| REGISTERED NUMBER: 03381606 (England and Wales) |
| Group Strategic Report, Report of the Directors and |
| Consolidated Financial Statements for the Year Ended 31 October 2024 |
| for |
| Heathpatch Limited |
| REGISTERED NUMBER: 03381606 (England and Wales) |
| Group Strategic Report, Report of the Directors and |
| Consolidated Financial Statements for the Year Ended 31 October 2024 |
| for |
| Heathpatch Limited |
| Heathpatch Limited (Registered number: 03381606) |
| Contents of the Consolidated Financial Statements |
| for the Year Ended 31 October 2024 |
| Page |
| Company Information | 1 |
| Group Strategic Report | 2 |
| Report of the Directors | 6 |
| Report of the Independent Auditors | 8 |
| Consolidated Income Statement | 12 |
| Consolidated Other Comprehensive Income | 14 |
| Consolidated Statement of Financial Position | 15 |
| Company Statement of Financial Position | 17 |
| Consolidated Statement of Changes in Equity | 18 |
| Company Statement of Changes in Equity | 19 |
| Consolidated Statement of Cash Flows | 20 |
| Notes to the Consolidated Statement of Cash Flows | 21 |
| Notes to the Consolidated Financial Statements | 23 |
| Heathpatch Limited |
| Company Information |
| for the Year Ended 31 October 2024 |
| DIRECTORS: |
| SECRETARY: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Lake House |
| Market Hill |
| Royston |
| Hertfordshire |
| SG8 9JN |
| Heathpatch Limited (Registered number: 03381606) |
| Group Strategic Report |
| for the Year Ended 31 October 2024 |
| The directors present their strategic report of the company and the group for the year ended 31 October 2024. |
| REVIEW OF BUSINESS |
| The results for the year and financial position of the group are as shown in the annexed financial statements. |
| The key financial highlights are as follows: |
| 2024 | 2023 |
| £'000000 | £'000000 |
| Turnover | 59,609 | 79,195 |
| Gross profit | 12,035 | 15,781 |
| Profit before tax | 8,286 | 13,766 |
| Gross assets | 101,853 | 125,636 |
| Net assets | 82,691 | 79,540 |
| A review of the performance of each group company is given below. |
| Heathpatch Limited (HP) |
| In July 2024, HP completed the sale of its investments in Material Change Limited (MCL), Pedersen Contracting Services Limited(PCS) and Material Change Asset Co (MCAC). MCL was part of the Heathpatch group for over 20 years, during which it grew significantly, including some acquisitions along the way. The sale has significantly strengthened the Heathpatch balance sheet, continuing the growth from previous years. |
| On 1 November 2024, the Group made structural changes to the HP Board: Charles Course (previously CEO) was appointed Chairman, and George Westwood (previously Finance Director) was promoted to CEO. |
| The group's farming operations continue to be operated by Brett Vale Farming Company (BVFC), with a focus on driving quality and efficiency, and full regard for the safety of staff, the environment and neighbours. |
| HP has continued to invest in environmental improvements to its land and property. The company has been committed to establishing open canopy woodland for over 20 years and has again undertaken extensive establishment of new woodland, planting close to 10,000 trees during the year. The company continues its plan to regenerate 200 acres of ancient woodland at Raydon Great Wood, with the aim to increase the biodiversity of the site. In recent years, HP has put a substantial portion of land towards environmental schemes and has begun work on restoring and creating ponds across the farm that all contribute to a range of different habitats aimed at improving biodiversity. HP encourages environmental monitoring activities for scientific research and education, working alongside professionals, amateur enthusiasts, schools and colleges. |
| In 2023, HP begun a 125yr project to create wood, pasture and parkland over 115ha of land, and successfully completed the translocation of turf from a site known to host a variety of rare waxcap mushrooms to HP's land. A management and monitoring strategy has been implemented with the aim of contributing significantly to the local environment and supporting scientific research. |
| HP continues to take an active role in the local community including schools and parishes, and proudly supports charities both locally and further afield, including Inspire Suffolk, The Suffolk Community Foundation, The Suffolk Befriending Scheme and the Ukraine Appeal, to name but a few. |
| Global Machinery Solutions Limited (GMS) |
| GMS encountered a challenging year as customers were more cautious on placing orders for capital equipment following periods of high inflation and interest rates. |
| In the recycling division, GMS have actively moved into the long term hire market of shredding equipment. Also during the year, GMS undertook some restructuring to improve customer service and operational efficiency. While these changes incurred additional costs in the year, they are expected to provide a solid platform for future growth. |
| Heathpatch Limited (Registered number: 03381606) |
| Group Strategic Report |
| for the Year Ended 31 October 2024 |
| Camden Boss Limited (CB) and Cogent Technology Limited (CT) |
| During the year CB acquired a 100% investment in Cogent Technology Limited, a PCBA and electronic device manufacturing business in Felixstowe. This acquisition increases the range of services and products to customers and the synergies between the two businesses has enabled cost saving opportunities. The combined businesses achieved a turnover of £12.5m in the year, which will act as a foundation for growth, led by a strong management team in two impressive facilities. |
| Nedging Hall Estate Limited (NHE) |
| NHE continues to operate a range of hospitality businesses, which include Suffolk's oldest brewery, two pubs, a hotel and restaurant and an exclusive use country house, with quality and sustainability remaining a key focus. |
| Sales have increased in the year to £3.3m (£2.7m), with this growth continuing into the new year. This has largely been driven by the brewery, following the expansion of the site last year, and The Bildeston Crown which has been growing in quality and recognition under a driven management team. |
| PRINCIPAL RISKS AND UNCERTAINTIES INCLUDING FINANCIAL INSTRUMENTS |
| The group is committed to combating financial risk by a combination of careful review of its markets and consideration of its cost base. The company and its subsidiaries continued to refine their health and safety, environmental and corporate and social policies during the year and will continue to ensure that these are maintained to the highest standard. |
| The group's principal financial instruments comprise bank balances, bank overdrafts, trade creditors, trade debtors and loans to and from the group. The main purpose of these instruments is to raise funds for and finance the group's operations. |
| The group's approach to managing other risks applicable to the financial instruments concerned is shown below. |
| Liquidity risk |
| As a result of the sale of the Material Change group, the Heathpatch group was in a cash positive position at year end, and has sufficient funds to support the planned activities in the year ahead. |
| Credit risk |
| Trade debtors are managed in respect of credit and cash flow risk by polices concerning credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. |
| Market risk |
| The Heathpatch Group operates in a global marketplace, importing and exporting goods across a range of international territories, including the United States. As a result, the Group is exposed to market risks arising from changes in global economic conditions, exchange rate fluctuations, and international trade policies. |
| One of the key current considerations is the impact of recent tariff changes in the US, which have introduced potential cost volatility and operational uncertainty for companies engaged in transatlantic trade. |
| The Group actively monitors geopolitical developments and continues to evaluate measures to mitigate the impact of these risks, which include supplier diversification, maintaining flexible supply chains, and considering pricing strategies that reflect potential tariff-related costs. |
| Heathpatch Limited (Registered number: 03381606) |
| Group Strategic Report |
| for the Year Ended 31 October 2024 |
| SECTION 172(1) STATEMENT |
| Under section 172, Companies Act 2006; the Directors have a duty to promote the success of the company and act in a way that they consider, in good faith, to be most likely to promote the success of the company. The company's long-term strategy is set by the group directors of Heathpatch Ltd. The directors of the company and its subsidiaries are mandated to follow the overall strategy and objectives as set by boards of the group and its Subsidiaries. The overall objectives of the group are to continuously increase sustainable profits, to provide a safe and desirable workplace for our staff, to constantly improve our positive impacts on the environment and biodiversity and to support and contribute to the local communities that we operate in. The directors monitor the effectiveness of decisions to achieve the objectives through a system of monthly reporting and monitoring. |
| The key stakeholders of the company are the shareholders, employees, customers, suppliers, and the communities in which we operate. |
| Employees |
| We promote continuous professional and personal development of our employees, through the company's structure, training, and culture. We encourage staff to take greater responsibilities both inside and outside the company. In our decision-making we are guided by ethical and ecological criteria as well as economic factors. |
| Suppliers |
| We continue to work closely with our supply chain partners to minimise any indirect disruption. In the event that any foreseeable operational disruption does cause an impact on cashflow, the Directors have considered the facilities available to the group and its subsidiaries as part of the group's treasury arrangements. The Directors are satisfied that these are sufficient and appropriate to ensure the companies can continue to operate effectively. |
| The company's policy concerning payment of suppliers includes ensuring that suppliers are made aware of the terms of payment by inclusion of the relevant terms in supply contracts. Payments are then made in accordance with the company's contractual and legal obligations. |
| Customers |
| Throughout the diversified group, we offer our customers attractive products and services, we have established a loyal customer base within each of our subsidiaries. We understand the need to continue to foster the relationships with our customers - both old and new. We pride ourselves on giving high levels of customer services at all levels within our group. |
| Shareholders |
