HUMPHREY & STRETTON GROUP PLC - Limited company accounts 23.2

REGISTERED NUMBER: 04156010 (England and Wales)

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 30th June 2023

for

HUMPHREY & STRETTON GROUP PLC

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Income Statement

8

Consolidated Other Comprehensive Income

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

16

DIRECTORS:

D J Humphrey

B K J Humphrey

S D C Humphrey

SECRETARY:

S D C Humphrey

REGISTERED OFFICE:

Pindar Road Industrial Estate

Pindar Road

Hoddesdon

Hertfordshire

EN11 0EU

REGISTERED NUMBER:

04156010 (England and Wales)

AUDITORS:

Attenboroughs (Accountants) Limited

Statutory Auditor

1 Tower House

Tower Centre

Hoddesdon

Hertfordshire

EN11 8UR

INSURERS:

Allianz Insurance Plc

57 Ladymead

Guildford

Surrey

GU1 1DB

The directors present their strategic report of the company and the group for the year ended 30th June 2023.

The directors are responsible for the preparation of the Strategic Report.

REVIEW OF BUSINESS

We aim to present a balanced and comprehensive review of the development and performance of our business during the period and its position at the balance sheet date. Our review is consistent with the size and non-complex nature of our business.

The directors consider that the key performance indicators are those that communicate the financial performance and profitability of the group as a whole, these being the gross and net profit margins.

The group's gross profit as a percentage of its sales has increased for the year, with this year's showing a gross profit margin of 35.98% (2022: 29.1%). This is considered by the board to be quite satisfactory and reflects that good margins are still being achieved through strong activity. Its net profit as a percentage of sales has increased from 9.91% in 2022 to 14.34% in 2023.

The company has adequate finance to take advantage of business opportunities, and the directors anticipate the continuation of satisfactory results.

PRINCIPAL RISKS AND UNCERTAINTIES

Macro-economic conditions remain challenging for our industry. We have a high quality customer base which we plan to build on as mitigation against the risk of a slow recovery of the UK economy, the uncertainty over trade agreements with European member states, and the impact of Covid-19. Our turnover across the group remains strong despite the existence of this economic uncertainty.

Our mitigating activities include retaining strong levels of working capital within the group.

We need to comply with laws and regulations governing occupational health and safety matters. Furthermore, accidents could happen which might result in injury to an individual, claims against the company and damage to our reputation.

Our mitigating activities include maintaining appropriate health and safety policies and procedures regarding the need to comply with laws and regulations and to reasonably guard our employees against the risk of injury, and induction and training programmes that reinforce health and safety policies.This is a risk which we insure against as required by law.

ON BEHALF OF THE BOARD:

S D C Humphrey - Director

17th November 2023

The directors present their report with the financial statements of the company and the group for the year ended 30th June 2023.

DIVIDENDS

Interim dividends per share were paid during the year as follows:

Ordinary A £1

-

£302222.22

Ordinary B £1

-

£140000

The total distribution of dividends for the year ended 30th June 2023 will be £ 457,222 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1st July 2022 to the date of this report.

D J Humphrey

B K J Humphrey

S D C Humphrey

MARKET VALUE OF LAND AND BUILDINGS

The directors are of the opinion that there is no material difference between the market value of the leasehold property and the amount at which it is shown in the financial statements.

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, Attenboroughs (Accountants) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

S D C Humphrey - Director

17th November 2023

Opinion

We have audited the financial statements of HUMPHREY & STRETTON GROUP PLC (the 'parent company') and its subsidiaries (the 'group') for the year ended 30th June 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 30th June 2023 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.

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities (non-compliance with laws and regulations), including fraud.

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

We have made enquires of management around actual and potential litigation claims.

The company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation, distributable profits legislation, taxation legislation and pension legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

We have reviewed the financial statement disclosures and testing to support documentation to assess compliance with applicable laws and regulations.

We have considered the risks of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

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.

Mr David Roger Pattman FCCA (Senior Statutory Auditor)

for and on behalf of Attenboroughs (Accountants) Limited

Statutory Auditor

1 Tower House

Tower Centre

Hoddesdon

Hertfordshire

EN11 8UR

17th November 2023

TURNOVER

4,226,938

4,008,703

Cost of sales

2,706,016

2,842,111

GROSS PROFIT

1,520,922

1,166,592

Distribution costs

188,106

163,825

Administrative expenses

759,591

636,356

947,697

800,181

573,225

366,411

Other operating income

35,446

33,663

OPERATING PROFIT

4

608,671

400,074

Interest receivable and similar income

1,494

1,262

610,165

401,336

Interest payable and similar expenses

5

3,880

4,026

PROFIT BEFORE TAXATION

606,285

397,310

Tax on profit

6

113,753

(1,073

)

PROFIT FOR THE FINANCIAL YEAR

492,532

398,383

Profit attributable to:

Owners of the parent

469,601

369,470

Non-controlling interests

22,931

28,913

492,532

398,383

PROFIT FOR THE YEAR

492,532

398,383

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

492,532

398,383

Total comprehensive income attributable to:

Owners of the parent

469,601

369,470

Non-controlling interests

22,931

28,913

492,532

398,383

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

1,087,358

544,088

Investments

11

-

-

Investment property

12

-

-

1,087,358

544,088

CURRENT ASSETS

Stocks

13

112,645

105,494

Debtors

14

987,652

1,016,476

Cash at bank and in hand

1,425,734

1,294,491

2,526,031

2,416,461

CREDITORS

Amounts falling due within one year

15

1,344,115

711,099

NET CURRENT ASSETS

1,181,916

1,705,362

TOTAL ASSETS LESS CURRENT LIABILITIES

2,269,274

2,249,450

CREDITORS

Amounts falling due after more than one year

16

(20,833

)

