Company registration number 00422132 (England and Wales)
HOBBS THE PRINTERS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022
HOBBS THE PRINTERS LIMITED
COMPANY INFORMATION
Directors
D A Hobbs
P M Hobbs
C D Hobbs
G N Bromley
Secretary
D A Hobbs
Company number
00422132
Registered office
Brunel Road
Totton
Hampshire
SO40 3YS
Auditor
Azets Audit Services
Secure House
Lulworth Close
Chandlers Ford
Southampton
Hampshire
SO53 3TL
HOBBS THE PRINTERS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 22
HOBBS THE PRINTERS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2022
- 1 -
The directors present the
ir
strategic report for the year ended 31 July 2022.
Principal activity
The company's principal activity is printing. There has not been any change in this in the year under review and the directors are not aware, at the date of this report, of any likely major change in the company’s activity in the current year.
Overall Strategy
The company's overall strategy is to maintain and grow a high quality printing business delivering high value to its customers, employees and shareholders. This is achieved by:
-
Delivering professional services to our customers
.
-
Combining tradition and technology in order to achieve excellence
.
-
Establishing close working relationships with both customers and suppliers
.
-
Recruiting and training appropriate staff at all levels to enable them to fulfil their potential to the maximum and thus provide both job satisfaction and fair financial reward.
Fair review of the business
Sales for the year increased by £1,169,144 (11.5%) to £11,249,785. The gross profit increased by £6,612 to £1,669,416 (£1,662,804 in 2020/21) and profit before tax increased to £339,120 (£321,569 in 2020/21).
The company invested a further £107,027 in new plant during the year, bringing the cost of the company's investment in capital equipment to £10,343,306. The directors believe that ultimately the company's policy of continued investment in new technology is essential for continuing success in the industry, but given the ongoing economic uncertainties brought about by the continuing pandemic and the war in Ukraine, they continue to monitor and amend capital expenditure programmes as necessary.
There were no significant events after the balance sheet date.
Principal risks
Due to the pandemic and the impact of the war in Ukraine the company closely monitors revenue streams and affected supply chains, with increased marketing and sales activities focussed on areas least affected, and endeavours to maximise operating efficiencies.
Market: Competition from key competitors and pressure on margins.
The company endeavours to ameliorate this risk by continuing to explore alternative markets, adding value to its services, providing fast response times and maintaining strong relationships with its customers.
IT Systems: Sufficiently rapid access to and accuracy of data; cyber security.
The company continues to attach great importance to its IT systems and their regular upgrading with direct participation at board level.
Reputation: Quality of products and services; information security.
The company places great emphasis on security awareness, particularly at mid and high management levels.
Credit and cash flow:
The company ensures that appropriate due diligence is carried out on new customers and maintains a strong emphasis on the management of good credit control overall.
Interest rates: Exposure to cash flow interest rate risk.
The company traditionally has ensured that it has no requirement for any significant borrowings and thus has no significant exposure to interest rate risk.
Liquidity: Exposure to inadequate cash flows.
The combined availability of bank balances and continued strong positive cash flows prevents any significant exposure to liquidity risk.
HOBBS THE PRINTERS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2022
- 2 -
Monitoring performance
The company monitors its performance using the following key performance indicators:
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|
|
|
|
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Liquidity: current assets to current liabilities
|
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Return on capital employed
|
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Other information and explanations
Employee involvement
Details of the number of employees and related costs are shown in note 5 to the financial statements.
Environmental matters
Hobbs The Printers Limited recognises the importance of its environmental responsibilities, monitors its impact on the environment, and designs and implements policies to reduce any damage that might be caused by the company's activities. The company has accreditation under the Forestry Stewardship Council's Chain of Custody Standard and the Environmental Standard ISO 14001. Hobbs The Printers is a Carbon Balanced printer and has received the Gold Medal for sustainability by Ecovadis, putting the company within the top 4% of the 100,000 plus companies assessed by Ecovadis globally.
Approved by the Board and signed on its behalf by:
D A Hobbs
Director
17 February 2023
HOBBS THE PRINTERS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2022
- 3 -
The directors present their annual report and financial statements for the year ended 31 July 2022.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
D A Hobbs
P M Hobbs
C D Hobbs
G N Bromley
Strategic report
In accordance with the Companies Act the Strategic Report on pages 1 to 2 provides a fair review of the company's business and description of the principal risks and uncertainties facing the company. It also contains information on the company's performance and strategy.
Results and dividends
A summary of the company's results for the year are set out in the review of the business section of the Strategic Report. Profit after tax was £165,392 (2021 - £318,541).
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Auditor
In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at the forthcoming Annual General Meeting.
Statement of directors' responsibilities
The directors are responsible 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 then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
HOBBS THE PRINTERS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2022
- 4 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s
auditor
is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s
auditor
is aware of that information.
Donations
During the year the company made charitable donations of £2,617 (2021 - £1,405). There were no political contributions.
Approved by the Board and signed on its behalf by:
D A Hobbs
C D Hobbs
Director
Director
17 February 2023
HOBBS THE PRINTERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HOBBS THE PRINTERS LIMITED
- 5 -
Opinion
We have audited the financial statements of Hobbs The Printers Limited (the 'company') for the year ended 31 July 2022 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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 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.
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
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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 our audit
:
-
the information given in the strategic report and the directors'
r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
HOBBS THE PRINTERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HOBBS THE PRINTERS LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of
our
knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
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
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 directors'
r
esponsibilities
s
tatement, 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.
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
.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
HOBBS THE PRINTERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HOBBS THE PRINTERS LIMITED
- 7 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
-
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
-
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
-
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
-
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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.
Adam Wilson FCA (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
17 February 2023
Chartered Accountants
Statutory Auditor
Secure House
Lulworth Close
Chandlers Ford
Southampton
Hampshire
SO53 3TL
HOBBS THE PRINTERS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2022
- 8 -
2022
2021
Notes
£
£
Turnover
3
11,249,785
10,080,641
Cost of sales
(9,490,730)
(8,417,837)
Gross profit
1,759,055
1,662,804
Distribution costs
(210,433)
(202,167)
Administrative expenses
(1,246,547)
(1,422,693)
Other operating income
27,914
278,786
Operating profit
4
329,989
316,730
Interest receivable and similar income
7
9,131
4,839
Profit before taxation
339,120
321,569
Tax on profit
8
(173,728)
(3,028)
Profit for the financial year
165,392
318,541
The profit and loss account has been prepared on the basis that all operations are continuing operations.
The company has no recognised gains or losses for the year other than the results above.
HOBBS THE PRINTERS LIMITED
BALANCE SHEET
AS AT
31 JULY 2022
31 July 2022
- 9 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
9
2,921,941
3,590,174
Current assets
Stocks
10
1,164,876
586,041
Debtors
11
3,625,304
3,235,905
Cash at bank and in hand
1,463,102
1,561,017
6,253,282
5,382,963
Creditors: amounts falling due within one year
12
(1,069,824)
(1,066,868)
Net current assets
5,183,458
4,316,095
Total assets less current liabilities
8,105,399
7,906,269
Provisions for liabilities
Deferred tax liability
13
450,738
417,000
(450,738)
(417,000)
Net assets
7,654,661
7,489,269
Capital and reserves
Called up share capital
14
40,000
40,000
Profit and loss reserves
7,614,661
7,449,269
Total equity
7,654,661
7,489,269
The financial statements were approved by the board of directors and authorised for issue on 17 February 2023 and are signed on its behalf by:
D A Hobbs
C D Hobbs
Director
Director
Company Registration No. 00422132
HOBBS THE PRINTERS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2022
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 August 2020
40,000
7,130,728
7,170,728
Year ended 31 July 2021:
Profit and total comprehensive income for the year
-
318,541
318,541
Balance at 31 July 2021
40,000
7,449,269
7,489,269
Year ended 31 July 2022:
Profit and total comprehensive income for the year
-
165,392
165,392
Balance at 31 July 2022
40,000
7,614,661
7,654,661
HOBBS THE PRINTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022
- 11 -
1
Accounting policies
Company information
Hobbs The Printers Limited is a
private
company
limited by shares and
incorporated in
England and Wales
.
The registered office is
Brunel Road, Totton, Hampshire, SO40 3YS.
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.
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.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
-
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’
:
Interest
income/expense and net gains/losses for each category of financial instrument;
basis
of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income
;
-
Section 33 ‘Related Party Disclosures’
:
Compensation for key management personnel
and intra-group related party transactions.
The financial statements of the company are consolidated in the financial statements of
H C Holdings (Southampton) Limited
. These consolidated financial statements are available from its registered office
: c/o Azets, Lulworth Close, Chandlers Ford, Hampshire, SO53 3TL.
1.2
Going concern
At the time of approving the financial statements, the directors confirm
true
that
the company has adequate resources to continue in operational existence for the foreseeable future. Thus
,
the directors continue to adopt the going concern basis of accounting in preparing the financial statements
.
1.3
Turnover
Turnover is recognised a
s
the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
The Company recognises revenue when goods are delivered and title has been transferred to the customer.
HOBBS THE PRINTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2022
1
Accounting policies
(Continued)
- 12 -
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and machinery
3 - 10 years straight line
Fixtures and fittings
7 years straight line
Motor vehicles
4 years straight line
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks
and
other short-term liquid investments with original maturities of three months or less
.
HOBBS THE PRINTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2022
1
Accounting policies
(Continued)
- 13 -
1.8
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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in
profit
or
loss
, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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.
HOBBS THE PRINTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2022
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities
Basic financial liabilities, including
trade and other creditors
, are classified as debt, 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.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities.
Trade creditors
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
s
ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in
profit
or
loss
in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value th
r
ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.9
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.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
HOBBS THE PRINTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2022
1
Accounting policies
(Continued)
- 15 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
profit and loss account
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.14
Foreign exchange
Transactions in currencies other than
pounds sterling
are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
HOBBS THE PRINTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2022
- 16 -
2
Judgements and key sources of estimation uncertainty
Judgements
In preparing these financial statements, the directors have made the following judgements:
Impairment of fixed assets
Determine whether there are any indications of impairment of the company's tangible fixed assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.
Work in progress
Determine the stage of completion of work in progress and assess the progress of each contract.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year are detailed below:
Depreciation and residual values of fixed assets
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and project disposal values.
Allowances for doubtful debts
The company maintains allowances for doubtful debts for estimated losses resulting from the subsequent inability of customers to make required payments. If the financial conditions of customers were to deteriorate, resulting in impairment of the ability to make payments, additional allowances may be required in future periods.
Provisions for obsolete and slow moving stocks
The company maintains allowances for stock which is not expected to be, or is deemed difficult, to be utilised.
HOBBS THE PRINTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2022
- 17 -
3
Turnover and other revenue
2022
2021
£
£
Turnover analysed by class of business
Sales of goods and services
11,249,785
10,080,641
All turnover has been generated within the United Kingdom.
2022
2021
£
£
Other revenue
Interest income
9,131
4,839
Grants received
27,914
278,786
The government grants received during the year are in respect of the United Kingdom government Job Retention Scheme.
4
Operating profit
2022
2021
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(37,983)
17,097
Government grants
(27,914)
(278,786)
Fees payable to the company's auditor for the audit of the company's financial statements
9,670
8,300
Depreciation of owned tangible fixed assets
762,888
708,255
Loss/(profit) on disposal of tangible fixed assets
5,903
(44,001)
HOBBS THE PRINTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2022
- 18 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year, analysed by category was as follows:
2022
2021
Number
Number
Production
99
110
Administration and support
18
20
Directors
4
4
Total
121
134
Their aggregate remuneration comprised:
2022
2021
£
£
Wages and salaries
3,467,741
3,462,107
Social security costs
329,449
295,149
Pension costs
204,089
212,679
4,001,279
3,969,935
6
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
173,736
166,132
Company pension contributions to defined contribution schemes
4,225
173,736
170,357
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 0 (2021 - 1).
7
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
9,131
312
Other interest income
4,527
Total income
9,131
4,839
HOBBS THE PRINTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2022
- 19 -
8
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
140,024
-
Adjustments in respect of prior periods
(34)
(1,972)
UK corporation tax recoverable
(150,000)
Total current tax
139,990
(151,972)
Deferred tax
Origination and reversal of timing differences
33,738
155,000
Total deferred tax
33,738
155,000
Total tax charge
173,728
3,028
The charge for the year can be reconciled based on the profit or loss and the standard rate of tax as follows:
2022
2021
£
£
Profit before taxation
339,120
321,569
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
64,433
61,098
Tax effect of expenses that are not deductible in determining taxable profit
1,487
475
Adjustments in respect of prior years
(34)
(1,972)
Deferred tax expense/(credit)
33,738
155,000
Tax increase/(decrease) from effect of capital allowances and depreciation
74,104
(211,573)
Taxation charge for the year
173,728
3,028
HOBBS THE PRINTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2022
- 20 -
9
Tangible fixed assets
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 August 2021
9,662,864
667,788
63,526
10,394,178
Additions
83,331
23,696
107,027
Disposals
(134,756)
(23,143)
(157,899)
At 31 July 2022
9,611,439
691,484
40,383
10,343,306
Depreciation and impairment
At 1 August 2021
6,331,686
449,984
22,334
6,804,004
Depreciation charged in the year
700,327
52,880
9,681
762,888
Eliminated in respect of disposals
(127,011)
(18,516)
(145,527)
At 31 July 2022
6,905,002
502,864
13,499
7,421,365
Carrying amount
At 31 July 2022
2,706,437
188,620
26,884
2,921,941
At 31 July 2021
3,331,178
217,804
41,192
3,590,174
10
Stocks
2022
2021
£
£
Raw materials and consumables
800,911
226,253
Work in progress
363,965
359,788
1,164,876
586,041
11
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
1,717,910
1,447,650
Corporation tax recoverable
10,010
150,000
Amounts owed by group undertakings
1,303,406
1,052,364
Other debtors
295,582
296,318
Prepayments and accrued income
298,396
289,573
3,625,304
3,235,905
HOBBS THE PRINTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2022
- 21 -
12
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
729,860
698,178
Taxation and social security
74,369
Other creditors
4,793
Accruals and deferred income
260,802
368,690
1,069,824
1,066,868
13
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2022
2021
Balances:
£
£
Accelerated capital allowances
451,785
417,000
Retirement benefit obligations
(1,047)
-
450,738
417,000
2022
Movements in the year:
£
Liability at 1 August 2021
417,000
Charge to profit or loss
33,738
Liability at 31 July 2022
450,738
14
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
40,000
40,000
40,000
40,000
15
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
204,089
212,679
The company operates a
number of
defined contribution pension scheme
s
for all qualifying employees.
The assets of the schemes are held separately from those of the company in independently administered funds.
HOBBS THE PRINTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2022
- 22 -
16
Financial commitments, guarantees and contingent liabilities
H C Holdings (Southampton) Limited and Hobbs The Printers Limited have a group registration for Value Added Tax. The company therefore has a contingent liability in respect of amounts due to H M Revenue & Customs by its parent company.
17
Capital commitments
At the year end, the company had a capital commitment to purchase plant and machinery for £720,000 (2021 - £nil). Included within prepayments and accrued income is £144,000 (2021 - £nil) in respect of this capital commitment.
18
Ultimate controlling party
The company's immediate and ultimate parent is H C Holdings (Southampton) Limited, incorporated in England and Wales. The parent company financial statements are available upon request from the company's registered office: c/o Azets, Lulworth Close, Chandlers Ford, Hampshire, SO53 3TL.
The ultimate controlling party is D A Hobbs.
2022-07-31
2021-08-01
false
CCH Software
CCH Accounts Production 2022.300
No description of principal activity
P M Hobbs
C D Hobbs
G N Bromley
G N Bromley
D A Hobbs
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