Hindle Gears Limited 07728560 false 2023-12-01 2024-11-30 2024-11-30 The principal activity of the company is general engineers, gearbox specialists, gearbox manufacturers and specialist subcontractors. Digita Accounts Production Advanced 6.30.9574.0 true true true Class 1 Class 2 Class 3 true true 07728560 2023-12-01 2024-11-30 07728560 2024-11-30 07728560 bus:OrdinaryShareClass1 2024-11-30 07728560 bus:OrdinaryShareClass2 2024-11-30 07728560 bus:OrdinaryShareClass3 2024-11-30 07728560 bus:OrdinaryShareClass4 2024-11-30 07728560 core:RetainedEarningsAccumulatedLosses 2024-11-30 07728560 core:ShareCapital 2024-11-30 07728560 core:CurrentFinancialInstruments 2024-11-30 07728560 core:CurrentFinancialInstruments core:WithinOneYear 2024-11-30 07728560 core:Goodwill 2024-11-30 07728560 core:BetweenTwoFiveYears 2024-11-30 07728560 core:WithinOneYear 2024-11-30 07728560 core:OtherPropertyPlantEquipment 2024-11-30 07728560 core:DeferredTaxation 2024-11-30 07728560 core:OtherRelatedParties 2024-11-30 07728560 bus:FRS102 2023-12-01 2024-11-30 07728560 bus:Audited 2023-12-01 2024-11-30 07728560 bus:FullAccounts 2023-12-01 2024-11-30 07728560 bus:RegisteredOffice 2023-12-01 2024-11-30 07728560 bus:Director1 2023-12-01 2024-11-30 07728560 bus:Director2 2023-12-01 2024-11-30 07728560 bus:Director3 2023-12-01 2024-11-30 07728560 bus:OrdinaryShareClass1 2023-12-01 2024-11-30 07728560 bus:OrdinaryShareClass2 2023-12-01 2024-11-30 07728560 bus:OrdinaryShareClass3 2023-12-01 2024-11-30 07728560 bus:OrdinaryShareClass4 2023-12-01 2024-11-30 07728560 bus:Consolidated 2023-12-01 2024-11-30 07728560 bus:PrivateLimitedCompanyLtd 2023-12-01 2024-11-30 07728560 bus:Agent1 2023-12-01 2024-11-30 07728560 core:RetainedEarningsAccumulatedLosses 2023-12-01 2024-11-30 07728560 core:ShareCapital 2023-12-01 2024-11-30 07728560 countries:Europe 2023-12-01 2024-11-30 07728560 countries:RestWorldOutsideEurope 2023-12-01 2024-11-30 07728560 countries:UnitedKingdom 2023-12-01 2024-11-30 07728560 core:Goodwill 2023-12-01 2024-11-30 07728560 core:PlantEquipmentUnderOperatingLeases 2023-12-01 2024-11-30 07728560 core:ReportableOperatingSegment1 2023-12-01 2024-11-30 07728560 core:ReportableOperatingSegment2 2023-12-01 2024-11-30 07728560 core:ReportableOperatingSegment3 2023-12-01 2024-11-30 07728560 core:FurnitureFittingsToolsEquipment 2023-12-01 2024-11-30 07728560 core:OtherPropertyPlantEquipment 2023-12-01 2024-11-30 07728560 core:PlantMachinery 2023-12-01 2024-11-30 07728560 core:DeferredTaxation 2023-12-01 2024-11-30 07728560 core:OtherRelatedParties core:SaleOrPurchaseGoods 2023-12-01 2024-11-30 07728560 core:UKTax 2023-12-01 2024-11-30 07728560 1 2023-12-01 2024-11-30 07728560 countries:England 2023-12-01 2024-11-30 07728560 2023-11-30 07728560 core:RetainedEarningsAccumulatedLosses 2023-11-30 07728560 core:ShareCapital 2023-11-30 07728560 core:Goodwill 2023-11-30 07728560 core:OtherPropertyPlantEquipment 2023-11-30 07728560 core:DeferredTaxation 2023-11-30 07728560 2022-12-01 2023-11-30 07728560 2023-11-30 07728560 bus:OrdinaryShareClass1 2023-11-30 07728560 bus:OrdinaryShareClass2 2023-11-30 07728560 bus:OrdinaryShareClass3 2023-11-30 07728560 bus:OrdinaryShareClass4 2023-11-30 07728560 core:CurrentFinancialInstruments 2023-11-30 07728560 core:CurrentFinancialInstruments core:WithinOneYear 2023-11-30 07728560 core:BetweenTwoFiveYears 2023-11-30 07728560 core:WithinOneYear 2023-11-30 07728560 core:OtherPropertyPlantEquipment 2023-11-30 07728560 core:OtherRelatedParties 2023-11-30 07728560 core:RetainedEarningsAccumulatedLosses 2022-12-01 2023-11-30 07728560 core:ShareCapital 2022-12-01 2023-11-30 07728560 countries:Europe 2022-12-01 2023-11-30 07728560 countries:RestWorldOutsideEurope 2022-12-01 2023-11-30 07728560 countries:UnitedKingdom 2022-12-01 2023-11-30 07728560 core:PlantEquipmentUnderOperatingLeases 2022-12-01 2023-11-30 07728560 core:OtherRelatedParties core:SaleOrPurchaseGoods 2022-12-01 2023-11-30 07728560 core:UKTax 2022-12-01 2023-11-30 07728560 2022-11-30 07728560 core:RetainedEarningsAccumulatedLosses 2022-11-30 07728560 core:ShareCapital 2022-11-30 iso4217:GBP xbrli:pure xbrli:shares

