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Registered number: 11747901










HARDWATER HOLDINGS LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

 
HARDWATER HOLDINGS LIMITED
 
 
COMPANY INFORMATION


Directors
N M Johnson 
R S Johnson 




Company secretary
A J Frid



Registered number
11747901



Registered office
Balmoral House
Kettering Venture Park

Kettering

Northamptonshire

NN15 6XU




Independent auditor
MHA

The Pinnacle

150 Midsummer Boulevard

Milton Keynes

MK9 1LZ




Bankers
Barclays Bank plc
1 Churchill Place

London

E14 5HP





 
HARDWATER HOLDINGS LIMITED
 

CONTENTS



Page
Group Strategic Report
 
1 - 5
Directors' Report
 
6 - 9
Independent Auditor's Report
 
10 - 13
Consolidated Statement of Comprehensive Income
 
14
Consolidated Balance Sheet
 
15 - 16
Company Balance Sheet
 
17
Consolidated Statement of Changes in Equity
 
18
Company Statement of Changes in Equity
 
19
Consolidated Statement of Cash Flows
 
20 - 21
Consolidated Analysis of Net Debt
 
22
Notes to the Financial Statements
 
23 - 45


 
HARDWATER HOLDINGS LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction and principal activities
 
The Directors present their Strategic Report and financial statements for the year ended 31 December 2024.
The principal activities of the Group are the supply of motor vehicles on long-term contract hire to major UK companies and through its principal subsidiary companies, the operation of franchised dealerships, a car supermarket and vehicle fleet management.
The principal activity of the Company continued to be that of a holding company.
Business review
Hardwater Holdings

The Parent Company itself does not trade. The Group performed well during the year ended 31 December 2024, delivering a 11% increase in turnover, and recording profit before tax of £10.72M (2023: £12.69M). 

The Group’s primary long-term objective continues to be driving sustained organic growth through operational excellence, positioning ourselves as leaders in the sectors we serve.  

The principal subsidiaries recorded the following:
Grosvenor Contracts Leasing

The principal activities of the Company are long-term vehicle contract hire with maintenance, fleet management and daily vehicle hire brokering. Both owned and managed fleets are predominantly cars and light commercial vehicles with a growing number of plant and other ad-hoc transport items for corporate and business customers.

The UK vehicle leasing sector grew modestly by 0.65% in 2024, reflecting resilience amid economic uncertainty. The business leasing market remained stable, supported by the increasing popularity of salary sacrifice schemes. 

Electric vehicles represented an increasing proportion of the total leasing market, with personal tax incentives being a key driver of this trend. Conversely, van leasing volumes fell in the UK, driven by the prohibitive cost of new diesel vans and limited uptake of electric vans, which remain expensive and logistically challenging. Many businesses opted to extend existing leases rather than upgrading, citing affordability and operational concerns.

The Company delivered a strong performance throughout 2024, despite market pressures stemming from declining used electric vehicle (EV) values. Turnover rose to £66.4 million (2023: £52.7 million), with a reported profit before tax of £8.3 million (2023: £10.2 million). This was also our third most successful year for new vehicle orders, achieved while managing a record number of vehicles in extension.

Our strategic focus remains on maintaining a balanced fleet mix, across both cars and light commercial vehicles, and between internal combustion engines (ICE) and battery electric vehicles (BEV). We continue to prioritise quality over volume, and although we have set our highest-ever order target for 2025, we remain committed to securing the right business rather than pursuing growth at the expense of deal quality.
Interactive Fleet Management
The principal activity of the Company is to provide fleet management for customer fleets including consultancy, car policy and vehicle procurement advice, maintenance, taxing, short-term hire and fines management. Operating profit increased to £0.9 million and net assets increased by £1.0 million to £3.7 million in the year.

Page 1

 
HARDWATER HOLDINGS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Business review (continued)
 
York Ward & Rowlatt
The Company continued its core operations as a franchised Vauxhall retailer, specialising in new and used vehicle sales, parts distribution, and servicing.
The UK automotive sector grew in 2024, with 1.95 million new vehicle registrations (up 8%). EVs accounted for 27% of sales (approx. 525,000 units), driven by infrastructure improvements, new model launches, and regulatory incentives.
The Zero Emission Vehicle (ZEV) mandate came into effect, requiring 22% of car sales and 10% of LCV’s to be EVs in 2024. The ZEV mandate has acted as a catalyst for electrification in the UK, reshaping manufacturer priorities, accelerating EV adoption, and forcing industry-wide investment in training and infrastructure. However, it also exposed supply chain imbalances, pricing pressures, and a growing divide between fleet and private buyer readiness.
The Company performed well in 2024. Turnover rose 7.5% to £62 million, reflecting growth in accident repair and trade parts sales and net profit before tax increased to £1.14 million (1.8% margin). New vehicle sales contracted 5% as the manufacturer prioritised ZEV mandate compliance. Conversely, aftersales revenue rose 6% (£0.6 million) to £10.2 million. Indirect costs rose 9% to £1.4 million due primarily to a 67% rise in insurance costs.
Croyland Motors
The Company’s core activities are retailing used cars, light commercial vehicles (LCV's) and leisure vehicles. During the trading year, it also distributed new Swift Motorhomes and Camper King camper conversions, provided vehicle repair services, and operated a Shell-branded forecourt.
Turnover rose £0.2 million (6.9%) to £30.7 million, but gross profit fell £0.3 million, resulting in a net loss of £0.1 million. This was due to a year-end stock adjustment following a strategic decision to reduce leisure vehicle inventory, reflecting subdued demand as international travel resumed. The Board has since ended partnerships with Swift Motorhomes and Camper King.
Used car and van turnover grew 2.1%, driven by higher values rather than volume growth. Competitive sourcing conditions continued to pressure margins.
Aftersales departments performed strongly, achieving 24% gross profit growth, supported by a new Class 4 MOT station, in-house pre-delivery work, and a parts department.
Fuel sales increased £1.4 million, aided by stable prices despite EV growth.

