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REGISTERED NUMBER: 03157860 (England and Wales)















HOLDAN LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021






HOLDAN LIMITED (REGISTERED NUMBER: 03157860)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2021










Page

Company information 1

Strategic report 2 to 3

Report of the directors 4 to 5

Report of the independent auditors 6 to 9

Income statement 10

Other comprehensive income 11

Statement of financial position 12 to 13

Statement of changes in equity 14 to 15

Notes to the financial statements 16 to 30


HOLDAN LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31ST DECEMBER 2021







Directors: S B Fenby
S Lamb
A B Leonhardsen





Registered office: Midwich Limited
Vinces Road
Diss
Norfolk
IP22 4YT





Registered number: 03157860 (England and Wales)





Auditors: Wags LLP t/a Wagstaffs
Chartered Accountants and Statutory Auditors
Richmond House
Walkern Road
Stevenage
Hertfordshire
SG1 3QP

HOLDAN LIMITED (REGISTERED NUMBER: 03157860)

STRATEGIC REPORT
FOR THE YEAR ENDED 31ST DECEMBER 2021


The directors present their strategic report for the year ended 31st December 2021.

The principal activity of Holdan Limited (the "Company") is the distribution of Professional video, Photography, Broadcast & Cinematography products to bona fide trade customers.

Holdan Limited's strategy is to achieve long term, sustainable growth through providing the highest level of service to customers and vendor partners.

Review of business
Holdan Limited's revenue in 2021 was impacted by the remaining aftereffects of Global Pandemic, especially in quarter 1 and quarter 2, where we saw customers delaying projects due to uncertainty in the market, as well as global component shortages and logistical issues. In September 2021 Holdan completed acquisition of Intro 2020, a photography distributor with long outstanding reputation within the photo segment.

Although turnover shrank by 14.73%, the Company managed to increase their gross profit margin from 13.05% in 2020 to 17.71% in 2021. Holdan Limited have in 2021 made investment in staff on the back of the Intro 2020 acquisition, and to meet future growth opportunities resulting in a healthy operating profit margin of 5.07%, which was a decrease of 0.17% on the margin achieved in the prior year.

Principal risks and uncertainties
In common with other businesses of a similar nature, the Company is exposed to a variety of risks and uncertainties.

The Directors believe the principal risks are:

- The general decline in economic activity and uncertainty in the current volatile market
- Deterioration of the creditworthiness of key customers
- Dependency on key personnel
- Significant reduction in the availability of credit insurance
- Loss, or a significant disruption in the trading ability, of a major customer or supplier

Policies are in place to monitor, manage and mitigate each of these risks.

Overall, the Directors believe the Company is in a strong position and are confident of achieving good results in 2022.

Future developments
The Directors' plan is to continue to strengthen the Company's offering and investment in further technical sales and service / support.


HOLDAN LIMITED (REGISTERED NUMBER: 03157860)

STRATEGIC REPORT
FOR THE YEAR ENDED 31ST DECEMBER 2021

Key performance indicators
2021 2020
Revenue growth (14.73%) (24.62%)
Gross profit 17.71% 13.05%
Operating profit 5.07% 5.24%
Stock days 83 39
Debtor days 48.1 48.1

In this challenging economic environment, the Company aims to maintain revenue levels and grow both gross and net profit margins.

In addition, the aim is to maintain a sensible balance between strong operating cash flow and having stock levels sufficient to provide for our customers' and vendors' requirements.

The Board believes that the Company's high value-add specialist distribution model remains fundamentally valid, and that Holdan's strong technical skills, combined with the product breadth and geographical spread, means that the business is well placed for future growth.

On behalf of the board:





A B Leonhardsen - Director


26th July 2022

HOLDAN LIMITED (REGISTERED NUMBER: 03157860)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31ST DECEMBER 2021


The directors present their report with the financial statements of the company for the year ended 31st December 2021.

Dividends
Profit for the year, after taxation, amounted to £973,623 (2020: £1,428,945). Particulars of dividends paid and proposed are detailed in the notes to the financial statements.

Directors
The directors shown below have held office during the whole of the period from 1st January 2021 to the date of this report.

