Year Ended
Registration number:
The Hill Brush Company Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Consolidated Profit and Loss Account |
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Consolidated Statement of Comprehensive Income |
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Consolidated Balance Sheet |
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Balance Sheet |
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Consolidated Statement of Changes in Equity |
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Statement of Changes in Equity |
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Consolidated Statement of Cash Flows |
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Notes to the Financial Statements |
The Hill Brush Company Limited
Company Information
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Directors |
M D Coward P R Coward P W Coward C E Coward A D Coward |
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Company secretary |
A D Coward |
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Registered office |
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Bankers |
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Auditors |
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The Hill Brush Company Limited
Strategic Report
Year Ended 31 December 2025
The directors present their strategic report for the year ended 31 December 2025.
Principal activity
The principal activity of the group continued to be the design, manufacture and sale of brushes and associated products, together with the operation of the Hillbrush Visitor Centre. Hillbrush remains a leading authority in British brushmaking and manufacturing, maintaining its reputation for quality, innovation and craftsmanship. The Group serves a broad customer base across the UK and international markets.
Fair review of the business
During 2025, the Group operated in a trading environment characterised by continued economic uncertainty, inflationary pressures and cautious customer spending. While certain input costs stabilised compared to the prior year, wage inflation and competitive pricing pressures continued to present challenges.
Group turnover for the year amounted to £9,836,486 (2024: £10,440,200). Sales performance reflected steady demand across core markets, with a continued focus on export opportunities and strengthening distributor relationships. The Visitor Centre delivered a stable performance supported by events and seasonal activity.
Margins were impacted by wage inflation and competitive pricing pressures, although cost control initiatives and operational efficiencies helped mitigate the effect.
During the year, the Group reviewed its inventory provisioning methodology and, as a result, increased the provision to reflect a more prudent assessment of slow-moving and obsolete stock.
The Directors consider that the resulting provision appropriately reflects the recoverable value of inventory at the balance sheet date.
The group's key financial and other performance indicators during the year were as follows:
|
Unit |
2025 |
2024 |
|
|
Turnover |
£ |
9,836,486 |
10,440,200 |
|
Turnover per employee |
£ |
99,358 |
99,430 |
|
Gross margin |
% |
37 |
36 |
|
Debtor days |
days |
70 |
64 |
The Hill Brush Company Limited
Strategic Report
Year Ended 31 December 2025
Principal risks and uncertainties
Economic and market conditions:
Inflationary pressures, fluctuating raw material costs and changing consumer demand may impact profitability. The Group mitigates this risk through active pricing management and cost control initiatives.
Supply chain disruption:
Global supply chain instability may affect lead times and input costs. The Group maintains diversified supplier relationships and appropriate inventory levels.
Labour availability and cost:
Skilled labour shortages and wage inflation remain a challenge. The Group continues to invest in employee development, training and retention initiatives.
Geopolitical and regulatory factors:
International trading conditions and regulatory changes may impact export markets. The Group maintains close oversight of regulatory developments and invests in systems to enhance operational flexibility.
Sustainability and environmental responsibility
The Group remains committed to reducing its environmental impact. During 2025, continued investment was made in energy efficiency measures across operations. Solar generation continues to provide a significant proportion of on-site electricity requirements, supporting both cost control and long-term environmental objectives.
Financial risk management and policies
Hillbrush manages financial risks through a structured and strategic approach.
Liquidity risk:
The Directors ensure that sufficient facilities and cash resources are available to meet obligations as they fall due. The business continues to generate operating cash flows to support working capital and capital investment requirements.
Credit risk:
Robust credit control procedures remain in place, including customer vetting and active management of debtor balances. The Group’s long-standing banking relationship with Lloyds Bank provides a stable financial foundation.
The Hill Brush Company Limited
Strategic Report
Year Ended 31 December 2025
Future outlook
Whilst economic conditions remain uncertain, the Directors remain confident in the underlying strength of the Hillbrush brand, the quality of its products and the resilience of its customer base.
