Registered number:
FOR THE YEAR ENDED 30 SEPTEMBER 2025
H G WALTER LIMITED
CONTENTS
H G WALTER LIMITED
COMPANY INFORMATION
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H G WALTER LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2025
The directors present the strategic report for the year ended 30 September 2025.
HG Walter is an independent, family-run butcher with a clear and longstanding mission: to provide every professional chef and home cook with an exceptional product and service with which to create exceptional food. Established in 1972 by Peter Heanen, the business has grown to become one of the UK's most respected butchers, supplying some of the country's finest chefs and restaurants. At the heart of everything we do is a commitment to quality meat, transparent and sustainable supply chains, and the promotion of responsible farming practices. Our ambition remains unchanged: to be the best butcher in the UK.
The company's principal activity continued to be the sale of meat and meat products.
HG Walter is an independent, family-run butcher with a clear and longstanding mission: to provide every professional chef and home cook with an exceptional product and service with which to create exceptional food. Established in 1972 by Peter Heanen, the business has grown to become one of the UK's most respected butchers, supplying some of the country's finest chefs and restaurants. At the heart of everything we do is a commitment to quality meat, transparent and sustainable supply chains, and the promotion of responsible farming practices. Our ambition remains unchanged: to be the best butcher in the UK.
The company's principal activity continued to be the sale of meat and meat products.
The profit and loss account on page 11 of the financial statements provides a full summary of the company's trading results for the year. The directors are pleased to report that performance has been strong and results are ahead of the prior year.
During the year, the business enjoyed significant growth, with turnover increasing by 15.1% from £48.3m to £55.6m. This growth was principally driven by an increasing share of the wholesale market and the continued expansion of our product range. The additional activity has continued to generate a strong return on the investment made in our warehouse premises.
The wholesale sector of the business remains a core strength, delivering increasing profits whilst navigating a turbulent and competitive marketplace. The directors remain focused on continuing to grow and strengthen this area of the business, alongside further developing the company's online presence to achieve sustained growth in both revenue and profitability.
The company's balance sheet remains robust. Shareholders' funds have increased to £11.6m (2024: £9.8m), reflecting the business's profitability. Net current assets stand at £0.7m (2024: £6.0m), with the reduction primarily attributable to capital deployed into the significant investment in warehousing and logistics infrastructure during the year. This investment is expected to underpin further operational capacity and a broader customer base going forward.
The directors continue to keep the business and the wider industry landscape under close review to minimise and mitigate commercial risk. The company's extensive product range continues to evolve in response to customer demand and market opportunity.
During the year, the business enjoyed significant growth, with turnover increasing by 15.1% from £48.3m to £55.6m. This growth was principally driven by an increasing share of the wholesale market and the continued expansion of our product range. The additional activity has continued to generate a strong return on the investment made in our warehouse premises.
The wholesale sector of the business remains a core strength, delivering increasing profits whilst navigating a turbulent and competitive marketplace. The directors remain focused on continuing to grow and strengthen this area of the business, alongside further developing the company's online presence to achieve sustained growth in both revenue and profitability.
The company's balance sheet remains robust. Shareholders' funds have increased to £11.6m (2024: £9.8m), reflecting the business's profitability. Net current assets stand at £0.7m (2024: £6.0m), with the reduction primarily attributable to capital deployed into the significant investment in warehousing and logistics infrastructure during the year. This investment is expected to underpin further operational capacity and a broader customer base going forward.
The directors continue to keep the business and the wider industry landscape under close review to minimise and mitigate commercial risk. The company's extensive product range continues to evolve in response to customer demand and market opportunity.
The principal risk to the company is supply chain disruption, compounded by the volatility of commodity pricing and product availability across the meat industry. Fluctuations in input costs and periods of constrained supply can materially impact both the cost of goods sold and the company's ability to fulfil customer demand in a timely and consistent manner. This risk is further heightened by the highly competitive marketplace in which the company operates. The company mitigates this risk, in part, by maintaining a diverse, carefully managed supply chain that does not rely on any single supplier. There are, however, factors that are more difficult to mitigate, including political, weather-related, and regulatory challenges, which the directors continue to monitor closely.