Registration number: 07728560

Hindle Gears Limited

Annual Report and Financial Statements

for the Year Ended 30 November 2024

 

Hindle Gears Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3 to 4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 9

Profit and Loss Account

10

Statement of Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Notes to the Financial Statements

14 to 25

 

Hindle Gears Limited

Company Information

Directors

Mr David Hindle

Mr Peter Roy Bingham

Mr Richard John Hindle

Registered office

Hapco Works
Caledonia Street
Bradford
West Yorkshire
BD5 0EL

Accountants

Charles Best Limited 12 Henley Close
Rawdon
Leeds
Yorkshire
LS19 6QB

Auditors

Duncan & Toplis Audit Limited 14 London Road
Newark
Nottinghamshire
NG24 1TW

 

Hindle Gears Limited

Strategic Report for the Year Ended 30 November 2024

The directors present their strategic report for the year ended 30 November 2024.

Principal activity

The principal activity of the company is general engineers, gearbox specialists, gearbox manufacturers and specialist subcontractors.

Fair review of the business

During the previous financial year the directors implemented programmes to improve efficiency and cost cutting and these have resulted in a profit before tax of £992,782. The directors are hopeful that these programmes, along with customer gains, will yield further improvements.

The directors believe that the company enjoys a good reputation within the sectors it operates.

The company takes its environmental and pollution responsibilities seriously and is continually working to reduce its energy usage.

The company works very hard to provide customers ever demanding needs in these difficult times, with our sales in the UK, Europe and the rest of the world increasing over the previous year. We see this as continuing for the foreseeable future but still face challenges with materials, shipping and staffing levels on a day to day basis.

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

Financial KPIs

Unit

2024

2023

Turnover

£

12,523,890

12,534,315

Gross Profit

£

2,373,654

2,102,912

Profit before Tax

£

1,356,105

1,041,598

Principal risks and uncertainties

The company operates from a UK manufacturing facility. The company manages the risks to the business and insures against risk wherever it is sensible and cost effective to do so.

Some of the company's activities operate in very competitive markets. In addition the company invests significant resources in monitoring manufacturing costs and managing the potential threats from low cost economies.

Approved and authorised by the Board on 19 August 2025 and signed on its behalf by:
 

.........................................
Mr David Hindle
Director

 

Hindle Gears Limited

Directors' Report for the Year Ended 30 November 2024

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

Directors of the company

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

Mr David Hindle

Mr Peter Roy Bingham

Mr Richard John Hindle

Financial instruments

Objectives and policies

The directors continue to implement efficiency and cost cutting programmes within the company and drive down energy usage in production. The objectives currently in place are to increase turnover by increasing the customer base of the company and increasing sales to the existing customer base, and to keep purchase costs as low as possible to maintain gross margins.

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

The company's principal financial instruments comprise trade debtors, trade creditors, bank loans and hire and
lease purchase agreements. The main purpose of these instruments is to raise funds for the company's operations
and finance the company's operations.

Due to the nature of the financial instruments used by the company there is no exposure to price risk.
Trade debtors, credit and cash flow risks are managed by policies concerning the credit offered to customers and
the monitoring of the amounts outstanding in terms of time and credit limits.

In respect of loans, the liquidity risk is managed by the virtue of the flexible terms inherent within these
facilities. Trade creditors and amounts owed to related undertakings all arise from trading transactions and the
liquidity risk is managed from income generation and the use of the company's borrowing facilities.

