Company registration number 00737719 (England and Wales)
HAROLD HINCHLIFFE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
HAROLD HINCHLIFFE LIMITED
COMPANY INFORMATION
Directors
Mr J H Hinchliffe
Mr F A Brown
Company number
00737719
Registered office
Hartcliffe Mills
Denby Dale
Huddersfield
HD8 8QL
Auditor
Wheawill & Sudworth Limited
35 Westgate
Huddersfield
West Yorkshire
HD1 1PA
Bankers
HSBC Bank plc
2 Cloth Hall Street
Huddersfield
West Yorkshire
HD1 2ES
HAROLD HINCHLIFFE LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Group statement of comprehensive income
8
Group balance sheet
9 - 10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 30
HAROLD HINCHLIFFE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 1 -

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

Principal activities

The principal activity of the company and group continued to be that of yarn spinners.

During the year the group has continued to manufacture and sell cashmere and fine lambswool yarns to the knitwear and weaving industries.

Review of the business

This was a difficult year with customer demand reduced across the board. We have implemented a cost reduction programme to make savings across the business and help return it to profitability in the relative short term. Initiatives are also underway to increase sales volumes and benefits from production efficiencies.

Inflationary pressure on raw material costs, wages and energy prices is a continuing challenge in the business. The on-going challenges of political and economic uncertainties will require careful management of the Group’s resources.

Financial instruments

The Group’s principal financial instruments comprise of bank balances, trade debtors and trade creditors. The main purpose of these instruments is to raise funds for the Group’s operations and to finance the Group’s activities. Due to the nature of the financial instruments used by the Group there is no exposure to price risk. The Group’s approach to managing other risks applicable to the financial instruments is shown below.

In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of deposits at floating rates of interest. The Group makes use of money market facilities where funds are available. Exposure to currency risks are constantly monitored to ensure that adverse movements are contained.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. Credit insurance is used to cover trade debtors in export markets wherever available.

Trade creditor liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

On behalf of the board

Mr J H Hinchliffe
Director
26 May 2026
HAROLD HINCHLIFFE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 2 -

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

Results and dividends

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

Ordinary dividends were paid amounting to £1,189. The directors recommend payment of a final dividend amounting to £1,189.

Preference dividends were paid amounting to £10,703. The directors recommend a final dividend amounting to £10,703 to be paid.

Directors

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

Mr J H Hinchliffe
Mrs A M Kenyon
(Deceased 17 April 2026)
Mr F A Brown

The board are sad to report the passing of Mrs A M Kenyon on 17 April 2026.

Directors' interests
Ordinary shares of 5p each
30 September 2025
30 September 2024
Mr J H Hinchliffe
6,680
6,680
Mrs A M Kenyon
1,304
1,304
Mr F A Brown
-
-
5% cumulative preference shares of 5p each
30 September 2025
30 September 2024
Mr J H Hinchliffe
51,399
51,399
Mrs A M Kenyon
11,743
24,185
Mr F A Brown
-
-

Included above are 2,500 ordinary shares of 5p each and 17,500 cumulative preference shares of 5p each are jointly held by J H Hinchliffe and the James Harold Hinchliffe Settlement 2018.

Mrs A M Kenyon held 1,250 £1 ordinary shares in the subsidiary Z Hinchliffe & Sons Limited throughout the year.

Mr J H Hinchliffe held 12,592 £1 ordinary shares and 4,777 cumulative £1 preference in the subsidiary Z Hinchliffe & Sons Limited throughout the year .

The directors hold no shares in the subsidiary companies other than as shown above.

Qualifying third party indemnity provisions

A qualifying indemnity provision (as defined in section 236 of the Companies Act 2006) has been provided to the directors.

Auditor

Wheawill & Sudworth Limited were re-appointed as the company’s auditor during the year and have expressed their willingness to continue in that capacity.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

HAROLD HINCHLIFFE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 3 -

United Kingdom company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have elected to prepare the group and parent company 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 parent company, and of the profit or loss of the group for that period.

