REGISTERED NUMBER:
|
|
|
|
|
|
|
|
|
|
|
|
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
|
FINANCIAL STATEMENTS |
|
FOR THE YEAR ENDED 30 JUNE 2022 |
|
FOR |
|
HARDIE GRANT UK LIMITED |
REGISTERED NUMBER:
|
|
|
|
|
|
|
|
|
|
|
|
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
|
FINANCIAL STATEMENTS |
|
FOR THE YEAR ENDED 30 JUNE 2022 |
|
FOR |
|
HARDIE GRANT UK LIMITED |
HARDIE GRANT UK LIMITED (REGISTERED NUMBER: 02904972) |
|
|
|
|
|
|
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2022 |
|
|
|
|
Page |
|
Company Information | 1 |
|
Strategic Report | 2 |
|
Report of the Directors | 4 |
|
Report of the Independent Auditors | 6 |
|
Income Statement | 10 |
|
Other Comprehensive Income | 11 |
|
Statement of Financial Position | 12 |
|
Statement of Changes in Equity | 14 |
|
Statement of Cash Flows | 15 |
|
Notes to the Statement of Cash Flows | 16 |
|
Notes to the Financial Statements | 17 |
|
HARDIE GRANT UK LIMITED |
|
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 JUNE 2022 |
|
|
|
|
|
|
|
DIRECTORS: |
|
|
|
|
|
SECRETARY: |
|
|
|
REGISTERED OFFICE: |
|
|
|
|
|
|
|
REGISTERED NUMBER: |
|
|
|
SENIOR STATUTORY
AUDITOR: |
|
|
|
AUDITORS: |
|
14 London Street |
Andover |
Hampshire |
SP10 2PA |
|
|
BANKERS: |
|
PO Box 2354 |
65 Piccadilly |
London |
W1A 2PP |
HARDIE GRANT UK LIMITED (REGISTERED NUMBER: 02904972) |
|
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2022 |
|
The directors present their strategic report for the year ended 30 June 2022. |
|
REVIEW OF BUSINESS |
In the current year Hardie Grant UK Ltd (Hardie Grant) reached its twenty eighth year of trading, continuing its position as a pre-eminent publisher of high quality, innovative illustrated books for the UK and international markets. Contributing to its success has been a focus on food & drink, craft and lifestyle, and a continued development of its strong author base. |
|
Results : |
Sales were £20.1m in the year ended June 2022 (2021: £20.6m). The sales were steady in most markets compared to last year but there was notable strong performance in both the US and co-edition markets, up 2% and 9% respectively. |
|
Gross profit was impacted by rising stock costs, including freight, and the sales mix. This resulted in a margin of 31.9%, slightly down on last year's level of 34.9%. The company was able to generate a healthy operating profit of £2,816m (2021: £3,859m). |
|
Balance Sheet : |
Net assets increased £779k year on year. Stock increased £445k, debtors increased by £777k and creditors decreased by £836k. Advances to authors increased by £241k. |
|
Cash flow : |
The closing cash balance of £2.6m was down £1.3m on last year's balance (£3.9m), reflecting the lower EBITDA. Cash generated in the year amounted to £2.9m, with £445k of this used to invest in stock with a further £842k paid in tax and £68k on fixed assets. |
|
PRINCIPAL RISKS AND UNCERTAINTIES |
New title investment : |
Due to the nature and production values of Hardie Grant's publishing, each year there is significant investment in the development of new titles. This level of investment increases the commercial risk of new titles and puts greater pressure on the need for strong sales performance. Hardie Grant mitigates this risk by preparing detailed budgets for each new title (and ensures costs stay within budget), supporting the programme through effective promotional campaigns and having a truly global sales reach. |
|
Credit risk : |
Sales to some customers are significant. The failure of any such customer to honour its debts could impact on the company's results. |
|
Inflationary Pressures : |
The risks associated with the current levels of inflation are two-fold: there is the potential knock-on effect for consumer spending and the wider economy, and additionally there is upward pressure on the Company's cost base. To mitigate these risks, we have increased RRPs and are monitoring our cost base carefully. |
|
Supply chain disruption : |
Global shipping pressures continued throughout the 2022 financial year and are likely to remain for the foreseeable future. This puts at risk the timely release of new publications and replenishment of key backlist titles. Through close and proactive management of our production schedules, we have managed to reduce the impact to the business. |
