IRIS Accounts Production v24.3.0.553 01778045 Board of Directors 1.1.23 31.12.23 31.12.23 The principal activity of the company is racehorse training and livestock dealing. true false true true false false true false Fair value model Ordinary 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh017780452022-12-31017780452023-12-31017780452023-01-012023-12-31017780452021-12-31017780452022-01-012022-12-31017780452022-12-3101778045ns15:EnglandWales2023-01-012023-12-3101778045ns14:PoundSterling2023-01-012023-12-3101778045ns10:Director12023-01-012023-12-3101778045ns10:PrivateLimitedCompanyLtd2023-01-012023-12-3101778045ns10:FRS1022023-01-012023-12-3101778045ns10:Audited2023-01-012023-12-3101778045ns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2023-01-012023-12-3101778045ns10:LargeMedium-sizedCompaniesRegimeForAccounts2023-01-012023-12-3101778045ns10:FullAccounts2023-01-012023-12-3101778045ns10:OrdinaryShareClass12023-01-012023-12-3101778045ns10:Director22023-01-012023-12-3101778045ns10:Director32023-01-012023-12-3101778045ns10:CompanySecretary12023-01-012023-12-3101778045ns10:RegisteredOffice2023-01-012023-12-3101778045ns5:CurrentFinancialInstruments2023-12-3101778045ns5:CurrentFinancialInstruments2022-12-3101778045ns5:ShareCapital2023-12-3101778045ns5:ShareCapital2022-12-3101778045ns5:FurtherSpecificReserve3ComponentTotalEquity2023-12-3101778045ns5:FurtherSpecificReserve3ComponentTotalEquity2022-12-3101778045ns5:RetainedEarningsAccumulatedLosses2023-12-3101778045ns5:RetainedEarningsAccumulatedLosses2022-12-3101778045ns5:ShareCapital2021-12-3101778045ns5:RetainedEarningsAccumulatedLosses2021-12-3101778045ns5:FurtherSpecificReserve3ComponentTotalEquity2021-12-3101778045ns5:RetainedEarningsAccumulatedLosses2022-01-012022-12-3101778045ns5:FurtherSpecificReserve3ComponentTotalEquity2022-01-012022-12-3101778045ns5:RetainedEarningsAccumulatedLosses2023-01-012023-12-3101778045ns5:FurtherSpecificReserve3ComponentTotalEquity2023-01-012023-12-310177804512023-01-012023-12-310177804512022-01-012022-12-3101778045ns5:OwnedOrFreeholdAssetsns5:LandBuildings2023-01-012023-12-3101778045ns5:PlantMachinery2023-01-012023-12-3101778045ns5:FurnitureFittings2023-01-012023-12-3101778045ns5:MotorVehicles2023-01-012023-12-3101778045ns5:OwnedAssets2023-01-012023-12-3101778045ns5:OwnedAssets2022-01-012022-12-3101778045ns5:LandBuildings2022-12-3101778045ns5:PlantMachinery2022-12-3101778045ns5:FurnitureFittings2022-12-3101778045ns5:MotorVehicles2022-12-3101778045ns5:LandBuildings2023-01-012023-12-3101778045ns5:LandBuildings2023-12-3101778045ns5:PlantMachinery2023-12-3101778045ns5:FurnitureFittings2023-12-3101778045ns5:MotorVehicles2023-12-3101778045ns5:LandBuildings2022-12-3101778045ns5:PlantMachinery2022-12-3101778045ns5:FurnitureFittings2022-12-3101778045ns5:MotorVehicles2022-12-3101778045ns5:ListedExchangeTradedns5:CostValuation2022-12-3101778045ns5:ListedExchangeTradedns5:AdditionsToInvestments2023-12-3101778045ns5:DisposalsRepaymentsInvestmentsns5:ListedExchangeTraded2023-12-3101778045ns5:ListedExchangeTradedns5:RevaluationsIncreaseDecreaseInInvestments2023-12-3101778045ns5:ListedExchangeTradedns5:CostValuation2023-12-3101778045ns5:ListedExchangeTraded2023-12-3101778045ns5:ListedExchangeTraded2022-12-3101778045ns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-12-3101778045ns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-12-3101778045ns5:Non-currentFinancialInstruments2023-12-3101778045ns5:Non-currentFinancialInstruments2022-12-3101778045ns5:TaxLossesCarry-forwardsDeferredTax2023-12-3101778045ns5:TaxLossesCarry-forwardsDeferredTax2022-12-3101778045ns5:DeferredTaxation2022-12-3101778045ns5:DeferredTaxation2023-12-3101778045ns10:OrdinaryShareClass12023-12-3101778045ns5:RetainedEarningsAccumulatedLosses2022-12-3101778045ns5:FurtherSpecificReserve3ComponentTotalEquity2022-12-3101778045ns10:Director222022-12-3101778045ns10:Director222021-12-3101778045ns10:Director222023-01-012023-12-3101778045ns10:Director222022-01-012022-12-3101778045ns10:Director222023-12-3101778045ns10:Director222022-12-31017780451ns10:Director12022-12-31017780451ns10:Director12021-12-31017780451ns10:Director12023-01-012023-12-31017780451ns10:Director12022-01-012022-12-31017780451ns10:Director12023-12-31017780451ns10:Director12022-12-31
REGISTERED NUMBER: 01778045 (England and Wales)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2023

