Company registration number 13368913 (England and Wales)
HITECH CONSTRUCTION AFRICA LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
PAGES FOR FILING WITH REGISTRAR
HITECH CONSTRUCTION AFRICA LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 7
HITECH CONSTRUCTION AFRICA LIMITED
BALANCE SHEET
AS AT 30 APRIL 2023
30 April 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
3
13,100
13,100
Current assets
Debtors
5
15,855,561
100
Cash at bank and in hand
4,329,745
20,185,306
100
Creditors: amounts falling due within one year
6
(20,303,067)
(32,900)
Net current liabilities
(117,761)
(32,800)
Total assets less current liabilities
(104,661)
(19,700)
Creditors: amounts falling due after more than one year
7
(8,321)
Net liabilities
(112,982)
(19,700)
Capital and reserves
Called up share capital
9
100
100
Profit and loss reserves
(113,082)
(19,800)
Total equity
(112,982)
(19,700)
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 18 September 2024 and are signed on its behalf by:
Mr P Pouponnot
Director
Company registration number 13368913 (England and Wales)
HITECH CONSTRUCTION AFRICA LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2023
- 2 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 30 April 2021
-
Year ended 30 April 2022:
Loss and total comprehensive expense
-
(19,800)
(19,800)
Issue of share capital
9
100
-
100
Balance at 30 April 2022
100
(19,800)
(19,700)
Year ended 30 April 2023:
Loss and total comprehensive expense
-
(93,282)
(93,282)
Balance at 30 April 2023
100
(113,082)
(112,982)
HITECH CONSTRUCTION AFRICA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
- 3 -
1
Accounting policies
Company information
Hitech Construction Africa Limited is a private company limited by shares incorporated in England and Wales. The registered office is 2nd Floor, 201 Great Portland Street, Marylebone, London, W1W 5AB.
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. The principal accounting policies adopted are set out below.
The company and its subsidiary undertaking form a small group and therefore the company is exempt from preparing consolidated accounts under Section 399 of the Companies Act 2006. The financial statements present information about the company as an individual entity and not about its group.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
In drawing their conclusion on the appropriateness of the going concern assumption, the directors have been mindful of the company having net current liabilities of £117,761 (2022: £32,800). Within this, there is a loan payable to a related party of £4,762,034. The directors do not currently anticipate that the balance will be recalled within twelve months, as its repayment has been rearranged until the company has sufficient working capital to repay it in the future.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Where payments are received from customers in advance of services provided, the amounts are recorded as deferred income and included as part of creditors due within one year.
1.4
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.5
Cash and cash equivalents
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.
HITECH CONSTRUCTION AFRICA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 4 -
1.6
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.
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.
1.7
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.
1.8
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.
HITECH CONSTRUCTION AFRICA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 5 -
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.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.9
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Employees
The average monthly number of persons (excluding directors) employed by the company during the year was:
2023
2022
Number
Number
Total
3
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
13,100
13,100
4
Subsidiaries
Details of the company's subsidiaries at 30 April 2023 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Hitech Construction Africa SA-U
9 Boulevard Circulaire, 01BP.947, Lomé, Togo
Construction
Ordinary
100.00
HITECH CONSTRUCTION AFRICA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 6 -
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
8,858,035
Other debtors
100
100
Prepayments and accrued income
6,997,426
15,855,561
100
6
Creditors: amounts falling due within one year
2023
2022
£
£
Loans from group undertakings and related parties
8
4,762,034
Deferred income
15,495,433
Other creditors
13,100
13,100
Accruals
32,500
19,800
20,303,067
32,900
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Loans from group undertakings and related parties
8
8,321
8
Loans and overdrafts
2023
2022
£
£
Loans from group undertakings and related parties
4,770,355
Payable within one year
4,762,034
Payable after one year
8,321
Loans payable within one year relate to a loan payable to South Energyx Development F.Z.E. which is unsecured with a maturity date of 13 March 2024. The interest charged on the loan is 7% per annum. A further loan amount of £855,640 was advanced after the year end on the same terms. After the year end, the repayment terms were renegotiated so that the loan is repayable when the company generates sufficient funds to repay.
Loans payable after one year relate to a loan payable to Hitech Construction Company Limited which is unsecured with a maturity date of 30 September 2025. The interest charged on the loan is 8% per annum.
HITECH CONSTRUCTION AFRICA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 7 -
9
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100
100
100
100
10
Events after the reporting date
After the year end date, the company agreed to rent out plant and machinery to its wholly owned subsidiary for an initial period from October 2023 to May 2026 for £211,165 per month.
11
Related party transactions
The following amounts were outstanding at the reporting end date:
The company owed £4,762,034 (2022: £Nil) to South Energyx Development F.Z.E, a company with the same ultimate beneficial owners.
The company owed £8,321 (2022: Nil) to Hitech Construction Company Limited, a company with the same ultimate beneficial owners.
In accordance with Section 33.1A of FRS 102, related party transactions and outstanding balances between the company and its wholly owned subsidiary have not been disclosed.
12
Parent company and ultimate controlling party
The company is jointly controlled by Cresthill Holdings Inc, an entity incorporated in Canada and Caro Holding, an entity incorporated in Lebanon. Each entity owns 50% of the share capital.
The registered office of Cresthill Holdings Inc is Queen's Marque 600-1741 Lower Water Street, Halifax, Nova Scotia, B3J 0J2, Canada. The registered office of Caro Holding is Rue Badaro, Immeuble Khoury, Beyrouth, Lebanon.
The ultimate controlling party of Cresthill Holdings Inc is Rose Marie Chagoury and the ultimate controlling party of Caro Holding is Ronald Chagoury.
13
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 unqualified.
Senior Statutory Auditor:
Nikolaos Ioannidis
Statutory Auditor:
Shaw Gibbs (Audit) Limited
Date of audit report:
19 September 2024