Year Ended
Registration number:
Halse South West Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account |
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Balance Sheet |
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Statement of Changes in Equity |
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Statement of Cash Flows |
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Notes to the Financial Statements |
Halse South West Limited
Company Information
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Directors |
Mr P J Halse Mr J P Halse |
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Registered office |
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Solicitors |
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Bankers |
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Auditors |
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Halse South West Limited
Strategic Report for the Year Ended 31 December 2024
The directors present their strategic report for the year ended 31 December 2024.
Principal activity
The principal activity of the company is that of sale of agricultural machinery, equipment and supplies.
Review of the business
During a very challenging first half of the year, which made turnover and margins difficult to maintain, the directors continued with the strategy of maintaining high levels of both new and used stock, despite supply chain challenges, such that the business has been able to meet customer demand across its wide variety of equipment types. The business has also benefited from a stable and engaged workforce, complimenting the delivery of excellence to customers in the agricultural retail sector and the directors are delighted that this is reflected in the performance of the business.
The financial position of the company has remained stable in light of the profitable performance with net assets of £5,565,741 (2023 - £5,508,679). Net current assets have decreased to £869,964 from £3,534,841 for the year ending 31 December 2023. This is due to the bank borrowing facilities being up for renewal at the year end and therefore reclass to be due within one year. These have been renewed subsequent to the year end. Additionally, a loan with the the loan to a connected party has been reclassified as a fixed asset investment.
The current challenges faced by the UK economy, as well as the general pressures on the supply chain, has driven inflationary pressures that the business is well positioned to deal with as it continues to benefit from stable workforce, strong stock-holding and excellent customer service.
The company's key financial and other performance indicators during the year were as follows:
|
Financial KPIs |
Unit |
2024 |
2023 |
|
Turnover |
£ |
30,552,370 |
30,335,040 |
|
Gross profit margin |
% |
10 |
12 |
|
Net cash flow for the year |
£ |
(155,839) |
(2,326,948) |
|
Net profit before tax |
£ |
681,523 |
1,119,891 |
|
Net current assets |
£ |
869,964 |
3,534,841 |
Principal risks and uncertainties
The principal risks and uncertainties that face the company are considered to be the state of the agricultural industry as a whole within the country and the competition within that market.
Approved and authorised by the
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Halse South West 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 of the company
The directors who held office during the year were as follows:
Dividends
Ordinary dividends were paid out amounting to £Nil (2023: £110,000). The directors recommend a final dividend payment of £Nil (2023: £Nil) be made in respect of the financial year ended 31 December 2024. This dividend has not been recognised as a liability in the financial statements.
Financial instruments
Objectives and policies
The company has exposure to three main types of risk, being liquidity risk and customer credit exposure. The company does not enter into any hedging transactions. The use, and nature, of finance instruments are determined by the directors, in context of trading terms made available to the company by the customers and suppliers, with the objective of securing the liquid and profitability of the company.
Price risk, credit risk, liquidity risk and cash flow risk
Due to the nature of the financial instruments used by the company, there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below.
In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the availability of overdraft facilities at floating rates of interest and stocking loans.
Trade debtors are managed in respect of credit and cash flow risk policies concerning the credit offered to customers, and the regular monitoring of amounts outstanding for both time and limits.
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. Trade creditors are paid in line with agreed credit terms and conditions, subject to correct invoicing.
Future developments
With the sixth generation of the Halse family now actively engaged in the business, robust management and the ongoing commitment to the development of staff, the directors are confident of the future progression of the company, and its continued support for the agricultural sector in the South West of England.
Halse South West Limited
Directors' Report for the Year Ended 31 December 2024
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.
Approved and authorised by the
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Halse South West 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:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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• |
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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.
Halse South West Limited
Independent Auditor's Report to the Members of Halse South West Limited
Opinion
We have audited the financial statements of Halse South West Limited (the 'company') for the year ended 31 December 2024, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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.
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.
Halse South West Limited
Independent Auditor's Report to the Members of Halse South West Limited
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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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 |
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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.
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:
Halse South West Limited
Independent Auditor's Report to the Members of Halse South West Limited
As part of our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to the entity and the industry/sector in which it operates to identify the key laws and regulations affecting the entity. As part of this assessment process we discussed with management the laws and regulations applicable to the company, reviewed certification identified on the company website and other communications and considered findings from previous audits.
The key laws and regulations we identified were Health & Safety at Work legislation, General Data Protection Regulations (GDPR), and Financial Conduct Authority (FCA) regulations.
