REGISTERED NUMBER: 11078584 (England and Wales) |
Group Strategic Report, Report of the Director and |
Consolidated Financial Statements for the Year Ended 31 December 2022 |
for |
HENI HOLDINGS LIMITED |
REGISTERED NUMBER: 11078584 (England and Wales) |
Group Strategic Report, Report of the Director and |
Consolidated Financial Statements for the Year Ended 31 December 2022 |
for |
HENI HOLDINGS LIMITED |
HENI HOLDINGS LIMITED (REGISTERED NUMBER: 11078584) |
Contents of the Consolidated Financial Statements |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 3 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Financial Statements | 15 |
HENI HOLDINGS LIMITED |
Company Information |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
& Statutory Auditor |
Third Floor |
126-134 Baker Street |
London |
W1U 6UE |
HENI HOLDINGS LIMITED (REGISTERED NUMBER: 11078584) |
Group Strategic Report |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
The director presents her strategic report of the company and the group for the year ended 31 December 2022. |
REVIEW OF BUSINESS |
The company is a non-trading holding company. The group trades as an international art services business. The principal trading activities involve working with leading artists and estates across publishing, print-making, digital, film and art research and sale of non fungible tokens. |
. |
Group turnover for the period was £45.5m (2021: £38.6m), gross profit was £25.6m (2021: £25.8m), and the average number of employees was 181 (2021: 130). The group profit of £8.0m (2021: £16.3m) is indicative of the underlying performance of the group. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risks and uncertainties faced by the group are: |
Foreign Currency Risk |
The group's activities expose it to the financial risk of changes in foreign currency, principally the Euro and US dollar. The group manages the risk by using appropriate hedging techniques. |
Liquidity Risk |
The group monitors cash as part of its day-to-day control procedures. The group does not use derivative financial instruments for speculative purposes. |
Credit Risk |
The group's credit risk is primarily due to trade receivables. |
FUTURE DEVELOPMENT |
The directors expect the company to continue as a non-trading holding company, and the group to continue to trade as an international art services business, for the foreseeable future. The group continues to seek improvements in operational efficiency and effective cost management. |
KEY PERFORMANCE INDICATORS |
The directors use both financial and non-financial performance indicators to monitor the group's position. |
The key financial performance indicators are sales of £45.5m (2021: £38.6m) and gross profit of £25.6m (2021: 25.8m). |
The key non-financial performance indicators are artist and stakeholder relationships. |
The directors are of the belief that the monitoring of the above-mentioned indicators is an effective aspect of business performance review. |
ON BEHALF OF THE BOARD: |
HENI HOLDINGS LIMITED (REGISTERED NUMBER: 11078584) |
Report of the Director |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
The director presents her report with the financial statements of the company and the group for the year ended 31 December 2022. |
DIVIDENDS |
An interim dividend of 16000 per share was paid on 31 December 2022. The director recommends that no final dividend be paid. |
The total distribution of dividends for the year ended 31 December 2022 will be £ 1,600,000 . |
DIRECTORS |
Other changes in directors holding office are as follows: |
DISCLOSURE IN THE STRATEGIC REPORT |
The principal risks and uncertainties that the company is exposed to in respect of foreign currency risk, liquidity risk and credit risk have been disclosed in the strategic report. |
DIRECTOR'S RESPONSIBILITIES STATEMENT |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless she is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable her to ensure that the financial statements comply with the Companies Act 2006. She is also responsible for safeguarding the assets of the company and the group 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 director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and she has taken all the steps that she ought to have taken as a director in order to make herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
HENI HOLDINGS LIMITED (REGISTERED NUMBER: 11078584) |
Report of the Director |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
AUDITORS |
The auditors, Butler & Co LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Heni Holdings Limited |
Opinion |
