Company registration number 12254765 (England and Wales)
THE HOGARTH PROPERTY GROUP LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
THE HOGARTH PROPERTY GROUP LTD
COMPANY INFORMATION
Directors
P Connolly
S Connolly
Company number
12254765
Registered office
Chelsey House
Jordans Lane
Jordans
Buckinghamshire
HP9 2SW
Accountants
Goldblatts
4th Floor
4 Tabernacle Street
London
EC2A 4LU
Business address
Chelsey House
Jordans Lane
Jordans
Buckinghamshire
HP9 2SW
THE HOGARTH PROPERTY GROUP LTD
CONTENTS
Page
Directors' report
1
Accountants' report
2
Profit and loss account
3
Group balance sheet
4 - 5
Company balance sheet
6
Group statement of changes in equity
7
Company statement of changes in equity
8
Notes to the financial statements
9 - 19
THE HOGARTH PROPERTY GROUP LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -

The directors present their annual report and financial statements for the year ended 31 December 2022.

Principal activities

The principal activity of the company and group continued to be that of property development and investment.

Results and dividends

The results for the year are set out on page 3.

Ordinary dividends were paid amounting to £40,000. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

P Connolly
S Connolly
Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
P Connolly
Director
3 November 2023
THE HOGARTH PROPERTY GROUP LTD
ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF THE HOGARTH PROPERTY GROUP LTD FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of The Hogarth Property Group Ltd for the year ended 31 December 2022 which comprise the group profit and loss account, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity and the related notes from the accounting records and from information and explanations you have given us.

 

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com/regulation.

This report is made solely to the board of directors of The Hogarth Property Group Ltd, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the financial statements of The Hogarth Property Group Ltd and state those matters that we have agreed to state to the board of directors of The Hogarth Property Group Ltd, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than The Hogarth Property Group Ltd and its board of directors as a body, for our work or for this report.

It is your duty to ensure that The Hogarth Property Group Ltd has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of The Hogarth Property Group Ltd. You consider that The Hogarth Property Group Ltd is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of The Hogarth Property Group Ltd. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Goldblatts
3 November 2023
Chartered Accountants
4th Floor
4 Tabernacle Street
London
EC2A 4LU
THE HOGARTH PROPERTY GROUP LTD
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
2022
2021
Notes
£
£
Turnover
790,632
734,271
Administrative expenses
(388,009)
(148,359)
Other operating income
36,619
32,682
Operating profit
439,242
618,594
Interest receivable and similar income
4
503
87
Interest payable and similar expenses
(594,963)
(298,613)
Changes in value of investments
5
6,645,176
504,851
Profit before taxation
6,489,958
824,919
Tax on profit
(1,974,860)
43,638
Profit for the financial year
16
4,515,098
868,557
Profit for the financial year is all attributable to the owners of the parent company.
THE HOGARTH PROPERTY GROUP LTD
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2022
31 December 2022
- 4 -
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
-
-
Tangible assets
6
1,323
-
0
Investment property
7
26,155,000
14,305,000
26,156,323
14,305,000
Current assets
Stocks
1,788,599
8,085
Debtors
10
159,954
255,315
Cash at bank and in hand
164,863
1,570,202
2,113,416
1,833,602
Creditors: amounts falling due within one year
11
(2,369,004)
(288,591)
Net current (liabilities)/assets
(255,588)
1,545,011
Total assets less current liabilities
25,900,735
15,850,011
Creditors: amounts falling due after more than one year
12
(12,915,881)
(9,288,534)
Net assets before deferred tax
12,984,854
6,561,477
Deferred tax liabilities
14
(3,172,260)
(1,223,981)
Net assets after deferred tax
9,812,594
5,337,496
Capital and reserves
Called up share capital
15
2
2
Profit and loss reserves
16
9,812,592
5,337,494
Total equity
9,812,594
5,337,496

For the financial year ended 31 December 2022 the group was entitled to exemption from audit under section 477 of the Companies Act 2006.

Directors' responsibilities under the Companies Act 2006:

 

These financial statements have been prepared in accordance with the provisions applicable to groups and companies subject to the small companies regime.

