Company registration number 03150096 (England and Wales)
HUNTER STOVES LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
PAGES FOR FILING WITH REGISTRAR
HUNTER STOVES LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
HUNTER STOVES LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2022
31 December 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
3
68,712
82,748
Tangible assets
4
1,129,330
1,238,989
Investments
5
75,000
75,000
1,273,042
1,396,737
Current assets
Stocks
2,174,505
2,294,185
Debtors
6
1,686,470
1,085,666
Cash at bank and in hand
2,547,166
1,268,452
6,408,141
4,648,303
Creditors: amounts falling due within one year
7
(1,738,912)
(1,550,775)
Net current assets
4,669,229
3,097,528
Total assets less current liabilities
5,942,271
4,494,265
Creditors: amounts falling due after more than one year
8
(253,013)
(292,064)
Provisions for liabilities
(125,523)
(110,024)
Net assets
5,563,735
4,092,177
Capital and reserves
Called up share capital
17,100
17,100
Share premium account
48,000
48,000
Profit and loss reserves
5,498,635
4,027,077
Total equity
5,563,735
4,092,177
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 December 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
HUNTER STOVES LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2022
31 December 2022
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 19 September 2023 and are signed on its behalf by:
Mr S P Clatworthy
Mr P J Grimes
Director
Director
Company Registration No. 03150096
HUNTER STOVES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
1
Accounting policies
Company information
Hunter Stoves Limited is a private company limited by shares incorporated in England and Wales. The registered office is Trevilla Park, Slaughterbridge, Camelford, Cornwall, PL32 9TT.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
1.2
Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.3
Research and development expenditure
Research and development expenditure is written off against profits in the year in which it is incurred.
1.4
Intangible fixed assets - goodwill
Acquired goodwill is written off in equal annual instalments over its estimated useful economic life.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings Freehold
Land: 0% per annum
Freehold buildings: 2% per annum on cost
Land and buildings Leasehold
Straight line over the term of the lease
Plant and machinery
15% per annum on written down value
Fixtures, fittings & equipment
Computers: 25% per annum on cost
Other: 25% per annum on written down value
Motor vehicles
25% per annum on cost
HUNTER STOVES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 4 -
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
HUNTER STOVES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 5 -
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
1.11
Retirement benefits
The Company operates a defined contribution scheme for the benefit of its directors and employees. Contributions payable are charged to the profit and loss account in the year they are payable.
1.12
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.13
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred.
1.14
Foreign exchange
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to the profit and loss account.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
33
31
HUNTER STOVES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 6 -
3
Intangible fixed assets
Goodwill
Other
Total
£
£
£
Cost
At 1 January 2022 and 31 December 2022
246,852
241
247,093
Amortisation and impairment
At 1 January 2022
164,177
168
164,345
Amortisation charged for the year
14,012
24
14,036
At 31 December 2022
178,189
192
178,381
Carrying amount
At 31 December 2022
68,663
49
68,712
At 31 December 2021
82,675
73
82,748
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2022
769,068
1,872,612
2,641,680
Additions
44,234
44,234
Disposals
(28,862)
(28,862)
At 31 December 2022
769,068
1,887,984
2,657,052
Depreciation and impairment
At 1 January 2022
157,609
1,245,082
1,402,691
Depreciation charged in the year
26,536
122,820
149,356
Eliminated in respect of disposals
(24,325)
(24,325)
At 31 December 2022
184,145
1,343,577
1,527,722
Carrying amount
At 31 December 2022
584,923
544,407
1,129,330
At 31 December 2021
611,459
627,530
1,238,989
5
Fixed asset investments
2022
2021
£
£
Investment in subsidiary undertakings
75,000
75,000
In the opinion of the directors, the aggregate value of the company's investment in subsidiary undertakings is not less than the amount included in the balance sheet.
HUNTER STOVES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
5
Fixed asset investments
(Continued)
- 7 -
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 January 2022 & 31 December 2022
75,000
Carrying amount
At 31 December 2022
75,000
At 31 December 2021
75,000
6
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
1,257,415
845,360
Other debtors
429,055
240,306
1,686,470
1,085,666
Other debtors totalling £63,372 (2021: £nil) are recoverable after more than 1 year.
7
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans
26,741
25,971
Trade creditors
76,676
115,109
Amounts owed to group undertakings
75,000
75,000
Taxation and social security
917,768
534,528
Other creditors
642,727
800,167
1,738,912
1,550,775
lncluded within other creditors are balances totalling £7,749 (2021: £22,858) relating to amounts owed
under hire purchase contracts. Net obligations under fìnance lease and hire purchase contracts are secured on the assets concerned.
The bank loans and overdraft are secured by a charge over freehold property, a debenture and by guarantees given by the company's director/shareholders.
HUNTER STOVES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
8
Creditors: amounts falling due after more than one year
2022
2021
£
£
Bank loans and overdrafts
156,653
183,387
Other creditors
96,360
108,677
253,013
292,064
The long-term loans are secured by a charge over freehold property, a debenture and by guarantees given by the company's director/shareholders.
Included within other creditors are balances totalling £nil (2021: £7,749) relating to amounts owed under hire purchase contracts. Net obligations under finance lease and hire purchase contracts are secured on the assets concerned
Creditors which fall due after five years are as follows:
2022
2021
£
£
Payable by instalments
41,618
71,529
9
Deferred government grant income
2022
2021
£
£
Balance at 1 January 2021
100,928
110,647
Amortisation in the year
(4,568)
(5,151)
96,360
100,928
Deferred government grant income is included within other creditors in Creditors: amounts falling due after more than one year.
10
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2022
2021
£
£
Within one year
122,500
25,058
Between two and five years
490,000
In over five years
552,500
1,165,000
25,058
HUNTER STOVES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
11
Directors' transactions
Advances or credits have been granted by the company to its directors as follows:
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Closing balance
£
£
£
£
One director
2.00
-
69,222
1,524
70,746
One director
2.00
-
114,788
2,235
117,023
-
184,010
3,759
187,769