In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

- make judgements and accounting estimates that are reasonable and prudent;

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

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and parent 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 parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent 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 parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Strategic report

In accordance with section 414C (11) Companies Act 2006, the following information required to be contained in this report is set out in the company’s Strategic Report on page 1 : principal activities, business review, future developments and financial risks.true

Statement of disclosure to auditor

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

On behalf of the board
Mr J H Hinchliffe
Director
26 May 2026
HAROLD HINCHLIFFE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HAROLD HINCHLIFFE LIMITED
- 4 -
Opinion

We have audited the financial statements of Harold Hinchliffe Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2025 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

- give a true and fair view of the state of the group's and the parent company's affairs as at 30 September 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's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

- T he information given in the strategic report and the directors' r eport 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.

HAROLD HINCHLIFFE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HAROLD HINCHLIFFE LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identifie d material misstatements in the strategic report or the directors' r eport.

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

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

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

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

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

Responsibilities of directors

As explained more fully in the directors' r esponsibilities s tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the group's and 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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:

Obtained an understanding of the legal and regulatory framework applicable to the entity, including enquiries of management regarding known or suspected instances of non-compliance with laws and regulations;

Assessment of the susceptibility of the entity’s financial statements to material misstatement, including how fraud might occur; and

Gained clear understanding of the entity’s current activities, including obtaining an understanding of its control environment.

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 or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control.

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

- Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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

Use of our report

This report is made solely to the parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

David Butterworth (Senior Statutory Auditor)
For and on behalf of Wheawill & Sudworth Limited, Statutory Auditor
Chartered Accountants
35 Westgate
Huddersfield
West Yorkshire
HD1 1PA
26 May 2026
HAROLD HINCHLIFFE LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 7 -
2025
2024
Notes
£
£
Turnover
3
9,831,591
11,035,044
Cost of sales
(9,403,520)
(9,892,531)
Gross profit
428,071
1,142,513
Distribution costs
(657,556)
(953,717)
Administrative expenses
(855,618)
(900,990)
Other operating income
103,700
64,011
Operating loss
4
(981,403)
(648,183)
Interest receivable and similar income
7
339
694
Loss before taxation
(981,064)
(647,489)
Tax on loss
8
(23,000)
(10,250)
Loss for the financial year
22
(1,004,064)
(657,739)
Loss for the financial year is attributable to:
- Owners of the parent company
(599,943)
(386,533)
- Non-controlling interests
(404,121)
(271,206)
(1,004,064)
(657,739)

None of the group’s activities were acquired or discontinued during the above two financial periods.

The notes on pages 15 to 30 form part of these financial statements.

HAROLD HINCHLIFFE LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 8 -
2025
2024
£
£
Loss for the year
(1,004,064)
(657,739)
Other comprehensive income
Actuarial (loss)/gain on defined benefit pension schemes
(34,000)
8,000
Cash flow hedges gain arising in the year
-
0
-
0
Total comprehensive income for the year
(1,038,064)
(649,739)
Total comprehensive income for the year is attributable to:
- Owners of the parent company
(620,227)
(381,760)
- Non-controlling interests
(417,837)
(267,979)
(1,038,064)
(649,739)

The notes on pages 15 to 30 form part of these financial statements.

