YH Holdings (UK) Limited - Limited company accounts 20.1

REGISTERED NUMBER: 09411110 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

FOR

YH HOLDINGS (UK) LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Income Statement

9

Consolidated Other Comprehensive Income

10

Consolidated Statement of Financial Position

11

Company Statement of Financial Position

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Statement of Cash Flows

15

Notes to the Consolidated Statement of Cash Flows

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

M J Hunter

A E Yendall

REGISTERED OFFICE:

75 Park Lane

Croydon

Surrey

CR9 1XS

REGISTERED NUMBER:

09411110 (England and Wales)

AUDITORS:

DSK Partners LLP

Chartered Accountants and Statutory Auditors

75 Park Lane

Croydon

Surrey

CR9 1XS

The directors present their strategic report of the company and the group for the year ended 31 March 2021.

REVIEW OF BUSINESS

The results for the year and financial position of the group are shown in the audited financial statements.

The group has experienced continued sales growth with turnover increasing by 6.16% from £13.8 million to £14.7 million. During the same time period, operating profit increased by 8.22% from £7.3 million to £7.9 million.

The key financial performance indicators are as follows:

2021

2020

Variance

Variance

£

£

%

£

Turnover

14.7 million

13.8 million

6.16%

0.9 million

Monthly turnover

1.2 million

1.1 million

9.09%

0.07 million

Operating expenses

6.8 million

6.6 million

3.03%

0.2 million

Operating profit

7.9 million

7.3 million

8.22%

0.6 million

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks faced by the group include exposure to bad debts, reduction in new expert appointments and staffing risks related to retaining highly specialized consulting staff. The group manages its bad debt exposure through prompt billing and continuous monitoring of receivables and collections. The group continues to solidify its reputation in the marketplace by expanding its established network of law firms and corporate clients. Recruitment, staff retention and professional development are treated as a priority at all levels.

FUTURE DEVELOPMENT

The group plans to continue its strategy of organic growth and is actively developing a second generation of expert witnesses and work-winners to maintain and expand the flow of expert appointments in the long-term.

ON BEHALF OF THE BOARD:

A E Yendall - Director

20 December 2021

The directors present their report with the financial statements of the company and the group for the year ended 31 March 2021.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of construction disputes and project advisory consultancy services.

DIVIDENDS

The total distribution of dividends for the year ended 31 March 2021 will be £ 3,900,000 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2020 to the date of this report.

M J Hunter

A E Yendall

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, DSK Partners LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

A E Yendall - Director

20 December 2021

Opinion

We have audited the financial statements of YH Holdings (UK) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2021 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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 group's and of the parent company affairs as at 31 March 2021 and of the group's 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 group 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 group's and the parent 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 Group 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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent 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 group or the parent 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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 key laws and regulations we have considered in this context included the Companies Act 2006, pension and tax legislation. In addition, we have considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- Using our general commercial and sector experience and through discussions with the directors and management, we identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements as well as those arising from management's own assessment of the risks that irregularities may occur either as a result of fraud or error.

- We examined the company's regulatory and legal correspondence and discussed with the directors and management any known or suspected instances of fraud or non-compliance with laws and regulations.

- We communicated 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.

- In addressing the risk of management override of controls, we tested the appropriateness of journal entries. We also challenged assumptions and judgements made by management in their significant accounting estimates and judgements.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Romit Basu FCA (Senior Statutory Auditor)

for and on behalf of DSK Partners LLP

Chartered Accountants and Statutory Auditors

75 Park Lane

Croydon

Surrey

CR9 1XS

20 December 2021

TURNOVER

14,726,991

13,872,319

Administrative expenses

6,824,252

6,611,383

OPERATING PROFIT

4

7,902,739

7,260,936

Interest receivable and similar income

2,453

435

7,905,192

7,261,371

Interest payable and similar expenses

5

140

-

PROFIT BEFORE TAXATION

7,905,052

7,261,371

Tax on profit

6

1,534,828

1,414,858

PROFIT FOR THE FINANCIAL YEAR

6,370,224

5,846,513

Profit attributable to:

Owners of the parent

6,370,224

5,846,513

PROFIT FOR THE YEAR

6,370,224

5,846,513

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

6,370,224

5,846,513

Total comprehensive income attributable to:

