Company registration number 09983007 (England and Wales)
HM HOLDING LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
HM HOLDING LTD
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
HM HOLDING LTD
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
4
5,703,672
3,165,710
Current assets
Cash at bank and in hand
104,292
3,541
Creditors: amounts falling due within one year
5
(3,850,916)
(3,750,033)
Net current liabilities
(3,746,624)
(3,746,492)
Total assets less current liabilities
1,957,048
(580,782)
Creditors: amounts falling due after more than one year
6
(1,401,375)
(1,401,375)
Net assets/(liabilities)
555,673
(1,982,157)
Capital and reserves
Called up share capital
7
11,710
11,710
Share premium account
940,530
940,530
Profit and loss reserves
(396,567)
(2,934,397)
Total equity
555,673
(1,982,157)
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 7 November 2024 and are signed on its behalf by:
Mr. A Appleby
Director
Company Registration No. 09983007
HM HOLDING LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
HM Holding Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Unit J, Centurion Business Park, Bitterne Road, Southampton, SO18 1UB.
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 has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
1.2
Going concern
These financial statements are prepared on the going concern basis. The directors acknowledge the profit for the year of £2,537,830 and the net assets shown on the balance sheet of £555,673. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future. In making this assessment they have taken into account the year end balances due to the subsidiary company of £2,837,431 and to loan note holders of £1,401,375 principal plus interest due of £1,013,485.
The company has also entered into a composite charge and guarantee in relation to third party borrowings by its subsidiary undertaking. Under the terms of the third party loan agreement no loan note interest or capital may be repaid on the loan notes without the permission of the third party lender.
On the basis of the funds available to the holding company, the terms and agreed facilities available, the trading position of the subsidiary company up to the signature of these accounts and the future forecasts, the directors believe that liabilities can be met as they fall due for a period of at least one year from the date of signature of these accounts. The directors therefore continue to adopt the going concern basis in the preparation of the financial statements.
1.3
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.
1.4
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.
HM HOLDING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
1.5
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, loan notes, and loans from fellow group companies 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.
1.6
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.
1.7
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.8
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.
HM HOLDING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
3
4
4
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
5,703,672
3,165,710
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 & 31 December 2023
3,165,710
Impairment
At 1 January 2023
-
Reversal of impairment
(2,537,962)
At 31 December 2023
(2,537,962)
Carrying amount
At 31 December 2023
5,703,672
At 31 December 2022
3,165,710
HM HOLDING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
5
Creditors: amounts falling due within one year
2023
2022
£
£
Amounts owed to group undertakings
2,837,431
2,820,631
Other creditors
1,013,485
929,402
3,850,916
3,750,033
6
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Other borrowings
1,401,375
1,401,375
Included in other borrowings are loans of £1.4m. Interest due on these loan notes of £1,013,485 is included within creditors due in less than one year. The loans are secured by a fixed and floating charge over all property and undertakings of the company and are guaranteed by a cross charge over the assets of He-Man Dual Controls Limited, a company held indirectly through He-Man Equipment Limited.
7
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
950,030
950,030
9,500
9,500
Ordinary A shares of 1p each
123,000
123,000
1,230
1,230
Ordinary B shares of 1p each
98,000
98,000
980
980
1,171,030
1,171,030
11,710
11,710
A and B shares carry restricted voting, dividend and capital distribution (including on winding up) rights as set out in the Articles of Association of the Company.
During 2020 the company entered into a growth share plan with certain directors allowing for up to 95,000 B shares to be issued between 2020 and 2022 based on the achievement of certain profit targets. These targets have not been met and no charge has been included in the accounts in relation to these shares. No shares were issued under this plan in 2021 or 2022.
8
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:
Jon Noble
Statutory Auditor:
Azets Audit Services
HM HOLDING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
9
Financial commitments, guarantees and contingent liabilities
The assets of the Company are secured by fixed and floating charges against a loan to He-Man Dual Controls Limited.
10
Parent company
There is no ultimate controlling party.