REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 DECEMBER 2022 |
FOR |
HANBOROUGH ENTERPRISES LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 DECEMBER 2022 |
FOR |
HANBOROUGH ENTERPRISES LIMITED |
HANBOROUGH ENTERPRISES LIMITED (REGISTERED NUMBER: 07216831) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 DECEMBER 2022 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Statement of Comprehensive Income | 9 |
Balance Sheet | 10 |
Statement of Changes in Equity | 11 |
Cash Flow Statement | 12 |
Notes to the Cash Flow Statement | 13 |
Notes to the Financial Statements | 14 |
HANBOROUGH ENTERPRISES LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 DECEMBER 2022 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
The Old Chapel |
Union Way |
Witney |
Oxfordshire |
OX28 6HD |
HANBOROUGH ENTERPRISES LIMITED (REGISTERED NUMBER: 07216831) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 DECEMBER 2022 |
The directors present their strategic report for the year ended 30 December 2022. |
PRINCIPAL ACTIVITY AND REVIEW OF BUSINESS |
The principal activity of the company is that of a vehicle leasing broker. The company's principal trading name is Bridle Vehicle Leasing. |
2022 was another challenging year. The availability of stock did not improve as hoped, which continued to affect vehicle delivery timescales. The ongoing impact of Covid- 19, along with Brexit and the outbreak of war in Ukraine were all contributing factors. The availability of minibuses has been severely affected, which has hampered not only our ability to provide new buses to prospective clients, but impacted the number of own book vehicles that can be replaced with new, so that we can monetise our residual value position. |
The UK automotive industry saw a reduction in vehicle registration numbers in 2022. (GOV.UK - Latest figures for 2022 show that the number of new registrations was down 4% in the UK compared with 2021). |
In Nov 2022, Alan Carreras (Sales Director) resigned. His roles and responsibilities were assumed by the remaining Directors. |
The company's turnover for the year ended 30 December 2022 was £21,839,278 (2021 - £20,075,749), an increase of 9%. The company's profit before tax and dividends for the year was £158,528 (2021 - £561,836). The company's profit before interest, amortisation, depreciation and investment adjustments for the year ended 30 December 2022 was £1,687,323 (2021 - £1,838,717). |
The company continues to invest in its systems, its team and the appropriate training requirements to ensure we are best placed to serve our clients by providing a service that exceeds expectations. The company has also continued with its strategy to add to its 'own book' fleet which it is considered will bring additional financial returns in the future. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors have assessed the key risk of the business to be the continued demand for new vehicles within the UK. Given the various income streams of the company other principle risks are considered to be: |
- availability of funding |
- availability of stock |
- residual value risk |
- maintenance expenditure risk |
- financing cost risk |
- interest rate risk |
- staffing |
FINANCIAL KEY PERFORMANCE INDICATORS |
Key Performance Indicators (KPI's) are used by the company to review the overall performance of the business. Monthly management accounts are produced and reviewed and are compared to budgeted figures across our various branches. These reviews allow us to take the appropriate actions when deemed necessary. |
KPI's are also used to monitor lead generation, sales orders and delivery targets. |
ON BEHALF OF THE BOARD: |
HANBOROUGH ENTERPRISES LIMITED (REGISTERED NUMBER: 07216831) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 DECEMBER 2022 |
The directors present their report with the financial statements of the company for the year ended 30 December 2022. |
DIVIDENDS |
The total distribution of dividends for the year ended 30 December 2022 will be £376,986. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in note 26 to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 31 December 2021 to the date of this report. |
Other changes in directors holding office are as follows: |
COVID-19 PANDEMIC |
The additional risk of the impact of COVID-19 on the company has been assessed by the directors. The directors do not expect COVID-19 to have a material impact on the company's future operations. |
GOING CONCERN |
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. |
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). 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
HANBOROUGH ENTERPRISES LIMITED (REGISTERED NUMBER: 07216831) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 DECEMBER 2022 |
AUDITORS |
In accordance with the company's articles, a resolution proposing that DSA Prospect Audit Limited be reappointed as auditor of the company will be put at a General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HANBOROUGH ENTERPRISES LIMITED |
Opinion |
We have audited the financial statements of Hanborough Enterprises Limited (the 'company') for the year ended 30 December 2022 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 company's affairs as at 30 December 2022 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. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HANBOROUGH ENTERPRISES LIMITED |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 |
