Registered number: 12482147
OVG EUROPE HOLDINGS LIMITED
AUDITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 30 JUNE 2022
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OVG EUROPE HOLDINGS LIMITED
REGISTERED NUMBER: 12482147
BALANCE SHEET
AS AT 30 JUNE 2022
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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OVG EUROPE HOLDINGS LIMITED
REGISTERED NUMBER: 12482147
BALANCE SHEET (CONTINUED)
AS AT 30 JUNE 2022
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 3 November 2023.
The notes on pages 3 to 9 form part of these financial statements.
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OVG EUROPE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
OVG Europe Holdings Limited is a private company, limited by shares and is registered in England Wales. The company's registered number is 12482147 and registered office address is 55 New Bond Street, London, United Kingdom, W1S 1DG.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
The financial statements have been prepared on a going concern basis.
The directors have carefully reviewed the future prospects of the company and its future cash flows. Having assessed this the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Relevant to this consideration is the fact that the company's ultimate parent entity has provided a letter of support that guarantees to provide the company with financial support necessary to allow them to continue to trade as a going concern and meet their financial liabilities and obligations, incurred in the ordinary course of business, as they fall due for a period of not less than 12 months from the date of signing these financial statements. This financial support includes further cash funding and not calling in intercompany debts due on demand for the foreseeable future.
For this reason the directors continue to adopt the going concern basis for the preparation of the financial statements. Accordingly, these financial statements do not include any adjustments to the carrying amount or classification of assets and liabilities that would result if the company was unable to continue as a going concern.
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OVG EUROPE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
2.Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Income and Retained Earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
Interest income is recognised in profit or loss using the effective interest method.
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OVG EUROPE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
2.Accounting policies (continued)
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Investments in subsidiaries are measured at cost less accumulated impairment.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
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OVG EUROPE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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Judgments in applying accounting policies and key sources of estimation uncertainty
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Preparation of the financial statements requires management to make significant judgements and
estimates. The items in the financial statements where these judgements and estimates have been made include:
Judgements
Investments - indicators of impairment
At each reporting date, Section 27 of FRS 102 requires management to assess whether there are any
factors which could indicate that the investments are impaired in value. This assessment requires the
exercise of judgement.
As at the reporting date, management considered that there were no impairment indicators and therefore there is no requirement to re-assess the carrying value of investments.
Investment loans
In the prior period, the company has advanced £8,717,036 to its subsidiary, with a further advance during the year of £7,999,005. The initial advance was considered a loan without repayment or interest terms intended to allow the subsidiary company to meet its ongoing capital requirements., In such situation a judgement is required as to whether the transaction effectively represents an investment. In the prior year, based on this scenario the investment loan was treated as an investment, however, repayments from the subsidiary have subsequently commenced, therefore the investment loan, has been reclassified as an intercompany receivable in the current year.
Estimates
The directors do not consider the financial statements to include any key estimates that require disclosure.
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The Company has no employees other than the directors, who did not receive any remuneration (2021 -£NIL).
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The company does not have any employees under contract (2021: nil)
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OVG EUROPE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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Investments in subsidiary companies
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Transferred to amounts owed by group undertakings
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OVG EUROPE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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Amounts owed by group undertakings
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Allotted, called up and fully paid
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100 (2021 -100) Ordinary shares of £1.00 each
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OVG EUROPE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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Related party transactions
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The company is claiming an exemption confirmed in paragraph 33.1A of FRS 102, Related Party
Disclosures, not to disclose transactions with wholly owned member companies of the group.
During the year company incurred interest costs totalling £2,530,039 (2021: £nil) on behalf of a group company.
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The smallest group of which the Company is a member which draws up consolidated financial statements is that headed by OVG Holdings LLC. This is a company incorporated in the United States of America. The registered address is 11755 Wiltshire Boulevard, Los Angeles, California, 90025.
The auditor's report on the financial statements for the year ended 30 June 2022 was unqualified but drew attention by way of emphasis to the reliance on the financial support provided by the ultimate parent company as disclosed in Note 2.2 of the financial statements.
The audit report was signed on 3 November 2023 by Peter Key (Senior Statutory Auditor) on behalf of CLA Evelyn Partners Limited.
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