Company registration number 00592645 (England and Wales)
HAZLITT LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
PAGES FOR FILING WITH REGISTRAR
HAZLITT LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 5
HAZLITT LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2023
31 October 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
76,546
85,917
Current assets
Debtors
5
19,230,254
20,676,358
Cash at bank and in hand
33,624
6,453
19,263,878
20,682,811
Creditors: amounts falling due within one year
6
(17,197,529)
(18,468,195)
Net current assets
2,066,349
2,214,616
Net assets
2,142,895
2,300,533
Capital and reserves
Called up share capital
8
100
100
Profit and loss reserves
2,142,795
2,300,433
Total equity
2,142,895
2,300,533
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 October 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 9 July 2024 and are signed on its behalf by:
J E Morton Morris
Director
Company Registration No. 00592645
HAZLITT LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 OCTOBER 2023
31 October 2023
- 2 -
1
Judgements and key sources of estimation uncertainty
The preparation of the financial statements required management to make judgements, estimates and assumptions that affect the amounts reported for revenue and expenses during the year. Management makes estimates and assumptions concerning the future. The resulting accounting estimates will by definition not always equal the related actual results.
Management have not been required to make any key estimates or judgements when preparing financial statements.
2
Accounting policies
Company information
Hazlitt Limited is a private company limited by shares incorporated in England and Wales. The registered office is 38 Bury Street, London, United Kingdom, SW1Y 6BB. The principle activity of the Company is advisory services relating to the purchase of paintings by third parties.
2.1
Accounting convention
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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
2.2
Going concern
The director has at the time of approving the financial statements, a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus he continue to adopt the going concern basis of accounting in preparing the financial statements.
2.3
Turnover
Turnover comprises of the invoice values of commission income and advisory services provided by the Company during the years exclusive of Value Added Tax.
The Company does not offer any long term contracts and so the turnover is recognised on the invoice date which is the date when all the work associated with the earning commission has been completed.
2.4
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 recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
15% reducing balance
Motor vehicles
15% reducing balance
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 the Statement of Comprehensive Income.
HAZLITT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
2
Accounting policies
(Continued)
- 3 -
2.5
Financial instruments
Basic financial assets
The Company's financial assets comprise basic financial instruments, being trade and other receivables and cash and bank balances.
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of no more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months or less from the date of the acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Trade and other receivables are measured at transaction price less any impairment. Any impairment loss is recognised in the Statement of Comprehensive Income.
The impairment loss is measured as the difference between an asset's carrying amount and best estimate, which is an approximation of the amount that the Company would receive for the assets if it were to be sold at the reporting date.
Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire or are settled, or when substantially all the risks and rewards of ownership have been transferred.
Basic financial liabilities
The Company's financial liabilities comprise of basic financial liabilities, being trade and other payables, amounts due to fellow group companies and accruals. These are initially recognised at transaction price and are subsequently measured at amortised cost.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non current liabilities.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
2.6
Retirement benefits
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 the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plans are held separately from the company in independently administered funds.
HAZLITT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
2
Accounting policies
(Continued)
- 4 -
2.7
Foreign exchange
Foreign currency transactions are translated into the functional currency using the spot exchange rate at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when the fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income.
2.8
Finance costs are charged to the Statement of Comprehensive Income over the term of debt using the effective interest so that the amount charged is at a constant rate on the carrying amount. Issued costs are initially recognised as a reduction in the proceeds of the associated capital instruments.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
9
7
4
Tangible fixed assets
Fixtures and fittings
Motor vehicles
Total
£
£
£
Cost
At 1 November 2022
110,792
22,512
133,304
Additions
4,137
4,137
At 31 October 2023
114,929
22,512
137,441
Depreciation and impairment
At 1 November 2022
34,613
12,774
47,387
Depreciation charged in the year
12,047
1,461
13,508
At 31 October 2023
46,660
14,235
60,895
Carrying amount
At 31 October 2023
68,269
8,277
76,546
At 31 October 2022
76,179
9,738
85,917
HAZLITT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 5 -
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
850,891
2,827,617
Amounts owed by group undertakings and related parties
12,297,346
12,273,981
Other debtors
990,529
514,455
Prepayments and accrued income
5,091,488
5,060,305
19,230,254
20,676,358
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
637,992
739,393
Trade creditors
8,449,828
11,388,768
Amounts owed to group undertakings and related parties
5,541,718
4,030,536
Taxation and social security
29,522
18,782
Other creditors
2,538,469
2,290,716
17,197,529
18,468,195
7
Loans and overdrafts
2023
2022
£
£
Bank overdrafts
637,992
739,393
Payable within one year
637,992
739,393
8
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Called up share capital of £1 each
100
100
100
100
9
Parent company
The Company's immediate and ultimate parent undertaking is Hazlitt Fine Art Holdings Limited. The directors consider the companies ultimate controller to be J. E. Morton Morris.