HANBOROUGH ENTERPRISES 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: |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- | the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- | we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the industry; |
- | we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental (including Waste Electrical and Electronic Equipment recycling (WEEE) Regulations 2013) and health and safety legislation; |
- | we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- | identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- | making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- | considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- | performed analytical procedures to identify any unusual or unexpected relationships; |
- | tested journal entries to identify unusual transactions; |
- | assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
- | investigated the rationale behind significant or unusual transactions |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- | agreeing financial statement disclosures to underlying supporting documentation; |
- | reading the minutes of meetings of those charged with governance; |
- | enquiring of management as to actual and potential litigation and claims; and |
- | reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
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 |
HANBOROUGH ENTERPRISES LIMITED |
for and on behalf of |
The Old Chapel |
Union Way |
Witney |
Oxfordshire |
OX28 6HD |
HANBOROUGH ENTERPRISES LIMITED (REGISTERED NUMBER: 07216831) |
STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
108,481 | 687,241 |
Other operating income |
OPERATING PROFIT | 5 |
Income from shares in group undertakings |
Interest receivable and similar income |
379,103 | 89,697 |
487,584 | 801,323 |
Amounts written off investments | 6 | 104,967 | - |
382,617 | 801,323 |
Interest payable and similar expenses | 7 |
PROFIT BEFORE TAXATION |
Tax on profit | 8 | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Prior year adjustment | (3,521,906 | ) |
TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT |
(2,864,772 |
) |
HANBOROUGH ENTERPRISES LIMITED (REGISTERED NUMBER: 07216831) |
BALANCE SHEET |
30 DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 16 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Share premium | 22 |
Retained earnings | 22 | ( |
) |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
HANBOROUGH ENTERPRISES LIMITED (REGISTERED NUMBER: 07216831) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 DECEMBER 2022 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 31 December 2020 |
Prior year adjustment | - | (3,521,906 | ) | - | ( |
) |
As restated | ( |
) |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | 657,134 | - | 657,134 |
Balance at 30 December 2021 | ( |
) | 6,278,065 |
Changes in equity |
Issue of share capital | - | ( |
) | ( |
) |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | 4,567,033 | - | 4,567,033 |
Balance at 30 December 2022 | 6,968,112 |
HANBOROUGH ENTERPRISES LIMITED (REGISTERED NUMBER: 07216831) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid | ( |
) | ( |
) |
Tax paid | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Purchase of fixed asset investments | - | (395,040 | ) |
Sale of intangible fixed assets |
Sale of tangible fixed assets |
Sale of fixed asset investments |
Impairment of investments |
Interest received |
Dividends received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
New loans in year |
Loan repayments in year | ( |
) |
Capital repayments in year | ( |
) |
Amount withdrawn by directors | (1,429,793 | ) | (642,754 | ) |
Share issue |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year | 2 | 48,645 | 477,070 |
Cash and cash equivalents at end of year | 2 | ( |
) |
HANBOROUGH ENTERPRISES LIMITED (REGISTERED NUMBER: 07216831) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 DECEMBER 2022 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2022 | 2021 |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Government grants | ( |
) |
Finance costs | 224,089 | 239,487 |
Finance income | (379,103 | ) | (89,697 | ) |
1,203,253 | 1,724,635 |
Decrease/(increase) in stocks | ( |
) |
(Increase)/decrease in trade and other debtors | ( |
) |
Increase/(decrease) in trade and other creditors | ( |
) |
Cash generated from operations |
2. | 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 30 December 2022 |
30.12.22 | 31.12.21 |
£ | £ |
Cash and cash equivalents | 173,785 | 260,547 |
Bank overdrafts | ( |
) | ( |
) |
(144,123 | ) | 48,645 |
Year ended 30 December 2021 |
30.12.21 | 31.12.20 |
£ | £ |
Cash and cash equivalents | 260,547 | 477,070 |
Bank overdrafts | ( |
) |
48,645 | 477,070 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 31.12.21 | Cash flow | At 30.12.22 |
£ | £ | £ |
Net cash |
Cash at bank | 260,547 | (86,762 | ) | 173,785 |
Bank overdrafts | (211,902 | ) | (106,006 | ) | (317,908 | ) |
48,645 | ( |
) | (144,123 | ) |
Debt |
Finance leases | (2,807,900 | ) | (314,444 | ) | (3,122,344 | ) |
Debts falling due within 1 year | - | (10,000 | ) | (10,000 | ) |
Debts falling due after 1 year | - | (28,079 | ) | (28,079 | ) |
(2,807,900 | ) | (352,523 | ) | (3,160,423 | ) |
Total | (2,759,255 | ) | (545,291 | ) | (3,304,546 | ) |
HANBOROUGH ENTERPRISES LIMITED (REGISTERED NUMBER: 07216831) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 DECEMBER 2022 |
1. | STATUTORY INFORMATION |