Page 2

 
HARDWATER HOLDINGS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Principal risks and uncertainties
 
The key business risks that could affect the Group are set out below.
Economic
The primary risk to the Group is volatility in used vehicle values, which can significantly impact closure profits. To mitigate this, we use specialist industry data and apply our extensive experience in vehicle sales, guided by a conservative pricing strategy aligned with our long-term customer focus. Given the uncertainty around EV technology and depreciation, we apply a higher impairment to electric vehicles.
I
nterest rates
Interest rates remained elevated for most of 2024, with modest reductions in August and November. The cost of funds therefore remained high, as the Bank of England continued to balance inflationary pressures with monetary policy decisions.
Vehicle Supply & ZEV Mandates
Vehicle supply has improved over the past year, enabling delivery of backlogged orders. However, the Zero Emission Vehicle (ZEV) mandate continues to skew powertrain availability, with manufacturers prioritising battery electric vehicles to meet compliance targets.
Aftersales Capacity / Agency Model
Workshop shortages, parts delays, and rising costs have significantly increased vehicle operating expenses. These pressures are expected to intensify as manufacturers transition to agency sales models.
Financial risk management
The Group is exposed to financial risks including funding availability, interest rate fluctuations, credit risk, and liquidity risk. Mitigation measures include:
• All customers and prospects undergo initial credit checks, with periodic reviews or reassessments for          significant credit increases;
• Strong relationships with major banks ensure access to competitively priced funding with ample                   headroom;
• Cash is managed prudently, with substantial balances monitored weekly by Directors; and
• Fixed-rate loans are used for leased asset purchases, matched to customer rental profiles to mitigate          interest rate exposure.

Financial key performance indicators
 
The Directors use a number of key performance indicators to monitor business performance against budget including orders, contract renewal rate, fleet spread and customer satisfaction indices but the principal measures are:
Pre-tax profit margin of 7.4% (2023: 9.7%) 
Debtor days at 17.5 (2023: 23.0).

Other key performance indicators
 
Staff turnover across the Group was at 17.3% (2023: 21.3%).

Page 3

 
HARDWATER HOLDINGS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Directors' statement of compliance with duty to promote the success of the Group
 
The directors of the Group are required under section 172 of the Companies Act 2006 to act in a way that they consider, in good faith, would most likely promote the success of the company for the benefit of its members as a whole. In doing so, the directors must have regard (among other matters) to:
• The likely long-term consequences of their decisions;
• The interests of the company’s employees;
• The need to foster relationships with suppliers, customers, and others;
• The impact of the company’s operations on the community and the environment;
• The desirability of maintaining a reputation for high standards of business conduct; and
• The need to act fairly between members of the company.
This statement explains how the directors have had regard to these matters during the year ended 31 December 2024.
Considering the long-term
The Board conducts regular reviews of the Group’s strategy, business model, and principal risks. In its decision-making, the Board carefully balances short-term performance with long-term sustainability, ensuring the Group remains resilient and well-positioned for future success.
Engagement with employees
The Board remains committed to fostering a workplace culture that prioritises employee engagement, wellbeing, and continuous development. Throughout the year, we collaborate closely with our inter-departmental Employee Engagement and Wellbeing Teams, actively listening to feedback and implementing initiatives that support a positive and inclusive working environment for all.
Relationships with suppliers, customers, and others
The Group’s reputation and performance are built on strong, collaborative relationships with our suppliers and customers. Many of these partnerships have been in place for years, reflecting the trust, consistency, and mutual respect that underpin the way we do business.
Community and environmental impact
The Directors recognise the importance of operating sustainably and responsibly. During the year, we:
• Continued to invest in the electrification of our fleet, reducing our carbon footprint; and
• Expanded our community engagement through charity partnerships and volunteering programmes.
Standards of business conduct
The Board promotes a culture of integrity, accountability, and transparency. Key steps included:
• Regular review of the Group’s ethics and compliance framework; and
• Ongoing training on anti-bribery, corruption, and data protection.
Fair treatment of shareholders
The Board is committed to acting fairly between members and ensuring transparency in all decision-making processes. As our shareholders are also directors of the Group, they play an active role in shaping strategic direction and operational decisions, reinforcing a culture of accountability and shared responsibility.


 
Page 4

 
HARDWATER HOLDINGS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Embedding Section 172 in governance
Section 172 considerations are embedded within our governance framework. Directors consistently evaluate and challenge decisions on long-term outcomes and the implications for our stakeholders. This approach reinforces our commitment to responsible decision-making and sustainable value creation.


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



................................................
N M Johnson
Director

Date: 23 September 2025

Page 5

 
HARDWATER HOLDINGS 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.

Results and dividends

The profit for the year, after taxation, amounted to £8,003,325 (2023 - £9,718,852).