|
HARDIE GRANT UK LIMITED (REGISTERED NUMBER: 02904972) |
|
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2022 |
|
FINANCIAL INSTRUMENTS |
Liquidity risk : |
The company has a healthy positive cash balance at the year end. In addition to strong cash flow from trading activities, there is an overdraft facility of £400k to provide further cover for any short-term liquidity needs. The company has also borrowed £1.6m from NatWest for a term of 5 years, starting from September 2020, which we began repaying in September 2021. In light of the above, the directors do not consider that the company currently has a liquidity risk. |
|
Interest rate risk : |
The company has managed exposure to interest rate fluctuations by financing its operations through retained profits rather than through bank finance over the last year. The NatWest loan mentioned above will introduce an interest rate risk, however the company is projecting cash flows that can comfortably cover future interest charges. |
|
Foreign currency risk : |
The company has some debtors which are denominated principally in Euro and US dollars. The gains and losses arising from these balances are recognised in the profit and loss account when payments are received. |
|
FUTURE DEVELOPMENTS |
There is a positive outlook for the company in the coming year, with expectations for continued growth. The business will remain focused on its key strengths of excellent publishing and effective promotion and selling. |
|
ON BEHALF OF THE BOARD: |
|
|
|
|
|
|
|
|
|
HARDIE GRANT UK LIMITED (REGISTERED NUMBER: 02904972) |
|
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2022 |
|
The directors present their report with the financial statements of the company for the year ended 30 June 2022. |
|
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of book publishing. |
|
DIVIDENDS |
An interim dividend of £ |
|
The total distribution of dividends for the year ended 30 June 2022 will be £
|
|
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2021 to the date of this report. |
|
|
|
|
|
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
|
- | select suitable accounting policies 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. |
|
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
HARDIE GRANT UK LIMITED (REGISTERED NUMBER: 02904972) |
|
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2022 |
|
|
AUDITORS |
The auditors, Hysons Accountants LLP, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
|
ON BEHALF OF THE BOARD: |
|
|
|
|
|
|
|
|
|
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HARDIE GRANT UK LIMITED |
|
Opinion |
We have audited the financial statements of Hardie Grant UK Limited (the 'company') for the year ended 30 June 2022 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 2022 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 Auditors' 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
|
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
|
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
|
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HARDIE GRANT UK LIMITED |
|
|
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
|
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 identified material misstatements in the Strategic Report or the Report of the Directors. |
|
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 four, 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HARDIE GRANT UK LIMITED |
|
|
Auditors' 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 a Report of the Auditors 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: |
|
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- |
the Senior Statutory Auditor ensured that the engagement team collectively had the
appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- |
we identified the laws and regulations applicable to the company through discussions with
directors and other management and from our commercial knowledge and experience of the publishing sector; |
- |
