Wright Hardware Limited - Limited company accounts 25.1

REGISTERED NUMBER: SC084114 (Scotland)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

WRIGHT HARDWARE LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Income Statement

8

Consolidated Other Comprehensive Income

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

17

DIRECTORS:

Mrs C Ferguson

F Leary

B Ferguson

D J O'Ware

SECRETARY:

Mrs C Ferguson

REGISTERED OFFICE:

95 Main Street

Prestwick

Ayrshire

KA9 1JS

REGISTERED NUMBER:

SC084114 (Scotland)

AUDITORS:

Galbraith Pritchards

Chartered Accountants

& Statutory Auditor

20 Barns Street

Ayr

Ayrshire

KA7 1XA

BANKERS:

Bank of Scotland

123 High Street

Ayr

KA7 1QP

The directors present their strategic report of the company and the group for the year ended 31 December 2024.

REVIEW OF BUSINESS

The group continues to operate as a retailer and wholesaler in the hardware and general household goods sector. It is a members' buying group and its members trade under the banner Home Hardware as hardware and general household goods providers. The buying group maintains a comprehensive buying and marketing solution for its members backed by an extensive use of warehousing technology and systems.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks facing the group are continued uncertainty about consumer confidence, in tandem with Government legislation, in relation to ongoing high inflation and a continued contraction in consumer spending in the wider economy. The supply chain has now recovered following issues relating to the pandemic and more latterly shipping delays due to threats to container ships in the Middle East. We can now see a much-improved stock availability. There continued to be pressure on consumer spending from ongoing pressures on energy, food and housing costs. This has clearly affected consumer spending and has become normalised as a longer-term situation and consumer mind-set, which is also marked by geo-political instability, both of which undermine business development and investment.

On costs for consumers reflect similar rises in the cost of doing business with large increases in energy, insurance, cost of goods, and cost of materials to businesses showing a marked increase since 2020. Most critically the cost of manpower and the cost of doing business has continued to increase well above the rate of inflation, and well above sales growth, which has been led by Government legislation. This increased cost of manpower will inevitably lead to a reduction in manpower and a need for further efficiencies within all business.

The Spring season started slowly but was boosted by sustained hot and sunny weather throughout May. The latter part of the year was muted, especially in response to the Budget in October, indicating extreme cost pressures and longer- term caution heaped onto households due to the compounding impact of high interest rates, higher proposed taxation, food, energy and housing costs. This was seen to impact equally across the geographic spread of the Home Hardware membership. The most pressing issues for 2025 are the additional costs of doing business enforced by the Government, which have been set to increase again far above the rate of inflation and likely sales growth in 2025, and we anticipate the same in 2026.

PERFORMANCE MONITORING

Key performance indicators for the group include comparing current and past turnover on a monthly basis by both customer and sales category.

The group assesses cash flow on a weekly basis together with reviewing sales at branches and eviewing members' sales ledger balances to ensure adequate cash resources are available and debtor default minimised.

ON BEHALF OF THE BOARD:

F Leary - Director

25 September 2025

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

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

Mrs C Ferguson

F Leary

B Ferguson

Other changes in directors holding office are as follows:

D J O'Ware was appointed as a director after 31 December 2024 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 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 and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Galbraith Pritchards, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

F Leary - Director

25 September 2025

Opinion

We have audited the financial statements of Wright Hardware Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 31 December 2024 and of the group's loss for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors 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 Report of the Directors.

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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

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

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

We gained an understanding of the legal and regulatory framework applicable to the entity and the industry in which it operates and considered the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that 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 concealment by, for example, forgery or intentional misrepresentations, or through collusion.

We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and, enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

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 Report of the Auditors.

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 a Report of the Auditors 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.

