Eley Hawk Limited - Period Ending 2022-02-28
Eley Hawk Limited - Period Ending 2022-02-28
Registration number:
for the Period from 1 April 2021 to 28 February 2022
Eley Hawk Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account |
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Statement of Comprehensive Income |
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Statement of financial position |
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Statement of Changes in Equity |
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Notes to the Financial Statements |
Eley Hawk Limited
Company Information
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Directors |
Mr Paolo Pederzoli Mrs Pilar Maria Astuy Mr Gilles Roccia Mr David Aguilar Gomez Mr Andrea Andreani Mr Rodrigo Crespo Barreda Mr Herve Farman |
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Company secretary |
Mr Rodrigo Crespo Barreda |
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Registered office |
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Auditors |
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Eley Hawk Limited
Strategic Report for the Period from 1 April 2021 to 28 February 2022
The directors present their strategic report for the period from 1 April 2021 to 28 February 2022.
Fair review of the business
During the current year the company has sought to return to normal levels of activity without significant COVID-19 disruptions that took place during the last couple of years. During this period ending 28th February 2022 the Turnover has increased by over 62% to in excess of £10 million pounds, the Gross Profit has increased by 44% to £1,435,398 and EBITDA from £119,191 in 2021 to £1,273,459. These three are the key performance indicators reviewed by the company directors in the monthly accounts and represent at the same time volume increase, cost control and product mix improvement.
Business model
The UK market remains the key driver for our business model, where our unique selling position allows the company to offer added value products. These unique characteristics, in combination with the high quality of our products, are the decisive factor in becoming the first choice of the British shooter.
Business strategy
Our field sales team and marketing function have been strengthened in order to increase sales potential for our products in the UK market. In order to do so, the company is committed to innovate and develop innovative technology and products so that reliable plastic-free choices can be exclusively be offered to game and clay shooters.
Business review
The company keeps improving its loading capabilities in order to meet current and potential demand of our customers.
Eley Hawk Limited
Strategic Report for the Period from 1 April 2021 to 28 February 2022 (continued)
The company's key financial and other performance indicators during the period were as follows:
|
Unit |
2022 |
2021 |
|
|
EBIDTA - pre exceptional items |
£ |
1,273,459 |
119,191 |
|
EBIDTA - post exceptional items |
£ |
1,273,459 |
119,191 |
|
Gross margin |
% |
14 |
16 |
|
Net margin |
% |
3 |
Principal risks and uncertainties
The company's principal risks include the market price of metals and competitive pressure.
Eley Hawk purchase two main types of metallic raw material:-
1. Lead - where the risk of fluctuating market prices is minimised by securing a fixed price when the raw material is purchased. This will normally be the most competitive price available within approximately one month of the purchase order date.
2. Steel - where the annual demand is significantly smaller that the demand for lead ingots, however, the risk of fluctuating prices cannot be removed, it is also severely affected by shipping costs.
Bismuth - where the annual demand is a fraction of the demand for lead. Risk of fluctuating prices is removed by price agreement at the time of placing the order.
Competitive pressure is a continuing risk for the company which could result in a loss of sales. The company manages this risk by maintaining strong links with customers, cost optimization and continually seeking to win new business.
Legislative changes at both UK and EU level provide an additional level of uncertainty to the business, however the directors have plans in place to mitigate this risk.
Eley Hawk Limited
Strategic Report for the Period from 1 April 2021 to 28 February 2022 (continued)
Approved by the Board on 16 August 2022 and signed on its behalf by:
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Eley Hawk Limited
Directors' Report for the Period from 1 April 2021 to 28 February 2022
The directors present their report and the financial statements for the period from 1 April 2021 to 28 February 2022.
Directors' of the company
The directors, who held office during the period, were as follows:
The following directors were appointed after the period end:
Principal activity
The principal activity of the company is the manufacture of sporting shotgun cartridges
Eley Hawk Limited
Directors' Report for the Period from 1 April 2021 to 28 February 2022 (continued)
Financial instruments
Objectives and policies
The company's operations expose it to a number of financial risks that include price risk, liquidity risk, credit risk and foreign exchange risk. The directors continually monitor financial risk to ensure appropriate risk management policies are adopted and implemented, either directly or through the group companies, to gain the desired results at a group level.
