REGISTERED NUMBER: |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
FOR |
HESMONDS STUD LIMITED |
REGISTERED NUMBER: |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
FOR |
HESMONDS STUD LIMITED |
HESMONDS STUD LIMITED (REGISTERED NUMBER: 07362725) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 3 |
HESMONDS STUD LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Statutory Auditors |
First Floor |
13a High Street |
Edenbridge |
Kent |
TN8 5AB |
HESMONDS STUD LIMITED (REGISTERED NUMBER: 07362725) |
BALANCE SHEET |
30TH SEPTEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
Tangible assets | 5 |
CURRENT ASSETS |
Stocks | 6 |
Debtors: amounts falling due within one year | 7 |
Debtors: amounts falling due after more than one year |
7 |
Investments | 8 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 9 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
( |
) |
( |
) |
CAPITAL AND RESERVES |
Called up share capital |
Retained earnings | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) | ( |
) |
In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
HESMONDS STUD LIMITED (REGISTERED NUMBER: 07362725) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
1. | STATUTORY INFORMATION |
Hesmonds Stud Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
The directors consider the company to be a going concern on the basis that the loan from the holding company is repayable only as and when the resources of the company permit repayment and that the controlling party will continue to provide his personal security for the bank borrowing. The directors are confident that the holding company and the controlling party have the means and the intention to continue to support the cash flow the company requires for its day to day operations. |
Revenue recognition |
Turnover represents amounts received or receivable for goods and services provided in the normal course of business, together with net race winnings received or receivable. It is stated net of discounts and value added tax. |
Income from the sale of bloodstock at public auction sales is recognised on the fall of the hammer. Income from the sale of bloodstock through private transactions is recognised when the sale has been contractually agreed. |
Income from boarding horses is recognised for the dates the animal is stabled on site. |
Race winnings and breeders premiums are recognised in the period when the race is run. |
Stallion income shares are paid net of the expenses of the stud at which the stallion stands. The income share is recognised in the period when the terms of the nomination agreements have been fully satisfied such that the nomination fees become due. |
Property entitlements |
The company has purchased the right to receive any payments from the Rural Payments Agency under the Basic Payments Scheme relating to the land it occupies and trades from but does not own. The cost of this entitlement is written down on a straight line basis over the term of the lease of the land. |
Tangible fixed assets |
Improvements to property | - |
Plant and machinery | - |
Motor vehicles | - |
Office equipment | - |
The land on which the stud operates is owned by the holding company. In June 2018 a lease was signed for a term of 25 years for a peppercorn rent. |
HESMONDS STUD LIMITED (REGISTERED NUMBER: 07362725) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stock comprises biological assets and land held for resale in the ordinary course of business. Biological assets comprise thoroughbred bloodstock at stud and horses in training which are held for sale. The animals are valued individually at the lower of cost and market value. |
The book value of each animal is considered on an annual basis and impairment adjustments are made where necessary. No systematic depreciation charges are made. The cost of homebred foals is determined as the nomination fee paid plus the cost of keeping the mare during the gestation period. The cost of homebred foals and yearlings is increased by the cost of their keep from the date of weaning, which is assumed to be 1st October, until they are sold or transferred to training. |
Land held for resale is included at the lower of cost, which includes professional fees, and net realisable value. |
Financial instruments |
Sections 11, 'Basic Financial Instruments' and 12 'Other Financial Instruments Issues' of FRS 102 are applied in full. |
Forward foreign currency exchange contracts are accounted for at fair value. These comprise a financial asset and a financial liability which are netted off. Fair value is the profit to be earned at the maturity date discounted back to the balance sheet date. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
HESMONDS STUD LIMITED (REGISTERED NUMBER: 07362725) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
4. | INTANGIBLE FIXED ASSETS |
Patents |
and |
licences |
£ |
COST |
At 1st October 2022 |
and 30th September 2023 |
AMORTISATION |
At 1st October 2022 |
Amortisation for year |
