Company registration number 1585495 (England and Wales)
B. HEPWORTH AND COMPANY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
B. HEPWORTH AND COMPANY LIMITED
COMPANY INFORMATION
Directors
J Eddy
A Eddy
Secretary
J Eddy
Company number
1585495
Registered office
4 Merse Road
Moons Moat North Industrial Estate
Redditch
Worcestershire
B98 9HL
Auditor
BK Plus Audit Limited
Azzurri House
Walsall Road
Aldridge
Walsall
WS9 0RB
B. HEPWORTH AND COMPANY LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 35
B. HEPWORTH AND COMPANY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 1 -
The directors present the strategic report for the year ended 31 March 2025.
Review of the business
During the financial year, B Hepworth and Company Ltd continued to focus on its core expertise in designing, manufacturing, and marketing windscreen wiper systems for commercial vehicles, marine vessels, and the rail industry globally. Despite a challenging macroeconomic environment, the group maintained operational resilience and continued to serve its long-standing customer base effectively.
While trading conditions were affected by inflationary pressures and supply chain disruptions, the business responded with proactive cost control and operational agility. These measures helped maintain business continuity and customer satisfaction, setting a foundation for future growth.
Investment in Research and Development remained a key strategic priority, with the group advancing efforts to innovate new products and improve production processes. These developments align closely with the group’s long-term strategy of enhancing product quality, technological advancement, and market diversification.
Principal risks and uncertainties
The market for windscreen wiper systems remains competitive. To manage this, the group continues to build strong customer relationships, offer responsive service, and ensure local representation in key regions.
Exposure to currency fluctuations, mainly USD and EUR, is managed through daily exchange rate monitoring and adjustments to the pricing systems. Credit risk is addressed through robust credit checks, regular payment monitoring, and insurance where applicable.
Working capital is managed through a revolving credit facility and an invoice discounting facility, both renewed in May 2024. These facilities are actively monitored, and the Directors remain confident in the company’s liquidity and financial stability.
Key performance indicators
The group's key financial performance (KPIs) are turnover, gross margin, EBITDA, and cash generation for continuing operations.
Turnover: Increased by 4.2% to £17,722,820 (2024: £17,010,346).
Gross Margin: Decreased from 33.60% to 30.7%, totalling £5,440,874 (2024: £5,710,205).
Net Assets: At year-end, the group reported net assets of £4,139,164 (2024: £4,354,761).
In parallel, the group monitors a range of non-financial KPIs such as product quality and customer satisfaction. Maintaining high product standards and dependable service levels continues to be vital for the group’s reputation and market position.
B. HEPWORTH AND COMPANY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 2 -
Other information and explanations
Looking forward, the group is well-placed to benefit from growth opportunities across both domestic and export markets. Strategic investments in advanced manufacturing technologies are expected to deliver improvements in efficiency and cost competitiveness, reinforcing long-term profitability.
The group's commitment to innovation—particularly in support of evolving requirements across the marine, rail, and defence sectors—positions it to capture value in high-specification, technically advanced product segments.
While FY2024–2025 presented headwinds, the actions taken during the year have built operational strength and strategic flexibility. The Directors remain confident that the business is on a firm path to sustained growth, driven by a clear vision, an experienced team, and a growing demand pipeline.
J Eddy
Director
5 August 2025
B. HEPWORTH AND COMPANY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 3 -
The directors present their annual report and financial statements for the year ended 31 March 2025.
Principal activities
The principal activity of the group continued to be that of designing, manufacturing and marketing windscreen wiper systems for commercial vehicles, marine vessels and rail industries worldwide.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £120,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
J Eddy
A Eddy
Research and development
The group continues to invest in research and development activities to maintain its competitive advantage and respond to evolving customer needs.
Future developments
Details of the future developments can be found in the strategic report on page 3 of this annual report.
