back to ERNEST H.HILL,LIMITED detail Ernest H Hill Limited - Accounts
Registered number
00091553
Ernest H Hill Limited
Report and Unaudited Accounts
30 September 2016
Ernest H Hill Limited
Registered number: 00091553
Directors' Report
The directors present their report and accounts for the year ended 30 September 2016.
Principal activities
The company's principal activity during the year continued to be the manufacture and distribution of pumps and fluid transfer equipment.
During the year, the company purchased the freehold of a factory at Longacre Way, Holbrook, Sheffield. After refurbishment, the company transferred its activities to this site in the second quarter of 2017.
Directors
The following persons served as directors during the year:
J F Hewins
D J Hewins
C Dale
Small company provisions
This report has been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime.
This report was approved by the board on 30 May 2017 and signed on its behalf.
C Dale
Director
Ernest H Hill Limited
Chartered Accountants' report to the board of directors on the preparation of the unaudited statutory accounts of Ernest H Hill Limited for the year ended 30 September 2016
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Ernest H Hill Limited for the year ended 30 September 2016 which comprise of the Profit and Loss Account, the Balance Sheet and the related notes from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales, we are subject to its ethical and other professional requirements which are detailed at
icaew.com/membershandbook.
This report is made solely to the Board of Directors of Ernest H Hill Limited, as a body, in accordance with the terms of our engagement letter dated 1 April 2013. Our work has been undertaken solely to prepare for your approval the accounts of Ernest H Hill Limited and state those matters that we have agreed to state to the Board of Directors of Ernest H Hill Limited, as a body, in this report in accordance with AAF 2/10 as detailed at icaew.com/compilation. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Ernest H Hill Limited and its Board of Directors as a body for our work or for this report.
It is your duty to ensure that Ernest H Hill Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Ernest H Hill Limited. You consider that Ernest H Hill Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the accounts of Ernest H Hill Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.
David Watson
Chartered Accountants
Knoll Farm
Aston, Hope
Hope Valley
Derbyshire
S33 6RA
30 May 2017
Ernest H Hill Limited
Profit and Loss Account
for the year ended 30 September 2016
Notes 2016 2015
£ £
Turnover 2 2,598,434 2,565,471
Cost of sales (1,877,514) (1,841,703)
Gross profit 720,920 723,768
Selling costs (154,678) (131,896)
Administrative expenses (397,327) (403,370)
Operating profit 3 168,915 188,502
Exceptional items:
profit on the disposal of tangible fixed assets 3,381 -
172,296 188,502
Interest receivable 3 399
Interest payable 4 (17,689) -
Profit on ordinary activities before taxation 154,610 188,901
Tax on profit on ordinary activities 5 (24,175) (22,270)
Profit for the financial year 130,435 166,631
Ernest H Hill Limited
Balance Sheet
as at 30 September 2016
Notes 2016 2015
£ £
Fixed assets
Tangible assets 6 841,112 197,967
Current assets
Stocks 293,603 310,203
Debtors 7 950,364 772,258
Cash at bank and in hand 168 332,641
1,244,135 1,415,102
Creditors: amounts falling due within one year 8 (674,682) (334,101)
Net current assets 569,453 1,081,001
Total assets less current liabilities 1,410,565 1,278,968
Creditors: amounts falling due after more than one year 9 (9,312) -
Provisions for liabilities 11 (13,324) (21,474)
Net assets 1,387,929 1,257,494
Capital and reserves
Called up share capital 12 310,000 310,000
Profit and loss account 13 1,077,929 947,494
Shareholder's funds 1,387,929 1,257,494
The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.
The member has not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The accounts have been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime.
C Dale
Director
Approved by the board on 30 May 2017
Ernest H Hill Limited
Notes to the Accounts
for the year ended 30 September 2016
1 Accounting policies
Basis of preparation
The accounts have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2015).
Turnover
Turnover represents the value, net of value added tax and discounts, of goods provided to customers and work carried out in respect of services provided to customers.
Depreciation
Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives.
Plant and machinery 5-10% straight line
Motor vehicles 25% straight line
Fixtures and fittings 4-10% straight line
Office equipment 10-33% straight line
Tooling 15% reducing balance
Stocks
Stock is valued at the lower of cost and net realisable value.
Deferred taxation
Full provision is made for deferred taxation resulting from timing differences between the recognition of gains and losses in the accounts and their recognition for tax purposes. Deferred taxation is calculated on an un-discounted basis at the tax rates which are expected to apply in the periods when the timing differences will reverse.
Foreign currencies
Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date. All differences are taken to the profit and loss account.
Leasing and hire purchase commitments
Assets held under finance leases and hire purchase contracts, which are those where substantially all the risks and rewards of ownership of the asset have passed to the company, are capitalised in the balance sheet and depreciated over their useful lives. The corresponding lease or hire purchase obligation is treated in the balance sheet as a liability.