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Drive growth in Hygiene product sales across both UK and international markets; |
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Secure new customers and further develop distribution channels; |
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Improve margins through disciplined pricing, cost control and operational efficiency; |
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Continue investment in product development and manufacturing capability; |
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Develop and retain skilled employees across the Group; |
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Progress sustainability initiatives in support of long-term environmental and commercial objectives. |
The Board believes that these priorities, together with the Group’s established market position and reputation for quality and service, will support continued stability and sustainable long-term growth.
Approved and authorised by the
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The Hill Brush Company Limited
Directors' Report
Year Ended 31 December 2025
The directors present their report and the for the year ended 31 December 2025.
Directors of the group
The directors who held office during the year were as follows:
Going concern
The Directors have considered the Group’s ability to continue as a going concern and have undertaken a detailed review of its financial position, performance and future prospects.
In assessing the appropriateness of the going concern basis of preparation, the Directors have prepared and reviewed cash flow forecasts and projections for a period of at least 12 months from the date of approval of these financial statements. These forecasts incorporate assumptions regarding trading performance, working capital requirements, capital expenditure and available financing facilities. The Directors have also considered the potential impact of ongoing economic uncertainty, inflationary pressures, wage increases and supply chain volatility on future trading performance and sensitivity analysis has been performed on key assumptions, including revenue levels and margin performance.
The Group continues to generate operating cash flows and maintains appropriate banking facilities to support its working capital requirements and the Group has sufficient liquidity and headroom within its existing facilities. The current overdraft facility is due for renewal as at 29 July 2026 and given the strength of the relationship the Group has with its lenders, the Directors are confident that this facility will be renewed or alternative funding provided.
The Directors are satisfied that the Group has adequate resources to continue in operational existence for the foreseeable future and that it remains appropriate to prepare the financial statements on a going concern basis. Accordingly, the financial statements have been prepared on the going concern basis.
The Hill Brush Company Limited
Directors' Report
Year Ended 31 December 2025
Disclosure of information to the auditor
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 auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Reappointment of auditors
The auditors PKF Francis Clark are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Approved and authorised by the
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The Hill Brush Company 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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Hill Brush Company Limited
Independent Auditor's Report to the Members of The Hill Brush Company Limited
Opinion
We have audited the financial statements of The Hill Brush Company Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated 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 group's and the parent company's affairs as at 31 December 2025 and of the group's loss for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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 group and parent 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.
The Hill Brush Company Limited
Independent Auditor's Report to the Members of The Hill Brush Company Limited
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.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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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 |
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• |
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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 7, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the group’s and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.
The Hill Brush Company Limited
Independent Auditor's Report to the Members of The Hill Brush Company Limited
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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
As part of our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to The Hill Brush Company Limited. This was gained through appropriate audit engagement team selection (ensuring competence and capability to recognise non-compliance) and discussions with management. This covered any knowledge or evidence of actual and potential fraud, litigation and claims, which was followed up with corroborative audit review work. As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the company’s ability to continue trading and the risk of material misstatement to the accounts. Based on our understanding of the group and industry, we identified that the principal risks of non-compliance with laws and regulations relating to breaches around health and safety regulations. We considered the extent to which non-compliance with these laws and regulations may have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as The Companies Act 2006 and relevant tax legislation.
We also discussed with management to what extent the business is exposed to fraud – either inherently because of nature of operations, assets or because of weaknesses in internal controls. From these discussions we have evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements. The key incentive identified is to ensure a good financial position to third parties and we determined that the principal risks were related to the overstatement of profit, either through overstating revenue, understating expenditure or management bias in accounting estimates.
The Hill Brush Company Limited
Independent Auditor's Report to the Members of The Hill Brush Company Limited
Based on this understanding we designed our audit procedures to identify non-compliance with relevant laws and regulations. Our procedures involved the following:
• Enquiries of management regarding their knowledge of any non compliance with laws and regulations that could affect the financial statements. As part of these enquiries we also discussed with management whether there have been any known instances of fraud, of which there were none.
