HUMPHREY & STRETTON GROUP PLC - Limited company accounts 18.2

REGISTERED NUMBER: 04156010 (England and Wales)

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 30th June 2018

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

7

Consolidated Other Comprehensive Income

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

15

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 2018.

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 32.9% (2017: 30.0%). 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 5.48% in 2017 to

9.53% in 2018.

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, and the uncertainty over trade agreements

with European member states. 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:

D J Humphrey - Director

25th October 2018

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

30th June 2018.

DIVIDENDS

The total distribution of dividends for the year ended 30th June 2018 will be £ 12,500 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1st July 2017 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:

D J Humphrey - Director

25th October 2018

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 2018 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 2018 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to

you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

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 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, 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.

Opinion 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.

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

25th October 2018

TURNOVER

3,240,902

2,854,149

Cost of sales

2,174,081

1,997,550

GROSS PROFIT

1,066,821

856,599

Distribution costs

150,591

136,861

Administrative expenses

625,160

581,331

775,751

718,192

291,070

138,407

Other operating income

18,500

18,500

OPERATING PROFIT

4

309,570

156,907

Interest receivable and similar income

2,140

2,389

311,710

159,296

Interest payable and similar expenses

5

2,777

2,934

PROFIT BEFORE TAXATION

308,933

156,362

Tax on profit

6

61,505

32,258

PROFIT FOR THE FINANCIAL YEAR

247,428

124,104

Profit attributable to:

Owners of the parent

235,976

110,671

Non-controlling interests

11,452

13,433

247,428

124,104

PROFIT FOR THE YEAR

247,428

124,104

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

247,428

124,104

Total comprehensive income attributable to:

Owners of the parent

235,977

110,671

Non-controlling interests

11,451

13,433

247,428

124,104

FIXED ASSETS

Intangible assets

9

16,635

22,332

Tangible assets

10

607,145

472,064

Investments

11

-

-

Investment property

12

-

-

623,780

494,396

CURRENT ASSETS

Stocks

13

78,681

56,817

Debtors

14

682,313

684,898

Cash at bank and in hand

973,850

684,971

1,734,844

1,426,686

CREDITORS

Amounts falling due within one year

15

706,589

514,057

NET CURRENT ASSETS

1,028,255

912,629

TOTAL ASSETS LESS CURRENT LIABILITIES

1,652,035

1,407,025

CREDITORS

Amounts falling due after more than one year

16

(24,035

)

(41,001

)

PROVISIONS FOR LIABILITIES

18

(57,006

)

(29,957

)

NET ASSETS

1,570,994

1,336,067

CAPITAL AND RESERVES

Called up share capital

19

560,002

560,002

Retained earnings

20

943,589

720,113

SHAREHOLDERS' FUNDS

1,503,591

1,280,115

NON-CONTROLLING INTERESTS

21

67,403

55,952

TOTAL EQUITY

1,570,994

1,336,067

The financial statements were approved by the Board of Directors on 25th October 2018 and were signed on its behalf

by:

D J Humphrey - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

-

-

Investments

11

210,000

210,000

Investment property

12

404,355

404,355

614,355

614,355

CURRENT ASSETS

Debtors

14

-

153,369

Cash at bank

738,104

474,778

738,104

628,147

CREDITORS

Amounts falling due within one year

15

21,244

458

NET CURRENT ASSETS

716,860

627,689

TOTAL ASSETS LESS CURRENT LIABILITIES

1,331,215

1,242,044

CAPITAL AND RESERVES

Called up share capital

19

560,002

560,002

Retained earnings

20

771,213

682,042

SHAREHOLDERS' FUNDS

1,331,215

1,242,044

Company's profit for the financial year

89,171

45,532

The financial statements were approved by the Board of Directors on 25th October 2018 and were signed on its behalf by:

D J Humphrey - Director

Called up

share

Retained

Non-controlling

Total

capital

earnings

Total

interests

equity

£

£

£

£

£

Balance at 1st July 2016

560,002

615,692

1,175,694

42,519

1,218,213

Changes in equity

Dividends

-

(6,250

)

(6,250

)

-

(6,250

)

Total comprehensive income

-

110,671

110,671

13,433

124,104

Balance at 30th June 2017

560,002

720,113

1,280,115

55,952

1,336,067

Changes in equity

Dividends

-

(12,500

)

(12,500

)

-

(12,500

)

Total comprehensive income

-

235,976

235,976

11,451

247,427

Balance at 30th June 2018

560,002

943,589

1,503,591

67,403

1,570,994

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st July 2016

560,002

636,510

1,196,512

Changes in equity

Total comprehensive income

-

45,532

45,532

Balance at 30th June 2017

560,002

682,042

1,242,044

Changes in equity

Total comprehensive income

-

89,171

89,171

Balance at 30th June 2018

560,002

771,213

1,331,215

Cash flows from operating activities

Cash generated from operations

1

491,226

124,786

Interest element of hire purchase payments paid

(2,777

)

(2,934

)

Tax paid

(36,090

)

(6,298

)

Net cash from operating activities

452,359

115,554

Cash flows from investing activities

Purchase of tangible fixed assets

(196,867

)

(17,395

)

Sale of tangible fixed assets

833

-

Interest received

2,140

2,389

Net cash from investing activities

(193,894

)

(15,006

)

Cash flows from financing activities

Loans advanced in year

39,021

20,000

Loan repayments in year

30,000

(40,435

)

Capital repayments in year

(18,785

)

(20,086

)

Amount introduced by directors

6,278

13,600

Amount withdrawn by directors

(13,600

)

(7,917

)

Equity dividends paid

(12,500

)

(6,250

)

Net cash from financing activities

30,414

(41,088

)

Increase in cash and cash equivalents

288,879

59,460

Cash and cash equivalents at beginning of year

2

684,971

625,511

Cash and cash equivalents at end of year

2

973,850

684,971

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

30/6/18

30/6/17

£

£

Profit before taxation

308,933

156,362

Depreciation charges

66,651

42,056

Loss on disposal of fixed assets

-

75

Finance costs

2,777

2,934

Finance income

(2,140

)

(2,389

)

376,221

199,038

(Increase)/decrease in stocks

(21,864

)

3,061

Increase in trade and other debtors

(27,415

)

(102,204

)

Increase in trade and other creditors

164,284

24,891

Cash generated from operations

491,226

124,786

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 2018

30/6/18

1/7/17

£

£

Cash and cash equivalents

973,850

684,971

Year ended 30th June 2017

30/6/17

1/7/16

£

£

Cash and cash equivalents

684,971

625,511

1.	STATUTORY INFORMATION

HUMPHREY & STRETTON GROUP PLC is a private company , registered in England and Wales. The

company's registered number and registered office address can be found on the General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Basis of consolidation

The consolidated financial statements incorporate the results of Humphrey & Stretton Group Plc and all of it's

subsidiary and associated undertakings as at the balance sheet date using the acquisition or merger method of

accounting as required. Where the acquisition method is used, the results of subsidiary undertakings are included

from the date of acquisition.

As permitted by section 408 of the Companies Act 2006, Humphrey and Stretton Group Plc has not presented it's

own profit and loss account as it has not traded during the year.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

Goodwill

Goodwill arising on an acquisition of a subsidiary undertaking is the difference between the fair value of the

consideration paid and the fair value of the assets and liabilities acquired. Positive goodwill is capitalised and

amortised through the profit and loss account aver the director's estimate of it's useful life of 20 years. Impairment

tests on the carrying value of goodwill are undertaken:

- at the end of the first full financial year following acquisition;

- in other periods if events or changes in circumstances indicate that the carrying value may not be

recoverable.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less

any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Long leasehold

-

Over the period of the lease

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow

moving items.