Company Registration No. 10983636 (England and Wales)
HOSE & HYDRAULICS GROUP LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
PAGES FOR FILING WITH REGISTRAR
HOSE & HYDRAULICS GROUP LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
HOSE & HYDRAULICS GROUP LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2019
31 December 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Investments
3
1,692,289
1,681,871
Current assets
Debtors
4
188,400
111,312
Cash at bank and in hand
898
1,582
189,298
112,894
Creditors: amounts falling due within one year
5
(1,490,150)
(956,489)
Net current liabilities
(1,300,852)
(843,595)
Total assets less current liabilities
391,437
838,276
Creditors: amounts falling due after more than one year
6
(415,000)
(830,000)
Net (liabilities)/assets
(23,563)
8,276
Capital and reserves
Called up share capital
7
900
900
Profit and loss reserves
(24,463)
7,376
Total equity
(23,563)
8,276
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 17 July 2020 and are signed on its behalf by:
Mr C F Ford
Director
Company Registration No. 10983636
HOSE & HYDRAULICS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 2 -
1
Accounting policies
Company information
Hose & Hydraulics Group Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
71A Roman Way, Longridge Road, Ribbleton, Preston, PR2 5BE.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section
399
of the
Companies Act 2006 not to prepare consolidated accounts
, on the basis that the group of which this is the parent qualifies as a small group
. The financial statements present information about the company as an individual entity and not about its group
.
1.2
Going concern
Alongside its wider group, the company’s activities were impacted by the Covid-19 pandemic and the subsequent 'lockdown' introduced by the UK government during March 2020.
Throughout the recent lockdown period, the group supplied product to certain industries deemed ‘essential’ by the government. Although some customers temporarily closed, all of the group’s trading locations remained open with a reduced level of staff. The group is confident that its operations have adapted to the new circumstances caused by the pandemic and specifically the facilitation of appropriate social distancing and hygiene procedures throughout all sites.
The group has made use of the available government financial support for which it is eligible, such as the CJR scheme. The group’s banking partner has also provided support in the form of a £3m CBIL scheme loan, additional short-term facilities from asset-backed lending and deferred capital repayments. At the time of signing the financial statements, the group had headroom in its various facilities in excess of £6m.
The directors have produced and referred to prudent cash flow forecasts, at both the company and group level. During lockdown, the group produced a medium-term reforecast and trading throughout April, May and June has exceeded reforecast levels and throughout lockdown the group has remained profitable. Most of the group’s debt funding is postponed for more than 12 months but where necessary, confirmation has been provided by key creditors that they will not seek repayment for at least twelve months from the date of the financial statements being approved. The parent company has confirmed that it will provide financial support for a period of at least 12 months from approval of the financial statements. Taken together, these points indicate that the company will be able to meet all its liabilities as they are projected to fall due for payment over the next twelve months, leading the directors to conclude that there is no material uncertainties over adopting the going concern basis at the time of signing the financial statements.
HOSE & HYDRAULICS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 3 -
1.3
Reporting period
The prior period covers from incorporation, on 27 September 2017, to 31 December 2018. 31 December was chosen as the reporting date to bring the company in line with other group companies. Therefore the balances are not entirely comparable with the current twelve month period.
1.4
Fixed asset investments
Interests in subsidiaries
are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
1.5
Cash at bank and in hand
Cash at bank and in hand
are basic financial assets
and
include cash in hand, deposits held at call with banks
and bank overdrafts.
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors and loans from
fellow group companies, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
HOSE & HYDRAULICS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 4 -
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.8
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 1 (2018 - 3).
3
Fixed asset investments
2019
2018
£
£
Investments
1,692,289
1,681,871
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 January 2019
1,681,871
Additions
10,418
At 31 December 2019
1,692,289
Carrying amount
At 31 December 2019
1,692,289
At 31 December 2018
1,681,871
HOSE & HYDRAULICS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 5 -
4
Debtors
2019
2018
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
187,500
110,000
Other debtors
900
900
188,400
110,900
2019
2018
Amounts falling due after more than one year:
£
£
Deferred tax asset
-
412
Total debtors
188,400
111,312
5
Creditors: amounts falling due within one year
2019
2018
£
£
Amounts owed to group undertakings
1,073,115
536,865
Taxation and social security
-
2,689
Other creditors
417,035
416,935
1,490,150
956,489
6
Creditors: amounts falling due after more than one year
2019
2018
£
£
Other creditors
415,000
830,000
7
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
900 A Ordinary shares of £1 each
900
900
HOSE & HYDRAULICS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 6 -
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Joe Sullivan.
The auditor was MHA Moore and Smalley.
9
Financial commitments, guarantees and contingent liabilities
At the period end the company was party to a cross company guarantee covering group borrowings, at the balance sheet date the security given in this respect was limited to a total of £2,697,278.
10
Related party transactions
The company has taken advantage of the exemption conferred by section 33 FRS 102, namely from disclosing any transactions entered into between two or more members of the group. Provided that any subsidiary which is party to the transaction is wholly owned by such a member.
11
Parent company
The parent company is R&G Fluid Power Group Limited, a company incorporated in England and Wales. The registered office of R&G Fluid Power Group Limited is 71A Roman Way, Longridge Road, Ribbleton, Preston, PR2 5BE.
The only group in which the results of the company are consolidated is that headed by R&G Fluid Power Group Limited. Copies of these financial statements can be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.