintain an acceptable level of activity in the foreseeable future.

Principal risks and uncertainties
 
The Company's operations expose it to a variety of financial risks that include the effects of changes in commodity prices, foreign exchange risk, liquidity risk and interest rate risk. The company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the Company by monitoring levels of debt finance and the related finance costs. 

Financial risk management
Given the size of the Company, the directors have not delegated the responsibility of monitoring financial risk management to a sub committee of the board. The policies set by the board of directors are implemented by the Company's finance department. 
Price risk
The Company is exposed to commodity price risk as a result of its operations, which can affect its financial performance. The Company’s policy is to draw on its extensive market knowledge to mitigate the impact of price changes wherever possible, and the directors will revisit the appropriateness of this policy should the Company's operation change in size or nature. The Company has no exposure to equity securities price risk as it holds no listed or other equity investments.
Foreign exchange risk
While a significant part of the Company's revenues and expenses are denominated in Sterling, the Company is exposed to some foreign exchange risk in the normal course of business, principally on purchases and sales in Euros and US Dollars.  Currently the Company manages exposure to this risk by natural hedging and, whilst the Company does not use financial instruments currently to hedge foreign exchange exposure, this is constantly reviewed.
Credit risk 
Credit risk arises from cash and cash equivalents with banks and financial institutions, as well as credit exposure to customers. The Company has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to individual customers is subject to a limit, which is reassessed regularly by the board. The financial position of banks and financial institutions utilised is regularly assessed by the board of directors.
 
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Page 1

 
John Hogg Technical Solutions Limited
 

Strategic report (continued)
For the year ended 30 September 2024

Liquidity risk 
The Company actively maintains a mixture of long term and short term debt finance options that are designed to ensure the Company has sufficient available funds for operations and planned expansions.

Interest rate risk 
The company has both interest bearing assets and interest bearing liabilities. Interest bearing assets consist of cash balances which earn interest at variable rates. Interest bearing liabilities consist of other loans, including loans from group undertakings on which the company pays interest at fixed rates. The company has a policy of maintaining debt at a mixture of fixed and variable rates. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature.

Financial key performance indicators
 
The directors consider the key performance indicators to be turnover and operating profit. Turnover for the year was £53,517,122 (2023: £32,016,755) and operating profit was £7,544,322 (2023: £3,389,548).


This report was approved by the board on 6 March 2025 and signed on its behalf.



SP Wright
Director

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Page 2

 
John Hogg Technical Solutions Limited
 

 
Directors' report
For the year ended 30 September 2024

The directors present their report and the financial statements for the year ended 30 September 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 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 period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent; and

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £5,864,339 (2023 - £2,925,853).

A dividend of £Nil (2023: £1,500,000) was paid during the financial year.

Directors

The directors who served during the year were:

WR Webb 
SP Wright 
Dr PJ Double 
V Sayer (appointed 1 May 2024)

Future developments

The directors consider the results for the year and the position of the company at the year end to be satisfactory and expect the company to maintain its present level of activity in the foreseeable future. 

Research and development activities

The company is strongly committed to research and development activities in order to secure and enhance its position in the market. 

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John Hogg Technical Solutions Limited
 

 
Directors' report (continued)
For the year ended 30 September 2024

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed 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 ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Post balance sheet events

Following the year end the company acquired Avocet Dye and Chemical Co. Limited, a company registered in England and Wales.

Auditor

The auditor, Sumer Auditco NI Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 6 March 2025 and signed on its behalf.
 





SP Wright
Director

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John Hogg Technical Solutions Limited
 

 
Independent Auditor's Report to the Members of John Hogg Technical Solutions Limited
 

Opinion


We have audited the financial statements of John Hogg Technical Solutions Limited (the 'Company') for the year ended 30 September 2024, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 30 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 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 United Kingdom, including the Financial Reporting Council'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.


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Page 5

 
John Hogg Technical Solutions Limited
 

 
Independent Auditor's Report to the Members of John Hogg Technical Solutions Limited (continued)


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 ReportOur 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.


Opinion 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 Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of 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 Directors' report.


We have nothing to report in respect of the following matters in relation to which 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 Directors' responsibilities statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


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


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John Hogg Technical Solutions Limited
 

 
Independent Auditor's Report to the Members of John Hogg Technical Solutions Limited (continued)


Auditor's responsibilities for the audit of the financial statements
 

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


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the Company and the industry in which they operate, and considered the risk of acts by the Company that were contrary to applicable laws and regulations, including fraud. We considered the opportunities and incentives that may exist within the Company for fraud and identified the greatest potential for fraud in the following areas: management override of controls and fraud risk relating to revenue.
We designed audit procedures to respond to these risks, 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. Our audit procedures included: enquiries of management about their own identification and assessment of risks of irregularities, testing the design and implementation of controls relating to the risks, sample testing of journals posted during the year, revenue cut off testing and agreeing a sample of revenue items to dispatch documentation.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 Auditor's report.