THE HOGARTH PROPERTY GROUP LTD
GROUP BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2022
31 December 2022
- 5 -
The financial statements were approved by the board of directors and authorised for issue on 3 November 2023 and are signed on its behalf by:
03 November 2023
P Connolly
Director
Company registration number 12254765 (England and Wales)
THE HOGARTH PROPERTY GROUP LTD
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2022
31 December 2022
- 6 -
2022
2021
Notes
£
£
£
£
Fixed assets
Investments
8
6
5
Current assets
Debtors
10
6,549,493
2,443,105
Cash at bank and in hand
48
1,426,757
6,549,541
3,869,862
Creditors: amounts falling due within one year
11
(4,194,760)
(2,102,146)
Net current assets
2,354,781
1,767,716
Total assets less current liabilities
2,354,787
1,767,721
Creditors: amounts falling due after more than one year
12
(2,330,000)
(1,830,000)
Net assets/(liabilities)
24,787
(62,279)
Capital and reserves
Called up share capital
15
2
2
Profit and loss reserves
16
24,785
(62,281)
Total equity
24,787
(62,279)

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £127,066 (2021 - £32,611 loss).

For the financial year ended 31 December 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 3 November 2023 and are signed on its behalf by:
03 November 2023
P Connolly
Director
Company registration number 12254765 (England and Wales)
THE HOGARTH PROPERTY GROUP LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 7 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2021
2
4,468,937
4,468,939
Year ended 31 December 2021:
Profit and total comprehensive income
-
868,557
868,557
Balance at 31 December 2021
2
5,337,494
5,337,496
Year ended 31 December 2022:
Profit and total comprehensive income
-
4,515,098
4,515,098
Dividends
-
(40,000)
(40,000)
Balance at 31 December 2022
2
9,812,592
9,812,594
THE HOGARTH PROPERTY GROUP LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2021
2
(29,670)
(29,668)
Year ended 31 December 2021:
Loss and total comprehensive income for the year
-
(32,611)
(32,611)
Balance at 31 December 2021
2
(62,281)
(62,279)
Year ended 31 December 2022:
Profit and total comprehensive income
-
127,066
127,066
Dividends
-
(40,000)
(40,000)
Balance at 31 December 2022
2
24,785
24,787
THE HOGARTH PROPERTY GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
1
Accounting policies
Company information

The Hogarth Property Group Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .

 

The group consists of The Hogarth Property Group Ltd and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company The Hogarth Property Group Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2022. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

 

Turnover is the amount derived from ordinary activities, being mainly rents, licence fees and related income, and revenues derived from the sale of properties.

 

Disposals of properties are accounted for at the date of exchange where there is a legally binding, unconditional contract and where completion takes place by the date of approval of the financial statements.

 

Rental income from property leased out under an operating lease is recognised in the profit and loss account on a straight line basis over the term of the lease.

 

THE HOGARTH PROPERTY GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 10 -
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings
20% Reducing balance basis

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.6
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

1.7
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Work in progress comprises trading and development properties valued at the lower of cost and net realisable. Cost comprises the purchase price of the trading asset and associated acquisition and development costs.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

THE HOGARTH PROPERTY GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 11 -
1.11
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

1.12
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

THE HOGARTH PROPERTY GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 12 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Impairment review of investment properties

Management regularly review the current market value, rental market and rental yields of the investment properties.

Impairment review of property held within Stock

Management regularly review the current market value of the property under development held within stock to ensure its carrying value is at the lower of cost and net realisable value.

Recoverability of intercompany balances

Management regularly review intercompany balances for recoverability.

3
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2022
2021
2022
2021
Number
Number
Number
Number
Total
2
2
2
2
4
Interest receivable and similar income
2022
2021
£
£
Other interest receivable and similar income
503
87
5
Changes in value of investments
2022
2021
£
£
Fair value gains/(losses)
Gain on financial assets held at fair value through profit or loss
6,645,176
504,851
THE HOGARTH PROPERTY GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 13 -
6
Tangible fixed assets
Group
Plant and machinery etc
£
Cost
At 1 January 2022
-
0
Additions
1,369
At 31 December 2022
1,369
Depreciation and impairment
At 1 January 2022
-
0
Depreciation charged in the year
46
At 31 December 2022
46
Carrying amount
At 31 December 2022
1,323
At 31 December 2021
-
0
The company had no tangible fixed assets at 31 December 2022 or 31 December 2021.
7
Investment property
Group
Company
2022
2022
£
£
Fair value
At 1 January 2022 and 31 December 2022
14,305,000
-
Additions
5,204,824
-
Revaluations
6,645,176
-
At 31 December 2022
26,155,000
-

Investment property comprises

 

- Two freehold properties where development has been completed. The fair value of the investment property has been arrived at on the basis of a valuation carried out at by the directors. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

 

- One freehold property under development, The fair value of the investment property has been arrived at on the basis of a valuation carried out at by the directors. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

THE HOGARTH PROPERTY GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 14 -
8
Fixed asset investments
Group
Company
2022
2021
2022
2021
£
£
£
£
-
0
-
0
6
5
Fixed asset investments not carried at market value

The directors have opted to account for the company's investment in subsidiaries at cost less impairment as set out in the above accounting policies and in accordance with the FRS 102. The reason for choosing this method is that the subsidiaries have always been privately owned and their shares have never been publicly traded.

Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2022
5
Additions
1
At 31 December 2022
6
Carrying amount
At 31 December 2022
6
At 31 December 2021
5
9
Subsidiaries

Details of the company's subsidiaries at 31 December 2022 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Hogarth Property - 15 Hanger Lane Ltd
England & Wales
Property investment
Ordinary
100.00
Hogarth Property - 70 Hanger Lane Ltd
England & Wales
Property investment
Ordinary
100.00
Hogarth Property - 42 Lynton Road  Ltd
England & Wales
Property trading and development
Ordinary
100.00
Hiogarth Property - TBC2 Ltd
England & Wales
Property investment
Ordinary
100.00

The registered office address for all subsidary companies is Chelsey House, Jordans Lane, Jordans, Buckinghamshire, HP9 2SW.

THE HOGARTH PROPERTY GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 15 -
10
Debtors
Group
Company
2022
2021
2022
2021
Amounts falling due within one year:
£
£
£
£
Trade debtors
24,649
17,145
-
0
-
0
Amounts owed by group undertakings
-
-
6,548,945
2,411,497
Other debtors
22,325
98,609
548
31,608
46,974
115,754
6,549,493
2,443,105
Deferred tax asset
74,914
68,400
-
-
121,888
184,154
6,549,493
2,443,105
Amounts falling due after more than one year:
Deferred tax asset
38,066
71,161
-
-
Total debtors
159,954
255,315
6,549,493
2,443,105

The amounts owed by group undertakings are unsecured, interest-free and repayable on demand with no fixed repayment terms.

11
Creditors: amounts falling due within one year
Group
Company
2022
2021
2022
2021
£
£
£
£
Bank loans and overdrafts
1
-
0
1
-
0
Trade creditors
24,857
65,318
10,482
3,261
Amounts owed to group undertakings
-
0
-
0
1,950,590
2,050,590
Taxation and social security
31,372
2,489
31,372
2,489
Other creditors
2,312,774
220,784
2,202,315
45,806
2,369,004
288,591
4,194,760
2,102,146

Included in other creditors falling due within one year is

 

- An unsecured loan facility from a director amounting to £1.9m. The loan is interest-free, unsecured and repayable on demand - see Note 18.

 

The amounts owed to group undertakings are unsecured, interest-free and repayable on demand with no fixed repayment terms.

THE HOGARTH PROPERTY GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 16 -
12
Creditors: amounts falling due after more than one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans and overdrafts
10,585,881
7,458,534
-
0
-
0
Other creditors
2,330,000
1,830,000
2,330,000
1,830,000
12,915,881
9,288,534
2,330,000
1,830,000

Included in other creditors falling due after more than one year is

 

- An unsecured loan facility from the directors amounting to £1.33m. Interest is chargeable at the rate of 15.3% per annum - see Note 18.

 

Of the creditors falling due within and after more than one year, bank loans and overdrafts totalling £10,585,881 (2021: £7,458,534), were secured.

Amounts included above which fall due after five years are as follows:
Payable by instalments
-
-
-
-
Payable other than by instalments
7,458,526
7,458,534
-
-
13
Loans and overdrafts
Group
Company
2022
2021
2022
2021
£
£
£
£
Bank loans
10,585,881
7,458,534
-
0
-
0
Bank overdrafts
1
-
0
1
-
0
10,585,882
7,458,534
1
-
Payable within one year
1
-
1
-
Payable after one year
10,585,881
7,458,534
-
0
-
0
THE HOGARTH PROPERTY GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
13
Loans and overdrafts
(Continued)
- 17 -

The long-term loans are secured as follows:

 

During the year a subsidiary company obtained a new 27 month Development Mortgage facility to finance development of the investment property at a fixed annual interest rate of 6.5%. The loan is due for repayment in August 2024.