Dividends of £2,050,000 were paid during the year (2023: £3,681,389).

Directors

The Directors who served during the year were:

N M Johnson 
R S Johnson 

Future developments

The Directors intend for the Group to continue its strategy of organic growth.

Engagement with suppliers, customers and others

The Directors recognise the need to develop the Group's business relationships with suppliers, customers, lenders and support services. One or more Directors are in regular contact with key parties and work with these interested parties to foster mutually beneficial and informed relationships.

Page 6

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

Greenhouse gas emissions, energy consumption and energy efficiency action

As a family-owned company trading in a high-profile carbon generating industry we are very aware of our social and corporate responsibilities. The Group is committed to using energy efficiently to minimise environmental impact, contribute to sustainability of global resources and to encourage employees to value the importance of their contribution to the protection of the environment.
The table below sets out our usage for the period 1 January 2024 to 31 December 2024. The carbon figures have been calculated using the BEIS 2024 conversion factors and cover total emission data for scopes 1,2 and 3.

For the year ended 31 December 2024
Fuel
       Consumption (kWh) Kg of CO2e  
Electricity (scope 2)    450,500    93,276 
Gas (scope 1)     713,445    130,489                                                                                                                                                                                                                      Vehicle fuel (scope 1)    121,044,143   31,992,763
TOTAL EMISSIONS    122,208,088   32,216,528
Turnover          £128,369,689*
Intensity ratio for total emissions :       251.0 kg of CO2e per £'000 of turnover*
For the year ended 31 December 2023
Fuel       Consumption (kWh) Kg of CO2e
  
Electricity (scope 2)    433,945    64,671 
Gas (scope 1)     723,535    132,355                                                                                                                                                                                                                      Vehicle fuel (scope 1)    96,514,938    25,243,049
TOTAL EMISSIONS    97,672,418   25,440,075
Turnover          £110,560,228*
Intensity ratio for total emissions :       230.1 kg of CO2e per £'000 of turnover*
* The turnover only includes turnover for Grosvenor Contracts Leasing Limited and York Ward & Rowlatt Limited. No other group entities are included in this intensity metric as they are not required under Streamlined Energy and Carbon Reporting ("SECR").

Energy Efficient Actions
To improve our energy efficiency and reduce our carbon footprint, we have implemented several initiatives, including:
• Electrifying our own fleet (now 85% electrified and 60% fully electric);
• Upgrading lighting systems to energy-efficient LEDs across all our showrooms and service areas;
• Installing energy management systems to monitor and optimise energy use in real time;
• Conducting regular maintenance on our heating, ventilation, and air conditioning (HVAC) systems to            ensure they operate at peak efficiency; and
• Promoting energy-saving practices among our staff through training and awareness.



 
Page 7

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

Commitment to Continuous Improvement
We understand that addressing climate change is an ongoing journey, and we are committed to continually improving our energy efficiency and reducing our emissions. In the coming year, we plan to:
• Explore renewable energy options at our premises in 2025
• Continue to enhance our vehicle fleet with higher numbers of electric and hybrid models to reduce fuel        consumption.
Scope and Operational Boundaries
We have reported on emissions within our control and include those generated from office heating and lighting, the use of staff cars for business journeys and the delivery and collection of cars and vans used in the leasing business.

Disclosure of information to auditor

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 auditor is 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 auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditor

The auditor, MHA, previously traded through the legal entity MacIntyre Hudson LLP. In response to regulatory changes, MacIntyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP.
The auditor, MHAwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Page 8

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

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;

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

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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.

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





................................................
N M Johnson
Director

Date: 23 September 2025

Page 9

 
HARDWATER HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HARDWATER HOLDINGS LIMITED
 

Opinion


We have audited the financial statements of Hardwater Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated and Company Balance Sheets, the Consolidated Statement of Cash Flows, the Consolidated and Company Statement of Changes in Equity and the related notes, including 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 Auditor's 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 10

 
HARDWATER HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HARDWATER HOLDINGS LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The Directors are responsible for the other information contained within the Annual 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.


Page 11

 
HARDWATER HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HARDWATER HOLDINGS LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 9, 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.


Auditor's responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these 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:
 
Enquiry of management and those charged with governance around actual and potential litigation and         claims;
A review  of legal and professional expense nominal accounts for any indication of non-compliance with laws and regulations.
Performing audit work over the risk of management override of controls, including testing of journal and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business, and reviewing accounting estimates for bias;
Reviewing minutes of meetings of those charged with governance; and
Reviewing financial statement disclosures and testing to support documentation to assess compliance with applicable laws and regulations.


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 or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 Auditor's Report.


Page 12

 
HARDWATER HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HARDWATER HOLDINGS 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 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.





Victoria Brown FCA (Senior Statutory Auditor)
for and on behalf of
MHA, Statutory auditor
Milton Keynes, United Kingdom
 

24 September 2025
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542).
Page 13

 
HARDWATER HOLDINGS LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
£
£

  

  

Turnover
 4 
144,997,600
130,560,275

Cost of sales
  
(122,830,538)
(108,903,253)

Gross profit
  
22,167,062
21,657,022

Administrative expenses
  
(14,336,463)
(11,185,410)

Other operating income
 5 
1,345,477
1,708,027

Fair value movements
  
251,349
118,967

Operating profit
 6 
9,427,425
12,298,606

Profit on disposal of investments
  
41,552
-

Interest receivable and similar income
 10 
1,602,956
730,325

Interest payable and similar expenses
 11 
(347,204)
(342,560)

Profit before taxation
  
10,724,729
12,686,371

Tax on profit
 12 
(2,721,404)
(2,967,519)

Profit for the financial year
  
8,003,325
9,718,852

Profit for the year attributable to:
  

Owners of the parent Company
  
8,003,325
9,718,852

  
8,003,325
9,718,852

There were no recognised gains and losses for 2024 or 2023 other than those included in the Consolidated Statement of Comprehensive Income.

