Pike Hall Developments Limited - Limited company accounts 23.2

REGISTERED NUMBER: 10596503 (England and Wales)

PIKE HALL DEVELOPMENTS LIMITED

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2023

Page

Company Information

1

Group Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

5

Consolidated Income Statement

8

Consolidated Other Comprehensive Income

9

Consolidated Statement of Financial Position

10

Company Statement of Financial Position

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Statement of Cash Flows

14

Notes to the Consolidated Statement of Cash Flows

15

Notes to the Consolidated Financial Statements

16

DIRECTOR:

T R Docker

REGISTERED OFFICE:

The Exchange

5 Bank Street

Bury

BL9 0DN

REGISTERED NUMBER:

10596503 (England and Wales)

AUDITORS:

DJH Mitten Clarke Audit Limited

Accountants

Statutory Auditors

The Exchange

5 Bank Street

Bury

BL9 0DN

The director presents his strategic report of the company and the group for the year ended 31 October 2023.

REVIEW OF BUSINESS

The results for the period and financial position of the group are shown in the annexed financial statements.

The director is satisfied with the relative stable turnover and results achieved in the year. These have been achieved despite the continuing difficulties facing the GRP and motor industry. As in the prior year, the sales are generated from a mix between customers and the company's own brands.

The group's gross profit margin fluctuates year on year due to a number of factors including:

- Raw materials prices impacting the purchase price of goods

- The sales mix of product type sold

- Competition discounted prices

Going forward, the director believes that it will be very difficult to sustain the current year's results but they will aim to do so by improving the product range and building on strong relationships with customers.

PRINCIPAL RISKS AND UNCERTAINTIES

The main ongoing risks facing the group are falling demand, wage rises and bad debts.

The GRP and motor industry is highly competitive and if vehicle chassis are being under-supplied a general downturn in trade quickly occurs, along with increased pressure from customers in relation to prices. The current downturn in consumer spending will continue to put sales under pressure over the next twelve months. Demand may be further impacted by unseasonal weather patterns.

Falling demand - the director aims to work closely with main customers to mitigate this risk and to source new customers, and also to continually offer new product designs.

Rising cost of raw materials and manufacturing cost - price increases will be passed on to customers where possible to help mitigate against this risk.

Bad debt risk - As higher manufacturing costs have taken effect customers continue to suffer and the risk of bad debts is expected to increase in the coming year. The directors operate a strong credit control function, impose strict credit limits and continually monitor balances owed.

KEY PERFORMANCE INDICATORS

The key performance indicators used by the directors are:

i) Monthly sales data - which is compared to results in the prior year

ii) Monthly sales ledger - which is is analysed by age of balance

iii) Profit margins on a product by product basis

FUTURE DEVELOPMENTS

Trading since the year end has continued to be challenging, in light of the war in Ukraine and the cost of living crisis. However the group has taken steps to mitigate the effects of these challenges.

ON BEHALF OF THE BOARD:

T R Docker - Director

25 March 2024

The director presents his report with the financial statements of the company and the group for the year ended 31 October 2023.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of the manufacture of specialist commercial vehicle, engineering and general fibreglass mouldings. The principal activity of the company is as a holding company to the trading subsidiary.

DIVIDENDS

No dividends will be distributed for the year ended 31 October 2023.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTOR

T R Docker held office during the whole of the period from 1 November 2022 to the date of this report.

DISCLOSURE IN THE STRATEGIC REPORT

Identification of the information for which the company has chosen, in accordance with s414C(11) of the Companies Act, to set out in the company's strategic report which would otherwise be required by Schedule 7 of the 'Large and Medium-sized Companies and groups (Accounts and Reports) regulations 2008' to be contained in the director's report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he 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

DJH Mitten Clarke Audit Limited has indicated its willingness to be reappointed for another term and appropriate arrangements are being made for it to be deemed reappointed as auditor in the absence of an Annual General Meeting.

ON BEHALF OF THE BOARD:

T R Docker - Director

25 March 2024

Opinion

We have audited the financial statements of Pike Hall Developments Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2023 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 October 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 Director 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 Director 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 Director.

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 director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the group or the parent company or to cease operations, or has 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

As part of our planning process:

- We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The company did not inform us of any known, suspected or alleged fraud.

- We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006, and Health & Safety legislation including that relating to fire safety and hazardous substances.

- We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.

Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

- Identifying and testing journal entries, in particular those that were significant and unusual.

- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.

- Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to depreciation and fair value of investment properties.

- Assessing the extent of compliance with, or lack thereof, relevant laws and regulations.

- Testing key revenue lines for evidence of management bias, and cut-off testing for completeness of income.