| The Directors manage the group on behalf of the shareholders. Historically, dividend payments have not been made to the shareholders, as funds are reinvested into the group for future growth. This continues to be the long term view, but due to the sale of the MCL group a one-off dividend was declared in the year ended 31 October 2024 of £5,000,000 (2023: £Nil). |
| Local community and environment |
| The group is focused on reducing any negative impacts on the natural environment and for improving biodiversity wherever possible. The group strives to contribute positively to all the local communities and environments that we operate in, which has been demonstrated throughout the year. |
| Heathpatch Limited (Registered number: 03381606) |
| Group Strategic Report |
| for the Year Ended 31 October 2024 |
| OUTLOOK AHEAD |
| The Heathpatch board remains focused on increasing the trading activity and profitability of the group, aiming to achieve this through both organic growth and strategic acquisitions. |
| During the year the following new directors were appointed within the group |
| Daniel Goddard, Nigel Slator, Robert Stainer and Nicola Groom joined the group as directors of Cogent. Nigel, Robert and Nicola resigned as directors during the year. |
| The Group and its subsidiaries have ambitious plans to grow both their operations and sustainable profitability in the year ahead. |
| GMS will continue to build on its strong brand presence, expanding its product range, geographic reach, and customer base. |
| CB and CT plan to drive growth through in-house design and third-party contract manufacturing, with a continued emphasis on operational excellence, lean manufacturing, and enhanced governance. |
| NHE aims to further establish its presence in the hospitality sector and expand its brewery operations, leveraging the new storage facility. |
| The Group will also continue its environmental initiatives, including the creation of additional woodlands and habitats, and further efforts to reduce CO? emissions and environmental impact. |
| As with most UK businesses, external economic factors continue to generate change as the group adapts to the new trading landscape. |
| ON BEHALF OF THE BOARD: |
| Heathpatch Limited (Registered number: 03381606) |
| Report of the Directors |
| for the Year Ended 31 October 2024 |
| The directors present their report with the financial statements of the company and the group for the year ended 31 October 2024. |
| PRINCIPAL ACTIVITIES |
| The principal activities of the group in the year under review were those of farming and estate management and provision of management services to other group companies. The subsidiaries continued their activities of commercial recycling, importing and exporting, management of renewable energy plants and design and manufacture of plastic fabrications. During the year the group exited the renewable energy market, following the sale of its subsidiary Material Change Ltd. |
| DIVIDENDS |
| An interim dividend of 23p per share was paid on 26 June 2024. The directors recommend that no final dividend be paid. |
| The total distribution of dividends for the year ended 31 October 2024 will be £5,000,000 (2023: £Nil) |
| RESEARCH AND DEVELOPMENT |
| The group remains committed to research and development, to help achieve its strategic objectives. The group has undertaken significant research and development during the year, with the costs being expensed to the P&L account. R&D is undertaken to try to find ways to develop new products, systems or operating procedures that will give the company economic or environmental benefits. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 November 2023 to the date of this report. |
| ENGAGEMENT WITH EMPLOYEES |
| Staff working for the group are key to the success of the businesses. The group is committed to being a responsible employer and operates initiatives encouraging employee wellbeing and health, such as making available a mental health helpline, and staying in regular contact with staff during the cost of living crisis. |
| The group has a policy of encouraging employee involvement in matters of concern to them and providing employees with relevant information through newsletters, letters, and company-wide emails. Managers share employee's views with Directors at management meetings. |
| The group has an equal opportunities policy and is committed to providing a learning, working and social environment in which the rights and dignity of all its members are respected and which is free from discrimination. |
| DISABLED EMPLOYEES |
| Heathpatch have the following policies which cover employment, training, and career development of disabled persons: Equal Opportunity Policy, Training, Dignity at Work Policy, Equal Opportunity for Recruitment and Training. |
| STREAMLINED ENERGY AND CARBON REPORTING |
| Heathpatch is required to make disclosures under the Companies (Director's Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018. Greenhouse gases (GHG) are recorded for each of the group's businesses, listed below, using a financial reporting boundary, in accordance with the GHG protocols and using 2023 UK government conversion factors. The companies included in this report are: Heathpatch Limited, Camden Boss Limited (including only the wholly owned subsidiary Cogent Technology Limited), Nedging Hall Estate Limited, Global Machinery Solutions Limited, and Material Change Limited (including only the wholly owned subsidiary Pedersen Contracting Services Limited) up to the disposal of this company. |
| Heathpatch Limited (Registered number: 03381606) |
| Report of the Directors |
| for the Year Ended 31 October 2024 |
| The GHG intensity ratio uses the group's annual turnover due to the breadth in business operations across the Group. During the year the Group's operations emitted 4,700t (2023: 6,242t) of CO2e giving an intensity ratio for the financial year to 31 October 2024 of 78g of CO2e per £ of turnover (2023: 77g). |
| Across the group many actions are being taking to improve energy efficiency and reduce carbon emissions. Cars and vans are being replaced with electric or hybrid alternatives. PV has been installed across multiple sites and further sites are being reviewed for PV and energy storage. Insulation is being increased in properties and heating systems are being upgraded to energy efficient alternatives. Camden Boss are working to deliver energy monitoring devices which can be applied to a large range of uses. Heathpatch have planted approximately 9,700 trees (2023: 17,900 trees) in the year and farming practices are being altered to help enhance soil health and capture more carbon within the soil. |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
| Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
| - | 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
| AUDITORS |
| The auditors, Hardcastle Burton LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| Report of the Independent Auditors to the Members of |
| Heathpatch Limited |
| Opinion |
| We have audited the financial statements of Heathpatch Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
| In our opinion the financial statements: |
| - | give a true and fair view of the state of the group's and of the parent company affairs as at 31 October 2024 and of the group's profit for the year then ended; |
| - | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
| - | have been prepared in accordance with the requirements of the Companies Act 2006. |
| Basis for opinion |
| We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
| Conclusions relating to going concern |
| In auditing the financial statements, we have concluded that the 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
| Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
| Other information |
| The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
| Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
| In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of the audit: |
| - | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| Report of the Independent Auditors to the Members of |
| Heathpatch Limited |
| Matters on which we are required to report by exception |
| In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
| We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
| - | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the parent company financial statements are not in agreement with the accounting records and returns; or |
| - | certain disclosures of directors' remuneration specified by law are not made; or |
| - | we have not received all the information and explanations we require for our audit. |
| Responsibilities of directors |
| As explained more fully in the Statement of Directors' Responsibilities set out on page seven, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
| In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
| Report of the Independent Auditors to the Members of |
| Heathpatch Limited |
| Auditors' responsibilities for the audit of the financial statements |
| Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
| The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
| The objectives of our audit, in respect of fraud are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identification during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. |
| Our approach was as follows:- |
| We obtained an understanding of the legal and regulatory frameworks that are applicable to the group and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that related to the reporting framework (FRS 102 and Companies Act 2006) and the relevant tax compliance regulations that the group operates. |
| In addition, we concluded that there are certain significant laws and regulations which may have an effect on the determination of the amounts and disclosures in the financial statements being those relating to licencing, the environment and occupational health and safety. |
| We obtained an understanding to how the group is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through our review of supporting licensing documentation. |
| We assessed the susceptivity of the group's financial statements to material misstatement, including how fraud might occur by meeting with management from various parts of the group to understand the systems and controls of the group. We also considered remuneration packages and the influence this has on the financial results of the company to provide reasonable assurance that the financial statements were free from fraud and error. |
| Based on our understanding we designed our audit procedures to identify non-compliance with such laws and regulations identified in the paragraphs above. Our procedures involved; journal entry testing; focusing on manual journals and journals indicating large or unusual transactions based on our understanding of the business; enquiries of management and focused testing in relation to revenue and management override. |
| A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
| Report of the Independent Auditors to the Members of |
| Heathpatch Limited |
| Use of our report |
| This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
| for and on behalf of |
| Lake House |
