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Registration number: 01486774

Headstock Distribution Limited

Annual Report and Financial Statements

for the Year Ended 30 June 2025

 

Headstock Distribution Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4 to 5

Statement of Directors' Responsibilities

6

Independent Auditor's Report

7 to 9

Profit and Loss Account and Statement of Retained Earnings

10

Balance Sheet

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Financial Statements

14 to 24

 

Headstock Distribution Limited

Company Information

Directors

Mr Keith George Bradshaw

Mr Lyndon John Laney

Mr James Henry Waldron

Mr David George Bradshaw

Mr Timothy Charles Bradshaw

Mrs Emma Laney Smith

Mr Scott Richard Banks McKenzie

Mr Jonathan James Plant

Mr James Daniel Laney

Company secretary

Mr Jonathan James Plant

Registered office

Steel Park Road
Coombs Wood West
Halesowen
West Midlands
B62 8HD

Auditors

Walker Hubble 5 Parsons Street
Dudley
West Midlands
DY1 1JJ

 

Headstock Distribution Limited

Strategic Report for the Year Ended 30 June 2025

The directors present their strategic report for the year ended 30 June 2025.

Principal activity

The principal activity of the company is the design, manufacture and distribution of sound reinforcement equipment and musical instruments.

Fair review of the business

Sales of the company for the year in question have increased by 8%. This is mainly due to the market conditions globally improving, successful launch of new product and diversification of product within the domestic market.

The UK sales of the company increased by 8% during the year and export business increased by 10%. The company continued to maintain good cost control policies during the year. However, a tougher marketplace drove a reduction in GP% of 1%.

Overhead costs rose by 5% largely as a result of marketing, labour and travel expenditure increasing further during this year. There was also some inflationary pressure on property costs. The company is pleased to report pre tax profits of £768,341 for the year.

The directors consider that there are significant opportunities for the company to continue to develop in its chosen markets and will seek to grow and develop the business during the next financial year and look forward to a period of continued growth and achievement of current margins in the foreseeable future.

 

Headstock Distribution Limited

Strategic Report for the Year Ended 30 June 2025 (continued)

The company's key financial and other performance indicators during the year were as follows:

 

Unit

2025

2024

Turnover

£

16,670,807

15,400,168

Turnover per employee

£

333,416

327,663

Gross Profit

£

4,804,498

4,613,411

Gross Profit %

%

29

30

EBITDA (before exceptional items)

£

928,047

898,463

Principal risks and uncertainties

The management continually monitors the key risks facing the business as well as assessing the controls used for managing these risks.

The markets the Company operate in are global and expose the Company to currency fluctuations, principally between the US Dollar, Euro and Pound Sterling. The strengthening of the US Dollar throughout the year continues to place pressure on margins.

This area of risk is managed through appropriate use of exchange rate hedging strategies, as well as the natural hedge that the Company employs due to the nature of its global operations, by generating sales revenue in Dollars and Euros which are utilised to transact purchases for sales in the domestic market.

The primary production base of the Company is in the People's Republic of China by way of contracted marketing, and as such the Company is exposed to the internal machinations of costs in that market in Chinese Yuan that eventually reflect in factory prices in Dollars. The Company manages this by purchasing and cost engineering strategies designed to give stability in pricing to their customers, and by constantly seeking out new sources of supply globally.

Approved by the Board on 14 October 2025 and signed on its behalf by:

.........................................
Mr Jonathan James Plant
Company secretary and director

   
     
 

Headstock Distribution Limited

Directors' Report for the Year Ended 30 June 2025

The directors present their report and the financial statements for the year ended 30 June 2025.

Directors of the company

The directors who held office during the year were as follows:

Mr Keith George Bradshaw

Mr Lyndon John Laney

Mr James Henry Waldron

Mr David George Bradshaw

Mr Timothy Charles Bradshaw

Mrs Emma Laney Smith

Mr Scott Richard Banks McKenzie

Mr Jonathan James Plant - Company secretary and director

Mr James Daniel Laney

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

The auditors Walker Hubble are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Financial instruments

Objectives and policies

The companies activities expose it to a number of financial risks including price risk, credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the companies policies approved by the board of directors, which provide written principles on the use of financial derivatives to manage these risks. The company does not use derivative financial instruments for speculative purposes.

 

Headstock Distribution Limited

Directors' Report for the Year Ended 30 June 2025 (continued)

Price risk, credit risk, liquidity risk and cash flow risk

Price risk:

The company is exposed to commodity price risk. The company monitors the exchange rate of the markets it operates within and updates the price of their goods to accommodate this risk.

Credit risk:

The company's principal assets are bank balances and cash, trade and other receivables.
The company's credit risk is primarily attributed to trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of cash flows.
The company has no significant concentration of credit risk, with exposure spread over a large number of customers.

