|
|
REGISTERED NUMBER:
|
|
|
|
|
|
|
|
|
|
|
|
Strategic Report, |
|
Report of the Directors and |
|
Audited Financial Statements |
|
for the Year Ended 31 July 2019 |
|
for |
|
HATS GROUP LTD |
|
|
REGISTERED NUMBER:
|
|
|
|
|
|
|
|
|
|
|
|
Strategic Report, |
|
Report of the Directors and |
|
Audited Financial Statements |
|
for the Year Ended 31 July 2019 |
|
for |
|
HATS GROUP LTD |
HATS GROUP LTD (REGISTERED NUMBER: 03135655) |
|
|
|
|
|
|
Contents of the Financial Statements |
FOR THE YEAR ENDED 31 JULY 2019 |
|
|
|
|
Page |
|
Company Information | 1 |
|
Strategic Report | 2 |
|
Report of the Directors | 4 |
|
Report of the Independent Auditors | 6 |
|
Income Statement | 9 |
|
Other Comprehensive Income | 10 |
|
Balance Sheet | 11 |
|
Statement of Changes in Equity | 12 |
|
Cash Flow Statement | 13 |
|
Notes to the Cash Flow Statement | 14 |
|
Notes to the Financial Statements | 15 |
|
HATS GROUP LTD |
|
Company Information |
FOR THE YEAR ENDED 31 JULY 2019 |
|
|
|
|
|
|
|
DIRECTORS: |
|
|
|
|
|
|
|
REGISTERED OFFICE: |
|
|
|
|
|
|
|
|
|
|
|
REGISTERED NUMBER: |
|
|
|
|
|
|
AUDITORS: |
|
Chartered Accountants & Registered Auditors |
Office 36 Vienna House |
Birmingham International Park |
Solihull |
B37 7GN |
HATS GROUP LTD (REGISTERED NUMBER: 03135655) |
|
Strategic Report |
FOR THE YEAR ENDED 31 JULY 2019 |
|
The directors present their strategic report for the year ended 31 July 2019. |
|
REVIEW OF BUSINESS |
The results for the year and financial position of the company are shown in the annexed financial |
statements. |
|
PRINCIPAL RISKS AND UNCERTAINTIES |
The company operates in an uncertain environment that may result in increased risk, cost |
pressure and time pressures. Due to the nature of the industry additional pressures from |
customers can arise without time to plan for them. The following are the key risks that face the |
company; |
|
-Financing risks |
The financial risk to the company going forward is dependent on the current market. As the |
company deals in transportation logistics over short and medium length contracts this mitigates |
immediate financing risk, however not long term risks. The company's finances are supported by |
its ability to gain a competitive advantage over its competitors. |
|
-Market and other regulatory requirements |
Existing and possible future legislation, regulations and actions could cause additional operational |
expense, capital expenditure, reduction in scope and further product development change, the |
extent of which cannot be predicted. The company takes responsibility for ensuring that all |
relevant legislation is met. |
|
-Operation risks |
These include equipment failure, damage or substandard service, and include changes in |
customer operations and targets. The risk of oil price changes affecting the cost of sales is an |
uncontrollable risk for the company. The company seeks to minimise these risks by investing in |
environmentally advanced equipment, improvements in training and customer engagement whilst |
closely monitoring the legislation developments within its market. |
|
EMPLOYEES |
The company has continued to give full and fair consideration to applications made by persons of |
all diversities, having regard to their respective aptitudes and abilities, and to ensure that they |
benefit from training and career development programmes in common with all employees. The |
company has continued its policy of employee involvement by making information available to |
employees through the medium of frequent staff meetings, together with personal appraisals and |
feedback sessions. |
|
PAYMENT OF CREDITORS |
The company does not follow any published code or statement on payment practice. However, it is |
the company's policy to settle all amounts due to its creditors on a timely basis, taking into |
account the credit terms by each supplier. |
|
LIKELY FUTURE DEVELOPMENTS |
The prospects of HATS Group in 2019/20 genuinely excite us. |
|
During the year we continued to make efficiencies, especially in respect of our capital assets |
(vehicles). The full year impact of these savings will be measurable. |
|
We are also on course to continue to grow our client base, both organically and through new |
contracts in the field of patient transport services and passengers with special educational needs |
and disabilities (SEND). |
|
HATS GROUP LTD (REGISTERED NUMBER: 03135655) |
|
Strategic Report |
FOR THE YEAR ENDED 31 JULY 2019 |
|
KEY PERFORMANCE INDICATORS |
At HATS Group we recognise that we can only continue to deliver excellent standards of service to |
our clients by having a successful, sustainable and dynamic business. |
|
To enable this, we use two Key Performance Indicators; Revenue and Net Profit. Both of these KPIs |
