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Registered number: 04623982










HENNAN LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024



 
HENNAN LIMITED
 

COMPANY INFORMATION


Directors
C A Critcher 
G B Critcher 
J N Critcher 
S M Critcher 




Company secretary
S M Crichter



Registered number
04623982



Registered office
Unit 6 Cae Gwyrdd
Tongwynlais

Cardiff

CF15 7AB




Independent auditors
James Cowper Kreston Audit
Chartered Accountants

2 Communications Road

Greenham Business Park

Greenham

Newbury

Berkshire

RG19 6AB





 
HENNAN LIMITED
 

CONTENTS



Page
Group strategic report
 
1
Directors' report
 
2 - 4
Independent auditors' report
 
5 - 8
Consolidated profit and loss account
 
9
Consolidated balance sheet
 
10
Company balance sheet
 
11
Consolidated statement of changes in equity
 
12
Company statement of changes in equity
 
13
Consolidated statement of cash flows
 
14
Consolidated analysis of net debt
 
15
Notes to the financial statements
 
16 - 32


 
HENNAN LIMITED
 

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction
 
The Group is a family business founded in 1997. Collectively we have over 100 years combined experience in the fruit trade. The Group sources fresh produce globally, supplying retailers, food service, caterers, and the wholesale sector and now supplies and distributes fruit to a number of significant customers in the UK.

Business review
 
The Group is committed to providing a year-round availability of fresh berries to its customer base. This has been achieved by its investments in its UK farming operations, ensuring a consistent supply of high-quality berries. 
 
The Group is also dedicated to sourcing premium imported produce. This allows the Group to bridge any seasonal gaps in local production, thereby guaranteeing a twelve-month supply of berries. This dual approach of combining its UK production with carefully selected imports not only ensures continuous product availability but also maintains the high standards of quality that customers expect.
 
Through this dual approach the business has achieved a strong set of accounts.  

Principal risks and uncertainties
 
Market risk:
The Group continues to remain exposed to cost inflation due to the current economic climate. However, the Group mitigates this risk by continuing to nurture and maintain the close working relationships with their UK and overseas suppliers to negotiate favourable purchasing terms. 
Environmental risk: 
As the Group trades in fresh fruit produce, we are exposed to environmental risks associated with fruit production. The Group successfully mitigates this through continued review of global fruit production/growing conditions which allows us to react quickly to any decline in performance and can look for alternative suppliers or can source alternative fruits to trade in. The Group has also invested in a research and development project which if successful allows 12-month production of produce under light sources which further assists in mitigating the environmental risk. 
Financial risks: 
The Group is exposed to foreign currency risk on both the sale and purchase of imported produce. Where possible the Group tries to limit their risk through self-hedging. If the Group deems the risk of specific foreign current transactions to be higher than a level that they are comfortable with, they seek to secure foreign currency hedging instruments.

Financial key performance indicators
 
The Group’s key performance indicators are revenue, gross profit and net profit. The Directors monitor the Group’s key performance indicators on a regular basis in order to assess the ongoing financial performance.


This report was approved by the board and signed on its behalf.



S M Critcher
Director
Date: 8 September 2025

Page 1

 
HENNAN LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

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

Directors

The directors who served during the year were:

C A Critcher 
G B Critcher 
J N Critcher 
S M Critcher 

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £331,578 (2023 - £219,919).

Dividends of £240,000 (2023: £100,000) were declared in the year.

Future developments

The Directors will continue to build on long standing relationships whilst seeking new opportunities and adapt as the market and industry evolves.