S B Fenby
S Lamb
A B Leonhardsen

Disclosure in the strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's Strategic Report information required by the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the Directors' Report. It has done so in respect of future developments.

Statement of directors' responsibilities
The directors are responsible for preparing the Strategic report, the Report of the directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 101 'Reduced Disclosure Framework'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement as to disclosure of information to auditors
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

HOLDAN LIMITED (REGISTERED NUMBER: 03157860)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31ST DECEMBER 2021


Auditors
The auditors, Wags LLP t/a Wagstaffs, are deemed to be reappointed in accordance with Section 487(2) of the Companies Act 2006.

On behalf of the board:





A B Leonhardsen - Director


26th July 2022

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HOLDAN LIMITED


Opinion
We have audited the financial statements of Holdan Limited (the 'company') for the year ended 31st December 2021 which comprise the Income statement, Other comprehensive income, Statement of financial position, Statement of changes in equity and Notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 'Reduced Disclosure Framework' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31st December 2021 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic report and the Report of the directors, but does not include the financial statements and our Report of the auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HOLDAN LIMITED


Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic report and the Report of the directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic report and the Report of the directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Report of the directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of directors' responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HOLDAN LIMITED


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- We obtained an understanding of the legal and regulatory framework applicable to the company and the sector in which they operate. We determined that the following laws and regulations were most significant: the Companies Act 2006 and UK corporate taxation laws.

- We obtained an understanding of how the company is complying with those legal and regulatory frameworks by making inquiries to the management. We corroborated our inquiries through our review of board minutes and papers provided by those charged with governance.

- We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team include:

- identifying and assessing the design effectiveness of controls management has in place to
prevent and detect fraud;

- understanding how those charged with governance considered and addressed the potential
for override of controls or other inappropriate influence over the financial reporting process;

- challenging assumptions and judgments made by management in its significant accounting
estimates;

- identifying and testing journal entries, in particular any journal entries posted with unusual
account combinations; and
- assessing the extent of compliance with the relevant laws and regulations.

- We have reviewed the financial statements and considered whether they are consistent with our understanding of the entity or indicate a previously unrecognised risk of material misstatement that could be due to fraud.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HOLDAN LIMITED


Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




N D Savjani FCA (Senior Statutory Auditor)
for and on behalf of Wags LLP t/a Wagstaffs
Chartered Accountants and Statutory Auditors
Richmond House
Walkern Road
Stevenage
Hertfordshire
SG1 3QP

26th July 2022

HOLDAN LIMITED (REGISTERED NUMBER: 03157860)

INCOME STATEMENT
FOR THE YEAR ENDED 31ST DECEMBER 2021

2021 2020
Notes £    £   

REVENUE 3 22,909,666 26,868,432

Cost of sales (18,852,931 ) (23,363,181 )
GROSS PROFIT 4,056,735 3,505,251

Administrative expenses (2,895,583 ) (2,336,298 )
1,161,152 1,168,953

Other operating income - 352,602
OPERATING PROFIT 1,161,152 1,521,555

Interest receivable and similar income 395 5,250
1,161,547 1,526,805

Interest payable and similar expenses 6 (158,110 ) (115,554 )
PROFIT BEFORE TAXATION 7 1,003,437 1,411,251

Tax on profit 8 (29,814 ) 17,694
PROFIT FOR THE FINANCIAL YEAR 973,623 1,428,945

HOLDAN LIMITED (REGISTERED NUMBER: 03157860)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31ST DECEMBER 2021

2021 2020
Notes £    £   

PROFIT FOR THE YEAR 973,623 1,428,945


OTHER COMPREHENSIVE INCOME
Item that will not be reclassified to profit or loss:
Share based payments 161,705 98,920
Income tax relating to item that will not be
reclassified to profit or loss

27,580

(296

)
OTHER COMPREHENSIVE INCOME FOR
THE YEAR, NET OF INCOME TAX

189,285

98,624
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

1,162,908

1,527,569

HOLDAN LIMITED (REGISTERED NUMBER: 03157860)

