Registration number:
La Hacienda Limited
for the Year Ended 30 September 2022
La Hacienda Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Statement of Comprehensive Income |
|
Statement of Financial Position |
|
Statement of Changes in Equity |
|
Notes to the Financial Statements |
La Hacienda Limited
Company Information
Directors |
B G Harris R F Mehmel J I Thompson W C Durborow P North |
Directors |
M F Wilson (resigned 3 March 2023) |
Company secretary |
J I Thompson |
Company secretary |
M F Wilson (resigned 3 March 2023) |
Company registration number |
04290723 |
Registered office |
|
Auditor |
|
La Hacienda Limited
Strategic Report for the Year Ended 30 September 2022
Introduction
The directors present their strategic report for the year ended 30 September 2022.
Principal activity
The principal activity of the company is the wholesale of outdoor heating and décor.
Fair review of the business
The Directors are satisfied with the Company’s performance during the year ending 30 September 2022. The Company’s sales revenues remained buoyant, supported by our continued innovative approach to new products and marketing within our sector and the board is pleased to report a 5% increase in revenues for the period.
The industry, as a whole, has been hit significantly during the past twelve months, with customers overstocking during the pandemic, resulting in lower sales. It has been a challenging year with global supply and freight shortages, along with inflationary pressures, resulting in increased costs in all areas. Despite these challenges the company has continued to successfully maintain revenue and control costs, achieving an improved gross margin of 22.8% (2021 19.1%) and operating margin of 6.2% (2021 6.2%).
To build upon the successes of 2022 the company has produced a clear commercial strategy to build revenues further with ongoing support from the ultimate parent company, in order to increase the customer base, introduce new products and expand the current product lines.
The company's key financial and other performance indicators during the year were as follows:
Unit |
2022 |
2021 |
|
Gross margin |
% |
22.8 |
19.1 |
Operating profit |
% |
6.2 |
6.2 |
There are no further key performance indicators the directors wish to disclose.
La Hacienda Limited
Strategic Report for the Year Ended 30 September 2022 (continued)
Principal risks and uncertainties
Some of the retail customers review product ranging on an annual basis leading into the next season. This presents uncertainties with regards to confirmed ranging year on year. The Company’s strong relationship with customers and innovative product minimises this risk.
Interest rate risk
The loans within the company are those held with the parent company and as such interest risk exposure is determined to be extremely low.
Price risk
Price risk is the risk that changes in raw material prices have the potential to impact on the profitability of the company. The pricing and supply of materials have been subject to high inflation over the past twelve months, however the company’s sales and pricing policies seek to mitigate such risks where possible
Credit risk
Credit risk is the risk that one party of a financial instrument will cause a financial loss for the other party by failing to discharge its obligation. Company policies are aimed at minimising such losses and require customers to satisfy credit worthiness procedures prior to acceptance of contracts. The company also utilises insurance policies to protect against non-payment of debt. The company does not consider that it is materially exposed to credit risk.
Cash flow and liquidity risk
Cash flow and liquidity risk is the risk that a company's available cash will not be sufficient to meet its financial obligations. The company actively manages its cash flow position including collection of debts and timely payment of creditors. Due to the seasonality of Company’s working capital requirements, the company uses a combination of finance leases and hire purchase contracts, cash, intergroup funding and short term deposits to minimise the Company's exposure to cash flow and liquidity risk.
Foreign Exchange risk
Foreign exchange risk refers to the potential for loss from exposure to foreign exchange rate fluctuations. Fluctuations in GBP against the USD can also affect the pricing of materials. Company policies are aimed at minimising this risk. The company does not consider that it is materially exposed to foreign exchange risk.
Approved by the
......................................... |
La Hacienda Limited
Directors' Report for the Year Ended 30 September 2022
The directors present their report and the financial statements for the year ended 30 September 2022.
Directors of the company
The directors who held office during the year were as follows:
The following director was appointed after the year end:
Results for the year
The results for the year are set out on page 12.
The directors do not recommend the payment of a dividend.
Financial instruments
Objectives and policies
The company finances its activities with a combination of finance leases and hire purchase contracts, cash, intergroup funding and short term deposits. Other financial assets and liabilities, such as trade debtors and trade creditors, arise directly from the Company's operating activities.
Price risk, credit risk, liquidity risk and cash flow risk
See disclosures included in the Strategic Report.
Engagement with employees
Our employees are our greatest asset and our success relies on the application of their knowledge and skills. We aim to be an employer of choice and a responsible employer in our approach to pay and benefits, and the health, safety and well-being of our employees is always a primary consideration. We communicate with employees through a variety of channels including management site visits, departmental meetings, AMES Talk, whole company presentations and the Company Intranet.
The company is committed to the development of employee consultation and thereby to the greater involvement of employees in the company's operations and future strategy. Consultation is achieved on both a formal and informal basis through work committees, briefing sessions and discussions with groups of employees.
We give full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a disabled person. The same training, opportunities and career development options are offered to disabled employees wherever practicable.
La Hacienda Limited
Directors' Report for the Year Ended 30 September 2022 (continued)
Engagement with suppliers, customers and other relationships
Meeting the needs of customers now and developing our offering so that we can continue to meet and exceed their needs into the future, requires regular engagement. Customer requirements are always taken into consideration during new product development along with assessment of the demand curve over the coming months. Our aim is to be a supplier and customer of choice to our customers and suppliers. We expect our suppliers to operate ethically, taking due consideration for the safety and well-being of their workers while minimising their environmental impacts. By working closely with and setting high standards for our suppliers, we reduce operating and reputational risk and promote the long term success of the company. This is achieved through regular meetings, both virtually and physically.
Environmental matters
The company aims to prevent any possible adverse effects upon the environment and people arising from its activities. We aim to recycle, rework and reduce our waste as much as possible. Only licenced, approved, specialist waste disposal contractors are used.
Future developments
The Company continues to invest in its infrastructure and people.
Going concern
The directors have reviewed the profit and loss and cashflow forecast of the company. Despite the macro-economic uncertainties the UK faces, post year end cash shortfalls have been addressed by obtaining funding from the ultimate parent company. Based on the forecast trading, profitability and liquidity for 2023 and 2024 the directors consider that the company has adequate resource, with the support from the ultimate parent company, to continue operations for the foreseeable future, being a period of not less than twelve months from the date of signing the financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
Important non adjusting events after the financial period
There are no post balance sheet events that require disclosure.
Directors' liabilities
During the financial year, qualifying third party indemnity provisions for the benefit of directors were in force.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Reappointment of auditor
In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Grant Thornton UK LLP as auditors of the company is to be proposed at the forthcoming Annual General Meeting.
La Hacienda Limited
Directors' Report for the Year Ended 30 September 2022 (continued)
Approved and authorised for issue by the
......................................... |
La Hacienda Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Approved by the
......................................... |
La Hacienda Limited
Independent Auditor's Report to the Members of La Hacienda Limited
Opinion
We have audited the financial statements of La Hacienda Limited (the 'company') for the year ended 30 September 2022, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, 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 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 September 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 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 are responsible for concluding on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the Company to cease to continue as a going concern.
In our evaluation of the directors' conclusions, we considered the inherent risks associated with the Company's business model including effects arising from from macro-economic uncertainties such as current inflationary pressures, we assessed and challenged the reasonableness of estimates made by the directors and the related disclosures and analysed how those risks might affect the Company's financial resources or ability to continue operations over the going concern period.
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.
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.
La Hacienda Limited
Independent Auditor's Report to the Members of La Hacienda Limited (continued)
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matter on which we are required to report under the Companies Act 2006
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
Matters on which we are required to report by exception
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, 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.
La Hacienda Limited
Independent Auditor's Report to the Members of La Hacienda Limited (continued)
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.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
• |
We obtained an understanding of how the Company is complying with significant legal and regulatory frameworks through inquiries of management; |
• |
The Company is subject to many laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements. We identified Financial Reporting Standard 102 and the Companies Act 2006, along with legislation relating to employment, health & safety, data protection and environmental issues, as those most likely to have a material effect if non-compliance were to occur; |
• |
We communicated relevant laws and potential fraud risks to all engagement team members and remained alert to any indicators of fraud or non-compliance with laws and regulations throughout the audit; |
• |
We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur. We considered the opportunity and incentives for management to perpetrate fraud, and the potential impact on the financial statements; |
• |
In assessing the potential risk of material misstatement, we obtained an understanding of: |
o |
the Company's operations, including the nature of its revenue sources, products, and services and of its objectives and strategies to understand the classes of transactions, account balances, expected financial statement disclosures and business risks that may result in risks of material misstatement; |
o |
the company’s control environment; and |
o |
the Company's relevant controls over areas of significant risks; |
• |
Audit procedures performed by the engagement team included: |
o |
identifying the significant risk of fraud within revenue recognition and undertaking substantive testing to obtain sufficient and appropriate audit evidence; |
o |
testing manual journal entries, in particular journal entries relating to management estimates and entries determined to be large or relating to unusual transactions; and |
o |
identifying and testing related party transactions; |
La Hacienda Limited
Independent Auditor's Report to the Members of La Hacienda Limited (continued)
• |
We obtained an understanding of how the company is complying with significant legal and regulatory frameworks through inquiries of management; |
• |
Those audit procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error and detecting irregularities that result from fraud is inherently more difficult than detecting those that result from error, as fraud may involve collusion, deliberate concealment, forgery or intentional misrepresentations. Also, the further removed noncompliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it. |
• |
Assessment of the appropriateness of the collective competence and capabilities of the engagement team included: |
o |
consideration of the engagement team's understanding of, and practical experience with, audit engagements of a similar nature and complexity; |
o |
appropriate training, knowledge of the industry in which the Company operates; and |
o |
understanding of the legal and regulatory requirements specific to the Company. |
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 auditor's report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
......................................
Senior Statutory Auditor
For and on behalf of
Statutory Auditor, Chartered Accountants
2 Glass Wharf
BS2 0EL
La Hacienda Limited
Statement of Comprehensive Income for the Year Ended 30 September 2022
Note |
2022 |
2021 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
- |
|
|
Operating profit |
|
|
|
Other interest receivable and similar income |
- |
|
|
Interest payable and similar expenses |
( |
( |
|
Profit before tax |
|
|
|
Taxation |
( |
( |
|
Profit for the financial year |
|
|
The above results were derived from continuing operations.
La Hacienda Limited
(Registration number: 04290723)
Statement of Financial Position as at 30 September 2022
Note |
2022 |
2021 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Profit and loss account |
|
|
|
Total equity |
|
|
Approved and authorised for issue by the
......................................... |
La Hacienda Limited
Statement of Changes in Equity for the Year Ended 30 September 2022
Share capital |
Profit and loss account |
Total |
|
At 1 October 2020 |
|
|
|
Profit for the year |
- |
|
|
Total comprehensive income |
- |
|
|
At 30 September 2021 |
|
|
|
Share capital |
Profit and loss account |
Total |
|
At 1 October 2021 |
|
|
|
Profit for the year |
- |
|
|
Total comprehensive income |
- |
|
|
At 30 September 2022 |
|
|
|
La Hacienda Limited
Notes to the Financial Statements for the Year Ended 30 September 2022
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is
Principal activity
The principal activity of the company is the wholesale of outdoor heating and décor.
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
These financial statements are prepared in sterling which is the functional currency of the entity.
Summary of disclosure exemptions
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102:
(a) Disclosures in respect of each class of share capital have not been presented.
(b) No cash flow statement has been presented for the company.
(c) Disclosures in respect of financial instruments have not been presented.
(d) Disclosures in respect of share-based payments have not been presented.
(e) No disclosure has been given for the aggregate remuneration of key management personnel.
The company has taken advantage of the exemption available under paragraph 33.1A of FRS 102 and does not disclose related party transactions with members of the same group that are wholly owned.
La Hacienda Limited
Notes to the Financial Statements for the Year Ended 30 September 2022 (continued)
2 |
Accounting policies (continued) |
Going concern
The directors have reviewed the profit and loss and cashflow forecast of the company. Despite the macro-economic uncertainties the UK faces, post year end cash shortfalls have been addressed by obtaining funding from the ultimate parent company. Based on the forecast trading, profitability and liquidity for 2023 and 2024 the directors consider that the company has adequate resource, with the support from the ultimate parent company, to continue operations for the foreseeable future, being a period of not less than twelve months from the date of signing the financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
Judgements
There are considered to be no significant judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies which affect the amounts recognised in the financial statements. |
Key sources of estimation uncertainty
Management reviews the estimates and assumptions on a continuous basis, by reference to past experiences and other factors that can reasonably be used to assess the book value of assets and liabilities. Actual results may differ from those estimates.
Useful lives of tangible assets - management reviews its estimate of the useful lives of depreciable assets at each reporting date, based on the expected utility of the assets.
Inventory provision - management reviews its stock listing to identify potentially obsolete stock.
Warranty, credit note and bad debt provision - management identifies potential provisions based on past experience with warranty and credit note claims as well as customer knowledge.
Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
The following criteria must also be met before revenue is recognised:
Sale of goods
• |
the Company has transferred the significant risks and rewards of ownership to the buyer; |
• |
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |
• |
the amount of revenue can be measured reliably; |
• |
it is probable that the Company will receive the consideration due under the transaction; and the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Foreign currency transactions and balances
La Hacienda Limited
Notes to the Financial Statements for the Year Ended 30 September 2022 (continued)
2 |
Accounting policies (continued) |
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of comprehensive income.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in the Statement of comprehensive income within 'other operating income'.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of comprehensive income.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
La Hacienda Limited
Notes to the Financial Statements for the Year Ended 30 September 2022 (continued)
2 |
Accounting policies (continued) |
Asset class |
Depreciation method and rate |
|
Long-leasehold property |
10 years straight line |
|
Plant and machinery |
3 to 7 years straight line |
|
Motor vehicles |
5 years straight line |
|
Office equipment |
5 years straight line |
|
Computer equipment |
3 years straight line |
|
Assets under construction |
No depreciation is provided until the asset is in use |
Trade debtors
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
Stocks
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Trade creditors
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Holiday pay accrual
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the Statement of financial position date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the Statement of financial position date.
Borrowings
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Statement of comprehensive income in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Statement of financial position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of financial position.
Leases
Rentals paid under operating leases are charged to the Statement of comprehensive income on a straight line basis over the lease term.
La Hacienda Limited
Notes to the Financial Statements for the Year Ended 30 September 2022 (continued)
2 |
Accounting policies (continued) |
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. Dividends on shares recognised as liabilities are recognised as expenses and classified within interest payable.
Defined contribution pension obligation
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the Statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.
Financial instruments
The Company enters into basic and non-basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties, investments in non-puttable ordinary shares and forward exchange contracts.
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 at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a 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 outright short-term loan not 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 that are measured at cost and 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 Statement of comprehensive income.
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 of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.
La Hacienda Limited
Notes to the Financial Statements for the Year Ended 30 September 2022 (continued)
2 |
Accounting policies (continued) |
Financial assets and liabilities are offset and the net amount reported in the Statement of financial position 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.
Turnover |
The analysis of the company's Turnover for the year from continuing operations is as follows:
2022 |
2021 |
|
Sale of goods |
|
|
The analysis of the company's Turnover for the year by market is as follows:
2022 |
2021 |
|
UK |
|
|
Europe |
|
|
Rest of world |
|
|
|
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
2022 |
2021 |
|
Government grants |
- |
|
The company has received government assistance via the Coronavirus Job Retention Scheme of £nil (2021 - £1,297). This was claimed against the staff costs of the company as reported gross below.
Operating profit |
Arrived at after charging/(crediting)
Note |
2022 |
2021 |
|
Depreciation expense |
|
|
|
Foreign exchange (gains)/losses |
( |
|
|
Profit on disposal of property, plant and equipment |
( |
( |
|
Amounts charged in respect of operating lease rentals |
282,229 |
278,406 |
La Hacienda Limited
Notes to the Financial Statements for the Year Ended 30 September 2022 (continued)
Other interest receivable and similar income |
2022 |
2021 |
|
Interest income on bank deposits |
- |
|
Interest payable and similar expenses |
2022 |
2021 |
|
Interest on bank overdrafts and borrowings |
|
|
Interest expense on other finance liabilities |
- |
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2022 |
2021 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
2022 |
2021 |
|
Production |
|
|
Administration and support |
|
|
|
|
Directors' remuneration |
As a result of the acquisition of La Hacienda Limited by The Ames Companies UK Limited as at 31 July 2017, Directors are now paid by the parent company or related party companies. During the year retirement benefits were not accruing to any directors (2021 - £nil) in respect of defined contribution pension schemes.
La Hacienda Limited
Notes to the Financial Statements for the Year Ended 30 September 2022 (continued)
Auditor's remuneration |
2022 |
2021 |
|
Audit of the financial statements |
|
|
Taxation |
Tax charged/(credited) in the income statement
2022 |
2021 |
|
Current taxation |
||
UK corporation tax |
- |
|
UK corporation tax adjustment to prior periods |
|
- |
16,523 |
14,973 |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
|
Arising from changes in tax rates and laws |
- |
3,441 |
Arising from previously unrecognised tax loss, tax credit or temporary difference of prior periods |
(21,226) |
- |
Total deferred taxation |
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2021 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2022 |
2021 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
- |
|
Deferred tax (credit)/expense relating to changes in tax rates or laws |
( |
|
UK deferred tax expense relating to changes in tax rates or laws |
|
|
Increase in UK and foreign current tax from adjustment for prior periods |
|
- |
Tax decrease from effect of capital allowances and depreciation |
- |
( |
Tax decrease arising from group relief |
( |
( |
Total tax charge |
|
|
La Hacienda Limited
Notes to the Financial Statements for the Year Ended 30 September 2022 (continued)
11 |
Taxation (continued) |
Deferred tax
Deferred tax assets and liabilities
2022 |
Liability |
Accelerated capital allowances |
|
Short term timing differences |
( |
|
2021 |
Liability |
Accelerated capital allowances |
|
Short term timing differences |
( |
|
In the Spring Budget 2020, the Government announced that from 1 April 2020 the corporation tax rate would remain at 19% (rather than reducing to 17% as previously enacted). This new law was deemed substantively enacted on 17 March 2020. In the Spring Budget 2021, the Government announced that from 1 April 2023 the corporation tax rate will increase from 19% to 25%. This new law was deemed substantively enacted on 24 May 2021 and the deferred tax balances at the year end have been calculated based on this rate.
