Company Registration No. 11591173 (England and Wales)
HBB PRESTON EAST LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
HBB PRESTON EAST LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 5
HBB PRESTON EAST LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2021
31 December 2021
- 1 -
2021
2020
Notes
£
£
£
£
Current assets
Inventories
4
14,496,066
6,053,507
Trade and other receivables
5
45,679
236,166
Cash and cash equivalents
268,814
10,022
14,810,559
6,299,695
Current liabilities
6
(15,014,170)
(4,069,555)
Net current (liabilities)/assets
(203,611)
2,230,140
Non-current liabilities
6
(2,322,900)
Net liabilities
(203,611)
(92,760)
Equity
Called up share capital
9
2
2
Retained earnings
(203,613)
(92,762)
Total equity
(203,611)
(92,760)
The directors of the company have elected not to include a copy of the income statement within the financial statements.
The financial statements were approved by the board of directors and authorised for issue on 16 August 2022 and are signed on its behalf by:
Mr A J Couper
Director
Company Registration No. 11591173
HBB PRESTON EAST LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
1
Accounting policies
Company information
HBB Preston East Limited is a private company limited by shares incorporated in England and Wales. The registered office is 8 Kenyon Road, Lomeshaye Industrial Estate, Nelson, Lancashire, BB9 5SP. The company's principal activities and nature of its operations are disclosed in the directors' report.
1.1
Accounting convention
The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.
The financial statements have been prepared on the historical cost basis. The principal accounting policies adopted are set out below.
As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS:
1.2
Going concern
The company is reliant upon support from its shareholder companies. trueThe directors have, at the time of approving the financial statements, a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.
Whilst the directors have adopted the going concern basis set out above, the impact of the worldwide Coronavirus pandemic, Covid-19, on all businesses represents an uncertainty and the true impact of this pandemic will only become apparent over time.
The directors have given due consideration to the impact of the pandemic on the company and consider that it will have adequate resources to manage that impact.
1.3
Revenue
Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The company recognises revenue when it transfers control of a product or service to a customer.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
1.4
Inventories
Inventories 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 inventories to their present location and condition.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
1.5
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
HBB PRESTON EAST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 3 -
1.6
Financial assets
Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.
At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.
Impairment of financial assets
Financial assets, other than those measured at fair value through profit or loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
1.7
Financial liabilities
The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.
Financial liabilities are classified as measured at fair value through profit or loss when the financial liability is held for trading. A financial liability is classified as held for trading if:
it has been incurred principally for the purpose of repurchasing it in the near term, or
on initial recognition it is part of a portfolio of identified financial instruments that the manages together and has a recent actual pattern of short-term profit taking, or
it is a derivative that is not designated and effective hedging instrument.
Financial liabilities at fair value through profit or loss are stated at fair value with any gains or losses arising on remeasurement recognised in profit or loss.
Other financial liabilities
Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
HBB PRESTON EAST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 4 -
2
Critical accounting estimates and judgements
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Directors
6
6
The directors are remunerated by the shareholder companies.
4
Inventories
2021
2020
£
£
Work in progress
14,496,066
6,053,507
5
Trade and other receivables
2021
2020
£
£
Trade receivables
23,999
-
VAT recoverable
21,634
236,119
Prepayments and accrued income
46
47
45,679
236,166
6
Liabilities
Current
Non-current
2021
2020
2021
2020
Notes
£
£
£
£
Borrowings
7
7,341,098
2,771,098
Trade and other payables
8
7,673,072
1,298,457
2,322,900
15,014,170
4,069,555
-
2,322,900
HBB PRESTON EAST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 5 -
7
Borrowings
2021
2020
£
£
Borrowings held at amortised cost:
Loans from related parties
7,341,098
2,771,098
The borrowings are amounts loaned to the company by its two shareholders, Henry Boot Developments Limited and Barnfield Group Limited. Each company was owed £3,670,549 (2020 - £1,385,549) at 31 December 2021.
The loans are interest bearing at 2.5% above base rate, and are repayable on demand.
During the year Henry Boot Barnfield Limited, a company under common control, incurred expenses of £Nil (2020 - £60,000) on the company's behalf. These amounts were no longer owing at 31 December 2021.
8
Trade and other payables
Current
Non-current
2021
2020
2021
2020
£
£
£
£
Trade payables
285,810
130,128
Accruals and deferred income
204,362
88,329
Deferred consideration
7,182,900
1,080,000
2,322,900
7,673,072
1,298,457
-
2,322,900
Deferred consideration represents an estimate of the amounts, including Stamp Duty Land Tax, which will become payable for the purchase of the development site. The actual consideration will be based on the market value of the land on the payment dates and the amount of the site which can be developed.
9
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2
10
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
The senior statutory auditor was Jane Smith and the auditor was Pierce C A Limited.