Hose & Hydraulics Group Limited is a private company limited by shares incorporated in England and Wales . The registered office is 10 - 11 Charterhouse Square, London, EC1M 6EE.
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 first half of the year under report remained particularly challenging operationally as a result of the continuation of the Covid-19 pandemic. Despite these challenges, the group’s trading locations remained open throughout this period, with sites continuing to adapt to the implementation of safe working practices because of the pandemic. Trading performance has remained consistently strong, returning comparatively to pre-pandemic levels, re-enforcing the robust underlying demand for the products and services that the group provides across a wide range of industries.
Trading since the balance sheet date has been profitable and is tracking well ahead of 2021 on a like for like basis. Prudent cash flow forecasts have been prepared alongside the completion of the annual group budget for the upcoming financial year and have been referred to by the directors and at the time of signing the financial statements. The group has headroom in its various facilities in excess of £5,000,000. Since the balance sheet date, various key debt items have also been cleared from the group balance sheet, as a consequence of the acquisition of the group by Diploma PLC in April 2022. This has generated a significantly improved net asset position across the group.
Confirmation has also been provided by principal funders and debt providers that they will not seek repayment for at least twelve months from the date of the financial statements being approved. Other external economic factors such as the ongoing war in Ukraine, and the Brexit transition period have also been considered as part of the group’s adoption of the going concern basis. Whilst certain supplier lead times have been extended by a combination of these external factors, there has been minimal impact upon the cash flow of the group and its anticipated cash flow over the short to medium term.
Taken together, these points indicate that the group 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 are no material uncertainties over adopting the going concern basis at the time of signing the financial statements.
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.
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, 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.
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.
The average monthly number of persons (including directors) employed by the company during the year was:
Bank borrowings are secured over the assets of the company and via a cross company guarantee involving other group members.
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.
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 £4,911,209.
On 6 April 2022, R&G Fluid Power Group Ltd, the ultimate parent company at the balance sheet date, was acquired by a subsidiary of Diploma PLC. Subsequent to this transaction, the group effected a refinance such that overdraft and term debt balances lent by its long-standing banking partner were settled in full. Each of these matters are treated as a non-adjusting post balance sheet event within these financial statements.
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.
The immediate parent company is R&G Fluid Power Group Limited, a company incorporated in England and Wales. The ultimate parent company is Diploma PLC, a company incorporated in England and Wales, with a registered office located at 10-11 Charterhouse Square, London, England, EC1M 6EE.
The only group in which these 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.