Page 2

 
HENNAN LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Financial instruments

Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The Group is mainly exposed to credit risk from credit sales. It is Group policy to assess the credit risk of new customers before entering contracts. Each new customer is analysed individually for creditworthiness before the Group's standard payment and delivery terms and conditions are offered. Purchase limits are established for each customer, which represents the maximum open amount without requiring approval. The Group has policies and procedures to monitor their ongoing exposure and to minimise any risks of losses.
Liquidity risk
Liquidity risk arises from the Group's management of working capital and the finance charges and principal repayments on its debt instruments. It is the risk that the Group will encounter difficulty in meeting its financial obligations as they fall due.
Foreign exchange risk
The Group trades in GBP, EUR and USD and as a result incurs foreign exchange gains and losses on the timing differences between order and payment. To mitigate the associated transaction risk the Group holds bank accounts in all three currencies. 
Exposure is reduced through purchasing forward exchange contracts. This gives the Group the ability to draw down on these contracts where the current spot rate is unfavourable. Equally where the spot rate is favourable then the Group uses the available rate. The open position of hedges is carefully monitored to ensure forward contracts are utilised prior to their expiry date.
Interest rate risk
The Group's interest rate risk is limited due to the fixed rates on its finance leases and bank loans and is therefore primarily associated with its ability to make interest payments.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Auditors

The auditorsJames Cowper Kreston Auditwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Page 3

 
HENNAN LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

This report was approved by the board and signed on its behalf.
 







S M Critcher
Director
Date: 8 September 2025

Page 4

 
HENNAN LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HENNAN LIMITED
 

Opinion


We have audited the financial statements of Hennan Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Consolidated profit and loss account, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 December 2024 and of the Group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 5

 
HENNAN LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HENNAN LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the 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 the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the 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 set out on page 2, 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 Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
HENNAN LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HENNAN LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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 Group 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:

The specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fraud, were as follows:
·  Enquiry of management and those charged with governance around actual and potential litigation and    claims;
· Enquiry of management and those charged with governance to identify any material instances of non-   compliance with laws and regulations;
·  Reviewing financial statement disclosures and testing to supporting documentation to assess compliance   with applicable laws and regulations;
·  Performing audit work to address the risk of irregularities due to management override of controls,    including testing of journal entries and other adjustments for appropriateness, evaluating the business    rationale of significant transactions outside the normal course of business and reviewing accounting    estimates for evidence of bias.


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


Page 7

 
HENNAN LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HENNAN LIMITED (CONTINUED)


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 2006Our 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 Auditors' 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.





Alexander Peal BSc (Hons) FCA DChA (Senior statutory auditor)
for and on behalf of
James Cowper Kreston Audit
Chartered Accountants
2 Communications Road
Greenham Business Park
Greenham
Newbury
Berkshire
RG19 6AB

8 September 2025
Page 8

 
HENNAN LIMITED
 

CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
£
£

  

Turnover
 4 
22,513,712
20,099,148

Cost of sales
  
(20,652,709)
(18,428,334)

Gross profit
  
1,861,003
1,670,814

Administrative expenses
  
(1,445,305)
(1,284,991)

Other operating income
 5 
100,942
-

Operating profit
 6 
516,640
385,823

Interest receivable and similar income
  
-
303

Interest payable and similar expenses
 10 
(92,587)
(86,559)

Profit before tax
  
424,053
299,567

Tax on profit
 11 
(92,475)
(79,648)

Profit for the financial year
  
331,578
219,919

Profit for the year attributable to:
  

Owners of the parent
  
331,578
219,919

  
331,578
219,919

There are no items of other comprehensive income for 2024 or 2023 other than the profit for the yearAs a result, no separate Statement of Comprehensive Income has been presented.

The notes on pages 16 to 32 form part of these financial statements.

Page 9

 
HENNAN LIMITED
REGISTERED NUMBER: 04623982

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 12 
2,219,179
2,281,429

  
2,219,179
2,281,429

Current assets
  

Debtors: amounts falling due within one year
 14 
2,322,180
3,150,128

Cash at bank and in hand
 15 
1,008,983
368,292

  
3,331,163
3,518,420

Current liabilities
  

Creditors: amounts falling due within one year
 16 
(2,552,502)
(2,764,389)

Net current assets
  
 
 
778,661
 
 
754,031

Total assets less current liabilities
  
2,997,840
3,035,460

Creditors: amounts falling due after more than one year
 17 
(932,805)
(1,052,976)

