| REGISTERED NUMBER: |
| STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
| FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| FOR |
| HYDRO WATER MANAGEMENT SOLUTIONS LTD |
| REGISTERED NUMBER: |
| STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
| FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| FOR |
| HYDRO WATER MANAGEMENT SOLUTIONS LTD |
| HYDRO WATER MANAGEMENT SOLUTIONS LTD (REGISTERED NUMBER: 08235828) |
| CONTENTS OF THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| Page |
| Company Information | 1 |
| Strategic Report | 2 |
| Report of the Directors | 4 |
| Report of the Independent Auditor | 5 |
| Income Statement | 9 |
| Other Comprehensive Income | 10 |
| Balance Sheet | 11 |
| Statement of Changes in Equity | 12 |
| Cash Flow Statement | 13 |
| Notes to the Cash Flow Statement | 14 |
| Notes to the Financial Statements | 15 |
| HYDRO WATER MANAGEMENT SOLUTIONS LTD |
| COMPANY INFORMATION |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| DIRECTORS: |
| SECRETARY: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITOR: |
| Statutory Auditor |
| North Lodge |
| Hawkesyard |
| Armitage Lane |
| Rugeley |
| Staffordshire |
| WS15 1PS |
| HYDRO WATER MANAGEMENT SOLUTIONS LTD (REGISTERED NUMBER: 08235828) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| The directors present their strategic report for the year ended 31 October 2024. |
| REVIEW OF BUSINESS |
| During the year the company continued to maintain market share in a difficult time for construction industry. The company achieved turnover of £16.85m (2023: £14.74m) and profit before taxation of £1.49m (2023: £0.93m). |
| KEY PERFORMANCE INDICATORS |
| The directors are satisfied with the performance of the company for the year and believe the company is well positioned to make further progress in the coming years. |
| The Key performance indicators used by management to monitor performance are as follows: |
| 2024 | 2023 |
| Revenue growth | 14.32% | (12.65%) |
| Operating profit to turnover | 8.85% | 6.29% |
| Profit on ordinary activities before taxation |
£1.49m |
£0.93m |
| The Company's net asset value now stands at £2.00m (2023: £1.66m). |
| DEBTORS, CREDITORS AND FINANCIAL INSTRUMENTS |
| It is the Company's policy to agree the terms and conditions under which business transactions are conducted with each supplier. The company endeavours to pay all suppliers within payment terms where the supplier has provided goods and services in accordance with the terms and conditions of the contract. All loan repayments are made in accordance with the terms set out in the agreements. |
| The company continues to try to improve debtor collection period to help working capital. |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The directors consider that the following are the principal risk factors that could materially and adversely affect the company's future operating profits or financial position. |
| Macroeconomic and political conditions |
| The company is dependant on the level of activity in the construction industry and is therefore susceptible | tochanges in government policy, interest rates and any political or economic uncertainty. |
| Materials supply and pricing |
| The company is exposed to fluctuations in the cost of materials which have increased due to the volatility | ofcrude oil prices the cost of haulage. |
| Competitors |
| There are a number of competitors to the company. To minimise the risk, we regularly review the marketplace | and our competitors. The building of close relationships with our customers is key to maintaining our | competitive advantage. |
| Financial Risk |
| Cash flow is essential and continuous management and review of the aged debt highlights any exposure or risk. | Given the relationships we maintain with our customers our exposure to bad debt is limited. |
| HYDRO WATER MANAGEMENT SOLUTIONS LTD (REGISTERED NUMBER: 08235828) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| FUTURE PLANS |
| The Directors anticipate growth over the coming five years. This is down to a combination of organic and regional growth coupled with changes in legislation increasing the storage requirements of attenuation tanks on new construction sites. |
| They anticipate that current levels of profit and dividends are sustainable for the foreseeable future. |
| ON BEHALF OF THE BOARD: |
| Director |
| 14 July 2025 |
| HYDRO WATER MANAGEMENT SOLUTIONS LTD (REGISTERED NUMBER: 08235828) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| The directors present their report with the financial statements of the company for the year ended 31 October 2024. |
| PRINCIPAL ACTIVITY |
| The principal activity of the company in the year under review was that of the design, supply and installation of stormwater management solutions and the supply and installation of gas membrane barriers. |
| DIVIDENDS |