Going concern

At the time of approving the financial statements the directors have a reasonable expectation that the company has adequate resources to continue to operate for at least 12 months from the date of approval and thus the directors continue to adopt a going concern basis of accounting in the preparation of these financial statements.

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 Duncan & Toplis Audit Limited are deemed to be reappointed under section 487(2) of the Companies Act 2006.

 

Hindle Gears Limited

Directors' Report for the Year Ended 30 November 2024

Approved and authorised by the Board on 19 August 2025 and signed on its behalf by:
 

.........................................
Mr David Hindle
Director

 

Hindle Gears 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.

 

Hindle Gears Limited

Independent Auditor's Report to the Members of Hindle Gears Limited

Opinion

We have audited the financial statements of Hindle Gears Limited (the 'company') for the year ended 30 November 2024, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, 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 30 November 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.

Other matters
The previous year's financial statements were not audited as the company was entitled to exemption under section 477 of the Companies Act 2006. Accordingly, the comparatives to the current year's financial statements are not audited.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 original 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.

 

Hindle Gears Limited

Independent Auditor's Report to the Members of Hindle Gears Limited

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.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

Hindle Gears Limited

Independent Auditor's Report to the Members of Hindle Gears Limited

We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with directors and other management obtained as part of the work required by auditing standards. We have also discussed with the directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit.
 

 

Hindle Gears Limited

Independent Auditor's Report to the Members of Hindle Gears Limited

The potential impact of different laws and regulations varies considerably. Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws and regulations as part of our financial statements audit. This included identification and testing of unusual material journal entries and challenging management on key areas of uncertainty being the estimates, assumptions and judgements made in the preparation of the financial statements.

Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Health and Safety regulations, Employment law and Environmental regulations. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statements items.

 

Owing to the inherent limitations of an audit, there is unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non- compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: 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.

......................................
Rachel Rudkin FCCA (Senior Statutory Auditor)
For and on behalf of Duncan & Toplis Audit Limited, Statutory Auditor
 14 London Road
Newark
Nottinghamshire
NG24 1TW

19 August 2025

 

Hindle Gears Limited

Profit and Loss Account for the Year Ended 30 November 2024

Note

2024
£

2023
£

Turnover

3

12,523,890

12,534,315

Cost of sales

 

(10,150,236)

(10,431,403)

Gross profit

 

2,373,654

2,102,912

Distribution costs

 

(8,935)

(11,787)

Administrative expenses

 

(1,013,513)

(1,038,250)

Operating profit

4

1,351,206

1,052,875

Other interest receivable and similar income

5

6,303

-

Interest payable and similar expenses

6

(1,404)

(11,277)

   

4,899

(11,277)

Profit before tax

 

1,356,105

1,041,598

Tax on profit

10

(334,060)

(71,569)

Profit for the financial year

 

1,022,045

970,029

The above results were derived from continuing operations.

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

 

Hindle Gears Limited

Statement of Comprehensive Income for the Year Ended 30 November 2024

2024
£

2023
£

Profit for the year

1,022,045

970,029

Total comprehensive income for the year

1,022,045

970,029

 

Hindle Gears Limited

(Registration number: 07728560)
Balance Sheet as at 30 November 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

12

68,703

57,549

Current assets

 

Stocks

13

3,066,795

3,375,398

Debtors

14

2,514,449

3,748,963

Cash at bank and in hand

 

789,750

30,617

 

6,370,994

7,154,978

Creditors: Amounts falling due within one year

15

(2,088,205)

(3,663,617)

Net current assets

 

4,282,789

3,491,361

Total assets less current liabilities

 

4,351,492

3,548,910

Provisions for liabilities

16

(13,473)

(12,936)

Net assets

 

4,338,019

3,535,974

Capital and reserves

 

Called up share capital

10,000

10,000

Retained earnings

19

4,328,019

3,525,974

Shareholders' funds

 

4,338,019

3,535,974

Approved and authorised by the Board on 19 August 2025 and signed on its behalf by:
 

.........................................
Mr David Hindle
Director

 

Hindle Gears Limited

Statement of Changes in Equity for the Year Ended 30 November 2024

Share capital
£

Retained earnings
£

Total
£

At 1 December 2023

10,000

3,525,974

3,535,974

Profit for the year

-

1,022,045

1,022,045

Dividends

-

(220,000)

(220,000)

At 30 November 2024

10,000

4,328,019

4,338,019

Share capital
£

Retained earnings
£

Total
£

At 1 December 2022

10,000

2,555,945

2,565,945

Profit for the year

-

970,029

970,029

At 30 November 2023

10,000

3,525,974

3,535,974

 

Hindle Gears Limited

Notes to the Financial Statements for the Year Ended 30 November 2024

1

General information

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

The address of its registered office is:
Hapco Works
Caledonia Street
Bradford
West Yorkshire
BD5 0EL
England

These financial statements were authorised for issue by the Board on 19 August 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. Monetary amounts in these financial statements are rounded to the nearest £.