Owners of the parent

6,370,224

5,846,513

FIXED ASSETS

Tangible assets

9

222,626

290,309

Investments

10

-

-

222,626

290,309

CURRENT ASSETS

Debtors

11

6,192,826

5,390,917

Cash at bank

6,593,879

4,720,469

12,786,705

10,111,386

CREDITORS

Amounts falling due within one year

12

2,466,719

2,322,041

NET CURRENT ASSETS

10,319,986

7,789,345

TOTAL ASSETS LESS CURRENT LIABILITIES

10,542,612

8,079,654

PROVISIONS FOR LIABILITIES

14

24,434

31,700

NET ASSETS

10,518,178

8,047,954

CAPITAL AND RESERVES

Called up share capital

15

1,000

1,000

Retained earnings

16

10,517,178

8,046,954

SHAREHOLDERS' FUNDS

10,518,178

8,047,954

The financial statements were approved by the Board of Directors and authorised for issue on 20 December 2021 and were signed on its behalf by:

A E Yendall - Director

FIXED ASSETS

Tangible assets

9

-

-

Investments

10

928

928

928

928

CURRENT ASSETS

Debtors

11

6,267

5,721

Cash at bank

10,554

10,687

16,821

16,408

CREDITORS

Amounts falling due within one year

12

12,984

13,042

NET CURRENT ASSETS

3,837

3,366

TOTAL ASSETS LESS CURRENT LIABILITIES

4,765

4,294

CAPITAL AND RESERVES

Called up share capital

15

1,000

1,000

Retained earnings

3,765

3,294

SHAREHOLDERS' FUNDS

4,765

4,294

Company's profit for the financial year

3,900,471

6,140,246

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

The financial statements were approved by the Board of Directors and authorised for issue on 20 December 2021 and were signed on its behalf by:

A E Yendall - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2019

1,000

8,340,441

8,341,441

Changes in equity

Dividends

-

(6,140,000

)

(6,140,000

)

Total comprehensive income

-

5,846,513

5,846,513

Balance at 31 March 2020

1,000

8,046,954

8,047,954

Changes in equity

Dividends

-

(3,900,000

)

(3,900,000

)

Total comprehensive income

-

6,370,224

6,370,224

Balance at 31 March 2021

1,000

10,517,178

10,518,178

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2019

1,000

3,048

4,048

Changes in equity

Dividends

-

(6,140,000

)

(6,140,000

)

Total comprehensive income

-

6,140,246

6,140,246

Balance at 31 March 2020

1,000

3,294

4,294

Changes in equity

Dividends

-

(3,900,000

)

(3,900,000

)

Total comprehensive income

-

3,900,471

3,900,471

Balance at 31 March 2021

1,000

3,765

4,765

Cash flows from operating activities

Cash generated from operations

1

7,210,949

8,436,033

Interest paid

(140

)

-

Tax paid

(1,424,541

)

(1,608,162

)

Net cash from operating activities

5,786,268

6,827,871

Cash flows from investing activities

Purchase of tangible fixed assets

(15,311

)

(311,411

)

Interest received

2,453

435

Net cash from investing activities

(12,858

)

(310,976

)

Cash flows from financing activities

Equity dividends paid

(3,900,000

)

(6,140,000

)

Net cash from financing activities

(3,900,000

)

(6,140,000

)

Increase in cash and cash equivalents

1,873,410

376,895

Cash and cash equivalents at beginning of year

2

4,720,469

4,343,574

Cash and cash equivalents at end of year

2

6,593,879

4,720,469

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

2021

2020

£

£

Profit before taxation

7,905,052

7,261,371

Depreciation charges

82,994

91,208

Finance costs

140

-

Finance income

(2,453

)

(435

)

7,985,733

7,352,144

(Increase)/decrease in trade and other debtors

(801,908

)

499,615

Increase in trade and other creditors

27,124

584,274

Cash generated from operations

7,210,949

8,436,033

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 March 2021

31.3.21

1.4.20

£

£

Cash and cash equivalents

6,593,879

4,720,469

Year ended 31 March 2020

31.3.20

1.4.19

£

£

Cash and cash equivalents

4,720,469

4,343,574

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.20

Cash flow

At 31.3.21

£

£

£

Net cash

Cash at bank

4,720,469

1,873,410

6,593,879

4,720,469

1,873,410

6,593,879

Total

4,720,469

1,873,410

6,593,879

1.	STATUTORY INFORMATION

YH Holdings (UK) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

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.