• Reviewed legal and professional costs to identify any possible non compliance.
In response to the identified risk, as part of our audit work we:
• We sampled sales from orders and where available other documentation outside the accounting system to ensure they are complete in the accounts. We have reviewed delivery documentation with customers to ensure the revenue can be recognised in the year, and we reviewed the calculations of accrued and deferred income.
• Audited the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
• Reviewed estimates and judgements made in the accounts for any indication of bias and challenged assumptions used by management in making the estimates.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate omissions, collusion, forgery, misrepresentations, or the override of internal controls. We are also less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements.
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.
The Hill Brush Company Limited
Independent Auditor's Report to the Members of The Hill Brush Company Limited
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.
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Towngate House
2-8 Parkstone Road
Dorset
BH15 2PW
The Hill Brush Company Limited
Consolidated Profit and Loss Account
Year Ended 31 December 2025
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Note |
2025 |
2024 |
|
|
Turnover |
|
|
|
|
Cost of sales |
( |
( |
|
|
Gross profit |
|
|
|
|
Administrative expenses |
( |
( |
|
|
Other operating income |
|
|
|
|
Operating loss |
( |
( |
|
|
Interest payable and similar expenses |
( |
( |
|
|
Loss before tax |
( |
( |
|
|
Tax on loss |
|
( |
|
|
Loss for the financial year |
( |
( |
|
|
Profit/(loss) attributable to: |
|||
|
Owners of the company |
( |
( |
The Hill Brush Company Limited
Consolidated Statement of Comprehensive Income
Year Ended 31 December 2025
|
2025 |
2024 |
|
|
Loss for the year |
( |
( |
|
Foreign currency translation gains |
|
- |
|
Total comprehensive income for the year |
( |
( |
|
Total comprehensive income attributable to: |
||
|
Owners of the company |
( |
( |
The Hill Brush Company Limited
Consolidated Balance Sheet
31 December 2025
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Note |
2025 |
2024 |
|
|
Fixed assets |
|||
|
Tangible assets |
|
|
|
|
Investment property |
|
|
|
|
|
|
||
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Current assets |
|||
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Stocks |
|
|
|
|
Debtors |
|
|
|
|
Cash at bank and in hand |
|
|
|
|
|
|
||
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Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current assets |
|
|
|
|
Total assets less current liabilities |
|
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
|
Provisions for liabilities |
( |
( |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
|
|
|
|
Other reserves |
|
|
|
|
Profit and loss account |
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|
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Equity attributable to owners of the company |
|
|
|
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Shareholders' funds |
|
|
Approved and authorised by the
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Company Registration Number: 03464746
The Hill Brush Company Limited
Balance Sheet
31 December 2025
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Note |
2025 |
2024 |
|
|
Fixed assets |
|||
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Tangible assets |
|
|
|
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Investment property |
|
|
|
|
Investments |
|
|
|
|
|
|
||
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Current assets |
|||
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Stocks |
|
|
|
|
Debtors |
|
|
|
|
Cash at bank and in hand |
|
|
|
|
|
|
||
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Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current assets |
|
|
|
|
Total assets less current liabilities |
|
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
|
Provisions for liabilities |
( |
( |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
|
|
|
|
Other reserves |
|
|
|
|
Profit and loss account |
|
|
|
|
Shareholders' funds |
|
|
The company has taken the exemption in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account. The company made a loss after tax for the financial year of £356,341 (2024 - loss of £320,496).