Liquidity risk:

The company has funded and intends to continue funding its ongoing operations and future developments through cash generated from operating activities and the funds within their bank accounts.

Cash flow risk:

The company trades in various countries around the world and is exposed to various foreign currencies. These are managed in line with company policies.

Approved by the Board on 14 October 2025 and signed on its behalf by:

.........................................
Mr Jonathan James Plant
Company secretary and director

   
     
 

Headstock Distribution Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Headstock Distribution Limited

Independent Auditor's Report to the Members of Headstock Distribution Limited

Opinion

We have audited the financial statements of Headstock Distribution Limited (the 'company') for the year ended 30 June 2025, which comprise the Profit and Loss Account and Statement of Retained Earnings, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 30 June 2025 and of its profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

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

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

 

Headstock Distribution Limited

Independent Auditor's Report to the Members of Headstock Distribution Limited (continued)

Opinion on other matter 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 Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 6], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor Responsibilities for the audit of the financial statements

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

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

We identified and assessed the risks of material misstatement in respect of irregularities, including fraud and non compliance with laws and regulations. Our procedures included enquiry of management and performing analytical review procedures to identify any unusual relationships that may indicate a material misstatement. We also tested the appropriateness of journals to address the risk of fraud through management override of controls. We performed appropriate testing in respect of the risk of fraud in revenue recognition through a review of margins, sales cut off procedures, and by performing existence and valuation testing on trade debtors.

Relevant laws and regulations, together with potential fraud risks, were communicated to the audit engagement team at the planning stage to ensure they remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

 

Headstock Distribution Limited

Independent Auditor's Report to the Members of Headstock Distribution Limited (continued)

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 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.

......................................
Gavin Richard Pearson FCCA (Senior Statutory Auditor)
For and on behalf of Walker Hubble, Statutory Auditor
 5 Parsons Street
Dudley
West Midlands
DY1 1JJ

14 October 2025

 

Headstock Distribution Limited

Profit and Loss Account and Statement of Retained Earnings
for the Year Ended 30 June 2025

Note

2025
£

2024
£

Turnover

3

16,670,807

15,400,168

Cost of sales

 

(11,866,309)

(10,786,757)

Gross profit

 

4,804,498

4,613,411

Distribution costs

 

(835,503)

(758,626)

Administrative expenses

 

(3,269,924)

(3,163,627)

Operating profit

4

699,071

691,158

Other interest receivable and similar income

5

69,270

95,771

 

69,270

95,771

Profit before tax

 

768,341

786,929

Taxation

9

(152,169)

(193,099)

Profit for the financial year

 

616,172

593,830

Retained earnings brought forward

 

9,770,947

9,477,417

Dividends paid

 

(300,300)

(300,300)

Retained earnings carried forward

 

10,086,819

9,770,947

 

Headstock Distribution Limited

(Registration number: 01486774)
Balance Sheet as at 30 June 2025

Note

2025
£

2024
£

Fixed assets

 

Intangible assets

10

44,942

56,084

Tangible assets

11

2,502,084

2,178,574

 

2,547,026

2,234,658

Current assets

 

Stocks

12

5,522,185

4,605,944

Debtors

13

3,713,668

2,693,370

Cash at bank and in hand

 

756,183

2,139,469

 

9,992,036

9,438,783

Creditors: Amounts falling due within one year

15

(2,331,662)

(1,852,109)

Net current assets

 

7,660,374

7,586,674

Total assets less current liabilities

 

10,207,400

9,821,332

Provisions for liabilities

16

(119,481)

(49,285)

Net assets

 

10,087,919

9,772,047

Capital and reserves

 

Called up share capital

770

770

Capital redemption reserve

330

330

Retained earnings

10,086,819

9,770,947

Shareholders' funds

 

10,087,919

9,772,047

Approved and authorised by the Board on 14 October 2025 and signed on its behalf by:
 

.........................................
Mr James Daniel Laney
Director

 

Headstock Distribution Limited

Statement of Changes in Equity for the Year Ended 30 June 2025

Share capital
£

Capital redemption reserve
£

Retained earnings
£

Total
£

At 1 July 2024

770

330

9,770,947

9,772,047

Profit for the year

-

-

616,172

616,172

Dividends

-

-

(300,300)

(300,300)

At 30 June 2025

770

330

10,086,819

10,087,919

Share capital
£

Capital redemption reserve
£

Retained earnings
£

Total
£

At 1 July 2023

770

330

9,477,417

9,478,517

Profit for the year

-

-

593,830

593,830

Dividends

-

-

(300,300)

(300,300)

At 30 June 2024

770

330

9,770,947

9,772,047

 