There was no other comprehensive income for 2024 (2023: £NIL).

The notes on pages 23 to 45 form part of these financial statements.

Page 14

 
HARDWATER HOLDINGS LIMITED
REGISTERED NUMBER: 11747901

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 15 
697,715
-

Tangible assets
 16 
201,967,198
175,900,832

Investments
 17 
3,627,619
3,927,929

Investment property
 18 
10,925,227
9,230,721

  
217,217,759
189,059,482

Current assets
  

Stocks
 19 
10,436,426
17,995,922

Debtors: amounts falling due within one year
 20 
8,529,673
14,756,251

Current asset investments
 21 
21,000,000
13,379,413

Cash at bank and in hand
 22 
20,530,233
17,793,385

Current liabilities
  
60,496,332
63,924,971

Creditors: amounts falling due within one year
 23 
(88,662,576)
(92,789,158)

Net current liabilities
  
 
 
(28,166,244)
 
 
(28,864,187)

Total assets less current liabilities
  
189,051,515
160,195,295

Non current liabilities
  

Creditors: amounts falling due after more than one year
 24 
(129,288,694)
(106,676,339)

Provisions for liabilities
  

Deferred taxation
 26 
(592,502)
(301,962)

  
 
 
(592,502)
 
 
(301,962)

Net assets
  
59,170,319
53,216,994


Capital and reserves
  

Called up share capital 
 27 
47,432,414
47,432,414

Capital redemption reserve
 28 
2,567,586
2,567,586

Merger reserve
 28 
(44,825,000)
(44,825,000)

Profit and loss account
 28 
53,995,319
48,041,994

  
59,170,319
53,216,994


Page 15

 
HARDWATER HOLDINGS LIMITED
REGISTERED NUMBER: 11747901
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2024

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




................................................
N M Johnson
Director

Date: 23 September 2025

The notes on pages 23 to 45 form part of these financial statements.

Page 16

 
HARDWATER HOLDINGS LIMITED
REGISTERED NUMBER: 11747901

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Investments
 17 
51,760,132
51,760,132

Current assets
  

Debtors: amounts falling due within one year
 20 
2,672,661
2,672,661

Current liabilities
  
2,672,661
2,672,661

Creditors: amounts falling due within one year
 23 
(36,340)
(14,895)

Net current assets
  
 
 
2,636,321
 
 
2,657,766

Total assets less current liabilities
  
54,396,453
54,417,898

  

  

Net assets
  
54,396,453
54,417,898


Capital and reserves
  

Called up share capital 
 27 
47,432,414
47,432,414

Capital redemption reserve
 28 
2,567,586
2,567,586

Profit and loss account
 28 
4,396,453
4,417,898

  
54,396,453
54,417,898


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




................................................
N M Johnson
Director

Date: 23 September 2025

The notes on pages 23 to 45 form part of these financial statements.

Page 17

 
HARDWATER HOLDINGS LIMITED
 

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


Called up share capital
Capital redemption reserve
Merger reserve
Profit and loss account
Total equity

£
£
£
£
£


At 1 January 2023
47,432,414
2,567,586
(44,825,000)
42,004,531
47,179,531


Comprehensive income for the year

Profit for the year
-
-
-
9,718,852
9,718,852

Dividends: Equity capital
-
-
-
(3,681,389)
(3,681,389)



At 1 January 2024
47,432,414
2,567,586
(44,825,000)
48,041,994
53,216,994


Comprehensive income for the year

Profit for the year
-
-
-
8,003,325
8,003,325

Dividends: Equity capital
-
-
-
(2,050,000)
(2,050,000)


At 31 December 2024
47,432,414
2,567,586
(44,825,000)
53,995,319
59,170,319


The notes on pages 23 to 45 form part of these financial statements.

Page 18

 
HARDWATER HOLDINGS LIMITED
 

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


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£


At 1 January 2023
47,432,414
2,567,586
4,432,793
54,432,793


Comprehensive income for the year

Profit for the year
-
-
3,666,494
3,666,494

Dividends: Equity capital
-
-
(3,681,389)
(3,681,389)



At 1 January 2024
47,432,414
2,567,586
4,417,898
54,417,898


Comprehensive income for the year

Profit for the year
-
-
2,028,555
2,028,555

Dividends: Equity capital
-
-
(2,050,000)
(2,050,000)


At 31 December 2024
47,432,414
2,567,586
4,396,453
54,396,453


The notes on pages 23 to 45 form part of these financial statements.

