Company Registration No. 03774069 (England and Wales)
HAMILTON HEATH ESTATES LIMITED
FINANCIAL STATEMENTS
PAGES FOR FILING WITH REGISTRAR
PM+M Solutions for Business LLP
Chartered Accountants
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
HAMILTON HEATH ESTATES LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 8
HAMILTON HEATH ESTATES LIMITED
BALANCE SHEET
- 1 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
3
60,134
77,860
Investment property
4
26,020,000
26,475,000
26,080,134
26,552,860
Current assets
Debtors
5
3,108,535
2,050,319
Cash at bank and in hand
563,410
1,369,422
3,671,945
3,419,741
Creditors: amounts falling due within one year
6
(7,281,763)
(7,447,539)
Net current liabilities
(3,609,818)
(4,027,798)
Total assets less current liabilities
22,470,316
22,525,062
Creditors: amounts falling due after more than one year
7
(11,331,508)
(11,205,870)
Net assets
11,138,808
11,319,192
Capital and reserves
Called up share capital
9
3,000,100
3,000,100
Revaluation reserve
9,666,126
9,814,209
Profit and loss reserves
(1,527,418)
(1,495,117)
Total equity
11,138,808
11,319,192
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The restatement relates to a prior year adjustment totalling £475,000 to the deferred tax.
The financial statements were approved by the board of directors and authorised for issue on 31 January 2024 and are signed on its behalf by:
A Chaytow
Director
Company registration number 03774069 (England and Wales)
HAMILTON HEATH ESTATES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023
- 2 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
As restated for the period ended 31 May 2022:
Balance at 1 June 2021
3,000,100
8,513,581
(4,431,325)
7,082,356
Year ended 31 May 2022:
Profit and total comprehensive income
-
-
4,236,836
4,236,836
Transfers
-
1,300,628
(1,300,628)
-
Balance at 31 May 2022
3,000,100
9,814,209
(1,495,117)
11,319,192
Year ended 31 May 2023:
Loss and total comprehensive income
-
-
(180,384)
(180,384)
Transfers
-
(148,083)
148,083
-
Balance at 31 May 2023
3,000,100
9,666,126
(1,527,418)
11,138,808
HAMILTON HEATH ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
- 3 -
1
Accounting policies
Company information
Hamilton Heath Estates Limited is a private company limited by shares incorporated in England and Wales. The registered office is Lester House, 19-21 Broad Street, Bury, Lancashire, BL9 0DA.
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 to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Revenue
Property rental income is recognised evenly over the period of the lease, with the value of any incentive provided, recognised over the minimum period of the lease.
1.3
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:
Plant and equipment
25% straight line
Motor vehicles
25% straight line
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 credited or charged to profit or loss.
1.4
Investment properties
Investment properties are carried at open market value derived from consideration of rental yields and transactions for comparable properties as determined by independent valuers or the directors as considered appropriate. Surplus or deficit arising in respect of these valuations recorded in comprehensive income and classified within a separate non-distributable reserve
1.5
Cash at bank and in hand
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
HAMILTON HEATH ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 4 -
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities.
1.7
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 company’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 when the company has 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.
HAMILTON HEATH ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 5 -
1.8
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.9
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
8
8
3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 June 2022
134,387
Additions
5,337
Disposals
(5,427)
At 31 May 2023
134,297
Depreciation and impairment
At 1 June 2022
56,527
Depreciation charged in the year
17,636
At 31 May 2023
74,163
Carrying amount
At 31 May 2023
60,134
At 31 May 2022
77,860
HAMILTON HEATH ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 6 -
4
Investment property
2023
£
Fair value
At 1 June 2022
26,475,000
Additions
118,083
Revaluations
(573,083)
At 31 May 2023
26,020,000
The company owns a number of multi-let commercial properties in North West England as investments. All of the investment property was valued by an external independent valuer on a fair value basis in the period ended 31 May 2023.
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
189,666
137,928
Amounts owed by group undertakings
1,735,479
1,782,479
Other debtors
1,178,172
365,435
Prepayments and accrued income
110,218
89,477
3,213,535
2,375,319
Deferred tax asset (note )
(105,000)
(325,000)
3,108,535
2,050,319
Included within other debtors are amounts due to directors of £36,763 (2022: Nil). This being the maximum outstanding during the year.
6
Creditors: amounts falling due within one year
2023
2022
£
£
Obligations under finance leases
4,812
7,779
Other borrowings
2,907,270
2,907,270
Trade creditors
81,284
158,267
Amounts owed to group undertakings
2,720,359
2,860,859
Taxation and social security
93,230
65,818
Other creditors
874,084
964,023
Accruals and deferred income
600,724
483,523
7,281,763
7,447,539
HAMILTON HEATH ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
6
Creditors: amounts falling due within one year
(Continued)
- 7 -
Included within other creditors are amounts due to directors of £333,833 (2022: £841,420). Interest is not charged on these balances.
The amounts included within other borrowings is due to a pension fund where one of the directors is a trustee. In relation to this loan the company has agreed to provide legal charges over all its properties in favour of the Trustees and at any time on or after an Event of Default, the Trustees may enforce such security. It has been agreed that the bank loan security detailed below shall have priority over this loan. Post year end in June 2023, the terms of the agreement were extended with the final repayment date being June 2026.
Included in other creditors is a £400,000 loan due to a company under common control. Interest was charged at 6.5% per annum. The loan was fully repaid shortly after the reporting date.
The obligations under hire purchase contracts are secured on the assets to which they relate.
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
11,325,000
11,193,392
Other creditors
6,508
12,478
11,331,508
11,205,870
Secured loans
Bank loans are secured by way of a first legal charge over the properties held by the company. Other group companies have given cross guarantees in relation to this bank loan and are also party to continuing debentures. There has also been an agreed deed of subordination in respect of any shareholder or director loan, ranking these loans behind Arbuthnot in the event of a winding up.
Subsequent to the year end, as part of a refinancing exercise the existing bank loans have been consolidated into one bank loan facility agreement and repayment has been scheduled 60 months following the drawdown in August 2023. Interest of 2.5% is to be charged on the loan per annum. The new facility is secured by way of a debenture and first legal charge over the properties held by the company. Other group companies have entered into subordination deeds in relation to this bank loan
Other creditors
The obligations under hire purchase contracts are secured on the assets to which they relate.
8
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
6,049
6,468
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
HAMILTON HEATH ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 8 -
9
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
3,000,100
3,000,100
3,000,100
3,000,100
10
Reserves
At the year end there has been a transfer between the revaluation reserve and the profit and loss accounts reserve of (£148,083) (2022: £1,300,628) due to a decrease in the aggregate market value of the properties held.
11
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Ceri Dixon BSc (Hons) ACA
Statutory Auditor:
PM+M Solutions for Business LLP
12
Related party transactions
As permitted by FRS 102 the financial statements do not disclose transactions with companies under common control or transactions included at market value.
13
Events after the reporting date
Post year end the company has changed who they bank with, this has resulted in a one off arrangement fee in the current year of £127,849.
14
Prior period adjustment
A prior year adjustment totalling £475,000 was made to the deferred tax.
Changes to the balance sheet
Adjustment
£
Current assets
Debtors due within one year
(475,000)
Capital and reserves
Profit and loss reserves
(475,000)
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