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John Hogg Technical Solutions Limited
 

 
Independent Auditor's Report to the Members of John Hogg Technical Solutions Limited (continued)


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 2006Our 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.





Brian Clerkin (Senior Statutory Auditor)
  
for and on behalf of
Sumer Auditco NI Limited
 
Statutory Auditors
  
Glendinning House
6 Murray Street
Belfast
BT1 6DN

6 March 2025
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John Hogg Technical Solutions Limited
 

Statement of comprehensive income
For the year ended 30 September 2024

2024
2023
Note
£
£

  

Turnover
 4 
53,517,122
32,016,755

Cost of sales
  
(36,861,479)
(22,886,508)

Gross profit
  
16,655,643
9,130,247

Administrative expenses
  
(9,111,321)
(5,740,699)

Operating profit
 5 
7,544,322
3,389,548

Interest receivable and similar income
 8 
92,916
46,511

Interest payable and similar expenses
 9 
(14,114)
(1,603)

Profit before tax
  
7,623,124
3,434,456

Tax on profit
 10 
(1,758,785)
(508,603)

Profit for the financial year
  
5,864,339
2,925,853

There was no other comprehensive income for 2024 (2023£Nil).
All amounts relate to continuing operations.

The notes on pages 12 to 27 form part of these financial statements.

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John Hogg Technical Solutions Limited
Registered number: 00147014

Balance sheet
As at 30 September 2024

2024
2024
2023
2023
Note
£
£
£
£

Fixed assets
  

Tangible assets
 13 
1,473,584
1,474,915

  
1,473,584
1,474,915

Current assets
  

Stocks
 14 
8,810,859
6,124,102

Debtors
 15 
8,867,042
9,013,007

Cash at bank and in hand
 16 
7,137,885
5,866,925

  
24,815,786
21,004,034

Creditors: amounts falling due within one year
 17 
(5,876,910)
(7,950,623)

Net current assets
  
 
 
18,938,876
 
 
13,053,411

Total assets less current liabilities
  
20,412,460
14,528,326

Provisions for liabilities
  

Deferred tax
 18 
(33,272)
(13,477)

Net assets
  
20,379,188
14,514,849


Capital and reserves
  

Called up share capital 
 19 
117,264
117,264

Share premium account
 20 
42,114
42,114

Capital redemption reserve
 20 
2,500
2,500

Profit and loss account
 20 
20,217,310
14,352,971

Shareholders' funds
  
20,379,188
14,514,849


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 6 March 2025.




SP Wright
Dr PJ Double
Director
Director

The notes on pages 12 to 27 form part of these financial statements.

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John Hogg Technical Solutions Limited
 

Statement of changes in equity
For the year ended 30 September 2024


Called up share capital
Share premium account
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£
£


At 1 October 2022
117,264
42,114
2,500
12,927,118
13,088,996



Profit for the year
-
-
-
2,925,853
2,925,853

Dividends: Equity capital
-
-
-
(1,500,000)
(1,500,000)



At 1 October 2023
117,264
42,114
2,500
14,352,971
14,514,849



Profit for the year
-
-
-
5,864,339
5,864,339


At 30 September 2024
117,264
42,114
2,500
20,217,310
20,379,188


The notes on pages 12 to 27 form part of these financial statements.

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John Hogg Technical Solutions Limited
 

 
Notes to the financial statements
For the year ended 30 September 2024

1.


General information

The Company is a private company limited by shares and incorporated in England. The address of the registered office is Mellors Road, Newbridge, Trafford Park, Manchester, M17 1PB.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of John Hogg & Co, Limited as at 30 September 2024 and these financial statements may be obtained from Companies House.

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John Hogg Technical Solutions Limited
 

 
Notes to the financial statements
For the year ended 30 September 2024

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.4

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.5

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

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John Hogg Technical Solutions Limited
 

 
Notes to the financial statements
For the year ended 30 September 2024

2.Accounting policies (continued)


2.5
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
2-5%
Plant and machinery
-
7-50%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.6

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.7

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.

 
2.8

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.9

Financial instruments

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
 
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Page 14

 
John Hogg Technical Solutions Limited
 

 
Notes to the financial statements
For the year ended 30 September 2024

2.Accounting policies (continued)


2.9
Financial instruments (continued)


Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
 
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Page 15

 
John Hogg Technical Solutions Limited
 

 
Notes to the financial statements
For the year ended 30 September 2024

2.Accounting policies (continued)


2.9
Financial instruments (continued)


Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

 
2.10

Creditors

Short-term 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 using the effective interest method.