have been achieved. |
|
We have seen dynamic growth in 2018/19, with turnover increasing from £26,793,076 in 2017/18 |
to £35,235,448 a growth of 28%. |
|
This growth has been driven by the full-year impact of new patient transport service contracts |
(PTS), as well as an increase in SEND transport contracts for London Boroughs and new clients in |
the Home Counties. |
|
2018/19 reads a very good year for HATS Group, with a gross profit increase of £740,929 to |
£3,170,410. This strong growth marks a 30.50% increase in gross profit compared from the |
previous year. |
|
Additionally, net profit increased to £1,232,850. This marks a 45.66% increase in net profit. |
|
Our ability to increase net profit at an accelerated rate whilst holding a gross profit at a steady |
and competitive 9% is due to our increasing capacity to achieve continued operational |
effectiveness. These benefits include increased synergies across our two principal departments |
(patient transport and home to school) as well as economies of scale benefits resulting from |
increased growth. |
|
We are exceptionally proud of our commercial performance, especially when combined with our |
excellent front line services levels and regulatory compliance. |
|
ON BEHALF OF THE BOARD: |
|
|
|
|
|
|
|
|
|
HATS GROUP LTD (REGISTERED NUMBER: 03135655) |
|
Report of the Directors |
FOR THE YEAR ENDED 31 JULY 2019 |
|
The directors present their report with the financial statements of the company for the year ended 31 July 2019. |
|
DIVIDENDS |
No dividends will be distributed for the year ended 31 July 2019. |
|
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
|
DIRECTORS |
report. |
|
Other changes in directors holding office are as follows: |
|
|
|
|
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the financial statements in accordance with applicable |
law and regulations. |
|
Company law requires the directors to prepare the financial statements for each financial year. |
Under that law the directors have elected to prepare the financial statements in accordance with |
Financial Reporting Standards 102 as adopted for use in the UK and Republic of Ireland. The |
financial statements are required by law to 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 year. In preparing these financial |
statements, the directors are required to |
|
- select suitable accounting policies and then apply them consistently; |
- make judgements and 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 which disclose with |
reasonable accuracy at any time the financial position of the company and to enable them to |
ensure that the financial statements comply with the Companies Act 2006. They are responsible |
for safeguarding the assets of the company and hence for taking reasonable steps for the |
prevention and detection of fraud and other irregularities. |
|
The directors are responsible for the maintenance and integrity of corporate and financial |
information on the company's website. |
|
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. |
HATS GROUP LTD (REGISTERED NUMBER: 03135655) |
|
Report of the Directors |
FOR THE YEAR ENDED 31 JULY 2019 |
|
|
AUDITORS |
The auditors, Ian Todd & Co, 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 |
HATS Group Ltd |
|
Opinion |
We have audited the financial statements of HATS Group Ltd (the 'company') for the year ended |
31 July 2019 which comprise the Income Statement, Other Comprehensive Income, Balance |
Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow |
Statement, 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 31 July 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. |
|
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 |
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. |
|
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 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. |
Report of the Independent Auditors to the Members of |
HATS Group Ltd |
|
|
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. |
|
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. |
|
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. |
Report of the Independent Auditors to the Members of |
HATS Group Ltd |
|
|
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
|
Chartered Accountants & Registered Auditors |
Office 36 Vienna House |
Birmingham International Park |
Solihull |
B37 7GN |
|
|
HATS GROUP LTD (REGISTERED NUMBER: 03135655) |
|
Income Statement |
FOR THE YEAR ENDED 31 JULY 2019 |
|
31/7/19 | 31/7/18 |
Notes | £ | £ |
|
TURNOVER | 3 |
|
|
|
Cost of sales |
|
|
GROSS PROFIT |
|
|
|
Administrative expenses |
|
|
OPERATING PROFIT | 5 |
|
|
|
|
Interest payable and similar
expenses |
6 |
|
|
PROFIT BEFORE TAXATION |
|
|
|
Tax on profit | 7 |
|
|
PROFIT FOR THE FINANCIAL YEAR |