Hanborough Enterprises 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 |
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. |
Preparation of consolidated financial statements |
The financial statements contain information about Hanborough Enterprises Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Hanborough Capital Limited, Tamarisk House, North Leigh Business Park, North Leigh, OX29 6SW. |
Turnover |
Turnover represents amounts receivable from principal activities, net of value added tax and trade discounts. |
Revenue from the sale of cars is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on delivery of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term. |
Goodwill |
Goodwill, being the amount paid in connection with the acquisition of businesses since 2011, is being amortised over its estimated useful life of twenty years. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost less impairment. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
HANBOROUGH ENTERPRISES LIMITED (REGISTERED NUMBER: 07216831) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
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 instruments. |
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 unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. 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, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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 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. |
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. |
HANBOROUGH ENTERPRISES LIMITED (REGISTERED NUMBER: 07216831) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Cash at bank and in hand |
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. |
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. |
Fixed asset investments |
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available. |
Impairment of fixed assets |
At each reporting period end date, the company reviews the carrying amount of its tangible and intangible 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment. |
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. |
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation reserve. |
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. When an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior year. 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 reserve. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2022 | 2021 |
£ | £ |
HANBOROUGH ENTERPRISES LIMITED (REGISTERED NUMBER: 07216831) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 DECEMBER 2022 |
4. | EMPLOYEES AND DIRECTORS |
2022 | 2021 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2022 | 2021 |
Directors | 4 | 3 |
Sales and administration | 86 | 65 |
2022 | 2021 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director for the year ended 30 December 2022 is as follows: |
2022 |
£ |
Emoluments etc |
Pension contributions to money purchase schemes |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2022 | 2021 |
£ | £ |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Goodwill amortisation |
Auditors remuneration |
6. | AMOUNTS WRITTEN OFF INVESTMENTS |
2022 | 2021 |
£ | £ |
Investment write down | 104,967 | - |
HANBOROUGH ENTERPRISES LIMITED (REGISTERED NUMBER: 07216831) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 DECEMBER 2022 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2022 | 2021 |
£ | £ |
Bank interest |
Other interest paid |
Hire purchase |
8. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
2022 | 2021 |
£ | £ |
Current tax: |
UK corporation tax | ( |
) |
Deferred tax |
Tax on profit | ( |
) |
Reconciliation of total tax charge/(credit) 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 |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes | ( |
) |
Income not taxable for tax purposes | ( |
) | ( |
) |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Utilisation of tax losses | ( |
) |
Adjustments to tax charge in respect of previous periods | ( |
) |
Group relief | 9,904 | - |
Deferred tax movement | 82,160 | 43,053 |
Tax losses carried forward | 76,801 | - |
Total tax charge/(credit) | 91,495 | (95,298 | ) |
9. | DIVIDENDS |
2022 | 2021 |
£ | £ |
Ordinary shares of £1 each |
Interim | 376,986 | 438,515 |
HANBOROUGH ENTERPRISES LIMITED (REGISTERED NUMBER: 07216831) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 DECEMBER 2022 |
10. | INTANGIBLE FIXED ASSETS |
Computer |
Goodwill | software | Totals |
£ | £ | £ |
Cost |
At 31 December 2021 |
Additions |
Disposals | ( |
) | ( |
) |
At 30 December 2022 |
Amortisation |
At 31 December 2021 |
Amortisation for year |
Eliminated on disposal | ( |
) | ( |
) |
At 30 December 2022 |
Net book value |
At 30 December 2022 |
At 30 December 2021 |
11. | TANGIBLE FIXED ASSETS |
Fixtures |
Plant and | and | Motor | Computer |
machinery | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
Cost |
At 31 December 2021 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 30 December 2022 |
Depreciation |
At 31 December 2021 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 30 December 2022 |
Net book value |
At 30 December 2022 |
At 30 December 2021 |
HANBOROUGH ENTERPRISES LIMITED (REGISTERED NUMBER: 07216831) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 DECEMBER 2022 |
11. | TANGIBLE FIXED ASSETS - continued |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
Cost |
At 31 December 2021 |
Additions |
Disposals | ( |
) | ( |
) |