Marguerite Roos BAcc CA (Senior Statutory Auditor)

for and on behalf of Galbraith Pritchards

Chartered Accountants

& Statutory Auditor

20 Barns Street

Ayr

Ayrshire

KA7 1XA

25 September 2025

TURNOVER

14,251,429

14,938,224

Cost of sales

8,845,851

9,485,747

GROSS PROFIT

5,405,578

5,452,477

Distribution costs

1,102,174

1,144,022

Administrative expenses

4,973,524

4,488,992

6,075,698

5,633,014

(670,120

)

(180,537

)

Other operating income

376,815

322,433

OPERATING (LOSS)/PROFIT

4

(293,305

)

141,896

Interest receivable and similar income

22,199

9,157

(271,106

)

151,053

Gain/loss on revaluation of tangible assets

(27,394

)

-

(298,500

)

151,053

Interest payable and similar expenses

5

68,186

42,010

(LOSS)/PROFIT BEFORE TAXATION

(366,686

)

109,043

Tax on (loss)/profit

6

(112,351

)

37,232

(LOSS)/PROFIT FOR THE FINANCIAL
YEAR

(254,335

)

71,811

(Loss)/profit attributable to:

Owners of the parent

(228,448

)

70,921

Non-controlling interests

(25,887

)

890

(254,335

)

71,811

(LOSS)/PROFIT FOR THE YEAR

(254,335

)

71,811

OTHER COMPREHENSIVE INCOME

Movement in other reserves

(20,606

)

-

Income tax relating to other comprehensive
income

-

OTHER COMPREHENSIVE INCOME
FOR THE YEAR, NET OF INCOME TAX

(20,606

)

-

TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

(274,941

)

71,811

Total comprehensive income attributable to:

Owners of the parent

(249,054

)

70,921

Non-controlling interests

(25,887

)

890

(274,941

)

71,811

FIXED ASSETS

Tangible assets

8

4,103,287

3,990,501

Investments

9

15,100

Investment property

10

60,000

-

4,178,387

4,005,601

CURRENT ASSETS

Stocks

11

5,389,282

5,618,556

Debtors

12

861,381

892,823

Cash at bank and in hand

802,975

641,313

7,053,638

7,152,692

CREDITORS

Amounts falling due within one year

13

2,021,533

1,608,576

NET CURRENT ASSETS

5,032,105

5,544,116

TOTAL ASSETS LESS CURRENT
LIABILITIES

9,210,492

9,549,717

CREDITORS

Amounts falling due after more than one
year

14

(2,962,972

)

(2,927,267

)

PROVISIONS FOR LIABILITIES

18

(200,546

)

(300,535

)

NET ASSETS

6,046,974

6,321,915

CAPITAL AND RESERVES

Called up share capital

19

100,000

Other reserves

20

231,025

256,928

Retained earnings

20

5,534,154

5,757,305

SHAREHOLDERS' FUNDS

5,865,179

6,114,233

NON-CONTROLLING INTERESTS

21

181,795

207,682

TOTAL EQUITY

6,046,974

6,321,915

The financial statements were approved by the Board of Directors and authorised for issue on 25 September 2025 and were signed on its behalf by:

F Leary - Director

FIXED ASSETS

Tangible assets

8

3,207,796

3,109,328

Investments

9

46,316

Investment property

10

60,000

-

3,314,112

3,155,644

CURRENT ASSETS

Stocks

11

1,776,896

1,706,680

Debtors

12

1,106,920

1,275,068

Cash at bank and in hand

54,973

180,117

2,938,789

3,161,865

CREDITORS

Amounts falling due within one year

13

981,130

1,090,705

NET CURRENT ASSETS

1,957,659

2,071,160

TOTAL ASSETS LESS CURRENT
LIABILITIES

5,271,771

5,226,804

CREDITORS

Amounts falling due after more than one
year

14

(792,186

)

(460,055

)

PROVISIONS FOR LIABILITIES

18

(149,313

)

(259,154

)

NET ASSETS

4,330,272

4,507,595

CAPITAL AND RESERVES

Called up share capital

19

100,000

Other reserves

20

85,849

108,452

Retained earnings

20

4,144,423

4,299,143

SHAREHOLDERS' FUNDS

4,330,272

4,507,595

Company's loss for the financial year

(156,717

)

(72,579

)

The financial statements were approved by the Board of Directors and authorised for issue on 25 September 2025 and were signed on its behalf by:

F Leary - Director

Called up

share

Retained

Other

capital

earnings

reserves

£

Balance at 1 January 2023

100,000

5,574,145

369,167

Changes in equity

Total comprehensive income

-

183,160

(112,239

)

Balance at 31 December 2023

100,000

5,757,305

256,928

Changes in equity

Total comprehensive income

-

(223,151

)

(25,903

)