Provisions for liabilities
  

Deferred taxation
 21 
(27,278)
(36,305)

Net assets
  
 
 
2,037,757
 
 
1,946,179


Capital and reserves
  

Called up share capital 
 22 
100
100

Profit and loss account
 24 
2,037,657
1,946,079

Equity attributable to owners of the parent Company
  
2,037,757
1,946,179

  
2,037,757
1,946,179


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




G B Critcher
Director
Date: 8 September 2025

Page 10

 
HENNAN LIMITED
REGISTERED NUMBER: 04623982

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Investments
 13 
100
100

  
100
100

Current assets
  

Cash at bank and in hand
 15 
6
6

  
6
6

Current liabilities
  

Creditors: amounts falling due within one year
 16 
(2)
(2)

Net current assets
  
 
 
4
 
 
4

  

  

Net assets
  
104
104


Capital and reserves
  

Called up share capital 
 22 
100
100

Profit and loss account carried forward
  
4
4

  
104
104


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


G B Critcher
Director
Date: 8 September 2025

The notes on pages 16 to 32 form part of these financial statements.

Page 11

 
HENNAN LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024


Called up share capital
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£

At 1 January 2024
100
1,946,079
1,946,179
1,946,179



Profit for the year
-
331,578
331,578
331,578

Dividends: Equity capital
-
(240,000)
(240,000)
(240,000)


At 31 December 2024
100
2,037,657
2,037,757
2,037,757



CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£

At 1 January 2023
100
1,826,160
1,826,260
1,826,260



Profit for the year
-
219,919
219,919
219,919

Dividends: Equity capital
-
(100,000)
(100,000)
(100,000)


At 31 December 2023
100
1,946,079
1,946,179
1,946,179


The notes on pages 16 to 32 form part of these financial statements.

Page 12

 
HENNAN LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2024
100
4
104



Profit for the year
-
240,000
240,000

Dividends: Equity capital
-
(240,000)
(240,000)


At 31 December 2024
100
4
104



COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2023
100
4
104



Profit for the year
-
100,000
100,000

Dividends: Equity capital
-
(100,000)
(100,000)


At 31 December 2023
100
4
104


The notes on pages 16 to 32 form part of these financial statements.

Page 13

 
HENNAN LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
331,578
219,919

Adjustments for:

Depreciation of tangible assets
64,350
92,394

Interest paid
92,587
86,559

Interest received
-
303

Taxation charge
92,475
79,648

Decrease/(increase) in debtors
827,954
(252,688)

(Decrease)/increase in creditors
(188,223)
306,115

Corporation tax (paid)
(62,277)
(80,253)

Net cash generated from operating activities

1,158,444
451,997


Cash flows from investing activities

Purchase of tangible fixed assets
(2,100)
(164,616)

Interest received
-
(303)

Net cash from investing activities

(2,100)
(164,919)

Cash flows from financing activities

Repayment of loans
(143,587)
(146,905)

Repayment of/new finance leases
(34,152)
84,483

Dividends paid
(240,000)
(100,000)

Interest paid
(92,587)
(86,559)

Net cash used in financing activities
(510,326)
(248,981)

Net increase in cash and cash equivalents
646,018
38,097

Cash and cash equivalents at beginning of year
362,965
324,868

Cash and cash equivalents at the end of year
1,008,983
362,965


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,008,983
368,286

Bank overdrafts
-
(5,321)

1,008,983
362,965


The notes on pages 16 to 32 form part of these financial statements.

Page 14

 
HENNAN LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2024




At 1 January 2024
Cash flows
At 31 December 2024
£

£

£

Cash at bank and in hand

368,292

640,691

1,008,983

Bank overdrafts

(5,321)

5,321

-

Bank loans due after 1 year

(954,222)

86,019

(868,203)

Bank loans due within 1 year

(154,289)

57,568

(96,721)

Obligations under finance lease and hire purchase contracts due after 1 year

(98,754)

34,152

(64,602)

Obligations under finance lease and hire purchase contracts due within 1 year

(34,152)

-

(34,152)


(878,446)
823,751
(54,695)

The notes on pages 16 to 32 form part of these financial statements.

