Registration number:
HPA Commercial Limited
for the Year Ended 31 December 2021
HPA Commercial Limited
(Registration number: 09265417)
Balance Sheet as at 31 December 2021
Note |
2021 |
2020 |
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Fixed assets |
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Intangible assets |
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|
|
Current assets |
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Debtors |
|
|
|
Cash at bank and in hand |
- |
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Net liabilities |
( |
( |
|
Capital and reserves |
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Called up share capital |
1 |
1 |
|
Retained earnings |
(459,860) |
(574,943) |
|
Shareholders' deficit |
(459,859) |
(574,942) |
For the financial year ending 31 December 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
• |
|
• |
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.
Approved and authorised by the
......................................... |
HPA Commercial Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable in respect of royalties receivable in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
Tax
The tax expense for the period comprises current tax payable and deferred tax.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Intangible assets
Separately capitalised trademarks and associated expenditure directly attributable to the acquisition of trademarks are shown at historical cost.
Trademarks, licences and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Trademarks |
10% straight line |
HPA Commercial Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Going Concern
HPA Commercial Limited ("HPAC") was incorporated on 15 October 2014 and is a wholly owned subsidiary of the Hurlingham Polo Association ("the HPA"). HPAC's principal activity is to develop, market and commercially exploit the HPA brand in the UK and worldwide.
In common with many new businesses HPAC's initial period of trading has seen expenditure exceed income and as at 31 December 2021 the company has net liabilities of £431,935.
All of HPAC's working capital requirements have been met by its parent company and, at 31 December 2021, £520,061 was due to HPA. The debt is unsecured, interest free and repayable on demand.
In 2017, HPAC was granted trademarks of the Hurlingham Polo brand in a number of jurisdictions around the world and the company is now able to exploit these commercially.
In 2019, HPA transferred its commercial operations to HPAC.
Since 1 January 2019, HPAC has continued to trade in accordance with its agreed business plan and a number of franchise agreements, which will generate income for the company, have now been finalised and signed. Other such agreements are under negotiation and are expected to be agreed within the foreseeable future.
The HPA has been providing the cash required to meet HPAC's working capital and the directors of the company have received assurances that such further funds that may be necessary in order to meet its liabilities as they fall due will be forthcoming from the HPA. In addition, the HPA has indicated that it will not seek repayment of any amounts already advanced unless HPAC would remain solvent following such repayment.
On the understanding that the company will be generating increased amounts of income, and that the HPA will continue to support it for the foreseeable future, being not less than a year from the date on which these financial statements were signed, the directors are of the view that HPAC is a going concern and these financial statements have been prepared on the assumption that this will be the case.
In confirming it's intention to support HPA Commercial, The Hurlingham Polo Association has taken in to account the effects of the Covid-19 pandemic.
HPA Commercial Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021
Taxation |
2021 |
2020 |
||
£ |
£ |
||
Corporation tax |
27,924 |
16,712 |
|
Deferred tax |
- |
- |
|
27,924 |
16,712 |
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
Intangible assets |
Trademarks, patents and licenses |
Total |
|
Cost or valuation |
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At 1 January 2021 |
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At 31 December 2021 |
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Amortisation |
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At 1 January 2021 |
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Amortisation charge |
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At 31 December 2021 |
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Carrying amount |
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At 31 December 2021 |
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At 31 December 2020 |
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Debtors |
Current |
2021 |
2020 |
Trade debtors |
|
|
Prepayments |
- |
|
Other debtors |
- |
|
|
|
HPA Commercial Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021
Creditors |
Creditors: amounts falling due within one year
2021 |
2020 |
|
Due within one year |
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Trade creditors |
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Amounts owed to parent company (see note 7) |
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Taxation and social security |
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Other creditors |
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Related party transactions |
Included within creditors at the year end is £520,061 (2020: £584,825) payable to The Hurlingham Polo Association. The decrease of £64,764 during the year comprises the net balance of cash received of £153,706 (2020: £51,114) less expenditure incurred of £88,942 (2020: £118,315) and paid for by the Hurlingham Polo Association on behalf of the company.
8.
Controlling party
The company is a wholly owned subsidiary of The Hurlingham Polo Association, a company registered in England and Wales.
The Hurlingham Polo Association is under the common control of its members and therefore there is no single individual or party that can, or does, have overall control of The Hurlingham Polo Association.