Balance at 31 December 2024

100,000

5,534,154

231,025

Non-controlling

Total

interests

equity

£

Balance at 1 January 2023

6,043,312

206,792

6,250,104

Changes in equity

Total comprehensive income

70,921

890

71,811

Balance at 31 December 2023

6,114,233

207,682

6,321,915

Changes in equity

Total comprehensive income

(249,054

)

(25,887

)

(274,941

)

Balance at 31 December 2024

5,865,179

181,795

6,046,974

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

Balance at 1 January 2023

100,000

4,332,804

147,370

4,580,174

Changes in equity

Total comprehensive income

-

(33,661

)

(38,918

)

(72,579

)

Balance at 31 December 2023

100,000

4,299,143

108,452

4,507,595

Changes in equity

Total comprehensive income

-

(154,720

)

(22,603

)

(177,323

)

Balance at 31 December 2024

100,000

4,144,423

85,849

4,330,272

Cash flows from operating activities

Cash generated from operations

1

503,401

632,283

Interest paid

(65,123

)

(40,255

)

Interest element of hire purchase payments
paid

(3,063

)

(1,755

)

Tax paid

(48,462

)

(133,647

)

Net cash from operating activities

386,753

456,626

Cash flows from investing activities

Purchase of tangible fixed assets

(651,856

)

(575,179

)

Sale of tangible fixed assets

3,000

14,550

Interest received

22,199

9,157

Net cash from investing activities

(626,657

)

(551,472

)

Cash flows from financing activities

New loans in year

465,515

-

Loan repayments in year

(146,661

)

(132,156

)

Capital repayments in year

93,716

(24,751

)

Amount introduced by directors

46,262

61,582

Amount withdrawn by directors

(57,266

)

(109,825

)

Net cash from financing activities

401,566

(205,150

)

Increase/(decrease) in cash and cash equivalents

161,662

(299,996

)

Cash and cash equivalents at beginning of
year

2

641,313

941,309

Cash and cash equivalents at end of year

2

802,975

641,313

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31/12/24

31/12/23

£

(Loss)/profit before taxation

(366,686

)

109,043

Depreciation charges

423,258

337,638

Loss/(profit) on disposal of fixed assets

4,812

(10,807

)

Loss on revaluation of fixed assets

27,394

-

Finance costs

68,186

42,010

Finance income

(22,199

)

(9,157

)

134,765

468,727

Decrease in stocks

229,274

365,061

Decrease in trade and other debtors

42,576

109,710

Increase/(decrease) in trade and other creditors

96,786

(311,215

)

Cash generated from operations

503,401

632,283

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024

31/12/24

1/1/24

£

Cash and cash equivalents

802,975

641,313

Year ended 31 December 2023

31/12/23

1/1/23

£

Cash and cash equivalents

641,313

941,309

3.	ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1/1/24

Cash flow

At 31/12/24

£

Net cash

Cash at bank and in hand

641,313

161,662

802,975

641,313

161,662

802,975

Debt

Finance leases

-

(93,716

)

(93,716

)

Debts falling due within 1 year

(143,219

)

(12,764

)

(155,983

)

Debts falling due after 1 year

(486,097

)

(306,089

)

(792,186

)

(629,316

)

(412,569

)

(1,041,885

)

Total

11,997

(250,907

)

(238,910

)

1.	STATUTORY INFORMATION

Wright Hardware Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the General Information page.

2.	ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS

These financial statements have been 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. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

BASIS OF CONSOLIDATION

The group financial statements consolidate the financial statements of the company and its subsidiaries; Home Hardware (Scotland) Limited and Home Hardware Direct Limited. The results of subsidiaries acquired or sold are consolidated for the periods from or to the date on which control passed.

CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company's accounting policies, which are described in this note, 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 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.

TURNOVER

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

TANGIBLE FIXED ASSETS

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

2% on cost and not provided

Leasehold improvements

-

10% on cost

Plant and machinery

-

at varying rates on cost and at variable rates on reducing balance

Fixtures and fittings

-

10% on reducing balance, at varying rates on cost and at variable rates on reducing balance

Motor vehicles

-

33% on reducing balance and 25% on reducing balance

Computer equipment

-

25% on cost

A review of impairment is carried out at each reporting date. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Freehold property is shown at most recent valuation. Any surplus or deficit arising is recognised in other comprehensive income within the revaluation reserve. Any excess loss is reported in profit or loss.

INVESTMENT PROPERTY

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

STOCKS

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

FINANCIAL INSTRUMENTS

The company has elected to apply the provisions of Section 11 "Basic Financial Instruments" and Section 12 "Other Financial Instruments Issues" of FRS102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occuring after the impairment was recognised, the impairment is reversed. The reversal is such that the carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset bin it's entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

Trade creditors are obligations to pay for goods or services that have been aquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year

or less. If not, they are presented as non current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

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

TAXATION

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

DEFERRED TAX

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

FOREIGN EXCHANGE

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

HIRE PURCHASE AND LEASING COMMITMENTS

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

The company has purchased a trust for the benefit of employees and certain of their dependants. Monies held in this trust are held by independent trustees and managed at their discretion.

Where the company retains future economic benefit from, and has de facto control of the assets and liabilities of the trust, they are accounted for as assets and liabilities of the company until the earlier of the date that an allocation of trust funds to employees in respect of past services is declared and that date that assets of the trust vest in identified individuals.

FIXED ASSET INVESTMENTS

Interests held in other entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

EQUITY INSTRUMENTS

Equiy instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

3.	EMPLOYEES AND DIRECTORS

31/12/24

31/12/23

£

Wages and salaries

3,290,988

3,061,760

Social security costs

257,711

227,643

Other pension costs

54,102

48,204

3,602,801

3,337,607

The average number of employees during the year was as follows:

31/12/24

31/12/23

Sales

120

116

Administration

21

22

Distribution

25

28

166

31/12/24

31/12/23

£

Directors' remuneration

260,145

226,335

Information regarding the highest paid director is as follows:

31/12/24

31/12/23

£

Emoluments etc

67,216

65,446

4.	OPERATING (LOSS)/PROFIT

The operating loss (2023 - operating profit) is stated after charging/(crediting):

31/12/24

31/12/23

£

Other operating leases

163,288

167,083

Depreciation - owned assets

397,047

329,227

Depreciation - assets on hire purchase contracts

26,211

8,411

Loss/(profit) on disposal of fixed assets

4,812

(10,807

)

Auditors' remuneration

19,680

16,625

Foreign exchange differences

1,618

4,865

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

31/12/24

31/12/23

£

Bank interest

65,123

40,255

Hire purchase

3,063

1,755

68,186

42,010

6.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the loss for the year was as follows:

31/12/24

31/12/23

£

Current tax:

UK corporation tax

(12,362

)

58,014

Repayment of previous year tax

-

(9,552

)

Total current tax

(12,362

)

48,462

Deferred tax

(99,989

)

(11,230

)

Tax on (loss)/profit

(112,351

)

37,232

RECONCILIATION OF TOTAL TAX (CREDIT)/CHARGE INCLUDED IN PROFIT AND LOSS

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

31/12/24

31/12/23

£

(Loss)/profit before tax

(366,686

)

109,043

(Loss)/profit multiplied by the standard rate of corporation tax in the UK of
0 % (2023 - 25 %)

-

27,261

Effects of:

Expenses not deductible for tax purposes

-

430

Capital allowances in excess of depreciation

(5,741

)

-

Depreciation in excess of capital allowances

-

21,209

Utilisation of tax losses

(6,621

)

-

Other adjustment

-

(438

)

Deferred tax

(99,989

)

(11,230

)

Total tax (credit)/charge

(112,351

)

37,232

Tax effects relating to effects of other comprehensive income

31/12/24

Gross

Tax

Net

£

Movement in other reserves

(20,606

)

-

(20,606

)

31/12/23

Gross

Tax

Net

£

Movement in other reserves

7.	INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.

8.	TANGIBLE FIXED ASSETS

Group

Freehold

Leasehold

Plant and

property

improvements

machinery

£

COST OR VALUATION

At 1 January 2024

2,955,944

718,399

2,106,773

Additions

-

309,839

172,111

Disposals

-

Impairments

(60,000

)

-

Reclassification/transfer

(60,000

)

-

At 31 December 2024

2,835,944

1,028,238

2,278,884

DEPRECIATION

At 1 January 2024

244,206

264,807

1,506,707

Charge for year

56,719

87,933

151,605

Eliminated on disposal

-

Impairments

(12,000

)

-

At 31 December 2024

288,925

352,740

1,658,312

NET BOOK VALUE

At 31 December 2024

2,547,019

675,498

620,572

At 31 December 2023

2,711,738

453,592

600,066

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

COST OR VALUATION

At 1 January 2024

376,197

578,447

374,230

7,109,990

Additions

-

136,700

33,206

651,856

Disposals

-

(65,980

)

-

(65,980

)

Impairments

-

(60,000

)

Reclassification/transfer

-

(60,000

)

At 31 December 2024

376,197

649,167

407,436

7,575,866

DEPRECIATION

At 1 January 2024

350,566

473,721

279,482

3,119,489

Charge for year

3,923

62,548

60,530

423,258

Eliminated on disposal

-

(58,168

)

-

(58,168

)

Impairments

-

(12,000

)

At 31 December 2024

354,489

478,101

340,012

3,472,579

NET BOOK VALUE

At 31 December 2024

21,708

171,066

67,424

4,103,287

At 31 December 2023

25,631

104,726

94,748

3,990,501

Cost or valuation at 31 December 2024 is represented by:

Freehold

Leasehold

Plant and

property

improvements

machinery

£

Valuation in 2004

139,973

-

Valuation in 2007

50,000

-

Valuation in 2012

(75,000

)

-

Valuation in 2018

99,824

-

Valuation in 2019

70,546

-

Valuation in 2024

(22,896

)

-

Cost

2,573,497

1,028,238

2,278,884

2,835,944

1,028,238

2,278,884

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

Valuation in 2004

-

139,973

Valuation in 2007

-

50,000

Valuation in 2012

-

(75,000

)

Valuation in 2018

-

99,824

Valuation in 2019

-

70,546

Valuation in 2024

-

(22,896

)

Cost

376,197

649,167

407,436

7,313,419

376,197

649,167

407,436

7,575,866

If freehold property had not been revalued it would have been included at the following historical cost:

31/12/24

31/12/23

£

Cost

2,573,497

2,309,701

Aggregate depreciation

299,837

248,367

Freehold property was valued on an open market basis on 19th July 2018 by Messrs J & E Shepherd Chartered Surveyors. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.

Further revaluations are carried out by the directors annually.

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Motor

vehicles

£

COST OR VALUATION

Additions

125,814

At 31 December 2024

125,814

DEPRECIATION

Charge for year

26,211

At 31 December 2024

26,211

NET BOOK VALUE

At 31 December 2024

99,603

Company

Freehold

Leasehold

Plant and

property

improvements

machinery

£

COST OR VALUATION

At 1 January 2024

2,205,944

718,399

1,733,955

Additions

-

309,839

171,501

Impairments

(60,000

)

-

Reclassification/transfer

(60,000

)

-

At 31 December 2024

2,085,944

1,028,238

1,905,456

DEPRECIATION

At 1 January 2024

170,080

264,806

1,172,651

Charge for year

41,718

87,933

138,484

Impairments

(12,000

)

-

At 31 December 2024

199,798

352,739

1,311,135

NET BOOK VALUE

At 31 December 2024

1,886,146

675,499

594,321

At 31 December 2023

2,035,864

453,593

561,304

Motor

Computer

vehicles

equipment

Totals

£

COST OR VALUATION

At 1 January 2024

200,749

159,020

5,018,067

Additions

10,887

13,676

505,903

Impairments

-

(60,000

)

Reclassification/transfer

-

(60,000

)

At 31 December 2024

211,636

172,696

5,403,970

DEPRECIATION

At 1 January 2024

165,051

136,151

1,908,739

Charge for year

14,397

16,903

299,435

Impairments

-

(12,000

)

At 31 December 2024

179,448

153,054

2,196,174

NET BOOK VALUE

At 31 December 2024

32,188

19,642

3,207,796

At 31 December 2023

35,698

22,869

3,109,328

Cost or valuation at 31 December 2024 is represented by:

Freehold

Leasehold

Plant and

property

improvements

machinery

£

Valuation in 2018

99,824

-

Valuation in 2019

22,896

-

Valuation in 2024

(22,896

)

-

Cost

1,986,120

1,028,238

1,905,456

2,085,944

1,028,238

1,905,456

Motor

Computer

vehicles

equipment

Totals

£

Valuation in 2018

-

99,824

Valuation in 2019

-

22,896

Valuation in 2024

-

(22,896

)

Cost

211,636

172,696

5,304,146

211,636

172,696

5,403,970

If freehold property had not been revalued it would have been included at the following historical cost:

31/12/24

31/12/23

£

Cost

1,896,120

2,083,224

Aggregate depreciation

182,461

158,275

Value of land in freehold land and buildings

1,803,659

1,924,949

Freehold property is valued at fair value annually by the directors.

9.	FIXED ASSET INVESTMENTS

Group

Unlisted

investments

£

COST

At 1 January 2024

and 31 December 2024

15,100

NET BOOK VALUE

At 31 December 2024

15,100

At 31 December 2023

15,100

Company

Shares in

group

undertakings

£

COST

At 1 January 2024

and 31 December 2024

46,316

NET BOOK VALUE

At 31 December 2024

46,316

At 31 December 2023

46,316

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

SUBSIDIARIES

Home Hardware (Scotland) Limited

Registered office: 26a Dalry Road, Ardrossan, Ayrshire, KA27 7GQ

Nature of business: Wholesaler of ironmongery products

%

Class of shares:

holding

Ordinary shares

89.15

31/12/24

31/12/23

£

Aggregate capital and reserves

1,928,550

1,954,190

(Loss)/profit for the year

(25,640

)

147,083

Home Hardware Direct Limited

Registered office: 26a Dalry Road, Ardrossan, Ayrshire, KA27 7GQ

Nature of business: Online retailer of ironmongery products

%

Class of shares:

holding

Ordinary

67.90

31/12/24

31/12/23

£

Aggregate capital and reserves

(70,928

)

1,049

Loss for the year/period

(71,977

)

(46,943

)

10.	INVESTMENT PROPERTY

Group

Total

£

FAIR VALUE

Reclassification/transfer

60,000

At 31 December 2024

60,000

NET BOOK VALUE

At 31 December 2024

60,000

Company

Total

£

FAIR VALUE

Reclassification/transfer

60,000

At 31 December 2024

60,000

NET BOOK VALUE

At 31 December 2024

60,000

11.

STOCKS

Group

Company

31/12/24

31/12/23

31/12/24

31/12/23

£

Stocks

5,389,282

5,618,556

1,776,896

1,706,680

12.

DEBTORS

Group

Company

31/12/24

31/12/23

31/12/24

31/12/23

£

Amounts falling due within one year:

Trade debtors

490,480

534,020

10,792

8,631

Amounts owed by group undertakings

-

7,748

7,449

Other debtors

141,625

157,015

-

1,000

Directors' current accounts

8,325

-

8,325

-

Tax

-

9,552

-

9,552

Corporation tax repayable

12,362

-

Prepayments and accrued income

208,589

192,236

123,628

128,856

861,381

892,823

150,493

155,488

Amounts falling due after more than one

year:

Amounts owed by group undertakings

-

956,427

1,119,580

Aggregate amounts

861,381

892,823

1,106,920

1,275,068

13.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

31/12/24

31/12/23

31/12/24

31/12/23

£

Bank loans and overdrafts (see note 15)

105,979

143,219

79,937

80,719

Other loans (see note 15)

50,004

-

50,004

-

Hire purchase contracts (see note 16)

32,131

-

Trade creditors

1,357,121

1,122,944

168,100

94,397

Amounts owed to group undertakings

-

466,799

769,203

Corporation tax payable

-

58,014

-

Social security and other taxes

57,500

58,226

35,743

34,032

VAT

150,721

112,899

153,365

65,928

Other creditors

229,407

13,704

3,132

1,925

Directors' current accounts

11,259

13,938

11,259

13,938

Accruals and deferred income

27,411

85,632

12,791

30,563

2,021,533

1,608,576

981,130

1,090,705

14.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group

Company

31/12/24

31/12/23

31/12/24

31/12/23

£

Bank loans (see note 15)

538,027

486,097

538,027

460,055

Other loans (see note 15)

254,159

-

254,159

-

Hire purchase contracts (see note 16)

61,585

-

Other creditors

2,109,201

2,441,170

-

2,962,972

2,927,267

792,186

460,055

15.