| The total distribution for the year ended 31 October 2024 will be £740,379. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 November 2023 to the date of this report. |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
| Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
| The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO 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 company's auditor is 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 company's auditor is aware of that information. |
| AUDITOR |
| The auditor, Richards Associates Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF |
| HYDRO WATER MANAGEMENT SOLUTIONS LTD |
| Opinion |
| I have audited the financial statements of Hydro Water Management Solutions Ltd (the 'company') for the year ended 31 October 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 my opinion the financial statements: |
| - | give a true and fair view of the state of the company's affairs as at 31 October 2024 and of its profit for the year then ended; |
| - | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
| - | have been prepared in accordance with the requirements of the Companies Act 2006. |
| Basis for opinion |
| I conducted my audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. My responsibilities under those standards are further described in the Auditor responsibilities for the audit of the financial statements section of my report. I am independent of the company in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK, including the FRC's Ethical Standard, and I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. |
| Conclusions relating to going concern |
| In auditing the financial statements, I 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 I have performed, I have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
| My responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
| Other information |
| The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and my Report of the Auditor thereon. |
| My opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in my report, I do not express any form of assurance conclusion thereon. |
| In connection with my audit of the financial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or my knowledge obtained in the audit or otherwise appears to be materially misstated. If I identify such material inconsistencies or apparent material misstatements, I am required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard. |
| Opinions on other matters prescribed by the Companies Act 2006 |
| In my opinion, based on the work undertaken in the course of the audit: |
| - | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF |
| HYDRO WATER MANAGEMENT SOLUTIONS LTD |
| Matters on which I am required to report by exception |
| In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, I have not identified material misstatements in the Strategic Report or the Report of the Directors. |
| I have nothing to report in respect of the following matters where the Companies Act 2006 requires me to report to you if, in my opinion: |
| - | adequate accounting records have not been kept, or returns adequate for my audit have not been received from branches not visited by me; or |
| - | the financial statements are not in agreement with the accounting records and returns; or |
| - | certain disclosures of directors' remuneration specified by law are not made; or |
| - | I have not received all the information and explanations I require for my audit. |
| Responsibilities of directors |
| As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
| In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
| REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF |
| HYDRO WATER MANAGEMENT SOLUTIONS LTD |
| Auditor's responsibilities for the audit of the financial statements |
| My 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 Auditor that includes my 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 my procedures are capable of detecting irregularities, including fraud is detailed below: |
| As part of an audit in accordance with ISAs (UK), I exercise professional judgement and maintain professional scepticism throughout the audit. |
| Irregularities, including fraud, are instances of non-compliance with laws and regulations. I design procedures in line with my responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. |
| The extent to which my procedures are capable of detecting irregularities, including fraud is detailed below: |
| I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit. |
| I ensured the engagement team had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. |
| I obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations I considered in this context were the Companies Act 2006 and Taxation legislation. |