Approved and authorised by the
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Company Registration Number: 03464746
The Hill Brush Company Limited
Consolidated Statement of Changes in Equity
Year Ended 31 December 2025
|
Share capital |
Other reserves |
Profit and loss account |
Total |
|
|
At 1 January 2025 |
|
|
|
|
|
Loss for the year |
- |
- |
( |
( |
|
Other comprehensive income |
- |
- |
|
|
|
Total comprehensive income |
- |
- |
( |
( |
|
Dividends |
- |
- |
( |
( |
|
At 31 December 2025 |
|
|
|
|
|
Share capital |
Other reserves |
Profit and loss account |
Total |
|
|
At 1 January 2024 |
|
|
|
|
|
Loss for the year |
- |
- |
( |
( |
|
Dividends |
- |
- |
( |
( |
|
At 31 December 2024 |
41,600 |
19,887 |
13,711,184 |
13,772,671 |
The Hill Brush Company Limited
Company Statement of Changes in Equity for the Year Ended 31 December 2025
|
Share capital |
Other reserves |
Profit and loss account |
Total |
|
|
At 1 January 2025 |
|
|
|
|
|
Loss for the year |
- |
- |
( |
( |
|
Dividends |
- |
- |
( |
( |
|
At 31 December 2025 |
|
|
|
|
|
Share capital |
Other reserves |
Profit and loss account |
Total |
|
|
At 1 January 2024 |
|
|
|
|
|
Loss for the year |
- |
- |
( |
( |
|
Dividends |
- |
- |
( |
( |
|
At 31 December 2024 |
41,600 |
19,887 |
13,528,888 |
13,590,375 |
The Hill Brush Company Limited
Consolidated Statement of Cash Flows
Year Ended 31 December 2025
|
Note |
2025 |
2024 |
|
|
Cash flows from operating activities |
|||
|
Loss for the year |
( |
( |
|
|
Adjustments to cash flows from non-cash items |
|||
|
Depreciation and amortisation |
|
|
|
|
Changes in fair value of investment property |
( |
( |
|
|
Loss on disposal of tangible assets |
|
|
|
|
Finance costs |
|
|
|
|
Tax expense |
( |
|
|
|
Foreign exchange translation on subsidiary |
16,634 |
- |
|
|
|
|
||
|
Working capital adjustments |
|||
|
Decrease in stocks |
|
|
|
|
(Increase)/decrease in debtors |
( |
|
|
|
(Decrease)/increase in creditors |
( |
|
|
|
Cash generated from operations |
|
|
|
|
Taxes received |
|
|
|
|
Net cash flow from operating activities |
|
|
|
|
Cash flows from investing activities |
|||
|
Acquisitions of tangible assets |
( |
( |
|
|
Proceeds from sale of tangible assets |
|
|
|
|
Acquisition of investment properties |
- |
( |
|
|
Net cash flows from investing activities |
( |
( |
|
|
Cash flows from financing activities |
|||
|
Interest paid |
( |
( |
|
|
Proceeds from bank borrowing draw downs |
|
- |
|
|
Repayment of bank borrowing |
( |
( |
|
|
Payments to hire purchase contracts |
( |
( |
|
|
Dividends paid |
( |
( |
|
|
Net cash flows from financing activities |
( |
( |
|
|
Net decrease in cash and cash equivalents |
( |
( |
|
|
Cash and cash equivalents at 1 January |
|
|
|
|
Cash and cash equivalents at 31 December |
(117,177) |
34,556 |
|
The Hill Brush Company Limited
Notes to the Financial Statements
Year Ended 31 December 2025
|
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
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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 UK and Republic of Ireland'.
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.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the Company and its subsidiary undertakings drawn up to 31 December 2025.
A subsidiary is an entity controlled by the Company. Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Group.
The Hill Brush Company Limited
Notes to the Financial Statements
Year Ended 31 December 2025
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the Group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the Company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Going concern
The Directors have considered the Group’s ability to continue as a going concern and have undertaken a detailed review of its financial position, performance and future prospects.