|
|
HATS GROUP LTD (REGISTERED NUMBER: 03135655) |
|
Other Comprehensive Income |
FOR THE YEAR ENDED 31 JULY 2019 |
|
31/7/19 | 31/7/18 |
Notes | £ | £ |
|
PROFIT FOR THE YEAR |
|
|
|
|
OTHER COMPREHENSIVE INCOME |
Revaluation of vehicles |
|
|
Income tax relating to other
comprehensive income |
|
|
OTHER COMPREHENSIVE INCOME
FOR THE YEAR, NET OF INCOME TAX |
|
|
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR |
|
|
HATS GROUP LTD (REGISTERED NUMBER: 03135655) |
|
Balance Sheet |
31 JULY 2019 |
|
31/7/19 | 31/7/18 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
|
|
Tangible assets | 9 |
|
|
|
|
|
CURRENT ASSETS |
Debtors | 10 |
|
|
Cash at bank and in hand |
|
|
|
|
CREDITORS |
Amounts falling due within one year | 11 |
|
|
NET CURRENT ASSETS |
|
|
TOTAL ASSETS LESS CURRENT
LIABILITIES |
|
|
|
CREDITORS |
Amounts falling due after more than
one year |
12 |
( |
) |
( |
) |
|
PROVISIONS FOR LIABILITIES | 15 | ( |
) | ( |
) |
NET ASSETS |
|
|
|
CAPITAL AND RESERVES |
Called up share capital | 16 |
|
|
Revaluation reserve | 17 |
|
|
Retained earnings | 17 |
|
|
SHAREHOLDERS' FUNDS |
|
|
|
The financial statements were approved by the Board of Directors on
signed on its behalf by: |
|
|
|
|
|
|
|
HATS GROUP LTD (REGISTERED NUMBER: 03135655) |
|
Statement of Changes in Equity |
FOR THE YEAR ENDED 31 JULY 2019 |
|
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
|
Balance at 1 August 2017 |
|
|
|
|
|
Changes in equity |
Total comprehensive income | - |
|
|
|
Balance at 31 July 2018 |
|
|
|
|
|
Changes in equity |
Total comprehensive income | - |
|
|
|
Balance at 31 July 2019 |
|
|
|
|
HATS GROUP LTD (REGISTERED NUMBER: 03135655) |
|
Cash Flow Statement |
FOR THE YEAR ENDED 31 JULY 2019 |
|
31/7/19 | 31/7/18 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
|
( |
) |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase
payments paid |
( |
) |
( |
) |
Tax paid | ( |
) | ( |
) |
Additional funding |
|
|
Net cash from operating activities | ( |
) | ( |
) |
|
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
|
|
Net cash from investing activities | ( |
) | ( |
) |
|
Cash flows from financing activities |
New finance in year |
|
|
Capital repayments in year | ( |
) |
|
Net cash from financing activities | ( |
) |
|
|
(Decrease)/increase in cash and cash equivalents | ( |
) |
|
Cash and cash equivalents at
beginning of year |
2 |
423,518 |
416,010 |
|
Cash and cash equivalents at end
of year |
2 |
38,159 |
423,518 |
HATS GROUP LTD (REGISTERED NUMBER: 03135655) |
|
Notes to the Cash Flow Statement |
FOR THE YEAR ENDED 31 JULY 2019 |
|
1. |
RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS |
31/7/19 | 31/7/18 |
£ | £ |
Profit before taxation |
|
|
Depreciation charges |
|
|
Loss on disposal of fixed assets |
|
|
Finance costs | 140,665 | 115,313 |
1,624,413 | 1,240,169 |
Increase 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 Cash Flow Statement in respect of cash and cash equivalents |
are in respect of these Balance Sheet amounts: |
|
Year ended 31 July 2019 |
31/7/19 | 1/8/18 |
£ | £ |
Cash and cash equivalents | 38,159 | 423,518 |
Year ended 31 July 2018 |
31/7/18 | 1/8/17 |
£ | £ |
Cash and cash equivalents | 423,518 | 416,010 |
HATS GROUP LTD (REGISTERED NUMBER: 03135655) |
|
Notes to the Financial Statements |
FOR THE YEAR ENDED 31 JULY 2019 |
|
1. | STATUTORY INFORMATION |
|
HATS Group Ltd is a
|
The company's registered number and registered office address can be found on the |
Company Information page. |
|
2. | ACCOUNTING POLICIES |
|
Basis of preparing the financial statements |
The financial statements have been prepared under the historical cost convention and in |
accordance with Financial Reporting Standard 102 ("FRS 102"), the financial reporting |
standard applicable in the United Kingdom and the Republic of Ireland and the Companies |
Act 2006. |
|
The Directors have assessed the company's ability to continue in operational existence for |
the foreseeable future in accordance with the FRC (going concern and liquidity risk |
guidance (October 2009)). Therefore it is considered appropriate to prepare the financial |
statements on a going concern basis. |
|
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding |
discounts, rebates, value added tax and other sales taxes. |
|
Goodwill |
|
|
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 | - |
|
Plant and machinery | - |
|
Fixtures and fittings | - |
|
Motor vehicles | - |
|
|
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 balance sheet date. |
|
HATS GROUP LTD (REGISTERED NUMBER: 03135655) |
|
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 JULY 2019 |
|
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not |
reversed at the balance sheet 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. |