La Hacienda Limited
Notes to the Financial Statements for the Year Ended 30 September 2022 (continued)
Tangible assets |
Long leasehold land and buildings |
Assets under construction |
Plant and machinery |
Office equipment |
Motor vehicles |
Computer equipment |
Total |
|
Cost or valuation |
|||||||
At 1 October 2021 |
|
|
|
|
|
|
|
Additions |
|
|
|
|
- |
|
|
Disposals |
- |
- |
- |
- |
( |
- |
( |
At 30 September 2022 |
|
|
|
|
- |
|
|
Depreciation |
|||||||
At 1 October 2021 |
|
- |
|
|
|
|
|
Charge for the year |
|
- |
|
|
|
|
|
Eliminated on disposal |
- |
- |
- |
- |
( |
- |
( |
At 30 September 2022 |
|
- |
|
|
- |
|
|
Carrying amount |
|||||||
At 30 September 2022 |
|
|
|
|
- |
|
|
At 30 September 2021 |
|
|
|
|
|
|
|
La Hacienda Limited
Notes to the Financial Statements for the Year Ended 30 September 2022 (continued)
12 |
Tangible assets (continued) |
Included within the net book value of land and buildings above is £76,189 (2021 - £29,296) in respect of long leasehold land and buildings.
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
2022 |
2021 |
|
Plant and machinery |
98,787 |
44,967 |
Stocks |
2022 |
2021 |
|
Finished goods and goods for resale |
|
|
Debtors |
Current |
Note |
2022 |
2021 |
Trade debtors |
|
|
|
Other debtors |
|
|
|
Prepayments |
|
|
|
Corporation tax asset |
|
|
|
|
|
Cash and cash equivalents |
2022 |
2021 |
|
Cash at bank |
|
|
La Hacienda Limited
Notes to the Financial Statements for the Year Ended 30 September 2022 (continued)
Creditors |
Note |
2022 |
2021 |
|
Due within one year |
|||
Loans and borrowings |
|
|
|
Trade creditors |
|
|
|
Amounts owed to group undertakings |
|
|
|
Social security and other taxes |
|
|
|
Other creditors |
|
|
|
Accrued expenses |
|
|
|
|
|
||
Due after one year |
|||
Loans and borrowings |
|
|
Loans and borrowings |
2022 |
2021 |
|
Current loans and borrowings |
||
Hire purchase and finance lease liabilities |
|
|
2022 |
2021 |
|
Non-current loans and borrowings |
||
Hire purchase and finance lease liabilities |
|
|
Provisions for liabilities |
Deferred tax |
Total |
|
At 1 October 2021 |
|
|
Increase (decrease) in existing provisions |
|
|
At 30 September 2022 |
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Contributions totalling £
La Hacienda Limited
Notes to the Financial Statements for the Year Ended 30 September 2022 (continued)
Share capital |
Allotted, called up and fully paid shares
2022 |
2021 |
|||
No. |
£ |
No. |
£ |
|
|
|
100 |
|
100 |
|
|
2 |
|
2 |
|
|
|
|
Rights, preferences and restrictions
Ordinary shares have the following rights, preferences and restrictions: |
Ordinary 'B' shares have the following rights, preferences and restrictions: |
Obligations under leases and hire purchase contracts |
Finance leases
The total of future minimum lease payments is as follows:
2022 |
2021 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
Operating leases
The total of future minimum lease payments is as follows:
2022 |
2021 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
Related party transactions |
Summary of transactions with entities with joint control or significant interest
La Hacienda Limited
Notes to the Financial Statements for the Year Ended 30 September 2022 (continued)
Parent and ultimate parent undertaking |
In the opinion of the directors the ultimate parent is
The company's immediate parent is
The directors present their report and the financial statements for the year ended 30 September 2022.
The parent of the largest group in which these financial statements are consolidated is
The address of Griffon Corporation is:
The parent of the smallest group in which these financial statements are consolidated is
The address of The Ames Companies UK Limited is:
Non adjusting events after the financial period |
|