we focused on specific laws and regulations which we considered may have a direct material
effect on the financial statements or the operations of the company, including the Companies Act 2006 and Financial Reporting Standard 102; |
- |
we assessed the extent of compliance with the laws and regulations identified above through
making enquiries of management and inspecting legal correspondence; and |
- |
identified laws and regulations were communicated within the audit team regularly and the
team remained alert to instances of non-compliance throughout the audit. |
|
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- |
making enquiries of management as to where they considered there was susceptibility to
fraud, their knowledge of actual, suspected and alleged fraud; and |
- |
considering the internal controls in place to mitigate risks of fraud and non-compliance with
laws and regulations. |
|
To address the risk of fraud through management bias and override of controls, we: |
- | performed analytical procedures to identify any unusual or unexpected relationships; |
- | tested journal entries to identify unusual transactions; |
- |
assessed whether judgements and assumptions made in determining the accounting
estimates were indicative of potential bias; and |
- | investigated the rationale behind significant or unusual transactions. |
|
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- | agreeing financial statement disclosures to underlying supporting documentation; |
- | reading the minutes of meetings of those charged with governance; |
- | enquiring of management as to actual and potential litigation and claims; and |
- |
reviewing correspondence with HMRC, relevant regulators and the company’s legal
advisors. |
|
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HARDIE GRANT UK LIMITED |
|
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
|
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
|
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
|
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 a Report of the Auditors 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
|
14 London Street |
Andover |
Hampshire |
SP10 2PA |
|
|
HARDIE GRANT UK LIMITED (REGISTERED NUMBER: 02904972) |
|
INCOME STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2022 |
|
2022 | 2021 |
Notes | £ | £ |
|
TURNOVER | 4 |
|
|
|
Cost of sales |
( |
) |
( |
) |
GROSS PROFIT |
|
|
|
Administrative expenses | ( |
) | ( |
) |
OPERATING PROFIT | 7 |
|
|
|
Interest receivable and similar
income |
|
|
2,845,717 | 3,859,475 |
|
Interest payable and similar
expenses |
8 |
( |
) |
|
PROFIT BEFORE TAXATION |
|
|
|
Tax on profit | 9 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
|
|
HARDIE GRANT UK LIMITED (REGISTERED NUMBER: 02904972) |
|
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 JUNE 2022 |
|
2022 | 2021 |
Notes | £ | £ |
|
PROFIT FOR THE YEAR |
|
|
|
|
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR |
|
|
HARDIE GRANT UK LIMITED (REGISTERED NUMBER: 02904972) |
|
STATEMENT OF FINANCIAL POSITION |
30 JUNE 2022 |
|
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
|
|
Tangible assets | 12 |
|
|
|
|
|
CURRENT ASSETS |
Stocks | 13 |
|
|
Debtors | 14 |
|
|
Cash at bank and in hand |
|
|
|
|
CREDITORS |
Amounts falling due within one year | 15 |
|
|
NET CURRENT ASSETS |
|
|
TOTAL ASSETS LESS CURRENT
LIABILITIES |
|
|
|
CREDITORS |
Amounts falling due after more than
one year |
16 |
( |
) |
( |
) |
|
PROVISIONS FOR LIABILITIES | 20 | ( |
) | ( |
) |
NET ASSETS |
|
|
HARDIE GRANT UK LIMITED (REGISTERED NUMBER: 02904972) |
|
STATEMENT OF FINANCIAL POSITION - continued |
30 JUNE 2022 |
|
2022 | 2021 |
Notes | £ | £ | £ | £ |
CAPITAL AND RESERVES |
Called up share capital | 21 |
|
|
Share premium | 22 |
|
|
Capital redemption reserve | 22 |
|
|
Retained earnings | 22 |
|
|
SHAREHOLDERS' FUNDS |
|
|
|
|
The financial statements were approved by the Board of Directors and authorised for issue on
|
|
|
|
|
|
|
|
|
|
|
HARDIE GRANT UK LIMITED (REGISTERED NUMBER: 02904972) |
|
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 JUNE 2022 |
|
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
|
Balance at 1 July 2020 |
