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Registration number: 00638989

A. Hammond & Sons Limited

Annual Report and Financial Statements

for the Year Ended 31 October 2024

 

A. Hammond & Sons Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3 to 4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 8

Profit and Loss Account

9

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Financial Statements

14 to 24

 

A. Hammond & Sons Limited

Company Information

Directors

P L Hammond BSc (Hons)

C Eaton BSc (Hons)

M P Caldwell BA (Hons), FCA

B J Hobley

Registered office

Worton House
Church Street
Sturminster Newton
Dorset
DT10 1DB

Auditors

ML Audit LLP
Statutory Auditors
Motivo House
Bluebell Road
Yeovil
BA20 2FG

 

A. Hammond & Sons Limited

Strategic Report for the Year Ended 31 October 2024

The directors present their strategic report for the year ended 31 October 2024.

Principal activity

The principal activity of the company is that of a building contractor

Fair review of the business

During 1925 the business of Albert Hammond Carpenter & Joiner was established in premises in the Market Square, Sturminster Newton with a workshop and yard at the end of what is now the Church Street car park. Albert’s five sons gradually joined the expanding business, which by the outbreak of the Second World War in 1939 was trading as A Hammond & Sons Builders, Decorators, Carpenters & Joiners. By 1949 they had relocated to the current office in Church Street. A Hammond & Sons Ltd was incorporated on 7th October 1959 and is now managed by the third generation of the family.

A Hammond & Sons Ltd's principal objective is to provide excellent service, working collaboratively with clients to achieve successful project completions that exceed their expectations. During the year ending 31 October 2024 the company has been successful in increasing turnover working in both new build and refurbishment projects.

The company's key financial and other performance indicators during the year were as follows:

 

Unit

2024

2023

Turnover

£

14,955,310

14,372,486

Gross profit margin

%

14

14

Principal risks and uncertainties

The company has adequate facilities to meet short term fluctuations in cash flow. The business is usually profitable and is well established. Due to the prudent financial management of the directors, cash flow is well managed. The directors have reviewed the supply chains, key customers and the capital resources available and consider that the company has adequate resources in place to continue trading.

The directors recognise that good quality staff are one of the company’s greatest assets and therefore continue to invest in training and other measures so that staff retention is excellent. The company has achieved and maintains its ISO 90001 accreditation. We are proud that the quality of work that we produce enables us to fully meet and often exceed the needs and aspirations of our clients.

Approved and authorised by the Board on 17 July 2025 and signed on its behalf by:
 

.........................................
P L Hammond BSc (Hons)
Director

 

A. Hammond & Sons Limited

Directors' Report for the Year Ended 31 October 2024

The directors present their report and the financial statements for the year ended 31 October 2024.

Directors of the company

The directors who held office during the year were as follows:

P L Hammond BSc (Hons)

R J Pritchard FCIOB (resigned 28 March 2024)

C Eaton BSc (Hons)

M P Caldwell BA (Hons), FCA

B J Hobley

Financial instruments

Objectives and policies

The directors are responsible for monitoring financial risk. Appropriate policies have been developed and implemented to identify, evaluate and manage the key risks.

Price risk, credit risk, liquidity risk and cash flow risk

a) Price risk - The company is exposed to price risk as a result of its operations. However, given the size of the company's operations, the costs of managing exposure to price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature. The company has no exposures to equity securities price risk as it holds no listed or other equity investments.

b) Credit risk - The company has implemented policies that require appropriate credit checks on potential customers before sales are made. Credit customers are subject to limits which are determined and reassessed by the directors.

c) Liquidity risk - Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

d) Interest rate cash flow risk - The company has no interest bearing liabilities and therefore this is not considered to be a risk at this time.

Future developments

We have a strong order book for 2025 and hope to responsibly improve upon our growth.

Directors' liabilities

There is, in place third party indemnity provisions in force for the benefit of the directors and officers of the company.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

The auditors ML Audit LLP are deemed to be reappointed under section 487(2) of the Companies Act 2006.