Auditor
BK Plus Audit Limited were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Strategic report
The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
B. HEPWORTH AND COMPANY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 4 -
On behalf of the board
J Eddy
Director
5 August 2025
B. HEPWORTH AND COMPANY LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2025
- 5 -
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 group and company, 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 UK 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 group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
B. HEPWORTH AND COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF B. HEPWORTH AND COMPANY LIMITED
- 6 -
Opinion
We have audited the financial statements of B. Hepworth and Company Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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 the parent company's affairs as at 31 March 2025 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
B. HEPWORTH AND COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF B. HEPWORTH AND COMPANY LIMITED
- 7 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept 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 directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
From the preliminary of the audit, we ensure our understanding of the entity is up to date. This includes, but is not limited to, current knowledge of their activities, the business and control environments, and their compliance with the applicable legal and regulatory frameworks. This information supports our risk identification and the subsequent design of audit procedures to mitigate those risks; ensuring that the audit evidence obtained is sufficient and appropriate to support our opinion.
In response to the risks identified, specific to this entity, we designed procedures which included, but were not limited to:
Enquiry of management and those charged with governance around actual and potential litigation and claims;
Reviewing minutes of meetings of those charged with governance, if available;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale for significant transactions outside the normal course of business.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
B. HEPWORTH AND COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF B. HEPWORTH AND COMPANY LIMITED
- 8 -
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.
Keval Dattani ACA (Senior Statutory Auditor)
For and on behalf of BK Plus Audit Limited, Statutory Auditor
Chartered Certified Accountants
Azzurri House
Walsall Road
Aldridge
Walsall
WS9 0RB
5 August 2025
B. HEPWORTH AND COMPANY LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2025
- 9 -
2025
2024
Notes
£
£
Turnover
3
17,722,820
17,010,347
Cost of sales
(12,281,947)
(11,300,141)
Gross profit
5,440,873
5,710,206
Distribution costs
(1,705,280)
(1,718,527)
Administrative expenses
(3,785,235)
(3,498,395)
Other operating income
142,259
146,740
Operating profit
5
92,617
640,024
Interest payable and similar expenses
8
(76,007)
(70,829)
Profit before taxation
16,610
569,195
Tax on profit
9
5,974
100,000
Profit for the financial year
25
22,584
669,195
Profit for the financial year is all attributable to the owners of the parent company.
B. HEPWORTH AND COMPANY LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
- 10 -
2025
2024
£
£
Profit for the year
22,584
669,195
Other comprehensive income
Currency translation loss taken to retained earnings
(11,906)
Cash flow hedges gain arising in the year
Total comprehensive income for the year
10,678
669,195
Total comprehensive income for the year is all attributable to the owners of the parent company.
B. HEPWORTH AND COMPANY LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2025
31 March 2025
- 11 -
2025
2024
Notes
£
£
£
£
Fixed assets
Goodwill
12
2,492
42,782
Tangible assets
13
982,925
702,175
985,417
744,957
Current assets
Stocks
16
3,114,423
3,293,502
Debtors
17
3,017,488
3,463,615
Cash at bank and in hand
348,647
167,280
6,480,558
6,924,397
Creditors: amounts falling due within one year
18
(2,828,869)
(3,314,593)
Net current assets
3,651,689
3,609,804
Total assets less current liabilities
4,637,106
4,354,761
Creditors: amounts falling due after more than one year
19
(391,667)
-
Net assets
4,245,439
4,354,761
Capital and reserves
Called up share capital
23
85,020
85,020
Share premium account
24
61,452
61,452
Profit and loss reserves
25
4,098,967
4,208,289
Total equity
4,245,439
4,354,761
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved by the board of directors and authorised for issue on 5 August 2025 and are signed on its behalf by:
05 August 2025
J Eddy
Director
Company registration number 1585495 (England and Wales)
B. HEPWORTH AND COMPANY LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2025
31 March 2025
- 12 -
2025
2024
Notes
£
£
£
£
Fixed assets
Goodwill
12
157,247
194,329
Tangible assets
13
980,630
699,536
Investments
14
13,874
13,874
1,151,751
907,739
Current assets
Stocks
16
2,823,293
3,019,437
Debtors
17
2,961,988
3,386,207
Cash at bank and in hand
334,708
160,606
6,119,989
6,566,250
Creditors: amounts falling due within one year
18
(2,828,869)
(3,314,423)
Net current assets
3,291,120
3,251,827
Total assets less current liabilities
4,442,871
4,159,566
Creditors: amounts falling due after more than one year
19
(391,667)
-
Net assets
4,051,204
4,159,566
Capital and reserves
Called up share capital
23
85,020
85,020
Share premium account
24
61,452
61,452
Profit and loss reserves
25
3,904,732
4,013,094
Total equity
4,051,204
4,159,566
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £11,638 (2024 - £660,865 profit).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 5 August 2025 and are signed on its behalf by:
05 August 2025
J Eddy
Director
Company registration number 1585495 (England and Wales)
B. HEPWORTH AND COMPANY LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
- 13 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2023
85,020
61,452
3,539,094
3,685,566
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
669,195
669,195
Balance at 31 March 2024
85,020
61,452
4,208,289
4,354,761
Year ended 31 March 2025:
Profit for the year
-
-
22,584
22,584