|
|
|
|
|
|
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - |
|
- |
|
|
Balance at 30 June 2021 |
|
|
|
|
|
|
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - |
|
- |
|
|
Balance at 30 June 2022 |
|
|
|
|
|
HARDIE GRANT UK LIMITED (REGISTERED NUMBER: 02904972) |
|
STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 30 JUNE 2022 |
|
2022 | 2021 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
|
|
Interest paid | ( |
) |
|
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
|
|
|
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Interest received |
|
|
Net cash from investing activities | ( |
) | ( |
) |
|
Cash flows from financing activities |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
|
(Decrease)/increase in cash and cash equivalents | ( |
) |
|
Cash and cash equivalents at
beginning of year |
2 |
|
1,623,793 |
|
Cash and cash equivalents at end
of year |
2 |
2,620,008 |
3,902,765 |
HARDIE GRANT UK LIMITED (REGISTERED NUMBER: 02904972) |
|
NOTES TO THE STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 30 JUNE 2022 |
|
1. |
RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS |
2022 | 2021 |
£ | £ |
Profit before taxation |
|
|
Depreciation charges |
|
|
Finance costs | 29,292 | - |
Finance income | (3,385 | ) | (85 | ) |
2,904,868 | 3,903,437 |
Increase in stocks | ( |
) | ( |
) |
(Increase)/decrease in trade and other debtors | ( |
) |
|
(Decrease)/increase in trade and other creditors | ( |
) |
|
Cash generated from operations |
|
|
|
2. | CASH AND CASH EQUIVALENTS |
|
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
|
Year ended 30 June 2022 |
30.6.22 | 1.7.21 |
£ | £ |
Cash and cash equivalents | 2,620,008 | 3,902,765 |
Year ended 30 June 2021 |
30.6.21 | 1.7.20 |
£ | £ |
Cash and cash equivalents | 3,902,765 | 1,623,793 |
|
|
3. | ANALYSIS OF CHANGES IN NET FUNDS |
|
At 1.7.21 | Cash flow | At 30.6.22 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 3,902,765 | (1,282,757 | ) | 2,620,008 |
3,902,765 | ( |
) | 2,620,008 |
Debt |
Debts falling due within 1 year | (300,000 | ) | (100,000 | ) | (400,000 | ) |
Debts falling due after 1 year | (1,300,000 | ) | 400,000 | (900,000 | ) |
(1,600,000 | ) | 300,000 | (1,300,000 | ) |
Total | 2,302,765 | (982,757 | ) | 1,320,008 |
HARDIE GRANT UK LIMITED (REGISTERED NUMBER: 02904972) |
|
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2022 |
|
1. | STATUTORY INFORMATION |
|
Hardie Grant UK Limited is a
|
|
The presentation currency of the financial statements is the Pound Sterling (£). |
|
|
2. | STATEMENT OF COMPLIANCE |
|
|
|
3. | ACCOUNTING POLICIES |
|
Basis of preparing the financial statements |
|
|
The financial statements have been prepared on a going concern basis. |
|
Turnover |
Turnover comprises the fair value of the consideration received for the sale of goods net of value added tax, rebates and discounts. Turnover from the sale of books is recognised when title passes. A provision for anticipated returns is made based primarily on historical return rates in each territory. |
|
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
|
|
|
Tangible fixed assets |
|
Short leasehold | - |
|
Fixtures and fittings | - |
|
Office and computer equipment | - |
|
|
Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost includes all direct expenditure. Origination costs, which do not vary with the number of copies printed, are charged to the income statement in full on publication. |
|
Royalty advances |
Advances of royalties to authors are recognised once a contract is approved and invoiced. The royalty advance is expensed at the contracted or effective royalty rate as the related turnover is earned. All titles are assessed and provisions are made against the carrying value based on future sales projections to adjust the advance to its net realisable value. |
HARDIE GRANT UK LIMITED (REGISTERED NUMBER: 02904972) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2022 |
|
3. | ACCOUNTING POLICIES - continued |
|
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
|
Current or deferred taxation assets and liabilities are not discounted. |
|
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
