Company Registration No. 01557744 (England and Wales)
HIBISCUS PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2019
HIBISCUS PLC
COMPANY INFORMATION
Directors
J.C. Killerby
B.S. Killerby
Secretary
M Bolton
Company number
01557744
Registered office
Unit 6-7
Hudswell Road
Leeds
LS10 1AG
Auditor
Henton & Co LLP
Northgate
118 North Street
Leeds
West Yorkshire
LS2 7PN
Business address
Unit 6-7
Hudswell Road
Leeds
LS10 1AG
HIBISCUS PLC
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 5
Statement of comprehensive income
6
Balance sheet
7
Statement of changes in equity
8
Notes to the financial statements
9 - 18
HIBISCUS PLC
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2019
- 1 -
The directors present the strategic report for the year ended 31 October 2019.
Fair review of the business
It has been a positive year for the company with development both in terms of market position and internal systems. The company has taken time to train and develop staff in key positions to better improve both the customer service and operational performance.
Principal risks and uncertainties
It has been a difficult year to forecast due to significant uncertainty due to Brexit. The unprecedented disruption with the UK leaving the EU has meant that seasonal trends have been largely overridden. The macroeconomic influences have been quite considerable.
There have been a large number of positives, sales have grown and the annual turnover was the best in the company’s history, despite the massive uncertainty caused by Brexit.
Costs most notably related to carriage and raw materials have increased due to changes in the price of oil. The company has chosen not to pass this cost increase to our customers in this financial year. Alongside this, we have undertaken a substantial exercise in reducing direct costs; negotiating with suppliers and infrastructure providers; seeking better commercial terms and lean operational efficiencies with input from the whole management team.
This growth and improvement of processes and development of staff has placed the company in an excellent position to grow with organic capacity improvements.
Development and performance
With insight from financial comparatives in the SAP system we have been able to focus on continually improving our production efficiency. Streamlining both production and business processes.
We have vastly upgraded our IT infrastructure to allow better customer service and more flexible working for employees as well as better facilities for support in multiple countries and languages.
Key performance indicators
The directors are of the opinion that analysis using KPIs is not necessary for an understanding of the development, performance or position of the business.
J.C. Killerby
Managing Director
3 April 2020
HIBISCUS PLC
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2019
- 2 -
The directors present their annual report and financial statements for the year ended 31 October 2019.
Principal activities
The principal activity of the company continued to be that of the supply of a range of products and services directly related to the international labelling, transporting and documentation of hazardous substances.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
J.C. Killerby
B.S. Killerby
D. Killerby
(Deceased 2 October 2019)
Results and dividends
The results for the year are set out on page 6.
Ordinary dividends were paid amounting to
£216,000.
The directors do not recommend payment of a further dividend.
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 company’s auditor 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 company’s auditor is aware of that information.
On behalf of the board
J.C. Killerby
Managing Director
3 April 2020
HIBISCUS PLC
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2019
- 3 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
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.
HIBISCUS PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF HIBISCUS PLC
- 4 -
Opinion
We have audited the financial statements of Hibiscus Plc (the 'company') for the year ended 31 October 2019 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 FRS 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 31 October 2019 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
Auditor's
responsibilities for the audit of the financial statements
section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue
.
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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors' r
eport for the financial 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.
HIBISCUS PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF HIBISCUS PLC
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
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 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 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'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.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s report.
This report is made solely to the company's member 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 member 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 member for our audit work, for this report, or for the opinions we have formed.