We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, primarily Companies Act 2006, Corporation Taxes Acts 2009 & 2010, and the Capital Allowances Act 2001.
We discussed with management how the compliance with these laws and regulations is monitored and discussed policies and procedures in place.
We also identified the individuals who have responsibility for ensuring that the entity complies with laws and regulations and deal with reporting any issues if they arise.
As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the entity’s ability to continue trading and the risk of material misstatement to the financial statements.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:
• Enquiries of management regarding their knowledge of any non-compliance with laws and regulations that could affect the financial statements;
• Reviewed legal and professional costs to identify any possible non-compliance or legal costs in respect of non-compliance;
• Enquired with management to understand company's GDPR policy, as well as the occurrence and outcome of any reportable breaches
• Reviewed any health and safety incidents which have been reported under The Reporting of injuries, Diseases and Dangerous Occurrences Regulations 2013 ("RIDDOR") during the year; and
• Reviewed returns to the FCA for consistency with the financial records of the company and any non-compliance.
As part of our enquiries we discussed with management whether there have been any known instances, allegations or suspicions of fraud, of which management confirmed there had been none during or after the period.
We also evaluated the risk of fraud through management override. The key risks we identified were to meet compliance with financial loan covenants and minimise tax liabilities, and we determined that the principal risks were related to cut-off in respect of revenue recognition, management override of controls and stock valuation.
Halse South West Limited
Independent Auditor's Report to the Members of Halse South West Limited
In response to the identified risk, as part of our audit work we:
• Used data analytics to test journal entries throughout the year, for appropriateness;
• Reviewed estimates and judgements made in the accounts for any indication of bias and challenged assumptions used by management in making the estimates; and
• Undertook specific cut-off procedures in respect of revenue recognition.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate omissions, collusion, forgery, misrepresentations, or the override of internal controls. We are also less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements.
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.
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Ground Floor
Blackbrook Gate 1
Blackbrook Business Park
Somerset
TA1 2PX
Halse South West Limited
Profit and Loss Account
Year Ended 31 December 2024
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Note |
2024 |
2023 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
|
|
|
|
Administrative expenses |
( |
( |
|
|
Operating profit |
1,211,703 |
1,707,707 |
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|
Other interest receivable and similar income |
|
|
|
|
Interest payable and similar expenses |
( |
( |
|
|
(530,180) |
(587,816) |
||
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Profit before tax |
|
|
|
|
Tax on profit |
( |
( |
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Profit for the financial year |
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The above results were derived from continuing operations.
Halse South West Limited
Balance Sheet
31 December 2024
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Note |
2024 |
(As restated) |
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Fixed assets |
|||
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Intangible assets |
|
|
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Tangible assets |
|
|
|
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Other financial assets |
1,208,472 |
- |
|
|
|
|
||
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Current assets |
|||
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Stocks |
|
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|
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Debtors |
|
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Cash at bank and in hand |
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|
|
|
|
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||
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
|
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Provisions for liabilities |
( |
( |
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Net assets |
|
|
|
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Capital and reserves |
|||
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Called up share capital |
100 |
400,100 |
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|
Capital redemption reserve |
2,000,000 |
1,600,000 |
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|
Profit and loss account |
3,565,641 |
3,508,579 |
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|
Shareholders' funds |
5,565,741 |
5,508,679 |
Approved and authorised by the
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Company Registration Number: 10231695
Halse South West Limited
Statement of Changes in Equity
Year Ended 31 December 2024
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Share capital |
Capital redemption reserve |
Profit and loss account |
Total |
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At 1 January 2024 |
|
|
|
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Profit for the year |
- |
- |
|
|
|
Redemption of share capital |
(400,000) |
400,000 |
(400,000) |
(400,000) |
|
At 31 December 2024 |
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|
|
|
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Share capital |
Capital redemption reserve |
Profit and loss account |
Total |
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At 1 January 2023 |
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|
|
|
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Profit for the year |
- |
- |
|
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Dividends |
- |
- |
( |
( |
|
Redemption of share capital |
(750,000) |
750,000 |
(750,000) |
(750,000) |
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At 31 December 2023 |
400,100 |
1,600,000 |
3,508,579 |
5,508,679 |