Page 15

 
HENNAN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.


General information

Hennan Limited ("the Company") is a private company limited by share capital and incorporated in England and Wales. The address of the registered office and principal office is Unit 6 Cae Gwyrdd, Tongwynlais, Cardiff, Wales, CF15 7AB. 
The Group consists of Hennan Limited and all its subsidiaries.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Group has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and loss account in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated profit and loss account from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue consists of the total value of services sold in the year, net of any discounts, rebates and value added tax.

 
2.4

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Page 16

 
HENNAN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.4
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
Not depreciated
Plant & machinery
-
25 - 33% per annum
Fixtures & fittings
-
20% per annum
Other fixed assets
-
5% per annum

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.5

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.6

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.7

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.8

Financial instruments

The Group enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans with related parties.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.
Page 17

 
HENNAN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.8
Financial instruments (continued)


 
2.9

Foreign currency translation

Functional and presentation currency

The Group's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

 
2.10

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

 
2.11

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.12

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Group in independently administered funds.

Page 18

 
HENNAN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.13

Current and deferred taxation

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


Page 19

 
HENNAN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgments have had the most significant effect on amounts recognised in the financial statements. 
Tangible fixed assets 
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. Residual value assessments consider issues such as the remaining life of the asset and projected disposal values. 
Taxation
The Group establishes provisions based on reasonable estimates. The amount of such provisions is based on various factors, such as experience with previous tax submissions. Management estimation is required to determine the amount of deferred tax assets that can be recognised, based upon likely timing and level of future taxable profits together with an assessment of the effect of future tax planning strategies. 
Bad debt provision
The Group establishes provisions based on reasonable estimates. The Group makes specific provisions when it is probable that complete recovery of amounts due from trade debtors will not be made. Reviews of provisions held against customer accounts are carried out at least quarterly by management who consider cash inflows, historic recoveries and market information.


4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Wholesale fruit sales
22,385,471
19,959,853

Rent receivable
57,045
58,140

Commission receivable
22,503
11,779

Recharges
48,693
69,376

22,513,712
20,099,148


All turnover arose within the United Kingdom.

Page 20

 
HENNAN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

5.


Other operating income

2024
2023
£
£

Other operating income
100,000
-

Government grants receivable
942
-

100,942
-



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Other operating lease rentals
30,495
5,368

Exchange differences
(115,170)
(148,084)

Depreciation of tangible fixed assets - owned by the Company
26,402
29,741

Depreciation of tangible fixed assets - held under finance leases
37,948
62,653


7.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Group's auditors for the audit of the consolidated and parent Company's financial statements
12,850
9,250

Fees payable to the Group's auditors in respect of:

Taxation compliance services
2,150
2,050

Other services
1,000
1,000

Page 21

 
HENNAN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
2024
2023
£
£


Wages and salaries
765,729
742,729

Social security costs
89,331
82,637

Cost of defined contribution scheme
45,597
38,861

900,657
864,227


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Directors
4
4



Administration
6
6

10
10


9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
467,250
528,000

Group contributions to defined contribution pension schemes
5,000
30,000

472,250
558,000


During the year retirement benefits were accruing to 3 directors (2023 - 3) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £181,500 (2023 - £198,000).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £5,000 (2023 - £10,000).


Page 22

 
HENNAN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

10.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
84,160
77,091

Finance leases and hire purchase contracts
8,427
9,468

92,587
86,559


11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
104,687
65,369

Adjustments in respect of previous periods
(3,185)
-


101,502
65,369


Total current tax
101,502
65,369

Deferred tax


Origination and reversal of timing differences
(9,027)
14,279

Total deferred tax
(9,027)
14,279


92,475
79,648
Page 23

 
HENNAN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 23.52%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
424,053
299,567


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.52%)
106,013
70,460

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
10,697
8,257

Capital allowances for year in excess of depreciation
-
(12)

Adjustments to tax charge in respect of prior periods
(3,185)
-

Adjustments to tax charge in respect of previous periods - deferred tax
3,950
104

Non-taxable income
(25,000)
-

Remeasurement of deferred tax for the change in rate
-
839

Total tax charge for the year
92,475
79,648


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 24

 
HENNAN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

12.