 

At 31 December 2022, the following charges had been lodged to secure borrowings of that subsidiary company:

 

- A Legal Charge dated 21 January 2022 was created in favour of Aldermore Bank Plc, to secure loan facilities. This comprises a fixed charge over the company's current and future freehold properties, and a floating charge over all the property or undertaking of the company, and contains a negative pledge.

 

- A Legal Charge dated 21 January 2022 was created in favour of Aldermore Bank Plc, to secure loan facilities. This comprises a fixed charge over the company's freehold property, and contains a negative pledge.

 

During 2021 a subsidiary company refinanced its borrowings taking out a new 25-year interest-only loan with Shawbrook Bank Limited to finance development of one of its investment properties.

 

At 31 December 2022, the following charges had been lodged to secure borrowings of that subsidiary company:

 

- A Legal Charge dated 27 October 2020 was created in favour of Shawbrook Bank Limited, to secure loan facilities. This comprises a fixed charge over the company's freehold properties, and contains a negative pledge.

 

- A Legal Charge dated 8 April 2019 was created in favour of Aldermore Bank Plc, to secure loan facilities. This comprises a fixed charge over the company's freehold property, and contains a negative pledge.

 

- A Debenture dated 8 April 2019 was created, in favour of Aldermore Bank Plc, to secure loan facilities. This comprises fixed and floating charges over all property or undertakings of the company. The Debenture contains a negative pledge.

 

- A Legal Charge dated 17 November 2021 was created in favour of Shawbrook Bank Limited, to secure loan facilities. This comprises a fixed charge over the company's freehold property, and contains a negative pledge.

14
Provisions for liabilities
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Deferred tax liabilities
3,172,260
1,223,981
-
0
-
0

A net deferred tax liability of £3,172,260 (2021: £1,223,981) has been provided representing the potential tax liability that would arise if the revalued properties held were disposed of at the balance sheet date.

15
Share capital
Group and company
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2
THE HOGARTH PROPERTY GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 18 -
16
Profit and loss reserves
Group
Company
2022
2021
2022
2021
£
£
£
£
At the beginning of the year
5,337,494
4,468,937
(62,281)
(29,670)
Profit/(loss) for the year
4,515,098
868,557
127,066
(32,611)
Dividends
(40,000)
-
(40,000)
-
At the end of the year
9,812,592
5,337,494
24,785
(62,281)
Group
Company
2022
2021
2022
2021
£
£
£
£
Non-distributable profits included above
At the beginning of the year
5,218,022
4,809,094
-
-
Non distributable profits in the year
4,597,363
408,928
-
-
At the end of the year
9,815,385
5,218,022
-
-
Distributable profits
(2,793)
119,472
24,785
(62,281)
17
Operating lease commitments
Lessor

At the reporting end date the group had contracted with tenants for the following minimum lease payments:

Group
Company
2022
2021
2022
2021
£
£
£
£
727,653
939,491
-
-
18
Related party transactions

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2022
2021
£
£
Group
Key management personnel
3,230,000
1,330,000
Company
Entities over which the company has control, joint control or significant influence
1,950,590
2,050,590
Key management personnel
3,230,000
1,330,000
THE HOGARTH PROPERTY GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
18
Related party transactions
(Continued)
- 19 -

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2022
2021
Balance
Balance
£
£
Group
Key management personnel
547
66
Company
Entities over which the company has control, joint control or significant influence
6,548,945
2,411,497
Key management personnel
547
66
19
Directors' transactions

Loans have been granted by the company and group to its directors as follows:

Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Director's loan
2.50
15,771
83,687
(285,252)
(185,794)
Director's loan
2.50
15,771
43,020
(58,791)
-
31,542
126,707
(344,043)
(185,794)

The maximum amounts outstanding during the year on the loans were £27,729 and £22,171 respectively. The loans are unsecured and repayable on demand, Interest totalling £481 has been charged at 2.5% on the above loans.

20
Controlling party

At 31 December 2022, the ultimate controlling parties were P Connolly and S Connolly who equally owned the entire issued share capital of the company.

The smallest and largest group financial statements that consolidate this company is The Hogarth Property Group Limited. Copies of the group accounts are available to the public from the parent company's registered office at Chelsey House, Jordans Lane, Jordans, Beaconsfield HP9 2SW.

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