| I assessed the extent of compliance with the laws and regulations identified above, through enquiries of management and inspecting correspondence with HM Revenue & Customs. Remaining alert for instances of non-compliance throughout the audit. I responded to these risks by enquiring of management about their own identification and assessment of the risks including enquiries of management about their own identification and assessment of the risks of irregularities, performing analytical procedures to identify unusual transactions, sample testing journals and investigation the rationale behind significant or unusual transactions, and reviewing estimates for bias. Also agreeing the financial statement disclosures to underlying supporting documentation. |
| I assessed the susceptibility of the company's financial statements to material misstatement in respect of fraud, by making enquiries of management as to where they considered there was susceptibility to fraud, and knowledge of actual, suspected and alleged fraud. I considered the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
| I made enquiries of management as to the existence of actual or potential litigation and claims. |
| Owing to the inherent limitations of an audit, there is an unavoidable risk that I may not have detected some material misstatements in the financial statements, even though I have properly planned and performed our audit in accordance with auditing standards. I am not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations. |
| A further description of my 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 my Report of the Auditor. |
| REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF |
| HYDRO WATER MANAGEMENT SOLUTIONS LTD |
| Use of my 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. My audit work has been undertaken so that I might state to the company's members those matters I am required to state to them in a Report of the Auditor and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the company and the company's members as a body, for my audit work, for this report, or for the opinions I have formed. |
| for and on behalf of |
| Statutory Auditor |
| North Lodge |
| Hawkesyard |
| Armitage Lane |
| Rugeley |
| Staffordshire |
| WS15 1PS |
| HYDRO WATER MANAGEMENT SOLUTIONS LTD (REGISTERED NUMBER: 08235828) |
| INCOME STATEMENT |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| 31.10.23 | 31.10.24 |
| £ | Notes | £ |
| TURNOVER |
| ( |
) | Cost of sales | ( |
) |
| GROSS PROFIT |
| ( |
) | Administrative expenses | ( |
) |
| OPERATING PROFIT | 4 |
| Interest receivable and similar income |
| 964,549 | 1,502,146 |
| ( |
) | Interest payable and similar expenses | 5 | ( |
) |
| PROFIT BEFORE TAXATION |
| ( |
) | Tax on profit | 6 | ( |
) |
| PROFIT FOR THE FINANCIAL YEAR |
| HYDRO WATER MANAGEMENT SOLUTIONS LTD (REGISTERED NUMBER: 08235828) |
| OTHER COMPREHENSIVE INCOME |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| 31.10.23 | 31.10.24 |
| £ | Notes | £ |
| PROFIT FOR THE YEAR |
| - | OTHER COMPREHENSIVE INCOME | - |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
| HYDRO WATER MANAGEMENT SOLUTIONS LTD (REGISTERED NUMBER: 08235828) |
| BALANCE SHEET |
| 31 OCTOBER 2024 |
| 31.10.23 | 31.10.24 |
| £ | £ | Notes | £ | £ |
| FIXED ASSETS |
| Tangible assets | 8 |
| CURRENT ASSETS |
| Stocks | 9 |
| Debtors | 10 |
| Cash at bank |
| CREDITORS |
| Amounts falling due within one year | 11 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| ( |
) | Amounts falling due after more than one year |
12 |
| ( |
) | PROVISIONS FOR LIABILITIES | 15 | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 16 |
| Retained earnings | 17 |
| SHAREHOLDERS' FUNDS |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| HYDRO WATER MANAGEMENT SOLUTIONS LTD (REGISTERED NUMBER: 08235828) |
| STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 November 2022 |
| Changes in equity |
| Issue of share capital | - |
| Dividends | - | ( |
) | ( |
) |
| Total comprehensive income | - |
| Balance at 31 October 2023 |
| Changes in equity |
| Issue of share capital | - |
| Dividends | - | ( |
) | ( |
) |
| Total comprehensive income | - |
| Balance at 31 October 2024 |
| HYDRO WATER MANAGEMENT SOLUTIONS LTD (REGISTERED NUMBER: 08235828) |
| CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| 31.10.23 | 31.10.24 |
| £ | Notes | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 |
| ( |
) | Interest paid | ( |
) |
| ( |
) | Tax paid | ( |
) |
| Net cash from operating activities |
| Cash flows from investing activities |
| ( |
) | Purchase of tangible fixed assets | ( |
) |
| Sale of tangible fixed assets |
| Interest received |
| ( |
) | Net cash from investing activities | ( |
) |
| Cash flows from financing activities |
| ( |
) | Loan repayments in year | ( |
) |
| 1,270 | Amount introduced by directors | - |
| - | Amount withdrawn by directors | (3 | ) |
| Share issue |
| ( |
) | Equity dividends paid | ( |
) |
| ( |
) | Net cash from financing activities | ( |
) |
| Increase in cash and cash equivalents |
| 1,419,192 | Cash and cash equivalents at beginning of year |
2 |
| 1,797,599 | Cash and cash equivalents at end of year | 2 | 2,655,079 |
| HYDRO WATER MANAGEMENT SOLUTIONS LTD (REGISTERED NUMBER: 08235828) |
