The directors present the strategic report for the year ended 31 December 2024.
Turnover has increased this year by 6.7% to £21,041,444. The directors consider the profit on ordinary activities before taxation to be at a higher than anticipated level. The diverse mix of group companies operating within various business sectors has collectively resulted in a positive position.
The overall group profit before taxation achieved in the year was £1,911,126 although £646,500 related to the change in fair value of investment property. We feel that this was a good overall result, however lower than predicted for 2024. The cost price inflation and commercial pressures have negatively influenced the group's ability to achieve its budgetary goal for 2024.
The group continues to go from strength to strength despite the challenges 2024 has brought to all business sectors, each adapting to cost increases within all its cost centres swiftly and effectively resulting in us maintaining a healthy 6% net profit margin for 2024.
Hallam Express Ltd.’s move to new premises in quarter 4 2023, increased our storage offering by 10 000 pallet spaces. 2024 has seen the demand for our storage increasing at a fast-moving pace, our ability to offer transport and distribution via both our general haulage fleet or via our affiliated pallet networks has meant that we have been able to increase the turnover in that division by 9% and fill our warehousing facility to capacity 6 month earlier than we had anticipated.
The BHI Group Ltd see 2025 as an opportunity to grow the businesses further with investments in new fleet vehicles for the transport group. Construction of new industrial units to further expand our warehousing facility and the services we can offer are under way. Hydra Park Properties Ltd will be embarking on new residential developments with 2 NEW sites located in Peterborough and Doncaster. Further developments on our Business Parks
will drive the group to increase its revenues further for 2025.
The key financial highlights are as follows:
2024 2023
Turnover £21,039,734 £19,720,402
Turnover Growth (%) 6.7% 1.6%
Gross Profit Margin 20.44% 17.53%
Profit before tax £1,909,376 £916,422
BHI Group Ltd company acts as a holding Company.
The operating risks of the subsidiary Companies are managed and monitored by the board of each individual business.
Whilst some risks such as treasury risk are managed at a Group level, all our businesses are responsible for identifying, assessing, and managing the risks they face with appropriate assistance, review, and challenge from the Group functions as necessary.
Our risk management methodology is aimed at identifying the principal risks that could:
adversely impact the safety or security of the Group’s employees, customers, and assets
have a material impact on the financial or operational performance of the Group
impede achievement of the Group’s strategic objectives and financial targets
adversely impact the Group’s reputation or stakeholder expectations
We seek to continue to improve the quality of risk management information generated by our businesses via quarterly board reviews and KPI monitoring, accompanied with ISO9001 attained in 2024.
Actions taken on identified ongoing risks & uncertainty.
The Group continue to monitor the impact of rising fuel prices and driver shortages and identifies these areas as an ongoing risk to the stability of the businesses.
Fuel prices are reviewed on a weekly basis and following the introduction of a fuel matrix during 2022, surcharges are applied to our haulage services at a level which shares the impact with both us and the customer, whilst still ensuring we remain competitive in the market sector.
Demand for drivers continues to be a concern, the board have taken measures to ensure we offer our drivers a competitive remuneration packages with staff retention continuing to be maintained.
Inflationary impacts on the diversity of the Groups subsidiaries continue to be monitored at Group level via ongoing strategic reviews monthly.
The directors in line with their duties under S172 of the companies act 2006, act individually and collectively in the way they consider what, in good faith, would be the most likely to promote the success of the company for the benefit of its members, and in doing so have regard, amongst other matters, to the :
Likely consequences of any decision in the long term
Interest of the company’s employees.
Need to foster the company’s business relationships with suppliers, customers, and others.
Impact of the other company’s operations on the community and the environment
Desirability of the company maintaining a reputation for high standards of business conduct.
Need to act fairly between members of the company.
Stakeholders engagement
The company’s business strategy is focused on achieving business success for the company in the long term. In setting this strategy, the board considers their duty to promote the success of the company for the benefit of its shareholders whilst having regard to other stakeholders.
The board regularly discusses issues concerning employees, customers, suppliers, community and environment, regulators, and its shareholder. All of these are taken into account in its discussions and its decision-making progress.
In addition to this, the board seeks to understand the interests and views of the company’s stakeholders by engaging with them directly when required.
The following section summarises the key stakeholders and how we engage with each:
Our employees are central to the success of our business, contributing directly to a positive working culture and a healthy, supportive environment. We are committed to
being a responsible employer by offering fair pay, comprehensive benefits, and meaningful opportunities for personal and professional development.