STATEMENT OF FINANCIAL POSITION
31ST DECEMBER 2021

2021 2020
Notes £    £   
FIXED ASSETS
Owned
Intangible assets 10 431,033 -
Property, plant and equipment 11 1,492,843 1,432,250
Right-of-use
Property, plant and equipment 11, 15 12,663 34,040
1,936,539 1,466,290

CURRENT ASSETS
Inventories 12 4,319,511 2,525,785
Debtors 13 5,283,337 6,495,043
Cash at bank 672,692 428,380
10,275,540 9,449,208
CREDITORS
Amounts falling due within one year 14 (2,619,977 ) (2,132,995 )
NET CURRENT ASSETS 7,655,563 7,316,213
TOTAL ASSETS LESS CURRENT
LIABILITIES

9,592,102

8,782,503

PROVISIONS FOR LIABILITIES 18 (139,118 ) (137,827 )
NET ASSETS 9,452,984 8,644,676

CAPITAL AND RESERVES
Called up share capital 19 809 809
Share premium 20 9,399 9,399
Capital redemption reserve 20 35 35
Share based payments 20 357,779 168,494
Retained earnings 20 9,084,962 8,465,939
SHAREHOLDERS' FUNDS 9,452,984 8,644,676

HOLDAN LIMITED (REGISTERED NUMBER: 03157860)

STATEMENT OF FINANCIAL POSITION - continued
31ST DECEMBER 2021


The financial statements were approved by the Board of Directors and authorised for issue on 26th July 2022 and were signed on its behalf by:





A B Leonhardsen - Director


HOLDAN LIMITED (REGISTERED NUMBER: 03157860)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31ST DECEMBER 2021

Called up
share Retained Share
capital earnings premium
£    £    £   

Balance at 1st January 2020 809 7,353,494 9,399

Changes in equity
Profit for the year - 1,428,945 -
Other comprehensive income - - -
Total comprehensive income - 1,428,945 -
Dividends - (316,500 ) -
Balance at 31st December 2020 809 8,465,939 9,399

Changes in equity
Profit for the year - 973,623 -
Other comprehensive income - - -
Total comprehensive income - 973,623 -
Dividends - (354,600 ) -
Balance at 31st December 2021 809 9,084,962 9,399

HOLDAN LIMITED (REGISTERED NUMBER: 03157860)

STATEMENT OF CHANGES IN EQUITY - continued
FOR THE YEAR ENDED 31ST DECEMBER 2021

Capital Share
redemption based Total
reserve payments equity
£    £    £   

Balance at 1st January 2020 35 69,870 7,433,607

Changes in equity
Profit for the year - - 1,428,945
Other comprehensive income - 98,624 98,624
Total comprehensive income - 98,624 1,527,569
Dividends - - (316,500 )
Balance at 31st December 2020 35 168,494 8,644,676

Changes in equity
Profit for the year - - 973,623
Other comprehensive income - 189,285 189,285
Total comprehensive income - 189,285 1,162,908
Dividends - - (354,600 )
Balance at 31st December 2021 35 357,779 9,452,984

HOLDAN LIMITED (REGISTERED NUMBER: 03157860)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2021


1. STATUTORY INFORMATION

Holdan Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparation
These financial statements have been prepared in accordance with Financial Reporting Standard 101 "Reduced Disclosure Framework" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 101 "Reduced Disclosure Framework":

the requirements of paragraphs 45(b) and 46 to 52 of IFRS 2 Share-based Payment;
the requirements of paragraph 24(6) of IFRS 6 Exploration for and Evaluation of Mineral
Resources;
the requirements of IFRS 7 Financial Instruments: Disclosures;
the requirements of paragraphs 91 to 99 of IFRS 13 Fair Value Measurement;
the requirements of paragraph 52 the second sentence of paragraph 89, and paragraphs 90, 91
and 93 of IFRS 16 Leases;
the requirements of paragraph 58 of IFRS 16;
the requirements of the second sentence of paragraph 110 and paragraphs 113(a), 114, 115,
118, 119(a) to (c), 120 to 127 and 129 of IFRS 15 Revenue from Contracts with Customers;
the requirement in paragraph 38 of IAS 1 Presentation of Financial Statements to present
comparative information in respect of:
- paragraph 73(e) of IAS 16 Property, Plant and Equipment;
the requirements of paragraphs 10(d), 10)(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D and
111 of IAS 1 Presentation of Financial Statements;
the requirements of IAS 7 Statement of Cash Flows;
the requirements of paragraphs 17 and 18A of IAS 24 Related Party Disclosures;
the requirements in IAS 24 Related Party Disclosures to disclose related party transactions
entered into between two or more members of a group.