HAROLD HINCHLIFFE LIMITED
GROUP BALANCE SHEET
AS AT
30 SEPTEMBER 2025
30 September 2025
- 9 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
10
2,296,846
2,098,019
Investment property
11
3,772,000
3,680,000
6,068,846
5,778,019
Current assets
Stocks
14
7,732,756
8,655,499
Debtors
15
3,833,450
3,163,383
Cash at bank and in hand
2,506,564
3,155,062
14,072,770
14,973,944
Creditors: amounts falling due within one year
16
(1,067,645)
(590,529)
Net current assets
13,005,125
14,383,415
Total assets less current liabilities
19,073,971
20,161,434
Provisions for liabilities
Deferred tax liability
17
472,703
449,703
(472,703)
(449,703)
Deferred income
18
(35,100)
(46,800)
Net assets excluding pension liability
18,566,168
19,664,931
Defined benefit pension liability
19
-
0
(39,000)
Net assets
18,566,168
19,625,931
Capital and reserves
Called up share capital
20
6,711
6,711
Other reserves
22
242,537
242,537
Non-distributable profits reserve
21
1,856,835
1,815,670
Distributable profit and loss reserves
22
8,957,974
9,631,259
Equity attributable to owners of the parent company
11,064,057
11,696,177
Non-controlling interests
7,502,111
7,929,754
Total equity
18,566,168
19,625,931

The notes on pages 15 to 30 form part of these financial statements.

HAROLD HINCHLIFFE LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
30 SEPTEMBER 2025
30 September 2025
- 10 -

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 26 May 2026 and are signed on its behalf by:
26 May 2026
Mr J H Hinchliffe
Director
Company registration number 00737719 (England and Wales)
HAROLD HINCHLIFFE LIMITED
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2025
30 September 2025
- 11 -
2025
2024
Notes
£
£
£
£
Fixed assets
Investments
12
6,711
6,711
Current assets
Cash at bank and in hand
3,205
2,872
Creditors: amounts falling due within one year
16
(1,340)
(1,340)
Net current assets
1,865
1,532
Net assets
8,576
8,243
Capital and reserves
Called up share capital
20
6,711
6,711
Distributable profit and loss reserves
22
1,865
1,532
Total equity
8,576
8,243

The notes on pages 15 to 30 form part of these financial statements.

As permitted by section 408 of the Companies Act 2006, the c ompany has not presented its own profit and loss account and related notes. The c ompany’s profit for the year was £12,225 (2024 - £12,225 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 26 May 2026 and are signed on its behalf by:
26 May 2026
Mr J H Hinchliffe
Director
Company registration number 00737719 (England and Wales)
HAROLD HINCHLIFFE LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 12 -
Share capital
Capital reserve
Non-distri-butable profits
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
£
Balance at 1 October 2023
6,711
242,537
1,797,324
10,049,072
12,095,644
8,207,841
20,303,485
Year ended 30 September 2024:
Loss for the year
-
-
18,346
(404,879)
(386,533)
(271,206)
(657,739)
Other comprehensive income:
Actuarial gains on defined benefit plans
-
-
-
8,000
8,000
-
8,000
Amounts attributable to non-controlling interests
-
-
-
(3,227)
(3,227)
3,227
-
Total comprehensive income
-
-
18,346
(400,106)
(381,760)
(267,979)
(649,739)
Dividends
9
-
-
-
(11,892)
(11,892)
(10,108)
(22,000)
Purchase of shares in subsidiary from non-controlling interest
-
-
-
(5,815)
(5,815)
-
(5,815)
Balance at 30 September 2024
6,711
242,537
1,815,670
9,631,259
11,696,177
7,929,754
19,625,931
Year ended 30 September 2025:
Loss for the year
-
-
41,165
(641,108)
(599,943)
(404,121)
(1,004,064)
Other comprehensive income:
Actuarial gains on defined benefit plans
-
-
-
(34,000)
(34,000)
-
(34,000)
Amounts attributable to non-controlling interests
-
-
-
13,716
13,716
(13,716)
-
Total comprehensive income
-
-
41,165
(661,392)
(620,227)
(417,837)
(1,038,064)
Dividends
9
-
-
-
(11,893)
(11,893)
(9,806)
(21,699)
Balance at 30 September 2025
6,711
242,537
1,856,835
8,957,974
11,064,057
7,502,111
18,566,168

The notes on pages 15 to 30 form part of these financial statements.

HAROLD HINCHLIFFE LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2023
6,711
1,199
7,910
Year ended 30 September 2024:
Profit and total comprehensive income for the year
-
12,225
12,225
Dividends
9
-
(11,892)
(11,892)
Balance at 30 September 2024
6,711
1,532
8,243
Year ended 30 September 2025:
Profit and total comprehensive income
-
12,225
12,225
Dividends
9
-
(11,892)
(11,892)
Balance at 30 September 2025
6,711
1,865
8,576

The notes on pages 15 to 30 form part of these financial statements.

HAROLD HINCHLIFFE LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 14 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
28
(284,798)
1,729,485
Investing activities
Purchase of tangible fixed assets
(391,295)
(146,800)
Interest received
339
694
Net cash used in investing activities
(390,956)
(146,106)
Financing activities
Purchase of shares in subsidiary from non-controlling interest
-
(5,815)
Dividends paid to equity shareholders
(11,893)
(11,892)
Dividends paid to non-controlling interests
(9,806)
(10,108)
Net cash used in financing activities
(21,699)
(27,815)
Net (decrease)/increase in cash and cash equivalents
(697,453)
1,555,564
Cash and cash equivalents at beginning of year
3,155,062
1,676,611
Effect of foreign exchange rates
48,955
(77,113)
Cash and cash equivalents at end of year
2,506,564
3,155,062

The notes on pages 15 to 30 form part of these financial statements.

HAROLD HINCHLIFFE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 15 -
1
Accounting policies
Company information

Harold Hinchliffe Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Harcliffe Mills, Denby Dale, Huddersfield, HD8 8QL.

The group consists of Harold Hinchliffe Limited and all of its subsidiaries.

1.1
Basis of preparation

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include investment properties at fair value]. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

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

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

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

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. Investments in subsidiaries are accounted for at cost less impairment.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Harold Hinchliffe Limited together with all entities controlled by the parent company (its subsidiaries).

All financial statements are made up to 30 September 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the g roup.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

HAROLD HINCHLIFFE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
1
Accounting policies
(Continued)
- 16 -
1.4
Going concern

A t the time of approving the financial statements, t he directors have a reasonable expectation that the group and parent company ha ve adequate resources to continue in operational existence for the foreseeable future. Thus t he directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover represents the value of goods sold and services provided net of value added tax.

1.6
Intangible fixed assets - goodwill

Purchased goodwill (both positive and negative) arising on business combinations in respect of acquisitions before 1 January 1998, when FRS 10 Goodwill and intangible assets was adopted, was written off to reserves in the year of acquisition. When a subsequent disposal occurs any related goodwill previously written off to reserves is written back through the profit and loss account as part of the profit or loss on disposal.

Purchased goodwill (representing the excess of the fair value of the consideration given over the fair value of the separable net assets acquired) arising on business combinations in respect of acquisitions since 1 January 1998 is capitalised. Positive goodwill is amortised to nil by equal annual instalments over its estimated useful life.

1.7
Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation. Investment properties are initially recorded at cost, which includes purchase price and any directly attributable expenditure. Investment properties are revalued to their fair value at each reporting date and any changes in fair value are recognised in profit or loss.

Depreciation is computed using the straight line method over estimated economic lives from the time the asset is put into use. Present estimated economic lives are as follows:

Freehold land and buildings
25 to 50 years
Plant and equipment
5 to 10 years
Motor vehicles
5 years

No depreciation is provided on freehold land.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

In the year of acquisition tangible fixed assets are depreciated from the beginning of the financial year. Tangible fixed assets are reviewed for impairment if events or circumstances indicate the carrying value may not be recoverable in full.

1.8
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value a t the reporting end date. Changes in fair value are recognised in profit or loss.

1.9
Fixed asset investments

In the company’s financial statements, investments in subsidiary undertakings are stated at cost less amounts written off. Dividends received are credited to the company’s profit and loss account to the extent that they represent a realised profit for the company.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

HAROLD HINCHLIFFE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
1
Accounting policies
(Continued)
- 17 -
1.10
Stocks

Stocks are stated at direct cost plus attributable overheads or net realisable value if lower.

1.11
Cash and cash equivalents

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

1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest m ethod unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future paymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

HAROLD HINCHLIFFE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
1
Accounting policies
(Continued)
- 18 -
1.14
Taxation

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

Current tax

Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset.

1.15
Employee benefits

When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

1.16
Retirement benefits

Contributions made to the group defined contribution schemes operated by the company are charged to the statement of comprehensive income as they become payable.

The company operates defined benefit plans for the benefit of its employees. A liability for the company’s obligations under the plans is recognised net of plan assets. The net change in the net defined benefit liabilities are recognised as the cost of the defined benefit plan during the period. Pension plan assets are measured at fair value and the defined benefit obligation is measured on an actuarial basis using the projected unit method. Actuarial valuations are obtained at least triennially and are updated at each balance sheet date.

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

HAROLD HINCHLIFFE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
1
Accounting policies
(Continued)
- 19 -
1.17
Leases
As lessee

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease d asset are consumed.

1.18
Government grants

Grants in respect of expenditure on tangible fixed assets are accounted for under the accruals model and treated as deferred income which is credited to the profit and loss account by instalments over the expected useful economic life of the related asset on a basis consistent with the depreciation policy. Grants of a revenue nature are accounted for under the performance model, assuming all related terms and conditions are met and recognised in the profit and loss account when receivable.

1.19
Foreign exchange

Foreign currency transactions are initially recognised by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.

Monetary assets and liabilities denominated in a foreign currency at the balance sheet date are translated using the closing rate.

2
Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

3
Turnover and other revenue
2025
2024
£
£
Turnover analysed by geographical market
Home
6,425,310
6,987,032
Export - Europe
1,814,884
2,107,053
Export - Rest of the world
1,591,397
1,940,959
9,831,591
11,035,044
2025
2024
£
£
Other revenue
Interest income
339
694
Grants received
11,700
23,011
HAROLD HINCHLIFFE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 20 -
4
Operating loss
2025
2024
£
£
Operating loss for the year is stated after charging/(crediting):
Exchange (gains)/losses
(60,791)
94,868
Government grants
(11,700)
(23,011)
Fees payable to the group's auditor for the audit of the group's financial statements
37,500
37,500
Depreciation of tangible fixed assets
192,468
203,208
Operating lease charges
(14,068)
37,681
5
Employees

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

Group
Company
2025
2024
2025
2024
Number
Number
Number
Number
3
3
-
-
97
98
-
-
3
3
-
-
2
2
2
2
Total
105
106
2
2

Their aggregate remuneration comprised:

Group
Company
2025
2024
2025
2024
£
£
£
£
Wages and salaries
3,116,053
3,191,298
1,000
1,000
Social security costs
362,036
309,371
-
-
Pension costs
210,265
163,921
-
0
-
0
3,688,354
3,664,590
1,000
1,000
6
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
438,662
211,367

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2024 - 1).

HAROLD HINCHLIFFE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
6
Directors' remuneration
(Continued)
- 21 -
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2025
2024
£
£
Remuneration for qualifying services
211,180
210,567
7
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
339
694
8
Taxation
2025
2024
£
£
Deferred tax
Origination and reversal of timing differences
23,000
10,250

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

2025
2024
£
£
Loss before taxation
(981,064)
(647,489)
Expected tax credit based on the standard rate of corporation tax in the UK of 25% (2024: 25%)
(245,266)
(161,872)
Effects of:
Expenses that are not deductible in determining taxable profit
4,180
(3,086)
Unutilised tax losses carried forward
344,470
131,588
Permanent capital allowances in excess of depreciation
(62,134)
31,870
(18,250)
11,750
Taxation charge in the financial statements
23,000
10,250
HAROLD HINCHLIFFE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 22 -
9
Dividends
2025
2024
2025
2024
Recognised as distributions to equity holders:
Per share
Per share
Total
Total
Pence
Pence
£
£
Ordinary shares
Final paid
8.86
8.86
1,189
1,189
5% cumulative preference shares
Final paid
5.00
5.00
10,703
10,703
Total dividends
Final dividends paid
11,892
11,892