Price risk, credit risk, liquidity risk and cash flow risk
Price risk:
Eley Hawk purchases three types of metallic raw material:-
1. Lead - where the risk of fluctuating prices is minimised by securing a fixed price when the raw material is purchased. This will normally be the most competitive price available within approximately a month of the purchase order date.
2. Bismuth - where the annual demand is a fraction of the demand for lead ingots and the risk of fluctuating prices is removed by price agreement at the time of placing the order.
3. Steel - where the annual demand is a fraction of the demand for lead ingots, however, the risk of fluctuating prices cannot be removed, and it is also severely affected by shipping costs.
Liquidity risk
The company's liquidity requirements for day to day operations are, and are expected to continue to be, funded by cash provided by operations and by the operation of the company's financing facilities.
Credit risk
The company monitors its exposure to customer credit risk and maintains allowances for anticipated losses after giving consideration to current delinquency data, historical loss experience and economic conditions impacting its customers. Management continuously review information concerning the financial condition of the company's customers and believe that the company's allowance for doubtful accounts is sufficient to cover such risks.
Foreign exchange risk
The company undertakes a number of transactions denominated in Euros, and therefore it is exposed to movements in the Euro to Sterling exchange rates. The company manages this risk through the operation of a Euro bank account.
Eley Hawk Limited
Directors' Report for the Period from 1 April 2021 to 28 February 2022 (continued)
Employment of disabled persons
Details of the number of employees and related costs can be found in note 9 to the financial statements.
Suitable procedures are in operation to support the company's policy that disabled persons (whether registered or not) shall be considered for employment and subsequent career development and promotion on the basis of their aptitudes and abilities. Wherever possible employees who become disabled are offered retraining for another available position within the company.
The company places considerable value on the involvement of employees and has continued to keep them informed of matters affecting them as employees and on the various factors affecting the performance of the company. This is achieved through formal and informal meetings. Employee representatives are consulted regularly on a wide range of matters affecting their current and future interests.
Future developments
Thanks to the reduced effect of COVID-19 on the general economic situation the company has been able to recover its vigour. The positive prospects that were delayed, both in terms of financial performance and increased sales volume, have finally been achieved. Moving forward, the impact of COVID-19 is expected to disappear, however the macro-economic situation represent a significant uncertainty that has been taken into account in the company plans.
Going concern
It is the duty of the directors to consider the appropriateness of the going concern basis of preparation for these financial statements and, in the current climate of general economic uncertainty, this aspect of the business review is even more important.
The company is self-funded, relying on good cash management. Taking into account forecast levels of working capital, capital expenditure and profitability, this level of funding will be sufficient to support normal trading operations.
As at 28 February 2022, the company had net current assets of £3,279,804 (2021: £2,374,678), net assets of £2,303,004 (2021: £2,332,297) and the cash at bank stands at £34,938 in hand (2021: £429,716).
Having considered the above and produced trading forecasts the directors are satisfied that Eley Hawk Limited will continue to operate as a going concern into the foreseeable future, including the next 12 months from the date of this report.
Approved by the Board on
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Eley Hawk Limited
Directors' Report for the Period from 1 April 2021 to 28 February 2022 (continued)
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Reappointment of auditors
In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Walker Hubble as auditors of the company is to be proposed at the forthcoming Annual General Meeting.
Approved by the Board on
Company secretary and director
Eley Hawk Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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 Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 101 'Reduced Disclosure Framework' ('FRS 101'). 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 apply them consistently; |
• | make judgements and accounting estimates that are reasonable and prudent; |
• | state whether FRS 101 has been followed, subject to any material departures disclosed and explained in the financial statements; and |
• | 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.
Eley Hawk Limited
Independent Auditor's Report to the Members of Eley Hawk Limited
Opinion
We have audited the financial statements of Eley Hawk Limited (the 'company') for the period from 1 April 2021 to 28 February 2022, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Statement of financial position, 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 (United Kingdom Generally Accepted Accounting Practice), including FRS 101 'Reduced Disclosure Framework'.