|
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the |
balance sheet. Those held under hire purchase contracts are depreciated over their |
estimated useful lives. Those held under finance leases are depreciated over their estimated |
useful lives or the lease term, whichever is the shorter. |
|
The interest element of these obligations is charged to profit or loss over the relevant period. |
The capital element of the future payments is treated as a liability. |
|
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. |
|
Going concern |
The directors review the on going working capital of the company to ensure that there are |
sufficient resources to meet its financial liabilities to continue trading in the foreseeable |
future. On this basis, the directors consider it appropriate to prepare the financial |
statements on going concern basis. |
HATS GROUP LTD (REGISTERED NUMBER: 03135655) |
|
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 JULY 2019 |
|
2. | ACCOUNTING POLICIES - continued |
|
Financial instruments |
The company only enters into basic financial instruments transactions that result in the |
recognition of financial assets and liabilities like trade and other accounts receivable and |
payable, loans from banks and other third parties, and loans to related parties. |
|
Debt instruments (other than those wholly repayable or receivable within one year), |
including loans and other accounts receivable and payable, are initially measured at present |
value of the future cash flows and subsequently amortised at cost using the effective |
interest method. Debt instruments that are payable or receivable within one year, typically |
trade payables or receivables, are measured, initially and subsequently, at the discounted |
amount of the cash or other consideration, expected to be paid or received. However if |
arrangements of a short-term instrument constitute a financing transaction, like the |
payment of trade debt deferred beyond normal business terms or financed at a rate of |
interest that is not a market rate or in case of an out-right short-term loan at market rate, |
the financial asset or liability is measured, initially at the present value of the future cash |
flow discounted at a market rate of interest for a similar debt instrument and subsequently |
at amortised cost. |
|
Financial assets measured at amortised cost are assessed at the end of each reporting |
period for objective evidence of impairment. If objective evidence of impairment is found, an |
impairment loss is recognised in the Profit and Loss Account. |
|
For financial assets measured at amortised cost, the impairment loss is measured as the |
difference between an asset's carrying amount and the present value of estimated cash flows |
discounted at the asset's original effective interest rate. If a financial asset has a variable |
interest rate, the discount rate for measuring any impairment loss is the current effective |
interest rate determined under the contract. |
|
For financial assets measured at cost less impairment, the impairment loss is measured as |
the difference between an asset's carrying amount and best estimate, which is an |
approximation of the amount that the company would receive for the asset if it were sold at |
the balance sheet date. |
|
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet |
when there is an enforceable right to set off the recognised amounts and there is an |
intention to settle on a net basis or to realise the asset and settle the liability |
simultaneously. |
|
3. | 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: |
|
31/7/19 | 31/7/18 |
£ | £ |
United Kingdom |
|
|
|
|
HATS GROUP LTD (REGISTERED NUMBER: 03135655) |
|
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 JULY 2019 |
|
4. | EMPLOYEES AND DIRECTORS |
31/7/19 | 31/7/18 |
£ | £ |
Wages and salaries |
|
|
Social security costs |
|
|
Other pension costs |
|
|
|
|
|
The average number of employees during the year was as follows: |
31/7/19 | 31/7/18 |
|
Administration | 29 | 23 |
|
31/7/19 | 31/7/18 |
£ | £ |
Directors' remuneration |
|
|
|
5. | OPERATING PROFIT |
|
The operating profit is stated after charging: |
|
31/7/19 | 31/7/18 |
£ | £ |
Depreciation - owned assets |
|
|
Depreciation - assets on hire purchase contracts |
|
|
Loss on disposal of fixed assets |
|
|
Auditors' remuneration |
|
|
|
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31/7/19 | 31/7/18 |
£ | £ |
Factoring costs |
|
|
Other interest payable |
|
|
Hire purchase |
|
|
|
|
HATS GROUP LTD (REGISTERED NUMBER: 03135655) |
|
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 JULY 2019 |
|
7. | TAXATION |
|
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31/7/19 | 31/7/18 |
£ | £ |