Headstock Distribution Limited

Statement of Cash Flows for the Year Ended 30 June 2025

Note

2025
£

2024
£

Cash flows from operating activities

Profit for the year

 

616,172

593,830

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

223,351

215,714

Finance income

5

(69,270)

(95,771)

Income tax expense

9

152,169

193,099

 

922,422

906,872

Working capital adjustments

 

(Increase)/decrease in stocks

12

(916,241)

335,150

Increase in trade debtors

13

(1,020,298)

(548,341)

Increase in trade creditors

15

539,836

47,841

Cash generated from operations

 

(474,281)

741,522

Income taxes paid

9

(142,256)

(149,174)

Net cash flow from operating activities

 

(616,537)

592,348

Cash flows from investing activities

 

Interest received

5

69,270

95,771

Acquisitions of tangible assets

(536,338)

(251,373)

Proceeds from sale of tangible assets

 

5,624

50,101

Acquisition of intangible assets

10

(5,005)

(31,076)

Net cash flows from investing activities

 

(466,449)

(136,577)

Cash flows from financing activities

 

Dividends paid

20

(300,300)

(300,300)

Net (decrease)/increase in cash and cash equivalents

 

(1,383,286)

155,471

Cash and cash equivalents at 1 July

 

2,139,469

1,983,998

Cash and cash equivalents at 30 June

 

756,183

2,139,469

 

Headstock Distribution Limited

Notes to the Financial Statements for the Year Ended 30 June 2025

1

General information

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:
Steel Park Road
Coombs Wood West
Halesowen
West Midlands
B62 8HD

These financial statements were authorised for issue by the Board on 14 October 2025.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Foreign currency transactions and balances

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange prevailing at the accounting date. Transactions in foreign currencies are recorded at the date of the transactions. All differences are taken to the Statement of Income and Retained Earnings account.

Tax

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

 

Headstock Distribution Limited

Notes to the Financial Statements for the Year Ended 30 June 2025 (continued)

2

Accounting policies (continued)

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

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

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Land and buildings

Over 50 years

Plant and machinery

Over 4 to 10 years

Fixtures, fittings and equipment

Over 4 to 10 years

Motor vehicles

Over 4 years

Intangible assets

Separately acquired trademarks and licences are shown at historical cost.

Trademarks, licences (including software) and customer-related intangible assets acquired in a business combination are recognised at fair value at the acquisition date.

Trademarks, licences and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Patents

Write off the cost in equal annual investments over their estimated useful life of 10 years.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

 

Headstock Distribution Limited

Notes to the Financial Statements for the Year Ended 30 June 2025 (continued)

2

Accounting policies (continued)

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Headstock Distribution Limited

Notes to the Financial Statements for the Year Ended 30 June 2025 (continued)

3

Turnover

The analysis of the company's turnover for the year from continuing operations is as follows:

2025
£

2024
£

Sale of goods

16,623,295

15,350,992

Royalties received

47,512

49,176

16,670,807

15,400,168

The analysis of the company's turnover for the year by market is as follows:

2025
£

2024
£

UK

11,520,742

10,700,177

Rest of world

5,150,065

4,699,991

16,670,807

15,400,168

4

Operating profit

Arrived at after charging/(crediting)

2025
 £

2024
 £

Depreciation expense

207,203

199,640

Amortisation expense

16,148

16,074

Foreign exchange losses

17,431

8,600

Operating lease expense - motor vehicles

83,593

87,186

5

Other interest receivable and similar income

2025
£

2024
£

Interest income on bank deposits

69,204

95,771

Other finance income

66

-

69,270

95,771

 

Headstock Distribution Limited

Notes to the Financial Statements for the Year Ended 30 June 2025 (continued)

6

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2025
£

2024
£

Wages and salaries

2,239,740

2,107,710

Social security costs

238,799

216,714

Pension costs, defined contribution scheme

85,861

112,572

2,564,400

2,436,996

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2025
No.

2024
No.

Production

10

10

Administration and support

40

37

50

47

7

Directors' remuneration

The directors' remuneration for the year was as follows:

2025
£

2024
£

Remuneration

467,020

502,105

Contributions paid to money purchase schemes

40,063

69,440

507,083

571,545

During the year the number of directors who were receiving benefits and share incentives was as follows:

2025
No.

2024
No.

Accruing benefits under money purchase pension scheme

3

4

In respect of the highest paid director:

2025
£

2024
£

Remuneration

171,288

155,724

Company contributions to money purchase pension schemes

25,471

11,361

 

Headstock Distribution Limited

Notes to the Financial Statements for the Year Ended 30 June 2025 (continued)

8

Auditors' remuneration

2025
£

2024
£

Audit of the financial statements

36,414

32,226


 

9

Taxation

Tax charged/(credited) in the profit and loss account

2025
£

2024
£

Current taxation

UK corporation tax

81,973

142,256

Deferred taxation

Arising from origination and reversal of timing differences

70,196

50,843

Tax expense in the income statement

152,169

193,099

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2024 - the same as the standard rate of corporation tax in the UK) of 25% (2024 - 25%).

