1 January 2023 v2024.42.1 limited_company_frs_102_section_1a_v1_1_1 companies_houseSoftwarefalsetruetruetrueNo description of principal activityfalsetruexbrli:purexbrli:sharesiso4217:GBP020180812023-01-012023-12-31020180812023-12-31020180812022-12-3102018081core:WithinOneYear2023-12-3102018081core:WithinOneYear2022-12-3102018081core:ShareCapital2023-12-3102018081core:ShareCapital2022-12-3102018081core:RetainedEarningsAccumulatedLosses2023-12-3102018081core:RetainedEarningsAccumulatedLosses2022-12-3102018081bus:Director12023-01-012023-12-3102018081bus:RegisteredOffice2023-01-012023-12-3102018081core:PlantMachinery2023-01-012023-12-3102018081core:FurnitureFittings2023-01-012023-12-3102018081core:OfficeEquipment2023-01-012023-12-31020180812022-01-012022-12-3102018081core:PlantMachinery2023-12-3102018081core:PlantMachinery2023-01-0102018081core:PlantMachinery2022-12-310201808112023-01-012023-12-3102018081countries:EnglandWales2023-01-012023-12-3102018081bus:AuditExemptWithAccountantsReport2023-01-012023-12-3102018081bus:PrivateLimitedCompanyLtd2023-01-012023-12-3102018081bus:SmallEntities2023-01-012023-12-3102018081bus:FullAccounts2023-01-012023-12-31
Company registration number:
02018081
H. K. Founders Limited
Unaudited Filleted Financial Statements for the year ended
31 December 2023
H. K. Founders Limited
Report to the board of directors on the preparation of the unaudited statutory financial statements of H. K. Founders Limited
Year ended
31 December 2023
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the
financial statements
of
H. K. Founders Limited
for the year ended
31 December 2023
which comprise the income statement, statement of income and retained earnings, statement of financial position and related notes from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the Association of Chartered Certified Accountants, we are subject to its ethical and other professional requirements which are detailed at https://www.accaglobal.com/​content/​dam/​ACCA_Global/​Members/​Doc/​rule/​2018-rulebook.pdf.
This report is made solely to the Board of Directors of
H. K. Founders Limited
, as a body, in accordance with the terms of our engagement letter dated 1 February 2024. Our work has been undertaken solely to prepare for your approval the
financial statements
of
H. K. Founders Limited
and state those matters that we have agreed to state to the Board of Directors of
H. K. Founders Limited
, as a body, in this report in accordance with the requirements of the Association of Chartered Certified Accountants as detailed at https://www.accaglobal.com/​content/​dam/​ACCA_Global/​Technical/​fact/​technical-factsheet-163.pdf. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than
H. K. Founders Limited
and its Board of Directors, as a body, for our work or for this report.
It is your duty to ensure that
H. K. Founders Limited
has kept adequate accounting records and to prepare statutory
financial statements
that give a true and fair view of the assets, liabilities, financial position and loss of
H. K. Founders Limited
. You consider that
H. K. Founders Limited
is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of H. K. Founders Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Emery & Co Accountants Limited
Suite 10 The Old Cottage Hospital
Leicester Road
Ashby-De-La-Zouch
Leicestershire
LE65 1DB
United Kingdom
Date:
2 May 2024
H. K. Founders Limited
Statement of Financial Position
31 December 2023
20232022
Note££
Fixed assets    
Tangible assets 5 -  
999
 
Current assets    
Stocks
203,825
 
250,868
 
Debtors 6
201,168
 
423,385
 
Cash at bank and in hand
80,892
 
37,738
 
485,885
 
711,991
 
Creditors: amounts falling due within one year 7
(115,971
)
(161,177
)
Net current assets
369,914
 
550,814
 
Total assets less current liabilities 369,914   551,813  
Provisions for liabilities -  
(191
)
Net assets
369,914
 
551,622
 
Capital and reserves    
Called up share capital
2
 
2
 
Profit and loss account
369,912
 
551,620
 
Shareholders funds
369,914
 
551,622
 
For the year ending
31 December 2023
, the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
  • 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;
  • The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
These
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.
These
financial statements
were approved by the board of directors and authorised for issue on
2 May 2024
, and are signed on behalf of the board by:
S Middleton
Director
Company registration number:
02018081
H. K. Founders Limited
Notes to the Financial Statements
Year ended
31 December 2023

1 General information

The company is a private company limited by shares and is registered in England and Wales. The address of the registered office is
Unit K Cossall Industrial Estate
,
Soloman Road
,
Ilkeston
,
DE7 5UA
, England.