At 30 December 2022 |
Depreciation |
At 31 December 2021 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 30 December 2022 |
Net book value |
At 30 December 2022 |
At 30 December 2021 |
12. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
Cost |
At 31 December 2021 |
Disposals | ( |
) |
Impairments | ( |
) |
At 30 December 2022 |
Net book value |
At 30 December 2022 |
At 30 December 2021 |
Details of the company's subsidiaries at 30 December 2022 are as follows: |
Name of undertaking | Registered office | Nature of business | Class of shares held | % Held |
Alternative Route Finance Limited | England and Wales | Dormant | A and B Ordinary | 100% |
Plan (GB) Limited | England and Wales | Vehicle leasing broker |
A Ordinary | 85% |
Fulton Network Limited | England and Wales | Vehicle leasing broker |
Ordinary and Ordinary B |
100% |
Kew Vehicle Leasing Limited | England and Wales | Vehicle leasing broker |
Ordinary | 100% |
Fleetprocure Limited | England and Wales | Vehicle procurement platform |
A Ordinary | 51% |
Sprint Contracts Limited | England and Wales | Vehicle leasing broker |
Ordinary | 100% |
SRK Specialist Cars Limited | England and Wales | Used vehicle sales | Ordinary | 51% |
Bridle Leasing Limited | England and Wales | Dormant | Ordinary | 100% |
Bridle Group Limited | England and Wales | Dormant | Ordinary | 100% |
Go Green Leasing Limited | England and Wales | Dormant | Ordinary | 100% |
HANBOROUGH ENTERPRISES LIMITED (REGISTERED NUMBER: 07216831) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 DECEMBER 2022 |
13. | STOCKS |
2022 | 2021 |
£ | £ |
Stocks |
14. | DEBTORS |
2022 | 2021 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Deferred tax asset |
Prepayments |
Amounts falling due after more than one year: |
Amounts owed by group undertakings |
Aggregate amounts |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Bank loans and overdrafts (see note 17) |
Hire purchase contracts (see note 18) |
Trade creditors |
Amounts owed to group undertakings |
Social security and other taxes |
Other creditors |
Accrued expenses |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2022 | 2021 |
£ | £ |
Bank loans (see note 17) |
Hire purchase contracts (see note 18) |
Amounts owed to group undertakings |
Other creditors |
Director's loan accs > 1 yr | 32,560 | 1,462,353 |
17. | LOANS |
An analysis of the maturity of loans is given below: |
2022 | 2021 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Bank loans |
HANBOROUGH ENTERPRISES LIMITED (REGISTERED NUMBER: 07216831) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 DECEMBER 2022 |
17. | LOANS - continued |
2022 | 2021 |
£ | £ |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2022 | 2021 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable operating | leases |
2022 | 2021 |
£ | £ |
Within one year |
Between one and five years |
19. | SECURED DEBTS |
As at 30 December 2022 four fixed charges were in place over specified assets. There was also a debenture in place with a fixed and floating charge. The floating charge covers all the property or undertaking of the company. |
Tangible fixed assets with a carrying amount of £3,321,053 (2021 - £2,810,536) have been pledged to secure borrowings of the company. The company is not allowed to pledge these assets as security for other borrowings. |
20. | DEFERRED TAX |
£ |
Balance at 31 December 2021 | ( |
) |
Charge to Statement of Comprehensive Income during year |
Balance at 30 December 2022 | ( |
) |
HANBOROUGH ENTERPRISES LIMITED (REGISTERED NUMBER: 07216831) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 DECEMBER 2022 |
21. | CALLED UP SHARE CAPITAL |
Alloted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | £ | £ |
403,100 | A ordinary | £1 | 403,100 | 403,100 |
10,000 | B ordinary | £1 | 10,000 | 10,000 |
25,500 | C ordinary | £1 | 25,500 | 25,500 |
25,500 | D ordinary | £1 | 25,500 | 25,500 |
25,500 | E ordinary | £1 | 25,500 | 25,500 |
10,200 | F ordinary | £1 | 10,200 | 10,200 |
10,200 | G ordinary | £1 | 10,200 | 10,200 |
119,500 | H ordinary | £1 | 119,500 | 119,500 |
629,500 | 629,500 |
Each class of share is entitled to full voting rights, dividend rights and distributions including in the event of a winding up of the company. |
22. | RESERVES |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 31 December 2021 | ( |
) | 5,648,565 |
Profit for the year |
Dividends | ( |
) | ( |
) |
Share premium transfer | 4,500,000 | (4,500,000 | ) | - |
At 30 December 2022 | 5,338,612 |
23. | PENSION COMMITMENTS |
The amount recognised in profit or loss as an expense for defined contribution plans amounted to £87,705 (2021 : £50,576). |
24. | ULTIMATE PARENT COMPANY |
Hanborough Capital Limited is regarded by the directors as being the company's ultimate parent company. |
The company's financial statements are consolidated into the ultimate holding company's financial statements and are available from the parent's registered office. The registered office is Tamarisk House, North Leigh Business Park, North Leigh, OX29 6SW. |
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. |
During the year rent and service charges of £95,801 (2021 : £80,389) was paid to an associated company. |
During the year consultancy of £0 (2021 : £600,000) was paid to an associated company. |
26. | POST BALANCE SHEET EVENTS |
There have been no significant events affecting the Company since the reporting date which require amendment to, or disclosure in, the financial statements. |