Hayward Services Limited - Limited company accounts 18.2

REGISTERED NUMBER: 03090908 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2019

FOR

HAYWARD SERVICES LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

7

Other Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Notes to the Financial Statements

11

DIRECTORS:

E I Gordon

I D Forrest

D Simpson

S Walker

Miss S Drews

Mrs S Gordon

Miss S Holden

Mrs S Walker

SECRETARY:

R A C Sears

REGISTERED OFFICE:

227 Berwick Avenue

Slough

Berkshire

SL1 4QT

REGISTERED NUMBER:

03090908 (England and Wales)

SENIOR STATUTORY AUDITOR:

Richard Oury

AUDITORS:

Oury Clark Chartered Accountants

Statutory Auditors

Herschel House

58 Herschel Street

Slough

Berkshire

SL1 1PG

The directors present their strategic report for the year ended 31 March 2019.

REVIEW OF BUSINESS

Sales for the period ended 31 March 2019 were £13.63m (2018: £9.20m) and the gross margin was 23% (2018: 20%).

Operating profit was £544k (2018: £471k) and profit after tax was £450k (2018: £381k). Although, these figures are not

entirely comparable as the prior period was shortened to 9 months in order for the period end to coincide with the tax year.

The directors are satisfied with the results for the year and the business continues to perform well in what is a competitive

market place.

The business continues to grow with new contracts and is performing to a standard enabling it to retain re-tendered business.

The directors have not identified any uncertainties that might affect the operations of the business in the future, and believe

that it is well positioned to continue the growth in the coming years.

PRINCIPAL RISKS AND UNCERTAINTIES

Staff risk

The smooth running of the business is dependent upon recruitment of cleaning operatives. The company expends

considerable effort to recruit successfully at the sites where it provides service. Additionally, the support and training that is

provided to operatives improves retention and reduces the recruitment requirement. Our senior and contract management

teams are extremely stable.

Credit risk

Trade debtors are the company's principal financial asset yet the directors do not consider collection of them of any great

risk. The company has a very good history of debt collection and there have been no bad debts to write off in recent years. A

very large percentage of the company's customer base is made up of government departments and other extremely creditable

organisations.

DISABLED EMPLOYEES

Applications for employment by disabled persons are given full and fair consideration for all vacancies in accordance with

their particular aptitudes and abilities.

In the event of employees becoming disabled, every effort is made to retrain them in order that their employment with the

group may continue.

It is the policy of the group that training, career development and promotion opportunities should be made available to all

employees.

ON BEHALF OF THE BOARD:

S Walker - Director

6 September 2019

The directors present their report with the financial statements of the company for the year ended 31 March 2019.

DIVIDENDS

An interim dividend of £442,000 was paid during the year, being £442 per share.

The total distribution of dividends for the period ended 31 March 2019 will be £442,000.

FUTURE DEVELOPMENTS

We recognise that a large percentage of the company's turnover is in the public sector and the directors plan to grow the

commercial sector of the business in order to rebalance the contract portfolio over the next two years.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2018 to the date of this report.

E I Gordon

I D Forrest

D Simpson

S Walker

Other changes in directors holding office are as follows:

Miss S Drews - appointed 1 July 2018

Mrs S Gordon - appointed 1 July 2018

Miss S Holden - appointed 1 July 2018

Mrs S Walker - appointed 1 July 2018

EMPLOYEE INVOLVEMENT

The company has continued its practice of keeping employees informed of matters affecting them as employees and of the

financial and economic factors affecting the performance of the company.

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). 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.

AUDITORS

The auditors, Oury Clark Chartered Accountants, are deemed to be re-appointed under Section 487 (2) of the Companies

Act 2006.

ON BEHALF OF THE BOARD:

S Walker - Director

6 September 2019

Opinion

We have audited the financial statements of Hayward Services Limited (the 'company') for the year ended 31 March 2019

which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and

Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework

that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial

Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom

Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 March 2019 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you

where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

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 there is a material misstatement in the financial statements or a material

misstatement of the other information. If, based on the work we have performed, we conclude that there is a material

misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and 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.

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 three, 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.

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.

Richard Oury (Senior Statutory Auditor)

for and on behalf of Oury Clark Chartered Accountants

Statutory Auditors

Herschel House

58 Herschel Street

Slough

Berkshire

SL1 1PG

6 September 2019

TURNOVER

13,634,857

9,200,966

Cost of sales

10,485,347

7,346,660

GROSS PROFIT

3,149,510

1,854,306

Administrative expenses

2,626,807

1,403,672

522,703

450,634

Other operating income

21,090

20,072

OPERATING PROFIT

4

543,793

470,706

Interest payable and similar expenses

5

7

8

PROFIT BEFORE TAXATION

543,786

470,698

Tax on profit

6

93,679

88,704

PROFIT FOR THE FINANCIAL YEAR

450,107

381,994

PROFIT FOR THE YEAR

450,107

381,994

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

450,107

381,994

FIXED ASSETS

Tangible assets

8

230,079

227,383

Investment property

9

187,407

187,407

417,486

414,790

CURRENT ASSETS

Stocks

10

64,913

64,518

Debtors

11

3,191,644

2,886,010

Cash at bank and in hand

121,403

139,775

3,377,960

3,090,303

CREDITORS

Amounts falling due within one year

12

2,903,723

2,622,842

NET CURRENT ASSETS

474,237

467,461

TOTAL ASSETS LESS CURRENT LIABILITIES

891,723

882,251

PROVISIONS FOR LIABILITIES

15

33,475

32,110

NET ASSETS

858,248

850,141

CAPITAL AND RESERVES

Called up share capital

16

1,000

1,000

Revaluation reserve

17

65,755

65,755

Retained earnings

17

791,493

783,386

SHAREHOLDERS' FUNDS

858,248

850,141

The financial statements were approved by the Board of Directors on 6 September 2019 and were signed on its behalf by:

S Walker - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 July 2017

1,000

771,392

65,755

838,147

Changes in equity

Dividends

-

(370,000

)

-

(370,000

)

Total comprehensive income

-

381,994

-

381,994

Balance at 31 March 2018

1,000

783,386

65,755

850,141

Changes in equity

Dividends

-

(442,000

)

-

(442,000

)

Total comprehensive income

-

450,107

-

450,107

Balance at 31 March 2019

1,000

791,493

65,755

858,248

1.	STATUTORY INFORMATION

Hayward Services Limited is a private company, limited by shares , registered in England and Wales. The company's

registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions 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;

•

the requirement of Section 33 Related Party Disclosures paragraph 33.7.

Turnover

In respect of contracts for on-going services, turnover represents the apportioned contract value over the timeframe

of the contract. Other incidental work is recognised evenly over the duration of the work completed.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

66.6% on cost and Straight line over 3 years

Motor vehicles

-

Straight line over 4 years

Computer equipment

-

50% on cost

The directors deem that plant and machinery are disposed of after 5 years and so at the end of this period, a disposal

is included to remove the accumulated cost and depreciation from the financial statements.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair

value is recognised in profit or loss.

Stocks

Stocks relate to consumables and are therefore held at cost.

Financial instruments

Basic financial instruments as covered by Section 11 of FRS 102 are measured at amortised cost. The company does

not have any other financial instruments as covered by Section 12 of FRS 102.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance

sheet 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

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance

sheet date. Transactions in 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.

Hire purchase and leasing commitments

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. Contributions payable to the company's pension

scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

Period

1.7.17

Year Ended

to

31.3.19

31.3.18

£

£

Wages and salaries

10,704,106

7,127,337

Social security costs

349,624

215,096

Other pension costs

364,950

244,753

11,418,680

7,587,186

The average number of employees during the year was as follows:

Period

1.7.17

Year Ended

to

31.3.19

31.3.18

Head office

48

45

Site staff

1,299

1,237

1,347

1,282

Period

1.7.17

Year Ended

to

31.3.19

31.3.18

£

£

Directors' remuneration

256,896

128,487

Directors' pension contributions to money purchase schemes

156,763

100,985

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

6

4

Information regarding the highest paid director for the year ended 31 March 2019 is as follows:

Year Ended

31.3.19

£

Emoluments etc

78,364

Pension contributions to money purchase schemes

15,500

4.	OPERATING PROFIT

The operating profit is stated after charging:

Period

1.7.17

Year Ended

to

31.3.19

31.3.18

£

£

Hire of plant and machinery

5,621

4,867

Other operating leases

80,374

67,962

Depreciation - owned assets

142,612

108,110

Auditors' remuneration

20,000

15,000

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

Period

1.7.17

Year Ended

to

31.3.19

31.3.18

£

£

Bank interest

7

8

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

Period

1.7.17

Year Ended

to

31.3.19

31.3.18

£

£

Current tax:

UK corporation tax

92,314

84,444

Deferred tax

1,365

4,260

Tax on profit

93,679

88,704

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:

Period

1.7.17

Year Ended

to

31.3.19

31.3.18

£

£

Profit before tax

543,786

470,698

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2018 - 19%)

103,319

89,433

Effects of:

Expenses not deductible for tax purposes

(442

)

7,946

Capital allowances in excess of depreciation

(1,524

)

(4,760

)

Utilisation of group tax losses

(9,039

)

(8,175

)

Deferred tax liability movement

1,365

4,260

Total tax charge

93,679

88,704

7.

DIVIDENDS

Period

1.7.17

Year Ended

to

31.3.19

31.3.18

£

£

Ordinary shares of £1 each

Final

442,000

370,000

8.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Motor

Computer

machinery

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 April 2018

903,966

27,304

177,441

126,060

1,234,771

Additions

118,235

530

17,750

8,793

145,308

Disposals

(86,456

)

-

(35,339

)

-

(121,795

)

At 31 March 2019

935,745

27,834

159,852

134,853

1,258,284

DEPRECIATION

At 1 April 2018

787,451

4,672

111,727

103,538

1,007,388

Charge for year

91,454

5,590

32,981

12,587

142,612

Eliminated on disposal

(86,456

)

-

(35,339

)

-

(121,795

)

At 31 March 2019

792,449

10,262

109,369

116,125

1,028,205

NET BOOK VALUE

At 31 March 2019

143,296

17,572

50,483

18,728

230,079

At 31 March 2018

116,515

22,632

65,714

22,522

227,383

9.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 April 2018

and 31 March 2019

197,457

DEPRECIATION

At 1 April 2018

and 31 March 2019

10,050

NET BOOK VALUE

At 31 March 2019

187,407

At 31 March 2018

187,407

The investment property was valued on an open market basis on 26 November 2018 by Nick Cobb Ltd Chartered

Surveyors. The valuation exceeded the current carrying value of the investment property, and therefore no

impairment was deemed necessary by the directors.

10.

STOCKS

31.3.19

31.3.18

£

£

Stocks

64,913

64,518