The differences are reconciled below:

2025
£

2024
£

Profit before tax

768,341

786,929

Corporation tax at standard rate

192,085

196,732

Effect of expense not deductible in determining taxable profit (tax loss)

13,306

91,818

Tax decrease from effect of adjustment in research and development tax credit

(53,222)

(95,451)

Total tax charge

152,169

193,099

 

Headstock Distribution Limited

Notes to the Financial Statements for the Year Ended 30 June 2025 (continued)

10

Intangible assets

Trademarks, patents and licenses
 £

Total
£

Cost or valuation

At 1 July 2024

231,883

231,883

Additions acquired separately

5,005

5,005

Disposals

(11,940)

(11,940)

At 30 June 2025

224,948

224,948

Amortisation

At 1 July 2024

175,799

175,799

Amortisation charge

16,147

16,147

Amortisation eliminated on disposals

(11,940)

(11,940)

At 30 June 2025

180,006

180,006

Carrying amount

At 30 June 2025

44,942

44,942

At 30 June 2024

56,084

56,084

The aggregate amount of research and development expenditure recognised as an expense during the period is £266,115 (2024 - £205,270).
 

 

Headstock Distribution Limited

Notes to the Financial Statements for the Year Ended 30 June 2025 (continued)

11

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Other property, plant and equipment
£

Total
£

Cost or valuation

At 1 July 2024

2,000,003

1,034,507

337,677

531,339

3,903,526

Additions

-

382,120

64,458

89,760

536,338

Disposals

-

(76,637)

-

(72,362)

(148,999)

At 30 June 2025

2,000,003

1,339,990

402,135

548,737

4,290,865

Depreciation

At 1 July 2024

283,500

837,903

200,063

403,486

1,724,952

Charge for the year

27,000

67,567

54,908

57,729

207,204

Eliminated on disposal

-

(72,562)

-

(70,813)

(143,375)

At 30 June 2025

310,500

832,908

254,971

390,402

1,788,781

Carrying amount

At 30 June 2025

1,689,503

507,082

147,164

158,335

2,502,084

At 30 June 2024

1,716,503

196,604

137,614

127,853

2,178,574

Included within the net book value of land and buildings above is £1,689,503 (2024 - £1,716,503) in respect of freehold land and buildings.
 

 

Headstock Distribution Limited

Notes to the Financial Statements for the Year Ended 30 June 2025 (continued)

12

Stocks

2025
£

2024
£

Raw materials and consumables

177,409

191,841

Finished goods and goods for resale

5,344,776

4,414,103

5,522,185

4,605,944

13

Debtors

Current

2025
£

2024
£

Trade debtors

2,987,102

2,607,166

Other debtors

618,686

-

Prepayments

107,880

86,204

 

3,713,668

2,693,370

14

Cash and cash equivalents

2025
£

2024
£

Cash on hand

2,168

3,159

Cash at bank

532,209

511,286

Short-term deposits

221,806

1,625,024

756,183

2,139,469

15

Creditors

Note

2025
£

2024
£

Due within one year

 

Trade creditors

 

1,745,251

1,168,055

Social security and other taxes

 

247,758

273,108

Outstanding defined contribution pension costs

 

8,595

-

Other payables

 

20,691

38,050

Accruals

 

227,394

230,640

Income tax liability

9

81,973

142,256

 

2,331,662

1,852,109

 

Headstock Distribution Limited

Notes to the Financial Statements for the Year Ended 30 June 2025 (continued)

16

Provisions for assets/liabilities

Deferred tax
£

Total
£

At 1 July 2024

49,285

49,285

Increase (decrease) in existing provisions

70,196

70,196

At 30 June 2025

119,481

119,481

17

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £85,861 (2024 - £112,572).

18

Share capital

Allotted, called up and fully paid shares

2025

2024

No.

£

No.

£

Ordinary Shares of £1 each

770

770

770

770

       
 

Headstock Distribution Limited

Notes to the Financial Statements for the Year Ended 30 June 2025 (continued)

19

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2025
£

2024
£

Not later than one year

75,745

68,986

Later than one year and not later than five years

52,651

52,700

128,396

121,686

The amount of non-cancellable operating lease payments recognised as an expense during the year was £89,463 (2024 - £87,186).

20

Dividends

2025

2024

£

£

Interim dividend of £390.00 (2024 - £390.00) per ordinary share

300,300

300,300