HOLDAN LIMITED (REGISTERED NUMBER: 03157860)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2021


2. ACCOUNTING POLICIES - continued

Critical accounting judgements and key sources of estimation uncertainty
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

Useful economic life of tangible assets
The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and physical condition of the assets.

Inventory provisioning
The company distributes pro-video, broadcast, film and AV products, which are subject to changing consumer demands and fashion trends. As a result it is necessary to consider the recoverability of the cost of inventory and the associated provisioning required. When calculating the inventory provision, management considers the nature and condition of the inventory, as well as applying assumptions around the anticipated saleability of finished goods.

Revenue
Revenue represents the total invoice value, excluding value added tax, trade discounts and all other taxes of sales made during the year.

Revenue recognition
Revenue is recognised when goods have been delivered and services supplied to customers such that risks and rewards of ownership have transferred to them.

Intangible fixed assets and goodwill
Intangible fixed assets and goodwill are amortised to the income statement over 5 years, a period in which the directors deem an appropriate representation of the useful economic lives of such costs incurred by the company.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property - 2% on cost
Fixtures and fittings - 33% on cost and 25% on cost

HOLDAN LIMITED (REGISTERED NUMBER: 03157860)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2021


2. ACCOUNTING POLICIES - continued

Financial instruments
Financial assets and financial liabilities are recognised when the company becomes party to the contractual provisions of the financial instrument.

Derivative financial instruments are accounted for at fair value through profit or loss. All changes in an instruments fair value are included in finance costs or finance income. The fair values are determined by reference to active markets.

Financial assets:
The company classifies its financial assets as 'loans and receivables' and assesses at each balance sheet date whether there is objective evidence that a financial asset or a group of financial assets is impaired.

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets.

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment.

A provision for impairment of trade receivables 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. Significant financial difficulty, high probability of bankruptcy or default are considered indicators that the trade receivable is impaired. The amount of the provision is the difference between the asset's carrying amount and the present value of the estimated future cash flows discounted at the original effective interest rate. The loss is recognised in the income statement. When a trade receivable is uncollectible, it is written-off against the allowance account for trade receivables. Subsequent recoveries of amounts previously written-off are credited to the income statement.

Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and all substantial risks and rewards are transferred.

Financial liabilities:
The company's financial liabilities include trade and other payables, borrowings and derivative financial instruments.

Borrowings include amounts advanced under invoice discounting facilities. Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classified as financial liabilities.

Trade and other payables and borrowings are recognised at fair value less transaction costs and subsequently measured at amortised costs using the effective interest method ('EIR' method).

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees and costs that are an integral part of the EIR. The EIR amortisation is included in finance costs in the income statement.


HOLDAN LIMITED (REGISTERED NUMBER: 03157860)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2021


2. ACCOUNTING POLICIES - continued

Loans and borrowings are classified as current liabilities unless the company has an unconditional right to defer the settlement of the liability for at least 12 months after the date of the Statement of Financial Position.

A financial liability is derecognised when it is extinguished, discharged, cancelled or expires.

Stocks
Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Stocks comprise consumable items and goods held for resale. Stocks are valued at the lower of cost and net realisable value, after making due allowances for obsolete and slow moving items, on receipt of the stock. Costs are based on the method most appropriate to the type of inventory class, but usually on a first-in-first-out basis. Net realisable value is based on the estimated selling price less any estimated completion or selling costs.

When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs.

At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is recognised the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.

Trade and other debtors
Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts.

Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the Statement of Financial Position, bank overdrafts (where applicable) are shown within borrowings or current liabilities.

Trade and other payables
Trade and other payables are initial recognised at fair value and thereafter at amortised cost using the effect interest method, unless the effect of discounting would be immaterial, in which case they are stated at cost.