We have audited the financial statements of Heni Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement 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 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2022 and of the group's 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 group 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 director's 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 group's and the parent 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 director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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. |
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 Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Heni Holdings Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director. |
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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Director's Responsibilities Statement set out on page three, the director is 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 director determines 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 director is responsible for assessing the group's and the parent 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 director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Heni Holdings 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: |
- Enquiries of management, concerning the company's policies and procedures relating to: |
o Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance |
o Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud. |
- Discussions among the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. |
- Performed analytical review procedures to identify any unusual transactions or relationships |
- Tested journal entries to identify any unusual transactions |
- Reviewed and tested material accounting estimates for reasonableness |
- Reviewed for appropriateness and reasonableness of accounting policies used. |
We also obtained an understanding of the legal and regulatory frameworks that the company operates in. |
As a result of performing the above, we did not identify any key audit matters related to the potential risk of fraud or non-compliance. |
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. |
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. |
for and on behalf of |
Chartered Accountants |
& Statutory Auditor |
Third Floor |
126-134 Baker Street |
London |
W1U 6UE |
HENI HOLDINGS LIMITED (REGISTERED NUMBER: 11078584) |
Consolidated |
Income Statement |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 | 45,469,949 | 38,613,846 |
Cost of sales | 19,846,364 | 12,861,396 |
GROSS PROFIT | 25,623,585 | 25,752,450 |
Distribution costs | - | 255,905 |
Administrative expenses | 17,251,997 | 10,337,944 |
17,251,997 | 10,593,849 |
8,371,588 | 15,158,601 |
Other operating income | 2,143,596 | 2,416,369 |
OPERATING PROFIT | 5 | 10,515,184 | 17,574,970 |
Interest receivable and similar income | 8,260 | 609 |
10,523,444 | 17,575,579 |
Impairment of fixed asset |
investments | 7 | 74,573 | - |
10,448,871 | 17,575,579 |
Interest payable and similar expenses | 8 | 267,447 | 379,022 |
PROFIT BEFORE TAXATION | 10,181,424 | 17,196,557 |
Tax on profit | 9 | 2,190,155 | 930,992 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 7,991,269 | 16,265,565 |
HENI HOLDINGS LIMITED (REGISTERED NUMBER: 11078584) |
Consolidated |
Other Comprehensive Income |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 7,991,269 | 16,265,565 |
OTHER COMPREHENSIVE INCOME |
Exchange rate movements | 666,813 | 232,978 |
Income tax relating to other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
666,813 |
232,978 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
8,658,082 |
16,498,543 |
Total comprehensive income attributable to: |
Owners of the parent | 8,658,082 | 16,498,543 |
HENI HOLDINGS LIMITED (REGISTERED NUMBER: 11078584) |
Consolidated Balance Sheet |
31 DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 | 2,883,465 | 1,907,969 |
Tangible assets | 13 | 2,676,636 | 2,095,715 |
Investments | 14 | 9,516,568 | 8,930,302 |
15,076,669 | 12,933,986 |
CURRENT ASSETS |
Stocks | 15 | 10,091,891 | 8,955,142 |
Debtors | 16 | 8,391,402 | 6,404,025 |
Cash at bank and in hand | 7,911,126 | 5,114,896 |
26,394,419 | 20,474,063 |
CREDITORS |
Amounts falling due within one year | 17 | 17,727,469 | 9,802,253 |
NET CURRENT ASSETS | 8,666,950 | 10,671,810 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
23,743,619 |
23,605,796 |
CREDITORS |
Amounts falling due after more than one year |
18 |
(5,759,216 |
) |
(12,717,343 |
) |
PROVISIONS FOR LIABILITIES | 22 | (137,666 | ) | (99,798 | ) |
NET ASSETS | 17,846,737 | 10,788,655 |
CAPITAL AND RESERVES |
Called up share capital | 23 | 100 | 100 |