|
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
|
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
|
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. |
|
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
|
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
|
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
|
The executive directors receive a contribution of 7%-10% of their basic salary to their private pension schemes. Contributions payable to private pension schemes are charged to the profit and loss in the period to which they relate. |
HARDIE GRANT UK LIMITED (REGISTERED NUMBER: 02904972) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2022 |
|
4. | TURNOVER |
|
The turnover and profit before taxation are attributable to the one principal activity of the company. |
|
An analysis of turnover by geographical market is given below: |
|
2022 | 2021 |
£ | £ |
United Kingdom |
|
|
Rest of the World | 8,772,583 | 10,247,716 |
|
|
|
5. | EMPLOYEES AND DIRECTORS |
2022 | 2021 |
£ | £ |
Wages and salaries |
|
|
Social security costs |
|
|
Other pension costs |
|
|
|
|
|
The average number of employees during the year was as follows: |
2022 | 2021 |
|
Editorial, design, production & selling | 45 | 41 |
Finance & administration | 6 | 6 |
|
|
|
6. | DIRECTORS' EMOLUMENTS |
2022 | 2021 |
£ | £ |
Directors' remuneration |
|
|
Directors' pension contributions to money purchase schemes |
|
|
|
The number of directors to whom retirement benefits were accruing was as follows: |
|
Money purchase schemes |
|
|
HARDIE GRANT UK LIMITED (REGISTERED NUMBER: 02904972) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2022 |
|
7. | OPERATING PROFIT |
|
The operating profit is stated after charging/(crediting): |
|
2022 | 2021 |
£ | £ |
Hire of plant and machinery |
|
|
Other operating leases |
|
|
Depreciation - owned assets |
|
|
Auditors' remuneration |
|
|
Foreign exchange differences | ( |
) |
|
|
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2022 | 2021 |
£ | £ |
Bank loan interest |
|
|
|
9. | TAXATION |
|
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2022 | 2021 |
£ | £ |
Current tax: |
UK corporation tax |
|
|
Foreign tax suffered | 3,957 | 4,670 |
Total current tax |
|
|
|
Deferred tax |
|
|
Tax on profit |
|
|
|
UK corporation tax has been charged at 19% (2021 - 19%). |
HARDIE GRANT UK LIMITED (REGISTERED NUMBER: 02904972) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2022 |
|
9. | TAXATION - continued |
|
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
|
2022 | 2021 |
£ | £ |
Profit before tax |
|
|
Profit multiplied by the standard rate of corporation tax in the
UK of |
|
|
|
Effects of: |
Expenses not deductible for tax purposes |
|
|
Capital allowances in excess of depreciation | ( |
) | ( |
) |
|
Deferred tax movement | 1,768 | 6,344 |
|
Total tax charge | 537,034 | 734,206 |
|
10. | DIVIDENDS |
2022 | 2021 |
£ | £ |
Ordinary shares of £1 each |
Interim |
|
|
|
11. | INTANGIBLE FIXED ASSETS |
Website |
£ |
COST |
At 1 July 2021 |
and 30 June 2022 |
|
AMORTISATION |
At 1 July 2021 |
and 30 June 2022 |
|
NET BOOK VALUE |
At 30 June 2022 |
|
At 30 June 2021 |
|
HARDIE GRANT UK LIMITED (REGISTERED NUMBER: 02904972) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2022 |
|
12. | TANGIBLE FIXED ASSETS |
Office |
Fixtures | and |
Short | and | computer |
leasehold | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 July 2021 |
|
|
|
|
Additions |
|
|
|
|
Disposals |
|
|
( |
) | ( |
) |
At 30 June 2022 |
|
|
|
|
DEPRECIATION |
At 1 July 2021 |
|
|
|
|
Charge for year |
|
|
|
|
Eliminated on disposal |
|
|
( |
) | ( |
) |
At 30 June 2022 |
|
|
|
|
NET BOOK VALUE |
At 30 June 2022 |
|
|
|
|
At 30 June 2021 |
|
|
|
|
|
13. | STOCKS |
2022 | 2021 |
£ | £ |
Work-in-progress |
|
|
Finished goods |
|
|
|
|
|
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Trade debtors |
|
|
Advances to authors | 2,309,040 | 2,067,510 |
Amounts owed by group undertakings |
|
|
Other debtors |
|
|
VAT |
|
|
Prepayments and accrued income |
|
|
|
|
HARDIE GRANT UK LIMITED (REGISTERED NUMBER: 02904972) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2022 |
|