In assessing the appropriateness of the going concern basis of preparation, the Directors have prepared and reviewed cash flow forecasts and projections for a period of at least 12 months from the date of approval of these financial statements. These forecasts incorporate assumptions regarding trading performance, working capital requirements, capital expenditure and available financing facilities. The Directors have also considered the potential impact of ongoing economic uncertainty, inflationary pressures, wage increases and supply chain volatility on future trading performance and sensitivity analysis has been performed on key assumptions, including revenue levels and margin performance.
The Group continues to generate operating cash flows and maintains appropriate banking facilities to support its working capital requirements and the Group has sufficient liquidity and headroom within its existing facilities. The current overdraft facility is due for renewal as at 29 July 2026 and given the strength of the relationship the Group has with its lenders, the Directors are confident that this facility will be renewed or alternative funding provided.
The Directors are satisfied that the Group has adequate resources to continue in operational existence for the foreseeable future and that it remains appropriate to prepare the financial statements on a going concern basis. Accordingly, the financial statements have been prepared on the going concern basis.
The Hill Brush Company Limited
Notes to the Financial Statements
Year Ended 31 December 2025
Judgements
There are no key judgements used in the preparation of these accounts. |
Key sources of estimation uncertainty
There are no key sources of estimation uncertainty.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the group’s activities. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the company.
Turnover on sale of goods is recognised in line with incoterms and usually when goods are despatched to customers. Invoices billed in advance are included in deferred income.
Visitor Centre turnover is recongised at point of sale to the customer.
Government grants
Conditional government grant income is recognised under the accrual model within the financial statements and as such are recognised on a systematic basis over the periods in which the company recognised the related costs for which the grants are intended to compensate.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in foreign currency are not retranslated.
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 corporation 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 group operates and generates taxable income.
Deferred corporation tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements and on unused tax losses or tax credits in the Group. Deferred corporation tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
The Hill Brush Company Limited
Notes to the Financial Statements
Year Ended 31 December 2025
Tangible assets
Tangible assets are stated in the statement of financial position 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 |
0-2% straight line |
|
Other property, plant and equipment |
15-33% straight line and 15-20% reducing balance |
|
Motor vehicles |
25% straight line |
Research and development
Research and development expenditure is written off as incurred.
Investment property
The Hill Brush Company Limited
Notes to the Financial Statements
Year Ended 31 December 2025
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 |
|
Goodwill |
15-20 years straight line |
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 the undiscounted amount of cash or other consideration expected to be received after taking into account any provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.
Fixed asset investments in subsidiaries
Fixed asset investments are stated at historical cost less provision for any diminution in value.
Stock
Stocks are valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
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 group 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 the undiscounted amount of cash or other consideration expected to be paid.
The Hill Brush Company Limited
Notes to the Financial Statements
Year Ended 31 December 2025
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.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group 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.
Foreign currency
Company
Transactions in foreign currencies are recorded at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the closing rates at the balance sheet date. All exchange differences are included in the profit and loss account.
Group
The financial statements of overseas subsidiary undertakings are translated at the rate ruling at the balance sheet date. The exchange differences arising on the retranslation of opening net assets is taken directly to reserves. All other translation differences are taken to the profit and loss account with the exception of differences on foreign currency borrowings to the extent that they are used to finance or provide a hedge against group equity investments in foreign enterprises, which are taken to reserves together with the exchange difference on the net investment in these enterprises. Tax charges and credits attributable to exchange differences on those borrowings are also taken to reserves.