Other comprehensive income:
Currency translation differences
-
-
(11,906)
(11,906)
Total comprehensive income
-
-
10,678
10,678
Dividends
10
-
-
(120,000)
(120,000)
Balance at 31 March 2025
85,020
61,452
4,098,967
4,245,439
B. HEPWORTH AND COMPANY LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
- 14 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2023
85,020
61,452
3,352,230
3,498,702
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
-
660,864
660,864
Balance at 31 March 2024
85,020
61,452
4,013,094
4,159,566
Year ended 31 March 2025:
Profit and total comprehensive income
-
-
11,638
11,638
Dividends
10
-
-
(120,000)
(120,000)
Balance at 31 March 2025
85,020
61,452
3,904,732
4,051,204
B. HEPWORTH AND COMPANY LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2025
- 15 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
511,898
545,172
Interest paid
(76,007)
(70,829)
Income taxes paid
(302)
Net cash inflow from operating activities
435,589
474,343
Investing activities
Purchase of tangible fixed assets
(2,842)
(92,066)
Proceeds from disposal of tangible fixed assets
17,550
-
Net cash generated from/(used in) investing activities
14,708
(92,066)
Financing activities
Repayment of overdraft
-
329,916
Repayment of bank loans
-
(156,762)
Payment of finance leases obligations
(137,024)
(121,657)
Dividends paid to equity shareholders
(120,000)
Net cash (used in)/generated from financing activities
(257,024)
51,497
Net increase in cash and cash equivalents
193,273
433,774
Cash and cash equivalents at beginning of year
167,280
(266,494)
Effect of foreign exchange rates
(11,906)
Cash and cash equivalents at end of year
348,647
167,280
B. HEPWORTH AND COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
- 16 -
1
Accounting policies
Company information
B. Hepworth and Company Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 4, Merse Road, Moons Moat North Industrial Estate, Redditch, England, B98 9HL.
The group consists of B. Hepworth and Company Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
B. HEPWORTH AND COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 17 -
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company B. Hepworth and Company Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 March 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
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 of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
1.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.5
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
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.
B. HEPWORTH AND COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 18 -
1.6
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.7
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which are 10 and 20 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.8
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
in accordance with property lease
Plant and equipment
20% on reducing balance
Motor vehicles
25% on reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
1.9
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
B. HEPWORTH AND COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 19 -
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.10
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
B. HEPWORTH AND COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 20 -
1.11
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost 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.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
The company's stock valuation policy is to recognise obsolete or slow-moving stock as 5% of total stock value. This is based on management's assessment of the age and condition of stock and historical trends.
Dispatch, work in progress and made in stock are stated at average cost, being the average last cost price.
Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.
1.12
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.13
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, 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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
B. HEPWORTH AND COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 21 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares 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.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
B. HEPWORTH AND COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 22 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.14
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.15
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.16
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.17
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
B. HEPWORTH AND COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 23 -
1.18
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
1.19
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the 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.
B. HEPWORTH AND COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
2
Judgements and key sources of estimation uncertainty
(Continued)
- 24 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Stock
The valuation of stock involves a degree of estimation and judgement by management. This includes assessing the net realisable value of stock and determining appropriate provision for obsolete or slow-moving stock or which may not be used going forward and which may therefore realise less than their full cost.
It is the company's policy to recognises stock obsolescence provision of 5% of total stock value. This is based on historical trends, stock turnover rates, and management's expectation of future sales. The provision included in these financial statements for slow moving and obsolete stock is £148,594 (2024: £146,965).
Useful economic life of non current assets
Management estimate the useful economic life of non-current assets based on the period over which the asset is expected to be used and provide for depreciation accordingly. Where an indication of impairment is identified the estimation of recoverable value requires estimation. No factors have arisen that give indication of an impairment, as at the year ended 31 March 2025.