Other reserves | 24 | - | 95,566 |
Retained earnings | 24 | 17,846,637 | 10,692,989 |
SHAREHOLDERS' FUNDS | 17,846,737 | 10,788,655 |
The financial statements were authorised for issue by the director and authorised for issue on 30 September 2023 and were signed by: |
Ms H M Pierce - Director |
HENI HOLDINGS LIMITED (REGISTERED NUMBER: 11078584) |
Company Balance Sheet |
31 DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 |
Tangible assets | 13 |
Investments | 14 |
CURRENT ASSETS |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 17 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
( |
) |
CAPITAL AND RESERVES |
Called up share capital | 23 |
Retained earnings | 24 | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) |
Company's profit for the financial year | 3,931,167 | 12,969 |
The financial statements were authorised for issue by the director and authorised for issue on |
HENI HOLDINGS LIMITED (REGISTERED NUMBER: 11078584) |
Consolidated Statement of Changes in Equity |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
Called up |
share | Retained | Other |
capital | earnings | reserves |
£ | £ | £ |
Balance at 1 January 2021 | 100 | (5,805,554 | ) | 95,566 |
Changes in equity |
Total comprehensive income | - | 16,498,543 | - |
Balance at 31 December 2021 | 100 | 10,692,989 | 95,566 |
Changes in equity |
Dividends | - | (1,600,000 | ) | - |
Total comprehensive income | - | 8,753,648 | (95,566 | ) |
Balance at 31 December 2022 | 100 | 17,846,637 | - |
Non-controlling | Total |
Total | interests | equity |
£ | £ | £ |
Balance at 1 January 2021 | (5,709,888 | ) | - | (5,709,888 | ) |
Changes in equity |
Total comprehensive income | 16,498,543 | - | 16,498,543 |
Balance at 31 December 2021 | 10,788,655 | - | 10,788,655 |
Changes in equity |
Dividends | (1,600,000 | ) | - | (1,600,000 | ) |
Total comprehensive income | 8,658,082 | - | 8,658,082 |
Balance at 31 December 2022 | 17,846,737 | - | 17,846,737 |
HENI HOLDINGS LIMITED (REGISTERED NUMBER: 11078584) |
Company Statement of Changes in Equity |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2021 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2021 | ( |
) | ( |
) |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2022 |
HENI HOLDINGS LIMITED (REGISTERED NUMBER: 11078584) |
Consolidated Cash Flow Statement |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 26 | 12,978,058 | 15,461,991 |
Interest paid | (12,830 | ) | (3,437 | ) |
Interest element of hire purchase payments paid |
- |
(540 |
) |
Tax paid | (3,961,440 | ) | 3,263 |
Net cash from operating activities | 9,003,788 | 15,461,277 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (1,188,144 | ) | (743,954 | ) |
Purchase of tangible fixed assets | (1,200,210 | ) | (1,517,706 | ) |
Purchase of fixed asset investments | (661,086 | ) | (8,930,302 | ) |
Sale of intangible fixed assets | 49,715 | - |
Sale of tangible fixed assets | 173,509 | 63,655 |
Sale of fixed asset investments | 78,983 | - |
Interest received | 8,260 | 609 |
Net cash from investing activities | (2,738,973 | ) | (11,127,698 | ) |
Cash flows from financing activities |
Loan repayments in year | (2,391,779 | ) | (3,238,101 | ) |
Capital repayments in year | (1,499 | ) | (4,496 | ) |
Equity dividends paid | (1,600,000 | ) | - |
Net cash from financing activities | (3,993,278 | ) | (3,242,597 | ) |
Increase in cash and cash equivalents | 2,271,537 | 1,090,982 |
Cash and cash equivalents at beginning of year |
27 |
5,114,896 |
3,714,941 |
Effect of foreign exchange rate changes | 524,693 | 308,973 |
Cash and cash equivalents at end of year |
27 |
7,911,126 |
5,114,896 |
HENI HOLDINGS LIMITED (REGISTERED NUMBER: 11078584) |
Notes to the Consolidated Financial Statements |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
1. | STATUTORY INFORMATION |
Heni Holdings Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going Concern |
The group made a profit after taxation for the period of £8.0m (2021: £16.3m). |
The director considers that the financial resources available to the group are adequate to meet its operational needs for the foreseeable future or at least 12 months from the date of approval of these accounts. Accordingly, the going concern basis has been adopted in preparing the financial statements. |
Basis of consolidation |
The group financial statements consolidate the financial statements of Heni Holdings Limited and all its subsidiary undertakings drawn up to 31 December each year. No profit and loss account is presented for Heni Holdings Limited as permitted by section 408 of the Companies Act 2006. |