The interest element of the rental obligations is charged to the profit and loss account over the period of the lease and represents a constant proportion of the balance of capital repayments outstanding.

Rentals paid under operating leases are charged to income on a straight line basis over the lease term.
Pensions
The company operates a defined contribution pension scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.
2 Turnover 2016 2015
Turnover attributable to geographical markets outside the UK 54.6% 53.0%
3 Operating profit 2016 2015
£ £
This is stated after charging:
Depreciation of owned fixed assets 50,318 52,431
Depreciation of assets held under finance leases and hire purchase contracts 7,345 7,389
Pension costs 4,817 5,573
During the year, no director received any emoluments from the company (2015 - £nil).
4 Interest payable 2016 2015
£ £
Interest payable 17,689 -
5 Taxation 2016 2015
£ £
UK corporation tax 32,325 33,136
Deferred tax (8,150) (10,866)
24,175 22,270
6 Tangible fixed assets
Land and buildings Motor vehicles Plant and machinery Total
£ £ £ £
Cost
At 1 October 2015 - 124,001 815,340 939,341
Additions 667,483 35,256 6,688 709,427
Disposals - (29,555) - (29,555)
At 30 September 2016 667,483 129,702 822,028 1,619,213
Depreciation
At 1 October 2015 - 67,562 673,812 741,374
Charge for the year - 27,770 29,893 57,663
On disposals - (20,936) - (20,936)
At 30 September 2016 - 74,396 703,705 778,101
Net book value
At 30 September 2016 667,483 55,306 118,323 841,112
At 30 September 2015 - 56,439 141,528 197,967
2016 2015
£ £
Net book value of plant, machinery and vehicles included above held under finance leases and hire purchase contracts 17,293 9,235
7 Debtors 2016 2015
£ £
Trade debtors 397,081 340,286
Amounts owed by group undertakings 512,911 387,580
VAT recoverable - 340
Other debtors 40,372 44,052
950,364 772,258
8 Creditors: amounts falling due within one year 2016 2015
£ £
Bank loan less balances 318,436 -
Obligations under finance lease and hire purchase contracts 7,981 2,612
Trade creditors 165,766 176,726
Amounts owed to group undertakings 301 6,941
Corporation tax 31,762 26,195
Other taxes and social security costs 15,740 9,919
Other creditors 134,696 111,708
674,682 334,101
9 Creditors: amounts falling due after one year 2016 2015
£ £
Obligations under finance lease and hire purchase contracts 9,312 -
10 Loans 2016 2015
£ £
Creditors include:
Secured bank loans 652,500 -
During the year, the company obtained a loan for the purchase of a factory at Longacre Way, Holbrook, Sheffield. This loan together with the bank loans and overdrafts of companies in the Margery Hill Limited Group are secured by fixedcharges over the assets of the various companies and a cross guarantee between the various subsidiary companies and Margery Hill Limited. At 30 September 2016 the amount of the bank loans and overdrafts was £299,296 owing (2015 - £230,796 in hand).
11 Provisions for liabilities
Deferred taxation: 2016 2015
£ £
Accelerated capital allowances 13,324 21,474
2016 2015
£ £
At 1 October 21,474 32,340
Deferred tax charge in profit and loss account (8,150) (10,866)
At 30 September 13,324 21,474
12 Share capital Nominal 2016 2016 2015
value Number £ £
Allotted, called up and fully paid:
Ordinary shares £1 each 310,000 310,000 310,000
13 Profit and loss account 2016
£
At 1 October 2015 947,494
Profit for the year 130,435
At 30 September 2016 1,077,929
14 Pension commitments
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension charge represents contributions paid by the company and amounted to £4,817 (2015 - £5,573). Contributions totalling £808 (2015 - £736) were payable to the fund at the balance sheet date and are included in creditors.
15 Other financial commitments 2016 2015
£ £
At the year end the company had annual commitments under non-cancellable operating leases as set out below:
Operating leases which expire:
within one year 62,500 62,500
16 Contingent liabilities
The bank loans and overdrafts of companies in the Margery Hill Limited Group are secured by fixedcharges over the assets of the various companies and a cross guarantee between the various subsidiary companies and Margery Hill Limited. At 30 September 2016 the amount of the bank loans and overdrafts was £299,296 owing (2015 - £230,796 in hand).
17 Related party transactions 2016 2015
£ £
Nesthill Limited
Fellow subsidiary company
Management charges for the services of the directors
Paid in the year 251,500 234,000
Received in the year 7,961 7,389
Watsons Anodising Limited
Fellow subsidiary company
Group relief for losses surrendered
Amount due at year end 301 6,941
18 Ultimate controlling party
The whole of the allotted share capital is held by Margery Hill Limited, a company registered in England.
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