Caseware UK (AP4) 2022.0.179 2022.0.179 2023-06-302023-06-302022-07-01166falseNo description of principal activity151truetrueThe members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006. 03363539 2022-07-01 2023-06-30 03363539 2021-07-01 2022-06-30 03363539 2023-06-30 03363539 2022-06-30 03363539 c:Director1 2022-07-01 2023-06-30 03363539 c:Director2 2022-07-01 2023-06-30 03363539 d:Buildings 2022-07-01 2023-06-30 03363539 d:Buildings 2023-06-30 03363539 d:Buildings 2022-06-30 03363539 d:Buildings d:OwnedOrFreeholdAssets 2022-07-01 2023-06-30 03363539 d:Buildings d:ShortLeaseholdAssets 2022-07-01 2023-06-30 03363539 d:Buildings d:ShortLeaseholdAssets 2023-06-30 03363539 d:Buildings d:ShortLeaseholdAssets 2022-06-30 03363539 d:PlantMachinery 2022-07-01 2023-06-30 03363539 d:MotorVehicles 2022-07-01 2023-06-30 03363539 d:FurnitureFittings 2022-07-01 2023-06-30 03363539 d:FurnitureFittings 2023-06-30 03363539 d:FurnitureFittings 2022-06-30 03363539 d:FurnitureFittings d:OwnedOrFreeholdAssets 2022-07-01 2023-06-30 03363539 d:OfficeEquipment 2022-07-01 2023-06-30 03363539 d:OfficeEquipment 2023-06-30 03363539 d:OfficeEquipment 2022-06-30 03363539 d:OfficeEquipment d:OwnedOrFreeholdAssets 2022-07-01 2023-06-30 03363539 d:OwnedOrFreeholdAssets 2022-07-01 2023-06-30 03363539 d:Goodwill 2022-07-01 2023-06-30 03363539 d:Goodwill 2023-06-30 03363539 d:Goodwill 2022-06-30 03363539 d:CurrentFinancialInstruments 2023-06-30 03363539 d:CurrentFinancialInstruments 2022-06-30 03363539 d:Non-currentFinancialInstruments 2023-06-30 03363539 d:Non-currentFinancialInstruments 2022-06-30 03363539 d:CurrentFinancialInstruments d:WithinOneYear 2023-06-30 03363539 d:CurrentFinancialInstruments d:WithinOneYear 2022-06-30 03363539 d:Non-currentFinancialInstruments d:AfterOneYear 2023-06-30 03363539 d:Non-currentFinancialInstruments d:AfterOneYear 2022-06-30 03363539 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2023-06-30 03363539 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2022-06-30 03363539 d:Non-currentFinancialInstruments d:BetweenTwoFiveYears 2023-06-30 03363539 d:Non-currentFinancialInstruments d:BetweenTwoFiveYears 2022-06-30 03363539 d:ShareCapital 2023-06-30 03363539 d:ShareCapital 2022-06-30 03363539 d:RevaluationReserve 2022-07-01 2023-06-30 03363539 d:RevaluationReserve 2023-06-30 03363539 d:RevaluationReserve 2022-06-30 03363539 d:RetainedEarningsAccumulatedLosses 2022-07-01 2023-06-30 03363539 d:RetainedEarningsAccumulatedLosses 2023-06-30 03363539 d:RetainedEarningsAccumulatedLosses 2022-06-30 03363539 d:AcceleratedTaxDepreciationDeferredTax 2023-06-30 03363539 d:AcceleratedTaxDepreciationDeferredTax 2022-06-30 03363539 d:TaxLossesCarry-forwardsDeferredTax 2023-06-30 03363539 d:TaxLossesCarry-forwardsDeferredTax 2022-06-30 03363539 d:RetirementBenefitObligationsDeferredTax 2023-06-30 03363539 d:RetirementBenefitObligationsDeferredTax 2022-06-30 03363539 c:OrdinaryShareClass1 2022-07-01 2023-06-30 03363539 c:OrdinaryShareClass1 2023-06-30 03363539 c:OrdinaryShareClass1 2022-06-30 03363539 c:FRS102 2022-07-01 2023-06-30 03363539 c:AuditExempt-NoAccountantsReport 2022-07-01 2023-06-30 03363539 c:FullAccounts 2022-07-01 2023-06-30 03363539 c:PrivateLimitedCompanyLtd 2022-07-01 2023-06-30 03363539 d:Goodwill d:ExternallyAcquiredIntangibleAssets 2022-07-01 2023-06-30 03363539 5 2022-07-01 2023-06-30 03363539 6 2022-07-01 2023-06-30 03363539 d:Goodwill d:OwnedIntangibleAssets 2022-07-01 2023-06-30 03363539 2 2023-06-30 03363539 2 2022-06-30 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 03363539









HOB SALONS LIMITED







UNAUDITED

FINANCIAL STATEMENTS

INFORMATION FOR FILING WITH THE REGISTRAR

FOR THE YEAR ENDED 30 JUNE 2023

 
HOB SALONS LIMITED
REGISTERED NUMBER: 03363539

BALANCE SHEET
AS AT 30 JUNE 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 4 
135,000
-

Tangible assets
 5 
697,883
717,074

Investments
 6 
2,468
2,468

  
835,351
719,542

Current assets
  

Stocks
 7 
76,341
47,250

Debtors: amounts falling due within one year
 8 
1,417,465
1,332,860

Cash at bank and in hand
 9 
1,505
392,405

  
1,495,311
1,772,515

Creditors: amounts falling due within one year
 10 
(1,758,182)
(1,548,695)

Net current (liabilities)/assets
  
 
 
(262,871)
 
 
223,820

Total assets less current liabilities
  
572,480
943,362

Creditors: amounts falling due after more than one year
 11 
(93,750)
(173,750)

Provisions for liabilities
  

Deferred tax
 13 
(77,669)
(64,362)

Net assets
  
401,061
705,250


Capital and reserves
  

Called up share capital 
 14 
300
300

Revaluation reserve
 15 
355,589
355,589

Profit and loss account
 15 
45,172
349,361

Total equity
  
401,061
705,250


Page 1

 
HOB SALONS LIMITED
REGISTERED NUMBER: 03363539
    
BALANCE SHEET (CONTINUED)
AS AT 30 JUNE 2023

The directors consider that the company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.

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 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 comprehensive income 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 by: 




C Collins
A Konizi
Director
Director


Date: 9 January 2024
Date:9 January 2024

The notes on pages 3 to 14 form part of these financial statements.

Page 2

 
HOB SALONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

1.


General information

HOB Salons Limited is a private company limited by shares and registered in England and Wales. Its registered office address is Aston House, Cornwall Avenue, London, N3 1LF.
The financial statements are presented in Sterling (£), rounded to the nearest £1.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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:

 
2.2

Going concern

After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence and meet its liabilities as they fall due for the foreseeable future, being a period of at least twelve months from the date these financial statements were approved. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Page 3

 
HOB SALONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.Accounting policies (continued)

 
2.3

Revenue

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:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the company has transferred the significant risks and rewards of ownership to the buyer;
the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

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.

 
2.4

Operating leases: the company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.5

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the statement of comprehensive income in the same period as the related expenditure.

Page 4

 
HOB SALONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.Accounting policies (continued)

 
2.6

Finance costs

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.

 
2.7

Pensions

Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

 
2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 5

 
HOB SALONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.Accounting policies (continued)

 
2.9

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the statement of comprehensive income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, as set out below.

Depreciation is provided on the following basis:

Freehold property
-
Short-term leasehold property
-
Straight line over length of the lease
Plant and machinery
-
25%
reducing balance
Motor vehicles
-
25%
reducing balance
Fixtures and fittings
-
25%
reducing balance
Office equipment
-

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 6

 
HOB SALONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.Accounting policies (continued)

 
2.11

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.12

Valuation of investments

Investments in unlisted company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the statement of comprehensive income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 
2.13

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is 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.

 
2.14

Debtors

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.

 
2.15

Cash and cash equivalents

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.

 
2.16

Creditors

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.

Page 7

 
HOB SALONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.Accounting policies (continued)

 
2.17

Provisions for liabilities

Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the balance sheet.

 
2.18

Financial instruments

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.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Investments in non-derivative instruments that are equity to the issuer are measured:
at fair value with changes recognised in the statement of comprehensive income if the shares are publicly traded or their fair value can otherwise be measured reliably;
at cost less impairment for all other investments.

  
2.19

Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

 
2.20

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Employees

The average monthly number of employees, including directors, during the year was 151 (2022 - 166).

Page 8

 
HOB SALONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

4.


Intangible assets




Goodwill

£



Cost


Additions
150,000



At 30 June 2023

150,000



Amortisation


Charge for the year on owned assets
15,000



At 30 June 2023

15,000



Net book value



At 30 June 2023
135,000



At 30 June 2022
-



Page 9

 
HOB SALONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

5.


Tangible fixed assets





Freehold property
Short-term leasehold property
Fixtures and fittings
Office equipment
Total

£
£
£
£
£



Cost or valuation


At 1 July 2022
565,000
462,404
1,640,523
12,592
2,680,519


Additions
-
-
27,084
2,475
29,559


Disposals
-
(104,679)
-
-
(104,679)



At 30 June 2023

565,000
357,725
1,667,607
15,067
2,605,399



Depreciation


At 1 July 2022
-
455,535
1,504,762
3,148
1,963,445


Charge for the year on owned assets
-
1,366
40,711
2,980
45,057


Disposals
-
(100,986)
-
-
(100,986)



At 30 June 2023

-
355,915
1,545,473
6,128
1,907,516



Net book value



At 30 June 2023
565,000
1,810
122,134
8,939
697,883



At 30 June 2022
565,000
6,869
135,761
9,444
717,074

The freehold property is held at a valuation provided by Strettons Chartered Surveyors prepared in November 2016. In the opinion of the directors there has been no material change to the valuation.

If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:

2023
2022
£
£



Cost
462,404
462,404

Accumulated depreciation
(458,702)
(455,535)

Net book value
3,702
6,869

Page 10

 
HOB SALONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

6.


Fixed asset investments





Unlisted investments

£



Cost or valuation


At 1 July 2022
2,468



At 30 June 2023
2,468






Net book value



At 30 June 2023
2,468



At 30 June 2022
2,468


7.


Stocks

2023
2022
£
£

Finished goods and goods for resale
76,341
47,250


Page 11

 
HOB SALONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023


8.


Debtors

2023
2022
£
£


Trade debtors
81,123
78,319

Other debtors
993,670
1,063,409

Prepayments and accrued income
342,672
191,132

1,417,465
1,332,860



9.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
1,505
392,405

Less: bank overdrafts
(454,985)
-

(453,480)
392,405



10.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank overdrafts
454,985
-

Bank loans
62,500
62,500

Trade creditors
371,136
371,833

Corporation tax
42,520
38,015

Other taxation and social security
402,356
449,143

Other creditors
9,663
18,137

Accruals and deferred income
415,022
609,067

1,758,182
1,548,695


A fixed charge is secured over the freehold property in relation to the bank overdraft.

Page 12

 
HOB SALONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

11.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
93,750
156,250

Other creditors
-
17,500

93,750
173,750


A fixed charge is secured over the freehold property in relation to the bank loans.


12.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Bank loans
62,500
62,500

Amounts falling due 1-2 years

Bank loans
62,500
62,500

Amounts falling due 2-5 years

Bank loans
31,250
93,750

156,250
218,750



13.


Deferred taxation




2023


£






At beginning of year
(64,362)


Charged to profit or loss
(13,307)



At end of year
(77,669)

Page 13

 
HOB SALONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
 
13.Deferred taxation (continued)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(32,768)
(20,252)

Surplus on property valuation
(45,936)
(45,936)

Pension unpaid at year end
1,035
1,826

(77,669)
(64,362)


14.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



30,000 (2022 - 30,000) Ordinary shares of £0.01 each
300
300



15.


Reserves

Revaluation reserve

The revaluation reserve relates to the revaluation of the company's freehold property, net of deferred tax. The reserve is not distributable.

Profit and loss account

The profit and loss account includes all current and prior period retained profits and losses and is fully distributable.


16.


Contingent liabilities

The company has agreed to guarantee 50% of all loans drawn by its franchisees provided for the purposes of outfitting their salons. As at the balance sheet date HOB Salons Limited had guaranteed £Nil (2022: £44,382) in respect of these loans.


17.


Pension commitments

The company contributes to a defined contribution pension scheme. The assets of the scheme are held seperately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £48,327 (2022: £43,722). At the balance sheet date, contributions totalling £9,663 (2022: £8,401) remained payable and were held in creditors. 

 
Page 14