(42,179

)

PROVISIONS FOR LIABILITIES

19

(56,608

)

(50,748

)

NET ASSETS

2,191,833

2,156,523

CAPITAL AND RESERVES

Called up share capital

20

560,004

560,004

Share premium

21

1

1

Retained earnings

21

1,484,591

1,472,212

SHAREHOLDERS' FUNDS

2,044,596

2,032,217

NON-CONTROLLING INTERESTS

22

147,237

124,306

TOTAL EQUITY

2,191,833

2,156,523

The financial statements were approved by the Board of Directors and authorised for issue on 17th November 2023 and were signed on its behalf by:

S D C Humphrey - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

-

-

Investments

11

210,000

210,000

Investment property

12

993,609

404,355

1,203,609

614,355

CURRENT ASSETS

Debtors

14

287,042

259,625

Cash at bank and in hand

820,976

827,023

1,108,018

1,086,648

CREDITORS

Amounts falling due within one year

15

619,176

30,734

NET CURRENT ASSETS

488,842

1,055,914

TOTAL ASSETS LESS CURRENT LIABILITIES

1,692,451

1,670,269

CREDITORS

Amounts falling due after more than one year

16

20,833

30,833

NET ASSETS

1,671,618

1,639,436

CAPITAL AND RESERVES

Called up share capital

20

560,004

560,004

Share premium

21

1

1

Retained earnings

21

1,111,613

1,079,431

SHAREHOLDERS' FUNDS

1,671,618

1,639,436

Company's profit for the financial year

474,404

297,400

The financial statements were approved by the Board of Directors and authorised for issue on 17th November 2023 and were signed on its behalf by:

S D C Humphrey - Director

Called up

share

Retained

Share

capital

earnings

premium

£

£

£

Balance at 1st July 2021

560,002

1,362,742

-

Changes in equity

Issue of share capital

2

-

1

Dividends

-

(260,000

)

-

Total comprehensive income

-

369,470

-

Balance at 30th June 2022

560,004

1,472,212

1

Changes in equity

Dividends

-

(457,222

)

-

Total comprehensive income

-

469,601

-

Balance at 30th June 2023

560,004

1,484,591

1

Non-controlling

Total

Total

interests

equity

£

£

£

Balance at 1st July 2021

1,922,744

95,393

2,018,137

Changes in equity

Issue of share capital

3

-

3

Dividends

(260,000

)

-

(260,000

)

Total comprehensive income

369,470

28,913

398,383

Balance at 30th June 2022

2,032,217

124,306

2,156,523

Changes in equity

Dividends

(457,222

)

-

(457,222

)

Total comprehensive income

469,601

22,931

492,532

Balance at 30th June 2023

2,044,596

147,237

2,191,833

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1st July 2021

560,002

1,027,031

-

1,587,033

Changes in equity

Issue of share capital

2

-

1

3

Dividends

-

(245,000

)

-

(245,000

)

Total comprehensive income

-

297,400

-

297,400

Balance at 30th June 2022

560,004

1,079,431

1

1,639,436

Changes in equity

Dividends

-

(442,222

)

-

(442,222

)

Total comprehensive income

-

474,404

-

474,404

Balance at 30th June 2023

560,004

1,111,613

1

1,671,618

Cash flows from operating activities

Cash generated from operations

1

675,044

506,710

Interest paid

(906

)

(1,052

)

Interest element of hire purchase payments paid

(2,974

)

(2,974

)

Tax paid

(9,926

)

19,617

Net cash from operating activities

661,238

522,301

Cash flows from investing activities

Purchase of tangible fixed assets

(589,254

)

(88,363

)

Interest received

1,494

1,265

Net cash from investing activities

(587,760

)

(87,098

)

Cash flows from financing activities

Bank loans advanced and repayments

(10,001

)

(9,167

)

Loans from participating

545,393

166,560

Capital repayments in year

(27,230

)

(27,230

)

Amount introduced by directors

19,946

20,000

Amount withdrawn by directors

(13,121

)

(120,999

)

Share issue

-

3

Government grants

-

848

Equity dividends paid

(457,222

)

(260,000

)

Net cash from financing activities

57,765

(229,985

)

Increase in cash and cash equivalents

131,243

205,218

Cash and cash equivalents at beginning of year

2

1,294,491

1,089,273

Cash and cash equivalents at end of year

2

1,425,734

1,294,491

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

30/6/23

30/6/22

£

£

Profit before taxation

606,285

397,310

Depreciation charges

45,985

53,344

Change in amounts recovered on contracts

48,180

-

Government grants

-

(848

)

Finance costs

3,880

4,026

Finance income

(1,494

)

(1,262

)

702,836

452,570

Increase in stocks

(7,151

)

(6,481

)

Decrease/(increase) in trade and other debtors

14,258

(123,219

)

(Decrease)/increase in trade and other creditors

(34,899

)

183,840

Cash generated from operations

675,044

506,710

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 30th June 2023

30/6/23

1/7/22

£

£

Cash and cash equivalents

1,425,734

1,294,491

Year ended 30th June 2022

30/6/22

1/7/21

£

£

Cash and cash equivalents

1,294,491

1,089,273

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/7/22

Cash flow

At 30/6/23

£

£

£

Net cash

Cash at bank and in hand

1,294,491

131,243

1,425,734

1,294,491

131,243

1,425,734

Debt

Finance leases

(38,576

)

27,230

(11,346

)

Debts falling due within 1 year

(10,000

)

-

(10,000

)

Debts falling due after 1 year

(30,833

)

10,000

(20,833

)

(79,409

)

37,230

(42,179

)

Total

1,215,082

168,473

1,383,555