| Market Hill |
| Royston |
| Hertfordshire |
| SG8 9JN |
| Heathpatch Limited (Registered number: 03381606) |
| Consolidated |
| Income Statement |
| for the Year Ended 31 October 2024 |
| 31.10.24 | 31.10.24 | 31.10.24 |
| Continuing | Discontinued | Total |
| Notes | £ | £ | £ |
| TURNOVER | 3 | 35,899,613 | 23,709,810 | 59,609,423 |
| Cost of sales | (29,338,136 | ) | (18,236,719 | ) | (47,574,855 | ) |
| GROSS PROFIT | 6,561,477 | 5,473,091 | 12,034,568 |
| Administrative expenses | (15,487,764 | ) | (3,361,907 | ) | (18,849,671 | ) |
| (8,926,287 | ) | 2,111,184 | (6,815,103 | ) |
| Other operating income | 154,395 | - | 154,395 |
| Gain/loss on revaluation of assets | (203,216 | ) | - | (203,216 | ) |
| GROUP OPERATING (LOSS)/PROFIT | 5 | (8,975,108 | ) | 2,111,184 | (6,863,924 | ) |
| Share of operating loss in |
| Joint venture | (227,112 | ) | - | (227,112 | ) |
| Profit on sale of subsidiaries | 6 | 11,868,501 | - | 11,868,501 |
| Profit on sale of investments | 6 | 3,892,372 | - | 3,892,372 |
| 6,558,653 | 2,111,184 | 8,669,837 |
| Interest receivable and similar income | 410,868 | - | 410,868 |
| Interest payable and similar expenses | 7 | (689,339 | ) | (105,778 | ) | (795,117 | ) |
| PROFIT BEFORE TAXATION | 6,280,182 | 2,005,406 | 8,285,588 |
| Tax on profit | 8 | 984,092 | - | 984,092 |
| PROFIT FOR THE FINANCIAL YEAR |
| Profit attributable to: |
| Owners of the parent | 9,269,680 |
| Heathpatch Limited (Registered number: 03381606) |
| Consolidated |
| Income Statement |
| for the Year Ended 31 October 2024 |
| 31.10.23 | 31.10.23 | 31.10.23 |
| Continuing | Discontinued | Total |
| Notes | £ | £ | £ |
| TURNOVER | 3 | 34,593,250 | 44,601,995 | 79,195,245 |
| Cost of sales | (27,763,503 | ) | (35,650,281 | ) | (63,413,784 | ) |
| GROSS PROFIT | 6,829,747 | 8,951,714 | 15,781,461 |
| Administrative expenses | (8,748,869 | ) | (4,673,384 | ) | (13,422,253 | ) |
| (1,919,122 | ) | 4,278,330 | 2,359,208 |
| Other operating income | 154,793 | - | 154,793 |
| Gain/loss on revaluation of assets | 175,000 | - | 175,000 |
| GROUP OPERATING (LOSS)/PROFIT | 5 | (1,589,329 | ) | 4,278,330 | 2,689,001 |
| Share of operating loss in |
| Joint venture | (204,095 | ) | - | (204,095 | ) |
| Exceptional items | 6 | 433,089 | 6,731 | 439,820 |
| Profit on sale of subsidiaries | 6 | 10,494,014 | - | 10,494,014 |
| Profit on sale of investments | 6 | 751,130 | - | 751,130 |
| 9,884,809 | 4,285,061 | 14,169,870 |
| Income from fixed asset investments | 223,398 | - | 223,398 |
| Interest receivable and similar income | 344,179 | - | 344,179 |
| Interest payable and similar expenses | 7 | (837,493 | ) | (133,592 | ) | (971,085 | ) |
| PROFIT BEFORE TAXATION | 9,614,893 | 4,151,469 | 13,766,362 |
| Tax on profit | 8 | (280,104 | ) | (729,784 | ) | (1,009,888 | ) |
| PROFIT FOR THE FINANCIAL YEAR |
| Profit attributable to: |
| Owners of the parent | 12,756,474 |
| Heathpatch Limited (Registered number: 03381606) |
| Consolidated |
| Other Comprehensive Income |
| for the Year Ended 31 October 2024 |
| 31.10.24 | 31.10.23 |
| Notes | £ | £ |
| PROFIT FOR THE YEAR | 9,269,680 | 12,756,474 |
| OTHER COMPREHENSIVE (LOSS)/INCOME |
| Property revaluation | (1,127,230 | ) | 862,927 |
| Exchange movement | 9,029 | (19,701 | ) |
| Income tax relating to components of other comprehensive (loss)/income |
- |
- |
| OTHER COMPREHENSIVE (LOSS)/INCOME FOR THE YEAR, NET OF INCOME TAX |
(1,118,201 |
) |
843,226 |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
8,151,479 |
| Prior year adjustment | 102,329 |
| TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT |
13,702,029 |
| Total comprehensive income attributable to: |
| Owners of the parent | 8,151,479 | 14,716,478 |
| Non-controlling interests | - | (1,014,449 | ) |
| 8,151,479 | 13,702,029 |
| Heathpatch Limited (Registered number: 03381606) |
| Consolidated Statement of Financial Position |
| 31 October 2024 |
| 31.10.24 | 31.10.23 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 12 | (958,723 | ) | 1,916,709 |
| Tangible assets | 13 | 54,519,659 | 58,020,846 |
| Investments | 14 |
| Interest in joint venture |
| Share of gross assets | 466,782 | 505,433 |
| Share of gross liabilities | (212,418 | ) | (299,536 | ) |
| 254,364 | 205,897 |
| Other investments | - | 4,132,156 |
| Investment property | 15 | 11,376,662 | 12,409,662 |
| 65,191,962 | 76,685,270 |
| CURRENT ASSETS |
| Stocks | 16 | 15,965,522 | 14,838,122 |
| Debtors | 17 | 6,818,865 | 33,660,497 |
| Cash at bank and in hand | 13,876,234 | 452,529 |
| 36,660,621 | 48,951,148 |
| CREDITORS |
| Amounts falling due within one year | 18 | 14,526,401 | 31,908,613 |
| NET CURRENT ASSETS | 22,134,220 | 17,042,535 |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
87,326,182 |
93,727,805 |
| CREDITORS |
| Amounts falling due after more than one year |
19 |
(571,702 |
) |
(7,415,436 |
) |
| PROVISIONS FOR LIABILITIES | 23 | (4,063,614 | ) | (6,772,722 | ) |
| NET ASSETS | 82,690,866 | 79,539,647 |
| Heathpatch Limited (Registered number: 03381606) |
| Consolidated Statement of Financial Position - continued |
| 31 October 2024 |
| 31.10.24 | 31.10.23 |
| Notes | £ | £ | £ | £ |
| CAPITAL AND RESERVES |
| Called up share capital | 24 | 22,173,625 | 22,173,885 |
| Share premium | 25 | 1,232,855 | 1,232,855 |
| Investment property revaluation reserve | 25 | 2,551,588 | 2,728,022 |
| Capital redemption reserve | 25 | 770,000 | 770,000 |
| Revaluation reserve | 25 | 19,737,525 | 20,864,755 |
| Retained earnings | 25 | 36,225,273 | 31,770,130 |
| SHAREHOLDERS' FUNDS | 82,690,866 | 79,539,647 |
| The financial statements were approved by the Board of Directors and authorised for issue on 11 July 2025 and were signed on its behalf by: |
| G Westwood - Director |
| Heathpatch Limited (Registered number: 03381606) |
| Company Statement of Financial Position |
| 31 October 2024 |
| 31.10.24 | 31.10.23 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 12 |
| Tangible assets | 13 |
| Investments | 14 |
| Investment property | 15 |
| CURRENT ASSETS |
| Stocks | 16 |
| Debtors | 17 |
| Cash at bank |
| CREDITORS |
| Amounts falling due within one year | 18 |
| NET CURRENT ASSETS/(LIABILITIES) | ( |
) |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
19 |
( |
) |
( |
) |
| PROVISIONS FOR LIABILITIES | 23 | ( |
) | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 24 |
| Share premium | 25 |
| Investment property revaluation reserve | 25 |
| Capital redemption reserve | 25 |
| Revaluation reserve | 25 |
| Retained earnings | 25 |
| SHAREHOLDERS' FUNDS |
| Company's profit for the financial year | 16,229,590 | 11,713,389 |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| Heathpatch Limited (Registered number: 03381606) |
| Consolidated Statement of Changes in Equity |
| for the Year Ended 31 October 2024 |
| Investment |
| Called up | property |
| share | Retained | Share | revaluation |
| capital | earnings | premium | reserve |
| £ | £ | £ | £ |
| Balance at 1 November 2022 | 25,472,885 | 17,122,208 | 1,232,855 | 2,606,772 |
| Prior period adjustment | - | 102,329 | - | - |
| As restated | 25,472,885 | 17,224,537 | 1,232,855 | 2,606,772 |
| Changes in equity |
| Reduction in share capital | (3,299,000 | ) | - | - | - |
| Total comprehensive income | - | 14,545,593 | - | 121,250 |
| Balance at 31 October 2023 | 22,173,885 | 31,770,130 | 1,232,855 | 2,728,022 |
| Changes in equity |
| Redeemed shares | (260 | ) | - | - | - |
| Dividends | - | (5,000,000 | ) | - | - |
| Total comprehensive income | - | 9,455,143 | - | (176,434 | ) |
| Balance at 31 October 2024 | 22,173,625 | 36,225,273 | 1,232,855 | 2,551,588 |
| Capital |
| redemption | Revaluation | Non-controlling | Total |
| reserve | reserve | Total | interests | equity |
| £ | £ | £ | £ | £ |
| Balance at 1 November 2022 | 770,000 | 21,931,898 | 69,136,618 | 1,014,449 | 70,151,067 |
| Prior period adjustment | - | - | 102,329 | - | 102,329 |
| As restated | 770,000 | 21,931,898 | 69,238,947 | 1,014,449 | 70,253,396 |
| Changes in equity |
| Reduction in share capital | - | - | (3,299,000 | ) | - | (3,299,000 | ) |
| Total comprehensive income | - | (1,067,143 | ) | 13,599,700 | (1,014,449 | ) | 12,585,251 |
| Balance at 31 October 2023 | 770,000 | 20,864,755 | 79,539,647 | - | 79,539,647 |
| Changes in equity |
| Redeemed shares | - | - | (260 | ) | - | (260 | ) |
| Dividends | - | - | (5,000,000 | ) | - | (5,000,000 | ) |
| Total comprehensive income | - | (1,127,230 | ) | 8,151,479 | - | 8,151,479 |
| Balance at 31 October 2024 | 770,000 | 19,737,525 | 82,690,866 | - | 82,690,866 |
| Heathpatch Limited (Registered number: 03381606) |
| Company Statement of Changes in Equity |
| for the Year Ended 31 October 2024 |
| Called up |
| share | Retained | Share |
| capital | earnings | premium |
| £ | £ | £ |
| Balance at 1 November 2022 |
| Changes in equity |
| Reduction in share capital | (3,299,000 | ) | - | - |
| Total comprehensive income | - | - |
| Balance at 31 October 2023 |
| Changes in equity |
| Issue of share capital | ( |
) | - |
| Dividends | - | ( |
) | - |
| Total comprehensive income | - | - |
| Balance at 31 October 2024 |
| Investment |
| property | Capital |
| revaluation | redemption | Revaluation | Total |
| reserve | reserve | reserve | equity |
| £ | £ | £ | £ |
| Balance at 1 November 2022 |
| Changes in equity |
| Reduction in share capital | - | - | - | (3,299,000 | ) |
| Total comprehensive income | ( |
) |
| Balance at 31 October 2023 |
| Changes in equity |
| Issue of share capital | - | - | - | ( |
) |
| Dividends | - | - | - | ( |
) |
| Total comprehensive income | ( |
) | ( |
) |
| Balance at 31 October 2024 |
| Heathpatch Limited (Registered number: 03381606) |
| Consolidated Statement of Cash Flows |
| for the Year Ended 31 October 2024 |
| 31.10.24 | 31.10.23 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | 787,943 | (11,455,479 | ) |
| Interest paid | (511,876 | ) | (681,413 | ) |
| Interest element of hire purchase payments paid |
(208,513 |
) |
(165,122 |
) |
| Finance costs paid | (74,728 | ) | (124,550 | ) |
| Foreign exchange loss | 9,029 | (19,713 | ) |
| Tax paid | 129,223 | 1,436,099 |
| Net cash from operating activities | 131,078 | (11,010,178 | ) |
| Cash flows from investing activities |
| Purchase of intangible fixed assets | (16,500 | ) | - |
| Purchase of tangible fixed assets | (7,558,719 | ) | (5,918,768 | ) |
| Purchase of investment property | (60,000 | ) | (327,424 | ) |
| Sale of tangible fixed assets | 621,169 | 3,972,512 |
| Sale of fixed asset investments | 4,548,676 | 1,617,818 |
| Sale of investment property | 1,200,000 | - |
| Purchase of subsidiaries | (313,614 | ) | - |
| Purchase of subsidiaries (cash acquired) | 351,569 | - |
| Sale of subsidiaries | 25,000,000 | 16,239,996 |
| Sale of subsidiaries (cash disposed) | (1,332,115 | ) | (1,618,462 | ) |
| Interest received | 177,571 | 344,179 |
| Dividends received | - | 223,398 |
| Net cash from investing activities | 22,618,037 | 14,533,249 |
| Cash flows from financing activities |
| New loans in year | - | 4,500,000 |
| Loan repayments in year | (7,468,685 | ) | (8,815,674 | ) |