The company's financial instruments arise wholly and directly from its operations. The principal instruments comprise trade debtors, cash at bank, and trade creditors. The financial risks arising from these instruments are considered low. The business's financial stability enables it to maintain strong terms with preferred suppliers and their credit partners.
Cash reserves have remained healthy throughout the year, and the company continues to operate with the support of bank facilities. The directors review working capital regularly. The directors retain responsibility for monitoring financial risk management, while the finance department implements policies and operates within specific guidelines set by the board.
The company's financial instruments arise wholly and directly from its operations. The principal instruments comprise trade debtors, cash at bank, and trade creditors. The financial risks arising from these instruments are considered low. The business's financial stability enables it to maintain strong terms with preferred suppliers and their credit partners.
Cash reserves have remained healthy throughout the year, and the company continues to operate with the support of bank facilities. The directors review working capital regularly. The directors retain responsibility for monitoring financial risk management, while the finance department implements policies and operates within specific guidelines set by the board.
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H G WALTER LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
Principal risks and uncertainties (continued)
Credit risk
The company has implemented policies requiring appropriate credit checks of potential customers before approving new accounts. Furthermore, credit limits are set in place and reviewed every quarter.
Liquidity and cash flow risk
The directors consider the company to have sufficient available funds to support ongoing operations. The board receives monthly cash flow reporting, during which plans, opportunities, and risks are discussed.
Price risk
The company's exposure to price risk is actively managed through a policy of pre-authorisation of expenditure to ensure goods and services are procured at competitive prices. Commodity price risk in the cost of goods sold is further mitigated through careful, proactive stock management, with the directors monitoring market conditions on an ongoing basis.
Credit risk
The company has implemented policies requiring appropriate credit checks of potential customers before approving new accounts. Furthermore, credit limits are set in place and reviewed every quarter.
Liquidity and cash flow risk
The directors consider the company to have sufficient available funds to support ongoing operations. The board receives monthly cash flow reporting, during which plans, opportunities, and risks are discussed.
Price risk
The company's exposure to price risk is actively managed through a policy of pre-authorisation of expenditure to ensure goods and services are procured at competitive prices. Commodity price risk in the cost of goods sold is further mitigated through careful, proactive stock management, with the directors monitoring market conditions on an ongoing basis.
The directors recognise that people are central to the business's success. The company strives to create a positive, inclusive workspace where every employee can grow and develop new skills. Training and professional development remain key priorities, with opportunities ranging from butchery apprenticeships and tailored office staff programs to hands-on farm visits that strengthen our understanding of the supply chain. The directors are grateful to all members of the team for their contribution during the year.
Sustainability is embedded in our business model and is central to our long-term strategy. We are committed to reducing our environmental impact, supporting responsible farming, and contributing positively to the communities in which we operate. The following summarises our key initiatives and commitments during the year.
∙Carbon Footprint Measurement: HG Walter has been working with external consultants on an annual carbon footprint measurement project, measuring Scopes 1, 2, and 3 emissions. This work establishes a robust baseline from which targeted emissions-reduction and mitigation plans will be developed.
∙Decarbonisation Initiatives: The business is partnering with Brunel University on their Park Royal Net Zero Food Systems project, which will guide the company through decarbonisation initiatives for the new site build.
∙Supply Chain Transparency and Waste Reduction: HG Walter operates a whole-carcass usage model, minimising food waste by utilising all potential products across areas of food production. Our in-house range of handmade burgers, sausages, and bacon exemplifies this.
∙Support for British Farmers: We prioritise sourcing native, free-range breeds and products from British farmers, reducing food miles and actively supporting the local agricultural economy.
∙Eco-Friendly Packaging: We use recyclable, reusable, or reduced-volume packaging materials and continue to work with specialist packaging experts to identify more sustainable alternatives to single-use plastic.
