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Registration number: 00606449

K.R.Hardy Estates Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 December 2021

 

K.R.Hardy Estates Limited

Contents

Company Information

1

Accountants' Report

2

Balance Sheet

3

Notes to the Unaudited Financial Statements

4 to 10

 

K.R.Hardy Estates Limited

Company Information

Directors

Mr R Hardy

Mrs A Hardy

Mr Ryan Hardy

Mr Adam Hardy

Company secretary

Mrs A Hardy

Registered office

Empire House
Empire Industrial Park
Brickyard Road, Aldridge
Walsall
WS9 8XT

Accountants

Bissell & Brown Midlands Ltd
Chartered Certified Accountants
Charter House, 56 High Street
Sutton Coldfield
West Midlands
B72 1UJ

 

Chartered Certified Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
K.R.Hardy Estates Limited
for the Year Ended 31 December 2021

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of K.R.Hardy Estates Limited for the year ended 31 December 2021 as set out on pages 3 to 10 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Association of Chartered Certified Accountants, we are subject to its ethical and other professional requirements which are detailed at
http://www.accaglobal.com/gb/en/discover/public-value/rulebook.html.

This report is made solely to the Board of Directors of K.R.Hardy Estates Limited, as a body, in accordance with the terms of our engagement letter dated 1 September 2021. Our work has been undertaken solely to prepare for your approval the accounts of K.R.Hardy Estates Limited and state those matters that we have agreed to state to the Board of Directors of K.R.Hardy Estates Limited, as a body, in this report in accordance with the requirements of the Association of Chartered Certified Accountants as detailed at http://www.accaglobal.com/gb/en/technical-activities/technical-resources-search/2009/
october/factsheet-163-audit-exempt-companies.html. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than K.R.Hardy Estates Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that K.R.Hardy Estates 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 K.R.Hardy Estates Limited. You consider that K.R.Hardy Estates 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 K.R.Hardy Estates 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.

......................................

Bissell & Brown Midlands Ltd
Chartered Certified Accountants
Charter House, 56 High Street
Sutton Coldfield
West Midlands
B72 1UJ


1 September 2022

 

K.R.Hardy Estates Limited

(Registration number: 00606449)
Balance Sheet as at 31 December 2021

Note

2021
£

2020
£

Fixed assets

 

Intangible assets

5

270

270

Tangible assets

6

168,343

158,733

Investment property

7

7,287,762

7,287,762

 

7,456,375

7,446,765

Current assets

 

Stocks

8

425,696

425,696

Debtors

9

222,523

208,283

Investments

10

349,560

352,860

Cash at bank and in hand

 

2,335,738

1,087,810

 

3,333,517

2,074,649

Creditors: Amounts falling due within one year

11

(2,330,574)

(2,347,677)

Net current assets/(liabilities)

 

1,002,943

(273,028)

Total assets less current liabilities

 

8,459,318

7,173,737

Creditors: Amounts falling due after more than one year

11

(880,000)

-

Provisions for liabilities

(94,428)

(92,823)

Net assets

 

7,484,890

7,080,914

Capital and reserves

 

Called up share capital

12

3,000

3,000

Revaluation reserve

615,461

617,944

Profit and loss account

6,866,429

6,459,970

Total equity

 

7,484,890

7,080,914

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 members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

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 Directors' Report or the Profit and Loss Account has been taken.

Approved and authorised by the Board on 1 September 2022 and signed on its behalf by:
 

.........................................

Mr R Hardy

Director

 

K.R.Hardy Estates Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021

1

General information

The company is a private company limited by share capital, incorporated in England & Wales. The company's registration number is 00606449.

The address of its registered office is:
Empire House
Empire Industrial Park
Brickyard Road, Aldridge
Walsall
WS9 8XT

These financial statements were authorised for issue by the Board on 1 September 2022.

2

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 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

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.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

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.

 

K.R.Hardy Estates Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021 (continued)

2

Accounting policies (continued)

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and Machinery

25% Reducing Balance

Fixtures, Fittings and Equipment

15% Reducing Balance and 10% Straight Line

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by the directors. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

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.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

 

K.R.Hardy Estates Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021 (continued)

2

Accounting policies (continued)

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

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.

3

Staff numbers

The average number of persons employed (including directors) during the year was 4 (2020 - 4).