| New hire purchase agreements in year | 3,051,367 | 2,576,369 |
| Hire purchase repayments in year | (2,360,004 | ) | (1,489,515 | ) |
| Amount introduced by directors | 4,077,591 | 423,710 |
| Amount withdrawn by directors | (970,064 | ) | - |
| Shares redeemed | (260 | ) | - |
| Loan repayments received | 3,731,570 | 593,369 |
| Equity dividends paid | (5,000,000 | ) | - |
| Net cash from financing activities | (4,938,485 | ) | (2,211,741 | ) |
| Increase in cash and cash equivalents | 17,810,630 | 1,311,330 |
| Cash and cash equivalents at beginning of year |
2 |
(3,934,396 |
) |
(5,245,726 |
) |
| Cash and cash equivalents at end of year | 2 | 13,876,234 | (3,934,396 | ) |
| Heathpatch Limited (Registered number: 03381606) |
| Notes to the Consolidated Statement of Cash Flows |
| for the Year Ended 31 October 2024 |
| 1. | RECONCILIATION OF OPERATING (LOSS)/PROFIT TO CASH GENERATED FROM OPERATIONS |
| 31.10.24 | 31.10.23 |
| £ | £ |
| Operating (loss)/profit | (6,863,924 | ) | 2,689,001 |
| Depreciation charges | 1,400,006 | 3,247,291 |
| Loss/(profit) on disposal of fixed assets | 285,865 | (904,437 | ) |
| Loss/(gain) on revaluation of fixed assets | 203,216 | (175,000 | ) |
| Share of results from joint venture | (275,579 | ) | (264,411 | ) |
| Exceptional items | - | 439,820 |
| (5,250,416 | ) | 5,032,264 |
| Decrease/(increase) in stocks | 2,023,299 | (1,014,256 | ) |
| Decrease/(increase) in trade and other debtors | 14,763,266 | (17,651,108 | ) |
| (Decrease)/increase in trade and other creditors | (10,748,206 | ) | 2,177,621 |
| Cash generated from operations | 787,943 | (11,455,479 | ) |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
| Year ended 31 October 2024 |
| 31.10.24 | 1.11.23 |
| £ | £ |
| Cash and cash equivalents | 13,876,234 | 452,529 |
| Bank overdrafts | - | (4,386,925 | ) |
| 13,876,234 | (3,934,396 | ) |
| Year ended 31 October 2023 |
| 31.10.23 | 1.11.22 |
| £ | £ |
| Cash and cash equivalents | 452,529 | 1,212,393 |
| Bank overdrafts | (4,386,925 | ) | (6,458,119 | ) |
| (3,934,396 | ) | (5,245,726 | ) |
| Heathpatch Limited (Registered number: 03381606) |
| Notes to the Consolidated Statement of Cash Flows |
| for the Year Ended 31 October 2024 |
| 3. | ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS |
| At 1.11.23 | Cash flow | At 31.10.24 |
| £ | £ | £ |
| Net cash |
| Cash at bank and in hand | 452,529 | 13,423,705 | 13,876,234 |
| Bank overdrafts | (4,386,925 | ) | 4,386,925 | - |
| (3,934,396 | ) | 17,810,630 | 13,876,234 |
| Debt |
| Finance leases | (3,617,888 | ) | 2,742,350 | (875,538 | ) |
| Debts falling due within 1 year | (2,201,542 | ) | 2,111,542 | (90,000 | ) |
| Debts falling due after 1 year | (5,357,143 | ) | 5,357,143 | - |
| (11,176,573 | ) | 10,211,035 | (965,538 | ) |
| Total | (15,110,969 | ) | 28,021,665 | 12,910,696 |
| Heathpatch Limited (Registered number: 03381606) |
| Notes to the Consolidated Financial Statements |
| for the Year Ended 31 October 2024 |
| 1. | STATUTORY INFORMATION |
| Heathpatch Limited is a |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| The financial statements are prepared in sterling, which is the functional currency of the group. |
| The directors have prepared forecast profit and cash flows to October 2026 which show the group has sufficient financial headroom to continue to meet payment of liabilities as they fall due. |
| The company has considerable property assets and whilst it has chosen to keep some of its borrowings short term, it is nonetheless soundly based and the Directors have reasonable expectation that the company and group has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the accounts. |
| Basis of consolidation |
| Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes. |
| Investments in joint ventures are accounted for using the gross equity method. The consolidated profit and loss account includes the group's share of the joint venture's turnover and profits. |
| All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment or the asset transferred. |
| Where necessary, adjustments are made to the financial statements to bring the accounting policies used into line with those used by other members of the group. |
| When control over a subsidiary is lost, its assets, liabilities are derecognised from the consolidated balance sheet. The fair value of the consideration received is recognised, and any retained interest in the former subsidiary is remeasured to its fair value. This retained interest is then classified appropriately as a financial asset, associate, or joint venture depending on the circumstances. A gain or loss on disposal is recognised in the profit or loss statement. This is calculated as the aggregate of the fair value of the consideration received and the fair value of any retained interest, less the carrying amount of the subsidiary’s net assets and any associated goodwill. |
| The financial results of the disposed subsidiary are included in the consolidated financial statements up to the date control is lost. Comparative information is not restated unless the transaction qualifies as a discontinued operation under the applicable accounting standards. |
| Heathpatch Limited (Registered number: 03381606) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 October 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Significant judgements and estimates |
| The preparation of the financial statements requires management to make judgements, estimates and assumptions which impact on the carrying amounts of assets and liabilities. 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. 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 period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
| The group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next financial year are addressed below. |
| Valuation of investment properties and freehold land and buildings |
| The valuation of the investment properties is on the basis of a valuation carried out by a third party specialist and directors of the group. The valuation was made on an open market basis by reference to market evidence of transaction prices and rental yields of similar properties. |
| The group has a policy to carry its freehold land and buildings at open market valuations which are measured in the same way. |
| Depreciation and residual values |
| Depreciation rates and methods are set using industry standards, assessment of the useful economic life and residual values of each asset class. The depreciation policies are reviewed periodically in line with estimated selling prices to ensure depreciation accurately reflects consumption of the asset. |
| Stock provisions |
| A provision for slow-moving and obsolete stock is recognised based on the number of years since the item was last purchased, or assessed individual for impairment at each reporting date. Impairment losses are recognised if the carrying amounts exceed the recoverable amounts, ie. the higher of selling prices less costs to sell and value in use. |
| Warranty provisions |
| The financial statements include warranty provisions, which are estimated based on the number of returns received in the 12 months following the date of these accounts. The total returns have been estimated at the net realisable value of each part. A provision is included when there is a legal and a constructive obligation to provide at least a 12 month warranty period to customers. |
| Held for hire assets |
| A subsidiary holds machinery for hire. The machines that are available for hire have been recognised in both stock and tangible fixed assets. The machinery held in stock is on the basis it is also available for sale, with the remainder being recognised in tangible fixed assets. The machines are assessed for impairment at each reporting date and impairment losses are recognised if their carrying amounts exceed their recoverable amounts. The recoverable amounts of the machines are determined as the higher of their selling prices less costs to sell and values in use i.e. the future net hire income. Consequently, the carrying values of machines are the same when recognised in stock as they would be in tangible fixed assets. |
| Heathpatch Limited (Registered number: 03381606) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 October 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Turnover |
| Turnover represents net invoiced sales of goods or services, excluding value added tax. The group's policy is to recognise a sale when substantively all the risks and rewards in connection with the goods or services have been passed to the buyer, or for services at the point the service is carried out. Management and mainteance income is recognised on a straight line basis over the period of provision. |
| 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. |
| Sale of energy: |
| Revenue from the sale of energy 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 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. |
| Turnover represents amounts receivable for energy generated in the period net of any applicable value added tax. Any uninvoiced income is accrued in the period in which it has been generated. |
| Turnover in respect of contracts spanning the year end has been accounted for on a 'percentage completion basis.' The stage completion is measured by reference to volume attributed to stage of completion at the balance sheet date as a percentage of the total contract volume. |
| Income from the delinked payment scheme entitlements does not follow the requirements to meet cross-compliance conditions. As a result, the delinked payment income is recognised in the accounting period in which it is received. |
| Goodwill and negative goodwill |
| When the fair value of the consideration for an acquired undertaking exceeds the fair value of its separable net assets the difference is treated as purchased goodwill and is capitalised and amortised through the profit and loss account over its estimated economic life. The estimated economic life of goodwill ranges from two to ten years and is assessed on an individual basis. |
| Where the fair value of the separable net assets exceeds the fair value of the consideration for an acquired undertaking the difference is treated as negative goodwill and is capitalised and amortised through the profit and loss account in the period over which the non-monetary assets acquired are recovered. In the case of fixed assets this is the period over which they are depreciated, and in the case of current assets, the period over which they are sold or otherwise realised. |
| Goodwill is reviewed for impairment at the end of the first full financial year following the acquisition and in other periods if events or changes in circumstances indicate that carrying value may not be recoverable. |
| Heathpatch Limited (Registered number: 03381606) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 October 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Intangible assets |
| Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
