Company registration number 11180836 (England and Wales)
HOSPITALITY AND RETAIL SYSTEMS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
PAGES FOR FILING WITH REGISTRAR
HOSPITALITY AND RETAIL SYSTEMS LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 8
HOSPITALITY AND RETAIL SYSTEMS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
4
11,112
3,412
Current assets
Debtors
5
655,836
439,427
Cash at bank and in hand
161,491
282,920
817,327
722,347
Creditors: amounts falling due within one year
6
(644,647)
(558,089)
Net current assets
172,680
164,258
Total assets less current liabilities
183,792
167,670
Provisions for liabilities
(2,111)
(648)
Net assets
181,681
167,022
Capital and reserves
Called up share capital
7
100
100
Profit and loss reserves
181,581
166,922
Total equity
181,681
167,022
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on 30 September 2023
S. Walder
Director
Company Registration No. 11180836
HOSPITALITY AND RETAIL SYSTEMS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2021
100
56,940
57,040
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
109,982
109,982
Balance at 31 December 2021
100
166,922
167,022
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
14,659
14,659
Balance at 31 December 2022
100
181,581
181,681
HOSPITALITY AND RETAIL SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
1
Accounting policies
Company information
Hospitality and Retail Systems Limited is a private company limited by shares incorporated in England and Wales. The registered office and business address is The Old Brew House, Brewery Common, Mortimer, Reading, Berkshire, RG7 3JE.
The Company number is 11180836. The principal activity of the Company is the implementation of hardware and software services to the hospitality and retail sector.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT. The fair value of consideration takes into account trade discounts.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion.
1.3
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and equipment
3 years straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.4
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
HOSPITALITY AND RETAIL SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 4 -
1.5
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
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 company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, and loans from fellow group companies are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
HOSPITALITY AND RETAIL SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 5 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.9
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.12
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
HOSPITALITY AND RETAIL SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 6 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
8
3
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2022
5,340
Additions
10,710
At 31 December 2022
16,050
Depreciation and impairment
At 1 January 2022
1,928
Depreciation charged in the year
3,010
At 31 December 2022
4,938
Carrying amount
At 31 December 2022
11,112
At 31 December 2021
3,412
5
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
101,963
143,984
Amounts owed by group undertakings
287,204
184,188
Other debtors
266,669
111,255
655,836
439,427
HOSPITALITY AND RETAIL SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 7 -
6
Creditors: amounts falling due within one year
2022
2021
£
£
Loans from fellow group undertakings
97,762
93,512
Trade creditors
15,863
71,968
Amounts owed to group undertakings
132,814
65,913
Corporation tax
8,676
26,391
Other taxation and social security
20,093
31,627
Deferred income
152,377
142,376
Accruals
217,062
126,302
644,647
558,089
7
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100
100
100
100
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
The senior statutory auditor was Simon Thomas ACA.
The auditor was Kench & Co Ltd.
HOSPITALITY AND RETAIL SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
9
Related party transactions
At the start of the year, Hospitality and Retail Systems GmbH owed the Company £174,047. During the year the Company invoiced Hospitality and Retail Systems GmbH, a fellow group subsidiary, £96,252, (2021: £nil). Also during the year the Company paid Hospitality and Retail Systems GmbH £10,141 (2021: £10,187) and was invoiced £387 by Hospitality and Retail Systems GmbH. At the year end, Hospitality and Retail Systems GmbH owed the Company £280,053.
At the start of the year, the Company owed Hospitality and Retail Systems s.r.o. £43,761 (2021: £43,761) and this amount was still owed at the year end.
At the start of the year, the Company owed Hospitality and Retail Systems EOOD £12,010, another fellow group subsidiary. During the year the Company repaid £12,010 (2021: £2,927) and was invoiced £2,038 (2021: 14,937). An exchange loss of £49 arose as a result of year end retranslation. At the year end, the Company owed Hospitality and Retail Systems EOOD £2,087.
During the year, Hospitality and Retail Systems S.L. invoiced £1,958 (2021: £453) to the Company. An exchange loss of £21 arose as a result of year end retranslation. At the year end, the Company owed Hospitality and Retail Systems S.L £1,979.
During the year, HRS Limited invoiced the Company £47,058. Also during the year, the Company invoiced £6,596 to HRS limited and paid HRS Limited £168. At the year end, the Company owed HRS Limited £40,294.
All other related party transactions were made under normal market conditions.
10
Parent company
HRS (Hospitality and Retail Systems) Ltd (Cyprus), a Company which is registered in Cyprus, is the Company's immediate parent by virtue of it's 100% shareholding. Group accounts are available at the registered office, Theklas Lysioti, 29, Cassandra Centre, Floor 3, 3030, Limassol, Cyprus.
J. Vaughan is the ultimate controlling party by virtue of her 100% shareholding in HRS (Hospitality and Retail Systems) Ltd (Cyprus).
11
Non-audit services provided by auditor
In common with many businesses of our size and nature we use our auditor to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.