LOANS

An analysis of the maturity of loans is given below:

Group

Company

31/12/24

31/12/23

31/12/24

31/12/23

£

Amounts falling due within one year or on

demand:

Bank loans

105,979

143,219

79,937

80,719

Shareholders' loans

50,004

-

50,004

-

155,983

143,219

129,941

80,719

Amounts falling due between one and two

years:

Bank loans - 1-2 years

53,901

93,222

53,901

67,180

Directors' loan

50,004

-

50,004

-

103,905

93,222

103,905

67,180

Amounts falling due between two and five

years:

Bank loans - 2-5 years

161,702

123,637

161,702

123,637

Other loans - 2-5 years

150,012

-

150,012

-

311,714

123,637

311,714

123,637

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

322,424

269,238

322,424

269,238

Other loans more 5yrs instal

54,143

-

54,143

-

376,567

269,238

376,567

269,238

16.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group

Hire purchase

contracts

31/12/24

31/12/23

£

Net obligations repayable:

Within one year

32,131

-

Between one and five years

61,585

-

93,716

-

Group

Non-cancellable

operating leases

31/12/24

31/12/23

£

Within one year

57,131

18,000

Between one and five years

97,002

-

154,133

18,000

Company

Non-cancellable

operating leases

31/12/24

31/12/23

£

Within one year

25,000

18,000

Between one and five years

35,417

-

60,417

18,000

17.	SECURED DEBTS

The following secured debts are included within creditors:

Group

31/12/24

31/12/23

£

Bank loans

644,006

629,316

Hire purchase contracts

93,716

-

737,722

629,316

The bank holds a floating charge over the whole property and undertaking.

A cross corporate guarantee is also in place between Wright Hardware Limited and Home Hardware (Scotland) Limited.

18.	PROVISIONS FOR LIABILITIES

Group

Company

31/12/24

31/12/23

31/12/24

31/12/23

£

Deferred tax

Timing differences

200,546

300,535

149,313

259,154

Group

Deferred

tax

£

Balance at 1 January 2024

300,535

Provided during year

(99,989

)

Balance at 31 December 2024

200,546

Company

Deferred

tax

£

Balance at 1 January 2024

259,154

Provided during year

(109,841

)

Balance at 31 December 2024

149,313

19.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31/12/24

31/12/23

value:

£

100,000

Ordinary shares

£1

100,000

20.

RESERVES

Group

Retained

Other

earnings

reserves

Totals

£

At 1 January 2024

5,757,305

256,928

6,014,233

Deficit for the year

(228,448

)

(228,448

)

Movement in other reserves

3,300

(23,906

)

(20,606

)

Revaluation reserve

1,997

(1,997

)

-

At 31 December 2024

5,534,154

231,025

5,765,179

Company

Retained

Other

earnings

reserves

Totals

£

At 1 January 2024

4,299,143

108,452

4,407,595

Deficit for the year

(156,717

)

(156,717

)

Movement in other reserves

-

(20,606

)

(20,606

)

Revaluation reserve

1,997

(1,997

)

-

At 31 December 2024

4,144,423

85,849

4,230,272

21.	NON-CONTROLLING INTERESTS

The minority interests in the company's subsidiaries are as follows:

2024

2023

Home Hardware (Scotland) Limited

10.85%

Home Hardware Direct Limited

32.1%

22.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The company leases property from a director at an annual rent of £39,000 and two further properties from a second director at an annual rent of £25,000 and £20,500 and a property from a third director at an annual rent of £21,000.

During the year, the company received £46,262 (2023: £44,954) as capital introduced by the directors. Directors' withdrew £57,266 (2023: £93,196).

As at 31 December 2024, £11,259 (2023: £12,982) was owed to two of the directors of the company. One director's loan account was overdrawn by £8,325 (2023: credit £957).

There are no plans for repayment and no interest is charged on the balances outstanding.

23.	RELATED PARTY DISCLOSURES

Entities over which the entity has control, joint control or significant influence - Company

31/12/24

31/12/23

£

Sales

6,422

9,253

Purchases

4,701,730

4,438,910

Amount due from related party

962,427

1,125,580

Amount due to related party

466,799

796,203

Key management personnel of the entity or its parent (in the aggregate) - Company

31/12/24

31/12/23

£

Sales

27,581

16,922

Amount due from related party

1,748

1,449

24.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party is Mrs C Ferguson.