Company registration number 02873882 (England and Wales)
HIPFAN LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2023
4 Brackley Close
Bournemouth International Airport
Christchurch
Dorset
BH23 6SE
HIPFAN LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
HIPFAN LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
5
610,000
Current assets
Debtors falling due after more than one year
6
540,376
Debtors falling due within one year
6
39,743
21,055
Cash at bank and in hand
4,986
6,748
585,105
27,803
Creditors: amounts falling due within one year
7
(57,359)
(12,523)
Net current assets
527,746
15,280
Net assets
527,746
625,280
Capital and reserves
Called up share capital
8
100
100,000
Revaluation reserve
290,836
Profit and loss reserves
527,646
234,444
Total equity
527,746
625,280
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The member has 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 16 August 2024 and are signed on its behalf by:
N Fanelli
Director
Company registration number 02873882 (England and Wales)
HIPFAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
Hipfan Limited is a private company limited by shares incorporated in England and Wales. The registered office is 40 Chilfrome Close, Poole, Dorset, BH17 9WE.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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 £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold property and to include investment property at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover represents gross rents receivable from tenants of the company's freehold investment property, excluding Value Added Tax. Rental income is recognised in the financial statements in the periods to which the rental income actually relates.
1.3
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
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:
Investment property
None
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
It was the company's policy to maintain the property so that the estimated residual value would not be impaired over time. The costs of this maintenance were charged to the profit and loss account as incurred. The directors were of the opinion that any depreciation in respect of the company's freehold properties would be immaterial and consequently no provision is made in the accounts for such depreciation.
1.4
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
1.5
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
Current tax is recognised on taxable profit for the current and, where not previously recognised, past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
HIPFAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
Deferred tax
Deferred tax is recognised in respect of all timing differences at the reporting date to the extent that the directors consider it to be material. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
2
Judgements and key sources of estimation uncertainty
Critical judgements
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Investment property
The judgement that management had made in the process of applying the entity's accounting policies and that had the most significant effect on the amounts recognised in the financial statements was the fair value estimate by the directors of the investment property as at 31 December 2022. However, the property was sold during the year ended 31 December 2023 and the directors do not consider there to be any further judgements made which could have a material impact upon the financial statements.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
2
3
4
Amounts written off investments
2023
2022
£
£
Fair value gains/(losses)
Changes in the fair value of investment property
10,000
Realised loss on sale of investment property
(7,094)
HIPFAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
5
Tangible fixed assets
Investment property
£
Cost or valuation
At 1 January 2023
610,000
Disposals
(610,000)
At 31 December 2023
Depreciation and impairment
At 1 January 2023 and 31 December 2023
Carrying amount
At 31 December 2023
At 31 December 2022
610,000
HIPFAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Tangible fixed assets
(Continued)
- 5 -
In respect of tangible assets held at valuation, the aggregate cost, depreciation and comparable carrying amount that would have been recognised if the assets had been carried under the historical cost model are as follows:
Investment
property
£
At 31 December 2023
Aggregate cost
-
Aggregate depreciation
-
Carrying value
-
At 31 December 2022
Aggregate cost
435,113
Aggregate depreciation
-
Carrying value
435,113
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
21,082
12,314
Long term loan receivable
11,517
Prepayments and accrued income
4,091
489
36,690
12,803
Deferred tax asset
3,053
8,252
39,743
21,055
2023
2022
Amounts falling due after more than one year:
£
£
Long term loan receivable
540,376
Total debtors
580,119
21,055
HIPFAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Debtors
(Continued)
- 6 -
The long-term loan receivable relates to the balance of the monies due in respect of the sale of the company’s freehold investment property. The loan is secured by a fixed charge over that property and includes a negative pledge. The repayments are based on equal monthly instalments inclusive of interest so as to amortise the capital sum borrowed over a period of 30 years. The borrower has the option at the end of the five years to repay the balance in full or to extend for a further period of five years. The loan together with all accrued interest thereon becomes repayable immediately upon the completion of a sale of the property upon which it is secured.
Interest is payable at the rate of 3% per annum on the amount outstanding from time to time for the first five years of the loan and thereafter at 1% per annum above the Bank of England base rate calculated for the immediately following year on the relevant anniversary date, but subject to a restriction that any increase in the rate of interest for each successive year shall not exceed 1% but subject at all times to a floor of 3% per annum.
7
Creditors: amounts falling due within one year
2023
2022
£
£
Taxation and social security
154
227
Other creditors
55,348
3,343
Accruals and deferred income
1,857
8,953
57,359
12,523
8
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100,000
100
100,000
Reconciliation of movements during the year:
Ordinary
Number
At 1 January 2023
100,000
Shares cancelled
(99,900)
At 31 December 2023
100
On 20 November 2023 the company reduced its share capital under section 643 of the Companies Act 2006 following the passing of a special resolution by the member. The share capital so reduced comprised ordinary shares of £1 each which had an aggregate nominal value of £99,900.
9
Related party transactions
During the year the company entered into the following transactions with related parties:
HIPFAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Related party transactions
(Continued)
- 7 -
Entities over which the entity has control, joint control or significant influence
One of the entities collected rents on behalf of the company and also discharged certain costs from the amounts collected
2023
2022
£
£
Rents collected on behalf of the company during the year
-
46,976
Costs discharged on behalf of the company during the year
-
58,844
Amounts due to related parties
£
£
Key management personnel
55,348
2,087
10
Controlling Party
The controlling party throughout the year has been Nicola Fanelli who holds the entire issued share capital of the company.