| Single payment entitlements are being amortised evenly over their estimated useful life of nil years. |
| Interest rate caps are being amortised evenly over their estimated useful life of nil years. |
| Brands and intellectual are being amortised evenly over their estimated useful life of 10 years. |
| Website development costs are being amortised evenly over their estimated useful life of 5 years. |
| Tangible fixed assets |
| Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives: |
| Freehold land and buildings | not depreciated |
| Leasehold interests | 10% - 15% or over the term of the lease on a straight line basis. |
| Fixtures and fittings | 15% - 25% on a straight line or reducing balance basis. |
| Plant and machinery | 5% - 33% on a straight line or reducing balance basis. |
| Motor vehicles | 15% - 33% on a straight line or reducing balance basis. |
| Computer equipment | 33% on a straight line basis. |
| Assets under construction | not depreciated until construction is complete. |
| Freehold land and buildings used for the purpose of the trade of the company are held on the balance sheet under the revaluation model and revalued annually. Any aggregate surplus or deficit arising from changes in |
| market value is transferred to a revaluation reserve. |
| No charge has been made for depreciation on freehold buildings. This is due to the residual value of the buildings being considered to be not less than current net book value having regard to the continued refurbishment works that has occurred and that are continuing to take place in forthcoming years. |
| The carrying value of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. |
| Investment property |
| Investment properties, which are properties held to earn rentals and/or for capital appreciation, are initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently they are measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss. |
| Stocks |
| Stock are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow-moving stocks. Cost is calculated using the first-in, first-out method and includes all purchase, transport and handling costs in bringing stocks to their present location and condition. |
| Crops in store are valued at the lower of production cost and net realisable value. |
| Arable cultivations are valued at the estimated cost per hectare for the various acts of husbandry carried out. |
| The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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. |
| Heathpatch Limited (Registered number: 03381606) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 October 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Financial instruments |
| The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of its financial instruments except for its derivative financial instruments. |
| Financial instruments are recognised in the Company's statement of financial position when the Company becomes party to the contractual provisions of the instrument. |
| Basic financial assets |
| Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised. |
| Basic financial liabilities |
| Basic financial liabilities, including creditors and loans that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. |
| Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
| Derivative financial instruments |
| Derivative financial instruments are initially accounted for and measured at fair value on the date a derivative contact is entered into and subsequently measured at fair value. The gain or loss on re-measurement is taken to the profit and loss account. No adjustments are made in respect of this as these are immaterial. |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
| Current or deferred taxation assets and liabilities are not discounted. |
| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
| Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
| Research and development |
| Expenditure on research and development is written off in the year in which it is incurred. |
| Heathpatch Limited (Registered number: 03381606) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 October 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Foreign currencies |
| Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
| Foreign currency assets and liabilities of group companies are translated into sterling at the rates of exchange ruling at the balance sheet date. The trading results of overseas subsidiaries and associated undertakings are translated at the average exchange rate ruling during the year, with the adjustment between average rates and the rates ruling at the balance sheet date being taken to reserves. The value of group's goodwill and negative goodwill in respect of overseas subsidiaries are translated at the closing rate to match the underlying assets which are also translated at this rate. The difference arising on the restatement of the opening assets, liabilities, goodwill and negative goodwill of overseas subsidiary undertakings, are dealt with as adjustments to reserves. All other exchange differences are dealt with in the profit and loss account. Where exchange differences relate to net borrowing, the charge or credit is included in interest payable. Other exchange differences arising through trading in overseas markets are included in operating profit. |
| Hire purchase and leasing commitments |
| Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
| The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
| Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
| Pension costs and other post-retirement benefits |
| The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
| Investments |
| Investments in subsidiary and associated undertakings in the parent company's accounts are stated at cost less provision for impairment. |
| Investments in joint ventures and unlisted investments in the parent company's accounts are stated at cost less provision for impairment. |
| Heathpatch Limited (Registered number: 03381606) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 October 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Government grants |
| In the year ended 31 October 2024, grants were obtained under the countryside stewardship scheme relating to capital expenditure carried out on a track. The cashflows from this grants were accrued in accordance with section 24 of FRS 102 and are to be recognised under deferred income. The grant will be released in line with the depreciation policy of the related expenditure. |
| During the year, a grant was also received under the sustainable farming incentive in respect of costs for the 2025 harvest. This cashflow has been recognised under deferred income and will be released in line with the matching principle during the next financial year when the costs are incurred. |
| Income receivable under the EU Single Payment scheme is not recognised as income until the point at which the following criteria are both met: |
| - A valid application form has been submitted and accepted by the Rural Payments Agency and |
| - The relevant land has been eligible for the entire calendar year to 31 December. |
| The subsidy income received from the government changed on 1 January 2024, to the delinked payment scheme. The new subsidy income is delinked from the requirement to meet cross-compliance conditions. The delinked payment income is recognised on receipt. |
| Government grants on capital expenditure are credited to a deferred account and are released to revenue over the expected useful life of the relevant asset by equal annual instalments. |
| 3. | TURNOVER |
| The turnover and profit before taxation are attributable to the principal activities of the group. |
| An analysis of turnover by class of business is given below: |
| 31.10.24 | 31.10.23 |
| £ | £ |
| Farming & estate | 4,008,349 | 3,966,803 |
| Sale of wholesale goods/parts | 16,560,925 | 19,493,041 |
| Electrical components | 12,053,121 | 9,576,760 |
| Hospitality and brewery | 3,277,219 | 2,711,971 |
| Renewable energy | 23,709,809 | 43,446,670 |
| 59,609,423 | 79,195,245 |
| An analysis of turnover by geographical market is given below: |
| 31.10.24 | 31.10.23 |
| £ | £ |
| UK | 54,208,783 | 71,622,202 |
| Europe & EU | 4,241,513 | 6,074,640 |
| Rest of the world | 1,159,127 | 1,498,403 |
| 59,609,423 | 79,195,245 |
| Heathpatch Limited (Registered number: 03381606) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 October 2024 |
| 4. | EMPLOYEES AND DIRECTORS |
| 31.10.24 | 31.10.23 |
| £ | £ |
| Wages and salaries | 14,024,887 | 14,260,156 |
| Social security costs | 1,018,942 | 1,427,650 |
| Other pension costs | 397,125 | 671,242 |
| 15,440,954 | 16,359,048 |
| The average number of employees during the year was as follows: |
| 31.10.24 | 31.10.23 |
| Farm & estate staff | 19 | 19 |
| Sales staff | 20 | 18 |
| Senior management and office staff | 108 | 87 |
| Production/site staff | 336 | 308 |
| 31.10.24 | 31.10.23 |
| £ | £ |
| Directors' remuneration | 487,617 | 303,516 |
| Directors' pension contributions to money purchase schemes | 64,029 | 146,571 |
| The number of directors to whom retirement benefits were accruing was as follows: |
| Defined benefit schemes | 2 | 1 |
| Information regarding the highest paid director is as follows: |
| 31.10.24 | 31.10.23 |
| £ | £ |
| Emoluments etc | 391,284 | 183,571 |
| Pension contributions to money purchase schemes | 61,328 | 133,870 |
| 5. | OPERATING (LOSS)/PROFIT |
| The operating loss (2023 - operating profit) is stated after charging/(crediting): |
| 31.10.24 | 31.10.23 |
| £ | £ |
| Hire of plant and machinery | 27,962 | 1,051,080 |
| Other operating leases | 618,752 | 182,213 |
| Depreciation - owned assets | 1,496,481 | 1,049,639 |
| Depreciation - assets on hire purchase contracts | 355,478 | 688,692 |
| Profit on disposal of fixed assets | (58,091 | ) | (345,202 | ) |
| Goodwill amortisation | (538,805 | ) | 1,506,785 |
| Patents and licences amortisation | 1,240 | - |
| Other intangibles amortisation | 3,753 | 2,174 |
| Auditors' remuneration | 52,000 | 49,500 |
| Auditors' remuneration for non audit work | 4,000 | 11,935 |
| Auditors' remuneration - other services | 94,750 | 99,500 |
| Foreign exchange differences | 33,607 | (17,869 | ) |
| Operating lease rental income | 687,521 | 680,503 |
| Heathpatch Limited (Registered number: 03381606) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 October 2024 |
| 6. | EXCEPTIONAL ITEMS |
| 31.10.24 | 31.10.23 |
| £ | £ |
| Exceptional items | - | 439,820 |
| Profit on sale of subsidiaries | 11,868,501 | 10,494,014 |
| Profit on sale of investments | 3,892,372 | 751,130 |
| 15,760,873 | 11,684,964 |
| On 25 July 2024 the group disposed of its shareholding in a subsidiary company resulting in a profit of £11,868,501, see note 30. |
| Also on 25 July 2024 the group disposed of its minority shareholding in a fixed asset investment resulting in a profit of £3,892,372. |
| During the prior year a subsidiary company continued to move its productions to a new site. This resulted in costs amounting to £119,415 which has been included in exceptional items above. |