 

A. Hammond & Sons Limited

Directors' Report for the Year Ended 31 October 2024

Approved by the Board on 17 July 2025 and signed on its behalf by:

P L Hammond BSc (Hons)
Director

   
     
 

A. Hammond & Sons Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and 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.

 

A. Hammond & Sons Limited

Independent Auditor's Report to the Members of A. Hammond & Sons Limited

Opinion

We have audited the financial statements of A. Hammond & Sons Limited (the 'company') for the year ended 31 October 2024, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 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

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

A. Hammond & Sons Limited

Independent Auditor's Report to the Members of A. Hammond & Sons Limited

We have nothing to report in this regard.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 5, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor Responsibilities for the audit of the financial statements

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

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework;

 

A. Hammond & Sons Limited

Independent Auditor's Report to the Members of A. Hammond & Sons Limited

inquired of management, and those charged with governance, about their own identification and assessment of the risks or irregularities, including known and actual, suspected or alleged instances of fraud;

discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud; and

reviewed journals processed in the accounting system to identify any that were not consistent with our understanding or expectations of the business or represented unusual transactions not entered into in the normal course of business.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity’s operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

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

Use of our report

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

......................................
Mr Robert Cadwallader (Senior Statutory Auditor)
For and on behalf of ML Audit LLP, Statutory Auditor
Motivo House
Bluebell Road
Yeovil
BA20 2FG

22 July 2025

 

A. Hammond & Sons Limited

Profit and Loss Account for the Year Ended 31 October 2024

Note

2024
£

2023
£

Turnover

3

14,955,310

14,372,486

Cost of sales

 

(12,834,469)

(12,358,487)

Gross profit

 

2,120,841

2,013,999

Administrative expenses

 

(1,709,779)

(1,676,023)

Other operating income

4

62,819

59,712

Operating profit

6

473,881

397,688

Other interest receivable and similar income

7

76,405

68,977

Profit before tax

 

550,286

466,665

Tax on profit

11

(137,997)

(106,195)

Profit for the financial year

 

412,289

360,470

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

A. Hammond & Sons Limited

Statement of Comprehensive Income for the Year Ended 31 October 2024

2024
£

2023
£

Profit for the year

412,289

360,470

Total comprehensive income for the year

412,289

360,470

 

A. Hammond & Sons Limited

(Registration number: 00638989)
Balance Sheet as at 31 October 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

12

2,171,253

644,388

Investment property

13

965,000

965,000

 

3,136,253

1,609,388

Current assets

 

Stocks

14

188,140

72,755

Debtors

15

3,248,636

3,694,283

Cash at bank and in hand

16

2,364,084

3,014,352

 

5,800,860

6,781,390

Creditors: Amounts falling due within one year

17

(2,527,276)

(2,223,210)

Net current assets

 

3,273,584

4,558,180

Total assets less current liabilities

 

6,409,837

6,167,568

Provisions for liabilities

18

(56,341)

(49,361)

Net assets

 

6,353,496

6,118,207

Capital and reserves

 

Called up share capital

20

4,500

4,500

Capital redemption reserve

500

500

Revaluation reserve

368,600

378,300

Other reserves

133,132

133,132

Profit and loss account

5,846,764

5,601,775

Total equity

 

6,353,496

6,118,207

Approved and authorised by the Board on 17 July 2025 and signed on its behalf by:
 

P L Hammond BSc (Hons)
Director

   
     
 

A. Hammond & Sons Limited

Statement of Changes in Equity for the Year Ended 31 October 2024

Share capital
£

Capital redemption reserve
£

Revaluation reserve
£

Other reserves
£

Retained earnings
£

Total
£

At 1 November 2023

4,500

500

378,300

133,132

5,601,775

6,118,207

Profit for the year

-

-

-

-

412,289

412,289

Dividends

-

-

-

-

(177,000)

(177,000)

Transfers

-

-

(9,700)

