Registration number:
Headstock Distribution Ltd
for the Year Ended 30 June 2026
Headstock Distribution Ltd
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account and Statement of Retained Earnings |
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Balance Sheet |
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Statement of Changes in Equity |
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Statement of Cash Flows |
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Notes to the Financial Statements |
Headstock Distribution Ltd
Company Information
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Directors |
Mr Keith George Bradshaw Mr James Henry Waldron Mr David George Bradshaw Mr Timothy Charles Bradshaw Mrs Emma Laney Smith Mr Scott Richard Banks McKenzie Mr Jonathan James Plant Mr James Daniel Laney Mr David Andrew Black |
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Company secretary |
Mr Jonathan James Plant |
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Registered office |
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Auditors |
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Headstock Distribution Ltd
Strategic Report for the Year Ended 30 June 2026
The directors present their strategic report for the year ended 30 June 2026.
Principal activity
The principal activity of the company is the design, manufacture and distribution of sound reinforcement equipment and musical instruments.
Fair review of the business
Sales of the company for the year in question have increased by 13%. This is mainly due to the market conditions globally improving, successful launch of new product and diversification of product within the domestic market.
The UK sales of the company increased by 19% during the year, whilst the export business remained consistent with the previous financial year. The company continued to maintain good cost control policies during the year and as a result of this, the gross profit percentage rose by 1% during the year.
Overhead costs rose by 14% largely as a result of computing costs, labour and travel expenditure increasing further during this year. There was also some inflationary pressure on property costs. The company is pleased to report pre tax profits of £1,039,630 for the year.
The directors consider that there are significant opportunities for the company to continue to develop in its chosen markets and will seek to grow and develop the business during the next financial year and look forward to a period of continued growth and achievement of current margins in the foreseeable future.
Headstock Distribution Ltd
Strategic Report for the Year Ended 30 June 2026 (continued)
The company's key financial and other performance indicators during the year were as follows:
|
Unit |
2026 |
2025 |
|
|
Turnover |
£ |
18,824,399 |
16,670,807 |
|
Turnover per employee |
£ |
348,600 |
333,416 |
|
Gross Profit |
£ |
5,588,652 |
4,804,498 |
|
Gross Profit % |
% |
30 |
29 |
|
EBITDA (before exceptional items) |
£ |
1,209,587 |
928,047 |
Principal risks and uncertainties
The management continually monitors the key risks facing the business as well as assessing the controls used for managing these risks.
The markets the Company operate in are global and expose the Company to currency fluctuations, principally between the US Dollar, Euro and Pound Sterling. The strengthening of the US Dollar throughout the year continues to place pressure on margins.
This area of risk is managed through appropriate use of exchange rate hedging strategies, as well as the natural hedge that the Company employs due to the nature of its global operations, by generating sales revenue in Dollars and Euros which are utilised to transact purchases for sales in the domestic market.
The primary production base of the Company is in the People's Republic of China by way of contracted marketing, and as such the Company is exposed to the internal machinations of costs in that market in Chinese Yuan that eventually reflect in factory prices in Dollars. The Company manages this by purchasing and cost engineering strategies designed to give stability in pricing to their customers, and by constantly seeking out new sources of supply globally.
Approved by the
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......................................... |
Headstock Distribution Ltd
Directors' Report for the Year Ended 30 June 2026
The directors present their report and the financial statements for the year ended 30 June 2026.
Directors of the company
The directors who held office during the year were as follows:
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Reappointment of auditors
The auditors Walker Hubble are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Financial instruments
Objectives and policies
The companies activities expose it to a number of financial risks including price risk, credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the companies policies approved by the board of directors, which provide written principles on the use of financial derivatives to manage these risks. The company does not use derivative financial instruments for speculative purposes.
Headstock Distribution Ltd
Directors' Report for the Year Ended 30 June 2026 (continued)
Price risk, credit risk, liquidity risk and cash flow risk
Price risk:
The company is exposed to commodity price risk. The company monitors the exchange rate of the markets it operates within and updates the price of their goods to accommodate this risk.
Credit risk:
The company's principal assets are bank balances and cash, trade and other receivables.
The company's credit risk is primarily attributed to trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of cash flows.
The company has no significant concentration of credit risk, with exposure spread over a large number of customers.
