REGISTERED NUMBER: |
REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 5TH APRIL 2023 |
FOR |
HFMC GROUP HOLDINGS LTD |
REGISTERED NUMBER: |
REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 5TH APRIL 2023 |
FOR |
HFMC GROUP HOLDINGS LTD |
HFMC GROUP HOLDINGS LTD (REGISTERED NUMBER: 05484681) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 5TH APRIL 2023 |
Page |
Company Information | 1 |
Report of the Directors | 2 |
Report of the Independent Auditors | 4 |
Income Statement | 7 |
Other Comprehensive Income | 8 |
Statement of Financial Position | 9 |
Statement of Changes in Equity | 10 |
Notes to the Financial Statements | 11 |
HFMC GROUP HOLDINGS LTD |
COMPANY INFORMATION |
FOR THE YEAR ENDED 5TH APRIL 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
9 Appold Street |
London |
EC2A 2AP |
HFMC GROUP HOLDINGS LTD (REGISTERED NUMBER: 05484681) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 5TH APRIL 2023 |
The directors present their report with the financial statements of the company for the year ended 5th April 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of a holding company for the HFMC Wealth group of companies. |
REVIEW OF BUSINESS |
The results for 2023 reflect a turnover of £663,699 (2022: £763,526) and trading profit of £467,429 (2022:£27,855). |
The Board monitors the progress of the company's performance and the individual strategic elements on a monthly basis by reference to three KPI's; |
1. Profits |
2. Cashflow |
3. Turnover |
DIRECTORS |
The directors shown below have held office during the whole of the period from 6th April 2022 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing 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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Moore Kingston Smith LLP, are deemed to be re-appointed under section 487(2) of the Companies Act 2006. |
HFMC GROUP HOLDINGS LTD (REGISTERED NUMBER: 05484681) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 5TH APRIL 2023 |
This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HFMC GROUP HOLDINGS LTD |
Opinion |
We have audited the financial statements of HFMC Group Holdings Ltd (the 'company') for the year ended 5th April 2023 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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 5th April 2023 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 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Report of the Directors has been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HFMC GROUP HOLDINGS LTD |
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 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; or |
- | the directors were not entitled to take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page two, 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. |
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: |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. |
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company. |
Our approach was as follows: |
- We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation. |
- We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HFMC GROUP HOLDINGS LTD |
- We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance. |
- We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations. |
- Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required. |
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through 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. |
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 |
9 Appold Street |
London |
EC2A 2AP |
HFMC GROUP HOLDINGS LTD (REGISTERED NUMBER: 05484681) |
INCOME STATEMENT |
FOR THE YEAR ENDED 5TH APRIL 2023 |
2023 | 2022 |
Notes | £ | £ |
REVENUE |
Administrative expenses | ( |
) | ( |
) |
(207,965 | ) | (158,273 | ) |
Other operating income |
OPERATING LOSS | 6 | ( |
) | ( |
) |
Exceptional item | 7 | ( |
) | ( |
) |
(285,453 | ) | (237,078 | ) |
Income from participating interests |
Income from fixed asset investments | 8 |
835,080 | 425,554 |
Interest payable and similar expenses | 9 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 10 | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
HFMC GROUP HOLDINGS LTD (REGISTERED NUMBER: 05484681) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 5TH APRIL 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
HFMC GROUP HOLDINGS LTD (REGISTERED NUMBER: 05484681) |
STATEMENT OF FINANCIAL POSITION |
5TH APRIL 2023 |
2023 | 2022 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Property, plant and equipment | 12 |
Investments | 13 |
CURRENT ASSETS |
Debtors | 14 |
Cash at bank and in hand |
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 | 20 |
Share premium |
Capital redemption reserve |
Retained earnings |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
HFMC GROUP HOLDINGS LTD (REGISTERED NUMBER: 05484681) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 5TH APRIL 2023 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 6th April 2021 |
Changes in equity |
Total comprehensive income | - | - |
Balance at 5th April 2022 |
Changes in equity |
Total comprehensive income | - | - |
Balance at 5th April 2023 |