Subsidiaries are consolidated from the date of their acquisition, being the date on which the Group obtains control and continue to be consolidated until the date that such control ceases. Control comprises the power to govern the financial and operating policies of the investee so as to obtain benefit from its activities. |
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used in line with those used by other members of the group. |
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. |
Critical accounting judgements and key sources of estimation uncertainty |
The preparation of the financial statements requires the directors to make significant judgements and estimates. These estimates and judgements are continually reviewed and are based on experience and other factors including expectations of future events that are believed to be reasonable under the circumstances. |
The areas of judgement and estimates applied by the directors are not considered sufficiently significant to require disclosure in these financial statements. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Turnover is recognised when the group has delivered goods and no other significant obligation remains unfulfilled that may affect the customer's acceptance of the products. |
HENI HOLDINGS LIMITED (REGISTERED NUMBER: 11078584) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Goodwill |
Goodwill, in one of the UK subsidiary companies, is being amortised evenly over its estimated useful life of ten years. |
Goodwill, in one of the foreign subsidiary companies, is being amortised evenly over its estimated useful life of fifteen years. |
Positive goodwill acquired on each business combination is capitalised, classified as an asset on the statement of financial position and amortised on a straight line basis over its useful life. |
Goodwill acquired in a business combination is, from the acquisition date, allocated to each cash generating unit that is expected to benefit from the synergies of the combination. |
If a subsidiary, associate or business is subsequently sold or discontinued, any goodwill arising on acquisition that has not been amortised through the profit and loss account is taken into account in determining the profit or loss on sale or discontinuance. |
Intangible assets |
Intangibles assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Patents and licences are amortised evenly over their estimated useful life of ten years. |
Website development costs are being amortised evenly over their useful life of ten years. |
Film production costs is being amortised evenly over its useful life of three years. |
No amortisation is provided in respect of patent costs that are still in the process of registration. |
No amortisation has been provided, in the year, in respect of film production costs as it was still under production at the year end. |
No amortisation is provided on Non Fungibles Tokens. |
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Freehold property | 3% on cost |
Leasehold improvements | over the lease term |
Plant and machinery | 33.33% and 20% on cost |
Fixtures and fittings | 33.33% and 20% on cost |
Motor vehicles | 25% and 20% on cost |
Computer equipment | 33.33% on cost |
Assets under construction are stated at cost. These assets are not depreciated until they are available for use and are reviewed for impairment at each reporting date. |
Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
HENI HOLDINGS LIMITED (REGISTERED NUMBER: 11078584) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities. |
Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Financial costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. |
Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation 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 balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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 the 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 balance sheet 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. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
HENI HOLDINGS LIMITED (REGISTERED NUMBER: 11078584) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Financial statement of foreign subsidiaries |
The assets and liabilities of foreign subsidiaries are translated from the foreign subsidiary's functional currency to the Group's reporting currency, GBP, at foreign exchange rates prevailing at the balance sheet date. Revenues and expenses of foreign subsidiaries are translated to GBP at average rates that approximate the foreign exchange rates prevailing at each of the transaction dates. Translation differences arising from the translation of the net investment in foreign subsidiaries are recognised in other comprehensive income. |
Government grants |
