Company registration number 15926006 (England and Wales)
HCEGH LIMITED
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2025
HCEGH LIMITED
COMPANY INFORMATION
Directors
Mr M Anderson
(Appointed 24 October 2024)
Mr B Lewis Jones
(Appointed 24 October 2024)
Mr L P Davies
(Appointed 30 August 2024)
Mr R I Hooper
(Appointed 30 August 2024)
Mrs A Spiers
(Appointed 30 August 2024)
Mrs A Todd
(Appointed 30 August 2024)
Secretary
Mr P Evans
Company number
15926006
Registered office
3 Vicars Lane
Chester
Cheshire
CH1 1QX
Auditor
Sage & Company Business Advisors Limited
102 Bowen Court
St Asaph Business Park
St Asaph
Denbighshire
LL17 0JE
Business address
2 Marine Road
Colwyn Bay
Conwy
LL29 8PH
HCEGH LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Notes to the financial statements
13 - 32
HCEGH LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 MARCH 2025
- 1 -

The directors present the strategic report for the period ended 31 March 2025.

Review of the business

The directors are pleased to present the accounts of HCEGH Ltd (the holding company) incorporating High Court Enforcement Group Limited, Excel Civil Enforcement Limited and SHCE Limited for the period to 31 March 2025.

The principal activities of the Group continue to be that of the provision of enforcement solutions to a wide range of clients including the legal profession, Government departments, local authorities, and commercial clients.

Principal risks and uncertainties

Staff employment remains to be a challenging factor, but management and senior staff have continued to ensure that the various businesses are operating to their potential.

The Group continues to maintain a risk management system to identify, assess and mitigate major risks to the business and will continue to do so.

Key performance indicators

The key performance indicators by which the Directors measure the business are turnover and adjusted net profit before tax, interest, amortisation, and depreciation. These measures have proved satisfactory in the period and the Group has achieved improved results.

Development

As reported in the 2024 accounts of High Court Enforcement Group Limited a VIMBO (Vendor Initiated Management Buyout) took place during the 2025 year, and 4 new Directors were appointed. The new Board are confident that this will ensure the business continues to thrive in the future.

The Directors wish to thank all staff for their dedication and loyalty.

On behalf of the board

Mr B Lewis Jones
Director
12 March 2026
HCEGH LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 MARCH 2025
- 2 -

The directors present their annual report and financial statements for the period ended 31 March 2025.

Principal activities

The principal activity of the group continued to be that of debt collection, bailiff services and eviction services. The core elements are: Enforcement of High Court w rits of Fi eri Fa cias and p ossession, e nforcement of warrants of distress and liability orders, e nforcement of warrants of arrest, t racing, s tatus reporting and s undry debts.

Our services are provided to users of the County and High Courts, His Majesty's Courts and Tribunal Services, local authorities and commercial clients.

Results and dividends

The results for the period are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

No preference dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the period and up to the date of signature of the financial statements were as follows:

Mr M Anderson
(Appointed 24 October 2024)
Mr B Lewis Jones
(Appointed 24 October 2024)
Mr L P Davies
(Appointed 30 August 2024)
Mr R I Hooper
(Appointed 30 August 2024)
Mrs A Spiers
(Appointed 30 August 2024)
Mrs A Todd
(Appointed 30 August 2024)
Auditor

In accordance with the company's articles, a resolution proposing that Sage & Company Business Advisors Limited be reappointed as auditor of the group will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Mr B Lewis Jones
Director
12 March 2026
HCEGH LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 31 MARCH 2025
- 3 -

The directors are responsible 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 group and company, 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;

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

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

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

The directors are responsible for the maintenance and integrity of the company website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

HCEGH LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HCEGH LIMITED
- 4 -
Opinion

We have audited the financial statements of HCEGH Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 March 2025 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).

In our opinion the financial statements:

- give a true and fair view of the state of the group's and the parent company's affairs as at 31 March 2025 and of the group's profit for the period then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 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

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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' r eport for the financial period 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.

