J Hamilton & Co (Lurgan) Ltd - Limited company accounts 22.3

REGISTERED NUMBER: NI006169 (Northern Ireland)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 March 2022

for

James Hamilton & Company (Lurgan) Ltd

Page

Company Information

1

Strategic Report

3

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

17

DIRECTORS:

Mr Alex Hamilton

Mrs Joan Rona Murray Ralston Hamilton

Mr Keith Alistair Hamilton

Mr Alan James Hamilton

SECRETARY:

Mr Alex Hamilton

REGISTERED OFFICE:

Quaker Buildings

High Street

Lurgan

Craigavon

Co. Armagh

BT66 8BB

BUSINESS ADDRESS:

50 Millennium Way

Lurgan

Craigavon

Co. Armagh

BT66 8DH

REGISTERED NUMBER:

NI006169 (Northern Ireland)

AUDITORS:

McCleary & Company Ltd

Chartered Accountants and Registered Auditors

Quaker Buildings

High Street

Lurgan

Craigavon

Co. Armagh

BT66 8BB

BANKERS:

Danske Bank

39 Market Street

Lurgan

Co. Armagh

BT66 6AB

SOLICITORS:

Redman Solicitors Limited

15 Windsor Avenue

Lurgan

Co. Armagh

BT67 9BG

The directors present their strategic report for the year ended 31 March 2022.

REVIEW OF BUSINESS

The results for the year show a pre-tax profit of £1,065,229, compared to £822,991 in the previous year.

Gross profit for the year was 28.67% (2021: 28.31%). The company has net funds of £1,617,722 (2021: net funds £1,082,588).

The external commercial environment is expected to be very challenging in the year to 31 March 2023, however we remain confident that we will maintain close to our current level of performance in the future.

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and the execution of the company's strategy are subject to a number of risks. The key business risks and uncertainties affecting the business are considered to relate to competition and the general economic climate.

ON BEHALF OF THE BOARD:

Mr Keith Alistair Hamilton - Director

21 October 2022

The directors present their report with the financial statements of the company for the year ended 31 March 2022.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the manufacture of printed stationery and folding boxes, the wholesale distribution of paper and industrial disposable wipes, the retail distribution of office stationery and equipment and the distribution of bearings to industry.

DIVIDENDS

An interim dividend of £0.79 per share was paid on 1 October 2021. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 March 2022 will be £ 3,952 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2021 to the date of this report.

Mr Alex Hamilton

Mrs Joan Rona Murray Ralston Hamilton

Mr Keith Alistair Hamilton

Mr Alan James Hamilton

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, McCleary & Company Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr Keith Alistair Hamilton - Director

21 October 2022

Opinion

We have audited the financial statements of James Hamilton & Company (Lurgan) Ltd (the 'company') for the year ended 31 March 2022 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 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.

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.

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.

Having considered the nature of the business and the sector in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to breaches of health and safety laws and the potential for Fraud. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered the laws and regulations that do not have a direct impact on the preparation of the financial statements but compliance with which may be fundamental to the Company's ability to operate, such as the Companies Act 2006. We evaluated the management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to fixed asset valuation and misstatement of inter-company balances. Audit procedures performed included:

- Assessment of compliance with key laws and regulations;

- Enquiry of those charged with management including any known or suspected instances of non-compliance with laws and regulations, potential litigation and fraud;

- Identifying and testing journal entries for appropriateness, evaluating the rationale for significant transactions outside what is normal for the company and assessing whether the judgments made in making accounting estimates are indicative of potential bias, in order to assess the risk of fraud through management override of controls;

- Analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- Challenging assumptions and judgments made by management in significant accounting estimates;

- Reviewing the disclosures in the financial statements against the specific legal requirements.

We communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

There are inherent limitations in the audit procedures outlined above. We are less likely to become aware of instances of non compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment.

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.

Warren McCleary (Senior Statutory Auditor)

for and on behalf of McCleary & Company Ltd

Chartered Accountants and Registered Auditors

Quaker Buildings

High Street

Lurgan

Craigavon

Co. Armagh

BT66 8BB

21 October 2022

McCleary & Company Ltd.

TURNOVER

3

13,586,057

11,435,498

Cost of sales

9,691,454

8,198,445

GROSS PROFIT

3,894,603

3,237,053

Administrative expenses

3,073,296

2,897,268

821,307

339,785

Other operating income

275,511

522,734

OPERATING PROFIT

6

1,096,818

862,519

Income from fixed asset investments

1,622

2,222

Interest receivable and similar income

1,513

1,711

3,135

3,933

1,099,953

866,452

Interest payable and similar expenses

7

34,724

43,461

PROFIT BEFORE TAXATION

1,065,229

822,991

Tax on profit

8

185,189

138,303

PROFIT FOR THE FINANCIAL YEAR

880,040

684,688

PROFIT FOR THE YEAR

880,040

684,688

OTHER COMPREHENSIVE INCOME

Revaluation of listed investments

(9,758

)

7,280

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

(9,758

)

7,280

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

870,282

691,968

FIXED ASSETS

Intangible assets

10

-

15,000

Tangible assets

11

3,270,641

3,431,024

Investments

12

36,404

44,540

Investment property

13

675,000

675,000

3,982,045

4,165,564

CURRENT ASSETS

Stocks

14

2,085,498

1,929,420

Debtors

15

5,940,359

5,521,328

Cash at bank and in hand

1,617,722

1,082,588

9,643,579

8,533,336

CREDITORS

Amounts falling due within one year

16

2,738,006

2,571,232

NET CURRENT ASSETS

6,905,573

5,962,104

TOTAL ASSETS LESS CURRENT LIABILITIES

10,887,618

10,127,668

CREDITORS

Amounts falling due after more than one year

17

(430,992

)