We actively engage with employees to understand their training needs and to identify development opportunities that enhance both individual potential and overall business productivity. Regular employee engagement surveys are conducted to assess morale, gather valuable feedback, and pinpoint areas for improvement. Insights gained from these surveys directly inform our action planning to improve engagement, wellbeing, and communication across the organisation.
We have significantly enhanced communication channels across the business to encourage open dialogue and foster an inclusive, transparent culture. This includes promoting an open-door policy, regular one-to-one sessions between managers and team members, frequent company newsletters, anonymous suggestion boxes, and real-time updates via the SAGE HR announcement platform, which ensures timely communication with all employees via instant app notifications.
Our culture encourages diverse perspectives, innovation, and collaboration. We value the contribution of every team member and are committed to making sure all employees feel welcome, supported, and recognised for their hard work.
By partnering with our customers, we create solutions for the future. It is essential that we can consistently and continuously design and offer innovative, high-quality services and products to new and existing customers at and accessible price. In doing so we will build our brand value and loyalty.
We are in regular contact with our customers to understand their requirements and ensure that service levels are maintained to a high standard. This communication includes regular update calls or face to face meetings depending on the customers preference and location.
We actively encourage customer feedback to further improve our service levels.
Suppliers
We work with a wide range of suppliers both in the UK and globally. We remain committed to being fair and transparent in our dealings with all our suppliers.
Our suppliers are fundamental to the quality of our products and services. Having a range of suppliers that constitute successful partnerships ensure value for the business and provides resilience in case of supply chain disruption.
The boards approach to social responsibility, diversity and the community is of high importance. A new focus on electric vehicles and our CO2 footprint is targeted for 2025.
Regulators
We work with our regulators and the government in an open and proactive manner.
The boards intention is to behave responsibly and to ensure that the management team operates the business in a responsible manner, acting with the high standards and good governance expected of a business like ours. In doing so, we believe we will achieve our long term- business strategy and further develop our reputation in our sector.
Shareholders
The board also seeks to behave in a responsible manner towards our shareholder. The shareholder forms part of the board and is therefore aware of relevant decisions such as capex requirements and business growth strategies.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2024.
The results for the year are set out on page 10.
Ordinary dividends were paid amounting to £42,000. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The auditor, Hart Shaw LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
We have audited the financial statements of BHI Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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).
Basis for 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 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
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the 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 strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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:
At the planning stage we identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with the directors and other management, as required by auditing standards. The potential effect of any laws and regulation on the financial statements can vary considerably. There are laws and regulations that directly affect the financial statements (e.g. the Companies Act) as well as many other operational laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements. Owing to the size, nature and complexity of the organisation and the applicable laws and regulations to which it must adhere, the risk of material misstatement was deemed to be low. therefore the procedures performed by the audit team were limited to:
Communicating identified laws and regulations at planning throughout the audit team to remain alert to any indications of non-compliance throughout the audit.
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as non-compliance with laws and regulations.
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
We have assessed the overall susceptibility of the financial statements to material misstatement due to fraud. Management override is the most likely way in which fraud might present itself and as such is inherently high risk on any audit. Management override, which may cause there to be a material misstatement within the financial statements, may present itself in a number of ways, for example:
Override of internal controls (e.g. segregation of duties)
Entering into transactions outside the normal course of business, especially with related parties
Fraudulent revenue recognition, including fictitious sales and sales being recorded in the wrong period.
Presenting bias in accounting judgements and estimates.
In order to reduce the risk of material misstatement to an acceptable level, numerous audit procedures were performed including:
Enquiries of management as to whether they had any knowledge of any actual or suspected fraud
Review of journal entries made throughout the year as well as those made to prepare the financial statements
Reviewing the underlying rationale behind transactions in order to assess whether they were outside the normal course of business.
Increased revenue substantive testing across all material income streams.
Assessing whether management’s judgements and estimates indicated potential bias, particularly those disclosed as key in note 2 to the financial statements that are more susceptible to management bias.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected material misstatements in the financial statements, even though we have performed our audit in accordance with auditing standards. Furthermore, as with all audits, there is a higher risk of irregularities (especially those relating to fraud) being undetected, as these may involve the override of internal controls, collusion, intentional omissions and misrepresentations etc. We are not responsible for preventing non-compliance or fraud and therefore cannot be expected to detect all instances of such. Our audit was not designed to identify misstatements or other irregularities that would not be considered to be material to the financial statements. 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.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £29,300 (2023 - £9,347 loss).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
BHI Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is The Distribution Depot, Hydra Business Park, Nether Lane, Sheffield, S35 9ZX.