-

9,700

-

At 31 October 2024

4,500

500

368,600

133,132

5,846,764

6,353,496

Share capital
£

Capital redemption reserve
£

Revaluation reserve
£

Other reserves
£

Retained earnings
£

Total
£

At 1 November 2022

4,500

500

388,000

138,245

5,376,492

5,907,737

Profit for the year

-

-

-

-

360,470

360,470

Dividends

-

-

-

-

(150,000)

(150,000)

Transfers

-

-

(9,700)

(5,113)

14,813

-

At 31 October 2023

4,500

500

378,300

133,132

5,601,775

6,118,207

 

A. Hammond & Sons Limited

Statement of Cash Flows for the Year Ended 31 October 2024

Note

2024
£

2023
£

Cash flows from operating activities

Profit for the year

 

412,289

360,470

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

6

76,722

68,638

Changes in fair value of investment property

13

-

2,415

Profit on disposal of tangible assets

5

(13,582)

(10,105)

Finance income

7

(76,405)

(68,977)

Income tax expense

11

137,997

106,195

 

537,021

458,636

Working capital adjustments

 

(Increase)/decrease in stocks

14

(115,385)

150,229

Decrease in trade debtors

15

445,647

279,307

Increase/(decrease) in trade creditors

17

275,358

(143,066)

Cash generated from operations

 

1,142,641

745,106

Income taxes paid

11

(102,309)

(44,396)

Net cash flow from operating activities

 

1,040,332

700,710

Cash flows from investing activities

 

Interest received

7

76,405

68,977

Acquisitions of tangible assets

(1,645,024)

(116,283)

Proceeds from sale of tangible assets

 

55,019

26,380

Net cash flows from investing activities

 

(1,513,600)

(20,926)

Cash flows from financing activities

 

Dividends paid

22

(177,000)

(150,000)

Net (decrease)/increase in cash and cash equivalents

 

(650,268)

529,784

Cash and cash equivalents at 1 November

 

3,014,352

2,484,568

Cash and cash equivalents at 31 October

 

2,364,084

3,014,352

 

A. Hammond & Sons Limited

Notes to the Financial Statements for the Year Ended 31 October 2024

1

General information

The company is a private company limited by share capital, incorporated in England & Wales.

The address of its registered office is:
Worton House
Church Street
Sturminster Newton
Dorset
DT10 1DB
United Kingdom

These financial statements were authorised for issue by the Board on 17 July 2025.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are prepared in sterling, which is the functional currency of the company, and rounded to the nearest £.

Going concern

The financial statements have been prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

When the outcome of a construction contract can be estimated reliably, the company recognises contract revenue and contract costs associated with the construction contract as revenue and expenses respectively by reference to the stage of completion of the contract activity at the end of the reporting period.

 

A. Hammond & Sons Limited

Notes to the Financial Statements for the Year Ended 31 October 2024

Tax

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

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

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the Balance Sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold land and buildings

2% straight line

Plant and machinery

20% reducing balance

Fixtures and fittings

15% reducing balance

Motor vehicles

25% reducing balance

Investment property

In accordance with the requirements of FRS102, investment properties owned by the company are stated at their open market value at the balance sheet date and any aggregate surplus or deficit is transferred to the profit and loss reserve.

The valuation was made by an independent valuer who holds a recognised professional qualification and has recent experience in the location and class of the investment property valued.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

 

A. Hammond & Sons Limited

Notes to the Financial Statements for the Year Ended 31 October 2024

Debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Raw materials are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks 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.

Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

A dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

A. Hammond & Sons Limited

Notes to the Financial Statements for the Year Ended 31 October 2024

3

Turnover

The analysis of the company's Turnover for the year from continuing operations is as follows:

2024
£

2023
£

Rendering of services

14,955,310

14,372,486

All sales are to customers located in the UK.

The amount of contract revenue recognised as Turnover in the year was £14,955,310 (2023 - £14,372,486).
Contract revenue is recognised based upon the company applying an estimated profit margin to be obtained on individual contracts against costs incurred on the individual contract to date.
Stage of completion is determined by costs incurred to date on individual contracts compared against total expected costs on that contract.