Government grants are accounted for on an accrual model and are recognised when there is reasonable assurance that the group has complied with the conditions attaching to the grants. |
During the year the group received grants amounting to £57,085 (2021: £73,441), in respect of the Coronavirus Job Retention Scheme, which are disclosed in the accounts as other income. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
2022 | 2021 |
£ | £ |
Editions | 22,002,505 | 17,528,469 |
Artwork mounting | 3,443,543 | 1,829,384 |
Fine Art Photography/printing | 1,114,303 | 1,756,792 |
Sale of digital assets - NFTs | 18,269,600 | 14,827,285 |
Publishing | 111,856 | 182,219 |
Others | 528,142 | 2,489,697 |
45,469,949 | 38,613,846 |
An analysis of turnover by geographical market is given below: |
2022 | 2021 |
£ | £ |
United Kingdom | 12,443,663 | 8,861,377 |
Europe | 7,431,711 | 5,234,371 |
United States of America | 23,402,206 | 18,765,984 |
Rest of the world | 2,192,369 | 5,752,114 |
45,469,949 | 38,613,846 |
HENI HOLDINGS LIMITED (REGISTERED NUMBER: 11078584) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
4. | EMPLOYEES AND DIRECTORS |
2022 | 2021 |
£ | £ |
Wages and salaries | 10,491,439 | 5,168,826 |
Social security costs | 1,241,679 | 734,892 |
Other pension costs | 251,823 | 98,141 |
11,984,941 | 6,001,859 |
The average number of employees during the year was as follows: |
2022 | 2021 |
Direct Production | 89 | 65 |
Administration | 92 | 65 |
2022 | 2021 |
£ | £ |
Directors' remuneration | 42,083 | 51,975 |
Directors' pension contributions to money purchase schemes | 1,263 | 2,625 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 1 | 2 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2022 | 2021 |
£ | £ |
Hire of plant and machinery | 90,381 | 111,142 |
Other operating leases | 1,342,256 | 1,340,880 |
Depreciation - owned assets | 518,428 | 344,419 |
Depreciation - assets on hire purchase contracts | 4,123 | 4,123 |
Profit on disposal of fixed assets | (78,528 | ) | (18,295 | ) |
Goodwill amortisation | 132,565 | 133,161 |
Patents and licences amortisation | 62,619 | 59,342 |
Website development and Film production costs amort | 32,890 | - |
Foreign exchange differences | (783,347 | ) | 442,315 |
Auditors remuneration - Non audit services | 20,373 | 29,089 |
6. | AUDITORS' REMUNERATION |
2022 | 2021 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
100,353 |
56,000 |
Auditor's remuneration for the group as a whole is £100,353 (2021: £56,000), of which £34,353 (2021; £nil) related to audit fees of Non UK subsidiaries. |
HENI HOLDINGS LIMITED (REGISTERED NUMBER: 11078584) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
7. | IMPAIRMENT OF FIXED ASSET |
INVESTMENTS |
2022 | 2021 |
£ | £ |
Impairment of investments | 74,573 | - |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2022 | 2021 |
£ | £ |
Bank interest | 5,560 | - |
Bank loan interest | 7,216 | 3,256 |
Interest on late paid tax | 54 | - |
Loan interest | 254,617 | 375,226 |
Hire purchase interest | - | 540 |
267,447 | 379,022 |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2022 | 2021 |
£ | £ |
Current tax: |
UK corporation tax | 666,290 | 904,350 |
Adjustment in respect of prior years | (27,852 | ) | - |
Foreign tax | 1,513,849 | 405 |
Total current tax | 2,152,287 | 904,755 |
Deferred tax | 37,868 | 26,237 |
Tax on profit | 2,190,155 | 930,992 |
UK corporation tax has been charged at 19 % (2021 - 19 %). |
HENI HOLDINGS LIMITED (REGISTERED NUMBER: 11078584) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
9. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2022 | 2021 |
£ | £ |
Profit before tax | 10,181,424 | 17,196,557 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2021 - 19 %) |
1,934,471 |
3,267,346 |
Effects of: |
Expenses not deductible for tax purposes | 82,553 | 27,511 |
Income not taxable for tax purposes | - | (2,391,126 | ) |
Capital allowances in excess of depreciation | (13,579 | ) | (11,730 | ) |
Utilisation of tax losses | (124,663 | ) | (16,338 | ) |
Adjustments to tax charge in respect of previous periods | (27,852 | ) | - |
Deferred tax charge / (credit) | 37,868 | 26,237 |
Tax at higher / (lower) rates in foreign subsidiaries | 131,998 | (2,673 | ) |
Losses carried forward - UK entities | 13,037 | - |
Losses carried forward - Non UK entities | 156,322 | 31,765 |
Total tax charge | 2,190,155 | 930,992 |
Tax effects relating to effects of other comprehensive income |
2022 |
Gross | Tax | Net |
£ | £ | £ |
Exchange rate movements | 666,813 | - | 666,813 |
2021 |
Gross | Tax | Net |
£ | £ | £ |
Exchange rate movements | 232,978 | - | 232,978 |
Pre acquisition loss |
Other reserves transferred on disposal |
Reserve on consolidation |
232,978 | - | 232,978 |
10. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
11. | DIVIDENDS |
2022 | 2021 |
£ | £ |
Ordinary shares of £1.00 each |
Interim | 1,600,000 | - |
HENI HOLDINGS LIMITED (REGISTERED NUMBER: 11078584) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
12. | INTANGIBLE FIXED ASSETS |
Group |
Website |
development |
Patents | and Film | Non |
and | production | Fungible |
Goodwill | licences | costs | Tokens | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2022 | 3,815,635 | 449,567 | 334,263 | 335,942 | 4,935,407 |
Additions | - | 99,824 | 960,642 | 127,678 | 1,188,144 |
Disposals | - | (9,776 | ) | - | (43,381 | ) | (53,157 | ) |
Exchange differences | 30,612 | 18,775 | - | 38,637 | 88,024 |
At 31 December 2022 | 3,846,247 | 558,390 | 1,294,905 | 458,876 | 6,158,418 |
AMORTISATION |
At 1 January 2022 | 2,874,038 | 153,400 | - | - | 3,027,438 |
Amortisation for year | 132,565 | 62,619 | 32,890 | - | 228,074 |
Eliminated on disposal | - | (3,442 | ) | - | - | (3,442 | ) |
Exchange differences | 11,672 | 11,211 | - | - | 22,883 |
At 31 December 2022 | 3,018,275 | 223,788 | 32,890 | - | 3,274,953 |
NET BOOK VALUE |
At 31 December 2022 | 827,972 | 334,602 | 1,262,015 | 458,876 | 2,883,465 |
At 31 December 2021 | 941,597 | 296,167 | 334,263 | 335,942 | 1,907,969 |
13. | TANGIBLE FIXED ASSETS |
Group |
Assets | Short |
Freehold | Leasehold | under | leasehold |
property | improvements | construction | costs |
£ | £ | £ | £ |
COST |
At 1 January 2022 | 140,420 | 1,269,774 | 538,706 | 46,373 |
Additions | 161,970 | 238,969 | - | - |
Disposals | - | - | - | - |
Exchange differences | 15,053 | - | 30,171 | - |
At 31 December 2022 | 317,443 | 1,508,743 | 568,877 | 46,373 |
DEPRECIATION |
At 1 January 2022 | 4,412 | 559,223 | - | 30,915 |
Charge for year | 13,609 | 175,488 | - | 15,458 |
Eliminated on disposal | - | - | - | - |
Exchange differences | 851 | - | - | - |
At 31 December 2022 | 18,872 | 734,711 | - | 46,373 |
NET BOOK VALUE |
At 31 December 2022 | 298,571 | 774,032 | 568,877 | - |
At 31 December 2021 | 136,008 | 710,551 | 538,706 | 15,458 |
HENI HOLDINGS LIMITED (REGISTERED NUMBER: 11078584) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
13. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixtures |
Plant and | and | Motor | Computer |
machinery | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2022 | 1,059,651 | 742,822 | 42,145 | 766,901 | 4,606,792 |
Additions | 416,920 | 110,775 | 110,787 | 160,789 | 1,200,210 |
Disposals | (591,691 | ) | (202,792 | ) | (31,724 | ) | (2,357 | ) | (828,564 | ) |
Exchange differences | 39,777 | 16,494 | - | - | 101,495 |
At 31 December 2022 | 924,657 | 667,299 | 121,208 | 925,333 | 5,079,933 |
DEPRECIATION |
At 1 January 2022 | 704,920 | 558,350 | 34,726 | 618,531 | 2,511,077 |
Charge for year | 128,290 | 73,216 | 25,144 | 91,346 | 522,551 |
Eliminated on disposal | (653,945 | ) | - | - | (655 | ) | (654,600 | ) |
Exchange differences | 15,761 | 7,657 | - | - | 24,269 |
At 31 December 2022 | 195,026 | 639,223 | 59,870 | 709,222 | 2,403,297 |
NET BOOK VALUE |
At 31 December 2022 | 729,631 | 28,076 | 61,338 | 216,111 | 2,676,636 |
At 31 December 2021 | 354,731 | 184,472 | 7,419 | 148,370 | 2,095,715 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1 January 2022 |
and 31 December 2022 | 16,491 |
DEPRECIATION |
At 1 January 2022 | 11,337 |
Charge for year | 4,123 |
At 31 December 2022 | 15,460 |
NET BOOK VALUE |
At 31 December 2022 | 1,031 |
At 31 December 2021 | 5,154 |
HENI HOLDINGS LIMITED (REGISTERED NUMBER: 11078584) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
14. | FIXED ASSET INVESTMENTS |
Group |
Unlisted |
investments |
£ |
COST |
At 1 January 2022 | 8,930,302 |
Additions | 661,086 |
Impairments | (74,820 | ) |
At 31 December 2022 | 9,516,568 |
NET BOOK VALUE |
At 31 December 2022 | 9,516,568 |
At 31 December 2021 | 8,930,302 |
Company |
Shares in |
group | Unlisted |
undertakings | investments | Totals |
£ | £ | £ |
COST |
At 1 January 2022 | 8,930,402 |
Impairments | ( |
) | (67,042 | ) |
At 31 December 2022 | 8,863,360 |
NET BOOK VALUE |
At 31 December 2022 | 8,863,360 |
At 31 December 2021 | 8,930,402 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves | ( |
) |
Profit/(loss) for the year | ( |
) |
HENI HOLDINGS LIMITED (REGISTERED NUMBER: 11078584) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
14. | FIXED ASSET INVESTMENTS - continued |
Prudence Cuming Associates Limited |
Registered office: United Kingdom |
Nature of business: Supplier of Fine Art photography and printing |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves | 148,953 | (45,779 | ) |
Profit for the year | 194,732 | 33,801 |
Grieger GmbH |
Registered office: Germany |