Halse South West Limited
Statement of Cash Flows
Year Ended 31 December 2024
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Note |
2024 |
2023 |
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Cash flows from operating activities |
|||
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Profit for the year |
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Adjustments to cash flows from non-cash items |
|||
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Depreciation and amortisation |
|
|
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Loss on disposal of tangible assets |
|
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Finance income |
( |
( |
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Finance costs |
|
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Corporation tax |
|
|
|
|
|
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||
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Working capital adjustments |
|||
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Decrease/(increase) in stocks |
|
( |
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(Increase)/decrease in debtors |
( |
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Decrease in creditors |
( |
( |
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Cash generated from operations |
|
|
|
|
Corporation tax paid |
( |
( |
|
|
Net cash flow from operating activities |
|
|
|
|
Cash flows from investing activities |
|||
|
Interest received |
|
|
|
|
Acquisitions of tangible assets |
( |
( |
|
|
Proceeds from sale of tangible assets |
|
|
|
|
Net cash flows from investing activities |
( |
( |
|
|
Cash flows from financing activities |
|||
|
Interest paid |
( |
( |
|
|
Repayment of bank borrowing |
(43,863) |
(467,763) |
|
|
Redemption of share capital |
(400,000) |
(750,000) |
|
|
Payments to finance lease creditors |
( |
( |
|
|
Dividends paid |
- |
( |
|
|
Net cash flows from financing activities |
( |
( |
|
|
Net decrease in cash and cash equivalents |
( |
( |
|
|
Cash and cash equivalents at 1 January |
(572,036) |
(295,405) |
|
|
Cash and cash equivalents at 31 December |
(727,875) |
(572,036) |
|
Halse South West Limited
Notes to the Financial Statements
Year Ended 31 December 2024
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General information |
The company is a private company limited by share capital, incorporated in England & Wales.
The address of its registered office is:
England
These financial statements were authorised for issue by the
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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 UK and Republic of Ireland', and the Companies Act 2006. There are no material departures from FRS102
Basis of preparation
These financial statements have been prepared using the historical cost convention.
The functional currency of the company is considered to be pounds sterling because this is the currency of the primary economic environment in which the company operates, and the financial statements are presented to the nearest round pound.
Halse South West Limited
Notes to the Financial Statements
Year Ended 31 December 2024
Going concern
The company made a profit for the year of £457,062 and reported net current assets of £869,964 at the balance sheet date. This was despite the fact that the company’s mortgage of £2,692,519 was reported within current liabilities, due to being up for renewal in 2025. As disclosed in note 25, the directors are pleased to report that the mortgage has been successfully renewed since the balance sheet date and the relationship with the bank remains strong.
The company is highly profitable, but the nature of the business and sector is such that the working capital cycle is generally long and a significant working capital investment in stock is required to operate profitability. This can result in periods of limited headroom within the company’s existing facilities, which comprise a mortgage, bank overdraft and a stocking plan. Whilst the company operates within a sector which makes reliable forecasting extremely difficult, both in terms of sales activity and cash conversion, as a sixth-generation family business, the directors are highly experienced in managing such periods. The company also benefits from long-standing relationships with its bankers, key customers and key suppliers.
On the basis of their assessment of the company’s financial position and resources, including the performance of the company since 31 December 2024, and having considered the impact of the wider economy and conditions in the sector the business operates, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors are satisfied that it remains appropriate for the company to adopt the going concern basis of accounting in preparing these financial statements.
Changes in accounting policy
Prior year restatement
The company previously recognised their stocking loan plan within bank overdrafts on its balance sheet. In the year ended 31 December 2024, the decision was taken to reclassify this balance to be within trade creditors. Therefore the comparative financial information for the year ended 31 December 2023 has been restated.
The financial impact of these restatements as at 31 December 2023 is to decrease loans and borrowings by £5,074,884 and increase trade creditors by £5,074,884. There is no impact on the profit and loss account or the new assets total for the comparative year.
Halse South West Limited
Notes to the Financial Statements
Year Ended 31 December 2024
Key judgements and sources of estimation uncertainty
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 comparative balance of £1,051,999 was previously included within other debtors.
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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The comparative balance of £1,051,999 was previously included within other debtors.
The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are as follows:
Tangible fixed assets are carried at cost, less accumulated depreciation and any subsequent accumulated impairment loss. This requires an estimation in the depreciation rates used and residual values attainable when the assets are sold, as well as an assessment of the ongoing economic contribution of the assets of the company as to whether an indicator of impairment has occurred. The carrying amount is £4,096,576 (2023 - £3,907,379). The comparative balance of £1,051,999 was previously included within other debtors.