Tangible fixed assets

Group






Freehold property
Plant & machinery
Fixtures & fittings
Other fixed assets
Total

£
£
£
£
£



Cost or valuation


At 1 January 2024
1,905,844
1,182,988
74,073
234,254
3,397,159


Additions
-
-
2,100
-
2,100



At 31 December 2024

1,905,844
1,182,988
76,173
234,254
3,399,259



Depreciation


At 1 January 2024
-
1,041,638
58,172
15,920
1,115,730


Charge for the year
-
37,948
10,482
15,920
64,350



At 31 December 2024

-
1,079,586
68,654
31,840
1,180,080



Net book value



At 31 December 2024
1,905,844
103,402
7,519
202,414
2,219,179



At 31 December 2023
1,905,844
141,350
15,901
218,334
2,281,429

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2024
2023
£
£



Plant and machinery
103,402
141,350

Page 25

 
HENNAN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

13.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2024
100



At 31 December 2024
100





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Class of shares

Holding

Agri SGJ Limited
Ordinary
100%

The aggregate of the share capital and reserves as at 31 December 2024 and the profit or loss for the year ended on that date for the subsidiary undertaking were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)

Agri SGJ Limited
2,037,753
331,578


14.


Debtors

Group
Group
2024
2023
£
£


Trade debtors
1,944,192
2,360,368

Amounts owned by associated undertakings
188,653
767,791

Other debtors
91,886
21,676

Prepayments and accrued income
97,449
293

2,322,180
3,150,128


Page 26

 
HENNAN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

15.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Cash at bank and in hand
1,008,983
368,292
6
6

Less: bank overdrafts
-
(5,321)
-
-

1,008,983
362,971
6
6


Security
Bank overdrafts are secured by way of a fixed and floating charge over the assets of the Group.


16.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Bank overdrafts
-
5,321
-
-

Bank loans
96,721
154,289
-
-

Trade creditors
1,876,025
2,029,164
-
-

Amounts owned to associated undertakings
-
-
2
2

Amounts owed to shareholders
240,000
100,000
-
-

Corporation tax
104,594
65,369
-
-

Other taxation and social security
25,148
144,536
-
-

Obligations under finance lease and hire purchase contracts
34,152
34,152
-
-

Other creditors
68,010
215,667
-
-

Accruals and deferred income
107,852
15,891
-
-

2,552,502
2,764,389
2
2


Security
Bank overdrafts are secured by way of a fixed and floating charge over the assets of the Company.

Page 27

 
HENNAN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

17.


Creditors: Amounts falling due after more than one year

Group
Group
2024
2023
£
£

Bank loans
868,203
954,222

Net obligations under finance leases and hire purchase contracts
64,602
98,754

932,805
1,052,976


Security
Bank loans are secured by way of a fixed and floating charge over the assets of the Company.


18.


Loans


Analysis of the maturity of loans is given below:


Group
Group
2024
2023
£
£

Amounts falling due within one year

Bank loans
96,721
154,289

Amounts falling due 1-2 years

Bank loans
97,247
91,379

Amounts falling due 2-5 years

Bank loans
322,199
311,234

Amounts falling due after more than 5 years

Bank loans
448,757
551,609

964,924
1,108,511


Security
Bank loans are secured by way of a fixed and floating charge over the assets of the Company.
Included within the above balance is £5,972, annual interest is charged at 4.27%.
Included within the above balance is £466,584, annual interest is charged at 7.75%.
Included within the above balance is £492,368, annual interest is charged at 5.53%.
The remaining repayment term of the loans range from 1.08 years – 10.16 years.  