 
2.11

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.12

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

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Page 16

 
John Hogg Technical Solutions Limited
 

 
Notes to the financial statements
For the year ended 30 September 2024

2.Accounting policies (continued)

 
2.13

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

  
2.14

Group pension plan

Where the risks of a defined benefit plan are shared between entities under common control, each entity recognises the net defined benefit cost charged in its own financial statements.

 
2.15

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.16

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.17

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

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Page 17

 
John Hogg Technical Solutions Limited
 

 
Notes to the financial statements
For the year ended 30 September 2024

2.Accounting policies (continued)

 
2.18

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


 
2.19

Going concern

The directors have a reasonable expectation that the Company has adequate resources available to it to continue operations for the foreseeable future and, accordingly, the directors continue to adopt the going concern basis in preparing the financial statements. 

 
2.20

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.21

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

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Page 18

 
John Hogg Technical Solutions Limited
 

 
Notes to the financial statements
For the year ended 30 September 2024

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
 
(a) Critical judgements in applying the entity's accounting policies 
There are no critical judgements in applying the entity's accounting policies. 
(b) Key accounting estimates and assumptions 
The nature of the company's activities result in it handling chemicals which are required to be registered with regulatory bodies. The process of registering these chemicals and maintaining the registration requires estimates to be made of the types of scientific tests required and the expected costs of completing these tests. The selection of these tests, work performed by laboratories and interactions with the regulatory bodies could result in changes to these estimates which could increase or decrease the eventual outcomes of these registrations. In making these estimates, the directors have drawn on their knowledge of the industry, prior experience of registering similar chemicals and on-going discussions with external consultants. 


4.


Turnover

The whole of the turnover is attributable to the company's principal activities. 
Turnover relates to the company's main activity which is carried out in the United Kingdom. The directors have not provided a further breakdown of this turnover as they deem it would be seriously prejudicial to the company.


5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Operating lease rentals
19,196
-

Depreciation of tangible assets
94,158
90,075

Auditor's remuneration
21,370
18,900

Research & development charged as an expense
109,941
163,828

Foreign exchange (gain)/loss
(35,494)
296,707

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Page 19

 
John Hogg Technical Solutions Limited
 

 
Notes to the financial statements
For the year ended 30 September 2024

6.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
4,245,879
2,870,482

Social security costs
584,746
311,326

Cost of defined contribution scheme
216,226
206,067

5,046,851
3,387,875


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Administrative
18
11



Production
12
27



Sales
26
16

56
54


7.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
706,341
506,608

Company contributions to defined contribution pension schemes
66,902
49,680

773,243
556,288


During the year retirement benefits were accruing to 4 directors (2023 - 3) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £253,686 (2023 - £186,634).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £23,776 (2023 - £18,000).

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Page 20

 
John Hogg Technical Solutions Limited
 

 
Notes to the financial statements
For the year ended 30 September 2024

8.


Interest receivable

2024
2023
£
£


Bank and other interest receivable
92,916
46,511

92,916
46,511


9.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
14,114
1,603

14,114
1,603


10.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
1,745,060
604,234

Adjustments in respect of previous periods
(6,070)
(96,460)


Total current tax

1,738,990
507,774

Deferred tax


Origination and reversal of timing differences
19,795
829

Total deferred tax
19,795
829


Tax on profit
1,758,785
508,603
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Page 21

 
John Hogg Technical Solutions Limited
 

 
Notes to the financial statements
For the year ended 30 September 2024
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 22%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
7,623,124
3,434,456


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 22%)
1,905,781
755,924

Effects of:


Expenses not deductible for tax purposes
1,632
271

Depreciation for year in excess of capital allowances
-
8,889

Capital allowances for year in excess of depreciation
(9,927)
-

Adjustments to tax charge in respect of prior periods
(6,070)
(96,460)

Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge
(152,426)
(160,850)

Deferred tax charge
19,795
829

Total tax charge for the year
1,758,785
508,603


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


11.


Dividends

2024
2023
£
£


Dividends paid
-
1,500,000

-
1,500,000

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Page 22

 
John Hogg Technical Solutions Limited
 

 
Notes to the financial statements
For the year ended 30 September 2024

12.