| During the prior year there was also a grant of a 125 year lease. This the resulted in a profit on the disposal of land of £559,235 which has been included in exceptional items above. |
| On 23 December 2022 the group disposed of its shareholding in a subsidiary company resulting in a profit of £10,494,014. |
| On 25 October 2023 the group made a profit of £751,130 on the agreed sale of a trade investment in an unlisted trading company. |
| 7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 31.10.24 | 31.10.23 |
| £ | £ |
| Bank interest | 112,883 | 169,285 |
| Bank loan interest | 392,324 | 450,978 |
| Other loan interest | 6,669 | 61,150 |
| Hire purchase interest | 208,513 | 165,122 |
| Bank charges | 74,728 | 124,550 |
| 795,117 | 971,085 |
| 8. | TAXATION |
| Analysis of the tax (credit)/charge |
| The tax (credit)/charge on the profit for the year was as follows: |
| 31.10.24 | 31.10.23 |
| £ | £ |
| Current tax: |
| Foreign tax | - | 3,294 |
| Deferred tax - current | (984,092 | ) | 1,006,594 |
| Tax on profit | (984,092 | ) | 1,009,888 |
| Heathpatch Limited (Registered number: 03381606) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 October 2024 |
| 8. | TAXATION - continued |
| Reconciliation of total tax (credit)/charge included in profit and loss |
| The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
| 31.10.24 | 31.10.23 |
| £ | £ |
| Profit before tax | 8,285,588 | 13,766,362 |
| Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 22.520 %) |
2,071,397 |
3,100,185 |
| Effects of: |
| Expenses not deductible for tax purposes | 5,494,310 | 518,725 |
| Income not taxable for tax purposes | (9,522,334 | ) | (2,551,929 | ) |
| Utilisation of tax losses | - | (196,037 | ) |
| Adjustments to tax charge in respect of previous periods | - | 9,000 |
| Deferred tax due to change in rate | - | 82,326 |
| Super deduction | - | (24,134 | ) |
| Research and development enhanced expenditure | (55,683 | ) | (43,455 | ) |
| Deferred tax not recognised in subsidiaries | 444,830 | 76,021 |
| Loss carried forward | 1,052,388 | 42,687 |
| Foreign tax | - | (3,501 | ) |
| Profit of subsidiaries disposed during the year | (469,000 | ) | - |
| Total tax (credit)/charge | (984,092 | ) | 1,009,888 |
| Tax effects relating to effects of other comprehensive income |
| 31.10.24 |
| Gross | Tax | Net |
| £ | £ | £ |
| Property revaluation | (1,127,230 | ) | - | (1,127,230 | ) |
| Exchange movement | 9,029 | - | 9,029 |
| (1,118,201 | ) | - | (1,118,201 | ) |
| 31.10.23 |
| Gross | Tax | Net |
| £ | £ | £ |
| Property revaluation | 862,927 | - | 862,927 |
| Exchange movement | (19,701 | ) | - | (19,701 | ) |
| Loss on sale of minority interest |
| 843,226 | - | 843,226 |
| At the year end, the group had UK tax losses of £14.3m (2023: £4.56m). |
| 9. | INDIVIDUAL INCOME STATEMENT |
| As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
| Heathpatch Limited (Registered number: 03381606) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 October 2024 |
| 10. | DIVIDENDS |
| 31.10.24 | 31.10.23 |
| £ | £ |
| Voting ordinary 1p shares | 4,701,860 | - |
| Voting ordinary deferred 1p shares | 297,493 | - |
| Voting redeemable preference £1.00 shares 'B' | 647 | - |
| 5,000,000 | - |
| 11. | PRIOR PERIOD ADJUSTMENT |
| For the year ended 31 October 2022 a prior year adjustment was made in a subsidiary due to the previous omission of transport and duty costs of stock items. As a result the opening retained earnings for 31 October 2023 increased by £102,329, as shown in the statement of other comprehensive income. |
| Heathpatch Limited (Registered number: 03381606) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 October 2024 |
| 12. | INTANGIBLE FIXED ASSETS |
| Group |
| Goodwill | Negative | Net |
| goodwill | goodwill |
| £ | £ | £ |
| COST |
| At 1 November 2023 | 6,285,279 | (54,801 | ) | 6,230,478 |
| Additions | - | (1,691,484 | ) | (1,691,484 | ) |
| Disposals | (2,391,013 | ) | 54,664 | (2,336,349 | ) |
| At 31 October 2024 | 3,894,266 | (1,691,621 | ) | 2,202,645 |
| AMORTISATION |
| At 1 November 2023 | 4,372,470 | (54,801 | ) | 4,317,669 |
| Charge for year | 179,329 | (718,134 | ) | (538,805 | ) |
| On disposals | (657,533 | ) | 54,664 | (602,869 | ) |
| At 31 October 2024 | 3,894,266 | (718,271 | ) | 3,175,995 |
| NET BOOK VALUE |
| At 31 October 2024 | - | (973,350 | ) | (973,350 | ) |
| At 31 October 2023 | 1,912,809 | - | 1,912,809 |
| Other |
| intangibles | Totals |
| £ | £ |
| COST |
| At 1 November 2023 | 204,603 | 6,435,081 |
| Additions | 16,500 | (1,674,984 | ) |
| Disposals | (2,998 | ) | (2,339,347 | ) |
| At 31 October 2024 | 218,105 | 2,420,750 |
| AMORTISATION |
| At 1 November 2023 | 200,703 | 4,518,372 |
| Charge for year | 4,993 | (533,812 | ) |
| On disposals | (2,224 | ) | (605,093 | ) |
| At 31 October 2024 | 203,472 | 3,379,467 |
| NET BOOK VALUE |
| At 31 October 2024 | 14,633 | (958,717 | ) |
| At 31 October 2023 | 3,900 | 1,916,709 |
| Included in the above is negative goodwill that arose on the acquisition of Cogent Technology Limited (see note 31). At the year end the balance of negative goodwil relating to this was £973,350. |
| Heathpatch Limited (Registered number: 03381606) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 October 2024 |
| 13. | TANGIBLE FIXED ASSETS |
| Group |
| Freehold | Assets |
| land and | Leasehold | under |
| buildings | improvements | construction |
| £ | £ | £ |
| COST OR VALUATION |
| At 1 November 2023 | 47,066,957 | 1,021,849 | 85,995 |
| Additions | 3,587,583 | - | - |
| Disposals | (40,000 | ) | (91,228 | ) | - |
| Acquisitions | - | 325,496 | - |
| Impairments | (1,502,973 | ) | - | - |
| Exchange differences | - | - | - |
| Reclassification/transfer | (368,216 | ) | - | - |
| At 31 October 2024 | 48,743,351 | 1,256,117 | 85,995 |
| DEPRECIATION |
| At 1 November 2023 | - | 203,335 | 23,191 |
| Charge for year | - | 148,464 | 180 |
| Eliminated on disposal | - | (46,885 | ) | - |
| Acquisitions | - | 130,744 | - |
| Impairments | - | - | 62,624 |
| At 31 October 2024 | - | 435,658 | 85,995 |
| NET BOOK VALUE |
| At 31 October 2024 | 48,743,351 | 820,459 | - |
| At 31 October 2023 | 47,066,957 | 818,514 | 62,804 |
| Heathpatch Limited (Registered number: 03381606) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 October 2024 |
| 13. | TANGIBLE FIXED ASSETS - continued |
| Group |
| Fixtures |
| Plant and | and | Motor |
| machinery | fittings | vehicles | Totals |
| £ | £ | £ | £ |
| COST OR VALUATION |
| At 1 November 2023 | 11,911,322 | 433,990 | 6,532,222 | 67,052,335 |
| Additions | 1,529,816 | 97,380 | 2,343,940 | 7,558,719 |
| Disposals | (5,751,625 | ) | (253,753 | ) | (7,357,504 | ) | (13,494,110 | ) |
| Acquisitions | 1,389,931 | 545,478 | - | 2,260,905 |
| Impairments | - | - | - | (1,502,973 | ) |
| Exchange differences | (132 | ) | - | - | (132 | ) |
| Reclassification/transfer | - | - | - | (368,216 | ) |
| At 31 October 2024 | 9,079,312 | 823,095 | 1,518,658 | 61,506,528 |
| DEPRECIATION |
| At 1 November 2023 | 5,863,153 | 196,154 | 2,745,656 | 9,031,489 |
| Charge for year | 972,110 | 61,257 | 669,948 | 1,851,959 |
| Eliminated on disposal | (2,642,661 | ) | (165,895 | ) | (2,690,777 | ) | (5,546,218 | ) |
| Acquisitions | 1,005,206 | 431,830 | - | 1,567,780 |
| Impairments | 19,235 | - | - | 81,859 |
| At 31 October 2024 | 5,217,043 | 523,346 | 724,827 | 6,986,869 |
| NET BOOK VALUE |
| At 31 October 2024 | 3,862,269 | 299,749 | 793,831 | 54,519,659 |
| At 31 October 2023 | 6,048,169 | 237,836 | 3,786,566 | 58,020,846 |
| Included in cost or valuation of Freehold land and buildings is freehold land of £37,367,000 (2023 - £37,085,000) which is not depreciated. |
| Cost or valuation at 31 October 2024 is represented by: |
| Freehold | Assets |
| land and | Leasehold | under |
| buildings | improvements | construction |
| £ | £ | £ |
| Valuation in 2024 | 23,940,612 | - | - |
| Cost | 24,802,739 | 1,256,117 | 85,995 |
| 48,743,351 | 1,256,117 | 85,995 |
| Fixtures |
| Plant and | and | Motor |
| machinery | fittings | vehicles | Totals |
| £ | £ | £ | £ |
| Valuation in 2024 | - | - | - | 23,940,612 |
| Cost | 9,079,312 | 823,095 | 1,518,658 | 37,565,916 |
| 9,079,312 | 823,095 | 1,518,658 | 61,506,528 |
| Heathpatch Limited (Registered number: 03381606) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 October 2024 |
| 13. | TANGIBLE FIXED ASSETS - continued |
| Group |
| If freehold land and buildings had not been revalued they would have been included at the following historical cost: |
| 31.10.24 | 31.10.23 |
| £ | £ |
| Cost | 24,802,739 | 19,320,751 |
| Value of land in freehold land and buildings | 48,743,351 | 47,066,957 |
| During the year £368,216 (2023: £300,000) was transferred out of freehold land and buildings to investment properties. |
| Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
| Plant and | Motor |
| machinery | vehicles | Totals |
| £ | £ | £ |
| COST OR VALUATION |
| At 1 November 2023 | 5,008,222 | 4,885,751 | 9,893,973 |
| Additions | 1,587,475 | 513,678 | 2,101,153 |
| Disposals | (3,228,992 | ) | (4,471,956 | ) | (7,700,948 | ) |
| Acquisitions | 143,254 | - | 143,254 |
| Transfer to ownership | (2,413,340 | ) | (190,086 | ) | (2,603,426 | ) |
| At 31 October 2024 | 1,096,619 | 737,387 | 1,834,006 |
| DEPRECIATION |
| At 1 November 2023 | 1,948,551 | 1,960,225 | 3,908,776 |
| Charge for year | 184,494 | 170,984 | 355,478 |
| Eliminated on disposal | (734,795 | ) | (1,856,194 | ) | (2,590,989 | ) |
| Acquisitions | 38,010 | - | 38,010 |
| Transfer to ownership | (1,083,662 | ) | (120,925 | ) | (1,204,587 | ) |
| At 31 October 2024 | 352,598 | 154,090 | 506,688 |
| NET BOOK VALUE |
| At 31 October 2024 | 744,021 | 583,297 | 1,327,318 |
| At 31 October 2023 | 3,059,671 | 2,925,526 | 5,985,197 |
| Heathpatch Limited (Registered number: 03381606) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 October 2024 |
| 13. | TANGIBLE FIXED ASSETS - continued |
| Company |
| Freehold |
| land and | Plant and | Motor |
| buildings | machinery | vehicles | Totals |
| £ | £ | £ | £ |
| COST OR VALUATION |
| At 1 November 2023 |
| Additions |
| Disposals | ( |
) | ( |
) |
| Impairments | (1,502,973 | ) | - | - | (1,502,973 | ) |
| Reclassification/transfer | ( |
) | ( |
) |
| At 31 October 2024 |
| DEPRECIATION |
| At 1 November 2023 |
| Charge for year |
| Eliminated on disposal | ( |
) | ( |
) |
| At 31 October 2024 |
| NET BOOK VALUE |
| At 31 October 2024 |
| At 31 October 2023 |
| Included in cost or valuation of Freehold land and buildings is freehold land of £37,137,000 (2023 - £36,855,000) which is not depreciated. |
| Cost or valuation at 31 October 2024 is represented by: |
| Freehold |
| land and | Plant and | Motor |
| buildings | machinery | vehicles | Totals |
| £ | £ | £ | £ |
| Valuation in 2024 | 23,774,291 | - | - | 23,774,291 |
| Cost | 21,946,427 | 1,951,549 | 117,191 | 24,015,167 |
| 45,720,718 | 1,951,549 | 117,191 | 47,789,458 |
| If freehold land and buildings had not been revalued they would have been included at the following historical cost: |
| 31.10.24 | 31.10.23 |