Page 19

 
HARDWATER HOLDINGS 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
8,003,325
9,718,852

Adjustments for:

Amortisation of intangible assets
32,065
-

Depreciation of tangible assets
36,392,788
31,862,473

Profit on disposal of tangible assets
(3,078,445)
(7,629,521)

Interest paid
11,003,464
7,921,259

Interest received
(1,602,956)
(730,325)

Taxation charge
2,721,404
2,967,519

Decrease/(increase) in stocks
7,559,496
(7,716,726)

Decrease/(increase) in debtors
6,226,578
(2,066,280)

(Decrease)/increase in creditors
(9,248,211)
7,742,666

Revaluation of investment properties
(4,363)
(118,967)

Corporation tax paid
(984,346)
(1,442,540)

Revaluation of listed investments
(246,986)
(236,584)

Net cash generated from operating activities

56,773,813
40,271,826


Cash flows from investing activities

Purchase of intangible fixed assets
(729,780)
-

Purchase of tangible fixed assets
(83,752,592)
(87,859,058)

Sale of tangible fixed assets
24,371,883
21,124,524

Purchase of investment properties
(1,690,142)
(1,027,831)

Purchase of listed investments
(2,072,784)
(80,000)

Sale of listed investments
2,661,632
-

Interest received
1,602,956
730,325

HP interest paid
(10,656,260)
(7,578,699)

Purchase of current asset investments
(7,620,587)
(7,379,413)

Net cash from investing activities

(77,885,674)
(82,070,152)

Cash flows from financing activities

Repayment of/new finance leases
26,245,913
45,517,472

Dividends paid
(2,050,000)
(3,681,389)

Interest paid
(347,204)
(342,560)

Net cash used in financing activities
23,848,709
41,493,523
Page 20

 
HARDWATER HOLDINGS LIMITED
 

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


2024
2023

£
£



Net increase/(decrease) in cash and cash equivalents
2,736,848
(304,803)

Cash and cash equivalents at beginning of year
17,793,385
18,098,188

Cash and cash equivalents at the end of year
20,530,233
17,793,385


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
20,530,233
17,793,385

20,530,233
17,793,385


The notes on pages 23 to 45 form part of these financial statements.

Page 21

 
HARDWATER HOLDINGS LIMITED
 

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





At 1 January 2024
Cash flows
New finance leases
At 31 December 2024
£

£

£

£

Cash at bank and in hand

17,793,385

2,736,848

-

20,530,233

Finance leases

(157,670,413)

57,251,248

(83,497,161)

(183,916,326)

Liquid investments

13,379,413

7,620,587

-

21,000,000


(126,497,615)
67,608,683
(83,497,161)
(142,386,093)

The notes on pages 23 to 45 form part of these financial statements.

Page 22

 
HARDWATER HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.


General information

Hardwater Holdings Limited is a private company limited by shares, registered in England, registered number 11747901. 
The registered office and principal place of business is Balmoral House, Kettering Venture Park, Kettering, Northamptonshire, NN15 6XU. 
The principal activities of the Group are the supply of motor vehicles on long-term contract hire to major UK companies and through its principal subsidiary companies, the operation of franchised dealerships, a car supermarket and vehicle fleet management.
The principal activity of the Company continued to be that of a holding company.
The Company and the Group's functional and presentational currency is British Pound Sterling and the consolidated financial statements are prepared in round pounds.

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 Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income 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 merger accounting. 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 Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.3

Going concern

Having considered the forecasted performance and cashflow of the Group and Company the Directors have a reasonable expectation that the Group and Company will have adequate resources to continue in operational existence for the foreseeable future. Accordingly the Group and Company continue to adopt the going concern basis in preparing the annual report and financial statements.

Page 23

 
HARDWATER HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.5

Operating leases: the Group as lessor

Rental income from operating leases is credited to the Consolidated Statement of Comprehensive Income on a straight-line basis over the lease term.

 
2.6

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to the Consolidated Statement of Comprehensive Income on a straight-line basis over the lease term.

Page 24

 
HARDWATER HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

  
2.7

Hire purchase and finance lease agreements

Assets acquired for use in the business under a Hire Purchase Agreement are capitalised. The interest on the agreement in respect of contract hire, staff and relief vehicles is charged to the Consolidated Statement of Comprehensive Income or contracts in progress account over the life of the agreement, on a straight line basis. This accounting policy matches the costs with the straight line rental income and is therefore also consistent with the treatment of depreciation relating to the assets.
Where the Group enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a finance lease. The asset is recorded in the balance sheet as a tangible fixed asset and is depreciated in accordance with the above depreciation policies. Future instalments under such leases, net of finance charges, are included within creditors. Rentals payable are apportioned between the finance element, which is charged to the Statement of comprehensive income on a straight line basis, and the capital element which reduces the outstanding obligation for future instalments.
This accounting policy departs from FRS102 section 11 which states that interest should be allocated during the lease term so as to produce a constant periodic rate of charge on the outstanding obligation. This departure from FRS102 section 11 is required in order to give a true and fair view of the group's income and expenditure deriving from assets on hire purchase. 
If the accounting policy followed FRS102 section 11 an increase in interest of £2,352,142 (2023:  £4,327,417) would have been charged to the contracts in progress account at the year end.

  
2.8

Contracts in progress

Contracts in progress are included in trade creditors and represent the difference between income receivable on contracts and the expenditure incurred on those contracts. An amount is recognised at the commencement of each contract representing a fixed contribution towards overheads. 
Other than the contribution towards overheads taken at the commencement of a contract, no profit is taken on open contracts as in the opinion of the directors the outcome of such contracts cannot be assessed until the completion of the contract. Where it is apparent that the net income for contracts for a particular customer or type of vehicle is lower than total expenditure, provision is made against those contracts. Net income means total contract income receivable plus selling price of the vehicle. 
Indirect overheads are charged to the Consolidated Statement of Comprehensive Income in the period in which they are incurred. No indirect overheads are carried forward in the contracts in progress account.