The proposed final dividend for the year ended 30 September 2025 is:

2025
2024
Per share
Total
Total
Pence
£
£
Ordinary shares
8.86
1,189
1,189
Preference
5.00
10,703
10,703

The proposed final dividend is subject to approval by shareholders and has not been included as a liability in these financial statements.

10
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 October 2024
6,369,811
8,073,542
219,906
14,663,259
Additions
-
0
391,295
-
0
391,295
At 30 September 2025
6,369,811
8,464,837
219,906
15,054,554
Depreciation and impairment
At 1 October 2024
4,612,207
7,755,806
197,227
12,565,240
Depreciation charged in the year
75,695
109,213
7,560
192,468
At 30 September 2025
4,687,902
7,865,019
204,787
12,757,708
Carrying amount
At 30 September 2025
1,681,909
599,818
15,119
2,296,846
At 30 September 2024
1,757,604
317,736
22,679
2,098,019
The company had no tangible fixed assets at 30 September 2025 or 30 September 2024.
HAROLD HINCHLIFFE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 23 -
11
Investment property
Group
Company
2025
2025
£
£
Fair value
At 1 October 2024 and 30 September 2025
3,680,000
-
Net gains or losses through fair value adjustments
92,000
-
At 30 September 2025
3,772,000
-

Investment properties have been revalued to fair value individually at 30 September 2025 and 30 September 2024 by a CAAV member valuer. The historical cost of these properties is £186,935 (2024: £186,935).

12
Fixed asset investments
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
6,711
6,711
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 October 2024 and 30 September 2025
6,711
Carrying amount
At 30 September 2025
6,711
At 30 September 2024
6,711
13
Subsidiaries

Details of the company's subsidiaries at 30 September 2025 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Z Hinchliffe & Sons Limited
Hartcliffe Mills,Denby Dale, Huddersfield, HD8 8QL
Ordinary
59.60
-
John Woodhead (Dobroyd Mills) Limited
as above
Ordinary
0
59.60
John Woodhead (Dobroyd Mills) USA Inc
Ordinary
0
59.60
HAROLD HINCHLIFFE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 24 -
14
Stocks
Group
Company
2025
2024
2025
2024
£
£
£
£
Raw materials and consumables
2,984,906
3,741,616
-
-
Work in progress
177,118
375,436
-
-
Finished yarn
4,570,732
4,538,447
-
0
-
0
7,732,756
8,655,499
-
-
15
Debtors
Group
Company
2025
2024
2025
2024
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,628,138
2,904,228
-
0
-
0
Other debtors
1,495
1,505
-
0
-
0
Prepayments and accrued income
203,817
257,650
-
0
-
0
3,833,450
3,163,383
-
-
16
Creditors: amounts falling due within one year
Group
Company
2025
2024
2025
2024
£
£
£
£
Trade creditors
291,309
252,562
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
160
160
Other taxation and social security
275,535
116,530
180
180
Other creditors
768
546
-
0
-
0
Accruals and deferred income
500,033
220,891
1,000
1,000
1,067,645
590,529
1,340
1,340
17
Deferred taxation

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

Liabilities
Liabilities
2025
2024
Group
£
£
On fair value adjustments to investment property
741,431
718,431
Capital losses offset againt above
(268,728)
(268,728)
472,703
449,703
The company has no deferred tax assets or liabilities.
HAROLD HINCHLIFFE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
17
Deferred taxation
(Continued)
- 25 -
Group
Company
2025
2025
Movements in the year:
£
£
Liability at 1 October 2024
449,703
-
Charge to profit or loss
23,000
-
Liability at 30 September 2025
472,703
-

At 30 September 2025 the group had unrelieved trading losses of £7,635,000 (2024: £6,258,000).