| £ | £ |
| Cost | 21,946,427 | 16,751,470 |
| Value of land in freehold land and buildings | 45,720,718 | 44,023,354 |
| Heathpatch Limited (Registered number: 03381606) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 October 2024 |
| 13. | TANGIBLE FIXED ASSETS - continued |
| Company |
| The company and group's freehold land and buildings were revalued as at 31 October 2024 by professional valuers registered with the Royal Institute of Chartered Surveyors (RICS). The valuations were undertaken to give an assessment of the market values at the year end, but due to the high level of uncertainty present in the general property market they have stated that the valuation cannot be relied upon. As a result, the valuations reported in the financial statements should be viewed with a higher degree of caution. Discussions with our valuers have concluded that the uncertainties are not considered material. |
| Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
| Plant and |
| machinery |
| £ |
| COST OR VALUATION |
| At 1 November 2023 |
| Transfer to ownership | (164,000 | ) |
| At 31 October 2024 |
| DEPRECIATION |
| At 1 November 2023 |
| Charge for year |
| Transfer to ownership | (73,590 | ) |
| At 31 October 2024 |
| NET BOOK VALUE |
| At 31 October 2024 |
| At 31 October 2023 |
| 14. | FIXED ASSET INVESTMENTS |
| Group | Company |
| 31.10.24 | 31.10.23 | 31.10.24 | 31.10.23 |
| £ | £ | £ | £ |
| Shares in group undertakings | - | - |
| Loans to group undertakings | - | - |
| Participating interests | 254,364 | 205,897 |
| Other investments not loans | - | 633,882 |
| Other loans | - | 3,498,274 |
| 254,364 | 4,338,053 |
| Heathpatch Limited (Registered number: 03381606) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 October 2024 |
| 14. | FIXED ASSET INVESTMENTS - continued |
| Additional information is as follows: |
| Group |
| Interest |
| in joint | Unlisted |
| venture | investments | Totals |
| £ | £ | £ |
| COST |
| At 1 November 2023 | 205,897 | 633,882 | 839,779 |
| Disposals | - | (633,882 | ) | (633,882 | ) |
| Impairment | 48,467 | - | 48,467 |
| At 31 October 2024 | 254,364 | - | 254,364 |
| NET BOOK VALUE |
| At 31 October 2024 | 254,364 | - | 254,364 |
| At 31 October 2023 | 205,897 | 633,882 | 839,779 |
| Company |
| Shares in |
| group | Unlisted |
| undertakings | investments | Totals |
| £ | £ | £ |
| COST |
| At 1 November 2023 | 13,707,866 |
| Disposals | ( |
) | ( |
) | (3,677,882 | ) |
| Impairment | (4,210,382 | ) | - | (4,210,382 | ) |
| At 31 October 2024 | 5,819,602 |
| NET BOOK VALUE |
| At 31 October 2024 | 5,819,602 |
| At 31 October 2023 | 13,707,866 |
| The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
| Subsidiary |
| Company | Country of incorporation |
Class | Shares held % |
Principal activity |
| KW Holdings Limited | England and Wales |
Ordinary | 100 | Intermediate holding company |
| Camden Boss Limited* | England and Wales |
Ordinary | 100 | Design, manufacture and distribution of electrical components |
| I4Innovation Limited* | England and Wales |
Ordinary | 100 | Dormant |
| Rimer-Alco Limited* | England and Wales |
Ordinary | 100 | Dormant |
| Heathpatch Limited (Registered number: 03381606) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 October 2024 |
| 14. | FIXED ASSET INVESTMENTS - continued |
| Nuwco Limited* | England and Wales |
Ordinary | 100 | Dormant |
| Boss Enclosures Limited * | England and Wales |
Ordinary | 100 | Dormant |
| Camden Electronics (Hong Kong) Limited * |
Hong Kong | Ordinary | 100 | Design, manufacture and distribution of electrical components |
| Boxon Composting Limited * | England and Wales |
Ordinary | 100 | Dissolved post year end |
| Global Machinery Solutions Limited |
England and Wales |
Ordinary | 100 | Sourcing and trading in equipment and machinery to be used in the recycling industry and repair and maintenance of the same |
Corner Energy Limited |
England and Wales |
Ordinary |
100 |
Dissolved post year end |
| Stafford Renewables Limited |
England and Wales |
Ordinary |
100 |
Dissolved post year end |
| GRS Recycling Machinery Limited * |
Republic of Ireland |
Ordinary |
100 |
Sale of recycling machinery |
Material Change AD Limited |
England and Wales |
Ordinary |
100 |
In process of dissolution |
Agroco Farms Limited |
England and Wales |
Ordinary |
100 |
Dissolved post year end |
Mauldons Limited |
England and Wales |
Ordinary |
100 |
Dormant |
Nedging Hall Estate Limited |
England and Wales |
Ordinary |
100 |
Brewery and hospitality |
Cogent Technology Ltd* |
England and Wales |
Ordinary |
100 |
Manufacturing of electronic products |
| * denotes investment held indirectly |
| Agroco Farms Limited (registered in England and Wales under company number 11449673) is exempt from the requirement to have its financial statements audited under section 479A of the UK Companies Act 2006. |
| The results of all of the above companies are appropriately included in the consolidated accounts and are therefore not separately shown. |
| On 25 July 2024 the group sold its 100% shareholding in Material Change Limited and Pedersen Contracting Services Limited (see note 32). |
| Joint venture |
| Registered office: Dairy Farm Office, Dairy Road, Semer, United Kingdom, IP7 6RA |
| Nature of business: |
| % |
| Class of shares: | holding |
| Heathpatch Limited (Registered number: 03381606) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 October 2024 |
| 14. | FIXED ASSET INVESTMENTS - continued |
| Group |
| Other |
| loans |
| £ |
| At 1 November 2023 | 3,498,274 |
| New in year | 233,297 |
| Repayment in year | (3,731,571 | ) |
| At 31 October 2024 | - |
| Company |
| Loans to |
| group | Other |
| undertakings | loans | Totals |
| £ | £ | £ |
| At 1 November 2023 |
| New in year |
| Repayment in year | ( |
) | ( |
) | ( |
) |
| Loan waiver | ( |
) | ( |
) |
| At 31 October 2024 |
| 15. | INVESTMENT PROPERTY |
| Group |
| Total |
| £ |
| FAIR VALUE |
| At 1 November 2023 | 12,409,662 |
| Additions | 60,000 |
| Disposals | (1,258,000 | ) |
| Impairments | (203,216 | ) |
| Transfer | 368,216 |
| At 31 October 2024 | 11,376,662 |
| NET BOOK VALUE |
| At 31 October 2024 | 11,376,662 |
| At 31 October 2023 | 12,409,662 |
| Heathpatch Limited (Registered number: 03381606) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 October 2024 |
| 15. | INVESTMENT PROPERTY - continued |
| Group |
| Fair value at 31 October 2024 is represented by: |
| £ |
| Valuation in 2024 | 2,982,122 |
| Cost | 8,394,540 |
| 11,376,662 |
| The company and group's investment properties were revalued as at 31 October 2024 by a combination of a report provided by professional valuers registered with the Royal Institute of Chartered Surveyors (RICS), and where a professional evaluation has not been undertaken, by the directors on an open market basis using their knowledge and market data. The valuations were undertaken to give an assessment of the market values at the year end, but due to the high level of uncertainty present in the general property market they have stated that the valuation cannot be relied upon. As a result, the valuations reported in the financial statements should be viewed with a higher degree of caution. Discussions with our valuers have concluded that the uncertainties are not considered material. |
| Company |
| Total |
| £ |
| FAIR VALUE |
| At 1 November 2023 |
| Additions |
| Disposals | ( |
) |
| Impairments | (203,216 | ) |
| Transfer | 368,216 |
| At 31 October 2024 |
| NET BOOK VALUE |
| At 31 October 2024 |
| At 31 October 2023 |
| Fair value at 31 October 2024 is represented by: |
| £ |
| Valuation in 2024 | 2,982,121 |
| Cost | 8,394,540 |
| 11,376,661 |
| Investment properties were valued by a combination of valuations received from an independent firm of chartered surveyors and the directors on an open market basis on 31 October 2024. |
| Heathpatch Limited (Registered number: 03381606) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 October 2024 |
| 16. | STOCKS |
| Group | Company |
| 31.10.24 | 31.10.23 | 31.10.24 | 31.10.23 |
| £ | £ | £ | £ |
| Raw materials | 4,730,481 | 2,669,703 |
| Work-in-progress | 344,004 | 105,368 |
| Finished goods | 10,891,037 | 12,063,051 |
| 15,965,522 | 14,838,122 |
| Included within stock are items with a cost of £241,443 (2023 - £728,699) secured against finance agreements. |
| 17. | DEBTORS |
| Group | Company |
| 31.10.24 | 31.10.23 | 31.10.24 | 31.10.23 |
| £ | £ | £ | £ |
| Amounts falling due within one year: |
| Trade debtors | 3,535,613 | 28,330,486 |
| Amounts owed by group undertakings | - | - |
| Other debtors | 1,177,898 | 2,787,747 |
| Directors' current accounts | 970,064 | - | 970,064 | - |
| Corporation tax debtor | 884 | 133,231 |
| VAT | - | - |
| Prepayments and accrued income | 1,134,406 | 2,009,033 |
| 6,818,865 | 33,260,497 |
| Amounts falling due after more than one | year: |
| Other debtors | - | 400,000 |
| Aggregate amounts | 6,818,865 | 33,660,497 |
| 18. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 31.10.24 | 31.10.23 | 31.10.24 | 31.10.23 |
| £ | £ | £ | £ |
| Bank loans and overdrafts (see note 20) | - | 5,088,467 |
| Other loans (see note 20) | 90,000 | 1,500,000 |
| Hire purchase contracts (see note 21) | 359,116 | 1,559,595 |
| Trade creditors | 4,380,729 | 17,647,676 |
| Amounts owed to joint ventures | 130,713 | 5,080 | 130,713 | 5,080 |
| Tax | - | 3,124 |
| Social security and other taxes | 367,063 | 588,159 |
| VAT | 551,738 | 991,682 | - | 54,620 |
| Other creditors | 1,851,861 | 1,091,007 |
| Directors' current accounts | 4,686,833 | 609,242 | 4,686,833 | 609,242 |
| Accruals and deferred income | 2,094,471 | 2,824,581 |
| Deferred government grants | 13,877 | - |
| 14,526,401 | 31,908,613 |
| Heathpatch Limited (Registered number: 03381606) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 October 2024 |
| 19. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| Group | Company |
| 31.10.24 | 31.10.23 | 31.10.24 | 31.10.23 |
| £ | £ | £ | £ |
| Bank loans (see note 20) | - | 5,357,143 |
| Hire purchase contracts (see note 21) | 516,422 | 2,058,293 |
| Deferred government grants | 55,280 | - |
| 571,702 | 7,415,436 |
| 20. | LOANS |
| An analysis of the maturity of loans is given below: |
| Group | Company |
| 31.10.24 | 31.10.23 | 31.10.24 | 31.10.23 |
| £ | £ | £ | £ |
| Amounts falling due within one year or on | demand: |
| Bank overdrafts | - | 4,386,925 |
| Bank loans | - | 701,542 |
| Other loans | 90,000 | 1,500,000 |
| 90,000 | 6,588,467 |
| Amounts falling due between one and two | years: |
| Bank loans - 1-2 years | - | 3,214,286 |
| Amounts falling due between two and five | years: |
| Bank loans - 2-5 years | - | 2,142,857 |
| 21. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Group |
| Hire purchase contracts |
| 31.10.24 | 31.10.23 |
| £ | £ |
| Net obligations repayable: |
| Within one year | 359,116 | 1,559,595 |
| Between one and five years | 516,422 | 2,058,293 |
| 875,538 | 3,617,888 |
| Company |
| Hire purchase contracts |
| 31.10.24 | 31.10.23 |
| £ | £ |
| Net obligations repayable: |
| Within one year |