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the company and its subsidiaries, Yendall Hunter Limited, Yendall Hunter Corp., Yendall Hunter (NZ) Limited, for the financial year ended 31st March 2021. A separate income and expenditure account dealing with the results of the holding company only has not been presented, as permitted by Section 408 of the Companies Act 2006.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Going concern

Since 31 December 2019, the spread of COVID-19 has severely impacted many local economies around the globe. In many countries, businesses are being forced to cease or limit operations for long or indefinite periods of time. In the UK this began on 23rd March 2020. Measures taken to contain the spread of the virus, including travel bans, quarantines, social distancing, and closures of non-essential services have triggered significant disruptions to businesses worldwide, resulting in an economic slowdown. Governments and central banks have responded with monetary and fiscal interventions to stabilise economic condition. The group is likely to be affected in the form of loss of income, however it will benefit from savings in costs and therefore this will not significantly impact the entity's financial position.

The group has determined that these events are non-adjusting subsequent events. Accordingly, the financial position and results of operations as of and for the year ended 31 March 2021 have not been adjusted to reflect their impact. The duration and impact of the COVID-19 pandemic, as well as the effectiveness of government and central bank responses, remains unclear at this time. It is not possible to reliably estimate the duration and severity of these consequences, as well as their impact on the financial position and results of the group for future periods.

As part of the directors' assessment of going concern, they have prepared detailed cash flow and profit and loss forecasts for the next 12 months. The forecasts have been prepared on an appropriate basis, taking into account the current economic conditions that exist.

After making appropriate enquires, the directors have a reasonable expectation that the group has adequate resources to enable it to continue in operational existence for the foreseeable future. They believe it is appropriate to prepare the accounts on a going concern basis.

Turnover

Turnover is the amount derived from ordinary activities, and is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the rendering of services.

Turnover from the rendering of services is recognised by the value of services provided under contracts to the extent that there is a right to consideration and is recorded at the value of the consideration due. Where a contract has only been partially completed at the statement of financial position date, turnover payments are received from clients in advance of services provided, the amounts are recorded as deferred income and included as part of the creditors due within one year. Unbilled revenue on individual client assignments is included as unbilled amounts for client work within debtors.

Tangible fixed assets

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

Tangible fixed assets held for the company's own use are stated at cost less accumulated depreciation and accumulated impairment losses.

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

Plant and machinery

20% straight line

Fixtures and fittings

20% straight line

Computer equipment

33.33% straight line

Leasehold improvements

20% straight line

At each statement of financial position date, the company reviews the carrying amount of its tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an 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 the asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial positionstatement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position 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.

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Trade and other debtors

Trade and other debtors that are receivable within one year and do not constitute a financing transaction are recorded at the undiscounted amount expected to be received, net of impairment.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.

3.	EMPLOYEES AND DIRECTORS

2021

2020

£

£

Wages and salaries

4,355,187

4,031,312

Social security costs

423,918

400,575

Other pension costs

123,637

78,380

4,902,742

4,510,267

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

2021

2020

Full time employes

28

26

2021

2020

£

£

Directors' remuneration

500,000

500,000

Information regarding the highest paid director is as follows:

2021

2020

£

£

Emoluments etc

250,000

250,000

4.	OPERATING PROFIT

The operating profit is stated after charging:

2021

2020

£

£

Depreciation - owned assets

82,994

91,208

Auditors' remuneration

15,700

14,500

Auditors' remuneration - non-audit work

10,145

12,360

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2021

2020

£

£

Interest charges

140

-

6.

TAXATION

Analysis of the tax charge

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

2021

2020

£

£

Current tax:

UK corporation tax

1,460,766

1,216,681

Foreign taxes paid

81,329

173,952

Total current tax

1,542,095

1,390,633

Deferred tax

(7,267

)

24,225

Tax on profit

1,534,828

1,414,858