HOLDAN LIMITED (REGISTERED NUMBER: 03157860)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2021


2. ACCOUNTING POLICIES - continued

Taxation
Tax for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred tax assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the Statement of Financial Position date.

Deferred tax
Deferred tax is recognised in respect of all material timing differences that have originated but not reversed at the Statement of Financial Position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Leases
Leases are recognised as finance leases. The lease liability is initially recognised at the present value of the lease payments which have not yet been made and subsequently measured under the amortised cost method. The initial cost of the right-of-use asset comprises the amount of the initial measurement of the lease liability, lease payments made prior to the lease commencement date, initial direct costs and the estimated costs of removing or dismantling the underlying asset per the conditions of the contract.

Where ownership of the right-of-use asset transfers to the lessee at the end of the lease term, the right-of-use asset is depreciated over the asset’s remaining useful life. If ownership of the right-of-use asset does not transfer to the lessee at the end of the lease term, depreciation is charged over the shorter of the useful life of the right-of-use asset and the lease term.

HOLDAN LIMITED (REGISTERED NUMBER: 03157860)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2021


2. ACCOUNTING POLICIES - continued

Employee benefits
The company provides a range of benefits to employees, including paid holiday arrangements, a share option scheme and defined contribution pensions plans.

Short term benefits, including holiday pay and similar non-monetary benefits, are recognised as an expense in the period in which the service is received.

Details of the share option scheme are included in the policy entitled 'share-based payments'..

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the income statement in the period to which they relate. The assets of the scheme are held separately from those of the company in an independently administered fund.

Share based payments
Equity-settled share-based payments to employees and directors are measured at the fair value of the equity instrument. The fair value of the equity-settled transactions with employees and directors is recognised as an expense over the vesting period. The fair value of the equity instruments are determined at the date of grant, taking into account market-based vesting conditions. The fair value of goods and services received are measured by reference to the fair value of the options.

The fair value of the share options are measured using the Black-Scholes model. The expected life used in the models is adjusted based on management's best estimate of the effects of non-transferability, exercise restrictions and behavioural considerations.

The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in which the performance and/or service conditions are fulfilled, ending on the date on which the relevant employees (or other beneficiaries) become fully entitled to the award ("the vesting date").

The cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date reflects the extent reflects the extent to which the vesting period has expired and the Group's best estimate of the number of equity instruments that will ultimately vest.

The income statement charge or credit for a period represents the movement in cumulative expense recognised as at the beginning and end of that period.

HOLDAN LIMITED (REGISTERED NUMBER: 03157860)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2021


2. ACCOUNTING POLICIES - continued

Share based payments
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market condition, which are treated as vesting irrespective of whether or no the market condition is satisfied, provided that all other performance and/or service conditions are satisfied. Where the terms of an equity-settled award are modified, the minimum expense recognised is the expense as if the terms had not been modified. An additional expense is recognised for any modification, which increases the total fair value of the share-based payment arrangement, or is otherwise beneficial to the employee as measured at the date of modification.

Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yet recognised for the award is recognised immediately. However, if a new award is substituted for the cancelled award, and designated as a replacement award on the date it is granted, the cancelled and new awards are treated as if they were a modification of the original award, as described in the previous paragraph.

Where an equity-settled award is forfeited, the cumulative charge is expensed up to the date of forfeiture is credited to the income statement.

3. REVENUE

The revenue and profit before taxation are attributable to the one principal activity of the company.

4. EMPLOYEES AND DIRECTORS
2021 2020
£    £   
Wages and salaries 1,985,935 1,655,248
Social security costs 202,434 164,842
Other pension costs 94,139 73,402
2,282,508 1,893,492

The average number of employees during the year was as follows:
2021 2020

Sales and distribution 35 35
Administration 12 12
47 47

5. DIRECTORS' EMOLUMENTS
2021 2020
£    £   
Directors' remuneration 177,585 309,359
Directors' pension contributions to money purchase schemes 8,355 10,451

HOLDAN LIMITED (REGISTERED NUMBER: 03157860)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2021


5. DIRECTORS' EMOLUMENTS - continued

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 1 2

The directors manage the company and as such are the only key management personnel of the company. Key management personnel compensation is therefore equal to directors remuneration shown above.