Intangible assets




Other intangible assets
Goodwill
Total

£
£
£



Cost


At 1 October 2023
353,545
4,398,080
4,751,625


Disposals
(353,545)
-
(353,545)



At 30 September 2024

-
4,398,080
4,398,080



Amortisation


At 1 October 2023
353,545
4,398,080
4,751,625


On disposals
(353,545)
-
(353,545)



At 30 September 2024

-
4,398,080
4,398,080



Net book value



At 30 September 2024
-
-
-



At 30 September 2023
-
-
-



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Page 23

 
John Hogg Technical Solutions Limited
 

 
Notes to the financial statements
For the year ended 30 September 2024

13.


Tangible fixed assets





Freehold property
Plant and machinery
Total

£
£
£



Cost or valuation


At 1 October 2023
1,687,286
1,885,349
3,572,635


Additions
-
92,827
92,827


Disposals
-
(73,173)
(73,173)



At 30 September 2024

1,687,286
1,905,003
3,592,289



Depreciation


At 1 October 2023
602,242
1,495,478
2,097,720


Charge for the year
43,624
50,534
94,158


Disposals
-
(73,173)
(73,173)



At 30 September 2024

645,866
1,472,839
2,118,705



Net book value



At 30 September 2024
1,041,420
432,164
1,473,584



At 30 September 2023
1,085,044
389,871
1,474,915


14.


Stocks

2024
2023
£
£

Raw materials and consumables
3,854,443
4,163,564

Finished goods and goods for resale
4,956,416
1,960,538

8,810,859
6,124,102


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Page 24

 
John Hogg Technical Solutions Limited
 

 
Notes to the financial statements
For the year ended 30 September 2024

15.


Debtors


2024
2023
£
£

Trade debtors
6,934,752
7,204,496

Amounts owed by group undertakings
2
2

Other debtors
1,917,060
1,798,124

Prepayments and accrued income
15,228
10,385

8,867,042
9,013,007



16.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
7,137,885
5,866,925

Less: bank overdrafts
(176,316)
(37,939)

6,961,569
5,828,986



17.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank overdrafts
176,316
37,939

Trade creditors
3,073,623
5,055,053

Amounts owed to group undertakings
1,178
-

Corporation tax
553,234
610,795

Other taxation and social security
78,488
87,047

Other creditors
1,436,518
1,202,139

Accruals and deferred income
557,553
957,650

5,876,910
7,950,623


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Page 25

 
John Hogg Technical Solutions Limited
 

 
Notes to the financial statements
For the year ended 30 September 2024

18.


Deferred taxation




2024
2023


£

£






At beginning of year
(13,477)
(12,648)


Charged to profit or loss
(19,795)
(829)



At end of year
(33,272)
(13,477)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(37,244)
(13,477)

Short term timing differences
3,972
-

(33,272)
(13,477)


19.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



111,264 (2023 - 111,264) Ordinary "A" shares of £1.00 each
111,264
111,264
6,000 (2023 - 6,000) Ordinary "C" shares of £1.00 each
6,000
6,000

117,264

117,264



20.


Reserves

Share premium account

The share premium account represents the premium arising on the issue of shares net of issue costs.

Capital redemption reserve

Upon a purchase of own shares by the company, out of distributable reserves, an amount equal to the nominal value of the share capital purchased was transferred to the capital redemption reserve. 

Profit and loss account

The profit and loss account represents cumulative profits and losses net of dividends and other adjustments.

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Page 26

 
John Hogg Technical Solutions Limited
 

 
Notes to the financial statements
For the year ended 30 September 2024

21.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £216,226 (2023: £206,067).  Contributions totaling £33,463 (2023: £57) were payable to the fund at the balance sheet date and are included in creditors.

The Company participates in a defined benefit pension scheme, operated by John Hogg & Co, Limited.
The scheme provides retirement benefits on the basis of members' final salary and is closed to new
entrants. The scheme is a multiple employer scheme and the Company is unable to identify its share of
the underlying assets and liabilities.


22.


Commitments under operating leases

At 30 September 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
28,376
-

Later than 1 year and not later than 5 years
108,570
-

136,946
-


23.


Related party transactions

The company has taken advantage of the exemptions under paragraph 33.1 A from the provisions of FRS 102, on the grounds that all of the voting rights of the company are controlled within the group.


24.


Post balance sheet events

Following the year end the company acquired Avocet Dye and Chemical Co. Limited, a company registered in England and Wales.


25.


Controlling party

The company's immediate and ultimate parent undertaking, and the undertaking of the smallest and largest group undertakings of which the company is a member and for which consolidated financial statements are prepared is John Hogg & Co, Limited, a company incorporated in Northern Ireland. Copies of the group financial statements are available to the public from the Companies House, Crown Way, Cardiff, CF14 3UZ.
The ultimate controlling parties are the shareholders of John Hogg & Co, Limited.


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Page 27