HCEGH LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HCEGH LIMITED
- 5 -
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 their environment obtained in the course of the audit, we have not identifie d material misstatements in the strategic report or the directors' r eport.

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

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

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

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

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

Responsibilities of directors

As explained more fully in the directors' r esponsibilities s tatement, 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 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows;

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and employment legislation;

- we assessed the extent of compliance with the laws and regulations identified above through enquires of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance through the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquires of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and

- understanding the design of the company's remuneration policies.

HCEGH LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HCEGH LIMITED
- 6 -

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation; and

- enquiring of management as to actual and potential litigation and claims.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that rise due to fraud can be harder to detect than these that arise from error as they may involve deliberate concealment or collusion.

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.

Christopher Morgans BA ACA (Senior Statutory Auditor)
For and on behalf of Sage & Company Business Advisors Limited
12 March 2026
Chartered Accountants
Statutory Auditor
102 Bowen Court
St Asaph Business Park
St Asaph
Denbighshire
LL17 0JE
HCEGH LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 MARCH 2025
- 7 -
5 Months
ended
31 March
2025
Notes
£
Turnover
3
5,029,208
Administrative expenses
(4,877,877)
Other operating income
4,641
Operating profit
4
155,972
Interest receivable and similar income
8
33,843
Interest payable and similar expenses
9
(112,370)
Profit before taxation
77,445
Tax on profit
10
(49,089)
Profit for the financial period
28,356
Profit for the financial period is all attributable to the owners of the parent company.
Total comprehensive income for the period is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

HCEGH LIMITED
GROUP BALANCE SHEET
AS AT 31 MARCH 2025
31 March 2025
- 8 -
2025
Notes
£
£
Fixed assets
Goodwill
11
1,710,625
Tangible assets
12
2,629,564
4,340,189
Current assets
Debtors
15
2,521,079
Cash at bank and in hand
2,157,565
4,678,644
Creditors: amounts falling due within one year
16
(2,638,656)
Net current assets
2,039,988
Total assets less current liabilities
6,380,177
Creditors: amounts falling due after more than one year
17
(1,912,886)
Provisions for liabilities
Deferred tax liability
20
318,933
(318,933)
Net assets
4,148,358
Capital and reserves
Called up share capital
22
4,071,988
Share premium account
48,014
Profit and loss reserves
28,356
Total equity
4,148,358
The financial statements were approved by the board of directors and authorised for issue on 12 March 2026 and are signed on its behalf by:
12 March 2026
Mr B Lewis Jones
Director
Company registration number 15926006 (England and Wales)
HCEGH LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2025
31 March 2025
- 9 -
2025
Notes
£
£
Fixed assets
Investments
13
9,510,291
Current assets
-
Creditors: amounts falling due within one year
16
(4,196,916)
Net current liabilities
(4,196,916)
Total assets less current liabilities
5,313,375
Creditors: amounts falling due after more than one year
17
(1,291,840)
Net assets
4,021,535
Capital and reserves
Called up share capital
22
4,071,988
Share premium account
48,014
Profit and loss reserves
(98,467)
Total equity
4,021,535