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2024
£

2023
£

Sub lease rental income

62,800

58,373

Miscellaneous other operating income

19

1,339

62,819

59,712

5

Other gains and losses

The analysis of the company's other gains and losses for the year is as follows:

2024
£

2023
£

Gain on disposal of Tangible assets

13,582

10,105

Loss from sales of investment properties

-

(2,415)

13,582

7,690

6

Operating profit

Arrived at after charging/(crediting):

2024
£

2023
£

Depreciation expense

76,722

68,638

Profit on disposal of property, plant and equipment

(13,582)

(10,105)

 

A. Hammond & Sons Limited

Notes to the Financial Statements for the Year Ended 31 October 2024

7

Other interest receivable and similar income

2024
£

2023
£

Interest income on bank deposits

76,390

68,977

Other finance income

15

-

76,405

68,977

8

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

1,985,677

1,826,779

Social security costs

224,104

204,605

Pension costs, defined contribution scheme

163,866

277,559

Redundancy costs

-

4,015

Other employee expense

14,779

9,696

2,388,426

2,322,654

The average number of persons employed by the company (including directors) during the year, analysed by category, was as follows:

2024
No.

2023
No.

Production

5

5

Administration and support

17

17

Other departments

17

16

39

38

9

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

417,276

421,643

Contributions paid to money purchase schemes

93,423

216,082

510,699

637,725

During the year the number of directors who were receiving benefits and share incentives was as follows:

2024
No.

2023
No.

Accruing benefits under money purchase pension scheme

5

5

 

A. Hammond & Sons Limited

Notes to the Financial Statements for the Year Ended 31 October 2024

In respect of the highest paid director:

2024
£

2023
£

Remuneration

125,579

69,465

Company contributions to money purchase pension schemes

4,236

150,000

10

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

9,975

9,500


 

11

Taxation

Tax charged/(credited) in the income statement:

2024
£

2023
£

Current taxation

UK corporation tax

131,017

102,308

Deferred taxation

Arising from origination and reversal of timing differences

6,980

3,887

Tax expense in the income statement

137,997

106,195

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of 25% (2023 - 22.52%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

550,286

466,665

Corporation tax at standard rate

137,572

105,083

Tax increase from effect of capital allowances and depreciation

-

655

Tax decrease from other short-term timing differences

-

(278)

Effect of expense not deductible in determining taxable profit (tax loss)

425

735

Total tax charge

137,997

106,195

Deferred tax

Deferred tax assets and liabilities

 

A. Hammond & Sons Limited

Notes to the Financial Statements for the Year Ended 31 October 2024

2024

Asset
£

Liability
£

Accelerated capital allowances

-

62,581

Other short-term timing differences

6,240

-

6,240

62,581

2023

Asset
£

Liability
£

Accelerated capital allowances

-

55,539

Other short-term timing differences

6,178

-

6,178

55,539

12

Tangible assets

Freehold
land and
buildings
 £

Plant and machinery
 £

Fixtures
and
fittings
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 November 2023

521,938

484,469

134,189

323,745

1,464,341

Additions

1,499,613

20,050

5,600

119,761

1,645,024

Disposals

-

(225,008)

(115,809)

(39,359)

(380,176)

At 31 October 2024

2,021,551

279,511

23,980

404,147

2,729,189

Depreciation

At 1 November 2023

108,563

438,522

123,117

149,751

819,953

Charge for the year

10,439

14,453

1,843

49,987

76,722

Eliminated on disposal

-

(222,170)

(110,210)

(6,359)

(338,739)

At 31 October 2024

119,002

230,805

14,750

193,379

557,936

Carrying amount

At 31 October 2024

1,902,549

48,706

9,230

210,768

2,171,253

At 31 October 2023

413,375

45,947

11,072

173,994

644,388

Included within the net book value of land and buildings above is £1,902,549 (2023 - £413,375) in respect of freehold land and buildings.
 