Nature of business: Artwork mounting |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves | 193,836 | (467,826 | ) |
Profit for the year | 661,662 | 121,680 |
Heni GmbH |
Registered office: Germany |
Nature of business: Non-trading holding company |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves | (412,532 | ) | (343,752 | ) |
(Loss)/profit for the year | (68,780 | ) | 31,472 |
Heni Arts Consulting Co Limited |
Registered office: China |
Nature of business: Sale of Artwork |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves | (79,698 | ) | 54,929 |
(Loss)/profit for the year | (134,627 | ) | 16,397 |
HENI HOLDINGS LIMITED (REGISTERED NUMBER: 11078584) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
14. | FIXED ASSET INVESTMENTS - continued |
Pierce Protocols Limited |
Registered office: United Kingdom |
Nature of business: Sale of reproduced artworks and books |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves | 1,443,014 | 2,816,058 |
Profit for the year | 2,702,956 | 3,795,026 |
HSL Fachlabor GmbH |
Registered office: Germany |
Nature of business: Image Production for Photo and Art |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves | - | (78,983 | ) |
Loss for the year | - | (170,137 | ) |
The above subsidiary was disposed on 1st January 2022. |
Heni Tech LLC |
Registered office: State of Delaware |
Nature of business: Sales of NFTs |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves | 20,103,226 | 12,851,727 |
Profit for the year | 7,251,499 | 12,851,726 |
Heni Fab Limited (formerly Heni Tech Limited) |
Registered office: United Kingdom |
Nature of business: Non trading |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves | (140 | ) | 100 |
Loss for the year | (240 | ) | - |
HENI HOLDINGS LIMITED (REGISTERED NUMBER: 11078584) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
14. | FIXED ASSET INVESTMENTS - continued |
Heni Tech Inc |
Registered office: State of Delaware |
Nature of business: Holding company |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2022 |
£ |
Aggregate capital and reserves | (555,201 | ) |
Loss for the year | (555,284 | ) |
Heni Studios LLC |
Registered office: State of Delaware |
Nature of business: Issue & Sale of digital arts in form of NFTs |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2022 |
£ |
Aggregate capital and reserves | (48,241 | ) |
Loss for the year | (48,242 | ) |
Heni Ventures LImited |
Registered office: Cayman Islands |
Nature of business: Holding investments in NFT funds |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2022 |
£ |
Aggregate capital and reserves | 29,190 |
Loss for the year | (392,374 | ) |
. |
15. | STOCKS |
Group |
2022 | 2021 |
£ | £ |
Raw materials | 489,766 | 519,899 |
Work-in-progress | 78,946 | 252,399 |
Finished goods | 8,931,846 | 5,467,703 |
Other inventories | 591,333 | 2,715,141 |
10,091,891 | 8,955,142 |
HENI HOLDINGS LIMITED (REGISTERED NUMBER: 11078584) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
16. | DEBTORS |
Group |
2022 | 2021 |
£ | £ |
Amounts falling due within one year: |
Trade debtors | 4,654,286 | 3,349,181 |
Other debtors | 65,677 | 266,892 |
Other loans | 176,273 | 174,016 |
Tax | 914,865 | - |
VAT | 106,892 | 123,170 |
Prepayments and accrued income | 2,000,469 | 2,096,557 |
7,918,462 | 6,009,816 |
Amounts falling due after more than one | year: |
Other debtors | 472,940 | 394,209 |
Aggregate amounts | 8,391,402 | 6,404,025 |
17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 19) | - | 34,158 |
Other loans (see note 19) | 4,855,191 | - |
Hire purchase contracts (see note 20) | - | 1,499 |
Trade creditors | 5,415,628 | 3,831,016 |
Amounts owed to group undertakings | - | - |
Tax | 60,101 | 954,389 |
Social security and other taxes | 613,796 | 174,406 |
Other creditors | 306,420 | 1,433,913 |
Pension liability | 42,630 | 27,131 | - | - |
Accruals and deferred income | 6,433,703 | 3,345,741 |
17,727,469 | 9,802,253 |
18. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2022 | 2021 |
£ | £ |
Bank loans (see note 19) | - | 122,241 |
Other loans (see note 19) | 5,704,588 | 12,540,542 |
Other creditors | 54,628 | 54,560 |
5,759,216 | 12,717,343 |
HENI HOLDINGS LIMITED (REGISTERED NUMBER: 11078584) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
19. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2022 | 2021 |
£ | £ |
Amounts falling due within one year or | on demand: |
Bank loans | - | 34,158 |
Other loans | 4,855,191 | - |
4,855,191 | 34,158 |
Amounts falling due between one and | two years: |
Bank loans - 1-2 years | - | 32,015 |
Other loans - 1-2 years | 1,033,282 | - |
1,033,282 | 32,015 |
Amounts falling due between two and | five years: |