  
2.9

Interest income

Interest income is recognised in the Consolidated Statement of Comprehensive Income using the effective interest method.

 
2.10

Finance costs

Finance costs are charged to the Consolidated Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 25

 
HARDWATER HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

  
2.11

Borrowing costs

All borrowing costs are recognised in the Consolidated Statement of Comprehensive Income in the year in which they are incurred.

 
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 the Consolidated Statement of Comprehensive Income when they fall due. Amounts not paid are shown in other creditors as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

 
2.13

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income 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. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


Page 26

 
HARDWATER HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.14

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Computer software
-
10
years

 
2.15

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.

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
-
1-2% per annum - straight-line
Plant and machinery
-
33% per annum - straight-line
Motor vehicles
-
Over the vehicle contract length - straight line

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 the Consolidated Statement of Comprehensive Income.

 
2.16

Investment property

Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Consolidated Statement of Comprehensive Income.

 
2.17

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in listed company shares are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Consolidated Statement of Comprehensive Income for the period.

Page 27

 
HARDWATER HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.18

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Consolidated Statement of Comprehensive Income.
Stock held on consignment is accounted for in the Balance Sheet when the terms of the consignment agreement and commercial practice indicate that the principal benefit of owning the stock and principal risks of ownership rest with the Group.

 
2.19

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice. 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.

Page 28

 
HARDWATER HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.20

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Group's Balance Sheet when the Group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through the Consolidated Statement of Comprehensive Income) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the Consolidated Statement of Comprehensive Income. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the Consolidated Statement of Comprehensive Income. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial assets have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the assets' original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the the Consolidated Statement of Comprehensive Income.
 
Page 29

 
HARDWATER HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.20
Financial instruments (continued)


Basic financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through the Consolidated Statement of Comprehensive Income). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.

 
2.21

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.

Page 30

 
HARDWATER HOLDINGS 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

In the application of the Group's accounting policies, which are described in note 2, management is required to make judgments, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised 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 key sources of estimation uncertainty that has a significant effect on the amounts recognised in the financial statements are: 
i) Stock valuation 
The risk exists that cost is in excess of the net realisable value, and provisions are not made, and   vice versa. Management are involved in making these decisions on a line by line basis. The value of stock as at 31 December 2024 was £10,436,426 (2023: £17,995,922).
ii) Useful economic lives of tangible fixed assets
The useful economic lives used by the Group in respect of tangible fixed assets are set out in the accounting policies. These estimates are the best estimate based on past experience and expected performance and are regularly reviewed to ensure they remain appropriate. The net book value of  tangible fixed assets as at 31 December 2024 was £201,967,198 (2023: £175,900,832) after a  depreciation charge in the year of £36,392,788 (2023: £31,514,120).
iii) Residual value of vehicles
In order to determine the rental value to charge for each vehicle contract, management estimate the residual value of each vehicle at the end of the lease term. These estimates are based on experience of the used car markets and are regularly reviewed to ensure appropriate. 
iv) Useful economic lives of intangible assets
The useful economic lives used by the Group in respect of intangible assets are set out in the accounting policies. These estimates are the best estimate based on past experience and expected performance and are regularly reviewed to ensure they remain appropriate. The net book value of intangible assets as at 31 December 2024 was £697,715 (2023: £Nil) after a amortisation charge in the year of £32,065 (2023: £Nil).

Page 31

 
HARDWATER HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

4.


Turnover

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


2024
2023
£
£

Vehicle sales
78,941,201
66,697,234

Vehicle leasing
54,337,644
52,667,682

Fleet management
6,331,466
5,708,685

Other sales
5,387,289
5,486,674

144,997,600
130,560,275


All turnover arose within the United Kingdom.


5.


Other operating income

2024
2023
£
£

Other operating income
1,148,806
1,436,169

Commissions receivable
196,671
271,858

1,345,477
1,708,027



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation
36,392,788
31,862,473

Profit on disposal of tangible fixed assets
(3,071,315)
(7,629,521)

Other operating lease rentals
181,765
48,425

Gain on investments
(41,552)
(236,584)

Fair value movements on investments
246,986
-

Fair value movements on investment properties
4,363
118,967

Page 32

 
HARDWATER HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

7.


Auditor's remuneration

2024
2023
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
114,075
75,225

Fees payable to the Company's auditor in respect of:

Taxation compliance services
12,625
11,750

Other services relating to taxation and other matters
39,907
36,279

Accounts preparation services
15,000
26,250


8.


Employees

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


Group
Group
2024
2023
£
£


Wages and salaries
8,358,798
7,298,445

Social security costs
918,367
816,402

Cost of defined contribution scheme
201,196
185,999

9,478,361
8,300,846


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



Group
Group
Company
Company
        2024
        2023
        2024
        2023
            No.
            No.
            No.
            No.









Number of production staff
20
19
-
-



Number of administrative staff
235
196
-
-



Number of management staff
12
10
2
2



Number of sales staff
17
15
-
-

284
240
2
2

Page 33

 
HARDWATER HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
677,806
661,766

Group contributions to defined contribution pension schemes
18,000
11,400

695,806
673,166


During the year retirement benefits were accruing to 2 Directors (2023 - 2) in respect of defined contribution pension schemes.