18
Deferred income
Group
Company
2025
2024
2025
2024
£
£
£
£
Arising from Capital grants - group
35,100
46,800
-
-
19
Retirement benefit schemes

Defined contribution schemes

The company operates two defined contribution pension schemes.

The assets of the schemes are held separately from those of the company in independently administered funds.

Defined benefit schemes

At the start of the year, the company operated two defined benefit pension schemes.

The Z Hinchliffe & Sons Limited 1978 Retirement and Death Benefit Scheme was closed to new members and accrual of benefits on 16 September 2025. By this date all of the scheme’s assets had been used to secure a bulk annuity purchase annuity with Aviva. Aviva are issuing individual pension policies to all former members of the scheme, being both current pensioners and deferred members. The scheme is now in the process of being wound up.

The John Woodhead (Dobroyd Mills) Limited Pension & Life Assurance Scheme is a funded defined benefit final salary pension scheme which was set up by a Trust Deed dated 24 August 1983 and a supplemental trust deed dated 13 July 1992. It has been approved by the Inland Revenue Savings, Pensions, Share Schemes (formerly the Pension Schemes Office) under Chapter I of Part XIV of the Income & Corporation Taxes Act 1988. The employees covered by the Scheme are not contracted-out of the State Earnings Related Pension Scheme (SERPS).

Following discussions between the Trustees of the Scheme and the directors of the company, having taken appropriate advice, and having followed the necessary procedures, the Scheme was closed to further accrual from 1 June 2010.

The company has fully adopted the requirements of FRS102 The Financial Reporting Standard applicable in the UK and Republic of Ireland in respect of post-employment benefits.

The most recent actuarial valuation was carried out at 31 May 2025 The results of this have been projected to 30 September 2025 by a qualified independent actuary.

HAROLD HINCHLIFFE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
19
Retirement benefit schemes
(Continued)
- 26 -
2025
2024
Key assumptions
%
%
Discount rate
5.8
5
Expected rate of increase of pensions in payment
0.00 to 2.75
0.00 to 2.9
Expected rate of salary increases
n/a
n/a
Expected rate of inflation - RPI
3.25
3.45
Expected rate of inflation - CPI
2.85
3.05
Mortality assumptions
2025
2024

Assumed life expectations on retirement at age 65:

Years
Years
Retiring today
- Males
85.9
85.7
- Females
88.1
88.2
Retiring in 10 years
- Males
86.3
86.1
- Females
88.8
88.9

The amounts included in the balance sheet arising from obligations in respect of defined benefit plans are as follows:

2025
2024
Group
£
£
Present value of defined benefit obligations
1,446,000
5,466,000
Fair value of plan assets
(1,791,000)
(5,545,000)
Deficit in scheme
(345,000)
(79,000)
Restriction on scheme assets
345,000
131,000
Other long term benefits balance to disclose
-
(13,000)
Total liability recognised
-
39,000
The company had no post employment benefits at 30 September 2025 or 1 October 2024.

The net surplus at 30 September 2025 has not been recognised in the financial statements due to the uncertainty of the timing and value of any realisation.

HAROLD HINCHLIFFE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
19
Retirement benefit schemes
(Continued)
- 27 -
Group
2025
2024
Amounts recognised in the profit and loss account
£
£
Costs/(income):
Net interest on net defined benefit liability/(asset)
(86,000)
(280,000)
Other costs and income
13,000
400,000
Total costs/(income)
(73,000)
120,000
Group
2025
2024
Amounts recognised in other comprehensive income
£
£
Costs/(income):
Actual return on scheme assets
(266,000)
(163,000)
Less: calculated interest element
86,000
280,000
Return on scheme assets excluding interest income
(180,000)
117,000
Effect of changes in the amount of surplus that is not recoverable
214,000
(125,000)
Total costs/(income)
34,000
(8,000)
Group
2025
Movements in the present value of defined benefit obligations
Liabilities at 1 October 2024
5,466,000
Plan introductions, changes, curtailments and settlements
(4,112,894)
Benefits paid
(430,061)
Other
522,955
At 30 September 2025
1,446,000

The defined benefit obligations arise from plans which are wholly or partly funded.

