Registered number: 00819349
HEXAGON OF HIGHGATE LIMITED
UNAUDITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 31 DECEMBER 2023
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HEXAGON OF HIGHGATE LIMITED
REGISTERED NUMBER: 00819349
BALANCE SHEET
AS AT 31 DECEMBER 2023
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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HEXAGON OF HIGHGATE LIMITED
REGISTERED NUMBER: 00819349
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023
The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
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 financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
................................................
P N Michaels
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The notes on pages 3 to 15 form part of these financial statements.
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HEXAGON OF HIGHGATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Hexagon of Highgate Limited is a private company limited by shares and incorporated in England and Wales. The address of the registered office and the principal place of business is 82-92 Great North Road, London, England, N2 0NL.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. 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 following principal accounting policies have been applied:
In assessing the ability of the company to operate as a going concern, management have evaluated current and forecasted operational results, and the solvency of the company. As a result, the directors consider it appropriate to prepare the financial statements on a going concern basis.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
∙the Company has transferred the significant risks and rewards of ownership to the buyer;
∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the transaction; and
∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
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HEXAGON OF HIGHGATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.
Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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Short-term leasehold property
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over the unexpired term of the lease
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10 - 33% straight line basis
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5 - 33% straight line basis
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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HEXAGON OF HIGHGATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
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Revaluation of tangible fixed assets
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As permitted by the transitional provisions of FRS 102, the Company has elected not to adopt a policy of revaluation of tangible fixed assets. The Company will retain the book value of land and buildings, previously revalued at the transition date of 1 January 2014 and will not update that valuation.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
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HEXAGON OF HIGHGATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
Defined benefit pension plan
The Company operates a defined benefit plan for certain employees. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including but not limited to age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan.
The liability recognised in the Balance Sheet in respect of the defined benefit plan is the present value of the defined benefit obligation at the end of the balance sheet date less the fair value of plan assets at the balance sheet date (if any) out of which the obligations are to be settled.
The defined benefit obligation is calculated using the projected unit credit method. Annually the company engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating to the estimated period of the future payments ('discount rate').
The fair value of plan assets is measured in accordance with the FRS102 fair value hierarchy and in accordance with the Company's policy for similarly held assets. This includes the use of appropriate valuation techniques.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. These amounts together with the return on plan assets, less amounts included in net interest, are disclosed as 'Remeasurement of net defined benefit liability'.
The cost of the defined benefit plan, recognised in profit or loss as employee costs, except where included in the cost of an asset, comprises:
a) the increase in net pension benefit liability arising from employee service during the period; and
b) the cost of plan introductions, benefit changes, curtailments and settlements.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is recognised in profit or loss as a 'finance expense'.
Interest income is recognised in profit or loss using the effective interest method.
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HEXAGON OF HIGHGATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
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Provisions for liabilities
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Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Increases in provisions are generally charged as an expense to profit or loss.
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
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The average monthly number of employees, including directors, during the year was 31 (2022 - 44).
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HEXAGON OF HIGHGATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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Charge for the year on owned assets
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Included within land and buildings is land of £8.4m (2021: £8.4m) which is not depreciated.
The land and buildings were revalued on 2 May 2013 by Goodman Mann Broomhall, Chartered Surveyors, in accordance with the Appraisal and Valuation Manual of The Royal Institution of Chartered Surveyors on an open market existing use basis. The directors are of the opinion that the value of the land and buildings will not be materially different as at 31 December 2023.
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The net book value of land and buildings may be further analysed as follows:
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HEXAGON OF HIGHGATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Cost or valuation at 31 December 2023 is as follows:
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The land and buildings were revalued on 2 May 2013 by professional valuer on an open market existing use basis
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If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:
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Raw materials and consumables
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Finished goods and goods for resale
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Prepayments and accrued income
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HEXAGON OF HIGHGATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Creditors: Amounts falling due after more than one year
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The loan was due for repayment on or before 15 December 2018. However it was agreed in 2017 to extend the loan by a further 5 years to 15 December 2023. It was then agreed to extend the loan by a furhter 5 years to 15 December 2028.