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 28 February 2022 and of its profit for the period 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 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.
Other significant future developments
Covid-19
In the light of the Covid-19 pandemic, we have previously reviewed the provisions and estimations provided by the company which have been made on account of the downturn in trade as a result of the Covid-19 outbreak.
After review of these factors and after reviewing the companies cash flow situation and budgets for the next six to twelve months we are satisfied that the company will continue to operate as a going concern into the foreseeable future, including the next six months from the date of signing the financial statements. The company has imposed measures to control costs, conserve available cash and has a result of these measures reported a healthy profit and loss account for the current period.
The company has a healthy balance sheet as at the 31st March 2022, and is preparing for the next six to twelve months in relation to forecasting levels of working capital, profitability and the level of funding required to continue to support the company through these difficult trading operations. The company has continued to take advantage of the government's furlough scheme in operation in relation to majority of the employees of the company during this period, ensuring that these people are not made redundant and continue to be paid their salaries in full with government assistance.
Eley Hawk Limited
Independent Auditor's Report to the Members of Eley Hawk Limited (continued)
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's 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 original financial statements were 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 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.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
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 identified material misstatements in the Strategic Report and the Directors' Report.
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 9], 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.
Eley Hawk Limited
Independent Auditor's Report to the Members of Eley Hawk Limited (continued)
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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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. 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.
Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors' use of the going concern basis of accounting, and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosure are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the company audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal controls that we identify during our audit.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Eley Hawk Limited
Independent Auditor's Report to the Members of Eley Hawk Limited (continued)
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 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.
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For and on behalf of
5 Parsons Street
West Midlands
DY1 1JJ
Eley Hawk Limited
Profit and Loss Account for the Period from 1 April 2021 to 28 February 2022
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Note |
2022 |
2021 |
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Revenue |
|
|
|
|
Cost of sales |
( |
( |
|
|
Gross profit |
|
|
|
|
Distribution costs |
( |
( |
|
|
Administrative expenses |
( |
( |
|
|
Other operating income |
|
|
|
|
Operating profit/(loss) |
|
( |
|
|
Other interest receivable and similar income |
|
|
|
|
Interest payable and similar charges |
( |
( |
|
|
(14,560) |
(9,840) |
||
|
Profit/(loss) before tax |
|
( |
|
|
Tax on profit/(loss) on ordinary activities |
( |
|
|
|
Profit for the period |
|
|
The above results were derived from continuing operations.
Eley Hawk Limited
Statement of Comprehensive Income for the Period from 1 April 2021 to 28 February 2022
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2022 |
2021 |
|
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Profit for the period |
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|
|
Total comprehensive income for the period |
|
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Eley Hawk Limited
(Registration number: 02004633)
Statement of financial position as at 28 February 2022
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Note |
28 February |
31 March |
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Fixed assets |
|||
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Tangible assets |
|
|
|
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Current assets |
|||
|
Inventories |
|
|
|
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Debtors |
|
|
|
|
Cash at bank and in hand |
|
|
|
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Tax asset |
280,916 |
178,999 |
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|
|
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||
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Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current assets |
|
|
|
|
Total assets less current liabilities |
|
|
|
|
Provisions for liabilities |
( |
( |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
|
|
|
|
Other reserves |
|
|
|
|
Profit and loss account |
|
|
|
|
Shareholders' funds |
|
|
Approved by the
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Eley Hawk Limited
Statement of Changes in Equity for the Period from 1 April 2021 to 28 February 2022
|
Share capital |
Other reserves |
Retained earnings |
Total |
|
|
At 1 April 2021 |
|
|
|
|
|
Profit for the period |
- |
- |
|
|
|
Total comprehensive income |
- |
- |
|
|
|
Dividends |
- |
- |
( |
( |
|
At 28 February 2022 |
|
|
|
|
|
Share capital |
Other reserves |
Retained earnings |
Total |
|
|
At 1 April 2020 |
|
|
|
|
|
Profit for the period |
- |
- |
|
|
|
Total comprehensive income |
- |
- |
|
|
|
Dividends |
- |
- |
( |
( |
|
At 31 March 2021 |
2 |
633,620 |
1,698,675 |
2,332,297 |
Eley Hawk Limited
Notes to the Financial Statements for the Period from 1 April 2021 to 28 February 2022
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General information |
The company is a private company limited by share capital, incorporated and domiciled in England.
