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REGISTERED NUMBER: 07362725 (England and Wales)















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: Mrs A C Edwards
Miss G Bizakov
A C Fry





REGISTERED OFFICE: East Hoathly
Lewes
East Sussex
BN8 6EL





REGISTERED NUMBER: 07362725 (England and Wales)





AUDITORS: Currie Accountancy Limited
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 1,897 2,778
Tangible assets 5 3,893,052 4,061,835
3,894,949 4,064,613

CURRENT ASSETS
Stocks 6 5,838,240 1,047,540
Debtors: amounts falling due within one year 7 863,434 1,255,668
Debtors: amounts falling due after more than
one year

7

799,089

224,550
Investments 8 5,130 -
Cash at bank and in hand 23,907 15,656
7,529,800 2,543,414
CREDITORS
Amounts falling due within one year 9 40,194,890 34,352,395
NET CURRENT LIABILITIES (32,665,090 ) (31,808,981 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

(28,770,141

)

(27,744,368

)

CAPITAL AND RESERVES
Called up share capital 100 100
Retained earnings (28,770,241 ) (27,744,468 )
SHAREHOLDERS' FUNDS (28,770,141 ) (27,744,368 )

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

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 24th July 2024 and were signed on its behalf by:





Mrs A C Edwards - Director


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 private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.
Improvements to property - over the term of the lease
Plant and machinery - 10% on reducing balance
Motor vehicles - 25% on reducing balance
Office equipment - 10% on reducing balance

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 6 (2022 - 6 ) .

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 22,679
AMORTISATION
At 1st October 2022 19,901
Amortisation for year 881
At 30th September 2023 20,782
NET BOOK VALUE
At 30th September 2023 1,897
At 30th September 2022 2,778

5. TANGIBLE FIXED ASSETS
Improvements Fixtures
to Plant and and
property machinery fittings
£    £    £   
COST
At 1st October 2022 5,072,516 278,470 42,261
Disposals - - -
At 30th September 2023 5,072,516 278,470 42,261
DEPRECIATION
At 1st October 2022 1,135,478 177,350 26,639
Charge for year 152,895 10,129 1,562
Eliminated on disposal - - -
At 30th September 2023 1,288,373 187,479 28,201
NET BOOK VALUE
At 30th September 2023 3,784,143 90,991 14,060
At 30th September 2022 3,937,038 101,120 15,622

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 107,582 8,341 5,509,170
Disposals (50,887 ) - (50,887 )
At 30th September 2023 56,695 8,341 5,458,283
DEPRECIATION
At 1st October 2022 102,235 5,633 1,447,335
Charge for year 473 271 165,330
Eliminated on disposal (47,434 ) - (47,434 )
At 30th September 2023 55,274 5,904 1,565,231
NET BOOK VALUE
At 30th September 2023 1,421 2,437 3,893,052
At 30th September 2022 5,347 2,708 4,061,835

6. STOCKS
2023 2022
£    £   
Yearlings 1,453,911 -
Stallion shares 360,000 470,000
Horses in training 1,995,910 533,499
Cattle 45,655 44,041
3,855,476 1,047,540
Land 1,982,764 -
5,838,240 1,047,540

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 102,451 1,147,539
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 52,128 7,320
Prepayments 44,088 44,349
863,434 1,255,668

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
799,089 224,550

Aggregate amounts 1,662,523 1,480,218

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 818,015 1,864,974
Trade creditors 160,746 128,025
Amounts owed to group undertakings 39,188,301 32,347,085
Taxation and social security 1,009 1,216
Other creditors 26,819 11,095
40,194,890 34,352,395

10. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank overdrafts 818,015 1,864,974

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.

Isobel Currie (Senior Statutory Auditor)
for and on behalf of Currie Accountancy Limited

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
£    £   
A C Fry
Balance outstanding at start of year 245,677 25,000
Amounts advanced - 248,000
Amounts repaid (12,543 ) (27,323 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 233,134 245,677

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).