Registration number:
Prestige Group Investments Limited
for the Year Ended 31 July 2022
Prestige Group Investments Limited
Contents
Company Information |
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Strategic Report |
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Director's Report |
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Statement of Director's Responsibilities |
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Independent Auditor's Report |
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Consolidated Income Statement |
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Consolidated Statement of Financial Position |
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Statement of Financial Position |
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Consolidated Statement of Changes in Equity |
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Statement of Changes in Equity |
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Consolidated Statement of Cash Flows |
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Notes to the Financial Statements |
Prestige Group Investments Limited
Company Information
Director |
Mr S Singh |
Registered office |
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Bankers |
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Auditor |
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Prestige Group Investments Limited
Strategic Report for the Year Ended 31 July 2022
The director presents his strategic report for the year ended 31 July 2022.
Fair review of the business
The principal activities of the group during the year were construction, operation of a football club and the operation of an aircraft.
The group owns the following subsidiaires, P&R Construction Limited, Clarence 18 Limited (whose sole subsidiary is Hartlepool United Football Club Limited) and Prestige Skyhawk Limited.
Results and performance
The director is satisfied with the performance of the group during the year. The group monitors income and costs on an ongoing basis.
Key performance indicators
The director monitors the progress of the group by reference to key performance indicators. The key performance indicators are:
P&R Construction Limited: Gross margin on construction projects.
Hartlepool United Football Club Limited: Net profit/loss
Prestige Skyhawk Limited: Flying hours
P&R Construction Limited achieved a gross margin of £410,613, 9.9% (2021: £206,544, 8.2%).
Hartlepool United Football Club Limited made a net profit of £809,718 (2021: net loss £366,175).
Prestige Skyhawk Limited has a target of leasing the aircraft out for a minimum of 20 hours per month, which was met during the year.
The group hopes to build on these results in the coming year by finalising construction projects, working on promotion back to the EFL following relegation and continuing to meet target flying hours.
Principal risks and uncertainties
The senior management team meet regularly to consider the risks that face the group and how established processes and controls are used to meet these risks. Key risks and uncertainties are outlined below:
Economic downturn
The group has been impacted by recent economic downturns following a turbulent few years with Brexit and COVID-19. The director and management took steps to consider the specific risks to each activity and continues to do so. The construction industry has picked up, following a period of reduced activity during COVID-19. Recent increase in interest rates and high construction costs are expected to result in a slowdown in the sector, but not to the levels experienced during the COVID-19 years.
Hartlepool United Football Club Limited may be impacted by the recent cost of living crisis if supporters cannot afford to attend matches. However, this is more likely to impact Premier League Clubs and the expectation is that the club will in fact see a rise in attendance, as football fans choose to attend lower league matches to save on ticket prices.
The aircraft operates in the medical industry and has an ongoing lease agreement, as such is not expected to be affected by the recent cost of living crisis.
Relegation
The recent relegation of Hartlepool United Football Club Limited to the National League has resulted in updated forecasts and projections by the senior management team. The club has previously spent four seasons in the fifth tier, following relegation in 2017. The balance sheet is in a much stronger position this season, with cash reserves of £1.7m. The Director and controlling shareholder has also pledged support so that the club can continue in operational existence for the foreseeable future, taking into account reasonably possible changes in performance.
Prestige Group Investments Limited
Strategic Report for the Year Ended 31 July 2022 (continued)
Approved and authorised for issue by the
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Prestige Group Investments Limited
Director's Report for the Year Ended 31 July 2022
The director presents his report and the for the year ended 31 July 2022.
Director of the group
The director who held office during the year was as follows:
Financial instruments
Objectives and policies
The group finances its activities with a combination of cash and short term deposits and loans from related companies. Other financial assets and liabilities, such as trade debtors and trade creditors, arise directly from the group's operating activities.
Price risk, credit risk, liquidity risk and cash flow risk
Price risk
Price risk is the risk that changes in prices have the potential to impact on the profitability of the company. The group does not consider that it is materially exposed to price risk.
Credit risk
Credit risk is the risk that one party of a financial instrument will cause a financial loss for the other party by failing to discharge its obligation. Group policies are aimed at minimising such losses and require customers to satisfy credit worthiness procedures prior to acceptance of contracts. The group does not consider that it is materially exposed to credit risk.
Cash flow and liquidity risk
Cash flow and liquidity risk is the risk that the group's available cash will not be sufficient to meet its financial obligations. The group actively manages its cash flow position including collection of debts and timely payment of creditors. This, coupled with the strong cash position of the group is deemed sufficient to minimise the group's exposure to cash flow and liquidity risk.
Future developments
The group expects to increase the number of construction projects carried out as the impact of covid diminishes. The football club continues to recruit players and strengthen the management team as it aims to compete in the National League with the ultimate goal of promotion to League 2.
Going concern
At the year end the group had net liabilities of £28,512 (2021: £712,945), which includes £2.8m owed to companies under common control, a loan of £1.18m for which repayments do not begin until 2025 and £3.3m of preference share capital treated as debt. Redemption of the share capital required the holder to give a notice period of one year and one day. At the time of signing the financial statements no such notice has been received. The group reports a strong net current asset position of £706,212 at 31 July 2022 (2021: £2,297,458).
The group’s forecasts and projections for the next twelve months show that the group should be able to continue in operational existence for that period, taking into account reasonable changes in trading performance. Having considered the above, the Director has reasonable expectation that the group has adequate resources to continue in operational existence for a period of at least 12 months from the date of signing these financial statements. The group therefore continues to adopt the going concern basis in preparing its financial statements.
Prestige Group Investments Limited
Director's Report for the Year Ended 31 July 2022 (continued)
Disclosure of information to the auditor
The director has taken 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 auditor is aware of that information. The director confirms that there is no relevant information that he knows of and of which he knows the auditor is unaware.
Reappointment of auditors
In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Azets Audit Services as auditors of the company is to be proposed at the forthcoming Annual General Meeting.
Approved and authorised for issue by the
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Prestige Group Investments Limited
Statement of Director's Responsibilities
The director acknowledges his responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and parent company and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and parent company will continue in business. |
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the parent company's transactions and disclose with reasonable accuracy at any time the financial position of the parent company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Prestige Group Investments Limited
Independent Auditor's Report to the Members of Prestige Group Investments Limited
Opinion
We have audited the financial statements of Prestige Group Investments Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2022, which comprise the Consolidated Income Statement, Consolidated Statement of Financial Position, Statement of Financial Position, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the group's and of the parent company's affairs as at 31 July 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 auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our auditor’s report thereon. The director are responsible for the other information contained within the annual report. 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.
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 course of 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.
Prestige Group Investments Limited
Independent Auditor's Report to the Members of Prestige Group Investments Limited (continued)
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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the group and parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
Arising solely from the limitation on the scope of our work relating to inventory, referred to above:
• we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and
• we were unable to determine whether adequate accounting records have been kept.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
• | returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of director's remuneration specified by law are not made. |
Responsibilities of the director
As explained more fully in the Statement of Director's Responsibilities [set out on page 6], the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor 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 an auditor’s report 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.
Prestige Group Investments Limited
Independent Auditor's Report to the Members of Prestige Group Investments Limited (continued)
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:
• auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness;
• enquiries of management about any known or suspected instances of non-compliance with laws and regulations and fraud;
• challenging assumptions and judgements made by management in their significant accounting estimates;
• evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias; and
• reviewing financial statement disclosures and testing to supporting documentation.
Because of the field in which the client operates, we identified the following areas as those most likely to have a material impact on the financial statements: Health and Safety; employment law (including the Working Time Directive); Football Association and National League regulations and compliance with the UK Companies Act.
Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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 an auditor’s report 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.
Prestige Group Investments Limited
Independent Auditor's Report to the Members of Prestige Group Investments Limited (continued)
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For and on behalf of
Statutory Auditor
Chartered Accountants
Bede House
Belmont Business Park
DH1 1TW
Azets Audit Services is a trading name of Azets Audit Services Limited
Prestige Group Investments Limited
Consolidated Income Statement for the Year Ended 31 July 2022
Note |
2022 |
2021 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit/(loss) |
|
( |
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating profit/(loss) |
|
( |
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar expenses |
( |
( |
|
Profit/(loss) before tax |
|
( |
|
Taxation |
( |
( |
|
Profit/(loss) for the financial year |
|
( |
|
Profit/(loss) attributable to: |
|||
Owners of the company |
|
( |
|
Non controlling interests |
|
( |
|
|
( |
The above results were derived from continuing operations.
The group has no recognised gains or losses for the year other than the results above.
Prestige Group Investments Limited
(Registration number: 11280408)
Consolidated Statement of Financial Position as at 31 July 2022
Note |
2022 |
2021 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
- |
|
Net liabilities |
( |
( |
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Other reserves |
|
|
|
Profit and loss account |
|
( |
|
Equity attributable to owners of the company |
|
( |
|
Non controlling interests |
( |
( |
|
Total equity |
( |
( |
Approved and authorised for issue by the
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Prestige Group Investments Limited
(Registration number: 11280408)
Statement of Financial Position as at 31 July 2022
Note |
2022 |
2021 |
|
Fixed assets |
|||
Investments |
|
|
|
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Net liabilities |
( |
( |
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Profit and loss account |
( |
( |
|
Total equity |
( |
( |
The company made a loss after tax for the financial year of £1,848 (2021 - loss of £8,016).
Approved and authorised for issue by the
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Prestige Group Investments Limited
Consolidated Statement of Changes in Equity for the Year Ended 31 July 2022
Equity attributable to the parent company
Share capital |
Other reserves |
Profit and loss account |
Total |
Non- controlling interests |
Total equity |
|
At 1 August 2020 |
|
|
|
|
( |
( |
Loss for the year |
- |
- |
( |
( |
( |
( |
Total comprehensive income |
- |
- |
( |
( |
( |
( |
At 31 July 2021 |
|
|
( |
( |
( |
( |
Share capital |
Other reserves |
Profit and loss account |
Total |
Non- controlling interests |
Total equity |
|
At 1 August 2021 |
|
|
( |
( |
( |
( |
Profit for the year |
- |
- |
|
|
|
|
Total comprehensive income |
- |
- |
|
|
|
|
At 31 July 2022 |
|
|
|
|
( |
( |
Prestige Group Investments Limited
Statement of Changes in Equity for the Year Ended 31 July 2022
Share capital |
Profit and loss account |
Total |
|
At 1 August 2020 |
|
( |
( |
Loss for the year |
- |
( |
( |
Total comprehensive income |
- |
( |
( |
At 31 July 2021 |
|
( |
( |
Share capital |
Profit and loss account |
Total |
|
At 1 August 2021 |
|
( |
( |
Loss for the year |
- |
( |
( |
Total comprehensive income |
- |
( |
( |
At 31 July 2022 |
|
( |
( |
Prestige Group Investments Limited
Consolidated Statement of Cash Flows for the Year Ended 31 July 2022
Note |
2022 |
2021 |
|
Cash flows from operating activities |
|||
Profit/(loss) for the year |
|
( |
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Financial instrument net losses through profit and loss |
( |
- |
|
(Profit)/loss on disposal of tangible assets |
( |
|
|
Profit on disposal of intangible assets |
( |
( |
|
Finance income |
- |
( |
|
Finance costs |
|
|
|
Income tax expense |
|
|
|
|
( |
||
Working capital adjustments |
|||
(Increase)/decrease in stocks |
( |
|
|
Increase in trade debtors |
( |
( |
|
Increase in trade creditors |
|
|
|
Decrease in deferred income, including government grants |
( |
( |
|
Cash generated from operations |
( |
( |
|
Income taxes paid |
- |
( |
|
Net cash flow from operating activities |
( |
( |
|
Cash flows from investing activities |
|||
Interest received |
- |
|
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
|
|
Acquisition of intangible assets |
( |
( |
|
Proceeds from sale of intangible assets |
|
|
|
Net cash flows from investing activities |
|
( |
|
Cash flows from financing activities |
|||
Proceeds from bank borrowing draw downs |
- |
|
|
Repayment of bank borrowing |
( |
- |
|
Proceeds from other borrowing draw downs |
- |
|
|
Repayment of other borrowing |
( |
( |
|
Proceeds from issue of shares classified as liabilities |
- |
|
|
Net cash flows from financing activities |
( |
|
|
Net decrease in cash and cash equivalents |
( |
( |
|
Cash and cash equivalents at 1 August |
|
|
|
Cash and cash equivalents at 31 July |
1,770,666 |
2,138,196 |
Prestige Group Investments Limited
Notes to the Financial Statements for the Year Ended 31 July 2022
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
These financial statements are prepared in sterling which is the functional currency of the entity.
Summary of disclosure exemptions
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102:
(a) No cash flow statement has been presented for the company.
The company has taken advantage of the exemption available under paragraph 33.1A of FRS 102 and does not disclose related party transactions with members of the same group that are wholly owned.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 July 2022.
Prestige Group Investments Limited
Notes to the Financial Statements for the Year Ended 31 July 2022 (continued)
2 |
Accounting policies (continued) |
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Judgements
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: |
Assessing indicators of impairment - In assessing whether there have been indicators of impairment of assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability. |
Assessing nature of lease - The group has entered into commercial leases and as a lessee it obtains use of property, plant and equipment. The classification as operating or finance lease requires the Company to determine, based on an evaluation of the terms and conditions of the arrangements, whether it acquires the significant risks and rewards of ownership of these assets and accordingly whether the lease requires an asset and liability to be recognised in the balance sheet. |
Taxation - Management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and level of future taxable profits together with an assessment of the effect of future tax planning strategies. |
Prestige Group Investments Limited
Notes to the Financial Statements for the Year Ended 31 July 2022 (continued)
2 |
Accounting policies (continued) |
Key sources of estimation uncertainty
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:
Useful economic lives of tangible assets - The annual depreciation charge is sensitive to changes in the estimated useful lives of the assets. The useful economic lives are re-assessed annually. They are amended when necessary to reflect current estimates, future investments and economic utilisation.
Stock provision - The company has made an assumption of writing down the value of stock on items in which they expect the cost to exceed the net realisable value before it is fully sold/utilised. This assumption has involved looking at the historic sales patterns and expected sales in future years.
Impairment of debtors - The company makes an estimate of the recoverable value of the trade and other debtors. When assessing impairment of trade and other debtor, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the company.
The group recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the group's activities.
Gate receipts and other match day income are recognised on receipt. Season ticket sales, Football League distributions and sponsorship income are recognised equally across the football season. Transfer fees are recognised on the date of execution of the transfer, unless they are contingent in which case they are recognised upon achievement of the contingent event.
Contract revenue recognition
Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
Tax
The tax expense for the period comprises deferred tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Prestige Group Investments Limited
Notes to the Financial Statements for the Year Ended 31 July 2022 (continued)
2 |
Accounting policies (continued) |
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements. Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
|
Property improvements |
10% straight line |
|
Fixtures and fittings |
20% straight line and 15% reducing balance |
|
Plant and machinery |
10 - 25% reducing balance |
|
Office equipment |
20 - 33% straight line |
|
Motor vehicles |
25% straight line |
|
Aircraft |
5% straight line |
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made. Goodwill arising on the acquisition of Hartlepool United Football Club Limited has been fully impaired in prior years.
Intangible assets
The cost associated with the acquisition of players' registrations are capitalised as intangible fixed assets. The costs are amortised fully over the contract period. Permanent diminution in value below the amortised value, such as through injury or loss of form, is provided for when management become aware that the diminution is permanent.
Prestige Group Investments Limited
Notes to the Financial Statements for the Year Ended 31 July 2022 (continued)
2 |
Accounting policies (continued) |
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Goodwill |
10% straight line |
Players |
Over term of contract |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment. Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Prestige Group Investments Limited
Notes to the Financial Statements for the Year Ended 31 July 2022 (continued)
2 |
Accounting policies (continued) |
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the income statement over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Financial instruments
Classification
In accordance with FRS 102.22, financial instruments issued by the Company are treated as equity only to the extent that they meet the following two conditions:
they include no contractual obligations upon the Company to deliver cash or other financial assets or to exchange financial assets or financial liabilities with another party under conditions that are potentially unfavourable to the Company; and
where the instrument will or may be settled in the Company’s own equity instruments, it is either a non-derivative that includes no obligation to deliver a variable number of the Company’s own equity instruments or is a derivative that will be settled by the Company’s exchanging a fixed amount of cash or other financial assets for a fixed number of its own equity instruments.
To the extent that this definition is not met, the proceeds of issue are classified as a financial liability. Where the instrument so classified takes the legal form of the Company’s own shares, the amounts presented in these financial statements for called up share capital and share premium account exclude amounts in relation to those shares.
Prestige Group Investments Limited
Notes to the Financial Statements for the Year Ended 31 July 2022 (continued)
Turnover |
The analysis of the group's Turnover for the year from continuing operations is as follows:
2022 |
2021 |
|
Construction |
4,105,367 |
2,533,518 |
Football |
4,223,878 |
1,064,671 |
|
|
Other operating income |
The analysis of the group's other operating income for the year is as follows:
2022 |
2021 |
|
Government grants |
|
|
Profit/(loss) on player transfers |
195,156 |
150,000 |
Profit/(loss) on disposal of tangible fixed assets |
1,667 |
(6,304) |
Aircraft leasing |
281,416 |
46,480 |
Other income |
- |
|
|
|
Government grants consist of amounts received under the Coronavirus Job Retention Scheme.
Other income included the proceeds of an insurance claim and other Coronavirus related income.
Operating profit/(loss) |
Arrived at after charging/(crediting)
2022 |
2021 |
|
Depreciation expense |
|
|
Amortisation expense |
|
- |
Other interest receivable and similar income |
2022 |
2021 |
|
Change in fair value of other financial liabilities measured at fair value through profit or loss |
|
- |
Other finance income |
- |
|
|
|
Prestige Group Investments Limited
Notes to the Financial Statements for the Year Ended 31 July 2022 (continued)
Interest payable and similar expenses |
2022 |
2021 |
|
Interest expense on other finance liabilities |
|
|
Staff costs |
The aggregate payroll costs (including director's remuneration) were as follows:
2022 |
2021 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
The average number of persons employed by the group (including the director) during the year, analysed by category was as follows:
2022 |
2021 |
|
Hartlepool United Football Club Limited |
|
|
P&R Construction Limited |
|
|
|
|
Director's remuneration |
The director's remuneration for the year was as follows:
2022 |
2021 |
|
Remuneration |
- |
|
Auditors' remuneration |
2022 |
2021 |
|
Audit of these financial statements |
6,850 |
6,800 |
Audit of the financial statements of subsidiaries of the company |
20,055 |
15,800 |
|
|
Prestige Group Investments Limited
Notes to the Financial Statements for the Year Ended 31 July 2022 (continued)
Taxation |
Tax charged/(credited) in the consolidated income statement
2022 |
2021 |
|
Current taxation |
||
UK corporation tax adjustment to prior periods |
- |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
( |
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2021 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2022 |
2021 |
|
Profit/(loss) before tax |
|
( |
Corporation tax at standard rate |
|
( |
Effect of revenues exempt from taxation |
( |
( |
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
UK deferred tax expense/(credit) relating to changes in tax rates or laws |
|
( |
Deferred tax expense from unrecognised tax loss or credit |
|
|
(Decrease)/increase in UK and foreign current tax from adjustment for prior periods |
( |
|
Other tax effects for reconciliation between accounting profit and tax expense (income) |
|
|
Total tax charge |
|
|
In the Spring Budget 2020, the Government announced that from 1 April 2020 the corporation tax rate would remain at 19% (rather than reducing to 17% as previously enacted). This new law was deemed substantively enacted on 17 March 2020. In the Spring Budget 2021, the Government announced that from 1 April 2023 the corporation tax rate will increase from 19% to 25%. This new law was deemed substantively enacted on 24 May 2021 and the deferred tax balances at the year end have been calculated based on this rate.
Prestige Group Investments Limited
Notes to the Financial Statements for the Year Ended 31 July 2022 (continued)
11 |
Taxation (continued) |
Deferred tax
Group
Deferred tax assets and liabilities
2022 |
Asset |
Liability |
Fixed asset timing differences |
- |
|
Tax losses carried forward |
|
- |
Other timing differences |
|
- |
|
|
2021 |
Asset |
Liability |
Fixed asset timing differences |
- |
|
Tax losses carried forward |
|
- |
Other timing differences |
|
- |
|
|
There are £2,511,709 of unused tax losses (2021 - £10,303,535) for which no deferred tax asset is recognised in the statement of financial position.
Intangible assets |
Group
Player registrations |
|
Cost or valuation |
|
At 1 August 2021 |
|
Additions acquired separately |
|
Disposals |
( |
At 31 July 2022 |
|
Amortisation |
|
Amortisation charge |
|
Amortisation eliminated on disposals |
( |
At 31 July 2022 |
|
Carrying amount |
|
At 31 July 2022 |
|
At 31 July 2021 |
|
Prestige Group Investments Limited
Notes to the Financial Statements for the Year Ended 31 July 2022 (continued)
Tangible assets |
Group
Land and buildings |
Fixtures and fittings |
Plant and machinery |
Office equipment |
Motor vehicles |
Aircraft |
Total |
|
Cost or valuation |
|||||||
At 1 August 2021 |
|
|
|
|
|
|
|
Additions |
|
|
|
|
- |
- |
|
At 31 July 2022 |
|
|
|
|
|
|
|
Depreciation |
|||||||
At 1 August 2021 |
|
|
|
|
|
|
|
Charge for the year |
|
|
|
|
- |
|
|
At 31 July 2022 |
|
|
|
|
|
|
|
Carrying amount |
|||||||
At 31 July 2022 |
|
|
|
|
- |
|
|
At 31 July 2021 |
|
|
|
|
- |
|
|
Included within the net book value of land and buildings above is £42,781 (2021 - £39,925) in respect of improvements made to long leasehold land and buildings
Prestige Group Investments Limited
Notes to the Financial Statements for the Year Ended 31 July 2022 (continued)
Investments |
Group
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the group holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2022 |
2021 |
Subsidiary undertakings |
||||
|
Hartlepool United Football Club Limted
|
Ordinary |
|
|
|
Victoria Park
|
Ordinary |
|
|
|
Prestige Group Head Office
|
Odinary |
|
|
|
Prestige Group
|
Ordinary |
|
|
* indicates direct investment of the company
Prestige Group Investments Limited
Notes to the Financial Statements for the Year Ended 31 July 2022 (continued)
14 |
Investments (continued) |
Subsidiary undertakings
Clarence 18 Limited The principal activity of Clarence 18 Limited is |
Hartlepool United Football Club Limited The principal activity of Hartlepool United Football Club Limited is |
P&R Construction Limited The principal activity of P&R Construction Limited is |
Prestige Skyhawk Limited The principal activity of Prestige Skyhawk Limited is |
For the year ending 31 July 2022 the following subsidiaries were entitled to exemption from audit under section 479A of the Companies Act 2006 relating to subsidiary companies:
Clarence 18 Limited (company registration number 11282080) |
P&R Construction Limited (company registration number 08447137) |
Company
2022 |
2021 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 August 2021 |
|
At 31 July 2022 |
|
Provision |
|
At 1 August 2021 |
|
At 31 July 2022 |
|
Carrying amount |
|
At 31 July 2022 |
|
At 31 July 2021 |
|
The company's investment in Clarence 18 Limited is fully impaired at the period end as the company had net liabilities at that date.
Prestige Group Investments Limited
Notes to the Financial Statements for the Year Ended 31 July 2022 (continued)
Stocks |
Group |
Company |
|||
2022 |
2021 |
2022 |
2021 |
|
Work in progress |
|
|
- |
- |
Other inventories |
|
|
- |
- |
|
|
- |
- |
Debtors |
Group |
Company |
||||
Note |
2022 |
2021 |
2022 |
2021 |
|
Trade debtors |
|
|
- |
- |
|
Amounts owed by group undertakings |
- |
- |
|
|
|
Other debtors |
|
|
|
- |
|
Prepayments |
|
|
- |
- |
|
Gross amount due from customers for contract work |
- |
2,144,964 |
- |
- |
|
Deferred tax assets |
- |
|
- |
- |
|
|
|
|
|
Cash and cash equivalents |
Group |
Company |
|||
2022 |
2021 |
2022 |
2021 |
|
Cash on hand |
|
|
- |
- |
Cash at bank |
|
|
|
|
|
|
|
|
Prestige Group Investments Limited
Notes to the Financial Statements for the Year Ended 31 July 2022 (continued)
Creditors |
Group |
Company |
||||
Note |
2022 |
2021 |
2022 |
2021 |
|
Due within one year |
|||||
Loans and borrowings |
- |
|
- |
- |
|
Trade creditors |
|
|
|
- |
|
Amounts owed to group undertakings |
- |
- |
|
- |
|
Social security and other taxes |
|
|
- |
- |
|
Outstanding defined contribution pension costs |
|
- |
- |
- |
|
Other creditors |
|
|
|
|
|
Accruals |
|
|
|
|
|
Directors loan accounts |
162,607 |
25,824 |
120,990 |
990 |
|
|
|
|
|
||
Due after one year |
|||||
Loans and borrowings |
|
|
- |
- |
|
Deferred income |
- |
|
- |
- |
|
Other non-current financial liabilities |
|
|
|
|
|
3,341,064 |
5,795,969 |
3,300,000 |
4,300,000 |
Other non-current financial liabilities includes preference share capital of £3,300,000 (2021: £4,300,000), these shares are redeemable at the holder's request, redemption requires a notice period of one year end one day. The shares do not confer any rights to fixed dividends or interest.
Prestige Group Investments Limited
Notes to the Financial Statements for the Year Ended 31 July 2022 (continued)
Loans and borrowings |
Group |
Company |
|||
2022 |
2021 |
2022 |
2021 |
|
Current loans and borrowings |
||||
Bank borrowings |
- |
|
- |
- |
Other borrowings |
- |
|
- |
- |
- |
|
- |
- |
Group |
Company |
|||
2022 |
2021 |
2022 |
2021 |
|
Non-current loans and borrowings |
||||
Bank borrowings |
- |
|
- |
- |
Other borrowings |
|
|
- |
- |
|
|
- |
- |
Bank borrowings consist of a CBILS loan received by P&R Construction Limited and are secured by a fixed and floating charge over the assets of that company.
Other borrowings consist of:
• a loan of £1,201,064 (2021: £1,180,000) received from Sport England under the Sports Winter Survival Programme, this loan is secured by a floating charge over all property and undertakings of Hartlepool United Football Club Limited.
• a loan of £140,000 (2021: £285,000) from the former owners of Hartlepool United Football Club Limited, repayment of which is dependent upon on-field success.
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £
Prestige Group Investments Limited
Notes to the Financial Statements for the Year Ended 31 July 2022 (continued)
Share capital |
Allotted, called up and fully paid shares
2022 |
2021 |
|||
No. |
£ |
No. |
£ |
|
|
|
20 |
|
20 |
Non controlling interests |
The non controlling interests relate to:
Clarence 18 Limited of which 4% (2021 - 4%) of the voting rights are held outside of the group.
Hartlepool United Football Club Limited of which 5% (2021 - 5%) of the voting rights are held outside of the group.
Obligations under leases and hire purchase contracts |
Group
Operating leases
The total of future minimum lease payments is as follows:
2022 |
2021 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Prestige Group Investments Limited
Notes to the Financial Statements for the Year Ended 31 July 2022 (continued)
Related party transactions |
Group
At the year end, debtors includes the following amounts due from companies under common control:
2022 |
2021 |
|
Prestige Care Limited |
4,166 |
127 |
Prestige Care (HM) Limited |
3,263,224 |
1,751,653 |
Prestige Care (Auguste Communities) Limited |
2,188 |
1,085 |
Prestige Care (Redcar WF) Limited |
52 |
39 |
Prestige Care (Yew Tree) Limited |
- |
464 |
Prestige (Fir Tree) Ltd |
11,339 |
810,111 |
Prestige Properties (North East) Limited |
255,886 |
210,308 |
Leven PropCo Ltd |
- |
163 |
Leven Stables Limited |
483 |
- |
MS Investments (IB) Limited |
1,223 |
1,166 |
R&P Investments (Fir Tree) Ltd |
13 |
- |
Starline Holdings Ltd |
- |
225,000 |
West Acres Park Limited |
- |
25,137 |
At the year end, creditors includes the following amounts due to companies under common control:
2022 |
2021 |
|
Blue Pinnacle Ltd |
298,987 |
299,000 |
Leven PropCo Limited |
22 |
- |
Prestige Care Group Holdings Ltd |
32,286 |
- |
Prestige Care (Roseville) Ltd |
231,013 |
- |
Prestige Care (Sand Banks) Limited |
46,955 |
4,976 |
Prestige Care (Yew Tree) Limited |
97,672 |
- |
Prestige Care (HM) Limited |
1,358,637 |
847,120 |
Prestige Leisure (North East) Limited |
237 |
237 |
Starline Holdings Ltd |
975,000 |
975,000 |
West Acres Park Limited |
84,810 |
- |
Company
The company has taken advantage of the exemptions contained in section 33.1A of FRS 102 not to disclose transactions and balances with wholly owned members of the same group.
Prestige Group Investments Limited
Notes to the Financial Statements for the Year Ended 31 July 2022 (continued)
Financial instruments |
Group
Categorisation of financial instruments
2022 |
2021 |
|
Other financial liabilities measured at fair value through profit or loss |
|
|
Other financial liabilities measured at amortised cost |
9,792,955 |
9,772,577 |
|
|
Company
Categorisation of financial instruments
2022 |
2021 |
|
Other financial liabilities measured at fair value through profit or loss |
|
|
Other financial liabilities measured at amortised cost |
6,094,434 |
5,854,715 |
6,234,434 |
6,139,715 |
Ultimate controlling party |
The ultimate controlling party is