Current tax: |
UK corporation tax |
|
|
|
Deferred tax |
|
|
Tax on profit |
|
|
|
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. |
The difference is explained below: |
|
31/7/19 | 31/7/18 |
£ | £ |
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 | - | ( |
) |
Depreciation in excess of capital allowances |
|
- |
|
Deferred tax on accelerated capital allowances | 39,597 | 69,081 |
Enhanced expenditure | (152,000 | ) | - |
Total tax charge | 134,910 | 227,630 |
|
Tax effects relating to effects of other comprehensive |
income |
|
31/7/19 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation of vehicles |
|
- | 848,324 |
HATS GROUP LTD (REGISTERED NUMBER: 03135655) |
|
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 JULY 2019 |
|
8. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 August 2018 |
and 31 July 2019 |
|
AMORTISATION |
At 1 August 2018 |
and 31 July 2019 |
|
NET BOOK VALUE |
At 31 July 2019 |
|
At 31 July 2018 |
|
|
9. | TANGIBLE FIXED ASSETS |
Fixtures |
Short | Plant and | and | Motor |
leasehold | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1 August 2018 |
|
|
|
|
|
Additions |
|
|
|
|
|
Disposals |
|
|
|
( |
) | ( |
) |
Revaluations |
|
|
|
|
|
At 31 July 2019 |
|
|
|
|
|
DEPRECIATION |
At 1 August 2018 |
|
|
|
|
|
Charge for year |
|
|
|
|
|
Eliminated on disposal |
|
|
|
( |
) | ( |
) |
At 31 July 2019 |
|
|
|
|
|
NET BOOK VALUE |
At 31 July 2019 |
|
|
|
|
|
At 31 July 2018 |
|
|
|
|
|
|
The plant & machinery of the company were revalued in May 2019 by the directors and it is |
the company's practice to maintain these assets in a continual state of repair and to extend |
and to make improvements thereto from time to time. It is the company's policy to review |
the valuations on an annual basis. |
HATS GROUP LTD (REGISTERED NUMBER: 03135655) |
|
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 JULY 2019 |
|
9. | TANGIBLE FIXED ASSETS - continued |
|
Assets obtained under hire purchase contracts or finance leases are capitalised in the |
balance sheet. Those held under hire purchase contracts are depreciated over their |
estimated useful lives. Those held under finance leases are depreciated over their useful |
lives or the lease term, whichever is the shorter. |
|
The interest element of those obligations is charged to the profit and loss account over the |
relevant period. The capital element of the future payments is treated as a liability. |
|
Rentals paid under operating leases are charged to the profit and loss account on a straight |
line basis over the period of the lease. |
|
10. | DEBTORS |
31/7/19 | 31/7/18 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
|
|
Prepayments and accrued income |
|
|
|
|
|
Amounts falling due after more than one year: |
Other debtors |
|
|
|
Aggregate amounts |
|
|
|
11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31/7/19 | 31/7/18 |
£ | £ |
Bank loans and overdrafts (see note
13) |
|
|
Hire purchase contracts (see note
14) |
|
|
Trade creditors |
|
|
Tax |
|
|
Social security and other taxes |
|
|
VAT | 69,846 | 245,858 |
Accrued expenses |
|
|
|
|
HATS GROUP LTD (REGISTERED NUMBER: 03135655) |
|
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 JULY 2019 |
|
12. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN
ONE YEAR |
31/7/19 | 31/7/18 |
£ | £ |
Hire purchase contracts (see note
14) |
|
|
Other creditors |
|
|
|
|
|
13. | LOANS |
|
An analysis of the maturity of loans is given below: |
|
31/7/19 | 31/7/18 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
|
|
|
14. | LEASING AGREEMENTS |
|
Minimum lease payments under hire purchase fall due as follows: |
|
31/7/19 | 31/7/18 |
£ | £ |
Net obligations repayable: |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
15. | PROVISIONS FOR LIABILITIES |
31/7/19 | 31/7/18 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
|
|
|
Deferred |
tax |
£ |
Balance at 1 August 2018 |
|
Provided during year |
|
Balance at 31 July 2019 |
|
HATS GROUP LTD (REGISTERED NUMBER: 03135655) |
|
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 JULY 2019 |
|
16. | CALLED UP SHARE CAPITAL |
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31/7/19 | 31/7/18 |
value: | £ | £ |
|
Ordinary | £1 | 10,000 | 10,000 |
|
17. | RESERVES |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
|
At 1 August 2018 |
|
|
2,655,846 |
Profit for the year |
|
|
Revaluation reserve | - | 848,324 | 848,324 |
At 31 July 2019 |
|
|
4,602,110 |
|
18. | CONTINGENT LIABILITIES |
|
The Company has no contingent liabilities in respect of legal claims arising from the |
ordinary course of business. |
|
19. | CAPITAL COMMITMENTS |
|
There were no capital commitments at 31 July 2019. |
|
20. | POST BALANCE SHEET EVENTS |
|
There were no events after the reporting period. |