for

R. Hannon Ltd

R. Hannon Ltd (Registered number: 01778045)






Contents of the Financial Statements
for the Year Ended 31 December 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 5

Report of the Independent Auditors 7

Income Statement 11

Balance Sheet 12

Statement of Changes in Equity 13

Cash Flow Statement 14

Notes to the Cash Flow Statement 15

Notes to the Financial Statements 16


R. Hannon Ltd

Company Information
for the Year Ended 31 December 2023







DIRECTORS: R M Hannon
Mrs J A Hannon
R Hannon





SECRETARY: Mrs J A Hannon





REGISTERED OFFICE: Herridge Farmhouse
Collingbourne Ducis
Marlborough
Wiltshire
SN8 3EG





REGISTERED NUMBER: 01778045 (England and Wales)





AUDITORS: Morley & Co (UK) Ltd
Statutory Auditor, Chartered Certified Accountants
2 Cricklade Court
Old Town
Swindon
Wiltshire
SN1 3EY

R. Hannon Ltd (Registered number: 01778045)

Strategic Report
for the Year Ended 31 December 2023

The directors present their strategic report for the year ended 31 December 2023.

REVIEW OF BUSINESS
The principal activity of the company is racehorse training and bloodstock dealing.

The key financial and other performance indicators during the year were as follows:

2023 2022
£ £
Turnover 6,204,722 6,990,781
Turnover growth/(fall) (11%) 4%
Gross profit margin 32% 36%
Profit before tax 241,343 84,674
Shareholders' Funds 16,707,066 16,546,505


Overall, turnover decreased by £786,059 or 11.24% in 2023 compared to 2022, largely due to a decrease in training fees and rechargeable fees. It is expected that the company's income will fluctuate year on year due to the competitiveness of the racing industry, the number of horses in training, prize money on offer and the market for buying and selling race horses.

The gross profit margin has decreased to 32% which was in line with expectations. Profit before tax increased by £156,669. Whilst the company has faced general inflationary pressures to the costs of staff wages and goods and services, the company has been able to pass through some of these costs with modest increases in training fees. Shareholders' funds remained broadly consistent at £16.7m. The company paid no dividends for the year.


R. Hannon Ltd (Registered number: 01778045)

Strategic Report
for the Year Ended 31 December 2023

PRINCIPAL RISKS AND UNCERTAINTIES
The company's directors meet on a regular basis to evaluate the company's principal risks and uncertainties.
The principal risks and uncertainties facing the company are broadly grouped as: competitive, regulatory and financial instrument risk.

Competitive Risks
The company is reliant on its continued success in training race horses to both retain existing owners and attract new owners. Whilst the Directors believe that the company will continue to successfully train winning horses, there is always a degree of uncertainty as to outcomes in the horse racing industry.

Regulatory Risks
The British Horseracing Authority (BHA) governs and regulates horse racing in the UK and therefore the company are subject to the standards laid down by the BHA. Changes to the standards set by the BHA could have a material impact on the company's operations. The company is also subject to risks associated with horse racing and agriculture such as the outbreak of disease which could have material impact on the company's operations.

Financial Instrument Risks
The company's principal financial instruments comprise bank balances, investments in managed funds, trade debtors, trade creditors and loans to/from the company. The main purpose of these instruments is to finance the company's operations and protect the company from events that might hinder the company's performance objectives. Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors. Trade creditor liquidity risk is managed by ensuring sufficient funds are available to meet liabilities as they fall due. Loans comprise loans to/from the directors. The business manages liquidity risk by ensuring that there are sufficient funds to meet the payments. The company does not use financial derivatives.

Exposure to price, credit, liquidity and cash flow risk
Price risk arises on financial instruments because of changes in, for example, commodity prices or equity prices. The company holds an investment portfolio, which includes listed investments, which it does not intend to sell in the short term as the funds are intended to be used for future investment in the company's trade when suitable opportunities arise. The investment portfolio is carried at fair value and is exposed to price risk but this exposure is within the company's risk appetite.

Credit risk is the risk that one party to a financial instrument will cause a financial loss for that other party by failing to discharge an obligation. Company policies are aimed at minimising such losses, and require that deferred terms are only granted to customers who demonstrate an appropriate payment history and satisfy credit worthiness procedures.

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The company aims to mitigate liquidity risk by managing cash generation by its operations and applying cash collection targets.

Cash flow risk is the risk of exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or liability such as future interest payments on a variability rate debt. The company has no significant external debt and maintains a significant cash reserve so as to mitigate any risk.

ON BEHALF OF THE BOARD:



R. Hannon Ltd (Registered number: 01778045)

Strategic Report
for the Year Ended 31 December 2023




R Hannon - Director


21 October 2024

R. Hannon Ltd (Registered number: 01778045)

Report of the Directors
for the Year Ended 31 December 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2023.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2023.

FUTURE DEVELOPMENTS
The directors have continued with their policy of building new and improved facilities to support the growth of the business. This policy includes ownership of the land and training facilities that it operates from, rather than renting. To this end, the directors have continued to retain profits in the form of cash and short-term, actively managed investments to provide the company with sufficient working capital and with a view to making specifically identified investments in the near future in barns and lad's accommodation.

The directors aim to maintain the management policies and business lines which have resulted in the company's success in recent years. They consider that the next year will show results broadly consistent with the current year.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

R M Hannon
Mrs J A Hannon
R Hannon

FINANCIAL INSTRUMENTS
Details of financial instruments are provided in the strategic report on page 3.

POLITICAL DONATIONS AND EXPENDITURE
The company made no political donations during the current or previous year.

GOING CONCERN
The company's business activities, together with the factors likely to affect its future development, its financial position, financial risk management objectives, details of its financial instruments and its exposures to price, credit,liquidity and cash flow risk are described in the Strategic Report on page 3.

DISCLOSURE IN THE STRATEGIC REPORT
The Directors' Business Review and assessment of the Principal Risks & Uncertainties have been included in the Strategic Report.


R. Hannon Ltd (Registered number: 01778045)

Report of the Directors
for the Year Ended 31 December 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Morley & Co (UK) Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





R Hannon - Director


21 October 2024

Report of the Independent Auditors to the Members of
R. Hannon Ltd

Opinion
We have audited the financial statements of R. Hannon Ltd (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of 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 the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
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 Auditors' 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 opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Report of the Independent Auditors to the Members of
R. Hannon Ltd


Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page six, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
R. Hannon Ltd


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

a. The nature of the industry and sector, control environment and business performance including the design of the company's remuneration policies, key drivers for directors' remuneration, bonus levels and performance targets;

b. Enquiring of management, including obtaining and reviewing supporting documentation, concerning the company's policies and procedures relating to:

b.i. Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

b.ii. Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

b.iii. The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.

b.iv. Obtaining an understanding of the legal and regulatory frameworks that the company operates in, focusing on those laws and regulations that had a direct effect on the financial statements, such as provisions of the UK Companies Act, pensions legislation and tax legislation or that had a fundamental effect on the operations of the company, General Data Protection requirements and Anti-bribery and corruption policy.

In common with all audits under ISAs (UK), we are required to perform specific procedures to respond to the risk of management override. Our procedures to respond to risks identified included the following:

a. Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

b. Enquiring of management and external legal counsel concerning actual and potential litigation and claims;

c. Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; and

d. Reading minutes of meetings of those charged with governance and correspondence with regulators.

In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.


Report of the Independent Auditors to the Members of
R. Hannon Ltd

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Paul King F.C.C.A. (Senior Statutory Auditor)
for and on behalf of Morley & Co (UK) Ltd
Statutory Auditor, Chartered Certified Accountants
2 Cricklade Court
Old Town
Swindon
Wiltshire
SN1 3EY

21 October 2024

R. Hannon Ltd (Registered number: 01778045)

Income Statement
for the Year Ended 31 December 2023

2023 2022
Notes £    £    £    £   

TURNOVER 4 6,204,722 6,990,781

Cost of sales 4,241,700 4,463,878
GROSS PROFIT 1,963,022 2,526,903

Administrative expenses 1,880,843 2,469,593
82,179 57,310

Other operating income 36,292 36,238
OPERATING PROFIT 6 118,471 93,548

Income from fixed asset investments 10,864 10,114
Interest receivable and similar income 41,541 40,385
52,405 50,499
170,876 144,047
Gain/loss on revaluation of assets 70,467 (59,373 )
PROFIT BEFORE TAXATION 241,343 84,674

Tax on profit 7 80,782 75,433
PROFIT FOR THE FINANCIAL YEAR 160,561 9,241

R. Hannon Ltd (Registered number: 01778045)

Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 8 8,200,111 8,338,530
Investments 9 614,783 629,364
Investment property 10 1,200,000 1,100,000
10,014,894 10,067,894

CURRENT ASSETS
Stocks 11 344,016 267,823
Debtors 12 1,693,936 1,996,301
Cash at bank and in hand 6,113,204 6,047,995
8,151,156 8,312,119
CREDITORS
Amounts falling due within one year 13 1,136,131 1,541,666
NET CURRENT ASSETS 7,015,025 6,770,453
TOTAL ASSETS LESS CURRENT
LIABILITIES

17,029,919

16,838,347

PROVISIONS FOR LIABILITIES 14 322,853 291,842
NET ASSETS 16,707,066 16,546,505

CAPITAL AND RESERVES
Called up share capital 15 1,000 1,000
Fair value reserve 16 237,113 162,113
Retained earnings 16 16,468,953 16,383,392
SHAREHOLDERS' FUNDS 16,707,066 16,546,505

The financial statements were approved by the Board of Directors the Board of Directors and authorised for issue on 21 October 2024 and were signed on its behalf by:





R Hannon - Director


R. Hannon Ltd (Registered number: 01778045)

Statement of Changes in Equity
for the Year Ended 31 December 2023

Called up Fair
share Retained value Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 January 2022 1,000 16,361,732 174,532 16,537,264

Changes in equity
Total comprehensive income - 21,660 (12,419 ) 9,241
Balance at 31 December 2022 1,000 16,383,392 162,113 16,546,505

Changes in equity
Total comprehensive income - 85,561 75,000 160,561
Balance at 31 December 2023 1,000 16,468,953 237,113 16,707,066

R. Hannon Ltd (Registered number: 01778045)

Cash Flow Statement
for the Year Ended 31 December 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (71,181 ) 871,288
Tax paid 54,153 (181,360 )
Net cash from operating activities (17,028 ) 689,928

Cash flows from investing activities
Purchase of tangible fixed assets (159,217 ) (989,466 )
Purchase of fixed asset investments (85,813 ) (275,605 )
Sale of tangible fixed assets 38,455 76,040
Sale of fixed asset investments 70,861 293,770
Interest received 41,541 40,385
Dividends received 10,864 10,114
Net cash from investing activities (83,309 ) (844,762 )

Cash flows from financing activities
Amount introduced by directors 529,897 1,108,442
Amount withdrawn by directors (364,351 ) (1,185,145 )
Net cash from financing activities 165,546 (76,703 )

Increase/(decrease) in cash and cash equivalents 65,209 (231,537 )
Cash and cash equivalents at
beginning of year

2

6,047,995

6,279,532

Cash and cash equivalents at end of
year

2

6,113,204

6,047,995

R. Hannon Ltd (Registered number: 01778045)

Notes to the Cash Flow Statement
for the Year Ended 31 December 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2023 2022
£    £   
Profit before taxation 241,343 84,674
Depreciation charges 289,059 235,323
Profit on disposal of fixed assets (29,877 ) (27,692 )
(Gain)/loss on revaluation of fixed assets (70,467 ) 59,373
Finance income (52,405 ) (50,499 )
377,653 301,179
(Increase)/decrease in stocks (76,193 ) 108,468
Decrease in trade and other debtors 101,586 257,859
(Decrease)/increase in trade and other creditors (474,227 ) 203,782
Cash generated from operations (71,181 ) 871,288

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31/12/23 1/1/23
£    £   
Cash and cash equivalents 6,113,204 6,047,995
Year ended 31 December 2022
31/12/22 1/1/22
£    £   
Cash and cash equivalents 6,047,995 6,279,532


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/23 Cash flow At 31/12/23
£    £    £   
Net cash
Cash at bank and in hand 6,047,995 65,209 6,113,204
6,047,995 65,209 6,113,204
Total 6,047,995 65,209 6,113,204

R. Hannon Ltd (Registered number: 01778045)

Notes to the Financial Statements
for the Year Ended 31 December 2023

1. COMPANY INFORMATION

R. Hannon Ltd is a limited liability company incorporated in England. The Registered Office is Herridge Farmhouse, Collingbourne Ducis, Marlborough, Wiltshire, SN8 3EG.The nature of the company's operations and principal activity is that of race horse training and dealing.

2. STATUTORY INFORMATION

R. Hannon Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Significant judgements and estimates
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Revaluation of investment properties
The Company carries its investment property at fair value, with changes in fair value being recognised in profit or loss. The Company engaged independent valuation specialists to determine fair value at the balance sheet date. The valuer used a valuation technique based on comparable market data and similar properties. The determined fair value of the investment property is most sensitive to current UK housing market pricing.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services.

Sale of goods
Turnover from the sale of bloodstock is recognised when the significant risks and rewards of ownership of the animal has transferred to the buyer. This is usually at the point that the customer has been registered as owner.

Rendering of services
Turnover from the rendering of services is recognised by reference to the training and ancillary costs of maintaining each horse under the company's care. The valuation of the services performed and included within turnover are measured by reference to the training and other standard fees charged per horse and the associated ancillary costs actually incurred.

R. Hannon Ltd (Registered number: 01778045)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

3. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 1% - 2% on cost
Plant and machinery - 25% on reducing balance
Fixtures and fittings - 25% on reducing balance
Motor vehicles - 25% on reducing balance

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Such cost includes costs directly attributable to making the asset capable of operating as intended.The carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

Investment property
Certain of the company's properties are held for long-term investment. Investment properties are accounted for as follows:

Investment properties are initially recognised at cost which includes purchase cost and any directly attributable expenditure. Investment properties whose fair value can be measured reliably are measured at fair value. The surplus or deficit on revaluation is recognised in the profit and loss account accumulated in the profit and loss reserve unless a deficit below original cost, or its reversal, on an individual investment property is expected to be permanent, in which case it is recognised in the profit and loss account for the year.

Stocks
Stocks are stated at the lower of cost and net realisable value. Cost includes all costs incurred in bringing each line of stock to its present location and condition, as follows:

Bloodstock
Bloodstock represents animals purchased by the company for re-sale and are are stated at the lower of cost and net realisable value. Net realisable value is based on estimated selling price less any further costs expected to be incurred to disposal.

Deadstock
Consumables used in the operating of the company's trade are stated at the lower of cost, on a first-in first-out basis, and net realisable value. As dead stock is for internal consumption and not re-sale, net realisable value is determined to be original cost unless the deadstock is considered to be unusable.

Financial instruments
Basic financial instruments, including trade and other receivables, trade and other payables, cash and bank balances, bank loans and loans to/from the company are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method.


R. Hannon Ltd (Registered number: 01778045)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

3. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Assets held under finance leases, which are leases where substantially all the risks and rewards of ownership of the asset have passed to the group, and hire purchase contracts are capitalised in the balance sheet and are depreciated over the shorter of the lease term and the asset’s useful lives. A corresponding liability is recognised for the lower of the fair value of the leased asset and the present value of the minimum lease payments in the balance sheet. Lease payments are apportioned between the reduction of the lease liability and finance charges in the income statement so as to achieve a constant rate of interest on the remaining balance of the liability.

