REGISTERED NUMBER: |
G. J. HANDY (TRADING) LTD |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30TH NOVEMBER 2022 |
REGISTERED NUMBER: |
G. J. HANDY (TRADING) LTD |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30TH NOVEMBER 2022 |
G. J. HANDY (TRADING) LTD (REGISTERED NUMBER: 00551762) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30TH NOVEMBER 2022 |
Page |
Company Information | 1 |
Strategic Report | 2 | to | 3 |
Report of the Directors | 4 | to | 5 |
Report of the Independent Auditors | 6 | to | 8 |
Statement of Income and Retained Earnings | 9 |
Statement of Financial Position | 10 |
Notes to the Financial Statements | 11 | to | 20 |
G. J. HANDY (TRADING) LTD |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30TH NOVEMBER 2022 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
43-45 Devizes Road |
SWINDON |
Wiltshire |
SN1 4BG |
G. J. HANDY (TRADING) LTD (REGISTERED NUMBER: 00551762) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30TH NOVEMBER 2022 |
The directors have pleasure in presenting their strategic report for the year ended 30 November 2021. |
REVIEW OF BUSINESS |
The sector in which the company trades is seasonal and is dependent to some degree on the weather at key times. |
In 2022 we saw a drop in sales due to dry weather during the peak season and also due to consumer confidence with rising cost of living. |
The turnover for the year was £14.6 million, which was down on 2021 by £1.56 million. |
Profit was also down partly from the drop in turnover but also that the cost of stock and general overheads were increasing due to post COVID supply and worldwide inflation. |
Our UK distribution partnership with Greenworks Tools and The Webb, The Handy and Q Garden brands continue to grow at a strong pace which complement the other big brand names we represent. |
Our strategy remains unchanged with the aim to deliver the best distribution infrastructure in our industry coupled with a highly skilled and knowledgeable team of staff means we can continue to grow our business and strive to lead in our sector. |
POSITION AT THE END OF THE YEAR |
At year end the company remained in a strong balance sheet position but with high stock levels which will carry into 2023. |
On a positive note the high stock levels carried forward means we are well positioned to cope with demand in 2023. In the last 2 years, due to the pandemic stock availability has been an issue at times so being in a positive stock position puts the company in a good starting place for 2023. |
PRINCIPAL RISKS AND UNCERTAINTIES |
While we are not complacent about further uncertainties there is a lot more feeling of returning to the pre COVID normality. We have had a lot of changes and issues to deal with over the last couple of years and are well placed now to drive forward both financially and infostructure wise. |
Currency swings are always a risk that we continue to manage carefully and successfully. |
Weather is and always has been the biggest uncertainty we cannot control. We have been dealing with this challenge as a business for over 80 years and the experience in our team allows us to keep these risks to a minimum by managing stock and range offerings. |
KEY PERFORMANCE INDICATORS |
The directors have identified that the key performance indicators when looking at the business are the monitoring of turnover on a monthly basis compared to the seasonalised budget, margin levels (2022 15.3%, 2021 17.8%, 2020 12.4%), stock turn (2022 1.66, 2021 2.6, 2020 3.6), control of overheads compared to budget and cash flow. |
G. J. HANDY (TRADING) LTD (REGISTERED NUMBER: 00551762) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30TH NOVEMBER 2022 |
FUTURE DEVELOPMENTS |
Planning permission has been sort for further development of the Dorcan Distribution site however delays with this has meant the building work is being delayed until 2024. However, during 2023 we are planning on investing in internal warehouse improvements to enhance efficiency. Also during 2023 we are looking at the potential of solar powering the whole site to reduce operating costs and for the good of the environment. |
We continue to be partnered by the leading brands as well as our own brand offerings making us the one stop wholesaler in our industry. |
ON BEHALF OF THE BOARD: |
G. J. HANDY (TRADING) LTD (REGISTERED NUMBER: 00551762) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30TH NOVEMBER 2022 |
The directors present their report with the financial statements of the company for the year ended 30th November 2022. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of retailing and distribution of domestic and professional garden machinery. |
DIVIDENDS |
Interim dividends totalling £ |
The total distribution of dividends for the year ended 30th November 2022 will be £ |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st December 2021 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
G. J. HANDY (TRADING) LTD (REGISTERED NUMBER: 00551762) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30TH NOVEMBER 2022 |
AUDITORS |