Deferred taxation
Management estimation is required to determine the amount of deferred tax asset that can be recognised, based upon likely timing and level of future taxable profits.
Forecasts and monthly management accounts are utilised in determining the likelihood of future taxable profits. At the year end management has determined that profits will not be available in the next 12 months and therefore no deferred tax asset in relation to unutilised losses has been provided for.
3
Turnover and other revenue
2025
2024
£
£
Turnover analysed by class of business
Design and manufacture of wind screen wiper systems
17,722,820
17,010,347
2025
2024
£
£
Turnover analysed by geographical market
United Kingdom
6,160,115
5,899,630
Europe
4,848,002
4,649,330
Rest of the World
6,714,703
6,461,387
17,722,820
17,010,347
2025
2024
£
£
Other revenue
142,259
146,740
B. HEPWORTH AND COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 25 -
4
Exceptional item
2025
2024
£
£
Expenditure
Exceptional item - Admin costs (incl in Admin range)
106,491
29,981
5
Operating profit
2025
2024
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(110,409)
(85)
Research and development costs
159,225
228,021
Fees payable to the group's auditor for the audit of the group's financial statements
13,500
20,000
Depreciation of owned tangible fixed assets
337,825
210,491
Depreciation of tangible fixed assets held under finance leases
8,672
68,233
Profit on disposal of tangible fixed assets
(17,550)
-
Amortisation of intangible assets
40,290
58,824
Stocks impairment losses recognised or reversed
1,629
(61,496)
Operating lease charges
509,823
510,110
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2025
2024
2025
2024
Number
Number
Number
Number
Production
81
79
81
79
Administration
44
49
44
49
Management
3
5
3
5
Total
128
133
128
133
Their aggregate remuneration comprised:
Group
Company
2025
2024
2025
2024
£
£
£
£
Wages and salaries
5,288,978
4,740,287
5,163,910
4,613,976
Social security costs
555,611
479,071
545,583
468,911
Pension costs
231,504
227,780
218,997
215,149
6,076,093
5,447,138
5,928,490
5,298,036
B. HEPWORTH AND COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 26 -
7
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
1,084,394
737,192
Company pension contributions to defined contribution schemes
36,000
36,000
1,120,394
773,192
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2024 - 1).
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2025
2024
£
£
Remuneration for qualifying services
847,473
623,065
Company pension contributions to defined contribution schemes
36,000
36,000
8
Interest payable and similar expenses
2025
2024
£
£
Interest on bank overdrafts and loans
5,616
6,392
Interest on invoice finance arrangements
67,855
52,311
Interest on finance leases and hire purchase contracts
2,536
12,126
Total finance costs
76,007
70,829
9
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
(44,404)
Foreign current tax on profits for the current period
302
Total current tax
(44,102)
Deferred tax
Origination and reversal of timing differences
(100,000)
Tax losses carried forward
38,128
Total deferred tax
38,128
(100,000)
Total tax credit
(5,974)
(100,000)
B. HEPWORTH AND COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
9
Taxation
(Continued)
- 27 -
The actual credit for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2025
2024
£
£
Profit before taxation
16,610
569,195
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
4,153
142,299
Tax effect of expenses that are not deductible in determining taxable profit
27,516
Change in unrecognised deferred tax assets
(138,166)
Permanent capital allowances in excess of depreciation
-
14,836
Depreciation on assets not qualifying for tax allowances
41
-
Amortisation on assets not qualifying for tax allowances
10,073
Research and development tax credit
(44,404)
(116,157)
Other permanent differences
95
Effect of overseas tax rates
(3,353)
(2,907)
Taxation credit
(5,974)
(100,000)
10
Dividends
2025
2024
Recognised as distributions to equity holders:
£
£
Final paid
120,000
-
11
Impairments
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
2025
2024
Notes
£
£
In respect of:
Stocks
16
1,629
-
Recognised in:
Cost of sales
1,629
-
B. HEPWORTH AND COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
11
Impairments
(Continued)
- 28 -
Reversals of previous impairment losses have been recognised in profit or loss as follows:
2025
2024
Notes
£
£
In respect of:
Stocks
16
-
61,496
Recognised in:
Cost of sales
-
61,496
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 April 2024 and 31 March 2025