2 Statement of compliance

These
financial statements
have been prepared in compliance with FRS 102 Section 1A, 'The Financial Reporting Standard applicable to the UK and Republic of Ireland'.

3 Accounting policies

Basis of preparation

The
financial statements
have been prepared on the historical cost basis, as modified by the revaluation of certain assets.
The
financial statements
are prepared in sterling, which is the functional currency of the company.

Going concern

These financial statements are prepared on a going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future.
The directors have considered available cash resources over the next 12 months, and they feel that the company is in a position to meet its liabilities as and when they fall due for a period of at least 12 months from the signing of these accounts.

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.

Foreign exchange

Foreign currency transactions are translated into sterling using a standard rate adjusted monthly. Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Exchange gains and losses are recognised in the profit and loss account as incurred.

Research and devlopment

The cost of patterns is written off to the profit and loss account in the year in which the expenditure is incurred.

Government grants

Government grants that becomes receivable as compensation for expenses or losses already incurred, or for the purpose of giving immediate financial support to the entity with no future related costs, are recognised as income in the period in which it becomes receivable.

Turnover

Turnover is measured at the fair value of the consideration received or receivable for goods supplied, net of discounts and Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer, usually on despatch of the goods; the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Current tax

Current tax is recognised on taxable profit for the current and 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.

Tangible assets

Tangible assets are initially measured at cost, and are subsequently measured at cost less any accumulated depreciation and accumulated impairment losses or at a revalued amount.
Any tangible assets carried at a revalued amount are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
An increase in the carrying amount of an asset as a result of a revaluation is recognised in other comprehensive income and accumulated in capital and reserves. However, the increase is recognised in profit or loss to the extent that it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves. If a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess is recognised in profit or loss.
Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:
Plant and machinery
15% straight line
Fixtures and fittings
10% straight line
Office equipment
33% straight line

Impairment

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.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the transaction price and are subsequently measured as follows: Debt instruments are subsequently measured at amortised cost and commitments to receive a loan and to make a loan to another entity are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment.
All other financial instruments, including derivatives, are initially recognised at fair value, which is normally the transaction price and are subsequently measured at fair value, with any changes recognised in profit or loss.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.
All equity instruments regardless of significance, and other financial assets that are individually significant, are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics.
Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is more likely than not that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured on an undiscounted basis at the tax rates that would apply in the periods in which timing differences are expected to reverse, based on tax rates and laws enacted at the statement of financial position date.

Provisions for liabilities

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.
Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.

Defined contribution pension plan

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

Operating leases

A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership. Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

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. 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.

4 Average number of employees

The average number of persons employed by the company during the year was
2
(2022:
4.00
).

5 Tangible assets

Plant and machinery etc.
£
Cost  
At
1 January 2023
and
31 December 2023
150,144
 
Depreciation  
At
1 January 2023
149,145
 
Charge
999
 
At
31 December 2023
150,144
 
Carrying amount  
At
31 December 2023
-  
At 31 December 2022
999
 

6 Debtors

20232022
££
Trade debtors
158,917
 
388,537
 
Other debtors
42,251
 
34,848
 
201,168
 
423,385
 

7 Creditors: amounts falling due within one year

20232022
££
Trade creditors
70,933
 
103,865
 
Taxation and social security
1,262
 
11,850
 
Other creditors
43,776
 
45,462
 
115,971
 
161,177
 

8 Controlling party

The ultimate parent company was Chessco Industries, Inc. until 21 December 2023. The company has since become a subsidiary of H.K. Founders Holdings Limited, a company incorporated in England and Wales. H.K. Founders Holdings Limited is controlled by S Middleton by virtue of his majority shareholding.