(542,761

)

PROVISIONS FOR LIABILITIES

21

(89,706

)

(84,317

)

NET ASSETS

10,366,920

9,500,590

CAPITAL AND RESERVES

Called up share capital

22

5,003

5,003

Revaluation reserve

23

8,363

8,363

Retained earnings

23

10,353,554

9,487,224

SHAREHOLDERS' FUNDS

10,366,920

9,500,590

The financial statements were approved by the Board of Directors and authorised for issue on 21 October 2022 and were signed on its behalf by:

Mr Keith Alistair Hamilton - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2020

5,003

8,799,208

8,363

8,812,574

Changes in equity

Dividends

-

(3,952

)

-

(3,952

)

Total comprehensive income

-

691,968

-

691,968

Balance at 31 March 2021

5,003

9,487,224

8,363

9,500,590

Changes in equity

Dividends

-

(3,952

)

-

(3,952

)

Total comprehensive income

-

870,282

-

870,282

Balance at 31 March 2022

5,003

10,353,554

8,363

10,366,920

Cash flows from operating activities

Cash generated from operations

1

972,419

1,181,241

Interest paid

(28,080

)

(29,813

)

Interest element of hire purchase payments paid

(6,644

)

(13,648

)

Tax paid

(182,378

)

(86,641

)

Net cash from operating activities

755,317

1,051,139

Cash flows from investing activities

Purchase of intangible fixed assets

-

(30,000

)

Purchase of tangible fixed assets

(171,494

)

(110,499

)

Purchase of fixed asset investments

(1,622

)

(2,222

)

Sale of tangible fixed assets

22,850

193,984

Interest received

1,513

1,711

Dividends received

1,622

2,222

Net cash from investing activities

(147,131

)

55,196

Cash flows from financing activities

Loan repayments in year

(54,654

)

(51,641

)

Capital repayments in year

(50,885

)

(256,182

)

Amount introduced by directors

36,439

41,064

Equity dividends paid

(3,952

)

(3,952

)

Net cash from financing activities

(73,052

)

(270,711

)

Increase in cash and cash equivalents

535,134

835,624

Cash and cash equivalents at beginning of year

2

1,082,588

246,964

Cash and cash equivalents at end of year

2

1,617,722

1,082,588

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.3.22

31.3.21

£

£

Profit before taxation

1,065,229

822,991

Depreciation charges

321,717

372,974

Loss on disposal of fixed assets

2,310

62,924

Finance costs

34,724

43,461

Finance income

(3,135

)

(3,933

)

1,420,845

1,298,417

Increase in stocks

(156,078

)

(334,364

)

(Increase)/decrease in trade and other debtors

(419,494

)

66,046

Increase in trade and other creditors

127,146

151,142

Cash generated from operations

972,419

1,181,241

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2022

31.3.22

1.4.21

£

£

Cash and cash equivalents

1,617,722

1,082,588

Year ended 31 March 2021

31.3.21

1.4.20

£

£

Cash and cash equivalents

1,082,588

246,964

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.21

Cash flow

At 31.3.22

£

£

£

Net cash

Cash at bank and in hand

1,082,588

535,134

1,617,722

1,082,588

535,134

1,617,722

Debt

Finance leases

(155,815

)

50,885

(104,930

)

Debts falling due within 1 year

(53,235

)

(3,623

)

(56,858

)

Debts falling due after 1 year

(437,831

)

58,277

(379,554

)

(646,881

)

105,539

(541,342

)

Total

435,707

640,673

1,076,380

1.	STATUTORY INFORMATION

James Hamilton & Company (Lurgan) Ltd is a private company, limited by shares , registered in Northern Ireland. 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 as modified by the revaluation of certain assets.

Turnover

Turnover represents the total invoice value, excluding value added tax, of sales made during the year and derives from the provision of goods and services falling within the company's ordinary activities.

Goodwill

Goodwill arising on business combinations is capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its useful life. The period chosen for writing off goodwill is two years. The reason for choosing this period is due to the expected useful life of the customer list benefits. Provision is made for any impairment.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

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

Freehold property

-

2% on cost

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

20% on cost and 15% on reducing balance

Motor vehicles

-

33% on reducing balance

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 and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

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

Assets acquired under finance leases are capitalised and depreciated over the shorter of the lease term and the expected useful life of the asset. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding lease liability using the effective interest method. The related obligations, net of future finance charges, are included in creditors.

Where goods are sold using finance leases, the entity recognises turnover from the sale of goods and the rights to receive future lease payments as a debtor. Minimum lease payments are apportioned between finance income and the reduction of the lease debtor with finance income allocated so as to produce a constant periodic rate of interest on the net investment in the finance lease.

Rentals payable and receivable under operating leases are charged to the profit and loss account 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.

Government grants

Capital grants and other contributions received towards the cost of tangible fixed assets are included in creditors as deferred income and credited to the profit and loss account over the life of the asset. Revenue grants are credited to the profit and loss account so as to match them with the expenditure to which they relate.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

31.3.22

31.3.21

£

£

United Kingdom

12,689,965

10,799,480

Europe

896,092

636,018

13,586,057

11,435,498

4.	EMPLOYEES AND DIRECTORS

31.3.22

31.3.21

£

£

Wages and salaries

2,403,881

2,182,811

Social security costs

239,541

222,048

Other pension costs

99,528

90,041

2,742,950

2,494,900

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

31.3.22

31.3.21

Administrative staff

38

35

Other

52

50

90

85

5.	DIRECTORS' EMOLUMENTS

31.3.22

31.3.21

£

£

Directors' remuneration

188,846

184,079

Directors' pension contributions to money purchase schemes

21,600

21,600

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

Money purchase schemes

2

2