The highest paid Director received remuneration of £373,571 (2023 - £367,531).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid Director amounted to £9,000 (2023 - £5,700).

During the year 17 (2023: 17) members of key management personnel across the group received emoluments of £2,518,176 (2023: £2,351,545) inclusive of national insurance and pension contributions. 


10.


Interest receivable

2024
2023
£
£


Other interest receivable
1,602,956
730,325


11.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
8,169
6,699

Other loan interest payable
339,035
335,861

347,204
342,560

Included in cost of sales is interest on hire purchase contracts of £11,156,260 (2023: £7,578,699).

Page 34

 
HARDWATER HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

12.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
2,430,864
1,477,055


Total current tax
2,430,864
1,477,055

Deferred tax


Origination and reversal of timing differences
290,540
1,490,464


Tax on profit
2,721,404
2,967,519

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 23.5%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
10,724,729
12,686,371


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.5%)
2,681,182
2,981,297

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
-
14,920

Capital allowances in excess of depreciation
(134,976)
36,356

Utilisation of tax losses
(272)
(147)

Other differences leading to an increase in taxation
87,621
33,202

Non-taxable income
-
(1,970)

Changes in provisions leading to an increase/(decrease) in the tax charge
85,204
(121,069)

Capital gains
2,645
24,930

Total tax charge for the year
2,721,404
2,967,519


Factors that may affect future tax charges

There are no factors affecting future tax charges.

Page 35

 
HARDWATER HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

13.


Dividends

2024
2023
£
£


Dividends paid on ordinary shares
2,050,000
3,681,389


14.


Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The profit after tax of the parent Company for the year was £2,028,555 (2023 - £3,666,494).


15.


Intangible assets

Group





Computer software

£



Cost


Additions
729,780



At 31 December 2024

729,780



Amortisation


Charge for the year 
32,065



At 31 December 2024

32,065



Net book value



At 31 December 2024
697,715



At 31 December 2023
-



Page 36

 
HARDWATER HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

16.


Tangible fixed assets

Group






Freehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£



Cost or valuation


At 1 January 2024
8,778,292
1,330,204
239,111,593
2,146,198
251,366,287


Additions
49,722
134,417
83,497,161
71,292
83,752,592


Disposals
(86,203)
(242,110)
(46,958,937)
(118,873)
(47,406,123)



At 31 December 2024

8,741,811
1,222,511
275,649,817
2,098,617
287,712,756



Depreciation


At 1 January 2024
413,503
766,794
72,777,209
1,507,949
75,465,455


Charge for the year on owned assets
39,115
146,939
1,523,553
161,322
1,870,929


Charge for the year on financed assets
-
-
34,521,859
-
34,521,859


Disposals
(86,203)
(168,009)
(25,746,730)
(111,743)
(26,112,685)



At 31 December 2024

366,415
745,724
83,075,891
1,557,528
85,745,558



Net book value



At 31 December 2024
8,375,396
476,787
192,573,926
541,089
201,967,198



At 31 December 2023
8,364,789
563,410
166,334,384
638,249
175,900,832

The net book value of motor vehicles held under finance leases or hire purchase contracts total £186,869,269 (2023: £147,266,087). Depreciation charged on those motor vehicles is £34,521,859 (2023: £31,514,120).

Page 37

 
HARDWATER HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

17.


Fixed asset investments

Group





Listed investments
Other fixed asset investments
Total

£
£
£



Cost


At 1 January 2024
3,874,093
53,836
3,927,929


Additions
2,072,784
-
2,072,784


Disposals
(2,620,080)
-
(2,620,080)


Revaluations
246,986
-
246,986



At 31 December 2024
3,573,783
53,836
3,627,619




Company





Investments in subsidiary companies

£



Cost


At 1 January 2024
51,760,132



At 31 December 2024
51,760,132




Page 38

 
HARDWATER HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Principal activity

Class of shares

Holding

Grosvenor Contracts Leasing Limited
Vehicle hire company
Ordinary
100%
York Ward & Rowlatt Limited
Motor vehicle and parts distribution and vehicle repair
Ordinary
  100%
Croyland Motors Limited
Motor vehicle trading
Ordinary
100%
Croyland Rentals Limited
Operating of owned real estate
Ordinary
100%
Holmere Developments Limited
Property development
Ordinary
 100%
Interactive Fleet Management Limited
Motor vehicle fleet management services
Ordinary
100%
Eyebury Trucks Limited
Dormant
Ordinary
100%
Croyland Car Megastore Limited
Dormant
Ordinary
100%
Croyland Auto Megastore Limited
Dormant
Ordinary
100%
The Hatton Park Motor Company Limited
Dormant
Ordinary
100%
Cooper Armstrong Limited
Dormant
Ordinary
100%
White Garages (Higham Ferrers) Limited
Dormant
Ordinary
100%
Hamblins of Rushden Limited **
Dormant
Ordinary
100%

The registered office for all subsidiary undertakings of the Company is Balmoral House, Kettering Venture Park, Kettering, Northamptonshire, NN15 6XU.
** Hamblins of Rushden Limited is an indirect subsidiary as it is 100% owned by York Ward & Rowlatt Limited.


18.


Investment property

Group


Freehold investment property

£



Valuation


At 1 January 2024
9,230,722


Additions at cost
1,690,142


Surplus on revaluation
4,363



At 31 December 2024
10,925,227

The 2024 valuations were made by the directors, on an open market value for existing use basis.