Revaluation
The company elected to transfer its freehold property at deemed cost upon transition to FRS 102. Therefore, no subsequent revaluations have been obtained.

 

A. Hammond & Sons Limited

Notes to the Financial Statements for the Year Ended 31 October 2024

13

Investment properties

2024
£

At 1 November

965,000

At 31 October

965,000


The investment properties were valued by Vail Williams LLP who are external to the company during May 2024.

In the opinion of the directors there is no material difference in value of the investment properties between May 2024 and 31 October 2024.

Had this class of asset been measured on a historical cost basis, the carrying amount would have been £831,868 (2023 - £831,868).

14

Stocks

2024
£

2023
£

Raw materials and consumables

6,906

5,948

Work in progress

181,234

66,807

188,140

72,755

15

Debtors

Current

Note

2024
£

2023
£

Trade debtors

 

913,118

1,347,251

Amounts owed by related parties

23

2,101,689

2,075,932

Other debtors

 

318

172

Prepayments

 

27,613

23,364

Gross amount due from customers for contract work

 

205,898

247,564

   

3,248,636

3,694,283

16

Cash and cash equivalents

2024
£

2023
£

Cash on hand

84

532

Cash at bank

2,364,000

1,051,027

Short-term deposits

-

1,962,793

2,364,084

3,014,352

 

A. Hammond & Sons Limited

Notes to the Financial Statements for the Year Ended 31 October 2024

17

Creditors

Note

2024
£

2023
£

Due within one year

 

Trade creditors

 

1,468,621

1,254,505

Social security and other taxes

 

517,633

365,746

Outstanding defined contribution pension costs

 

30,023

9,099

Other creditors

 

59,125

82,635

Accruals

 

79,074

91,259

Corporation tax liability

11

131,017

102,309

Payments in advance

 

241,783

317,657

 

2,527,276

2,223,210

18

Provisions for liabilities

Deferred tax
£

Total
£

At 1 November 2023

49,361

49,361

Increase (decrease) in existing provisions

6,980

6,980

At 31 October 2024

56,341

56,341

19

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £163,866 (2023 - £277,559).

Contributions totalling £30,023 (2023 - £9,099) were payable to the scheme at the end of the year and are included in creditors.

 

A. Hammond & Sons Limited

Notes to the Financial Statements for the Year Ended 31 October 2024

20

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary shares of £1 each

4,500

4,500

4,500

4,500

       

Rights, preferences and restrictions

Ordinary shares have the following rights, preferences and restrictions:
- Each share is entitled to one vote at all general meetings of the company and on a written resolution.
- Each share is entitled to dividends, to be paid as the company may determine, and each share has equal rights to dividends.
- Each share is entitled to equal rights, a return of capital on liquidation or otherwise.
- The shares are non-redeemable.

21

Obligations under leases and hire purchase contracts

Operating leases - lessor

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

19,260

19,260

Later than one year and not later than five years

77,040

77,040

Later than five years

79,448

98,708

175,748

195,008


The company leases out one property under an operating lease arrangement. This lease is less than 15 years in term and does not include an option to purchase.

The total rent received by the company from operating leases during the year was £19,260. This amount is included in other operating income presented in the profit and loss account.

The company’s leasing arrangements include standard maintenance and renewal clauses but do not impose significant restrictions on the use of the leased assets.

22

Dividends

2024

2023

£

£

Interim dividend of £39.33 (2023 - £33.33) per ordinary share

177,000

150,000

 

 
 

A. Hammond & Sons Limited

Notes to the Financial Statements for the Year Ended 31 October 2024

23

Related party transactions

Summary of transactions with other related parties

During the year the company continued to make available a loan to another company, of which P Hammond and B Hobley are directors. The loan is interest free and repayable on demand. At the balance sheet date the amount due to A. Hammond & Sons Limited was £2,101,689 (2023 - £2,075,932).