The Hill Brush Company Limited
Notes to the Financial Statements
Year Ended 31 December 2025
|
Revenue |
The analysis of the group's Turnover for the year from continuing operations is as follows:
|
2025 |
2024 |
|
|
Sale of goods |
|
|
|
Rendering of services |
|
|
|
|
|
The analysis of the group's Turnover for the year by market is as follows:
|
2025 |
2024 |
|
|
UK |
|
|
|
Rest of world |
|
|
|
|
|
|
Other operating income |
The analysis of the group's other operating income for the year is as follows:
|
2025 |
2024 |
|
|
Government grants |
|
|
|
Sub lease rental income |
|
|
|
Miscellaneous other operating income |
|
|
|
|
|
|
Operating loss |
Arrived at after charging/(crediting)
|
2025 |
2024 |
|
|
Depreciation expense |
|
|
|
Research and development cost |
|
|
|
Foreign exchange losses |
|
|
|
Operating lease expense - plant and machinery |
|
|
|
Loss on disposal of property, plant and equipment |
|
|
The Hill Brush Company Limited
Notes to the Financial Statements
Year Ended 31 December 2025
|
Interest payable and similar expenses |
|
2025 |
2024 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
|
Interest expense on other finance liabilities |
|
|
|
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2025 |
2024 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
|
2025 |
2024 |
|
|
Production |
|
|
|
Administration and support |
|
|
|
|
|
The Hill Brush Company Limited
Notes to the Financial Statements
Year Ended 31 December 2025
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2025 |
2024 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
423,155 |
428,900 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
|
2025 |
2024 |
|
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
|
2025 |
2024 |
|
|
Remuneration |
|
|
|
Company contributions to money purchase pension schemes |
|
|
|
Auditor's remuneration |
|
2025 |
2024 |
|
|
Audit of these financial statements |
31,980 |
31,040 |
The Hill Brush Company Limited
Notes to the Financial Statements
Year Ended 31 December 2025
|
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
|
2025 |
2024 |
|
|
Current taxation |
||
|
UK corporation tax |
|
( |
|
UK corporation tax adjustment to prior periods |
- |
( |
|
9,417 |
(81,247) |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
( |
|
|
Tax (receipt)/expense in the income statement |
( |
|
The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2024 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2025 |
2024 |
|
|
Loss before tax |
( |
( |
|
Corporation tax at standard rate |
( |
( |
|
Decrease in UK and foreign current tax from adjustment for prior periods |
- |
( |
|
Effect of revenues exempt from taxation |
- |
( |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Decrease from tax losses for which no deferred tax asset was recognised |
( |
- |
|
Increase in UK and foreign current tax from unrecognised tax loss or credit |
- |
|
|
Deferred tax (credit)/expense from unrecognised temporary difference from a prior period |
( |
|
|
Increase from effect of tax incentives |
|
|
|
Tax decrease from effect of adjustment in research and development tax credit |
- |
( |
|
Tax increase from effect of unrelieved loss on foreign subsidiaries |
|
- |
|
Total tax (credit)/charge |
( |
|
The Hill Brush Company Limited
Notes to the Financial Statements
Year Ended 31 December 2025
|
Tangible assets |
Group
|
Land and buildings |
Motor vehicles |
Other property, plant and equipment |
Total |
|
|
Cost or valuation |
||||
|
At 1 January 2025 |
|
|
|
|
|
Additions |
|
|
|
|
|
Disposals |
- |
( |
( |
( |
|
At 31 December 2025 |
|
|
|
|
|
Depreciation |
||||
|
At 1 January 2025 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
Eliminated on disposal |
- |
( |
( |
( |
|
At 31 December 2025 |
|
|
|
|
|
Carrying amount |
||||
|
At 31 December 2025 |
|
|
|
|
|
At 31 December 2024 |
|
|
|
|
Included within the net book value of land and buildings above is £8,032,895 (2024 - £8,138,124) in respect of freehold land and buildings.
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
|
2025 |
2024 |
|
|
Other property, plant and equipment |
548,580 |
857,115 |
Capitalised borrowing costs
Within Land and buildings are capitalised borrowing costs of £
The Hill Brush Company Limited
Notes to the Financial Statements
Year Ended 31 December 2025
Company
|
Land and buildings |
Motor vehicles |
Other property, plant and equipment |
Total |
|
|
Cost or valuation |
||||
|
At 1 January 2025 |
|
|
|
|
|
Additions |
|
|
|
|
|
Disposals |
- |
( |
( |
( |
|
At 31 December 2025 |
|
|
|
|
|
Depreciation |
||||
|
At 1 January 2025 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
Eliminated on disposal |
- |
( |
( |
( |
|
At 31 December 2025 |
|
|
|
|
|
Carrying amount |
||||
|
At 31 December 2025 |
|
|
|
|
|
At 31 December 2024 |
|
|
|
|
Included within the net book value of land and buildings above is £8,032,895 (2024 - £8,138,124) in respect of freehold land and buildings.