Rentals payable under operating leases are charged in the profit and loss account on a straight line basis over the lease term. Lease incentives are recognised over the lease term on a straight line basis.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Investments
Equity investments are recognised initially at fair value which is normally the transaction price (but excludes any transaction costs,where the investment is subsequently measured at fair value through profit and loss). Subsequently, they are measured at fair value through profit or loss except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably which are recognised at cost less impairment until a reliable measure of fair value becomes available. If a reliable measure of fair value is no longer available, the equity instrument’s fair value on the last date the instrument was reliably measurable is treated as the cost of the instrument.

R. Hannon Ltd (Registered number: 01778045)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

4. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

The company trades solely within the United Kingdom.

5. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 1,980,092 2,749,926
Social security costs 201,828 309,528
Other pension costs 50,315 53,083
2,232,235 3,112,537

The average number of employees during the year was as follows:
2023 2022

Office 4 4
Yard 73 80
77 84

The company operates a stakeholder defined contribution pension scheme for the benefit of the employees and directors. The assets of the scheme are administered by an independent pensions provider. During the year the company made pension contributions of £50,315 (2022 - £53,083).

R. Hannon Ltd (Registered number: 01778045)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

5. EMPLOYEES AND DIRECTORS - continued

2023 2022
£ £

Directors' Remuneration


124,176


798,114


The number of directors to whom retirement benefits were accruing was as follows:

Money purchase
schemes


3


3

Remuneration above includes the following amount paid to the highest paid director:

2023 2022
£ £

Directors' Remuneration


104,176


777,690








6. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Other operating leases 6,794 7,305
Depreciation - owned assets 289,058 235,323
Profit on disposal of fixed assets (29,877 ) (27,692 )
Auditors' remuneration 15,400 14,000
Auditors' remuneration for non audit work 46,900 21,656

R. Hannon Ltd (Registered number: 01778045)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 49,770 -

Deferred tax 31,012 75,433
Tax on profit 80,782 75,433

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 241,343 84,674
Profit multiplied by the standard rate of corporation tax in the UK of
23.373% (2022 - 19%)

56,409

16,088

Effects of:
Expenses not deductible for tax purposes 19,192 28,041
Income not taxable for tax purposes (24,229 ) (5,828 )
Capital allowances in excess of depreciation - (55,089 )
Depreciation in excess of capital allowances 24,617 -
Utilisation of tax losses (22,479 ) (14,323 )
Deferred Taxation 31,012 75,434
Other adjustments (3,740 ) 31,110
Total tax charge 80,782 75,433

The rate of corporation tax applied in 2023 was 19% and 25%. As a result the effective tax rate for the year is 23.373% (2022: 19%)

R. Hannon Ltd (Registered number: 01778045)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

8. TANGIBLE FIXED ASSETS
Fixtures
Freehold Plant and and Motor
property machinery fittings vehicles Totals
£    £    £    £    £   
COST
At 1 January 2023 8,473,033 1,137,220 318,619 442,399 10,371,271
Additions 325 60,021 45,871 53,000 159,217
Disposals - (42,600 ) - (43,850 ) (86,450 )
At 31 December 2023 8,473,358 1,154,641 364,490 451,549 10,444,038
DEPRECIATION
At 1 January 2023 778,759 784,158 235,401 234,423 2,032,741
Charge for year 90,477 108,350 30,822 59,409 289,058
Eliminated on disposal - (39,997 ) - (37,875 ) (77,872 )
At 31 December 2023 869,236 852,511 266,223 255,957 2,243,927
NET BOOK VALUE
At 31 December 2023 7,604,122 302,130 98,267 195,592 8,200,111
At 31 December 2022 7,694,274 353,062 83,218 207,976 8,338,530

9. FIXED ASSET INVESTMENTS
Listed
investments
£   
COST OR VALUATION
At 1 January 2023 629,364
Additions 85,813
Disposals (70,861 )
Revaluations (29,533 )
At 31 December 2023 614,783
NET BOOK VALUE
At 31 December 2023 614,783
At 31 December 2022 629,364

R. Hannon Ltd (Registered number: 01778045)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

9. FIXED ASSET INVESTMENTS - continued

Cost or valuation at 31 December 2023 is represented by:

Listed
investments
£   
Valuation in 2023 (37,193 )
Cost 651,976
614,783

10. INVESTMENT PROPERTY
Total
£   
FAIR VALUE
At 1 January 2023 1,100,000
Revaluations 100,000
At 31 December 2023 1,200,000
NET BOOK VALUE
At 31 December 2023 1,200,000
At 31 December 2022 1,100,000

Fair value at 31 December 2023 is represented by:
£   
Valuation in 2024 481,280
Cost 718,720
1,200,000

If the investment property had not been revalued it would have been included at the following historical cost:

2023 2022
£    £   
Cost 718,720 718,720

The investment property was valued on an open market value basis on 31 December 2023 by Windsor Clive International Ltd .

The investment properties were valued by an independent valuer with a recognised and relevant professional qualification and with recent experience in the location and category of the investment property being valued, on the basis of open market value in accordance with the Appraisal and Valuation Manual of The Royal Institution of Chartered Surveyors.

R. Hannon Ltd (Registered number: 01778045)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

11. STOCKS
2023 2022
£    £   
Bloodstock 327,027 250,834
Dead stock 16,989 16,989
344,016 267,823

12. DEBTORS
2023 2022
£    £   
Amounts falling due within one year:
Trade debtors 1,170,271 1,182,688
Other debtors 109,897 169,825
Directors' current accounts 57,749 210,421
Prepayments and accrued income 222,020 251,261
1,559,937 1,814,195

Amounts falling due after more than one year:
Tax 133,999 182,106

Aggregate amounts 1,693,936 1,996,301

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade creditors 468,154 587,473
Tax 60,230 4,414
Social security and other taxes 56,679 509,880
VAT 203,602 70,125
Other creditors 94,620 165,841
Directors' current accounts 12,876 -
Accrued expenses 239,970 203,933
1,136,131 1,541,666

R. Hannon Ltd (Registered number: 01778045)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

14. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax
Tax losses carried forward - (23,956 )
Other timing differences 178,444 189,005
Deferred tax 144,409 126,793
322,853 291,842

Deferred
tax
£   
Balance at 1 January 2023 291,842
Full provision for revaluation 17,617
Accelerated capital allowances (10,562 )
Trading losses 23,956
Balance at 31 December 2023 322,853

15. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
1,000 Ordinary £1 1,000 1,000

All Ordinary shares rank pari passu, with one voting right and equal rights to dividends and capital on winding up.

16. RESERVES
Fair
Retained value
earnings reserve Totals
£    £    £   

At 1 January 2023 16,383,392 162,113 16,545,505
Profit for the year 160,561 160,561
Revaluation of investments (75,000 ) 75,000 -
At 31 December 2023 16,468,953 237,113 16,706,066

Retained Earnings - includes all current and prior period retained profits and losses.

R. Hannon Ltd (Registered number: 01778045)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

17. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 December 2023 and 31 December 2022:

2023 2022
£    £   
R M Hannon
Balance outstanding at start of year 13,596 3,538
Amounts advanced 256,826 214,780
Amounts repaid (212,673 ) (204,722 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 57,749 13,596

R Hannon
Balance outstanding at start of year 196,824 152,534
Amounts advanced 38,744 977,356
Amounts repaid (248,444 ) (933,066 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year (12,876 ) 196,824

Directors loans to or from the company were unsecured and repayable on demand. Interest was charged on the overdrawn directors loans at a market rate. The interest charged in the period totalled £1,727. No interest is charged to the company where money is owed to the directors.The maximum amount owed to the company by R M Hannon in the year was £96,464. The maximum amount owed to the company by R Hannon in the year was £191,743.

18. RELATED PARTY DISCLOSURES

The investment properties owned by the company are rented on an arms length basis at a rate of £35,000 per annum to a partnership in which the directors' daughter is a 50% partner.

During the year the company made sales totalling £0 and purchases totalling £5,653 on an arms length basis from a company in which the director's son-in-law is a director. £0 was owed to the related party at the year end.

At the year end £6,518 was outstanding in the way of an unsecured loan from the son-in-law of R M Hannon.

At the year end £58,162 was outstanding in the way of an unsecured loan from the son of R M Hannon.

19. ULTIMATE CONTROLLING PARTY

There was no ultimate controlling party. The company was under the control of the Board