Group
2025
Movements in the fair value of plan assets
£
Fair value of assets at 1 October 2024
5,545,000
Interest income
86,000
Return on plan assets (excluding amounts included in net interest)
180,000
Plan introductions, changes, curtailments and settlements
(4,112,894)
Benefits paid
(430,061)
Contributions by the employer
81,000
Other
441,955
At 30 September 2025
1,791,000
HAROLD HINCHLIFFE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
19
Retirement benefit schemes
(Continued)
- 28 -

The actual return on plan assets was £266,000 (2024 - £163,000).

Group
2025
2024
Fair value of plan assets
£
£
Equity instruments
543,000
671,000
938,000
795,000
225,000
370,000
85,000
165,000
-
3,544,000
1,791,000
5,545,000
20
Share capital
Group and company
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 5p each
13,421
13,421
671
671
2025
2024
2025
2024
Preference share capital
Number
Number
£
£
Issued and fully paid
5% cumulative preference shares of 5p each
120,805
120,805
6,040
6,040
Preference shares classified as equity
6,040
6,040
Total equity share capital
6,711
6,711

The preference shares are entitled to a fixed cumulative dividend and, in any future winding up, a right to repayment of £1 per share. Such a repayment would be in priority to any other shares. These shares only carry voting rights at general meetings on any resolutions relating to their rights and privileges.

HAROLD HINCHLIFFE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 29 -
21
Non-distributable profits reserve
Group
Company
2025
2024
2025
2024
£
£
£
£
At the beginning of the year
1,815,670
1,797,324
-
-
Non distributable profits in the year
41,165
18,346
-
-
At the end of the year
1,856,835
1,815,670
-
-

The non distributable reserve represents the parent owner’s share of the revaluation of investment properties to their fair value, adjusted for deferred tax on the excesses over indexed cost.

22
Reserves

The profit and loss account represents cumulative profits and losses net of dividends and other adjustments.

The capital reserve represents, on consolidation, the discount on acquisition of the subsidiary company.

23
Contingent liabilty

A subsidiary company has given a guarantee to HM Revenue & Customs in respect of deferred duty amounting to £350,000 (2024: £350,000).

24
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2025
2024
2025
2024
£
£
£
£
Acquisition of tangible fixed assets
100,000
-
-
-
26
Directors' transactions

Dividends totalling £12,902 (2024 - £12,092) were paid in the year in respect of shares held by the company's directors.

27
Controlling party

The group and company are controlled by J H Hinchliffe.

HAROLD HINCHLIFFE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 30 -
28
Cash (absorbed by)/generated from group operations
2025
2024
£
£
Loss after taxation
(1,004,064)
(657,739)
Adjustments for:
Taxation charged
23,000
10,250
Investment income
(339)
(694)
Fair value gain on investment properties
(92,000)
(41,000)
Depreciation and impairment of tangible fixed assets
192,468
203,208
Foreign exchange gains on cash equivalents
(48,955)
77,113
Pension scheme non-cash movement
(86,000)
47,000
Increase in provisions
13,000
-
Decrease in deferred income
(11,700)
(23,011)
Movements in working capital:
Decrease in stocks
922,743
1,444,267
(Increase)/decrease in debtors
(670,067)
842,009
Increase/(decrease) in creditors
477,116
(171,918)
Cash (absorbed by)/generated from operations
(284,798)
1,729,485
29
Analysis of changes in net funds - group
1 October 2024
Cash flows
Exchange rate movements
30 September 2025
£
£
£
£
Cash at bank and in hand
3,155,062
(697,453)
48,955
2,506,564
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