Chris Howitt (Senior Statutory Auditor)
for and on behalf of Henton & Co LLP
3 April 2020
Chartered Accountants
Statutory Auditor
Northgate
118 North Street
Leeds
West Yorkshire
LS2 7PN
HIBISCUS PLC
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2019
- 6 -
2019
2018
Notes
£
£
Turnover
3
3,914,176
3,775,089
Cost of sales
(2,583,179)
(2,364,878)
Gross profit
1,330,997
1,410,211
Distribution costs
(24,551)
(18,134)
Administrative expenses
(874,633)
(797,138)
Operating profit
4
431,813
594,939
Interest receivable and similar income
7
7
2
Interest payable and similar expenses
8
(31,676)
(30,567)
Profit before taxation
400,144
564,374
Tax on profit
9
(68,121)
(42,542)
Profit for the financial year
332,023
521,832
The Profit And Loss Account has been prepared on the basis that all operations are continuing operations.
HIBISCUS PLC
BALANCE SHEET
AS AT
31 OCTOBER 2019
31 October 2019
- 7 -
2019
2018
Notes
£
£
£
£
Current assets
Stocks
11
385,486
435,243
Debtors
12
1,304,062
1,383,009
Cash at bank and in hand
10,909
18,018
1,700,457
1,836,270
Creditors: amounts falling due within one year
13
(1,286,459)
(1,307,800)
Net current assets
413,998
528,470
Creditors: amounts falling due after more than one year
14
(242,332)
(472,827)
Net assets
171,666
55,643
Capital and reserves
Called up share capital
18
50,000
50,000
Profit and loss reserves
121,666
5,643
Total equity
171,666
55,643
The financial statements were approved by the board of directors and authorised for issue on 3 April 2020 and are signed on its behalf by:
J.C. Killerby
Managing Director
Company Registration No. 01557744
HIBISCUS PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2019
- 8 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 November 2017
50,000
(110,189)
(60,189)
Year ended 31 October 2018:
Profit and total comprehensive income for the year
-
521,832
521,832
Dividends
10
-
(406,000)
(406,000)
Balance at 31 October 2018
50,000
5,643
55,643
Year ended 31 October 2019:
Profit and total comprehensive income for the year
-
332,023
332,023
Dividends
10
-
(216,000)
(216,000)
Balance at 31 October 2019
50,000
121,666
171,666
HIBISCUS PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2019
- 9 -
1
Accounting policies
Company information
Hibiscus Plc is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Unit 6-7, Hudswell Road, Leeds, LS10 1AG.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This 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
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
The financial statements of the company are consolidated in the financial statements of
Hibiscus Holdings Plc
. These consolidated financial statements are available from
Companies House.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has 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.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for
goods
provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated
.
1.5
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
HIBISCUS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
1
Accounting policies
(Continued)
- 10 -
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.6
Cash at bank and in hand
Cash at bank and in hand
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.
1.7
Financial instruments
The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
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
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
HIBISCUS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
1
Accounting policies
(Continued)
- 11 -
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
s
ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.8
Equity instruments
Equity instruments issued by the company 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 company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
HIBISCUS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
1
Accounting policies
(Continued)
- 12 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
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
s
asset are consumed.