Goodwill is considered to have a finite useful life, the directors believe goodwill should be amortised over 10 years. This estimate is based upon the economic climate and no reliable estimate being able to be achieved as required under FRS 102 to amortise over a longer period. The carrying amount is £341,250 (2023 - £498,750). The comparative balance of £1,051,999 was previously included within other debtors.
Stock is measured at the lower of cost and net realisable value. This requires estimation as to the net realisable value of each stock line, as to whether a provision is required. The carrying amount is £9,238,685 (2023 - £13,027,851). The comparative balance of £1,051,999 was previously included within other debtors.
Trade debtors are constantly being managed and are reviewed throughout the year. A provision for doubtful debt is made where recovery of debt is uncertain, this is on a case by case basis. The carrying amount is £3,561,324 (2023 - £3,487,434). The comparative balance of £1,051,999 was previously included within other debtors.
Fixed asset investments are held at cost less any accumulated impairment loss. This requires an estimation in the recoverability of the loan made to a connected party. The directors have considered the current financial position and market activity of the entity as well as expectations. The carrying amount is £1,208,472 (2023 - £Nil). The comparative balance of £1,051,999 was previously included within other debtors.
Halse South West Limited
Notes to the Financial Statements
Year Ended 31 December 2024
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the company.
Revenue relating to the sale of goods is recognised in the profit and loss account on delivery or collection. Where customers are invoiced prior to delivery of goods a deferred income balance arises which is included within accruals and deferred income within current liabilities.
Revenue relating to the sale of services is recognised in the profit and loss account when the service has been provided.
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 corporation 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 on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Freehold buildings |
2% straight line |
|
Plant and equipment |
8% reducing balance |
|
Office equipment |
8 - 15% reducing balance |
|
Motor vehicles |
15% reducing balance |
Goodwill
Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Halse South West Limited
Notes to the Financial Statements
Year Ended 31 December 2024
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:
|
Asset class |
Amortisation method and rate |
|
Goodwill |
10% straight line |
Investments
Investments, comparising of a loan to a connected party, are measured at cost less impairment.
Stocks
Stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. New realisable value is based on selling price less anticipated costs to completion and selling costs. Cost represents the purchase price of goods for resale, new any discounts receivable.
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. The treatment of finance leases is set out in the accounting policy for financial instruments detailed below.
Defined contribution pension obligation
Retirement benefits to employees are provided by a money purchase scheme which is funded by the company. Payments are made to pension trusts which are financially separate from the company. The payments are charged against profit in the year in which they become payable.
Halse South West Limited
Notes to the Financial Statements
Year Ended 31 December 2024
Financial instruments
Classification
• Short term trade and other debtors and creditors;
• Bank loans;
• Cash and bank balances; and
• Hire purchase and finance lease obligations.
All financial instruments are classified as basic.
Recognition and measurement
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.
Except for bank loans and hire purchase and finance lease obligations, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.
Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.
Assets held under hire purchase and finance leases are recognised at the lower of their fair value at the inception of the lease and the present value of the minimum lease payments. They corresponding liability to the lessor is included in the balance sheet as a finance lease obligation. The asset is subsequently measured as discussed in the tangible assets accounting policy above. Finance lease obligations are subsequently measured at amortised cost using the effective interest method.
Halse South West Limited
Notes to the Financial Statements
Year Ended 31 December 2024
|
Turnover |
The analysis of the company's turnover for the year from continuing operations is as follows:
|
2024 |
2023 |
|
|
Sale of goods |
|
|
|
Rendering of services |
|
|
|
Commissions received |
- |
|
|
Other revenue |
|
|
|
|
|
The analysis of the company's turnover for the year by market is as follows:
|
2024 |
2023 |
|
|
UK |
|
|
|
Operating profit |
Arrived at after charging/(crediting)
|
2024 |
2023 |
|
|
Depreciation expense |
|
|
|
Amortisation expense |
|
|
|
Foreign exchange gains |
( |
( |
|
Loss on disposal of property, plant and equipment |
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2024 |
2023 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
Halse South West Limited
Notes to the Financial Statements
Year Ended 31 December 2024