935,835
Amortisation and impairment
At 1 April 2024
893,053
Amortisation charged for the year
40,290
At 31 March 2025
933,343
Carrying amount
At 31 March 2025
2,492
At 31 March 2024
42,782
Company
Goodwill
£
Cost
At 1 April 2024 and 31 March 2025
869,955
Amortisation and impairment
At 1 April 2024
675,626
Amortisation charged for the year
37,082
At 31 March 2025
712,708
Carrying amount
At 31 March 2025
157,247
At 31 March 2024
194,329
B. HEPWORTH AND COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 29 -
13
Tangible fixed assets
Group
Leasehold land and buildings
Plant and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2024
428,870
4,854,801
43,866
5,327,537
Additions
2,080
625,167
627,247
Disposals
(377,301)
(43,866)
(421,167)
At 31 March 2025
430,950
5,102,667
5,533,617
Depreciation and impairment
At 1 April 2024
407,754
4,173,742
43,866
4,625,362
Depreciation charged in the year
4,920
341,577
346,497
Eliminated in respect of disposals
(377,301)
(43,866)
(421,167)
At 31 March 2025
412,674
4,138,018
4,550,692
Carrying amount
At 31 March 2025
18,276
964,649
982,925
At 31 March 2024
21,116
681,059
702,175
Company
Leasehold land and buildings
Plant and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2024
428,870
4,733,281
43,866
5,206,017
Additions
2,080
624,405
626,485
Disposals
(366,805)
(43,866)
(410,671)
At 31 March 2025
430,950
4,990,881
5,421,831
Depreciation and impairment
At 1 April 2024
407,754
4,054,861
43,866
4,506,481
Depreciation charged in the year
4,920
340,471
345,391
Eliminated in respect of disposals
(366,805)
(43,866)
(410,671)
At 31 March 2025
412,674
4,028,527
4,441,201
Carrying amount
At 31 March 2025
18,276
962,354
980,630
At 31 March 2024
21,116
678,420
699,536
B. HEPWORTH AND COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
13
Tangible fixed assets
(Continued)
- 30 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2025
2024
2025
2024
£
£
£
£
Plant and equipment
573,153
25,037
573,153
25,037
Freehold land and buildings with a carrying amount of £18,276 (2024 - £21,116) have been pledged to secure borrowings of the company. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.
14
Fixed asset investments
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Investments in subsidiaries
15
13,874
13,874
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2024 and 31 March 2025
13,874
Carrying amount
At 31 March 2025
13,874
At 31 March 2024
13,874
15
Subsidiaries
Details of the company's subsidiaries at 31 March 2025 are as follows:
Name of undertaking
Address
Class of
% Held
shares held
Direct
Window Wipers Technology Inc.
1
Ordinary
100.00
Monitor Marine Limited
2
Ordinary
100.00
Registered office addresses (all UK unless otherwise indicated):
1
800 Flanders Road, Unit 1-1, Mystic, CT 06355, United States
2
2-4 Merse Road, North Moons Moat, Redditch, Worcestershire, B98 9HL
Monitor Marine Limited is a dormant company incorporated in England.
B. HEPWORTH AND COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 31 -
16
Stocks
Group
Company
2025
2024
2025
2024
£
£
£
£
Raw materials and consumables
2,745,835
2,991,350
2,454,705
2,717,285
Work in progress
283,566
185,920
283,566
185,920
Finished goods and goods for resale
85,022
116,232
85,022
116,232
3,114,423
3,293,502
2,823,293
3,019,437
Stock includes an impairment provision of £148,494 (2024: 146,965) in respect of slow moving and obsolete stocks.
17
Debtors
Group
Company
2025
2024
2025
2024
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,345,804
3,057,290
2,297,656
2,972,980
Corporation tax recoverable
44,404
44,404
Amounts owed by group undertakings
-
-
-
11,719
Other debtors
357,761
73,587
350,409
68,770
Prepayments and accrued income
207,647
232,738
207,647
232,738
2,955,616
3,363,615
2,900,116
3,286,207
Deferred tax asset (note 21)
61,872
100,000
61,872
100,000
3,017,488
3,463,615
2,961,988
3,386,207
18
Creditors: amounts falling due within one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Obligations under finance leases
20
100,000
4,286
100,000
4,286
Trade creditors
1,622,523
1,489,138
1,622,523
1,488,968
Other taxation and social security
159,849
157,714
159,849
157,714
Other creditors
831,159
1,570,153
831,159
1,570,153
Accruals and deferred income
115,338
93,302
115,338
93,302
2,828,869
3,314,593
2,828,869
3,314,423
Included within other creditors is a balance of £811,381 relating to an invoice discounting facility secured by a debenture with Santander UK plc, dated 25/10/2018. This is secured on a fixed and floating charge over the company's property and assets.
Finance leases are secured on the assets which they relate to.
B. HEPWORTH AND COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 32 -
19
Creditors: amounts falling due after more than one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Obligations under finance leases
20
391,667
391,667
Finance leases are secured on the assets which they relate to.
20
Finance lease obligations
Group
Company
2025
2024
2025
2024
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
117,462
4,471
117,462
4,471
In two to five years
461,446
461,446
578,908
4,471
578,908
4,471
Less: future finance charges
(87,241)
(185)
(87,241)
(185)
491,667
4,286
491,667
4,286
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
21
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Assets
Assets
2025
2024
Group
£
£
Accelerated capital allowances
61,872
-
Tax losses
-
100,000
61,872
100,000
B. HEPWORTH AND COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
21
Deferred taxation
(Continued)
- 33 -
Assets
Assets
2025
2024
Company
£
£
Accelerated capital allowances
61,872
-
Tax losses
-
100,000
61,872
100,000
Group
Company
2025
2025
Movements in the year:
£
£
Asset at 1 April 2024
(100,000)
(100,000)
Charge to profit or loss
100,000
100,000
Effect of change in tax rate - profit or loss
(61,872)
(61,872)
Asset at 31 March 2025
(61,872)
(61,872)
22
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
231,504
227,780
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
23
Share capital
Group and company
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
85,020
85,020
85,020
85,020
The Ordinary shares in issue have full voting, capital and dividend rights.
24
Share premium account
The share premium reserve includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share capital.
B. HEPWORTH AND COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 34 -
25
Profit and loss reserves
Retained earnings includes all current and prior retained profits and losses.
26
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2025
2024
2025
2024
£
£
£
£
Within one year
547,123
548,328
547,123
548,328
Between two and five years
956,671
1,416,293
956,671
1,416,293
1,503,794
1,964,621
1,503,794
1,964,621
27
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2025
2024
£
£
Aggregate compensation
1,319,282
1,338,682
Transactions with related parties
During the year the group entered into the following transactions with related parties:
Northwest Marine Distributors Limited of which J P Eddy is a shareholder. All transactions were conducted on an arms length basis on normal trading terms.
Sales
Sales
2025
2024
£
£
Company
Other related parties
156,461
152,432
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2025
2024
Balance
Balance
£
£
Group
Other related parties
81,775
30,666
B. HEPWORTH AND COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
27
Related party transactions
(Continued)
- 35 -
Other information
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
28
Controlling party
Following the purchase of shares on 31st March 2025, the parent company of B. Hepworth and Company Limited is B. Hepworth Group Ltd and its registered office is 4 Merse Road, Moons Moat North Industrial Estate, Redditch, United Kingdom, B98 9HL.
The ultimate controlling party is Andrew Eddy by virtue of his shareholding.
29
Cash generated from group operations
2025
2024
£
£
Profit after taxation
22,584
669,195
Adjustments for:
Taxation credited
(5,974)
(100,000)
Finance costs
76,007
70,829
Gain on disposal of tangible fixed assets
(17,550)
-
Amortisation and impairment of intangible assets
40,290
58,824
Depreciation and impairment of tangible fixed assets
346,497
278,724
Movements in working capital:
Decrease/(increase) in stocks
179,079
(195,645)
Decrease/(increase) in debtors
452,403
(407,651)
(Decrease)/increase in creditors
(581,438)
170,896
Cash generated from operations
511,898
545,172
30
Analysis of changes in net funds/(debt) - group
1 April 2024
Cash flows
New finance leases
Exchange rate movements
31 March 2025
£
£
£
£
£
Cash at bank and in hand
167,280
193,273
-
(11,906)
348,647
Obligations under finance leases
(4,286)
137,024
(624,405)
-
(491,667)
162,994
330,297
(624,405)
(11,906)
(143,020)
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