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
|
2025 |
2024 |
|
|
Other property, plant and equipment |
548,580 |
857,115 |
Capitalised borrowing costs
Within Land and buildings are capitalised borrowing costs of £
The Hill Brush Company Limited
Notes to the Financial Statements
Year Ended 31 December 2025
|
Investment properties |
Group and company
|
2025 |
|
|
At 1 January |
|
|
Fair value adjustments |
|
|
At 31 December |
|
The investment properties have been valued by an independant third party, Woolley & Wallis, on open market basis. Valuation signed by B J Marshall (Registered Valuer) and D E Wheeler (Chartered Surveyor). The historic costs of such properties shown at a valuation of £1,595,759 (2024 - £1,589,624) is £46,111 (2024 - £46,111).
The fair value increase of £6,135 (2024 - £63,035) is included in other operating income.
|
Investments |
Company
|
2025 |
2024 |
|
|
Investments in subsidiaries |
|
|
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Country of incorporation |
Holding |
Proportion of voting rights and shares held |
|
|
2025 |
2024 |
|||
|
Subsidiary undertakings |
||||
|
|
UK |
Ordinary |
|
|
|
|
USA |
Ordinary |
|
|
The Hill Brush Company Limited
Notes to the Financial Statements
Year Ended 31 December 2025
|
Subsidiary undertakings |
|
The Hill Brush Co (Mere) The principal activity of The Hill Brush Co (Mere) is |
|
Hill Brush Inc The principal activity of Hill Brush Inc is |
|
Stocks |
|
Group |
Company |
|||
|
2025 |
2024 |
2025 |
2024 |
|
|
Raw materials and consumables |
|
|
|
|
|
Work in progress |
|
|
|
|
|
Finished goods and goods for resale |
|
|
|
|
|
|
|
|
|
|
Group and Company
Impairment of inventories
The amount of impairment loss included in profit or loss is £278,766 (2024 - £137,924).
|
Debtors |
|
Group |
Company |
|||
|
2025 |
2024 |
2025 |
2024 |
|
|
Trade debtors |
|
|
|
|
|
Amounts owed by related parties |
- |
- |
|
|
|
Other debtors |
|
|
|
|
|
Prepayments |
|
|
|
|
|
Income tax asset |
|
|
|
|
|
|
|
|
|
|
The Hill Brush Company Limited
Notes to the Financial Statements
Year Ended 31 December 2025
|
Cash and cash equivalents |
|
Group |
Company |
|||
|
2025 |
2024 |
2025 |
2024 |
|
|
Cash on hand |
|
|
|
|
|
Cash at bank |
|
|
|
|
|
|
|
|
|
|
|
Bank overdrafts |
( |
( |
( |
( |
|
Cash and cash equivalents in statement of cash flows |
(117,177) |
34,556 |
(123,433) |
6,385 |
|
Creditors |
|
Group |
Company |
||||
|
Note |
2025 |
2024 |
2025 |
2024 |
|
|
Due within one year |
|||||
|
Loans and borrowings |
|
|
|
|
|
|
Trade creditors |
|
|
|
|
|
|
Social security and other taxes |
|
|
|
|
|
|
Outstanding defined contribution pension costs |
|
|
|
|
|
|
Other creditors |
|
|
|
|
|
|
Accruals |
|
|
|
|
|
|
|
|
|
|
||
|
Due after one year |
|||||
|
Loans and borrowings |
|
|
|
|
|
|
Deferred tax and other provisions |
Group and Company
|
Deferred tax |
|
|
At 1 January 2025 |
|
|
Increase (decrease) in existing provisions |
( |
|
At 31 December 2025 |
|
|
|
|
The deferred tax is made up of liabilities of £297,742 (2024: £296,207) for the revaluation of investment properties and £624,368 (2024: £679,799) for the accelerated capital allowances over depreciation, offset by £106,258 (2024: £nil) for tax losses carried forward.