| NOTES TO THE CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 31.10.24 | 31.10.23 |
| £ | £ |
| Profit before taxation |
| Depreciation charges |
| Loss on disposal of fixed assets |
| Finance costs | 11,052 | 37,055 |
| Finance income | (4,966 | ) | - |
| 1,520,834 | 989,440 |
| Decrease/(increase) in stocks | ( |
) |
| Decrease/(increase) in trade and other debtors | ( |
) |
| (Decrease)/increase in trade and other creditors | ( |
) |
| Cash generated from operations |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
| Year ended 31 October 2024 |
| 31.10.24 | 1.11.23 |
| £ | £ |
| Cash and cash equivalents | 2,655,079 | 1,797,599 |
| Year ended 31 October 2023 |
| 31.10.23 | 1.11.22 |
| £ | £ |
| Cash and cash equivalents | 1,797,599 | 1,419,192 |
| 3. | ANALYSIS OF CHANGES IN NET FUNDS |
| At 1.11.23 | Cash flow | At 31.10.24 |
| £ | £ | £ |
| Net cash |
| Cash at bank | 1,797,599 | 857,480 | 2,655,079 |
| 1,797,599 | 2,655,079 |
| Debt |
| Debts falling due within 1 year | (77,063 | ) | 4,843 | (72,220 | ) |
| Debts falling due after 1 year | (72,220 | ) | 72,220 | - |
| (149,283 | ) | 77,063 | (72,220 | ) |
| Total | 1,648,316 | 934,543 | 2,582,859 |
| HYDRO WATER MANAGEMENT SOLUTIONS LTD (REGISTERED NUMBER: 08235828) |
| NOTES TO THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| 1. | STATUTORY INFORMATION |
| Hydro Water Management Solutions Ltd is a |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| Significant judgements and estimates |
| The presentation of the financial statements requires judgements, estimations and assumptions to be made that affect the reported values of assets, liabilities, revenue and expenses. The nature of estimation and judgement means that actual outcomes could differ from those estimates. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. |
| Turnover |
| Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
| Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, 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 measure reliably. |
| Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable. |
| Tangible fixed assets |
| Plant and machinery | - |
| Fixtures and fittings | - |
| Motor vehicles | - |
| Computer equipment | - |
| Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. |
| Stocks |
| Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
| 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. |
| HYDRO WATER MANAGEMENT SOLUTIONS LTD (REGISTERED NUMBER: 08235828) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the 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 balance sheet date. |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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. |
| Hire purchase and leasing commitments |
| 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 company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
| Debtors |
| Short term debtors are measured at transaction price, less any impairment. |
| Creditors |
| Short term creditors are measured at transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
| Cash and cash equivalents |
| Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of the three month or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. |
| Provisions |
| Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation. |
| The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. |
| HYDRO WATER MANAGEMENT SOLUTIONS LTD (REGISTERED NUMBER: 08235828) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Going concern |
| The directors expect the company to continue operating on a going concern basis for the next 12 months.Thus the accounts have been prepared on a going concern basis. |
| Financial instruments |
| Financial instruments are recognised at fair value using a valuation technique with any gains or losses being reported in profit or loss. Outstanding derivatives at reporting date are included under the appropriate format heading depending on the nature of the derivative. |
| Bad debts |
| Unpaid amounts contractually due by customers relating to services supplied are written off to bad debts. |
| Dividends |
| Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. |
| 3. | EMPLOYEES AND DIRECTORS |
| 31.10.24 | 31.10.23 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| The average number of employees during the year was as follows: |
| 31.10.24 | 31.10.23 |
| Office & Management staff | 7 | 7 |
| Production & Sales staff | 13 | 15 |
| 31.10.24 | 31.10.23 |
| £ | £ |
| Directors' remuneration |
| Directors' pensions paid £132,000 (2023: £332,000) |
| 4. | OPERATING PROFIT |
| The operating profit is stated after charging: |
| 31.10.24 | 31.10.23 |
| £ | £ |
| Other operating leases |
| Depreciation - owned assets |
| Loss on disposal of fixed assets |
| Auditors' remuneration |
| Accountancy and professional fees |
| HYDRO WATER MANAGEMENT SOLUTIONS LTD (REGISTERED NUMBER: 08235828) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| 5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 31.10.24 | 31.10.23 |