Page 28

 
HENNAN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

19.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2024
2023
£
£

Within one year
34,153
34,152

Between 1-5 years
64,601
98,754

98,754
132,906


20.


Financial instruments

Group
Group
2024
2023
£
£

Financial assets

Cash and cash equivalents
1,008,983
368,286

Financial assets measured at amortised cost
2,224,731
3,149,835


Financial liabilities

Financial liabilities measured at amortised cost
3,485,307
3,746,673


Financial assets measured at amortised cost comprise trade, group and other debtors and amounts due from associated undertakings


Financial liabilities measured at amortised cost comprise trade, group and other creditors, bank loans, obligations under finance lease and hire purchase contracts, and accruals.


21.


Deferred taxation


Group



2024


£






At beginning of year
(36,305)


Charged to profit or loss
9,027



At end of year
(27,278)

Page 29

 
HENNAN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
21.Deferred taxation (continued)

Company







At beginning of year
-



At end of year
-
The provision for deferred taxation is made up as follows:

Group
Group
2024
2023
£
£

Fixed asset timing differences
(27,278)
(36,305)

(27,278)
(36,305)


22.


Share capital

2024
2023
£
£
Authorised



10 (2023 - 10) Ordinary A shares of £1.00 each
10
10
330 (2023 - 330) Ordinary B shares of £1.00 each
330
330
330 (2023 - 330) Ordinary C shares of £1.00 each
330
330
330 (2023 - 330) Ordinary D shares of £1.00 each
330
330

1,000

1,000

Allotted, called up and fully paid



1 (2023 - 1) Ordinary A share of £1.00
1
1
33 (2023 - 33) Ordinary B shares of £1.00 each
33
33
33 (2023 - 33) Ordinary C shares of £1.00 each
33
33
33 (2023 - 33) Ordinary D shares of £1.00 each
33
33

100

100



23.


Dividends

2024
2023
£
£


Dividends paid
240,000
100,000

240,000
100,000

Page 30

 
HENNAN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

24.


Reserves

Profit & loss account

This reserve account represents cumulative profits available for distribution to shareholders.


25.


Contingent liabilities

A cross guarantee and debenture are provided over the bank loans by Agri Fruit Limited.


26.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £45,597 (2023: £38,861). Contributions totalling £488 (2023: £488) were payable to the fund at the balance sheet date and are included in creditors.


27.


Commitments under operating leases

At 31 December 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2024
2023
£
£

Not later than 1 year
12,546
30,495

12,546
30,495

Page 31

 
HENNAN LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

28.


Related party transactions

As a wholly owned subsidiary, the Group is exempt from disclosing transactions with 100% owned members of the group headed by Hennan Limited in accordance with FRS 102 paragraph 33.1A.
 
The Group has continued to invest in the farm operated through Agri Fruit Limited, a related party through common control. During the year the Group received a management charge of £48,693 (2023: £69,376), rent of £57,045 (2023: £58,140) and recovered amounts incurred on the behalf of Agri Fruit Limited.
Agri Fruit Limited owed the Group £188,653 (2023: £734,313) at year end in respect of these transactions and other trade that are deemed to have been conducted under normal market conditions.
Strawfam Limited, a related party through common control owed the Company £70,006 (2023: £33,478) at year end in respect of transactions and other trade that are deemed to have been conducted under normal market conditions.
Flex Farming Limited was owed by the Group (a Company in which there is significant control over) £12,555 (2023: £nil) at year end in respect of transactions and other trade that are deemed to have been conducted under normal market conditions.
During the year rent of £37,314 (2023: £nil) was paid to the Directors. 
Included within other creditors at the year end is an amount of £63,499 (2023: £211,386) due to the Directors.
Directors are considered to be key management personnel, being those persons having authority and responsibility for planning, their remuneration is detailed in note 7.


29.


Controlling party

The Group is under the control of its Directors. 

Page 32