The address of its registered office is:
England
These financial statements were authorised for issue by the
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Basis of preparation
These financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework, "Reduced Disclosure Framework"(FRS101). The amendments to FRS 101 (2014/15 Cycle) issued in July 2015 have been applied. The financial statements have been prepared under the historical cost convention, and in accordance with the Companies Act 2006.
FRS 101 sets out a reduced disclosure framework for a "qualifying entity" as defined by the standard which addresses the financial reporting requirements and disclosure exemptions in the individual financial statements of qualifying entities that otherwise apply the recognition, measurement and disclosure requirements of EU-adopted IFRS.
The company is a qualifying entity for the purposes of FRS 101, and Note 24 gives details of the company's ultimate parent undertaking and from where it's consolidated financial statements prepared in accordance with IFRS may be obtained.
The preparation of financial statements in conformity with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 3.
Eley Hawk Limited
Notes to the Financial Statements for the Period from 1 April 2021 to 28 February 2022 (continued)
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2 |
Accounting policies (continued) |
Summary of disclosure exemptions
In these financial statements, the company has applied the exemptions available under the FRS in respect of the following disclosures:
A cash-flow statement and related notes:
Disclosures in respect of capital management:
The effect of new but not yet effective IFRS's:
Disclosure in respect of Key Management Personnel; and
Disclosures of transactions with a management entity that provides key management services to the company;
As the consolidated financial statements of the ultimate controlling party Sofisport SA (previously Maxamcorp Holdings SL) include the equivalent disclosures, the company has taken the exemptions under FRS 101 available in respect of the following disclosures:
Certain disclosures required by IAS 36, impairment of assets, in respect of the goodwill and indefinite intangible assets;
Certain disclosures required by IFRS 13, Fair Value Measurement, and the disclosures required by IFRS 7, Financial Instrument Disclosures.
Going concern
After making enquiries the directors are satisfied that Eley Hawk Limited will continue to operate as a going concern into the foreseeable future, including the next 12 months from the date of signing the financial statements.
The company is self funded, relying on good cash management. Taking into account forecast levels of working capital, capital expenditure and profitability, this level of funding will be sufficient to support normal trading operations.
Changes in accounting policy
None of the standards, interpretations and amendments effective for the first time from 1 April 2021 have had a material effect on the financial statements.
Eley Hawk Limited
Notes to the Financial Statements for the Period from 1 April 2021 to 28 February 2022 (continued)
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2 |
Accounting policies (continued) |
Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable, and represents amounts receivable for goods supplied, stated net of discounts, returns and value added taxes. The company recognises revenue when the amount of revenue can be reliably measured; when it is probable that the future economic benefits will flow to the entity; and when specific criteria have been met for each of the company's activities, as described below.
Sale of goods
The company manufactures and sells sporting shotgun ammunition. Sales of goods are recognised when the significant risks and rewards of ownership have passed to the buyer.
Finance income and costs policy
Interest receivable and payable is recognised on an accruals basis.
Foreign currency transactions and balances
(a) Functional and presentation currency
Items included in the financial statements of the company are measured using the currency of the primary economic environment in which the company operates ('the functional currency'). The financial statements are presented in 'Pounds Sterling' (£), which is also the company's functional currency.
(b) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuations where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement. All other foreign exchange gains and losses are presented in the income statement and are taken into account in arriving at the operating profit.
Tax
The tax expense for the period 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 shareholders' funds. In this case, the tax is not recognised in other comprehensive income or directly in shareholders' funds, respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted at the Statement of financial position date in the countries where the company operates and generates taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
Eley Hawk Limited
Notes to the Financial Statements for the Period from 1 April 2021 to 28 February 2022 (continued)
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2 |
Accounting policies (continued) |
Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the reporting date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred income tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.
