REGISTERED NUMBER: 12962492 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2022 |
FOR |
HANOVER HOUSE HOLDINGS LIMITED |
REGISTERED NUMBER: 12962492 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2022 |
FOR |
HANOVER HOUSE HOLDINGS LIMITED |
HANOVER HOUSE HOLDINGS LIMITED (REGISTERED NUMBER: 12962492) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
for the Year Ended 31st March 2022 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 4 |
Report of the Independent Auditors | 5 |
Consolidated Profit and Loss Account | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Financial Statements | 15 |
HANOVER HOUSE HOLDINGS LIMITED |
COMPANY INFORMATION |
for the Year Ended 31st March 2022 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
100 Barbirolli Square |
Manchester |
M2 3BD |
HANOVER HOUSE HOLDINGS LIMITED (REGISTERED NUMBER: 12962492) |
GROUP STRATEGIC REPORT |
for the Year Ended 31st March 2022 |
The directors present their strategic report of the company for the year ended 31st March 2022. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the period under review was that of debt management services. |
REVIEW OF BUSINESS |
2022 | 2021 |
£'000 | £'000 |
Turnover | 26,521 | 5,870 |
Gross profit | 9,835 | 69 |
Gross profit margin (%) | 37% | 1% |
Profit before taxation | 1,793 | (1,529 | ) |
OPERATIONAL REVIEW |
Turnover has increased in the year by £20,651k, the increase is largely explained by the prior period being 9 months shorter than 2022. Like for like turnover in the main trading company has increased by £3,939k, this is mainly as a consequence of a fee structure change in agreement with creditors. In line with this, Hanover now only propose cases on a "fixed fee" basis which increased nominee remuneration per case and a further possible increase in supervisor fees. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The management of the business and sectors served are subject to a number of risks, but the directors are confident that the current quality management system that the company adopts is adequate to identify and manage any arising issues. |
FINANCIAL RISK MANAGEMENT |
The company is exposed to a number of financial risks including the effect of credit risk. |
Appropriate credit checks are undertaken on all potential customers before liabilities are incurred. Individual exposures are monitored on an ongoing basis to ensure bad debts are minimised. |
LIQUIDITY RISK |
The company regularly forecast cash flow to ensure that sufficient funds are available for operational requirements. This is supplemented with appropriate banking facilities. |
OUR PEOPLE |
The company believes that its people are a real asset to the company and the key to long term success. We have continued to invest in the development of talent within the business. |
The company values the involvement of its employees, and keeps them informed on issues affecting them as employees, and on the various factors affecting the company. |
HANOVER HOUSE HOLDINGS LIMITED (REGISTERED NUMBER: 12962492) |
GROUP STRATEGIC REPORT |
for the Year Ended 31st March 2022 |
DISABLED EMPLOYEES |
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitude of the applicant concerned. In the event of employees becoming disabled every effort is made to ensure that their employment with the company continues and that appropriate and relevant training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees. |
ON BEHALF OF THE BOARD: |
HANOVER HOUSE HOLDINGS LIMITED (REGISTERED NUMBER: 12962492) |
REPORT OF THE DIRECTOR |
for the Year Ended 31st March 2022 |
The director presents his report with the financial statements of the company and the group for the year ended 31st March 2022. |
DIVIDENDS |
No dividends will be distributed for the year ended 31st March 2022. |
DIRECTOR |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 company and the group 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 then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he has taken all the 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 group's auditors are aware of that information. |
AUDITORS |
In accordance with section 485 of the Companies Act 2006, Xeinadin Audit Limited will be proposed for reappointment. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HANOVER HOUSE HOLDINGS LIMITED |
Opinion |
We have audited the financial statements of Hanover House Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st March 2022 which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Financial Statements, including a summary of 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 affairs as at 31st March 2022 and of the group's 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 Auditors' 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's and the 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 director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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. 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 Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HANOVER HOUSE HOLDINGS LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or 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; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page four, 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 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 group's and the parent 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 group or the parent company or to cease operations, or has no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HANOVER HOUSE HOLDINGS LIMITED |
Auditors' 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Identifying and assessing potential risks related to irregularities |
In identifying and assessing risks of material misstatement in respect of irregularities including fraud and non-compliance with laws and regulations we have considered the following: |
- | The nature of the industry and sector, control environment and business performance including the company's remuneration policies, key drivers for directors remuneration, bonus levels and performance targets; |
- | Results of the enquiries of management about their own identification and assessment of the risks of irregularities; |
- | Any matters we have identified having obtained and reviewed the company's documentation of their policies and procedures relating to: |
- | identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; |
- | detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; |
- | the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; |
- | the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of income and recoverability of trade debtors. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. |
We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, employment law, health and safety, pensions legislation and tax legislation. |
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. |
Audit response to risks identified |
Our procedures to respond to risks identified included the following: |
- | reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
- | enquiring of management concerning actual and potential litigation and claims; |
- | performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- | reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and |
- | in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HANOVER HOUSE HOLDINGS LIMITED |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK). |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
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 a Report of the Auditors 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. |
for and on behalf of |
100 Barbirolli Square |
Manchester |
M2 3BD |
HANOVER HOUSE HOLDINGS LIMITED (REGISTERED NUMBER: 12962492) |
CONSOLIDATED PROFIT AND LOSS ACCOUNT |
for the Year Ended 31st March 2022 |
Period |
20/10/20 |
Year ended | to |
31/3/22 | 31/3/21 |
Notes | £ | £ |
TURNOVER | 3 | 26,521,187 | 5,870,233 |
Cost of sales | (16,685,882 | ) | (5,801,076 | ) |
GROSS PROFIT | 9,835,305 | 69,157 |
Administrative expenses | (8,177,343 | ) | (1,644,697 | ) |
1,657,962 | (1,575,540 | ) |
Other operating income | 150,473 | 55,353 |
OPERATING PROFIT/(LOSS) | 5 | 1,808,435 | (1,520,187 | ) |
Interest payable and similar expenses | 6 | (15,333 | ) | (9,073 | ) |
PROFIT/(LOSS) BEFORE TAXATION | 1,793,102 | (1,529,260 | ) |
Tax on profit/(loss) | 7 | (562,953 | ) | (5,934 | ) |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR | ( |
) |
HANOVER HOUSE HOLDINGS LIMITED (REGISTERED NUMBER: 12962492) |
CONSOLIDATED BALANCE SHEET |
31st March 2022 |
2022 | 2021 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 12,971,332 | 4,310,752 |
Tangible assets | 10 | 21,386 | 23,734 |
Investments | 11 | - | - |
12,992,718 | 4,334,486 |
CURRENT ASSETS |
Debtors | 12 | 1,520,528 | 1,829,241 |
Cash at bank | 230,348 | 534,592 |
1,750,876 | 2,363,833 |
CREDITORS |
Amounts falling due within one year | 13 | (15,503,753 | ) | (6,975,002 | ) |
NET CURRENT LIABILITIES | (13,752,877 | ) | (4,611,169 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES | (760,159 | ) | (276,683 | ) |
PROVISIONS FOR LIABILITIES | 15 | (5,347 | ) | (5,934 | ) |
NET LIABILITIES | (765,506 | ) | (282,617 | ) |
CAPITAL AND RESERVES |
Called up share capital | 16 | 100 | 100 |
Retained earnings | 17 | (765,606 | ) | (921,116 | ) |
SHAREHOLDERS' FUNDS | (765,506 | ) | (921,016 | ) |
NON-CONTROLLING INTERESTS | - | 638,399 |
TOTAL EQUITY | (765,506 | ) | (282,617 | ) |
The financial statements were approved by the director and authorised for issue on 30th April 2024 and were signed by: |
Mr D Le-Cheminant - Director |
HANOVER HOUSE HOLDINGS LIMITED (REGISTERED NUMBER: 12962492) |
COMPANY BALANCE SHEET |
31st March 2022 |
2022 | 2021 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Debtors | 12 |
CREDITORS |
Amounts falling due within one year | 13 | ( |
) | ( |
) |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 16 |
Retained earnings | 17 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 2,008,730 | - |
The financial statements were approved by the director and authorised for issue on |
HANOVER HOUSE HOLDINGS LIMITED (REGISTERED NUMBER: 12962492) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 31st March 2022 |
Called up |
share | Retained | Non-controlling | Total |
capital | earnings | Total | interests | equity |
£ | £ | £ | £ | £ |
Deficit for the period | - | (921,116 | ) | (921,116 | ) | (614,078 | ) | (1,535,194 | ) |
Total comprehensive loss | - | (921,116 | ) | (921,116 | ) | (614,078 | ) | (1,535,194 | ) |
Issue of share capital | 100 | - | 100 | - | 100 |
100 | (921,116 | ) | (921,016 | ) | (614,078 | ) | (1,535,094 | ) |
Acquisition of non-controlling interest | - | - | - | 1,252,477 | 1,252,477 |
Balance at 31st March 2021 | 100 | (921,116 | ) | (921,016 | ) | 638,399 | (282,617 | ) |
Profit for the year | - | 1,230,149 | 1,230,149 | - | 1,230,149 |
Total comprehensive income | - | 1,230,149 | 1,230,149 | - | 1,230,149 |
Transfer of reserves | - | (1,074,639 | ) | (1,074,639 | ) | (638,399 | ) | (1,713,038 | ) |
Balance at 31st March 2022 | 100 | (765,606 | ) | (765,506 | ) | - | (765,506 | ) |
HANOVER HOUSE HOLDINGS LIMITED (REGISTERED NUMBER: 12962492) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 31st March 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Profit for the period | - | - | - |
Issue of share capital | - |
Balance at 31st March 2021 |
Profit for the year | - | 2,008,730 | 2,008,730 |
Total comprehensive income | - |
Balance at 31st March 2022 |
HANOVER HOUSE HOLDINGS LIMITED (REGISTERED NUMBER: 12962492) |
CONSOLIDATED CASH FLOW STATEMENT |
for the Year Ended 31st March 2022 |
Period |
20/10/20 |
Year ended | to |
31/3/22 | 31/3/21 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 20 | 6,825,939 | 130,483 |
Interest element of hire purchase or finance lease rental payments paid |
(15,333 |
) |
(9,073 |
) |
Tax paid | (317,741 | ) | (16,593 | ) |
Net cash from operating activities | 6,492,865 | 104,817 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (5,925 | ) | (2,212 | ) |
Acquisition of subsidiary | (5,991,200 | ) | - |
Sale of tangible fixed assets | 38 | - |
Net cash acquired with subsidiary | - | 431,875 |
Net cash from investing activities | (5,997,087 | ) | 429,663 |
Cash flows from financing activities |
Loan repayments in year | (800,011 | ) | - |
Share issue | - | 100 |
Net cash from financing activities | (800,011 | ) | 100 |
(Decrease)/increase in cash and cash equivalents | (304,233 | ) | 534,580 |
Cash and cash equivalents at beginning of year | 21 | 534,580 | - |
Cash and cash equivalents at end of year | 21 | 230,347 | 534,580 |
HANOVER HOUSE HOLDINGS LIMITED (REGISTERED NUMBER: 12962492) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
for the Year Ended 31st March 2022 |
1. | STATUTORY INFORMATION |
Hanover House Holdings Limited is a private company limited by share capital, incorporated in England and Wales, registration number 12962492. The address of the registered office and principal place of business is Sale Point 2nd Floor, 126-150 Washway Road, Sale, Manchester, M33 6AG. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The group financial statements consolidate the financial statements of the company and its subsidiary undertaking drawn up to 31st March 2022. |
Business combinations are accounted for under the purchase method. Where necessary, adjustments are made to the financial statements to bring the accounting policies used into line with those used by the group. All intra-group transactions, balances, income and expenses are eliminated on consolidation. |
Turnover |
Turnover represents amounts recognised by the company in respect of services supplied, exclusive of Value Added Tax. Turnover principally consists of charges and fees relating to structured debt solutions, which are recognised at the point of which the services are provided. |
Government grants |
Government revenue grants are recognised in the profit and loss account over the period in which the related costs are recognised. |
Goodwill |
Goodwill, being the amount paid in connection with the acquisition of a business, is being amortised evenly over its estimated useful life of ten years. |
Tangible fixed assets |
Tangible fixed assets under the cost model ar 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, on the following basis: |
Office equipment | 20% on cost |
Fixtures & fittings | 20% on cost |
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. |
HANOVER HOUSE HOLDINGS LIMITED (REGISTERED NUMBER: 12962492) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31st March 2022 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Pension costs and other post-retirement benefits |
The company contributes to a defined contribution plan for the benefit of its employees. Contributions are recognised in the profit or loss as they become payable. |
Trade and other debtors |
Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the receivables are stated at cost less impairment losses for bad and doubtful debts. |
Trade and other creditors |
Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost. |
Cash and cash equivalents |
Cash and cash equivalents are represented by cash in hand. |
3. | TURNOVER |
The turnover and profit (2021 - loss) before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
Period |
20/10/20 |
Year ended | to |
31/3/22 | 31/3/21 |
£ | £ |
Charges and fees | 26,521,187 | 5,870,233 |
26,521,187 | 5,870,233 |
HANOVER HOUSE HOLDINGS LIMITED (REGISTERED NUMBER: 12962492) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31st March 2022 |
3. | TURNOVER - continued |
An analysis of turnover by geographical market is given below: |
Period |
20/10/20 |
Year ended | to |
31/3/22 | 31/3/21 |
£ | £ |
United Kingdom | 26,521,187 | 5,870,233 |
26,521,187 | 5,870,233 |
4. | EMPLOYEES AND DIRECTORS |
Period |
20/10/20 |
Year ended | to |
31/3/22 | 31/3/21 |
£ | £ |
Wages and salaries | 2,597,433 | 952,288 |
Social security costs | 249,648 | 96,832 |
Other pension costs | 66,596 | 15,303 |
2,913,677 | 1,064,423 |
The average number of employees during the year was as follows: |
Period |
20/10/20 |
Year ended | to |
31/3/22 | 31/3/21 |
Director | 1 | 1 |
Accounts | 2 | 2 |
Operation | 66 | 117 |
Period |
20/10/20 |
Year ended | to |
31/3/22 | 31/3/21 |
£ | £ |
Directors' remuneration | - | - |
HANOVER HOUSE HOLDINGS LIMITED (REGISTERED NUMBER: 12962492) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31st March 2022 |
5. | OPERATING PROFIT/(LOSS) |
The operating profit (2021 - operating loss) is stated after charging: |
Period |
20/10/20 |
Year ended | to |
31/3/22 | 31/3/21 |
£ | £ |
Other operating leases | 197,727 | 28,795 |
Depreciation - owned assets | 7,665 | 2,797 |
Loss on disposal of fixed assets | 570 | 223 |
Goodwill amortisation | 1,092,322 | 110,532 |
Auditors' remuneration | 29,000 | 14,000 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period |
20/10/20 |
Year ended | to |
31/3/22 | 31/3/21 |
£ | £ |
Interest on overdue tax paid | 15,333 | 9,073 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
Period |
20/10/20 |
Year ended | to |
31/3/22 | 31/3/21 |
£ | £ |
Current tax: |
UK corporation tax | 563,540 | - |
Deferred tax | (587 | ) | 5,934 |
Tax on profit/(loss) | 562,953 | 5,934 |
HANOVER HOUSE HOLDINGS LIMITED (REGISTERED NUMBER: 12962492) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31st March 2022 |
7. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
Period |
20/10/20 |
Year ended | to |
31/3/22 | 31/3/21 |
£ | £ |
Profit/(loss) before tax | 1,793,102 | (1,529,260 | ) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 19 % (2021 - 19 %) |
340,689 |
(290,559 |
) |
Effects of: |
Expenses not deductible for tax purposes | 15,310 | 6,816 |
Capital allowances in excess of depreciation | - | (2,233 | ) |
Late interest | - | 1,724 |
Deferred tax | (587 | ) | 5,934 |
Goodwill amortisation | 207,541 | 107,284 |
Pre acquisition tax charge | - | 176,968 |
Total tax charge | 562,953 | 5,934 |
8. | INDIVIDUAL PROFIT AND LOSS ACCOUNT |
As permitted by Section 408 of the Companies Act 2006, the Profit and Loss Account of the parent company is not presented as part of these financial statements. |
HANOVER HOUSE HOLDINGS LIMITED (REGISTERED NUMBER: 12962492) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31st March 2022 |
9. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1st April 2021 | 4,421,284 |
Additions | 9,752,902 |
At 31st March 2022 | 14,174,186 |
AMORTISATION |
At 1st April 2021 | 110,532 |
Amortisation for year | 1,092,322 |
At 31st March 2022 | 1,202,854 |
NET BOOK VALUE |
At 31st March 2022 | 12,971,332 |
At 31st March 2021 | 4,310,752 |
10. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
and | Computer |
fittings | equipment | Totals |
£ | £ | £ |
COST |
At 1st April 2021 | 21,414 | 63,178 | 84,592 |
Additions | 3,847 | 2,078 | 5,925 |
Disposals | - | (786 | ) | (786 | ) |
At 31st March 2022 | 25,261 | 64,470 | 89,731 |
DEPRECIATION |
At 1st April 2021 | 6,966 | 53,892 | 60,858 |
Charge for year | 4,069 | 3,596 | 7,665 |
Eliminated on disposal | - | (178 | ) | (178 | ) |
At 31st March 2022 | 11,035 | 57,310 | 68,345 |
NET BOOK VALUE |
At 31st March 2022 | 14,226 | 7,160 | 21,386 |
At 31st March 2021 | 14,448 | 9,286 | 23,734 |
HANOVER HOUSE HOLDINGS LIMITED (REGISTERED NUMBER: 12962492) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31st March 2022 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1st April 2021 |
Additions |
At 31st March 2022 |
NET BOOK VALUE |
At 31st March 2022 |
At 31st March 2021 |
The following were subsidiary undertakings of the company: |
Name |
Country of incorporation |
Class of shares |
Holding |
Principal Activity |
Hanover Insolvency Limited | England and Wales | Ordinary | 100% | Debt Management |
The address of the registered office and principal place of business is Sale Point 2nd Floor, 126-150 Washway Road, Sale, Manchester, M33 6AG |
The above company has been included in these financial statements. |
ACQUISITIONS |
On 23rd December 2020, the Group acquired 60% of the share capital of Hanover Insolvency Limited for a consideration of £6,300,000. The fair value of the assets acquired attributable to the Group were £1,878,716, resulting in goodwill on acquisition of £4,421,284. This reflected the excess of the total costs of the acquisition over the fair value Group's share of the net assets acquired. |
On 22nd August 2021 the remaining 40% of the share capital of Hanover Insolvency Limited was acquired for consideration of £11,466,000.The fair value of the assets acquired attributable to the Group at that date were £1,713,098, resulting in goodwill on acquisition of £9,752,902. |
The goodwill on acquisition is to be amortised over its estimated useful life of 10 years, subject to any impairment review. |
HANOVER HOUSE HOLDINGS LIMITED (REGISTERED NUMBER: 12962492) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31st March 2022 |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Trade debtors | 82,466 | 23,775 |
Other debtors | 1,207,414 | 1,536,270 |
Prepayments and accrued income | 230,648 | 269,196 |
1,520,528 | 1,829,241 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 14) | 1 | 12 |
Trade creditors | 4,096,888 | 2,179,340 |
Amounts owed to group undertakings | - | - |
Tax | 794,770 | 548,971 |
Social security and other taxes | 144,418 | 175,033 |
Pensions | 21,271 | 36,844 | - | - |
Other creditors | 4,919,999 | 220,802 |
Deferred consideration | 5,474,798 | 3,800,000 | 5,474,798 | 3,800,000 |
Accrued expenses | 51,608 | 14,000 |
15,503,753 | 6,975,002 |
14. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2022 | 2021 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 1 | 12 |
15. | PROVISIONS FOR LIABILITIES |
Group |
2022 | 2021 |
£ | £ |
Deferred tax | 5,347 | 5,934 |
HANOVER HOUSE HOLDINGS LIMITED (REGISTERED NUMBER: 12962492) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31st March 2022 |
15. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1st April 2021 | 5,934 |
Utilised during year | (587 | ) |
Balance at 31st March 2022 | 5,347 |
16. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
Ordinary | £1 | 100 | 100 |
17. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1st April 2021 | (921,116 | ) |
Profit for the year | 1,230,149 |
Transfer of reserves | (1,074,639 | ) |
At 31st March 2022 | (765,606 | ) |
Company |
Retained |
earnings |
£ |
Profit for the year |
At 31st March 2022 |
18. | RELATED PARTY DISCLOSURES |
During the year the company paid management charges of £1,700,000 (2021: £Nil) to a company controlled by A Deering. |
19. | ULTIMATE CONTROLLING PARTY |
The company's ultimate controlling party is Daniel Le-Cheminant, by virtue of his majority shareholding in Hanover House Holdings Limited. |
HANOVER HOUSE HOLDINGS LIMITED (REGISTERED NUMBER: 12962492) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31st March 2022 |
20. | RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Period |
20/10/20 |
Year ended | to |
31/3/22 | 31/3/21 |
£ | £ |
Profit/(loss) before taxation | 1,793,102 | (1,529,260 | ) |
Depreciation charges | 1,099,987 | 113,329 |
Loss on disposal of fixed assets | 570 | 223 |
Finance costs | 15,333 | 9,073 |
2,908,992 | (1,406,635 | ) |
Decrease/(increase) in trade and other debtors | 308,712 | (185,894 | ) |
Increase in trade and other creditors | 3,608,235 | 1,723,012 |
Cash generated from operations | 6,825,939 | 130,483 |
21. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31st March 2022 |
31/3/22 | 1/4/21 |
£ | £ |
Cash and cash equivalents | 230,348 | 534,592 |
Bank overdrafts | (1 | ) | (12 | ) |
230,347 | 534,580 |
Period ended 31st March 2021 |
31/3/21 | 20/10/20 |
£ | £ |
Cash and cash equivalents | 534,592 | - |
Bank overdrafts | (12 | ) | - |
534,580 | - |
22. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/4/21 | Cash flow | At 31/3/22 |
£ | £ | £ |
Net cash |
Cash at bank | 534,592 | (304,244 | ) | 230,348 |
Bank overdrafts | (12 | ) | 11 | (1 | ) |
534,580 | (304,233 | ) | 230,347 |
Total | 534,580 | (304,233 | ) | 230,347 |