The auditors, Morris Owen, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
G. J. HANDY (TRADING) LTD |
Opinion |
We have audited the financial statements of G. J. Handy (Trading) Ltd (the 'company') for the year ended 30th November 2022 which comprise the Statement of Income and Retained Earnings, Statement of Financial Position 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 30th November 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. 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 the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
G. J. HANDY (TRADING) LTD |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- | the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations through the audit planning process; |
- | we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company's industry; |
- | we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act, taxation legislation, general data protection regulations (GDPR), employment, and health and safety legislation; |
- | we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- | identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
G. J. HANDY (TRADING) LTD |
We assessed this susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur by: |
- | making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- | considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
As a result of a small management and finance team we identified a risk of fraud through management bias and ability to override of controls, including lack of segregation of duties, which could lead to a misappropriation of cash and other assets. To address this we: |
- | performed analytical procedures to identify any unusual or unexpected relationships; |
- | tested journal entries to identify unusual transactions; |
- | carried out walk through testing of both sales and purchases to understand payment and authorisation processes; |
reviewing reasons behind sales credit notes raised; |
- | assessed whether judgements and assumptions made in determining the accounting estimates set out in note two were indicative of potential bias; and |
- | investigated the rationale behind significant or unusual transaction. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- | agreeing financial statement disclosures to underlying supporting documentation; |
- | enquiring with solicitors for any instances in the year; |
- | enquiring of management as to actual and potential litigation and claims; and |
- | reviewing correspondence with HM Revenue & Customs (HMRC) and any legal correspondence. |
Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditors |
43-45 Devizes Road |
SWINDON |
Wiltshire |
SN1 4BG |
G. J. HANDY (TRADING) LTD (REGISTERED NUMBER: 00551762) |
STATEMENT OF INCOME AND |
RETAINED EARNINGS |
FOR THE YEAR ENDED 30TH NOVEMBER 2022 |
2022 | 2021 |
Notes | £ | £ |
REVENUE | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
246,713 | 859,325 |
Other operating income | 4 |
OPERATING PROFIT | 6 |
Interest payable and similar expenses | 7 |
PROFIT BEFORE TAXATION |
Tax on profit | 8 |
PROFIT FOR THE FINANCIAL YEAR |
Retained earnings at beginning of year |
Dividends | 9 | ( |
) | ( |
) |
RETAINED EARNINGS AT END OF YEAR |
G. J. HANDY (TRADING) LTD (REGISTERED NUMBER: 00551762) |
STATEMENT OF FINANCIAL POSITION |
30TH NOVEMBER 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Property, plant and equipment | 11 |
CURRENT ASSETS |
Inventories | 12 |
Debtors | 13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Capital redemption reserve | 21 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on |
G. J. HANDY (TRADING) LTD (REGISTERED NUMBER: 00551762) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30TH NOVEMBER 2022 |
1. | STATUTORY INFORMATION |
GJ Handy (Trading) Limited is private company, limited by shares, registered in England and Wales. |
The registered office address is Murdock Road, Dorcan, Swindon, Wiltshire, SN3 5HY. |
These financial statements are presented in British Pounds (GBP), which is the company's functional and presentational currency. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows. |
Significant judgements and estimates |
The directors have calculated an annual stock provision for any slowing moving or obsolete third party stock. The directors believe the most accurate way to calculate this provision is to review each stock line held at the year end and compare this to sales post year end. All stock lines that have had less than 20% sales are deemed to be slowing moving and/or obsolete. Of this total of slowing moving and/or obsolete stock, the directors believe that a portion of this should be provided for. This year's profile of stock included a majority of 'newer' stock and therefore this was provided for at a lower percentage of 17.5%. Stock lines, as in the previous year, that have been included in the provision for two consecutive years or more are subject to a 50% provision. The period for the post year end review is considered to capture the seasonality of the business. The provision has been calculated at £180,706 (2021: £253,628). |
