Registration number:
Prepared for the registrar
for the
Year Ended 31 December 2023
Hopkins & Jones Limited
(Registration number: 00433606)
Balance Sheet as at 31 December 2023
Note |
2023 |
(As restated) |
|
Fixed assets |
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Intangible assets |
|
|
|
Tangible assets |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Debtors: Amounts falling due after more than one year |
93,940 |
57,000 |
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current (liabilities)/assets |
( |
|
|
Total assets less current liabilities |
( |
|
|
Creditors: Amounts falling due after more than one year |
- |
( |
|
Provisions |
(434,348) |
(428,985) |
|
Net liabilities |
( |
( |
|
Capital and reserves |
|||
Called up share capital |
7,500 |
7,500 |
|
Profit and loss account |
(3,735,079) |
(3,338,757) |
|
Shareholders' deficit |
(3,727,579) |
(3,331,257) |
For the financial year ending 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
• |
|
• |
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.
Approved and authorised by the
Director
Hopkins & Jones Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
England
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.
The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.
Going concern
After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources, with the ongoing support of its shareholders to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.
Critical accounting 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 amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The following estimates and judgements are included:
1) |
Stock Provision |
The directors make an estimate of the recoverable value of the stock items on an line by line basis. When assessing the impairment, management considers factors including ageing profile of the receivable, nature of the items held and current market trends for the type of stock item. Where the net realisable value is less than the carrying value, an impairment against the stock item is recognised. |
|
2) |
Impairment of loan book |
The directors make an estimate of the recoverable value of the loan book. When assessing the impairment, management considers factors including ageing profile of the receivable, nature of the pledge stock held as security and historical experience of the market for the type of pledge. |
|
3) |
Dilapidation provision |
The directors have assessed the dilapidation provisions for all shops based on a 3rd party valuation obtained for the restoration costs in returning the premises back to its original condition before the lease was entered into. The dilapidation estimate will be continually reviewed based on experience and other factors, including expectation of future events. |
Hopkins & Jones Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Revenue recognition
The Company recognises revenue from the following major sources:
- Pawnbroking
- Retail
Pawnbroking revenue comprises contractual interest earned on pledge loans, plus auction profit or loss, less any auction commissions payable and less surplus payable to the customer.
Retail revenue is recognised when control of the goods has transferred, being at the point the customer purchases the goods at the store or the goods purchased online are delivered. Revenue is recognised when control of the goods has transferred, being at the point the smelter purchases the relevant metals.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred corporation tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Land and buildings |
10% straight line |
Furniture, fittings and equipment |
10% reducing balance |
Intangible assets
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.
Negative goodwill arising on an acquisition is recognised on the face of the balance sheet on the acquisition date and subsequently the excess up to the fair value of non-monetary assets acquired is recognised in profit or loss in the periods in which the non-monetary assets are recovered.
Website development costs are stated in the statement of financial position at cost, less any subsequent accumulated amortisation.
Hopkins & Jones Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Goodwill |
Amortised over expected life of 10 years |
Website development costs |
Amortised over expected life of 2 years |
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Provisions
Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Hopkins & Jones Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Financial instruments
Classification
Recognition and measurement
Impairment
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
Hopkins & Jones Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Intangible assets |
Goodwill |
Website development costs |
Total |
|
Cost |
|||
At 1 January 2023 as restated |
|
|
|
Additions acquired separately |
- |
|
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At 31 December 2023 |
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Amortisation |
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At 1 January 2023 |
|
- |
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Amortisation charge |
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|
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At 31 December 2023 |
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Carrying amount |
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At 31 December 2023 |
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At 31 December 2022 as restated |
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Tangible assets |
Land and buildings |
Furniture, fittings and equipment |
Total |
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Cost |
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At 1 January 2023 as restated |
|
|
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Additions |
|
|
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At 31 December 2023 |
|
|
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Depreciation |
|||
At 1 January 2023 |
|
|
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Charge for the year |
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At 31 December 2023 |
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Carrying amount |
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At 31 December 2023 |
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At 31 December 2022 as restated |
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Hopkins & Jones Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Debtors |
Note |
2023 |
(As restated) |
|
Loan book |
11,731,007 |
9,744,462 |
|
Interest receivable |
1,881,604 |
1,496,498 |
|
Rent deposits over 1 year |
|
|
|
Prepayments |
|
|
|
VAT debtor |
- |
|
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Deferred tax assets |
|
|
|
|
|
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Less non-current portion |
( |
( |
|
Total current trade and other debtors |
|
|
Creditors |
2023 |
(As restated) |
||
Due within one year |
|||
Other loans |
|
- |
|
Trade creditors |
|
|
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Social security and other taxes |
|
|
|
Outstanding defined contribution pension costs |
|
|
|
Payments on account |
17,743 |
31 |
|
Auction surplus |
102,210 |
89,408 |
|
Accrued expenses |
|
|
|
|
|
2023 |
2022 |
|
Due after one year |
||
Other loans |
- |
|
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
2023 |
2022 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
|
Hopkins & Jones Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Provisions |
Dilapidations provisions |
Total |
|
At 1 January 2023 as restated |
|
|
Increase due to passage of time or unwinding of discount |
|
|
At 31 December 2023 |
|
|
|
The nature of the dilapidation provision is for the removal of structural and non-structural elements to restore the leased premises to its original condition at the inception of the contract as required by the terms of the lease agreement.