Bank loans - 2-5 years | - | 90,226 |
Other loans - 2-5 years | 4,671,306 | 4,522,316 |
4,671,306 | 4,612,542 |
Amounts falling due in more than five | years: |
Repayable otherwise than by instalments |
Other loans more 5yrs non-inst | - | 8,018,226 |
The others loans of £10,559,779 (2021: £12,540,542) bear annual interest rates of Libor + 3%, Euribor + 3% and 5%. The loans are repayable within 5 years from the balance sheet date. |
20. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2022 | 2021 |
£ | £ |
Gross obligations repayable: |
Within one year | - | 1,679 |
Finance charges repayable: |
Within one year | - | 180 |
Net obligations repayable: |
Within one year | - | 1,499 |
HENI HOLDINGS LIMITED (REGISTERED NUMBER: 11078584) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
20. | LEASING AGREEMENTS - continued |
Group |
Non-cancellable | operating leases |
2022 | 2021 |
£ | £ |
Within one year | 1,003,954 | 990,996 |
Between one and five years | 2,823,808 | 3,714,592 |
In more than five years | - | 110,842 |
3,827,762 | 4,816,430 |
21. | SECURED DEBTS |
Included in other loans of £10,559,779 (2021 : £12,540,542) is a loan of £420,980 (2021 : £2,652,193) which is secured over some of the stocks held by a group company. |
22. | PROVISIONS FOR LIABILITIES |
Group |
2022 | 2021 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 77,666 | 39,798 |
Other provisions |
Provision for dilapidations | 60,000 | 60,000 |
Aggregate amounts | 137,666 | 99,798 |
Group |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1 January 2022 | 39,798 | 60,000 |
Charge to Income Statement during year | 37,868 | - |
Balance at 31 December 2022 | 77,666 | 60,000 |
23. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
Ordinary | £1.00 | 100 | 100 |
HENI HOLDINGS LIMITED (REGISTERED NUMBER: 11078584) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
24. | RESERVES |
Group |
Retained | Other |
earnings | reserves | Totals |
£ | £ | £ |
At 1 January 2022 | 10,692,989 | 95,566 | 10,788,555 |
Profit for the year | 7,991,269 | 7,991,269 |
Dividends | (1,600,000 | ) | (1,600,000 | ) |
Exchange rate movements | 666,813 | - | 666,813 |
Other reserves transferred on |
disposal | 95,566 | (95,566 | ) | - |
At 31 December 2022 | 17,846,637 | - | 17,846,637 |
Company |
Retained |
earnings |
£ |
At 1 January 2022 | ( |
) |
Profit for the year |
Dividends | ( |
) |
At 31 December 2022 |
25. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
During the year, a total of key management personnel compensation of £ 669,222 (2021 - £ 397,188 ) was paid. |
HENI HOLDINGS LIMITED (REGISTERED NUMBER: 11078584) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
26. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2022 | 2021 |
£ | £ |
Profit before taxation | 10,181,424 | 17,196,557 |
Depreciation charges | 750,621 | 541,046 |
Profit on disposal of fixed assets | (78,528 | ) | (18,295 | ) |
Impairment of investments | 74,573 | - |
Finance costs | 267,447 | 379,022 |
Finance income | (8,260 | ) | (609 | ) |
11,187,277 | 18,097,721 |
Increase in stocks | (1,136,749 | ) | (4,702,227 | ) |
Increase in trade and other debtors | (1,072,512 | ) | (1,613,423 | ) |
Increase in trade and other creditors | 4,000,042 | 3,679,920 |
Cash generated from operations | 12,978,058 | 15,461,991 |
27. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2022 |
31/12/22 | 1/1/22 |
£ | £ |
Cash and cash equivalents | 7,911,126 | 5,114,896 |
Year ended 31 December 2021 |
31/12/21 | 1/1/21 |
£ | £ |
Cash and cash equivalents | 5,114,896 | 3,714,941 |
28. | ANALYSIS OF CHANGES IN NET DEBT |
Exchange | Other |
rates | non-cash |
At 1/1/22 | Cash flow | movements | changes | At 31/12/22 |
£ | £ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 5,114,896 | 2,271,537 | 524,693 | 7,911,126 |
5,114,896 | 2,271,537 | 524,693 | 7,911,126 |
Debt |
Finance leases | (1,499 | ) | 1,499 | - | - | - |
Debts falling due |
within 1 year | (34,158 | ) | (4,821,033 | ) | - | - | (4,855,191 | ) |
Debts falling due |
after 1 year | (12,662,783 | ) | 7,212,812 | - | (254,617 | ) | (5,704,588 | ) |
(12,698,440 | ) | 2,393,278 | - | (254,617 | ) | (10,559,779 | ) |
Total | (7,583,544 | ) | 4,664,815 | 524,693 | (254,617 | ) | (2,648,653 | ) |
HENI HOLDINGS LIMITED (REGISTERED NUMBER: 11078584) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
29. | DISPOSAL OF BUSINESS |
Disposal of HSL Fachlabor GmbH on 01-01-2022 |
£ |
Sales proceeds | - |
Net Assets / (liabilities) value at disposal |
Intangible fixed assets | 2,890 |
Tangible fixed assets | 47,254 |
Stock | 74,285 |
Debtors | 60,328 |
Cash at bank | 44,959 |
Creditors | (305,041 | ) |
Bank loan | (3,658 | ) |
(78,983 | ) |
Profit on disposal of subsidiary | (78,983 | ) |