The directors also have determined an appropriate provision for bad and doubtful debts by assessing the recoverability of all balances on a balance by balance basis. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, net of vat, discounts, and rebates. Turnover is recognised when goods are despatched or made available for collection. Turnover in foreign currencies is translated into sterling at the rates published by HMRC. |
Intangible fixed assets |
Amortisation is provided over 3 years to write off the website costs over its estimated useful life. |
Tangible fixed assets |
Property improvements | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
G. J. HANDY (TRADING) LTD (REGISTERED NUMBER: 00551762) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH NOVEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Stocks and work in progress |
Stocks are valued at the lower of cost and net realisable value, after make due allowance for obsolete and slow moving items. The cost of inventories is measured using the first-in first-out basis. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Transactions in all other foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. |
The company enters into a forward agreements to minimise against the risk of fluctuations in the US dollar. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the profit and loss account. |
G. J. HANDY (TRADING) LTD (REGISTERED NUMBER: 00551762) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH NOVEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
Financial instruments are classified by the directors as basic or advanced following the conditions in FRS 102 Section 11. Basic financial instruments are recognised at amortised cost using the effective interest method. The only advanced instruments recognised by the company are derivatives (being forward foreign exchange contracts). Derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognised in arriving at profit before tax. Derivative assets are included in other debtors and derivative liabilities are included in other creditors. |
3. | REVENUE |
The revenue and profit before taxation are attributable to the one principal activity of the company. |
4. | OTHER OPERATING INCOME |
2022 | 2021 |
£ | £ |
Other income | 105,861 | 161,830 |
Government grants |
105,861 | 234,485 |
5. | EMPLOYEES AND DIRECTORS |
2022 | 2021 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2022 | 2021 |
Management staff | 5 | 5 |
Administration staff | 12 | 12 |
Sales, distribution & workshop staff | 27 | 28 |
2022 | 2021 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
G. J. HANDY (TRADING) LTD (REGISTERED NUMBER: 00551762) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH NOVEMBER 2022 |
5. | EMPLOYEES AND DIRECTORS - continued |
Information regarding the highest paid director for the year ended 30th November 2022 is as follows: |
2022 |
£ |
Emoluments etc |
Pension contributions to money purchase schemes |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2022 | 2021 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Auditors' remuneration |
Forward currency contract movement | ( |
) |
Foreign exchange differences | ( |
) |
During the year the company disposed of several motor vehicles which resulted in a large profit on disposal. This is not expected to reoccur |
Auditors' remuneration for non audit work includes the fees of £4,674 (2021: £5,660) payable to the company's auditors for the audit of its fellow subsidiary company, G.J. Handy (Properties) Limited, and for the G.J. Handy (Holdings) Limited Group as a whole. |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2022 | 2021 |
£ | £ |
Bank interest |
Hire purchase |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2022 | 2021 |
£ | £ |
Current tax: |
UK corporation tax |
Over/under provision in |
previous year | - | (662 | ) |
Total current tax |
Deferred tax | ( |
) |
Tax on profit |
UK corporation tax has been charged at 19% (2021 - 19%). |
G. J. HANDY (TRADING) LTD (REGISTERED NUMBER: 00551762) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH NOVEMBER 2022 |
8. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2022 | 2021 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Adjustments to tax charge in respect of previous periods | ( |
) |
Short term timing differences | (12 | ) | - |
Total tax charge | 27,491 | 203,641 |
The deferred tax movement of -£4,408 (2021: £13,477) relates to the origination and reversal of temporary timing differences. |
9. | DIVIDENDS |
2022 | 2021 |
£ | £ |
Interim |
10. | INTANGIBLE FIXED ASSETS |
Website |
costs |
£ |
COST |
At 1st December 2021 |
and 30th November 2022 |
AMORTISATION |
At 1st December 2021 |
and 30th November 2022 |
NET BOOK VALUE |
At 30th November 2022 |
At 30th November 2021 |
G. J. HANDY (TRADING) LTD (REGISTERED NUMBER: 00551762) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH NOVEMBER 2022 |
11. | PROPERTY, PLANT AND EQUIPMENT |
Fixtures |
Property | Plant and | and |
improvements | machinery | fittings |