| £ | £ |
| Bank loan interest |
| 6. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 31.10.24 | 31.10.23 |
| £ | £ |
| Current tax: |
| UK corporation tax |
| Deferred tax | ( |
) |
| Tax on profit |
| UK corporation tax has been charged at 25% . |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| 31.10.24 | 31.10.23 |
| £ | £ |
| Profit before tax |
| Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
| Effects of: |
| Expenses not deductible for tax purposes |
| Capital allowances in excess of depreciation | ( |
) | - |
| Depreciation in excess of capital allowances | - |
| Deferred tax movement | 293 | (838 | ) |
| Effects of changes in income tax rates | - | (23,239 | ) |
| Total tax charge | 374,733 | 209,975 |
| Change in corporation tax rate |
| UK corporation tax rate has increased from 19% to 25% from April 2023. |
| 7. | DIVIDENDS |
| 31.10.24 | 31.10.23 |
| £ | £ |
| Ordinary shares of £1 each |
| Interim |
| HYDRO WATER MANAGEMENT SOLUTIONS LTD (REGISTERED NUMBER: 08235828) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| 8. | TANGIBLE FIXED ASSETS |
| Fixtures |
| Plant and | and | Motor | Computer |
| Totals | machinery | fittings | vehicles | equipment |
| £ | £ | £ | £ | £ |
| COST |
| At 1 November 2023 |
| Additions |
| At 31 October 2024 |
| DEPRECIATION |
| At 1 November 2023 |
| Charge for year |
| At 31 October 2024 |
| NET BOOK VALUE |
| At 31 October 2024 |
| At 31 October 2023 |
| 9. | STOCKS |
| 31.10.24 | 31.10.23 |
| £ | £ |
| Stocks |
| Work-in-progress |
| 10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 31.10.24 | 31.10.23 |
| £ | £ |
| Trade debtors |
| Provisions for bad debt | (26,935 | ) | (114,303 | ) |
| VAT |
| Prepayments |
| 11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 31.10.24 | 31.10.23 |
| £ | £ |
| Bank loans and overdrafts (see note 13) |
| Trade creditors |
| Tax |
| Paye control account | 16,200 | 16,374 |
| CIS control account | - | 646 |
| Pension control | 3,417 | 3,529 |
| Directors' current accounts | 25,791 | 25,794 |
| Accruals and deferred income |
| HYDRO WATER MANAGEMENT SOLUTIONS LTD (REGISTERED NUMBER: 08235828) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| 12. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| 31.10.24 | 31.10.23 |
| £ | £ |
| Bank loans (see note 13) |
| 13. | LOANS |
| An analysis of the maturity of loans is given below: |
| 31.10.24 | 31.10.23 |
| £ | £ |
| Amounts falling due within one year or on demand: |
| Bank loans less than 1 yr |
| Amounts falling due between one and two years: |
| Bank loans - 1-2 years |
| The loans are carrying interest rates of between approximately 6% and 10%. |
| The Funding Circle loan repayment started on 24 November 2021. The outstanding balance must be repaid in full by 26 October 2025. |
| 14. | LEASING AGREEMENTS |
| Minimum lease payments under non-cancellable operating leases fall due as follows: |
| 31.10.24 | 31.10.23 |
| £ | £ |
| Within one year |
| Between one and five years |
| 15. | PROVISIONS FOR LIABILITIES |
| 31.10.24 | 31.10.23 |
| £ | £ |
| Deferred tax | 11,863 | 11,570 |
| Deferred |
| tax |
| £ |
| Balance at 1 November 2023 |
| Charge to Income Statement during year |
| Balance at 31 October 2024 |
| None of the deferred tax liability set out above is expected to reverse within 12 month of the balance sheet date. |
| The main rate of corporation tax has increased to 25% from 1 April 2023. The deferred tax liability has been calculated at this higher rate. |
| HYDRO WATER MANAGEMENT SOLUTIONS LTD (REGISTERED NUMBER: 08235828) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 OCTOBER 2024 |
| 16. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 31.10.24 | 31.10.23 |
| value: | £ | £ |
| Ordinary | £1 | 300 | 300 |
| Ordinary B | £1 | 3 | - |
| 303 | 300 |
| 3 Ordinary B shares of £1 each were allotted and fully paid for |
| 17. | RESERVES |
| Retained |
| earnings |
| £ |
| At 1 November 2023 |
| Profit for the year |
| Dividends | ( |
) |
| At 31 October 2024 |
| 18. | RELATED PARTY DISCLOSURES |
| During the year, total dividends of £740,379 were paid to the directors and the shareholders. |
| Included in creditors is an amount due to a director of the company amounting to £25,791 (2023: £25,794) and is interest free loan. |
| During the year £40,019 (2023: £64,747) was charged for rent, utilities and health and safety management fees by Taurus Enterprise (UK) Ltd, which has a common director. |
| Included within trade creditors is an amount owing to Taurus Enterprise (UK) Ltd £2,953 (2023: £0.00). |
| 19. | ULTIMATE CONTROLLING PARTY |
| The ultimate controlling party is Mr C Daws by virtue of his majority shareholding in the company. |
| 20. | SECURED DEBTS |
| The company has fixed and floating charges in favour of Marketinvoice Ltd to secure a factoring facility in case the company wants to use it. The floating charges cover all the property or undertakings of the company. |