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2021 2020
£    £   
Bank interest 524 1,076
Sales financing charges (4,119 ) 15,558
Share based payments 161,705 98,920
158,110 115,554

7. PROFIT BEFORE TAXATION

The profit before taxation is stated after charging/(crediting):
2021 2020
£    £   
Cost of inventories recognised as expense 18,613,980 23,171,167
Depreciation - owned assets 51,737 37,363
Depreciation - assets on hire purchase contracts or finance leases 21,377 28,372
Other intangible assets amortisation 37,415 -
Auditors' remuneration 15,000 15,000
Foreign exchange losses / (gains) 102,256 (13,681 )
Fair value movement on financial instruments (11,651 ) -

8. TAXATION

Analysis of tax expense/(income)
2021 2020
£    £   
Current tax:
Amendment to prior years - (24,402 )

Deferred tax 29,814 6,708
Total tax expense/(income) in income statement 29,814 (17,694 )

HOLDAN LIMITED (REGISTERED NUMBER: 03157860)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2021


8. TAXATION - continued

Factors affecting the tax expense
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2021 2020
£    £   
Profit before income tax 1,003,437 1,411,251
Profit multiplied by the standard rate of corporation tax in the UK
of 19% (2020 - 19%)

190,653

268,138

Effects of:
Expenses not deductible for tax purposes 24,997 12,178
Capital allowances in excess of depreciation (3,635 ) -
Depreciation in excess of capital allowances - 9,056
Utilisation of tax losses (212,015 ) (289,372 )
Amendment to prior years - (24,402 )
Deferred tax 29,814 6,708
Tax expense/(income) 29,814 (17,694 )

Tax effects relating to effects of other comprehensive income

2021
Gross Tax Net
£    £    £   
Share based payments 161,705 27,580 189,285

2020
Gross Tax Net
£    £    £   
Share based payments 98,920 (296 ) 98,624

9. DIVIDENDS
2021 2020
£    £   
Ordinary shares of £0.10 each
Interim 354,600 316,500

The directors propose no payment of a final dividend for the year (2020: £Nil).

HOLDAN LIMITED (REGISTERED NUMBER: 03157860)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2021


10. INTANGIBLE FIXED ASSETS
Other
intangible
Goodwill assets Totals
£    £    £   
Cost
Additions 20,000 448,448 468,448
At 31st December 2021 20,000 448,448 468,448
Amortisation
Amortisation for year - 37,415 37,415
At 31st December 2021 - 37,415 37,415
Net book value
At 31st December 2021 20,000 411,033 431,033

11. PROPERTY, PLANT AND EQUIPMENT
Fixtures
Freehold and
property fittings Totals
£    £    £   
Cost
At 1st January 2021 1,529,073 199,454 1,728,527
Additions 34,655 77,675 112,330
At 31st December 2021 1,563,728 277,129 1,840,857
Depreciation
At 1st January 2021 115,852 146,385 262,237
Charge for year 36,432 36,682 73,114
At 31st December 2021 152,284 183,067 335,351
Net book value
At 31st December 2021 1,411,444 94,062 1,505,506
At 31st December 2020 1,413,221 53,069 1,466,290

12. INVENTORIES
2021 2020
£    £   
Stocks 4,319,511 2,525,785

HOLDAN LIMITED (REGISTERED NUMBER: 03157860)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2021


13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021 2020
£    £   
Trade debtors 2,187,516 2,901,113
Amounts owed by group undertakings 1,483,890 710,003
Other debtors 1,275,785 2,401,522
Tax 311,465 93,087
VAT - 90,322
Prepayments and accrued income 24,681 298,996
5,283,337 6,495,043

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021 2020
£    £   
Trade creditors 1,539,223 1,824,481
Social security and other taxes 80,116 53,416
VAT 58,321 -
Other creditors 620,710 64,147
Accruals and deferred income 321,607 190,951
2,619,977 2,132,995

HOLDAN LIMITED (REGISTERED NUMBER: 03157860)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2021


15. LEASING

Right-of-use assets

Property, plant and equipment

2021 2020
£    £   
Cost or valuation
At 1st January 2021 80,206 86,150
Additions - 19,335
Disposals (16,075 ) (25,279 )
64,131 80,206

Depreciation
At 1st January 2021 46,166 43,073
Charge for year 21,377 28,372
Eliminated on disposal (16,075 ) (25,279 )
51,468 46,166

Net book value 12,663 34,040

16. SECURED DEBTS

The following secured debts are included within creditors:

2021 2020
£    £   
Other creditors 481,209 -

Security has been provided to the company's bankers and invoice finance provider by way of a fixed and floating charge over the undertaking and all property and assets present and future.