HIBISCUS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
- 13 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key areas of judgement and estimation relate to provisions against stocks and doubtful debt. The directors are satisfied there is no significant risk of material misstatement arising.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2019
2018
£
£
Turnover analysed by class of business
Supply of labelling products
3,914,176
3,775,089
2019
2018
£
£
Other significant revenue
Interest income
7
2
2019
2018
£
£
Turnover analysed by geographical market
Within the UK
3,430,540
3,346,620
Outside the UK
483,636
428,469
3,914,176
3,775,089
4
Operating profit
2019
2018
Operating profit for the year is stated after charging:
£
£
Research and development costs
32,822
21,976
Cost of stocks recognised as an expense
1,975,572
1,779,513
Operating lease charges
24,266
27,073
HIBISCUS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
- 14 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2019
2018
Number
Number
Office and management
9
9
Production and sales
24
24
33
33
Their aggregate remuneration comprised:
2019
2018
£
£
Wages and salaries
794,196
804,477
Social security costs
78,732
71,428
Pension costs
35,029
24,657
907,957
900,562
6
Directors' remuneration
2019
2018
£
£
Remuneration for qualifying services
43,777
49,439
Company pension contributions to defined contribution schemes
6,000
6,000
49,777
55,439
7
Interest receivable and similar income
2019
2018
£
£
Interest income
Interest on bank deposits
7
2
HIBISCUS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
- 15 -
8
Interest payable and similar expenses
2019
2018
£
£
Interest on bank overdrafts and loans
7,704
8,953
Interest on finance leases and hire purchase contracts
8,112
7,282
Interest on invoice finance arrangements
15,860
14,229
Other interest
-
103
31,676
30,567
9
Taxation
2019
2018
£
£
Current tax
UK corporation tax on profits for the current period
68,121
84,311
Deferred tax
Origination and reversal of timing differences
-
(41,769)
Total tax charge
68,121
42,542
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2019
2018
£
£
Profit before taxation
400,144
564,374
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2018: 19.00%)
76,027
107,231
Tax effect of expenses that are not deductible in determining taxable profit
201
353
Group relief
-
(18,162)
Research and development tax credit
(8,107)
(5,427)
Deferred tax adjustments
-
(41,453)
Taxation charge for the year
68,121
42,542
10
Dividends
2019
2018
£
£
Interim paid
216,000
406,000
HIBISCUS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
- 16 -
11
Stocks
2019
2018
£
£
Raw materials and consumables
111,642
136,984
Work in progress
5,986
11,252
Finished goods and goods for resale
267,858
287,007
385,486
435,243
12
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
699,929
848,141
Amounts owed by group undertakings
595,232
519,308
Prepayments and accrued income
8,901
15,560
1,304,062
1,383,009
13
Creditors: amounts falling due within one year
2019
2018
Notes
£
£
Bank loans and overdrafts
15
598,102
700,027
Obligations under finance leases
16
60,812
57,159
Trade creditors
319,754
293,413
Corporation tax
204,660
84,414
Other taxation and social security
74,785
89,276
Other creditors
-
30,877
Accruals and deferred income
28,346
52,634
1,286,459
1,307,800
14
Creditors: amounts falling due after more than one year
2019
2018
Notes
£
£
Bank loans and overdrafts
15
106,378
166,636
Obligations under finance leases
16
135,954
183,985
Other creditors
-
122,206
242,332
472,827
HIBISCUS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
- 17 -
15
Loans and overdrafts
2019
2018
£
£
Bank loans
165,638
224,134
Bank overdrafts
538,842
642,529
704,480
866,663
Payable within one year
598,102
700,027
Payable after one year
106,378
166,636
The bank loans and overdrafts are secured by fixed and floating charges over assets of the company.
16
Finance lease obligations
2019
2018
Future minimum lease payments due under finance leases:
£
£
Within one year
60,812
57,159
In two to five years
135,954
183,985
196,766
241,144
Finance lease payments represent rentals payable on plant and machinery held in the parent company Hibiscus Holdings Plc. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
17
Retirement benefit schemes
2019
2018
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
35,029
24,657
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
18
Share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
50,000 Ordinary shares of £1 each
50,000
50,000
HIBISCUS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
- 18 -
19
Financial commitments, guarantees and contingent liabilities
Within 2018, the Company entered into a contract to use an accounting software for 3 years, paying monthly. The full commitments are as follows:
2019
2018
£
£
Within one year
21,694
21,694
Between two and five years
5,424
27,118
27,118
48,812
20
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2019
2018
£
£
Within one year
3,454
18,930
Between two and five years
-
3,454
3,454
22,384
21
Ultimate controlling party
The company's parent is Hibiscus Holdings Plc. The smallest group of undertakings for which group accounts are drawn up and of which the company is a member is Hibiscus Holdings Plc, registered office Hudswell Road, Leeds, LS10 1AG.
2019-10-31
2018-11-01
false
CCH Software
CCH Accounts Production 2020.100
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Mrs D Killerby
Mr J Killerby
M Bolton
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