£ | £ | £ |
COST |
At 1st December 2021 |
Additions |
Disposals | ( |
) |
At 30th November 2022 |
DEPRECIATION |
At 1st December 2021 |
Charge for year |
Eliminated on disposal | ( |
) |
At 30th November 2022 |
NET BOOK VALUE |
At 30th November 2022 |
At 30th November 2021 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1st December 2021 |
Additions |
Disposals | ( |
) | ( |
) |
At 30th November 2022 |
DEPRECIATION |
At 1st December 2021 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 30th November 2022 |
NET BOOK VALUE |
At 30th November 2022 |
At 30th November 2021 |
G. J. HANDY (TRADING) LTD (REGISTERED NUMBER: 00551762) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH NOVEMBER 2022 |
11. | PROPERTY, PLANT AND EQUIPMENT - continued |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1st December 2021 |
Additions |
Disposals | ( |
) | ( |
) |
Transfer to ownership | - | (118,650 | ) | (118,650 | ) |
At 30th November 2022 |
DEPRECIATION |
At 1st December 2021 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
Transfer to ownership | - | (104,845 | ) | (104,845 | ) |
At 30th November 2022 |
NET BOOK VALUE |
At 30th November 2022 |
At 30th November 2021 |
12. | INVENTORIES |
2022 | 2021 |
£ | £ |
Spares stock |
Machinery stock |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Amounts owed by participating interests | 1,756,824 | 1,756,824 |
Other debtors |
Prepayments and accrued income |
G. J. HANDY (TRADING) LTD (REGISTERED NUMBER: 00551762) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH NOVEMBER 2022 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Bank loans and overdrafts (see note 16) |
Hire purchase contracts (see note 17) |
Trade creditors |
Amounts owed to group undertakings |
Corporation tax |
Social security and other taxes |
VAT | 124,158 | 340,108 |
Other creditors |
Directors' current accounts | 7,024 | 18,616 |
Accruals and deferred income |
Included in other creditors is an amount of £5,285 (2021: £5,347) in relation to pension contributions owing. |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2022 | 2021 |
£ | £ |
Hire purchase contracts (see note 17) |
The terms of the hire purchase agreements for the above balance have repayments in equal instalments ending between December 2021 and December 2024, at interest rates that vary between 2.50% and 3.30%. |
16. | LOANS |
An analysis of the maturity of loans is given below: |
2022 | 2021 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
17. | LEASING AGREEMENTS |
Minimum lease payments under hire purchase fall due as follows: |
Hire purchase | contracts |
2022 | 2021 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
The company rents its premises from its fellow group company, G.J. Handy (Properties) Limited; there is no formal agreement in place. |
G. J. HANDY (TRADING) LTD (REGISTERED NUMBER: 00551762) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH NOVEMBER 2022 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
2022 | 2021 |
£ | £ |
Bank overdrafts |
Hire purchase contracts | 141,519 | 124,069 |
Obligations under hire purchase are secured on the assets concerned. |
The company has a bank overdraft facility. The use of the facility is secured by the following: |
A debenture dated 16th June 2009 over all assets of the company. |
A unlimited inter-company guarantee dated 19th November 2015 for G.J. Handy (Properties) Limited and G.J. Handy (Holdings) Limited. |
19. | PROVISIONS FOR LIABILITIES |
2022 | 2021 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 27,802 | 32,210 |
Warranty provision | 9,630 | 22,135 |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1st December 2021 |
Credit to Statement of Comprehensive Income during year | ( |
) | ( |
) |
Balance at 30th November 2022 |
The other provision relates to warranty costs on certain product lines, expected within the next 12 months. |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
Ordinary | £1 | 17,000 | 17,000 |
Ordinary shares have full voting rights. |
G. J. HANDY (TRADING) LTD (REGISTERED NUMBER: 00551762) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH NOVEMBER 2022 |
21. | RESERVES |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1st December 2021 | 5,781,535 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 30th November 2022 | 5,683,468 |
22. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The loan was provided interest free and was repayable on demand. |
23. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
2022 | 2021 |
£ | £ |
Amount due from related parties |
During the year, the key management personnel are considered to be the directors' only. |
24. | ULTIMATE CONTROLLING PARTY |
The company's immediate and ultimate parent company is G.J. Handy (Holdings) Limited, a private company, limited by shares and registered in England and Wales. The registered office of this company is Murdock Road, Dorcan, Swindon, Wiltshire, SN3 5HY, |
The ultimate controlling party is considered to be Mr S A Belcher, being the majority shareholder of G.J. Handy (Holdings) Limited |