R.H._HALL_(MICROWAVE)_LIM - Accounts

The directors present their annual report and financial statements for the year ended 31 March 2022.

The principal activity of the company in the year under review remains consistent in terms of being exclusive National Distributors of foodservice equipment for several key brands including our own Brand Hallco, we are also authorised national suppliers for most other leading brands of foodservice equipment to the hospitality industry.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The company continues to invest heavily into the entire business to develop and grow with a lot of attention and investment to our own products including our fabrication manufacturing division providing bespoke build services to the catering industry as well as general fabrication services to all market sectors. Over the past year we have continued to diversify our business and put more attention into other sectors these being retail and government supply markets.

We continue to build on brand R H Hall work to our vision of being the leading foodservice solutions supplier and to drive innovation through home produced and bought in innovative foodservice equipment products on an exclusive basis. Our foodservice solutions approach continues to develop well, and we continue to increase and diversify our customer base adding to our portfolio many National acclaimed branded high street foods on the go stores. A one stop foodservice solution with innovation added in has great and unique appeal and we continue to drive this part of our business positively forward.

The continued investment into our state of the art in house development kitchen provides further added value plus a big point of difference and creates a great platform of opportunities to work with national food suppliers / development chefs in creating and developing menus with existing and potential customers using our equipment. Our attention to maintaining and improving our renowned sound, efficient and reliable customer service continues to be a real focus and target point.

This trading year has been positive especially given the extremely difficult trading and economic conditions that our business and core market sectors continue to deal with.

Our attention and planning to this situation is to remain focused with attention to controlling our overheads, diversify, adapt, and look at concentrating our efforts towards markets that are more resilient and show signs of future growth. We have made some excellent in roads with our innovative iWave patient meal on demand solutions. This unique offering is gaining good pace and we expect this solution to remain a core supply offering to our product portfolio over the next 12 months and beyond. We continue to concentrate on our core values and maintain the best service that we can to our customers.

Our continued attention and investment toward management and staff development, national and regional roadshows/exhibitions, advertising, and foodservice events will help us to remain at the forefront of our industry and ensuring that the strong momentum and R H Hall brand identity exposure continues to be well represented.

Our continued plan is to grow and develop the business positively and profitably with sound attention to R&D and our own IP and to maintain and build strong financial foundations and customer supporting services to aid our continued good future business growth plans. Year ending 2023 will be another progressive year and we are committed and confident that when we get through these tough economic conditions, we will come out stronger having diversified into more resilient and emerging trading markets and adapted to meet such changes that need to be dealt with and positively.

Strategically, organisational wise and financially we are well placed to maximise business opportunities going forward and as it is hoped that once we are all clear of the changes that Covid – 19 had imposed both with the positives and the negatives along with such continued economic pressures to deal with we can start to plan more strategically and invest more confidently for the mid and long term of the business.

The company is heavily reliant on the continued need of the food service equipment market to expand and upgrade its equipment. At present there is no significant movement in the market. Growth and development therefore can only be achieved by increasing market share and through innovation/added value which the company is working on. The directors believe the market is price sensitive however innovative products and services can add good value to the market and help to grow the business profitability. The directors continue to monitor cost levels to ensure an adequate return is received. The company has and will continue to invest and explore food service innovation and added value to catering products and services throughout UK, European and worldwide markets.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of R.H. Hall (Microwave) Limited for the year ended 31 March 2022 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and the related notes from the company’s accounting records and from information and explanations you have given us.

This report is made solely to the Board of Directors of R.H. Hall (Microwave) Limited, as a body, in accordance with the terms of our engagement letter dated 1 October 2020. Our work has been undertaken solely to prepare for your approval the financial statements of R.H. Hall (Microwave) Limited and state those matters that we have agreed to state to the Board of Directors of R.H. Hall (Microwave) Limited, as a body, in this report. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than R.H. Hall (Microwave) Limited and its Board of Directors as a body, for our work or for this report.

It is your duty to ensure that R.H. Hall (Microwave) Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of R.H. Hall (Microwave) Limited. You consider that R.H. Hall (Microwave) Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit of the financial statements of R.H. Hall (Microwave) Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 March 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

R.H. Hall (Microwave) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Suites B & D, Burnham Yard, Beaconsfield Bucks, HP9 2JH. The principal place of business is Hallco House, Beacon Court, Pitstone Green Business Park, Pitstone, Bedfordshire, United Kingdom, LU7 9GY.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover represents net invoiced sales of goods and services, excluding value added tax and adjusted for accrued revenue calculated by reference to the fair value of services performed up to the balance sheet date but not invoiced.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

Warranty/WEEE compliance provisions

The company gives warranties at the time of sale to purchasers of its products. Under the terms of the warranty given the company undertakes to make good by repair or replacement product defects arising during the period covered by the warranty. A provision is recognised in the financial statements for the best estimate of future costs of repairing/replacing under the warranty, products sold up to the balance sheet date.

A provision is also recognised in the financial statements for the best estimate of the future costs of the company's compliance with the WEEE Regulations in connection with products sold up to the balance sheet date.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination 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.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

In the opinion of the Directors, there are no specific key judgements or areas of estimation to disclose.

The average monthly number of persons employed by the company during the year was:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2021 - 3)

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

Factors that may affect future tax charges

The Chancellor of the Exchequer announced as part of the Budget 2021 on 3 March 2021 that the UK corporation tax rate will increase to 25% from 1 April 2023. No deferred tax balance has been included in the financial statements as it is deemed immaterial.

If freehold property were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:

• Cost: £2,200,132 (2021: £2,198,332)

• Accumulated depreciation: £Nil (2021: £Nil)

• Carrying value: £2,200,132 (2021: £2,198,332)

Freehold property was valued on an open market basis on 2 April 2019 by Aitchison Raffety Property Consultants.

Impairment of stocks included in the statement of comprehensive income was £13,645 (2021: reversed by £68,028).

During the year end 31 March 2021, the company took out a loan of £700,000 incurring interest at 2.5% above the base rate from July 2021. Note that interest was being charged at 2% above the base rate at 31 March 2022.

Interest was being charged on the overdraft at 2% at 31 March 2022 (2021: interest free).

Included above are amounts relating to an invoice discounting facility totalling £496,548 (2021: £743,391). This facility is secured against the assets of the business by way of a debenture and the facility incurs interest rates of 1.65% (2021: 1.65%).

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. Unpaid contributions outstanding at the year end, included in other creditors, totalled £Nil (2021: £Nil).

All classes of shares have equal voting rights and rank equally in a winding up. The company has the option to declare differential dividends for each class of share.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Expenses in relation to land and buildings operating leases totalled £106,142 (2021: £97,949).

Expenses in relation to other operating leases totalled £53,915 (2021: £46,986).

Dividends totalling £178,500 (2021 - £130,000) were declared in the year in respect of shares held by the company's directors.

The remuneration of key management personnel is as follows.

The ultimate controlling party for the current and preceding year was R S Hall.