The group consists of BHI Group Limited and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated group financial statements consist of the financial statements of the parent company BHI Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from haulage and transport services is recognised upon completion of delivery to the customer.
Revenue from rents receivable is recognised straight line over the term of the lease.
Revenue from golf memberships is recognised straight line over the period of membership.
Revenue from other contracts for provision of service is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
Freehold land is not depreciated.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ 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 and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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 the 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 the 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 occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current 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.
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 in its entirety to an unrelated third party.
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, 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 acquired 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.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity 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.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
The valuation of investment property is a significant estimate and the valuation has been obtained from independent experts using information on the tenancy agreements in place and assuming that there is a reasonable marketing period of twelve months. The valuation basis is applying an expected yield on each property with comparison to similar property yields in the local area.
The valuation of freehold land and buildings is a significant estimate and the valuation has been obtained from independent experts using local market property data and assuming a marketing period of twelve months. There is no like for like comparison of property sold in the local area and the value would depend on the availability of a suitable buyer at the time of sale, although the valuation in the accounts is a good indicator of value, there is significant judgement and uncertainty inherent in the valuation.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The UK corporation tax rate rose from 19% to 25% on 1 April 2023, resulting in an average rate of 23.5% in the previous year. The current year corporation tax rate was 25%.
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Land and buildings with a carrying amount of £9,660,000 were revalued at 11 August 2025 by Eddisons, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.
The historic cost of the property is detailed below.
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
The valuations of £5,680,000 of investment properties were made as at 11 April 2023 by Eddisons, on an open market basis. These valuations have been assessed at the current year end date by the directors with reference to changes in local rental yields, the directors do not believe there has been a material change in valuation.
The valuation of £900,000 is a valuation of land for development, this was carried out by the directors with the assistance of a local estate agent, the valuation is based on the gross development value of the land.
On an historical cost basis investment property would have been included at an original cost of £2,531,329 (2023 - £2,531,329).
Details of the company's subsidiaries at 31 December 2024 are as follows:
*** Subsidiary undertaking claimed exemption from audit under s479A Companies Act 2006.
Details of associates at 31 December 2024 are as follows:
Included in trade debtors is £2,105,282 (2023: £2,177,879) subject to an invoice discounting arrangement.
The bank loans are secured against the investment property and land and building assets of the company.
The bank overdraft represents an invoice discounting facility secured against trade debtors of the group.
At the year end, the group had 6 loans outstanding with it's bank:
£2,905,204 relates to a £3,045,000 advancement in October 2023 which is being amortised over 15 years. The loan is due for renewal in October 2028. The loan has a fixed interest rate of 6.55%.
£2,900,202 relates to a £3,045,000 advancement in October 2023 which is being amortised over 15 years. The loan is due for renewal in October 2028. The loan has an interest rate of 1.65% above the Bank of England base rate.
£1,129,810 relates to a further 4 smaller term loans on fixed rates between 2.5% and 7.5% with remaining terms of 4 to 17 years.
Finance lease payments represent rentals payable by the group for certain motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Deferred tax in relation to accelerated capital allowances will reverse in line with the depreciation rates of the assets that it relates to.
Deferred tax in relation to tax losses is expected to reverse within one year.
Deferred tax in relation to revaluations of land and buildings and investment property is expected to reverse when the properties are sold, there is currently no plans to sell the properties with the directors' current intention being to hold them for their long term investment yield.
Short term timing differences are expected to reverse within one year.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
The company has one class of shares which have full dividend and voting rights. The shares carry no right to fixed income.
The remuneration of key management personnel is as follows.
Under the FRS 102 accounting standard Section 33.1A, disclosure need not be given of transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.
During the year the company entered into the following transactions with related parties (excluding those transactions with its wholly owned group members):
The following amounts were outstanding at the reporting end date:
The following amounts were outstanding at the reporting end date:
The prior year adjustment relates to the fact that the directors identified some land within the financial statements which the group did not possess the title for. This land has been reclassified from stock to a loan account with a director of the company.