As a result the outstanding loan amounting to £4,918,606 as 15 December 2023 has been discounted to its present value of £4,242,833 by applying a market rate of interest of 3%. The directors feel that this is the cost of borrowing that would apply to a similar debt instrument under the same criteria. At the balance sheet date, the difference between the original value and present value of the loan is £675,823 (2022: £201,592) which is included within Other Reserves.
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Charged to profit or loss
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HEXAGON OF HIGHGATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
9.Deferred taxation (continued)
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The provision for deferred taxation is made up as follows:
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Accelerated capital allowances
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Gain on revalued properties
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Ultimate parent undertaking and controlling party
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The ultimate and immediate parent company is Hexagon of Highgate Holdings Limited, a Company registered in England and Wales.
The ultimate controlling party is Mr P N Michaels.
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HEXAGON OF HIGHGATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £77,226 (2022: £86,520). Contributions totalling £7,807 (2022: £8,969) were payable to the fund at the balance sheet date.
The Company operates a Defined Benefit Pension Scheme.
The Company sponsors a funded defined benefit pension plan, the Hexagon of Highgate Limited section of the Motor Industry Pension Plan ("the section").
The level of benefits provided by the section depends on a member's length of service and their salary at their date of leaving the section. The section is closed to future accrual.
The results of the latest funding valuation at 5 April 2022 have been adjusted to the balance sheet date taking account of experience over the period since 5 April 2019, changes in market conditions and differences in the financial and demographic assumptions. The present value of the defined benefit obligation was measured using the projected unit credit method.
This scheme was closed to future accrual of benefits with effect from 1 March 2012. The scheme is in a net asset position. That asset is not recognised in these accounts in accordance with the accounting policies of the Company.
The Company has fully adopted FRS 102 Retirement Benefits, such that the Company does not recognise the assets in the balance sheet to the extent that it is able to recover a surplus either through reduced contributions in the future or through refunds from the scheme.
The Company's total pension cost included within operating profit was £77,226 (2022: £86,520) being £26,249 (2022: £29,657) in respect of its defined benefit pension arrangements and £50,977 (2022: £56,863) in respect of its defined contribution pension arrangements.
The amounts in the financial statements for the year ended 31 December 2023, relating to pensions, are based on an FRS 102 report carried out by Aon Hewitt Limited, dated 26 March 2024.
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Composition of plan liabilities:
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Fair value of section assets
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Present value of funded defined benefit obligations
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HEXAGON OF HIGHGATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
11.Pension commitments (continued)
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Composition of plan assets:
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None of the section assets are invested in the Company's financial instruments or in property occupied by, or other assets used by, the Company.
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Net pension scheme liability
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The amounts recognised in profit or loss are as follows:
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Reconciliation of fair value of plan liabilities were as follows:
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Opening defined benefit obligation
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Actuarial gains and (losses)
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Closing defined benefit obligation
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HEXAGON OF HIGHGATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
11.Pension commitments (continued)
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Reconciliation of fair value of plan assets were as follows:
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Opening fair value of scheme assets
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Contributions by employer
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Interest income on scheme assets
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The cumulative amount of actuarial gains and losses recognised in the Statement of Comprehensive Income was £NIL (2022 - £NIL).
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The Company expects to contribute £NIL to its Defined Benefit Pension Scheme in 2024.
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Analysis of actuarial loss recognised in Other Comprehensive Income
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Interest income on scheme assets
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Gain/(loss) on scheme assets
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Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):
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Discount rate for scheme liabilities
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Revaluations in deferment
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- at 65 for a male aged 45 now
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- for a female aged 65 now
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- at 65 for a female member aged 45 now
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HEXAGON OF HIGHGATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
11.Pension commitments (continued)
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100% of S3PXA tables, improvement in line with the CMI 2021 Projections and a long-term rate of improvement of 1.5% p.a (2022: 1.5%).
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