Deferred tax |
Deferred tax assets and liabilities
2023 |
Asset |
Accelerated tax depreciation |
( |
Accrued liabilities |
|
Tax losses carry forward |
|
|
2022 |
Asset |
Accelerated tax depreciation |
( |
Accrued liabilities |
|
Tax losses carry forward |
|
|
Related party transactions |
Included in other loans is an amount due to J Tannahill's spouse of £335,032 (2022: £303,521). The loan was transferred to J Tannahill's spouse from J Tannahill on the last day of the financial year. Interest of £36,616 (2022: £28,546) was accrued on the loan during the year and the loan matures on 19 December 2024.
Transactions with other related parties
Included in other loans is an amount due to Crestline Opportunity Fund III (Europe) Master Fund D SCSP of £18,721,476 (2022: £16,468,623) . Interest of £1,752,853 (2022: £1,548,862) was accrued on the loan during the year and the loan matures on 19 December 2024.
During the year, £50,000 (2022 - £50,000) was accrued for the monitoring fee payable to Crestline Management, LP, Fund Manager of Crestline Opportunity Fund III (Europe) Master Fund E SCSP . The total accrual as at 31 December 2023 was £201,814 (2022 - £151,814).
Parent and ultimate parent undertaking |
The day to day control of the company is exercised by J Tannahill, a director of the company.
The ultimate controlling party is Crestline Opportunity Fund III (Europe) Master Fund E SCSP.
Hopkins & Jones Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Non adjusting events after the financial period |
|
Prior year adjustment |
A prior period restatement has arisen to reallocate website development costs of £3,945 from tangible fixed assets to intangible fixed assets in order to accurately reflect the nature of the asset. There is no profit effect in relation to this restatement.
A prior period restatement to net the stock and loan provision of £102,817 and £256,387 respectively against the assets in which the provision relates to. The reallocation was made to accurately reflect the carrying value of stock and loan book asset. There is no profit effect in relation to this adjustment.
A prior period restatement has been made of £205,100 to reclassify the loss on auction from revenue to cost of sales. The reallocation was made to reflect the true nature of the cost incurred and to recognise gross revenue. There is no profit effect in relation to this adjustment.
A prior period restatement has arisen to reallocate rent deposits £57,000 from debtors within 1year to debtors >1year in order to accurately reflect when the deposit is repayable. There is no profit effect in relation to this restatement.
A prior period restatement has arisen to reallocate deferred tax asset of £272,701 from debtors >1year to debtors within 1year in order to accurately reflect when the timing expectation of the asset. There is no profit effect in relation to this restatement.
A prior period adjustment has arisen to accrue for monitoring fees due to Crestline Management, LP which were not previously accounted for. This has resulted in an increase to administrative expenses and accrued expenses of £50,000 for year ending 31 December 2022. The opening comparative position was also restated to accrue for the monitoring fee from 19 December 2019 resulting in a decrease in reserves and increase of accrued expenses of £101,814 for the year ended 31 December 2021.
A prior period adjustment has arisen to adjust the dilapidation credit of £58,500 which was previously capitalised and netted against the land and building additions following the restatement of the dilapidation. This resulted in an increase to land and buildings and an increase in the provision of £58,500. There is no profit effect in relation to this adjustment.
A further adjustment has arisen to uplift opening dilapidation provision brought forward as at 31 December 2021 due to an oversight in the information used in the dilapidation estimate previously accounted for. This has resulted in an uplift of the dilapidation and decrease in the reserves as at 31 December 2021 of £242,764.
The unwinding of the discounted value of the dilapidation also resulted in an increase to interest payable and provision of £35,721 for the year ending 31 December 2022. The overall closing reserves at 31 December 2022 decreased by £278,485.
The effect of the above restatements resulted in an increase of the Statement of Changes in Equity in relation to the Profit and Loss Account of £430,299 as at 31 December 2022 and £344,578 as at 31 December 2021.