As permitted by s408 Companies Act 2006, the c ompany has not presented its own profit and loss account and related notes. The c ompany’s loss for the period was £98,467.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 12 March 2026 and are signed on its behalf by:
12 March 2026
Mr B Lewis Jones
Director
Company registration number 15926006 (England and Wales)
HCEGH LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 MARCH 2025
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 30 August 2024
-
-
-
-
Period ended 31 March 2025:
Profit and total comprehensive income
-
-
28,356
28,356
Issue of share capital
22
4,071,988
48,014
-
4,120,002
Balance at 31 March 2025
4,071,988
48,014
28,356
4,148,358
HCEGH LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 MARCH 2025
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 30 August 2024
-
-
-
-
Period ended 31 March 2025:
Profit and total comprehensive income
-
-
(98,467)
(98,467)
Issue of share capital
22
4,071,988
48,014
-
4,120,002
Balance at 31 March 2025
4,071,988
48,014
(98,467)
4,021,535
HCEGH LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 MARCH 2025
- 12 -
2025
Notes
£
£
Cash flows from operating activities
Cash absorbed by operations
27
(14,518)
Interest paid
(13,903)
Income taxes paid
(9,582)
Net cash outflow from operating activities
(38,003)
Investing activities
Purchase of business
(343,486)
Purchase of tangible fixed assets
(631,601)
Proceeds from disposal of tangible fixed assets
61,041
Receipt of loans
2,720,976
Interest received
33,843
Net cash generated from/(used in) investing activities
1,840,773
Financing activities
Proceeds from finance leases obligations
645,462
Payment of finance leases obligations
(290,667)
Net cash generated from/(used in) financing activities
354,795
Net increase in cash and cash equivalents
2,157,565
Cash and cash equivalents at beginning of period
-
Cash and cash equivalents at end of period
2,157,565
HCEGH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2025
- 13 -
1
Accounting policies
Company information

HCEGH Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 3 Vicars Lane, Chester, Cheshire, CH1 1QX.

The group consists of HCEGH Limited and all of its subsidiaries.

1.1
Reporting period

This is the first set of accounts for the Company and Group under HCEGH limited, the company was incorporated on 30 August 2024 and the results reflect five months of trading since the acquisition of High Court Enforcement Group on 29 October 2024. The first period end has been set to 31 March 2025, to align the year end to all members of the Group. As this is the first set of accounts prepared, there are no comparative figures to be included.

1.2
Accounting convention

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 a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. 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 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

- Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

- Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

HCEGH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 14 -
1.3
Business combinations

In the parent company financial statements, t he cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. I nvestments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.4
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company HCEGH 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 March 2025. 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 g roup.

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.

1.5
Going concern

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.

HCEGH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 15 -
1.6
Turnover

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.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from contracts for the provision of professional services 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 stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.7
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.8
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
Not depreciated
Leasehold improvements
15% Reducing Balance
Plant and equipment
20% Reducing Balance
Fixtures and fittings
20% Reducing Balance
Computers
20% Reducing Balance
Motor vehicles
25% Reducing Balance

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.

1.9
Fixed asset investments

Equity in vest ments 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.

I n 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.

HCEGH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 16 -

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 g roup’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 c ompany 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.

1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

HCEGH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 17 -
1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.12
Financial instruments

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

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 m ethod 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

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.

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 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.

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 in its entirety to an unrelated third party.

HCEGH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 18 -
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 paymen ts 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.

Other financial liabilities

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 th r ough 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.

Derecognition of financial liabilities

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

1.13
Equity instruments

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.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current 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.

HCEGH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 19 -
Deferred tax

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 carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.15
Employee benefits

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 material 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.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.17
Leases

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 lease d asset are consumed.

1.18

Estimation techniques adopted

All estimates included within the financial statements are based on known fact from available evidence and third party information.

HCEGH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2025
- 20 -
2
Judgements and key sources of estimation uncertainty

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.

3
Turnover and other revenue
2025
£
Turnover analysed by class of business
Enforcement fees
4,993,821
Management charge
35,387
5,029,208
2025
£
Other revenue
Interest income
33,843
4
Operating profit
2025
£
Operating profit for the period is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
143,923
Profit on disposal of tangible fixed assets
(14,387)
Amortisation of intangible assets
74,375
Operating lease charges
2,500
5
Auditor's remuneration
2025
Fees payable to the company's auditor and associates:
£
For audit services
Audit of the financial statements of the group and company
2,500
Audit of the financial statements of the company's subsidiaries
6,798
9,298
HCEGH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2025
- 21 -
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the period was:

Group
Company
2025
2025
Number
Number
209
6

Their aggregate remuneration comprised:

Group
Company
2025
2025
£
£
Wages and salaries
2,407,231
-
0
Social security costs
257,320
-
Pension costs
68,291
-
0
2,732,842
-
0
7
Directors' remuneration
2025
£
Remuneration for qualifying services
107,564
Company pension contributions to defined contribution schemes
15,137
122,701
8
Interest receivable and similar income
2025
£
Interest income
Interest on bank deposits
28,843
Other interest income
5,000
Total income
33,843
HCEGH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2025
- 22 -
9
Interest payable and similar expenses
2025
£
Interest on finance leases and hire purchase contracts
13,006
Unwinding of discount on provisions
98,467
Other interest
897
Total finance costs
112,370
10
Taxation
2025
£
Deferred tax
Origination and reversal of timing differences
49,089

The actual charge for the period can be reconciled to the expected charge/(credit) for the period based on the profit or loss and the standard rate of tax as follows:

2025
£
Profit before taxation
77,445
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00%
19,361
Tax effect of expenses that are not deductible in determining taxable profit
24,472
Unutilised tax losses carried forward
45,972
Permanent capital allowances in excess of depreciation
(144,332)
Amortisation on assets not qualifying for tax allowances
18,594
Pre acquisition subsidiary profits in year
85,022
Taxation charge
49,089
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 30 August 2024
-
0
Additions
1,785,000
At 31 March 2025
1,785,000
Amortisation and impairment
At 30 August 2024
-
0
Amortisation charged for the period
74,375
At 31 March 2025
74,375
HCEGH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2025
11
Intangible fixed assets
(Continued)
- 23 -
Carrying amount
At 31 March 2025
1,710,625
The company had no intangible fixed assets at 31 March 2025.
HCEGH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2025
- 24 -
12
Tangible fixed assets
Group
Freehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 30 August 2024
-
0
-
0
-
0
-
0
-
0
-
0
-
0
Additions
-
0
-
0
1,083
11,098
3,843
615,577
631,601
Business combinations
811,004
8,241
2,348
92,651
126,473
1,147,823
2,188,540
Disposals
-
0
-
0
-
0
-
0
-
0
(86,160)
(86,160)
At 31 March 2025
811,004
8,241
3,431
103,749
130,316
1,677,240
2,733,981
Depreciation and impairment
At 30 August 2024
-
0
-
0
-
0
-
0
-
0
-
0
-
0
Depreciation charged in the period
-
0
564
98
10,730
14,799
117,732
143,923
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
-
0
(39,506)
(39,506)
At 31 March 2025
-
0
564
98
10,730
14,799
78,226
104,417
Carrying amount
At 31 March 2025
811,004
7,677
3,333
93,019
115,517
1,599,014
2,629,564
The company had no tangible fixed assets at 31 March 2025.
HCEGH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2025
- 25 -
13
Fixed asset investments
Group
Company
2025
2025
Notes
£
£
Investments in subsidiaries
14
-
0
9,510,291
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 30 August 2024
-
Additions
9,510,291
At 31 March 2025
9,510,291
Carrying amount
At 31 March 2025
9,510,291

On the 29 October 2024 the Company acquired 100% of the share capital of High Court Enforcement Group Limited via way of a management buyout. The consideration in excess of the net assets of the Group at this date has been included as Goodwill on acquisition and is being amortised over a 10 year period.

14
Subsidiaries

Details of the company's subsidiaries at 31 March 2025 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
High Court Enforcement Group Limited
2 Marine Road, Colwyn Bay, Conwy, LL29 8PH
Ordinary
100.00
-
Excel Civil Enforcement Limited
2 Marine Road, Colwyn Bay, Conwy, LL29 8PH
Ordinary
0
100.00
SHCE Limited
22 St. Andrews Crescent, Cardiff, CF10 3DD
Ordinary
0
100.00
High Court Enforcement Ltd
2 Marine Road, Colwyn Bay, Conwy, LL29 8PH
Ordinary
0
100.00
High Court Enforcement Officers Limited
2 Marine Road, Colwyn Bay, Conwy, LL29 8PH
Ordinary
0
100.00
Menai Collect Limited
2 Marine Road, Colwyn Bay, Conwy, LL29 8PH
Ordinary
0
100.00
National Eviction Team Limited
2 Marine Road, Colwyn Bay, Conwy, LL29 8PH
Ordinary
0
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
HCEGH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2025
14
Subsidiaries
(Continued)
- 26 -
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
High Court Enforcement Group Limited
8,750,696
23,545
Excel Civil Enforcement Limited
1,967,205
446,852
SHCE Limited
159,801
65,980
High Court Enforcement Ltd
3,747
-
0
High Court Enforcement Officers Limited
11
-
0
Menai Collect Limited
92,846
-
0
National Eviction Team Limited
2
-
0
15
Debtors
Group
Company
2025
2025
Amounts falling due within one year:
£
£
Trade debtors
971,924
-
0
Corporation tax recoverable
182,267
-
0
Other debtors
556,041
-
0
Prepayments and accrued income
810,847
-
0
2,521,079
-
16
Creditors: amounts falling due within one year
Group
Company
2025
2025
Notes
£
£
Obligations under finance leases
19
468,346
-
0
Trade creditors
378,942
-
0
Amounts owed to group undertakings
-
0
3,784,835
Corporation tax payable
5,571
-
0
Other taxation and social security
516,931
-
Other creditors
706,923
412,081
Accruals and deferred income
561,943
-
0
2,638,656
4,196,916
17
Creditors: amounts falling due after more than one year
Group
Company
2025
2025
Notes
£
£
Obligations under finance leases
19
621,046
-
0
Other creditors
1,291,840
1,291,840
1,912,886
1,291,840
HCEGH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2025
- 27 -
18
Loans and overdrafts

On 28 July 2020 an unlimited debenture was created in favour of Lloyds Bank Plc incorporating a fixed and floating charge.

On 14 August 2020 a 1st legal charge over commercial freehold office know as Vaughan Thomas House, 141 Walter Road, Swansea, SA1 5RW was created in favour of Lloyds Plc .

On 14 August 2020 a 1st legal charge over commercial freehold office known as Erskine House, Conway Road, Colwyn Bay, LL29 7LD was created in favour of Lloyds Plc

19
Finance lease obligations
Group
Company
2025
2025
£
£
Future minimum lease payments due under finance leases:
Within one year
468,346
-
0
In two to five years
621,046
-
0
1,089,392
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. 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 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

20
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
2025
Group
£
Accelerated capital allowances
364,905
Tax losses
(45,972)
318,933
The company has no deferred tax assets or liabilities.
Group
Company
2025
2025
Movements in the period:
£
£
Asset at 30 August 2024
-
-
Charge to profit or loss
49,090
-
Other
269,843
-
Liability at 31 March 2025
318,933
-
HCEGH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2025
20
Deferred taxation
(Continued)
- 28 -

Other movements of £269,843 relate to pre acquisition deferred tax liabilities in subsidiaries.

21
Retirement benefit schemes
2025
Defined contribution schemes
£
Charge to profit or loss in respect of defined contribution schemes
68,291

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.

22
Share capital
Group and company
2025
2025
Ordinary share capital
Number
£
Issued and fully paid
of 1p each
7,020
70
2025
2025
Preference share capital
Number
£
Issued and fully paid
of £1 each
4,071,918
4,071,918
Preference shares classified as equity
4,071,918
Total equity share capital
4,071,988
HCEGH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2025
- 29 -
23
Acquisition of a business

On 29 October 2024 the group acquired 100 percent of the issued capital of High Court Enforcement Group Limited.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, plant and equipment
2,188,540
-
2,188,540
Trade and other receivables
3,594,838
-
3,594,838
Cash and cash equivalents
3,411,478
-
3,411,478
Obligations under finance leases
(734,597)
-
(734,597)
Trade and other payables
(682,109)
-
(682,109)
Tax liabilities
167,114
-
167,114
Deferred tax
(269,843)
-
(269,843)
Total identifiable net assets
7,675,421
-
7,675,421
Goodwill
1,785,000
Total consideration
9,460,421
The consideration was satisfied by:
£
Cash based consideration (including discounted deferred elements)
5,360,418
Equity consideration through the issue of shares in the Company
4,100,003
9,460,421
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
5,029,208
Profit after tax
28,356
HCEGH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2025
- 30 -
24
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2025
2025
£
£
Within one year
93,486
-
Between two and five years
140,228
-
233,714
-
25
Related party transactions

During the year Cherrys Vehicle Leasing LLP invoiced High Court Enforcement Group Limited for vehicle hire and recharge for fuel and insurance. The total amount invoiced was to £367,726 (202 4: £678,211) and t he balance outstanding at the year end was £79,378 (202 4: £52,150).

During the period Cherrys Vehicle Leasing LLP invoiced SHCE Limited for vehicle hire and recharge for fuel and insurance. The total amount invoiced was £153,270 (2024: £52,271). The balance outstanding at the year end was £27,249 (2024: £6,479).

During the period Cherrys Vehicle Leasing LLP invoiced Excel Civil Enforcement Limited for vehicle hire and recharge for fuel and insurance. The total amount invoiced was £154,505 (2024: £125,340). The balance outstanding at the year end was £43,617 (2024: £1 1,962).

No transactions took place between Cherrys Vehicle Leasing LLP and HCEGH Limited.

The transactions were conducted on an arm's length basis and under normal commercial terms.

Cherrys Vehicle Leasing LLP is a related party due to having partners of B Lewis-Jones and M Anderson who are directors of HCEGH Limited.

On 29 October 2024 the Company was the subject of a management buyout. The shareholders of the Company received a combination of cash and deferred consideration totalling £5.95m over a 5 year period, together with shares in HCEGH Limited. No borrowings were required to fund this transaction. Four of the shareholders receiving consideration were also directors of the Company during the year.

Exemption from related party disclosures under section FRS102.33.1A between High Court Enforcement Group Ltd and its subsidiaries has been taken on the grounds that the subsidiaries are wholly owned subsidiaries of High Court Enforcement Group Ltd.

HCEGH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2025
- 31 -
26
Directors' transactions
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Director 3
2.25
261,342
937,313
3,796
(1,029,959)
172,492
Director 1
2.25
262,134
939,233
3,857
(1,029,959)
175,265
523,476
1,876,546
7,653
(2,059,918)
347,757

Loans to two other Directors of High Court Enforcement Group Limited during the year (not Directors of HCEGH Limited) were outstanding at the year end. Director 2 had an opening balance of £97,169, interest charged at 2.25% £499, net loans made of (£75,000) and a closing balance of £22,668 at the year end. Director 4 had an opening balance of £261,485, interest charged at 2.25% £3,850, net loans made of (£90,379) and a closing balance of £174,856 at the year end.

All loans were largely repaid with nine months of the year end. Appropriate tax charges have been placed and paid on the residual balances not repaid within nine months.

27
Cash absorbed by group operations
2025
£
Profit for the period after tax
28,356
Adjustments for:
Taxation charged
49,089
Finance costs
112,370
Investment income
(33,843)
Gain on disposal of tangible fixed assets
(14,387)
Amortisation and impairment of intangible assets
74,375
Depreciation and impairment of tangible fixed assets
143,923
Increase in provisions
441,533
Movements in working capital:
Increase in debtors
(1,464,949)
Increase in creditors
649,015
Cash absorbed by operations
(14,518)

Shares issued during the period and associated share costs were non-cash in nature and related to the restructure associated with the management buyout.

HCEGH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2025
- 32 -
28
Analysis of changes in net funds - group
30 August 2024
Cash flows
Acquisitions and disposals
31 March 2025
£
£
£
£
Cash at bank and in hand
-
2,501,051
(343,486)
2,157,565
Obligations under finance leases
-
(354,795)
(734,597)
(1,089,392)
-
2,146,256
(1,078,083)
1,068,173
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