Tangible assets
Property, plant and equipment are stated at historic cost, net of depreciation and any provision for impairment. Historical cost includes the original purchase price of the asset and the cost attributed to bringing the asset to its working condition for intended use.
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred.
Depreciation
Depreciation is provided at the following annual rates in order to write off each asset to its residual value over its estimated useful life.
The asset's residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within the income statement and are taken into account in arriving at the operating profit.
The rates of depreciation are as follows:
|
Asset class |
Depreciation method and rate |
|
Plant and machinery |
3 to 10 years straight line |
Eley Hawk Limited
Notes to the Financial Statements for the Period from 1 April 2021 to 28 February 2022 (continued)
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2 |
Accounting policies (continued) |
Intangible assets
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less any accumulated amortisation and impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.
Negative goodwill arising on an acquisition is recognised directly in the income statement. On disposal of a subsidiary or a jointly controlled entity, the attributable amount of goodwill is included in the determination of the profit or loss recognised in the income statement on disposal.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their expected useful economic life as follows:
|
Asset class |
Amortisation method and rate |
|
Goodwill |
Straight line over expected useful life |
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand.
Trade receivables
Trade receivables are amounts due from customers for goods sold in the ordinary course of business. If collection is expected in one year or less (or in the normal operating cycle of the business if longer), they are classified as current assets. If not they are presented as non-current assets.
Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment.
Inventories
Inventories are valued at the lower of cost and net realisable value. In determining the cost of raw materials standard costing is used. Cost includes materials, direct labour and production overheads appropriate to the relevant stage of production. Net realisable value is the price at which stocks can be sold in the normal course of business, after allowing for the costs of realisation. Stocks are regularly reviewed for slow moving, obsolete and defective stock and, where necessary, provision has been made.
Trade payables
Creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Creditors are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.
Eley Hawk Limited
Notes to the Financial Statements for the Period from 1 April 2021 to 28 February 2022 (continued)
|
2 |
Accounting policies (continued) |
Provisions
A provision is recognised when the company has a legal or constructive obligation as a result of a past event; it is probable that the outflow of economic benefits will be required to settle the obligation; and a reliable estimate can be made of the amount of the obligation. If the effect is material, expected future cash flows are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. Where the company expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset but only when recovery is virtually certain. The expense relating to any provision is presented in the income statement net of any reimbursement. Where discounting is used, the increase in the provision due to unwinding the discount is recognised as a future cost.
Share capital
Ordinary shares are classified as equity. The company does not have any preference shares.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the company’s financial statements in the period in which the dividends are approved by the company’s shareholders.
Defined contribution pension obligation
The company operates a defined contribution pension scheme. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. The company has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
The company pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis. The company has no further payment obligations once the contributions have been paid. The contributions are recognised as employee benefit expense when they are due. Contributions payable for the year are charged in the income statement.
Eley Hawk Limited
Notes to the Financial Statements for the Period from 1 April 2021 to 28 February 2022 (continued)
|
Critical accounting judgements and key sources of estimation uncertainty |
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
Inventory provisioning
The company considers the recoverability of the cost of inventory and the associated provisioning required. When assessing the need for an inventory provision, management considers the nature and condition of the inventory, as well as applying assumptions around anticipated saleability of finished goods and future usage of raw materials. See Note 15 below for the carrying amount of the inventory and associated provision.