Liquidity risk:
The company has funded and intends to continue funding its ongoing operations and future developments through cash generated from operating activities and the funds within their bank accounts.
Cash flow risk:
The company trades in various countries around the world and is exposed to various foreign currencies. These are managed in line with company policies.
Approved by the
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......................................... |
Headstock Distribution Ltd
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
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• |
select suitable accounting policies and apply them consistently; |
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• |
make judgements and accounting estimates that are reasonable and prudent; |
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• |
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Headstock Distribution Ltd
Independent Auditor's Report to the Members of Headstock Distribution Ltd
Opinion
We have audited the financial statements of Headstock Distribution Ltd (the 'company') for the year ended 30 June 2026, which comprise the Profit and Loss Account and Statement of Retained Earnings, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 30 June 2026 and of its profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Headstock Distribution Ltd
Independent Auditor's Report to the Members of Headstock Distribution Ltd (continued)
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 6], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor Responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We identified and assessed the risks of material misstatement in respect of irregularities, including fraud and non compliance with laws and regulations. Our procedures included enquiry of management and performing analytical review procedures to identify any unusual relationships that may indicate a material misstatement. We also tested the appropriateness of journals to address the risk of fraud through management override of controls. We performed appropriate testing in respect of the risk of fraud in revenue recognition through a review of margins, sales cut off procedures, and by performing existence and valuation testing on trade debtors.
Relevant laws and regulations, together with potential fraud risks, were communicated to the audit engagement team at the planning stage to ensure they remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Headstock Distribution Ltd
Independent Auditor's Report to the Members of Headstock Distribution Ltd (continued)
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
......................................
For and on behalf of
Dudley
West Midlands
DY1 1JJ
Headstock Distribution Ltd
Profit and Loss Account and Statement of Retained Earnings
for the Year Ended 30 June 2026
|
Note |
2026 |
2025 |
|
|
Turnover |
|
|
|
|
Cost of sales |
( |
( |
|
|
Gross profit |
|
|
|
|
Distribution costs |
( |
( |
|
|
Administrative expenses |
( |
( |
|
|
Other operating income |
|
- |
|
|
Operating profit |
|
|
|
|
Other interest receivable and similar income |
|
|
|
|
63,103 |
69,270 |
||
|
Profit before tax |
|
|
|
|
Taxation |
( |
( |
|
|
Profit for the financial year |
|
|
|
|
Retained earnings brought forward |
10,086,819 |
9,770,947 |
|
|
Dividends paid |
( |
( |
|
|
Retained earnings carried forward |
10,552,741 |
10,086,819 |
Headstock Distribution Ltd
(Registration number: 01486774)
Balance Sheet as at 30 June 2026
|
Note |
2026 |
2025 |
|
|
Fixed assets |
|||
|
Intangible assets |
|
|
|
|
Tangible assets |
|
|
|
|
|
|
||
|
Current assets |
|||
|
Stocks |
|
|
|
|
Debtors |
|
|
|
|
Cash at bank and in hand |
|
|
|
|
|
|
||
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current assets |
|
|
|
|
Total assets less current liabilities |
|
|
|
|
Provisions for liabilities |
( |
( |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
770 |
770 |
|
|
Capital redemption reserve |
330 |
330 |
|
|
Retained earnings |
10,552,741 |
10,086,819 |
|
|
Shareholders' funds |
10,553,841 |
10,087,919 |
Approved and authorised by the
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Headstock Distribution Ltd
Statement of Changes in Equity for the Year Ended 30 June 2026
|
Share capital |
Capital redemption reserve |
Retained earnings |
Total |
|
|
At 1 July 2025 |
|
|
|
|
|
Profit for the year |
- |
- |
|
|
|
Dividends |
- |
- |
( |
( |
|
At 30 June 2026 |
|
|
|
|
|
Share capital |
Capital redemption reserve |
Retained earnings |
Total |
|
|
At 1 July 2024 |
|
|
|
|
|
Profit for the year |
- |
- |
|
|
|
Dividends |
- |
- |
( |
( |
|
At 30 June 2025 |
770 |
330 |
10,086,819 |
10,087,919 |
Headstock Distribution Ltd
Statement of Cash Flows for the Year Ended 30 June 2026
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Note |
2026 |
2025 |
|
|
Cash flows from operating activities |
|||
|
Profit for the year |
|
|
|
|
Adjustments to cash flows from non-cash items |
|||
|
Depreciation and amortisation |
|
|
|
|
Finance income |
( |
( |
|
|
Income tax expense |
|
|
|
|
|
|
||
|
Working capital adjustments |
|||
|
Decrease/(increase) in stocks |
|
( |
|
|
Decrease/(increase) in trade debtors |
|
( |
|
|
Increase in trade creditors |
|
|
|
|
Cash generated from operations |
|
( |
|
|
Income taxes paid |
( |
( |
|
|