∙Sustainable Farming Partnerships: We collaborate with farms that practice biodiversity-friendly and, where possible, regenerative farming methods, ensuring the highest animal welfare standards. A key priority is identifying ways HG Walter can actively support farmers in their transition to more sustainable systems.
∙UK Farming Initiative Support: We actively support Pasture for Life, Slow Food UK, and the Soil Association in their efforts to promote positive and lasting change across UK farming.
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H G WALTER LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
Sustainability and ethical practices (continued)
∙Community Engagement: The company partners with local initiatives and charitable organisations – including The Felix Project, Refettorio Felix, and St Andrews Church – that align with our corporate social responsibility values.
The non-financial key performance indicators include ensuring that product and service quality is of the highest standard whilst continually striving to improve quality control measures. The company also considers customer care services significant.
The directors are mindful of environmental issues and have sought to minimise the company's environmental impact.
In addition, other non-financial key performance indicators include raising brand awareness and the company profile, measured by both customer and supplier loyalties and other attributes such as patents and trademarks. Key performance indicators are maintained across all parts of the business to ensure we continuously monitor and challenge our results.
The company continues its commitment to supplying a range of products to a widening market of customers who require wholesale products at a competitive price. The business remains focused on enhancing its logistics network and production facilities, and forecasts further growth from supply to major retailers, as well as expanding its online presence. The traditional customer base in hospitality and retail remains at the heart of the company’s strategy, and the directors remain committed to delivering the highest-quality service to all customers.
In January 2026, the company vacated its former wholesale premises and successfully moved into a larger, newly refurbished wholesale facility, located close to the previous site. This new facility provides a substantial increase in capacity and operational efficiency, supporting the business's long-term growth and enabling it to meet rising demand across all customer segments.
The company remains well-positioned to deliver long-term value to stakeholders by prioritising quality, innovation, and sustainable practices. Through strategic investments, operational excellence and its continued focus on exceptional service, the directors are confident in sustaining growth and maintaining the company’s strong reputation in the market.
In January 2026, the company vacated its former wholesale premises and successfully moved into a larger, newly refurbished wholesale facility, located close to the previous site. This new facility provides a substantial increase in capacity and operational efficiency, supporting the business's long-term growth and enabling it to meet rising demand across all customer segments.
The company remains well-positioned to deliver long-term value to stakeholders by prioritising quality, innovation, and sustainable practices. Through strategic investments, operational excellence and its continued focus on exceptional service, the directors are confident in sustaining growth and maintaining the company’s strong reputation in the market.
This report was approved by the board and signed on its behalf.
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H G WALTER LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2025
The directors present their report and the financial statements for the year ended 30 September 2025.
The profit for the year, after taxation, amounted to £2,998,730 (2024 - £2,987,544).
Ordinary dividends were paid amounting to £1,140,495 (2024: £981,093).
The directors who served during the year were:
As permitted by s414c(11) of the Companies Act 2006, the directors have elected to disclose information, required to be in the directors' report by Schedule 7 of the 'Large and Medium sized Companies and Groups (Accounts and Reports) Regulations 2008', in the strategic report.
This report was approved by the board and signed on its behalf.
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H G WALTER LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2025
The directors are responsible for preparing the strategic report, the directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the company's financial statements and then apply them consistently;
∙make judgments 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 company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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H G WALTER LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF H G WALTER LIMITED
FOR THE YEAR ENDED 30 SEPTEMBER 2025
We have audited the financial statements of H G Walter Limited (the 'company') for the year ended 30 September 2025, which comprise the profit and loss account, the balance sheet, the statement of changes in equity, the statement of cash flows and the 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).
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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
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 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.
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.
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H G WALTER LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF H G WALTER LIMITED (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
In the light of the 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 or the directors' report.