Summary of disclosure exemptions

The company is a qualifying entity for the purposes of FRS102, 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 and loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements.
• 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 each category of financial instrument, basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit and loss and 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.

Name of parent of group

These financial statements are consolidated in the financial statements of Hindle Gears Holdings Limited.

The financial statements of Hindle Gears Holdings Limited may be obtained from its registered office, Hapco Works, Caledonia Street, Bradford, BD5 0EL.

 

Hindle Gears Limited

Notes to the Financial Statements for the Year Ended 30 November 2024

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company 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.

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 sales/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.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

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:

 

Hindle Gears Limited

Notes to the Financial Statements for the Year Ended 30 November 2024

Asset class

Depreciation method and rate

Plant and machinery

5-10 years straight line

Fixtures, fittings and equipment

5-10 years straight line

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

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.

Trade 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

Stocks 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 finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable 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.

 

Hindle Gears Limited

Notes to the Financial Statements for the Year Ended 30 November 2024

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

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

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.

 

Hindle Gears Limited

Notes to the Financial Statements for the Year Ended 30 November 2024

Financial instruments

Recognition and measurement
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ of FRS102 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, 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, 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 the 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.

 Impairment
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 and 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.

 

Hindle Gears Limited

Notes to the Financial Statements for the Year Ended 30 November 2024

Judgements

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 affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing material adjustment to the carrying value of assets and liabilities are as follows:

Stock provisioning

The group is that of general engineers, engine component remanufacturers, distributors of engineering products and manufacturer of industrial products. As a result, it is necessary to consider the recoverability of the cost and associated provision required. When calculating the stock provision, management consider the nature and condition of the stock, as well as applying assumptions around anticipated usability and saleability of finished goods.

3

Turnover

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

2024
£

2023
£

Sale of goods

12,523,890

12,534,315

The analysis of the company's turnover for the year by market is as follows:

2024
£

2023
£

UK

12,194,284

11,840,377

Europe

166,373

483,434

Rest of world

163,233

210,504

12,523,890

12,534,315

4

Operating profit

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

16,269

14,552

Operating lease expense - plant and machinery

12,858

18,718

Loss on disposal of property, plant and equipment

-

4

Auditor's remuneration - The audit of the company's annual accounts

8,450

-

Foreign currency (gains)/losses

1,020

5,869

 

Hindle Gears Limited

Notes to the Financial Statements for the Year Ended 30 November 2024

5

Other interest receivable and similar income

2024
£

2023
£

Interest income on bank deposits

6,303

-

6

Interest payable and similar expenses

2024
£

2023
£

Interest on bank overdrafts and borrowings

384

3,964

Interest expense on other finance liabilities

-

1,444

Foreign exchange gains

1,020

5,869

1,404

11,277

7

Staff costs

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

2024
£

2023
£

Wages and salaries

2,411,891

2,120,836

Social security costs

250,158

199,764

Pension costs, defined contribution scheme

77,486

68,887

Other employee expense

18,847

41,503

2,758,382

2,430,990

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

57

59

Administration and support

7

7

64

66

8

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

21,056

16,087

Contributions paid to money purchase schemes

21,488

20,388

42,544

36,475

 

Hindle Gears Limited

Notes to the Financial Statements for the Year Ended 30 November 2024

9

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

8,450

-


 

10

Taxation

Tax charged/(credited) in the profit and loss account

2024
£

2023
£

Current taxation

UK corporation tax

333,523

70,319

Deferred taxation

Arising from origination and reversal of timing differences

537

1,250

Tax expense in the income statement

334,060

71,569

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

The differences are reconciled below:

2024
£

2023
£

Profit before tax

1,356,105

1,041,598

Corporation tax at standard rate

339,026

260,400

Tax decrease from effect of capital allowances and depreciation

(2,335)

(1,251)

Decrease from effect of different UK tax rates on some earnings

-

(6,078)

Tax increase from other short-term timing differences

2,015

293

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

67

38

Tax decrease arising from group relief

(5,250)

(183,083)

Deferred tax expense from unrecognised tax loss or credit

537

1,250

Total tax charge

334,060

71,569

Standard corporation tax rate changed from 19% to 25% as of 01 April 2023.