Net cash flow from operating activities |
|
( |
|
|
Cash flows from investing activities |
|||
|
Interest received |
|
|
|
|
Acquisitions of tangible assets |
( |
( |
|
|
Proceeds from sale of tangible assets |
- |
|
|
|
Acquisition of intangible assets |
( |
( |
|
|
Net cash flows from investing activities |
( |
( |
|
|
Cash flows from financing activities |
|||
|
Dividends paid |
( |
( |
|
|
Net increase/(decrease) in cash and cash equivalents |
|
( |
|
|
Cash and cash equivalents at 1 July |
|
|
|
|
Cash and cash equivalents at 30 June |
2,241,194 |
756,183 |
|
Headstock Distribution Ltd
Notes to the Financial Statements for the Year Ended 30 June 2026
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General information |
The company is a private company limited by share capital, incorporated in England.
The address of its registered office is:
These financial statements were authorised for issue by the
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Foreign currency transactions and balances
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Headstock Distribution Ltd
Notes to the Financial Statements for the Year Ended 30 June 2026 (continued)
|
2 |
Accounting policies (continued) |
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Land and buildings |
Over 50 years |
|
Plant and machinery |
Over 4 to 10 years |
|
Fixtures, fittings and equipment |
Over 4 to 10 years |
|
Motor vehicles |
Over 4 years |
Intangible assets
Separately acquired trademarks and licences are shown at historical cost.
Trademarks, licences (including software) and customer-related intangible assets acquired in a business combination are recognised at fair value at the acquisition date.
Trademarks, licences and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
|
Asset class |
Amortisation method and rate |
|
Patents |
Write off the cost in equal annual investments over their estimated useful life of 10 years. |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Headstock Distribution Ltd
Notes to the Financial Statements for the Year Ended 30 June 2026 (continued)
|
2 |
Accounting policies (continued) |
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the weighted average method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Headstock Distribution Ltd
Notes to the Financial Statements for the Year Ended 30 June 2026 (continued)
|
Turnover |
The analysis of the company's turnover for the year from continuing operations is as follows:
|
2026 |
2025 |
|
|
Sale of goods |
|
|
|
Royalties received |
|
|
|
|
|
The analysis of the company's turnover for the year by market is as follows:
|
2026 |
2025 |
|
|
UK |
|
|
|
Rest of world |
|
|
|
|
|
|
Operating profit |
Arrived at after charging/(crediting)
|
2026 |
2025 |
|
|
Depreciation expense |
|
|
|
Amortisation expense |
|
|
|
Foreign exchange losses |
|
|
|
Operating lease expense - motor vehicles |
|
|
|
Other interest receivable and similar income |
|
2026 |
2025 |
|
|
Interest income on bank deposits |
|
|
|
Other finance income |
- |
|
|
|
|
Headstock Distribution Ltd
Notes to the Financial Statements for the Year Ended 30 June 2026 (continued)
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2026 |
2025 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
|
2026 |
2025 |
|
|
Production |
|
|
|
Administration and support |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2026 |
2025 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
667,192 |
507,083 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
|
2026 |
2025 |
|
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
|
2026 |
2025 |
|
|
Remuneration |
|
|
|
Company contributions to money purchase pension schemes |
|
|
Headstock Distribution Ltd
Notes to the Financial Statements for the Year Ended 30 June 2026 (continued)
|
Auditors' remuneration |
|
2026 |
2025 |
|
|
Audit of the financial statements |
|
|
|
Taxation |
Tax charged/(credited) in the profit and loss account
|
2026 |
2025 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
|
|
Arising from previously unrecognised tax charge in relation to prior periods |
6,750 |
- |
|
Total deferred taxation |
|
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2025 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2026 |
2025 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Tax increase from effect of capital allowances and depreciation |
|
- |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
- |
|
|
Tax decrease from effect of adjustment in research and development tax credit |
- |
( |
|
Total tax charge |
|
|
Headstock Distribution Ltd
Notes to the Financial Statements for the Year Ended 30 June 2026 (continued)
|
9 |
Taxation (continued) |
The company has made a research and development tax claim during this financial year, the claim this year has been made under the merged scheme. As a result of this claim the gross research and development expenditure credit is treated as taxable income for the company, this amount being £64,438 for the year. As a result, this amount will be added back on the tax computation of the company, increasing the amount of taxable profits and the corporation tax liability of the company. Then the research and development expenditure credit of £64,438 is deducted from the revised corporation tax liability. The net credit claim for the company for this financial year is £48,328.