HFMC GROUP HOLDINGS LTD (REGISTERED NUMBER: 05484681) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 5TH APRIL 2023 |
1. | COMPANY INFORMATION |
The entity is a Limited Company incorporated in the United Kingdom. Its principal place of business is HFM House, New Road , Weybridge Surrey, KT13 9BW, England. |
2. | STATUTORY INFORMATION |
HFMC Group Holdings Ltd is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 pound. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of paragraph 33.7. |
Preparation of consolidated financial statements |
The financial statements contain information about HFMC Group Holdings Ltd 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, HFMC Wealth Holdings Limited, Russell House, 140 High Street, Edgware, Middlesex, United Kingdom, HA8 7LW |
Turnover |
Revenue is measured at the fair value of the consideration received or receivable , excluding discounts, value added tax and other sales taxes. Revenue arises from the rendering of services and is recognised when the service is provided and in accordance with the stage of completion. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
An impairment loss has been recognised in the Statement of Comprehensive Income, following an assessment at the Statement of Financial Position date indicating the recoverable amount was less than its carrying value. |
Intangible fixed assets are being amortised evenly over their estimated useful life of 6 and 7 years. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Computer equipment | - |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
HFMC GROUP HOLDINGS LTD (REGISTERED NUMBER: 05484681) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 5TH APRIL 2023 |
3. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred 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 statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Debtors |
Short term debtors are measured at transaction price less any impairments. Loans receivable are initially measured at fair value, net of transaction costs and where material are measured subsequently at amortised costs using the effective interest method , less any impairment. |
Creditors |
Short term creditors are measured at the transaction price. Other financial liabilities are measured initially at fair value, net of transaction costs, and where material are measured subsequently at amortised cost using the effective interest method. |
Taxation |
Current tax is recognised for the amount of Corporation tax payable in respect of the taxable profit for the current or past reporting periods using the tax rates and laws that have been enacted or substantively enacted by the reporting date. |
Deferred tax is recognised as a liability or an asset if transactions or events that give the company the obligation to pay more tax in future or a right to pay less tax in future have occurred by the Balance sheet date, |
Fixed asset investments |
Investments comprise investments in unquoted equity instruments measured at cost less any impairment. |
Revenue recognition |
Turnover represents the amounts receivable for the provision of financial services. |
Revenue is measured at the fair value of the consideration received or receivable net of sales tax, trade discounts and customer credits. |
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 its financial instruments. |
Financial instruments are recognised in the company's Statement of Financial Position 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. |
HFMC GROUP HOLDINGS LTD (REGISTERED NUMBER: 05484681) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 5TH APRIL 2023 |
3. | ACCOUNTING POLICIES - continued |
Basic financial assets |
Basic financial assets, which include trade and other debtors and cash and bank balances, are initially measured at transaction price including transaction costs and where material are subsequently measured at amortised cost using the effective interest method, less any impairment. |
Other financial assets |
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and where material the changes in fair value are recognised in the Statement of Total Comprehensive Income, except that investments in equity instruments that are not publicly traded and whose fair value cannot be measured reliably are measured at cost less impairment. |
Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the life of the debt instrument to the net carrying amount on initial recognition. |
Impairment of financial assets |
Financial assets , other than those held at fair value are assessed for indicators of impairment at each reporting end date. |
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in the Statement of Total Comprehensive Income |
Derecognition of financial assets |
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity. |
Basic financial liabilities |
Basic financial liabilities, including trade and other payables and loans from group undertakings that are classified as debt are initially measured 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 the market rate of interest. |
Trade creditors are obligations to pay for goods or services that have been acquired that have been acquired in the ordinary course of business from suppliers. Accounts payables are classified as current liabilities if a payment is due within one year or less. If not, they are present as non current liabilities. Short term creditors are initially recognised at transaction price and where material are subsequently measured at amortised cost using the effective interest method |
Cash and cash equivalents |
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short term liquid investments with original maturities of three months or less. |
Equity instruments |
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company. |
HFMC GROUP HOLDINGS LTD (REGISTERED NUMBER: 05484681) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 5TH APRIL 2023 |
3. | ACCOUNTING POLICIES - continued |
Government grants |
Government grants are recognised where there is reasonable assurance that the grant will be received. Loans provided and/or guaranteed by government that represent market rates of interest are recorded at the amount of the proceeds received and recognised within Borrowings. Those loans provided and/or guaranteed by government that represent below market rates of interest are measured at inception at their fair value and recognised within Borrowings, with the differential to the proceeds received recorded within Deferred income and released to the relevant financial statement caption in the Income statement on an accruals basis. Grants that compensate the Company for expenses incurred are recognised in the Income statement in the relevant financial statement caption on an accruals basis in the periods in which the expenses are recognised. |
Coronavirus Business Interruption Loan Scheme (CBILS) |
On 27th January 2021 the company received £1,600,000 loan. This is split into two tranches of £800,000. The first tranche is repayable over 5 years, with interest incurred at 7.75%. The second tranche is interest only incurred at 7.75%, with the capital being repaid at the end of the 5 year period. The initial 12 months interest payments made by the Government will be recognised as grant income. |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
General Staff | 5 | 6 |
Directors | 6 | 6 |
All staff costs relate to the Administration and Operations of the Company |
5. | DIRECTORS' EMOLUMENTS |
2023 | 2022 |
£ | £ |
Directors' remuneration |
6. | OPERATING LOSS |
The operating loss is stated after charging: |
2023 | 2022 |
£ | £ |
Depreciation - owned assets |
Other intangible fixed assets amortisation |
Auditors' remuneration |
HFMC GROUP HOLDINGS LTD (REGISTERED NUMBER: 05484681) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 5TH APRIL 2023 |
7. | EXCEPTIONAL ITEMS |
2023 | 2022 |
£ | £ |
Exceptional item | ( |
) | ( |
) |
As part of the group's growth objectives, the company engaged external advisors to identify suitable joint venture partners or investors following which a rationalisation program was undertaken leading to more detailed negotiation with the selected investor. |
The exceptional item represents costs incurred to the year end by the company in engaging on the above exercise. |
8. | INCOME FROM FIXED ASSET INVESTMENTS |
Dividends during the year: |
2023 | 2022 |
£ | £ |
HFMC Wealth Management Ltd | - | - |
Aspinalls Group Ltd. | - | 125,000 |
HFMC Wealth Ltd. | 250,000 | - |
HFMC Private Clients Limited. | 50,000 | 40,000 |
R&S Associates Planning Ltd | 300,000 | - |
Income during the year: |
2023 | 2022 |
£ | £ |
HFMC Wealth Partners LLP | 502,288 | 483,988 |
HFMC Group Services LLP | 18,245 | 13,644 |
9. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loan interest |
Finance interest |
10. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Tax on profit |
HFMC GROUP HOLDINGS LTD (REGISTERED NUMBER: 05484681) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 5TH APRIL 2023 |
10. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Depreciation add back | 63,017 | 58,766 |
Capital allowances | (52,684 | ) | (26,029 | ) |
received |
Profit per financial statements from shares in group undertakings | (114,000 | ) | (31,350 | ) |
Loss carried forward | 11,489 | - |
Keyman Insurance add back | 3,366 | 819 |
Total tax charge | - | 7,498 |
11. | INTANGIBLE FIXED ASSETS |
Other |
intangible |
fixed |
assets |
£ |
COST |
At 6th April 2022 |
and 5th April 2023 |
AMORTISATION |
At 6th April 2022 |
Amortisation for year |
At 5th April 2023 |
NET BOOK VALUE |
At 5th April 2023 |
At 5th April 2022 |
The goodwill arose on the purchase of 3 client portfolios. At the balance sheet date the remaining amortisation period is 20 months and 52 months respectively. |
HFMC GROUP HOLDINGS LTD (REGISTERED NUMBER: 05484681) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 5TH APRIL 2023 |
12. | PROPERTY, PLANT AND EQUIPMENT |
Fixtures |
Plant and | and | Computer |
machinery | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 6th April 2022 |
Additions |
At 5th April 2023 |
DEPRECIATION |
At 6th April 2022 |
Charge for year |
At 5th April 2023 |
NET BOOK VALUE |
At 5th April 2023 |
At 5th April 2022 |
13. | FIXED ASSET INVESTMENTS |
2023 | 2022 |
£ | £ |
Shares in group undertakings |
Loans to undertakings in which the company has a participating interest |
Other investments not loans |
Additional information is as follows: |
Shares in |
group | Unlisted |
undertakings | investments | Totals |
£ | £ | £ |
COST |
At 6th April 2022 | 9,561,500 |
Additions | 2,752,888 |
Disposals | ( |
) | (8 | ) |
At 5th April 2023 | 12,314,380 |
NET BOOK VALUE |
At 5th April 2023 | 12,314,380 |
At 5th April 2022 | 9,561,500 |
HFMC GROUP HOLDINGS LTD (REGISTERED NUMBER: 05484681) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 5TH APRIL 2023 |
13. | FIXED ASSET INVESTMENTS - continued |
The company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
Aspinalls Management Limited is a wholly owned subsidiary of Aspinalls Group Limited (100% owned subsidiary of the company). |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
Aspinalls Private Clients Limited is a wholly owned subsidiary of Aspinalls Group Limited (100% owned subsidiary of the company). |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
Aspinalls Family Office LLP is a wholly owned subsidiary of Aspinalls Group Limited (100% owned subsidiary of the company). |
HFMC GROUP HOLDINGS LTD (REGISTERED NUMBER: 05484681) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 5TH APRIL 2023 |
13. | FIXED ASSET INVESTMENTS - continued |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
Aspinalls Fiduciary Limited is a wholly owned subsidiary of Aspinalls Group Limited (100% owned subsidiary of the company). |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
This company was acquired by HFMC Group Holdings Ltd on 16th January 2023. |
HFMC GROUP HOLDINGS LTD (REGISTERED NUMBER: 05484681) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 5TH APRIL 2023 |
13. | FIXED ASSET INVESTMENTS - continued |
Investment |
in LLP |
£ |
At 6th April 2022 |
and 5th April 2023 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Amounts owed by group undertakings |
Other debtors |
Prepayments and accrued income |
Amounts owed to group undertakings are interest free and repayable on demand. The difference between the amortised value and the carrying value above is deemed non material. |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 17) |
Hire purchase contracts (see note 18) |
Trade creditors |
Amounts owed to group undertakings |
Tax |
Social security and other taxes | ( |
) |
VAT | 105,305 | 105,676 |
Other creditors |
HFMC Asset Management Limited | 317,338 | 331,010 |
Accruals and deferred income |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans (see note 17) |
Hire purchase contracts (see note 18) |
Accruals and deferred income |
17. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank Loan less than 1 year | 645,423 | 605,016 |
HFMC GROUP HOLDINGS LTD (REGISTERED NUMBER: 05484681) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 5TH APRIL 2023 |
17. | LOANS - continued |
2023 | 2022 |
£ | £ |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | - | 1,500,000 |
The bank loan is secured against assets of the group and company. The company has a loan with ESF Loans Limited and TC CBILS Funding Ltd of £4,832,423 (2022: £4,134,323). The loan is repayable over the period until 21st January 2025 and 30 April 2025 respectively. The interest rate on the loans are 7.50% and 7.75% respectively. |
18. | LEASING AGREEMENTS |
Minimum lease payments under hire purchase fall due as follows: |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
19. | FINANCIAL INSTRUMENTS |
Carrying amount of financial assets |
2023 | 2022 |
£ | £ |
Debt instruments measured at amortised cost | 29,763 | 402,724 |
Carrying amount of financial liabilities |
2023 | 2022 |
£ | £ |
Measured at amortised cost | 11,542,057 | 8,433,273 |
20. | CALLED UP SHARE CAPITAL |
Allotted and issued: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary shares 1p | 1p | 762,140 | 762,140 |
HFMC GROUP HOLDINGS LTD (REGISTERED NUMBER: 05484681) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 5TH APRIL 2023 |
21. | ULTIMATE PARENT COMPANY |
The ultimate parent company is HFMC Wealth Holdings Limited, a company registered in England and Wales. |
HFMC Wealth Holdings Limited prepares group financial statements and copies can be obtained from the |
Company Secretary, Russell House, 140 High Street, Edgware, Middlesex, United Kingdom, HA8 7LW. |
22. | CONTINGENT LIABILITIES |
The company is part of the HFMC Group Holdings Limited "VAT Group" and as such is joint and severally liable for the VAT liabilities of that group. |
The company has provided security under a multilateral cross guarantee for the debenture disclosed in the group consolidated financial statements, covering a number of entities under the control of HFMC Wealth Holdings Limited. |
The company has given two fixed and floating charges over its assets in respect of lending facilities provided to HFMC Group Holdings Limited. |
The total loan liability for HFMC Group Holdings Limited for the year is £4,832,423 (2022: £4,134,323). |
23. | 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. |
24. | ULTIMATE CONTROLLING PARTY |
HFMC Group Holdings Limited is under the control of the board of directors of its ultimate parent company HFMC Wealth Holdings Limited. |