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Registration number: 03755403

Holker Watkin Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2021

 

Holker Watkin Limited

Contents

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

3 to 9

 

Holker Watkin Limited

Company Information

Directors

L Hartmann

S Mainiero

Registered office

1st Floor Tuition House
Wimbledon
London
SW19 4EU

Independent Auditors

Shorts
Statutory Auditor
Cedar House
63 Napier Street
Sheffield
S11 8HA

 

Holker Watkin Limited

(Registration number: 03755403)
Statement of Financial Position as at 31 December 2021

Note

2021
£

2020
£

Non current assets

 

Property, plant and equipment

5

24,671

33,300

Current assets

 

Debtors

6

4,387,299

4,074,538

Cash at bank and in hand

 

725,666

485,936

 

5,112,965

4,560,474

Creditors: Amounts falling due within one year

7

(709,023)

(551,132)

Net current assets

 

4,403,942

4,009,342

Net assets

 

4,428,613

4,042,642

Equity

 

Called up share capital

8

900

900

Capital redemption reserve

58,850

58,850

Profit and loss account

4,368,863

3,982,892

Shareholders' funds

 

4,428,613

4,042,642

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 Income statement has been taken.

The financial statements of Holker Watkin Limited were approved and authorised for issue by the Board on 7 September 2022 and signed on its behalf by:
 

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

L Hartmann
Director

 

Holker Watkin Limited

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

1

General information

Holker Watkin Limited (the 'company') is a private company limited by share capital, registered in England and Wales under the Companies Act. The address of the registered office is given on page 1.

2

Accounting policies

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 were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and in accordance with 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 functional currency of the company is considered to be pound sterling (£) because that is the currency of the primary economic environment in which the company operates. The financial statements are presented in pound sterling (£).

Revenue recognition

Revenue comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Revenue 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.

In respect of interim placements revenue is recognised when the service has been delivered to the client by the contractor.

In respect of executive search, revenue is recognised on a percentage of completion basis determined by the actual time spent on the search as a proportion of the total expected time multiplied by the estimated fee.

Tax

The tax expense for the period comprises current 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.

 

Holker Watkin Limited

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

2

Accounting policies (continued)

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.

Property, plant and equipment

Property, plant and equipment are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of property, plant and equipment includes directly attributable incremental costs incurred in their acquisition and installation.

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

Fixtures and fittings

25% straight line

Computer equipment

33% straight line

Leasehold improvements

Length of lease straight line

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.

Receivables

Receivables are amounts due from customers for services performed in the ordinary course of business.

Receivables 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 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.

Payables

Payables 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.

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

 

Holker Watkin Limited

Notes to the 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 Income statement 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.

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.

Financial instruments

The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 14 (2020 - 13).

 

Holker Watkin Limited

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

4

Taxation

Tax charged/(credited) in the income statement

2021
£

2020
£

Current taxation

UK corporation tax

93,108

83,214

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2020 - the same as the standard rate of corporation tax in the UK) of 19% (2020 - 19%).

The differences are reconciled below:

2021
£

2020
£

Profit before tax

479,079

439,547

Corporation tax at standard rate

91,025

83,514

Effect of expense not deductible in determining taxable profit (tax loss)

439

1,761

Tax increase/(decrease) from effect of capital allowances and depreciation

1,598

(2,118)

Tax increase from other short-term timing differences

46

57

Total tax charge

93,108

83,214

 

Holker Watkin Limited

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

5

Property, plant and equipment

Leasehold improvements
£

Furniture, fittings and equipment
 £

Total
£

Cost

At 1 January 2021

18,000

54,022

72,022

Additions

-

1,650

1,650

At 31 December 2021

18,000

55,672

73,672

Depreciation

At 1 January 2021

-

38,722

38,722

Charge for the year

3,600

6,679

10,279

At 31 December 2021

3,600

45,401

49,001

Carrying amount

At 31 December 2021

14,400

10,271

24,671

At 31 December 2020

18,000

15,300

33,300

6

Receivables

Note

2021
£

2020
£

Trade receivables

 

510,061

376,618

Amounts owed by related parties

11

3,638,687

3,488,302

Other receivables

 

160

160

Prepayments

 

596

750

Accrued income

 

237,795

208,708

 

4,387,299

4,074,538

 

Holker Watkin Limited

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

7

Creditors

Creditors: amounts falling due within one year

2021
£

2020
£

Due within one year

Trade payable

269,332

144,205

Social security and other taxes

124,025

182,046

Corporation tax

93,107

79,263

Other payables

12,000

12,000

Accruals

210,559

133,618

709,023

551,132

8

Share capital

Allotted, called up and fully paid shares

 

2021

2020

 

No.

£

No.

£

Ordinary shares of £0.01 each

89,997

899.97

89,997

899.97

Ordinary 'A' shares of £0.01 each

3

0.03

3

0.03

 

90,000

900.00

90,000

900.00

9

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2021
£

2020
£

Not later than one year

93,160

59,563

Later than one year and not later than five years

279,480

372,640

372,640

432,203

The amount of non-cancellable operating lease payments recognised as an expense during the year was £70,558 (2020 - £71,527).

 

Holker Watkin Limited

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

10

Financial commitments, guarantees and contingencies

Pension commitments

The company paid pension contributions of £11,775 (31 December 2020: £11,603) and had an outstanding liability of £3,439 at 31 December 2021 (31 December 2020: £1,232).

11

Related party transactions

At 31 December 2021 the company was owed £3,638,687 (2020: £3,488,302) by its parent company.
The loan is interest free and has no fixed repayment date or repayment schedule.

12

Parent and ultimate parent undertaking

The company's immediate parent is ZRG Partners LLC, incorporated in USA.

 

13

Audit report

The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 7 September 2022 was Andrew Irvine, who signed for and on behalf of Shorts.