Eley Hawk Limited
Notes to the Financial Statements for the Period from 1 April 2021 to 28 February 2022 (continued)
|
Revenue |
The analysis of the company's turnover for the period from continuing operations is as follows:
|
2022 |
2021 |
|
|
Sale of goods |
|
|
|
Other operating income |
The analysis of the company's other operating income for the period is as follows:
|
2022 |
2021 |
|
|
Government grants |
|
|
|
Operating profit/(loss) |
Arrived at after charging/(crediting)
|
2022 |
2021 |
|
|
Depreciation expense |
|
|
|
Operating lease expense - property |
|
|
|
Operating lease expense - plant and machinery |
|
|
|
Operating lease expense - other |
|
|
|
Interest receivable and similar income |
|
2022 |
2021 |
|
|
Interest receivable on loans made to group companies |
- |
|
|
Other finance income |
|
|
|
|
|
|
Interest payable and similar expenses |
|
2022 |
2021 |
|
|
Foreign exchange (gains) / losses |
|
|
Eley Hawk Limited
Notes to the Financial Statements for the Period from 1 April 2021 to 28 February 2022 (continued)
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2022 |
2021 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
Other employee expense |
|
|
|
|
|
The average number of persons employed by the company (including directors) during the period, analysed by category was as follows:
|
2022 |
2021 |
|
|
Production |
|
|
|
Administration and support |
|
|
|
Other departments |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the period was as follows:
|
2022 |
2021 |
|
|
Remuneration |
|
|
During the year ended 31st March 2022 the company has paid the above disclosed figure to the Directors. The company acknowledges that additional remuneration has been provided by related companies for Director's duties. It is not practical to allocate or split the directors' remuneration for qualifying services and services to this entity are deemed immaterial. However the emoluments for these directors are accounted for in Maxamcorp Holdings SA's financial statements.
|
Auditors' remuneration |
|
2022 |
2021 |
|
|
Audit of the financial statements |
|
|
Eley Hawk Limited
Notes to the Financial Statements for the Period from 1 April 2021 to 28 February 2022 (continued)
|
Income tax |
Tax charged/(credited) in the profit and loss account
|
2022 |
2021 |
|
|
Current taxation |
||
|
UK corporation tax adjustment to prior periods |
|
( |
|
Deferred taxation |
||
|
Arising from origination and reversal of temporary differences |
|
|
|
Arising from changes in tax rates and laws |
- |
( |
|
Total deferred taxation |
|
|
|
Tax expense/(receipt) in the profit and loss account |
|
( |
The tax on profit before tax for the period is the same as the standard rate of corporation tax in the UK (2021 - the same as the standard rate of corporation tax in the UK) of 19% (2021 - 19%).
The differences are reconciled below:
|
2022 |
2021 |
|
|
Profit/(loss) before tax |
|
( |
|
Corporation tax at standard rate |
|
( |
|
Increase/(decrease) in current tax from adjustment for prior periods |
|
( |
|
Increase from effect of different UK tax rates on some earnings |
|
- |
|
Deferred tax credit from unrecognised temporary difference from a prior period |
( |
( |
|
Other tax effects for reconciliation between accounting profit and tax expense |
- |
|
|
Total tax charge/(credit) |
|
( |
Eley Hawk Limited
Notes to the Financial Statements for the Period from 1 April 2021 to 28 February 2022 (continued)
|
12 |
Income tax (continued) |
Deferred tax
Deferred tax assets and liabilities
|
2022 |
Liability |
|
Accelerated tax depreciation |
( |
|
2021 |
Liability |
|
Accelerated tax depreciation |
( |
Deferred tax movement during the period:
|
At 1 April 2021 |
Recognised in profit and loss account |
At |
|
|
Accelerated tax depreciation |
( |
( |
( |
Deferred tax movement during the prior year:
|
At 1 April 2020 |
Recognised in income |
At |
|
|
Accelerated tax depreciation |
( |
( |
( |
Deferred taxes at the balance sheet date have been measured using the enacted rates and reflected in these financial statements.