 

Hindle Gears Limited

Notes to the Financial Statements for the Year Ended 30 November 2024

11

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 December 2023

13,274

13,274

At 30 November 2024

13,274

13,274

Amortisation

At 1 December 2023

13,274

13,274

At 30 November 2024

13,274

13,274

Carrying amount

At 30 November 2024

-

-

12

Tangible assets

Plant and machinery
£

Total
£

Cost or valuation

At 1 December 2023

175,825

175,825

Additions

27,424

27,424

At 30 November 2024

203,249

203,249

Depreciation

At 1 December 2023

118,277

118,277

Charge for the year

16,269

16,269

At 30 November 2024

134,546

134,546

Carrying amount

At 30 November 2024

68,703

68,703

At 30 November 2023

57,549

57,549

13

Stocks

2024
£

2023
£

Raw materials and consumables

808,149

1,100,080

Work in progress

1,360,353

1,243,414

Finished goods and goods for resale

1,118,272

1,213,530

Stock provision

(219,979)

(181,626)

3,066,795

3,375,398

 

Hindle Gears Limited

Notes to the Financial Statements for the Year Ended 30 November 2024

14

Debtors

Current

Note

2024
£

2023
£

Trade debtors

 

1,869,944

2,776,666

Amounts owed by related parties

23

628,457

971,509

Other debtors

 

14,624

-

Prepayments

 

1,424

788

   

2,514,449

3,748,963

15

Creditors

Note

2024
£

2023
£

Due within one year

 

Loans and borrowings

20

-

265,484

Trade creditors

 

756,145

1,044,428

Amounts due to related parties

23

23,871

630,429

Social security and other taxes

 

455,844

402,850

Other payables

 

434,560

1,181,392

Accruals

 

86,648

68,716

Income tax liability

10

331,137

70,318

 

2,088,205

3,663,617

16

Provisions for liabilities

Deferred tax
£

Total
£

At 1 December 2023

12,936

12,936

Additional provisions

537

537

At 30 November 2024

13,473

13,473

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

17

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 £77,486 (2023 - £68,887).

 

Hindle Gears Limited

Notes to the Financial Statements for the Year Ended 30 November 2024

18

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

A Ordinary Shares of £1 each

4,000

4,000

4,000

4,000

B Ordinary Shares of £1 each

2,000

2,000

2,000

2,000

C Ordinary Shares of £1 each

2,000

2,000

2,000

2,000

D Ordinary Shares of £1 each

2,000

2,000

2,000

2,000

10,000

10,000

10,000

10,000

19

Reserves

Note

£

As at 1 December 2023

 

3,525,974

Profit for the period

 

802,045

As at 30 November 2024

 

4,328,019

20

Loans and borrowings

Current loans and borrowings

2024
£

2023
£

Bank overdrafts

-

265,484

21

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

17,940

9,030

Later than one year and not later than five years

64,285

-

82,225

9,030

The amount of non-cancellable operating lease payments recognised as an expense during the year was £12,857 (2023 - £18,718).

 

Hindle Gears Limited

Notes to the Financial Statements for the Year Ended 30 November 2024

22

Dividends

Final dividends paid

2024
£

2023
£

Final dividend of 22.00 (2023 - Nil) per each A Ordinary Shares

88,000

-

Final dividend of 22.00 (2023 - Nil) per each B Ordinary Shares

44,000

-

Final dividend of 22.00 (2023 - Nil) per each C Ordinary Shares

44,000

-

Final dividend of 22.00 (2023 - Nil) per each D Ordinary Shares

44,000

-

220,000

-

23

Related party transactions

Summary of transactions with key management

As a wholly owned subsidiary of Hindle Gears Holdings Limited, the company is exempt from the requirements of FRS 102 to disclose transactions with directors.

Expenditure with and payables to related parties

2024

Other related parties
£

Purchase of goods

2,614,448

Amounts payable to related party

420,269

2023

Other related parties
£

Purchase of goods

3,589,736

Amounts payable to related party

1,165,974

24

Parent and ultimate parent undertaking

The ultimate parent is Hindle Gears Holdings Limited, incorporated in England.

  These financial statements are available upon request from its registered office, Hapco Works, Caledonia Street, Bradford, BD5 0EL.