- Performing walkthrough testing to test controls and for evidence of management bias.

- Performing a physical verification of key assets, including stock.

- Obtaining third-party confirmation of material bank and loan balances.

- Documenting and verifying all significant related party balances and transactions.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors of the entity.

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.

Kate Hughes (Senior Statutory Auditor)

for and on behalf of DJH Mitten Clarke Audit Limited

Accountants

Statutory Auditors

The Exchange

5 Bank Street

Bury

BL9 0DN

9 April 2024

REVENUE

3

6,700,315

6,977,359

Cost of sales

(3,629,114

)

(4,018,361

)

GROSS PROFIT

3,071,201

2,958,998

Administrative expenses

(1,561,968

)

(1,190,038

)

1,509,233

1,768,960

Other operating income

17,776

35,220

OPERATING PROFIT

5

1,527,009

1,804,180

Interest receivable and similar income

63,321

5,072

1,590,330

1,809,252

Gain/loss on revaluation of investments

8,940

(112,428

)

1,599,270

1,696,824

Interest payable and similar expenses

6

(26,047

)

(24,944

)

PROFIT BEFORE TAXATION

1,573,223

1,671,880

Tax on profit

7

(378,889

)

(356,926

)

PROFIT FOR THE FINANCIAL YEAR

1,194,334

1,314,954

Profit attributable to:

Owners of the parent

1,194,334

1,314,954

PROFIT FOR THE YEAR

1,194,334

1,314,954

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,194,334

1,314,954

Total comprehensive income attributable to:

Owners of the parent

1,194,334

1,314,954

FIXED ASSETS

Intangible assets

9

-

-

Property, plant and equipment

10

419,141

482,071

Investments

11

1,023,396

1,014,456

Investment property

12

697,048

585,955

2,139,585

2,082,482

CURRENT ASSETS

Inventories

13

55,710

103,138

Debtors

14

2,008,916

2,157,018

Cash at bank and in hand

6,145,589

4,730,208

8,210,215

6,990,364

CREDITORS

Amounts falling due within one year

15

(1,536,951

)

(1,490,982

)

NET CURRENT ASSETS

6,673,264

5,499,382

TOTAL ASSETS LESS CURRENT LIABILITIES

8,812,849

7,581,864

CREDITORS

Amounts falling due after more than one year

16

(23,459

)

-

PROVISIONS FOR LIABILITIES

19

(104,785

)

(91,593

)

NET ASSETS

8,684,605

7,490,271

CAPITAL AND RESERVES

Called up share capital

20

100

100

Retained earnings

8,684,505

7,490,171

SHAREHOLDERS' FUNDS

8,684,605

7,490,271

The financial statements were approved by the director and authorised for issue on 25 March 2024 and were signed by:

T R Docker - Director

FIXED ASSETS

Intangible assets

9

-

-

Property, plant and equipment

10

-

-

Investments

11

1,023,463

1,014,523

Investment property

12

697,048

585,955

1,720,511

1,600,478

CURRENT ASSETS

Debtors

14

349,150

349,150

Cash at bank

4,519,937

3,569,343

4,869,087

3,918,493

CREDITORS

Amounts falling due within one year

15

(21,401

)

(8,836

)

NET CURRENT ASSETS

4,847,686

3,909,657

TOTAL ASSETS LESS CURRENT LIABILITIES

6,568,197

5,510,135

CAPITAL AND RESERVES

Called up share capital

20

100

100

Retained earnings

6,568,097

5,510,035

SHAREHOLDERS' FUNDS

6,568,197

5,510,135

Company's profit for the financial year

1,058,062

399,365

The financial statements were approved by the director and authorised for issue on 25 March 2024 and were signed by:

T R Docker - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 November 2021

100

6,175,217

6,175,317

Changes in equity

Total comprehensive income

-

1,314,954

1,314,954

Balance at 31 October 2022

100

7,490,171

7,490,271

Changes in equity

Total comprehensive income

-

1,194,334

1,194,334

Balance at 31 October 2023

100

8,684,505

8,684,605

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 November 2021

100

5,110,670

5,110,770

Changes in equity

Total comprehensive income

-

399,365

399,365

Balance at 31 October 2022

100

5,510,035

5,510,135

Changes in equity

Total comprehensive income

-

1,058,062

1,058,062

Balance at 31 October 2023

100

6,568,097

6,568,197

Cash flows from operating activities

Cash generated from operations

1

1,828,664

1,296,833

Interest paid

(26,047

)

(24,944

)

Tax paid

(339,599

)

(350,009

)

Net cash from operating activities

1,463,018

921,880

Cash flows from investing activities

Purchase of tangible fixed assets

(20,041

)