At 30th September 2023 |
NET BOOK VALUE |
At 30th September 2023 |
At 30th September 2022 |
5. | TANGIBLE FIXED ASSETS |
Improvements | Fixtures |
to | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1st October 2022 |
Disposals |
At 30th September 2023 |
DEPRECIATION |
At 1st October 2022 |
Charge for year |
Eliminated on disposal |
At 30th September 2023 |
NET BOOK VALUE |
At 30th September 2023 |
At 30th September 2022 |
HESMONDS STUD LIMITED (REGISTERED NUMBER: 07362725) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
5. | TANGIBLE FIXED ASSETS - continued |
Motor | Office |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1st October 2022 |
Disposals | ( |
) | ( |
) |
At 30th September 2023 |
DEPRECIATION |
At 1st October 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 30th September 2023 |
NET BOOK VALUE |
At 30th September 2023 |
At 30th September 2022 |
6. | STOCKS |
2023 | 2022 |
£ | £ |
Yearlings | 1,453,911 | - |
Stallion shares | 360,000 | 470,000 |
Horses in training |
Cattle | 45,655 | 44,041 |
3,855,476 | 1,047,540 |
Land | 1,982,764 | - |
The bloodstock valuation, which is compared to cost, is provided by the directors. |
7. | DEBTORS |
2023 | 2022 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Accrued income | 22,473 | 35,333 |
Related company loan | 5,796 | - |
Related party loan | 624,186 | - |
Director's deferred benefit | 11,748 | 12,168 |
Directors' loan accounts | 564 | 8,959 |
VAT |
Prepayments |
HESMONDS STUD LIMITED (REGISTERED NUMBER: 07362725) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
7. | DEBTORS - continued |
2023 | 2022 |
£ | £ |
Amounts falling due after more than one year: |
Director's deferred benefit | 118,002 | 129,751 |
Related company loan | 578,267 | - |
Directors' loan accounts | 102,820 | 94,799 |
Aggregate amounts |
In June and July 2023 the company made 3 loans to a French company, Sumbe SAS, of €100,000, £66,000 and €500,000, repayable over ten years with interest charged at 1%. This company and Sumbe SAS are under common control. In accordance with FRS 102 these loans are shown at the net present value of the loan discounted over the term at the market rate of interest. The interest receivable on the carrying amounts of the loans of €61,391, £40,518 and €306,957 respectively is shown at market rate in the profit and loss account. The differences between the carrying amounts of the loans and the monies lent are also shown as related company loans. |
8. | CURRENT ASSET INVESTMENTS |
2023 | 2022 |
£ | £ |
Foreign exchange forward swaps | 5,130 | - |
9. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts |
Trade creditors |
Amounts owed to group undertakings |
Taxation and social security |
Other creditors |
10. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Bank overdrafts |
The bank loans and overdrafts are secured by a right of lien on all current and future assets and rights of the company and by the personal guarantee of the controlling party, N Bizakov. |
HESMONDS STUD LIMITED (REGISTERED NUMBER: 07362725) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
11. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was unqualified. |
for and on behalf of |
12. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 30th September 2023 and 30th September 2022: |
2023 | 2022 |
£ | £ |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Interest is charged on the loan made to the director, T Fry, but this is below market rate. In accordance with FRS 102 the loan is shown at the net present value of the loan discounted over the term at the market rate of interest. The interest receivable is shown at market rate in the profit and loss account with the difference shown as part of the director's remuneration each year. The loan is repayable by 2039 and is shown, with the associated deferred benefit balance in debtors due in more than one year and debtors due in less than one year as appropriate. |
13. | RELATED PARTY DISCLOSURES |
The holding company is Swansea Enterprises Corporation which is incorporated in the British Virgin Islands and holds all the issued share capital. Its address is Road Town, Tortola, BVI and, so far as the directors are aware, does not prepare consolidated accounts. |
Swansea Enterprises Corporation own the land on which the company operates and has granted the company a lease for a peppercorn rent. This company has also been given an interest free loan by Swansea Enterprises Corporation which is repayable on demand. The balance is shown in the note supporting the figure of creditors due in less than one year. |
14. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is Mr N Bizakov. He has given a personal pledge to secure the company bank borrowing. |
He also controls a French company, Sumbe SAS. At the year end Sumbe owed this company £644,452 of which £584,062 is included as a related company loan. The remaining balances are shown in trade debtors and creditors as appropriate (2022 £1,061,454 in trade debtors). |