This treatment is different to the previous year's treatments of research and development tax claims, which were claimed under the small and medium enterprises research and development tax credit scheme. Under this scheme the research and development claims are shown as a non-taxable benefit. This treatment will be shown as a corporation tax deduction in the taxation note.
|
Intangible assets |
|
Trademarks, patents and licenses |
Total |
|
|
Cost or valuation |
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|
At 1 July 2025 |
|
|
|
Additions acquired separately |
|
|
|
At 30 June 2026 |
|
|
|
Amortisation |
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|
At 1 July 2025 |
|
|
|
Amortisation charge |
|
|
|
At 30 June 2026 |
|
|
|
Carrying amount |
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|
At 30 June 2026 |
|
|
|
At 30 June 2025 |
|
|
The aggregate amount of research and development expenditure recognised as an expense during the period is £
Headstock Distribution Ltd
Notes to the Financial Statements for the Year Ended 30 June 2026 (continued)
|
Tangible assets |
|
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Other property, plant and equipment |
Total |
|
|
Cost or valuation |
|||||
|
At 1 July 2025 |
|
|
|
|
|
|
Additions |
- |
|
- |
|
|
|
Disposals |
- |
- |
( |
- |
( |
|
At 30 June 2026 |
|
|
|
|
|
|
Depreciation |
|||||
|
At 1 July 2025 |
|
|
|
|
|
|
Charge for the year |
|
|
|
|
|
|
Eliminated on disposal |
- |
- |
( |
- |
( |
|
At 30 June 2026 |
|
|
|
|
|
|
Carrying amount |
|||||
|
At 30 June 2026 |
|
|
|
|
|
|
At 30 June 2025 |
|
|
|
|
|
Included within the net book value of land and buildings above is £1,662,503 (2025 - £1,689,503) in respect of freehold land and buildings.
Headstock Distribution Ltd
Notes to the Financial Statements for the Year Ended 30 June 2026 (continued)
|
Stocks |
|
2026 |
2025 |
|
|
Raw materials and consumables |
|
|
|
Finished goods and goods for resale |
|
|
|
|
|
|
Debtors |
|
Current |
2026 |
2025 |
|
Trade debtors |
|
|
|
Other debtors |
- |
|
|
Prepayments |
|
|
|
|
|
|
Cash and cash equivalents |
|
2026 |
2025 |
|
|
Cash on hand |
|
|
|
Cash at bank |
|
|
|
Short-term deposits |
|
|
|
|
|
|
Creditors |
|
Note |
2026 |
2025 |
|
|
Due within one year |
|||
|
Trade creditors |
|
|
|
|
Social security and other taxes |
|
|
|
|
Outstanding defined contribution pension costs |
|
|
|
|
Other payables |
|
|
|
|
Accruals |
|
|
|
|
Income tax liability |
193,331 |
81,973 |
|
|
|
|
Headstock Distribution Ltd
Notes to the Financial Statements for the Year Ended 30 June 2026 (continued)
|
Provisions for assets/liabilities |
|
Deferred tax |
Total |
|
|
At 1 July 2025 |
|
|
|
Increase (decrease) in existing provisions |
|
|
|
At 30 June 2026 |
|
|
|
|
||
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
|
Share capital |
Allotted, called up and fully paid shares
|
2026 |
2025 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
770 |
|
770 |
Headstock Distribution Ltd
Notes to the Financial Statements for the Year Ended 30 June 2026 (continued)
|
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
|
2026 |
2025 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
|
Dividends |
|
2026 |
2025 |
|||
|
£ |
£ |
|||
|
Interim dividend of £ |
300,300 |
300,300 |
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