4

Taxation

Tax charged/(credited) in the income statement

2021
£

2020
£

Current taxation

UK corporation tax

96,621

9,066

Deferred taxation

Arising from origination and reversal of timing differences

1,605

25,702

Tax expense in the income statement

98,226

34,768

Deferred tax

Deferred tax assets and liabilities

2021

Liability
£

Accelerated tax depreciation

31,985

Revaluation of property

62,442

 

94,427

2020

Liability
£

Accelerated tax depreciation

29,798

Revaluation of property

63,025

 

92,823

 

K.R.Hardy Estates Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021 (continued)

5

Intangible assets

Other intangible assets
 £

Total
£

Cost or valuation

At 1 January 2021

270

270

At 31 December 2021

270

270

Amortisation

At 31 December 2021

-

-

Carrying amount

At 31 December 2021

270

270

At 31 December 2020

270

270

6

Tangible assets

Fixtures and fittings
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 January 2021

105,831

164,593

270,424

Additions

-

179,313

179,313

Disposals

-

(164,593)

(164,593)

At 31 December 2021

105,831

179,313

285,144

Depreciation

At 1 January 2021

94,546

17,145

111,691

Charge for the year

3,576

49,397

52,973

Eliminated on disposal

-

(47,863)

(47,863)

At 31 December 2021

98,122

18,679

116,801

Carrying amount

At 31 December 2021

7,709

160,634

168,343

At 31 December 2020

11,285

147,448

158,733

 

K.R.Hardy Estates Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021 (continued)

7

Investment properties

2021
£

At 1 January 2021

7,287,762

At 31 December 2021

7,287,762

The investment properties were revalued in May 2015 by GBR Phoenix Beard. In the opinion of the directors there has been no change in the value of these properties at the year end.

8

Stocks

2021
£

2020
£

Work in progress

425,696

425,696

9

Debtors

2021
£

2020
£

Trade debtors

82,835

65,525

Other debtors

135,557

138,353

Prepayments

4,131

4,405

Total current trade and other debtors

222,523

208,283

10

Current asset investments

2021
£

2020
£

Other investments

349,560

352,860

 

K.R.Hardy Estates Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021 (continued)

11

Creditors

Creditors: amounts falling due within one year

Note

2021
£

2020
£

Due within one year

 

Loans and borrowings

11.1

274,860

55,011

Trade creditors

 

52,631

17,344

Amounts owed to group undertakings and undertakings in which the company has a participating interest

14

819,831

1,397,773

Taxation and social security

 

69,305

48,834

Other creditors

 

499,591

493,735

Accrued expenses

 

517,735

325,915

Corporation tax liability

 

96,621

9,065

 

2,330,574

2,347,677

Creditors: amounts falling due after more than one year

Note

2021
£

2020
£

Due after one year

 

Loans and borrowings

11.1

880,000

-

11.1

Loans and borrowings

2021
£

2020
£

Current loans and borrowings

Loans from directors

54,860

55,011

Other loans 1 - under 1yr

220,000

-

274,860

55,011

2021
£

2020
£

Non-current loans and borrowings

Other borrowings

880,000

-

Other borrowings

Compass Pension Scheme Loan A is denominated in £ with a nominal interest rate of 10.1%%, and the final instalment is due on 30 June 2026. The carrying amount at year end is £1,100,000 (2020 - £Nil).

 

K.R.Hardy Estates Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021 (continued)

12

Share capital

Allotted, called up and fully paid shares

 

2021

2020

 

No.

£

No.

£

Ordinary share of £1 each

3,000

3,000

3,000

3,000

         

Rights, preferences and restrictions

Ordinary shares have the following rights, preferences and restrictions:
Holders of the ordinary share capital have a right to vote and receive dividends.

13

Reserves

The changes to each component of equity resulting from items of other comprehensive income for the current year were as follows:

Revaluation reserve
£

Retained earnings
£

Total
£

Surplus/deficit on property, plant and equipment revaluation

582

(582)

-

Surplus/deficit on revaluation of other assets

(3,065)

-

(3,065)

(2,483)

(582)

(3,065)

The changes to each component of equity resulting from items of other comprehensive income for the prior year were as follows:

Revaluation reserve
£

Retained earnings
£

Total
£

Surplus/deficit on property, plant and equipment revaluation

93,518

(93,518)

-

Surplus/deficit on revaluation of other assets

(11,085)

-

(11,085)

82,433

(93,518)

(11,085)

14

Related party transactions

Summary of transactions with all associates

During the year the company incurred costs of £503,157 (2020: £549,330) and incurred management charges of £410,000 (2020: £395,000) from a related party. It was also charged rent of £41,000 (2020: £41,000). At the year end the company owed the related party £819,831 (2020: £1,397,773).