The Hill Brush Company Limited
Notes to the Financial Statements
Year Ended 31 December 2025
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
|
Share capital |
Allotted, called up and fully paid shares
|
2025 |
2024 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
41,600 |
|
41,600 |
|
Loans and borrowings |
Non-current loans and borrowings
|
Group |
Company |
|||
|
2025 |
2024 |
2025 |
2024 |
|
|
Bank borrowings |
|
|
|
|
|
Hire purchase contracts |
|
|
|
|
|
|
|
|
|
|
Current loans and borrowings
|
Group |
Company |
|||
|
2025 |
2024 |
2025 |
2024 |
|
|
Bank borrowings |
|
|
|
|
|
Bank overdrafts |
|
|
|
|
|
Hire purchase contracts |
|
|
|
|
|
|
|
|
|
|
The Hill Brush Company Limited
Notes to the Financial Statements
Year Ended 31 December 2025
Bank borrowings
|
|
|
|
|
Bank loan is secured by an unlimited debenture dated 14/08/14, which incorporates a fixed and floating charge over the assets of the company. There is also a first legal charge, dated 12/11/15, over the land adjacent to Dead Maid Quarry Industrial Estate, Zeals, Warminster, BA12 6LA |
The finance leases are secured against the relevant asset.
|
Obligations under leases and hire purchase contracts |
Group
Operating leases
The total of future minimum lease payments is as follows:
|
2025 |
2024 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Company
Operating leases
The total of future minimum lease payments is as follows:
|
2025 |
2024 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
The Hill Brush Company Limited
Notes to the Financial Statements
Year Ended 31 December 2025
|
Related party transactions |
The company and group have taken advantage of the exemptions in FRS 102 from disclosing transactions with other members of the group whose financial statements have been included in these consolidated financial statements.
Company
Summary of transactions with key management
The key management personnel of the Group and Company are considered to be the Directors of the Group. The Directors remuneration is disclosed at note 8.
|
Transactions with directors |
|
2025 |
At 1 January 2025 |
Advances to director |
At 31 December 2025 |
|
C E Coward |
|||
|
Interest free loan repayable on demand |
( |
( |
( |
|
2024 |
At 1 January 2024 |
Advances to director |
Repayments by director |
At 31 December 2024 |
|
C E Coward |
||||
|
Interest free loan repayable on demand |
( |
( |
- |
( |
|
P W Coward |
||||
|
Interest free loan repayable on demand |
( |
- |
|
- |
During the year dividends of £37,422 (2024 - £37,422) were payable the directors.
|
Control |
The company is controlled by the Coward family.
The Hill Brush Company Limited
Notes to the Financial Statements
Year Ended 31 December 2025
|
Analysis of changes in net debt |
Group
|
At 1 January 2025 |
Financing cash flows |
New finance leases |
At 31 December 2025 |
|
|
Cash and cash equivalents |
||||
|
Cash |
58,664 |
1,690 |
- |
60,354 |
|
Overdrafts |
(24,108) |
(153,423) |
- |
(177,531) |
|
34,556 |
(151,733) |
- |
(117,177) |
|
|
Borrowings |
||||
|
Bank borrowings |
(924,646) |
(101,179) |
- |
(1,025,825) |
|
Hire purchase contracts |
(604,293) |
276,840 |
(36,074) |
(363,527) |
|
(1,528,939) |
175,661 |
(36,074) |
(1,389,352) |
|
|
|
||||
|
( |
|
( |
( |
|