Company registration number 02313742 (England and Wales)
HYDRA PARK PROPERTIES LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
HYDRA PARK PROPERTIES LTD
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 10
HYDRA PARK PROPERTIES LTD
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
11,122,483
1,531,671
Investment property
5
6,133,500
6,133,500
17,255,983
7,665,171
Current assets
Stocks
1,081,189
1,023,443
Debtors
6
412,059
125,907
Cash at bank and in hand
94,390
1,725
1,587,638
1,151,075
Creditors: amounts falling due within one year
7
(5,223,531)
(2,749,050)
Net current liabilities
(3,635,893)
(1,597,975)
Total assets less current liabilities
13,620,090
6,067,196
Creditors: amounts falling due after more than one year
9
(6,994,356)
(1,273,133)
Provisions for liabilities
(1,211,100)
(816,800)
Net assets
5,414,634
3,977,263
Capital and reserves
Called up share capital
100
100
Revaluation reserve
1,222,664
-
0
Profit and loss reserves
4,191,870
3,977,163
Total equity
5,414,634
3,977,263

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

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 19 June 2024 and are signed on its behalf by:
D J Simpson
Director
Company registration number 02313742 (England and Wales)
HYDRA PARK PROPERTIES LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
100
-
0
2,016,073
2,016,173
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
1,986,090
1,986,090
Dividends
-
-
(25,000)
(25,000)
Balance at 31 December 2022
100
-
0
3,977,163
3,977,263
Year ended 31 December 2023:
Profit
-
-
214,707
214,707
Other comprehensive income:
Revaluation of tangible fixed assets
-
1,630,164
-
1,630,164
Tax relating to other comprehensive income
-
(407,500)
-
0
(407,500)
Total comprehensive income
-
1,222,664
214,707
1,437,371
Balance at 31 December 2023
100
1,222,664
4,191,870
5,414,634
HYDRA PARK PROPERTIES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
1
Accounting policies
Company information

Hydra Park Properties Ltd is a private company, limited by shares and incorporated in England and Wales. The registered office is BHI House, Bessemer Way, Rotherham, S60 1FB.

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 investment properties. The principal accounting policies adopted are set out below.

1.2
Turnover

Turnover represents amounts receivable for rent and leases, along with the sale of residential properties net of VAT.

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:

Land and buildings - Golf Club
2% straight line
Land and buildings - Bessemer Way
2% straight line
Plant and machinery
1 - 10 years straight line
Fixtures, fittings & equipment
1 - 5 years straight line
Motor vehicles
2 - 10 years straight line

Freehold land is not depreciated.

 

The golf club's residual value is expected to be greater than cost, therefore no depreciation has been charged in the current year.

 

Bessemer Way has been revalued in the year and therefore no depreciation has been charged in the current year.

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.

1.4
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

HYDRA PARK PROPERTIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Stocks

Work in progress is stated at cost price. Work in progress comprises of direct materials and direct labour relating to the development.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of work in progress over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash at bank and in hand

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

HYDRA PARK PROPERTIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

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.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

HYDRA PARK PROPERTIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -
1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Investment property valuation

The valuation of investment properties is a significant estimate and the valuation has been obtained from independent experts using information on the tenancy agreements in place and assuming that there is a reasonable marketing period of twelve months.

3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Total
2
2
HYDRA PARK PROPERTIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
4
Tangible fixed assets
Land and buildings - Golf Club
Land and buildings - Bessemer Way
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
1,272,611
-
0
76,627
40,399
329,901
1,719,538
Additions
412,505
7,485,587
12,307
77,564
116,092
8,104,055
Disposals
-
0
-
0
-
0
-
0
(98,866)
(98,866)
Revaluation
-
0
1,630,164
-
0
-
0
-
0
1,630,164
At 31 December 2023
1,685,116
9,115,751
88,934
117,963
347,127
11,354,891
Depreciation and impairment
At 1 January 2023
-
0
-
0
61,595
34,214
92,058
187,867
Depreciation charged in the year
-
0
-
0
15,007
10,918
20,616
46,541
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(2,000)
(2,000)
At 31 December 2023
-
0
-
0
76,602
45,132
110,674
232,408
Carrying amount
At 31 December 2023
1,685,116
9,115,751
12,332
72,831
236,453
11,122,483
At 31 December 2022
1,272,611
-
0
15,032
6,185
237,843
1,531,671
5
Investment property
2023
£
Fair value
At 1 January 2023 and 31 December 2023
6,133,500

The valuations of investment properties were made as at 11 April 2023 by Eddisons, on an open market basis. No depreciation is provided in respect of these properties.

 

On an historical cost basis these would have been included at an original cost of £2,531,329 (2022 - £2,531,329).

6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
70,527
79,318
Other debtors
200,000
-
0
Prepayments and accrued income
141,532
46,589
412,059
125,907
HYDRA PARK PROPERTIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
7
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
8
531,195
106,048
Obligations under finance leases
25,273
74,693
Trade creditors
150,511
70,072
Amounts owed to group undertakings
4,279,581
2,381,012
Corporation tax
45,867
-
0
Other taxation and social security
32,431
23,349
Other creditors
42,637
50,909
Accruals and deferred income
116,036
42,967
5,223,531
2,749,050

The bank loan outstanding of £531,195 (2022: £106,048) is secured against the Hydra Business Park and Bessemer Way.

 

Obligations under finance lease are secured against the assets to which they belong.

8
Loans and overdrafts
2023
2022
£
£
Bank loans
7,445,284
1,322,092
Payable within one year
531,195
106,048
Payable after one year
6,914,089
1,216,044

 

 

9
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
8
6,914,089
1,216,044
Obligations under finance leases
80,267
57,089
6,994,356
1,273,133

The bank loan outstanding of £6,914,089 (2022: £1,216,044) is secured against the Hydra Business Park and Bessemer Way.

 

Obligations under finance lease are secured against the assets to which they belong.

HYDRA PARK PROPERTIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Creditors: amounts falling due after more than one year
(Continued)
- 9 -
Amounts included above which fall due after five years are as follows:
Payable by instalments
706,805
774,110
10
Non-distributable profits reserve
2023
2022
£
£
At the beginning of the year
3,003,171
1,248,035
Non distributable profits in the year
-
1,755,136
At the end of the year
3,003,171
3,003,171

The non distributable reserves relates to revaluation of investment properties of £3,602,171 (2022: £3,602,171) with deferred tax provided of £599,000 (2022: £599,000).

11
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was qualified and the auditor reported as follows:

HYDRA PARK PROPERTIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Audit report information
(Continued)
- 10 -

Qualified opinion

We have audited the financial statements of Hydra Park Properties Ltd (the 'company') for the year ended 31 December 2023 which comprise , the balance sheet, the statement of changes in equity and notes to the financial statements, including 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, except for the effects of the matter described in the basis of qualified opinion of the financial statements:

 

Basis for qualified opinion

Although Hart Shaw LLP have produced the financial statements for a number of years Hydra Park Properties Limited only required a statutory audit for the first time for the year ended 31 December 2022. The balance sheet as at 31 December 2021 was not audited and we were unable to carry out procedures to audit this balance sheet. Consequently we were unable to determine whether there were any matters which would impact the profit and loss account for the year ended 31 December 2022. Our audit opinion on the financial statements for the year ended 31 December 2022 was modified accordingly. Our opinion on the current year's financial statements is also modified because of the possible effect of this matter on the comparability of the current year's figures and the corresponding figures.

 

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company 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 qualified opinion.

Senior Statutory Auditor:
Martin McDonagh
Statutory Auditor:
Hart Shaw LLP
Date of audit report:
11 September 2024
12
Financial commitments, guarantees and contingent liabilities

The company has given an unlimited cross guarantee in favour of Lloyds Bank in respect of bank borrowings of fellow group undertakings. The outstanding borrowings of these companies at 31 December 2023 were £7,469,446.

13
Parent company

The parent company of Hydra Park Properties Ltd is BHI Group Limited and its registered office is BHI House, Bessemer Way, Rotherham, S60 1FB.

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