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Bank loans and overdrafts (see note 17) |
|
|
Trade creditors |
|
|
Tax |
|
|
Social security and other taxes |
|
|
Other creditors |
|
|
Income received in advance | 180,283 | 346,091 |
Accrued expenses |
|
|
Accrued royalties |
|
|
|
|
|
16. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN
ONE YEAR |
2022 | 2021 |
£ | £ |
Bank loans (see note 17) |
|
|
|
17. | LOANS |
|
An analysis of the maturity of loans is given below: |
|
2022 | 2021 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
|
|
|
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
|
|
|
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
|
|
|
18. | LEASING AGREEMENTS |
|
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2022 | 2021 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
|
|
HARDIE GRANT UK LIMITED (REGISTERED NUMBER: 02904972) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2022 |
|
19. | SECURED DEBTS |
|
The following secured debts are included within creditors: |
|
2022 | 2021 |
£ | £ |
Bank loans |
|
|
|
The bank loans are secured by a fixed and floating charge against all the assets of the Company. |
|
20. | PROVISIONS FOR LIABILITIES |
2022 | 2021 |
£ | £ |
Deferred tax | 19,792 | 18,024 |
|
Deferred |
tax |
£ |
Balance at 1 July 2021 |
|
Accelerated capital allowances | 1,768 |
Balance at 30 June 2022 |
|
|
21. | CALLED UP SHARE CAPITAL |
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
|
Ordinary | £1 | 525,909 | 525,909 |
|
22. | RESERVES |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
|
At 1 July 2021 |
|
|
|
4,928,282 |
Profit for the year |
|
|
Dividends | ( |
) | ( |
) |
At 30 June 2022 |
|
|
|
5,707,673 |
|
23. | ULTIMATE PARENT COMPANY |
|
Hardie Grant Pty Ltd (incorporated in Australia ) is regarded by the directors as being the company's ultimate parent company. |
HARDIE GRANT UK LIMITED (REGISTERED NUMBER: 02904972) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2022 |
|
24. | OTHER FINANCIAL COMMITMENTS |
|
The company is committed to paying royalty advances to authors under publishing contracts during subsequent financial years. |
|
At 30 June 2022, this commitment amounted to £1,083,834 (2021 - £721,518). |
|
25. | RELATED PARTY DISCLOSURES |
|
Hardie Grant Pty Ltd (HG) |
During the year there were the following transactions between the company and HG: |
|
- |
Amount transferred/settled to HG by the company was £693,392 (2021 - £2,536,090 to
the company by HG). |
- | HG recharged costs to the company amounting to £243,116 (2021 - £177,751). |
|
At the year end, the amount owed to the company was £543,809 (2021- £93,533). |
|
|
Hardie Grant Publishing Pty Ltd (HGP) |
The company is related to HGP as HGP is also a wholly owned subsidiary of HG. During the year there were the following transactions between the company and HGP: |
|
- |
Amount transferred/settled by HGP to the company was £4,590,768 (2021 -
£5,001,516). |
- | Cash received by HGP on behalf of the company was £6,304,527 (2021 - £6,379,179). |
- | Cash received by the company on behalf of HGP was £571,521 (2021 - £267,139). |
- |
The company sold goods on consignment on behalf of HGP amounting to £1,122,889
(2021 - £987,746). |
- |
HGP sold goods on consignment on behalf of the company amounting to £417,658
(2021 - £462,992). |
- | HGP recharged costs to the company amounting to £19,348 (2021 - £122,779). |
|
There were no amounts owed at the end of the current or comparative year. |
|
|
Hardie Grant Children's Publishing Pty Ltd (HGCP) |
The company is related to HGCP as HGCP is also a wholly owned subsidiary of HG. During the year there were the following transactions between the company and HGCP: |
|
- | Amount transferred/settled by the company to HGCP was £48,915 (2021 - £24,428). |
- |
The company sold goods on consignment on behalf of HGCP amounting to £61,599
(2021 - £39,582). |
- | The company recharged costs to HGCP amounting to £12,684 (2021 - £15,154). |
|
There were no amounts owed at the end of the current or comparative year. |
|
|
|
26. | ULTIMATE CONTROLLING PARTY |
|
The company is ultimately controlled by the directors of Hardie Grant Pty Ltd. |