| Heathpatch Limited (Registered number: 03381606) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 October 2024 |
| 21. | LEASING AGREEMENTS - continued |
| Group |
| Non-cancellable operating | leases |
| 31.10.24 | 31.10.23 |
| £ | £ |
| Within one year | 575,075 | 701,973 |
| Between one and five years | 1,000,872 | 1,986,484 |
| In more than five years | 628,606 | 1,277,422 |
| 2,204,553 | 3,965,879 |
| During the prior year, the group entered into a lease agreement to rent a group of residential properties. Under the conditions of the lease, the group is required to undertake certain repair works to the properties. It is estimated that the cost of these repairs is in the region of £49,600. By the end of 31 October 2024, this work was in progress and the deadline to complete it is 30 September 2025. |
| Company |
| Non-cancellable operating | leases |
| 31.10.24 | 31.10.23 |
| £ | £ |
| Within one year |
| Between one and five years |
| In more than five years |
| Heathpatch Limited (Registered number: 03381606) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 October 2024 |
| 22. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| Group | Company |
| 31.10.24 | 31.10.23 | 31.10.24 | 31.10.23 |
| £ | £ | £ | £ |
| Bank overdraft | - | 4,386,925 |
| Bank loans | - | 6,058,685 |
| Hire purchase contracts | 875,538 | 3,617,888 | - | 32,684 |
| 875,538 | 14,063,498 |
| The bank borrowings are secured by legal charges over land owned by the group in England and by a debenture over the assets of Heathpatch Limited. There is also a second charge over assets owned by a director. This charge has been released after the year end. All charges are registered at Companies House. |
| Heathpatch Limited has given a cross guarantee and debenture between Global Machinery Solutions Limited and Camden Boss Limited dated 15 September 2020 to Barclays Bank Plc. |
| The group has entered into a Composite Accounting Agreement with an unlimited guarantee to Barclays Bank Plc dated 19 February 2021. The participating companies in the guarantee are: Heathpatch Limited, Global Machinery Solutions Limited, Nedging Hall Estate Limited, and Camden Boss Limited. The agreement allows for interest to be set off and debit balances to be used in reducing liabilities within the Composite Accounting System. |
| On 20 September 2023, Heathpatch Limited granted a 125 year lease over certain parcels of land. A charge over this land is registered at Companies House in favour of the tenant under charge code 0338 1606 0028). This gives certain rights to the tenant in the event of a default. Furthermore, Heathpatch Limited entered into a S106 agreement in conjunction with the tenant in respect of this land. |
| After the year end on 10 April 2025, Heathpatch Ltd became a guarantor for a manufacturing agreement entered into by Cogent Technology Ltd, a subsidiary company. From the date of the agreement, Heathpatch Ltd is liable for any overdue debts and breaches in the agreement. |
| 23. | PROVISIONS FOR LIABILITIES |
| Group | Company |
| 31.10.24 | 31.10.23 | 31.10.24 | 31.10.23 |
| £ | £ | £ | £ |
| Deferred tax |
| Accelerated capital allowances | 136,193 | 1,507,106 |
| Freehold property revaluations | 4,170,198 | 4,751,944 |
| Investment property revaluations | 437,941 | 575,942 | 378,903 | 516,904 |
| Other timing differences | (680,718 | ) | (62,270 | ) | (680,043 | ) | (31,655 | ) |
| 4,063,614 | 6,772,722 | 4,011,415 | 5,371,251 |
| Heathpatch Limited (Registered number: 03381606) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 October 2024 |
| 23. | PROVISIONS FOR LIABILITIES - continued |
| Group |
| Deferred |
| tax |
| £ |
| Balance at 1 November 2023 | 6,772,722 |
| Charge to income statement | (984,092 | ) |
| Charge to revaluation reserve | (1,725,016 | ) |
| Balance at 31 October 2024 | 4,063,614 |
| Company |
| Deferred |
| tax |
| £ |
| Balance at 1 November 2023 |
| Charge to income statement | (984,092 | ) |
| Charge to revaluation reserve | (375,744 | ) |
| Balance at 31 October 2024 |
| 24. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
Number |
Class |
Nominal Value |
31.10.24 |
31.10.23 |
| 1,818,260,930 | Ordinary | 1p | £18,182,609 | £18,182,609 |
| 126,305,522 | Ordinary B | 1p | £1,263,055 | £1,263,055 |
| 114,188,052 | Ordinary C | 1p | £1,141,881 | £1,141,881 |
| 130,260,000 | Deferred | 1p | £1,302,600 | £1,302,600 |
| 283,480 Voting Preference B £1 | £283,480 | £283,740 |
| £22,173,625 | £22,173,885 |
| Ordinary shares rank pari passu in all respects carrying full rights and entitlements to a dividend. Ordinary deferred shares rank pari passu in all respects carrying full rights and entitlements to a dividend. Voting preference B shares are each entitled to one vote and hold no dividend rights. |
| During the year, 260 Voting Redeemable Preference Shares B were redeemed at £1 per share. The shares were cancelled on redemption. |
| Heathpatch Limited (Registered number: 03381606) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 October 2024 |
| 25. | RESERVES |
| Group |
| Investment |
| property |
| Retained | Share | revaluation |
| earnings | premium | reserve |
| £ | £ | £ |
| At 1 November 2023 | 31,770,130 | 1,232,855 | 2,728,022 |
| Profit for the year | 9,269,680 |
| Dividends | (5,000,000 | ) |
| Property revaluation | 116,847 | - | (116,847 | ) |
| Transfer | 59,587 | - | (59,587 | ) |
| Exchange differences | 9,029 | - | - |
| At 31 October 2024 | 36,225,273 | 1,232,855 | 2,551,588 |
| Group |
| Capital |
| redemption | Revaluation |
| reserve | reserve | Totals |
| £ | £ | £ |
| At 1 November 2023 | 770,000 | 20,864,755 | 57,365,762 |
| Profit for the year | 9,269,680 |
| Dividends | (5,000,000 | ) |
| Property revaluation | - | (1,127,230 | ) | (1,127,230 | ) |
| Exchange differences | - | - | 9,029 |
| At 31 October 2024 | 770,000 | 19,737,525 | 60,517,241 |
| Company |
| Investment |
| property |
| Retained | Share | revaluation |
| earnings | premium | reserve |
| £ | £ | £ |
| At 1 November 2023 |
| Profit for the year |
| Dividends | ( |
) |
| Property revaluation | 116,847 | - | (116,847 | ) |
| Transfer | 59,587 | - | (59,587 | ) |
| At 31 October 2024 |
| Heathpatch Limited (Registered number: 03381606) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 October 2024 |
| 25. | RESERVES - continued |
| Company |
| Capital |
| redemption | Revaluation |
| reserve | reserve | Totals |
| £ | £ | £ |
| At 1 November 2023 | 42,087,406 |
| Profit for the year |
| Dividends | ( |
) |
| Property revaluation | - | (1,127,230 | ) | (1,127,230 | ) |
| At 31 October 2024 | 52,189,766 |
| 26. | PENSION COMMITMENTS |
| The group operates defined contribution pension schemes. The assets of the schemes are held separately from those of the companies in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £535,858 (2023 - £671,243). The pension contributions outstanding at the year end amounted to £45,701 (2023 - £229,664). |
| 27. | CAPITAL COMMITMENTS |
| 31.10.24 | 31.10.23 |
| £ | £ |
| Contracted but not provided for in the |
| financial statements | 2,564,170 | 1,723,191 |
| This amount relates to 216.94 acres of land purchased in November 2024 for £2,564,170. A deposit of £271,000 is included in prepayments. |
| 28. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
| At 31 October 2024 a total of £970,064 (2023: £Nil) was owed from the directors of the company. The largest value of the loan during the year was £970,064 (2023: £Nil). During the year this had interest charged of £5,780 (2023: £Nil). The amount is due for repayment by 31 July 2025. |
| 29. | RELATED PARTY DISCLOSURES |
| Entities under common directorships |
| 31.10.24 | 31.10.23 |
| £ | £ |
| Loan interest received | 185,669 | 292,510 |
| Amount due from related party | - | 3,566,565 |
| Other related parties |
| 31.10.24 | 31.10.23 |
| £ | £ |
| Sales | 72,497 | 116,777 |
| Sale of asset | 200,000 | - |
| Purchases | 95,283 | 93,546 |
| Amount due from related party | 67,138 | 30,043 |
| Heathpatch Limited (Registered number: 03381606) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 October 2024 |
| 29. | RELATED PARTY DISCLOSURES - continued |
| The sale of asset relates to £200,000 of proceeds from the sale of a commercial property to a director which had been held at a valuation of £250,000. |
| As at 31 October 2024 a total of £4,686,833 (2023 - £609,242) was due to the directors of the company and this is repayable on demand. This had interest charged of £6,669 (2023: £Nil) during the year. |
| Guarantees and commitments with related parties are detailed in the Secured Debts note 22 to these accounts. |
| Details of the remuneration paid to key management is detailed in note 4. |
| 30. | ULTIMATE CONTROLLING PARTY |
| The company is controlled by the following shareholders who together own 100% of the company's issued share capital- |
| The Hadley Settlement |
| The Barnet Trust |
| Mr J K Buckle |
| Gill Buckle UK Grandchildren's Trust |
| Jacamar Holdings Limited |
| The Stone Settlement |
| The trustees of the above settlements have powers under a common shareholders' agreement and in the opinion of the directors, there is no one controlling party. |
| 31. | ACQUISITION OF SUBSIDIARY UNDERTAKING |
| On 18 January 2024 the Group acquired 90% of the issued share capital of Cogent Technology Limited. The total cost was £283,464. The subsidiary companies have been accounted for using the acquisition method of accounting from the date of acquisition. |
| Subsequently on 11 October 2024, the group acquired the remaining 10% of the issued share capital of Cogent Technology Limited for a cost of £30,150. The total cost of acquiring 100% of the share capital was £313,614. |
| The assets and liabilities acquired in the subsidiary undertaking include: |
| Book | Fair value |
| value | to group |
| £ | £ |
| Tangible fixed assets | 693,124 | 693,124 |
| Stock | 3,207,712 | 3,207,712 |
| Debtors | 58,313 | 58,313 |
| Cash | 351,569 | 351,569 |
| Creditors | (2,705,620 | ) | (2,305,620 | ) |
| 1,605,098 | 2,005,098 |
| Goodwill | (1,291,484 | ) | (1,691,484 | ) |
| Total consideration | 313,614 | 313,614 |
| Heathpatch Limited (Registered number: 03381606) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 October 2024 |
| 32. | DISPOSAL OF GROUP UNDERTAKING |
| On 25 July 2024 the group disposed of its majority shareholding in Material Change Limited and its subsidiary, Pedersen Contracting Services Limited. The subsidiary companies were accounted for using the acquisition method of accounting. The results of these subsidiaries have been presented as discontinued operations on the Income statement. |
| The assets and liabilities disposed in the subsidiary undertaking include: |
| £ | £ |
| Proceeds on disposal | 25,000,000 |
| Less: |
| Tangible fixed assets | 7,099,766 |
| Stock | 57,012 |
| Debtors | 12,974,396 |
| Cash | 1,332,115 |
| Creditors | (8,774,036 | ) |
| Deferred tax provision | (1,349,272 | ) |
| Net assets on disposal | (11,339,981 | ) |
| Goodwill | (1,733,485 | ) |
| Legal fees | (58,033 | ) |
| Consolidated profit on sale | 11,868,501 |