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
|
2024 |
2023 |
|
|
Sales |
|
|
|
Parts |
|
|
|
Workshop |
|
|
|
Administrative |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2024 |
2023 |
|
|
Remuneration |
|
|
|
Auditor's remuneration |
|
2024 |
2023 |
|
|
Audit of the financial statements |
|
|
|
Other interest receivable and similar income |
|
2024 |
2023 |
|
|
Other interest received |
|
|
|
Interest payable and similar expenses |
|
2024 |
2023 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
|
Interest expense on other finance liabilities |
|
|
|
|
|
Halse South West Limited
Notes to the Financial Statements
Year Ended 31 December 2024
|
Taxation |
Tax charged/(credited) in the profit and loss account
|
2024 |
2023 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK of
The differences are reconciled below:
|
2024 |
2023 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Increase in UK and foreign current tax from adjustment for prior periods |
- |
|
|
Tax increase from effect of capital allowances and depreciation |
|
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
- |
|
Deferred tax credit from unrecognised temporary difference from a prior period |
( |
( |
|
Deferred tax (credit)/expense relating to changes in tax rates or laws |
( |
|
|
Total tax charge |
|
|
Halse South West Limited
Notes to the Financial Statements
Year Ended 31 December 2024
|
Intangible assets |
|
Goodwill |
Total |
|
|
Cost or valuation |
||
|
At 1 January 2024 |
|
|
|
At 31 December 2024 |
|
|
|
Amortisation |
||
|
At 1 January 2024 |
|
|
|
Amortisation charge |
|
|
|
At 31 December 2024 |
|
|
|
Carrying amount |
||
|
At 31 December 2024 |
|
|
|
At 31 December 2023 |
|
|
Halse South West Limited
Notes to the Financial Statements
Year Ended 31 December 2024
|
Tangible assets |
|
Freehold land and buildings |
Plant and equipment |
Office equipment |
Motor vehicles |
Total |
|
|
Cost or valuation |
|||||
|
At 1 January 2024 |
|
|
|
|
|
|
Additions |
|
|
|
|
|
|
Disposals |
- |
- |
( |
( |
( |
|
At 31 December 2024 |
|
|
|
|
|
|
Depreciation |
|||||
|
At 1 January 2024 |
|
|
|
|
|
|
Charge for the year |
|
|
|
|
|
|
Eliminated on disposal |
- |
- |
( |
( |
( |
|
At 31 December 2024 |
|
|
|
|
|
|
Carrying amount |
|||||
|
At 31 December 2024 |
|
|
|
|
|
|
At 31 December 2023 |
|
|
|
|
|
Included within the net book value of freehold land and buildings above of £2,870,876 (2023 - £2,931,385) is £313,750 (2023 - £313,750) of freehold land which is not depreciated.
Halse South West Limited
Notes to the Financial Statements
Year Ended 31 December 2024
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
|
2024 |
2023 |
|
|
Plant and equipment |
- |
16,740 |
|
Motor vehicles |
267,320 |
128,300 |
|
267,320 |
145,040 |
|
Other investments |
|
Loans to connected parties |
Total |
|
|
Non-current financial assets |
||
|
Cost or valuation |
||
|
Transfers from other debtors |
1,208,472 |
1,208,472 |
|
At 31 December 2024 |
1,208,472 |
1,208,472 |
|
Carrying amount |
||
|
At 31 December 2024 |
|
1,208,472 |
As described in the related parties note, these investments relate to a long term loan provided to a related party.
|
Stocks |
|
2024 |
2023 |
|
|
Finished goods and goods for resale |
|
|
Halse South West Limited
Notes to the Financial Statements
Year Ended 31 December 2024
|
Debtors |
|
2024 |
2023 |
|
|
Trade debtors |
|
|
|
Other debtors |
|
|
|
Prepayments |
|
|
|
|
|
|
Cash and cash equivalents |
|
2024 |
(As restated) |
|
|
Cash on hand |
|
|
|
Cash at bank |
|
|
|
|
|
|
|
Bank overdrafts |
( |
( |
|
Cash and cash equivalents in statement of cash flows |
(727,875) |
(572,036) |
|
Analysis of cash and cash equivalents and net debt |
|
At 1 January 2024 |
Cash flow |
Non-cash movement |
At 31 December 2024 |
||
|
£ |
£ |
£ |
£ |
||
|
Cash at bank and on hand |
9,850 |
(1,128) |
- |
8,722 |
|
|
Cash and cash equivalents |
9,850 |
(1,128) |
- |
8,722 |
|
|
Finance lease obligations |
(58,319) |
(555,774) |
- |
(614,093) |
|
|
Bank loans |
(2,736,382) |
43,863 |
(2,692,519) |
||
|
Other loans |
(315,000) |
- |
(315,000) |
||
|
Net debt |
(3,099,851) |
(513,039) |
- |
(3,612,890) |
Halse South West Limited
Notes to the Financial Statements
Year Ended 31 December 2024
|
Creditors |
|
Note |
2024 |
(As restated) |
|
|
Due within one year |
|||
|
Loans and borrowings |
|
|
|
|
Trade creditors |
|
|
|
|
Social security and other taxes |
|
|
|
|
Other creditors |
|
|
|
|
Accruals |
|
|
|
|
Corporation tax |
529,650 |
502,671 |
|
|
|
|
||
|
Due after one year |
|||
|
Loans and borrowings |
|
|
|
Loans and borrowings |
Current loans and borrowings
|
2024 |
2023 |
|
|
Bank borrowings |
|
|
|
Bank overdrafts |
|
|
|
Hire purchase liabilities |
|
|
|
|
|
|
Halse South West Limited
Notes to the Financial Statements
Year Ended 31 December 2024
Non-current loans and borrowings
|
2024 |
2023 |
|
|
Bank borrowings |
- |
|
|
Hire purchase liabilities |
|
|
|
Other borrowings |
|
|
|
|
|
|
Bank borrowings
|
|
|
Bank loans and overdrafts are secured by way of a debenture over the assets of the company, a first legal charge over the freehold property belonging to the company and a limited guarantee given by one of the directors. |
Hire purchase liabilities
Hire purchase liabilities is denominated in sterling with a nominal interest rate of 11.2%, and the final instalment is due on 2 February 2029. The carrying amount at year end is £614,093 (2023 - £58,319).