(49,686

)

Purchase of investment property

(111,093

)

(414,923

)

Sale of tangible fixed assets

1,529

-

Interest received

63,321

5,072

Net cash from investing activities

(66,284

)

(459,537

)

Cash flows from financing activities

Capital repayments in year

(6,177

)

-

Amount introduced by director

24,824

9,039

Net cash from financing activities

18,647

9,039

Increase in cash and cash equivalents

1,415,381

471,382

Cash and cash equivalents at beginning of year

2

4,730,208

4,258,826

Cash and cash equivalents at end of year

2

6,145,589

4,730,208

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

2023

2022

£

£

Profit before taxation

1,573,223

1,671,880

Depreciation charges

65,953

(53,869

)

Loss on disposal of fixed assets

52,533

-

(Gain)/loss on revaluation of fixed assets

(8,940

)

112,428

Finance costs

26,047

24,944

Finance income

(63,321

)

(5,072

)

1,645,495

1,750,311

Decrease in inventories

47,428

76,913

Decrease/(increase) in trade and other debtors

148,102

(548,672

)

(Decrease)/increase in trade and other creditors

(12,361

)

18,281

Cash generated from operations

1,828,664

1,296,833

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 October 2023

31.10.23

1.11.22

£

£

Cash and cash equivalents

6,145,589

4,730,208

Year ended 31 October 2022

31.10.22

1.11.21

£

£

Cash and cash equivalents

4,730,208

4,258,826

3.	ANALYSIS OF CHANGES IN NET FUNDS

Other

non-cash

At 1.11.22

Cash flow

changes

At 31.10.23

£

£

£

£

Net cash

Cash at bank

and in hand

4,730,208

1,415,381

6,145,589

4,730,208

1,415,381

6,145,589

Debt

Finance leases

-

6,177

-

(30,867

)

-

6,177

-

(30,867

)

Total

4,730,208

1,421,558

-

6,114,722

1.	STATUTORY INFORMATION

Pike Hall Developments Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 10596503 and its registered office address is The Exchange, 5 Bank Street, Bury, BL9 0DN.

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.

Basis of consolidation

The financial statements consolidate Pike Hall Developments Group and its subsidiary undertaking Hilton Docker Mouldings Limited.

The subsidiary undertaking is included in the group accounts using the acquisition method.

Significant judgements and estimates

In the application of the group's accounting policies, the director is required to make estimates and judgements. The estimates are based on historical experience and other relevant factors. Actual results may differ from these estimates.

The estimates are continually evaluated. Revisions to accounting estimates are recognised in the period in which the estimate is revised.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Estimating the useful economic life of an asset and the anticipated residual value are considered a key judgement in calculating an appropriate depreciation and amortisation charge.

Determining the fair value of investment properties is considered a key judgement.

Revenue

Revenue comprises the aggregate of the fair value of the sale of goods, net of value-added tax.

Revenue is recognised when the company has delivered products to the customer, the customer has accepted the products and collection of the related receivables is anticipated. For moulds retained for production, revenue is recognised when the company has carried out an appropriate level of testing on the mould and has deemed it satisfactorily completed for use in production.

Rental income

Rental income comprises the aggregate of the fair value of the rental services provided. Rental income is recognised as those services are provided to the occupants of the property.

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.

Negative goodwill are being amortised evenly over their estimated useful life of five years.

Property, plant and equipment

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

Improvements to property

-

2% on cost

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

20% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33% on reducing balance

The residual values, estimated useful lives and depreciation method of property, plant and equipment are reviewed, and adjusted as appropriate, at each statement of financial position date. The effects of any revision are recognised in the income statement when the change arises.

Included in land and buildings is freehold land which is not depreciated.

Government grants

Grants are accounted for under the accruals model as permitted by FRS 102.

During the prior year the group benefitted from the Government 'Made Smarter' grant scheme for the development of industrial design technologies. This income has been recognised in "other income" in the same period as the related fixed asset addition costs.

The company has not directly benefitted from any other forms of government assistance.

Investment property

Investment property is shown at fair value determined by the director using observable market data and external valuations. Any aggregate surplus or deficit arising from changes in fair value is recognised in the income statement.

Inventories

Raw materials and consumables are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost is calculated on the first in, first out basis and includes all direct expenditure and an appropriate proportion of fixed and variable overheads. Net realisable value is based on the estimated selling price less any estimated completion or selling costs.

Amounts recoverable on contract

Goods in production comprising amounts recoverable on contract are valued at between 25-80% of anticipated sales price, depending on their stage of completion and including estimates of impairment.

Financial instruments

The group only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the income statement.

Basic financial liabilities are initially measured at transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled.