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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: Mr D Le-Cheminant





REGISTERED OFFICE: Sale Point
2nd Floor
126-150 Washway Road
Sale
Greater Manchester
M33 6AG





REGISTERED NUMBER: 12962492 (England and Wales)





AUDITORS: Xeinadin Audit Limited
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:





Mr D Le-Cheminant - Director


30th April 2024

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
Mr D Le-Cheminant held office during the whole of the period from 1st April 2021 to the date of this report.

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:





Mr D Le-Cheminant - Director


30th April 2024

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.




Richard Lloyd (Senior Statutory Auditor)
for and on behalf of Xeinadin Audit Limited
100 Barbirolli Square
Manchester
M2 3BD

30th April 2024

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 1,230,149 (1,535,194 )

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 17,766,000 6,300,060
17,766,000 6,300,060

CURRENT ASSETS
Debtors 12 100 100

CREDITORS
Amounts falling due within one year 13 (15,757,270 ) (6,300,060 )
NET CURRENT LIABILITIES (15,757,170 ) (6,299,960 )
TOTAL ASSETS LESS CURRENT LIABILITIES 2,008,830 100

CAPITAL AND RESERVES
Called up share capital 16 100 100
Retained earnings 17 2,008,730 -
SHAREHOLDERS' FUNDS 2,008,830 100

Company's profit for the financial year 2,008,730 -

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)

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 100 - 100
Balance at 31st March 2021 100 - 100
Profit for the year - 2,008,730 2,008,730
Total comprehensive income - 2,008,730 2,008,730
Balance at 31st March 2022 100 2,008,730 2,008,830

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
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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 equipment20% on cost
Fixtures & fittings20% 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
69 120

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 6,300,060
Additions 11,465,940
At 31st March 2022 17,766,000
NET BOOK VALUE
At 31st March 2022 17,766,000
At 31st March 2021 6,300,060


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 1,536,270 100 100
Prepayments and accrued income 230,648 269,196 - -
1,520,528 1,829,241 100 100

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 - - 5,491,201 2,500,000
Tax 794,770 548,971 16,150 -
Social security and other taxes 144,418 175,033 - -
Pensions 21,271 36,844 - -
Other creditors 4,919,999 220,802 4,760,121 60
Deferred consideration 5,474,798 3,800,000 5,474,798 3,800,000
Accrued expenses 51,608 14,000 15,000 -
15,503,753 6,975,002 15,757,270 6,300,060

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: £    £   
100 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 2,008,730
At 31st March 2022 2,008,730


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