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H G WALTER LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF H G WALTER LIMITED (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
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:
∙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, and from our commercial knowledge and experience of the company's sector;
∙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, employment, and food safety legislation;
∙we assessed the extent of compliance with the laws and regulations identified above through making enquiries 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 throughout 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 enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
∙considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
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 a sample of journal entries to identify unusual transactions;
∙assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 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;
∙reading the minutes of meetings of those charged with governance;
∙enquiring of management as to actual and potential litigation and claims; and
∙reviewing correspondence with HM Revenue and Customs.
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.
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H G WALTER LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF H G WALTER LIMITED (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
Auditor's responsibilities for the audit of the financial statements (continued)
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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.
for and on behalf of
Chartered Accountants
Statutory Auditor
16 Great Queen Street
Covent Garden
WC2B 5AH
Date: 7 May 2026
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H G WALTER LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2025
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H G WALTER LIMITED
BALANCE SHEET
AS AT 30 SEPTEMBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 15 to 31 form part of these financial statements.
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H G WALTER LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2025
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H G WALTER LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
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H G WALTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
H G Walter Limited is a family-owned and run, independent butcher renowned for supplying some of London’s finest restaurants. The company operates from a warehouse, and retail shop in the UK. The company exclusively serves customers within the country.
The company is a private company limited by shares incorporated in England and Wales. The address of its registered office and principal place of business is Unit 2, Origin Business Park, Rainsford Road, Park Royal, London, NW10 7FW.
The financial statements are presented in Sterling (£), which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The company is a private company limited by shares incorporated in England and Wales. The address of its registered office and principal place of business is Unit 2, Origin Business Park, Rainsford Road, Park Royal, London, NW10 7FW.
The financial statements are presented in Sterling (£), which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies (see note 3).
The following principal accounting policies have been applied:
After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence and meet its liabilities as they fall due for the foreseeable future, being a period of at least twelve months from the date these financial statements were approved. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
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H G WALTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
2.Accounting policies (continued)
The company has reclassified £3,612,128 of administrative expenses reported in the prior year to cost of sales to more appropriately reflect the nature of these costs within the company’s operating activities.
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H G WALTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
2.Accounting policies (continued)
The tax expense for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
Current tax is the amount of income tax payable in respect of taxable profit for the year or prior years.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.
Current tax is the amount of income tax payable in respect of taxable profit for the year or prior years.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.
Deferred tax arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
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H G WALTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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H G WALTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
2.Accounting policies (continued)
The company has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments.
Financial assets and financial liabilities are recognised when the company becomes party to the contractual provisions of the instrument.
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 company after deducting all of its liabilities.
The company’s policies for its major classes of financial assets and financial liabilities are set out below.
Financial assets
Basic financial assets, including trade and other debtors, and cash and bank balances, are initially recognised at transaction price, 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Basic financial assets, including trade and other debtors, and cash and bank balances, are initially recognised at transaction price, 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.
Financial liabilities
Basic financial liabilities, including trade and other creditors, and bank loans, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Impairment of financial assets
Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account.
Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the company would receive for the asset if it were to be sold at the reporting date.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
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.
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H G WALTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
2.Accounting policies (continued)
Derecognition of financial assets and financial liabilities
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
Offsetting of financial assets and financial liabilities
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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.
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Ordinary shares are classified as equity.
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H G WALTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Key accounting estimates and assumptions
Determining residual values and useful economic lives of tangible fixed assets
The company depreciates tangible fixed assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance, as well as expectations about future use, and therefore requires estimates and assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including product life cycles and maintenance programmes.
Judgement is applied by management when determining the residual values for tangible fixed assets. When determining the residual value, management aim to assess the amount that the company would currently obtain for the disposal of the assets, if it were already of the condition expected at the end of its useful economic life.
Dilapidations
A provision has been made for potential dilapidation claims. These claims generally arise from obligations to restore leased premises to their original condition at the end of a lease term. Estimating the amount of any dilapidation liability requires judgment regarding both the extent of the dilapidations and the cost of the required repairs. The directors have made their assessment of the potential liability based on available information, including:
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H G WALTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
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H G WALTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
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H G WALTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
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H G WALTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
10.Taxation (continued)
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