HOLDAN LIMITED (REGISTERED NUMBER: 03157860)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2021


17. FINANCIAL INSTRUMENT RISK EXPOSURE

The company's operations expose it to degrees of financial risk, including foreign currency risk. This note describes the company's objectives, policies and process for managing foreign currency risk and the method to measure this.

The company is largely able to manage the exchange rate risk arising from operations through the natural matching of payments and receipts denominated in similar currencies. Any exposure tends to to be on the payment side and is mainly in relation to the strength of the reporting currency (GBP) against that of the Euro (EUR) and US Dollar (USD). The transactional risk is considered manageable as the proportion of procurement that is not sourced in the reporting currency of the company is small, however the company does purchase foreign currency forward contracts to further mitigate foreign exchange risk.

Materially valued cash balances in currencies other than the reporting currency are held and the company does not currently take action to mitigate the exchange rate risk arising from this. Intercompany group balances between trading entities in currencies other than the reporting currency are short term in nature and present minimal foreign currency risk. The company does not consider the foreign exchange risk arising from financial assets and liabilities at the reporting date to be material.

18. PROVISIONS FOR LIABILITIES
2021 2020
£    £   
Deferred tax 139,118 137,827

Deferred
tax
£   
Balance at 1st January 2021 137,827
Charge to Income statement during year 28,871
Other comprehensive income (27,580 )
Balance at 31st December 2021 139,118

HOLDAN LIMITED (REGISTERED NUMBER: 03157860)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2021


19. CALLED UP SHARE CAPITAL




Allotted, issued and fully paid:
Number: Class: Nominal 2021 2020
value: £    £   
4,926 Ordinary £0.10 493 493
1,427 A Ordinary £0.10 143 143
1,734 B Ordinary £0.10 173 173
809 809

20. RESERVES
Capital Share
Retained Share redemption based
earnings premium reserve payments Totals
£    £    £    £    £   

At 1st January 2021 8,465,939 9,399 35 168,494 8,643,867
Profit for the year 973,623 973,623
Dividends (354,600 ) (354,600 )
Other comprehensive income - - - 189,285 189,285
At 31st December 2021 9,084,962 9,399 35 357,779 9,452,175

21. RELATED PARTY DISCLOSURES

The company has availed of the exemption under FRS 101 in relation to the disclosure of transactions with group undertakings.

22. PARENT RELATIONSHIPS

The company is a wholly owned subsidiary of Midwich Limited, a company incorporated in England and Wales and with registered office is Vinces Road, Diss, Norfolk, IP22 4YT.

Midwich Group plc is the ultimate parent company. Midwich Group plc is incorporated in England and Wales and with registered office is Vinces Road, Diss, Norfolk, IP22 4YT.

Midwich Group plc is the parent undertaking of the smallest and largest group which prepares publicly available consolidated financial statements for the year ended 31 December 2021. Copies of the consolidated financial statements may be obtained from Companies House and the registered office of Vinces Road, Diss, Norfolk, IP22 4YT.

As at 31 December 2021 Midwich Group plc had no ultimate controlling party (2020: none).

HOLDAN LIMITED (REGISTERED NUMBER: 03157860)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2021


23. SHARE-BASED PAYMENT TRANSACTIONS

The company has a share option scheme for purchasing shares in the ultimate parent. Options are exercisable at a price of £0.01 and the vesting period is three years. If the options remain unexercised after a period of three years from the date of grant the options expire. Options are forfeited if the employee leaves the company before the options vest. The options outstanding at 31 December 2021 had an exercise price of £0.01 and a weighted average remaining contractual life one and a half years. In 2021, no options were vested.