There are £Nil of deductible temporary differences (2021 - £
Eley Hawk Limited
Notes to the Financial Statements for the Period from 1 April 2021 to 28 February 2022 (continued)
|
Intangible assets |
|
Goodwill |
Total |
|
|
Cost or valuation |
||
|
At 1 April 2021 |
|
|
|
At 28 February 2022 |
|
|
|
Amortisation |
||
|
At 1 April 2021 |
|
|
|
At 28 February 2022 |
|
|
|
Carrying amount |
||
|
At 28 February 2022 |
- |
- |
Eley Hawk Limited
Notes to the Financial Statements for the Period from 1 April 2021 to 28 February 2022 (continued)
|
Tangible assets |
|
Land and buildings |
Plant and machinery |
Total |
|
|
Cost or valuation |
|||
|
At 1 April 2021 |
|
|
|
|
Additions |
- |
|
|
|
At 28 February 2022 |
|
|
|
|
Depreciation |
|||
|
At 1 April 2021 |
|
|
|
|
Charge for the period |
- |
|
|
|
At 28 February 2022 |
|
|
|
|
Carrying amount |
|||
|
At 28 February 2022 |
- |
|
|
|
At 31 March 2021 |
- |
|
|
|
Inventories |
|
28 February |
31 March |
|
|
Raw materials and consumables |
|
|
|
Work in progress |
|
|
|
Finished goods and goods for resale |
|
|
|
|
|
The cost of Inventories recognised as an expense in the period amounted to £
There is no significant difference between the replacement cost of inventories and their carrying amounts.
Eley Hawk Limited
Notes to the Financial Statements for the Period from 1 April 2021 to 28 February 2022 (continued)
|
Trade and other debtors |
|
28 February |
31 March |
|
|
Trade and other receivables |
|
|
|
Provision for impairment of Trade and other receivables |
( |
( |
|
Net Trade and other receivables |
|
|
|
Prepayments |
|
|
|
|
|
The company's exposure to credit and market risks, including maturity analysis, relating to trade and other receivables is disclosed in the financial risk review note.
|
Cash at bank and in hand |
|
28 February |
31 March |
|
|
Cash on hand |
|
|
|
Cash at bank |
|
|
|
|
|
|
Trade and other payables |
|
28 February |
31 March |
|
|
Trade creditors |
|
|
|
Accrued expenses |
|
|
|
Amounts due to related parties |
- |
|
|
Social security and other taxes |
|
|
|
Other Trade creditors |
|
|
|
|
|
Eley Hawk Limited
Notes to the Financial Statements for the Period from 1 April 2021 to 28 February 2022 (continued)
|
Loans and borrowings |
Other borrowings
Lloyds Bank Plc holds a fixed charge over certain items of plant and machinery to secure any monies due to Lloyds Bank Plc.
The amount owed to group undertakings were unsecured and repayable on demand, with interest charged at 4.25% (2021).
|
Other provisions |
|
Dilapidations |
Total |
|
|
At 1 April 2021 |
|
|
|
Increase (decrease) in existing provisions |
|
|
|
At 28 February 2022 |
|
|
|
Non-current liabilities |
|
|
|
|
||
Eley Hawk Limited
Notes to the Financial Statements for the Period from 1 April 2021 to 28 February 2022 (continued)
|
Share capital |
Allotted, called up and fully paid shares
|
28 February |
31 March |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
2 |
|
2 |
Allotted, called up and fully paid shares
|
28 February |
31 March |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
2 |
|
2 |
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution (stakeholder) pension scheme. The liability of the company is limited to employer's contributions for members of this scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge for the period represents contributions payable by the company to the scheme and amounted to £24,672 (2021 - £27,335).
|
Dividends |
|
28 February |
31 March |
|||
|
£ |
£ |
|||
|
Interim dividend of £ |
306,421 |
450,000 |
Eley Hawk Limited
Notes to the Financial Statements for the Period from 1 April 2021 to 28 February 2022 (continued)
|
Related party transactions |
The company is a wholly owned subsidiary of Sofisport SA and as such the company has taken advantage of the exemption under paragraph 8 (k) of FRS 101 not to disclose transactions with fellow wholly owned subsidiaries. The consolidated financial statements of the ultimate controlling party, Sofisport, within which this company is included, can be obtained from 57 Rue Pierre Charron 75008, Paris, Ile De France. Sofisport SA acquired Eley Hawk Limited from the previous ultimate controlling party, Maxamcorp Holding SL on the 1st March 2022.
|
Parent and ultimate parent undertaking |
The most senior parent entity producing publicly available financial statements is