Page 39

 
HARDWATER HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

19.


Stocks

Group
Group
2024
2023
£
£

Work in progress
6,027
6,344

Finished goods and goods for resale
10,430,399
17,989,578

10,436,426
17,995,922


The difference between purchase price or production cost of stocks and their replacement cost is not material.

Stock recognised in cost of sales during the year as an expense was £76,746,613 (2023: £72,683,670).

Page 40

 
HARDWATER HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

20.


Debtors

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


Trade debtors
6,933,406
8,167,669
-
-

Amounts owed by group undertakings
-
-
2,672,661
2,672,661

Other debtors
552,785
4,317,940
-
-

Prepayments and accrued income
1,043,482
2,270,642
-
-

8,529,673
14,756,251
2,672,661
2,672,661


Amounts owed by group undertakings are interest free and repayable on demand.


21.


Current asset investments

Group
Group
2024
2023
£
£

Unlisted investments (liquid)
21,000,000
13,379,413



22.


Cash and cash equivalents

Group
Group
2024
2023
£
£

Cash at bank and in hand
20,530,233
17,793,385


Page 41

 
HARDWATER HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

23.


Creditors: Amounts falling due within one year

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

Trade creditors
24,804,462
35,029,481
-
-

Corporation tax
1,845,137
411,066
-
-

Other taxation and social security
1,499,790
603,013
-
-

Obligations under finance lease and hire purchase contracts
54,627,632
50,940,074
-
-

Other creditors
3,047,356
2,677,908
-
-

Accruals and deferred income
2,838,199
3,127,616
36,340
14,895

88,662,576
92,789,158
36,340
14,895


Liabilities in respect of finance lease and hire purchase contracts and other loans including vehicle related finance are secured on the assets to which they relate.


24.


Creditors: Amounts falling due after more than one year

Group
Group
2024
2023
£
£

Net obligations under finance leases and hire purchase contracts
129,288,694
106,676,339


Liabilities in respect of finance lease and hire purchase contracts and other loans including vehicle related finance are secured on the assets to which they relate.


25.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2024
2023
£
£

Within one year
54,627,632
50,940,074

Between 1-5 years
129,288,694
106,676,339

183,916,326
157,616,413

Page 42

 
HARDWATER HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

26.


Deferred taxation


Group



2024


£






At beginning of year
301,962


Charged to the Consolidated Statement of Comprehensive Income
290,540



At end of year
592,502







The provision for deferred taxation is made up as follows:

Group
Group
2024
2023
£
£

Accelerated capital allowances
638,812
247,656

Chargeable gains
269,123
290,379

Other timing differences
(315,433)
(236,073)

592,502
301,962


27.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



47,432,414 (2023 - 47,432,414) Ordinary shares of £1.00 each
47,432,414
47,432,414


Page 43

 
HARDWATER HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

28.


Reserves

Capital redemption reserve

Represents the nominal value of shares repurchased by the Company.

Merger Reserve

The merger reserve reflects the difference between the value of the shares issued and the nominal value of the shares acquired.

Profit and loss account

Includes all current and prior period retained profits and losses.


29.


Pension commitments

The Group operates a number of defined contribution pension schemes for employees. The assets of the schemes are held separately from those of the Group. The annual contributions payable are charged to the Consolidated Statement of Comprehensive Income.
During the year, the Group paid pension contributions of £186,811 (2023: £168,237) into a defined contributions scheme. The amount outstanding at the year was is £54,736 (2023: £27,234).


30.


Commitments under operating leases

At 31 December 2024 the Group 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
530,041
168,849

Later than 1 year and not later than 5 years
827,727
47,775

1,357,768
216,624

At 31 December 2024 the Group had future minimum lease receipts under non-cancellable operating lease contracts as follows:


Group
Group
2024
2023
£
£

Not later than 1 year
50,176,545
17,004,859

Later than 1 year and not later than 5 years
69,964,163
13,179,631

Later than 5 years
-
30,482

120,140,708
30,214,972

Page 44

 
HARDWATER HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

31.


Transactions with directors

Included in other creditors is an amount due to N M Johnson of £1,229,298 (2023: £1,137,268). Repayments of £1,064,363 (2023: £1,742,288) were made in the year. During the year a further advance of £972,333 (2023: £436,907) was made.
Included in other creditors is an amount due to R S Johnson of £860,917 (2023: £765,466). Repayments of £1,064,363 (2023: £1,742,288) were made in the year. During the year a further advance of £1,023,212 (2023: £355,384) was made.
Included in other creditors is an amount due to N M Johnson and R S Johnson of £Nil (2023: £78,725). Repayments of £78,725 (2023: £196,813) were made in the year. During the year a further advance of £Nil (2023: £119,523) was made.
All loans are interest free, unsecured and have no set terms for repayment.


32.


Related party transactions

During the year, the Group made sales of £5,437 (2023: £8,302) and purchases of £37,229 (2023: NIL) from a company owned by the spouse of a director. At the year end, the balance owed to the Group from this related party was £542 (2023: £1,320).
During the year the, Group received £4,950 (2023: £4,950) from a director's close family member in respect of rental income from an investment property.
During the year, Nil vehicles (2023: 3) were sold to close family members of the directors for a total value of £Nil (2023: £63,834).


33.


Controlling party

The ultimate controlling parties of the Group are N M Johnson and R S Johnson

 
Page 45