Hire purchase liabilities are secured on the assets to which they relate.
Other borrowings
Other borrowings comprise of loans from related parties that require one year and a day notice for repayment. Interest is charged at 7.75%.
|
Obligations under leases and hire purchase contracts |
Finance leases
The total of future minimum lease payments is as follows:
|
2024 |
2023 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
Halse South West Limited
Notes to the Financial Statements
Year Ended 31 December 2024
|
Deferred tax provision |
|
Deferred tax |
Total |
|
|
At 1 January 2024 |
|
|
|
Decrease in existing provisions |
|
|
|
At 31 December 2024 |
|
|
|
|
||
|
Pension scheme |
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 £
|
Share capital |
Allotted, called up and fully paid shares
|
2024 |
2023 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
75 |
|
75 |
|
|
|
25 |
|
25 |
|
|
- |
- |
|
400,000 |
|
|
|
|
|
|
Redeemable preference shares
|
The |
On 13 December 2024 the company redeemed 400,000 preference shares at par.
Rights, preferences and restrictions
|
Ordinary A and B shares have the following rights, preferences and restrictions: |
Halse South West Limited
Notes to the Financial Statements
Year Ended 31 December 2024
|
Dividends |
Dividends paid in relation to prior year
|
2024 |
2023 |
|||
|
Interim dividend of £Nil (2023 - £ |
- |
|
||
|
Interim dividend of £Nil (2023 - £ |
- |
|
||
|
- |
|
|
Non adjusting events after the financial period |
|
|
|
Related party transactions |
|
Transactions with directors |
|
2024 |
At 1 January 2024 |
Advances to director |
Repayments by director |
At 31 December 2024 |
|
The Directors |
||||
|
Director A |
( |
|
( |
( |
|
Director B |
( |
|
( |
|
|
(158,984) |
720,254 |
(583,675) |
(22,405) |
|
|
2023 |
At 1 January 2023 |
Advances to director |
Repayments by director |
At 31 December 2023 |
|
The Directors |
||||
|
Director A |
|
|
( |
( |
|
Director B |
|
|
( |
( |
|
370,167 |
441,652 |
(970,803) |
(158,984) |
|
Halse South West Limited
Notes to the Financial Statements
Year Ended 31 December 2024
Summary of transactions with other related parties
An amount of £180,000 (2023 - £180,000) is repayable to a related party. During the year, interest paid totalled £13,950 (2023 - £13,950). This individual is considered to be a related party due to being a close family member of the directors.
An amount of £75,000 (2023 - £75,000) is repayable to a related party. During the year, interest paid totalled £5,813 (2023 - £5,813). This individual is considered to be a related party due to being a close family member of the directors.
The directors made a loan to another company, registered in England & Wales, which is a related party by vitrue of having a director and shareholder in common. The total loan outstanding as at the year end was £1,208,472 (2023 - £1,318,784). The loan has been included within investments for the year ending 31 December 2024. During the year there were sales made to this related party of £25,201 (2023 - £25,561) and purchases made from the related party of £nil (2023 - £266). In the prior year, the year end balance was made up of trade debtors of £270,221, trade creditors of £3,436 and loans receivable of £1,051,999.