Hopkins & Jones Limited 00433606 false 2023-01-01 2023-12-31 2023-12-31 The principal activity of the company is that of pawnbrokers and jewellers. Digita Accounts Production Advanced 6.30.9574.0 true true 00433606 2023-01-01 2023-12-31 00433606 2023-12-31 00433606 core:AcceleratedTaxDepreciationDeferredTax 2023-12-31 00433606 core:AccruedLiabilitiesDeferredTax 2023-12-31 00433606 core:TaxLossesCarry-forwardsDeferredTax 2023-12-31 00433606 core:CurrentFinancialInstruments 2023-12-31 00433606 core:CurrentFinancialInstruments core:WithinOneYear 2023-12-31 00433606 core:Non-currentFinancialInstruments 2023-12-31 00433606 core:Non-currentFinancialInstruments core:AfterOneYear 2023-12-31 00433606 core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-12-31 00433606 core:Goodwill 2023-12-31 00433606 core:BetweenTwoFiveYears 2023-12-31 00433606 core:MoreThanFiveYears 2023-12-31 00433606 core:WithinOneYear 2023-12-31 00433606 core:FurnitureFittingsToolsEquipment 2023-12-31 00433606 core:LandBuildings 2023-12-31 00433606 core:OtherProvisionsContingentLiabilities 2023-12-31 00433606 bus:SmallEntities 2023-01-01 2023-12-31 00433606 bus:AuditExemptWithAccountantsReport 2023-01-01 2023-12-31 00433606 bus:FullAccounts 2023-01-01 2023-12-31 00433606 bus:SmallCompaniesRegimeForAccounts 2023-01-01 2023-12-31 00433606 bus:RegisteredOffice 2023-01-01 2023-12-31 00433606 bus:Director2 2023-01-01 2023-12-31 00433606 bus:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 00433606 core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-01-01 2023-12-31 00433606 core:Goodwill 2023-01-01 2023-12-31 00433606 core:FurnitureFittings 2023-01-01 2023-12-31 00433606 core:FurnitureFittingsToolsEquipment 2023-01-01 2023-12-31 00433606 core:LandBuildings 2023-01-01 2023-12-31 00433606 core:OtherProvisionsContingentLiabilities 2023-01-01 2023-12-31 00433606 1 2023-01-01 2023-12-31 00433606 countries:EnglandWales 2023-01-01 2023-12-31 00433606 2022-12-31 00433606 core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2022-12-31 00433606 core:Goodwill 2022-12-31 00433606 core:FurnitureFittingsToolsEquipment 2022-12-31 00433606 core:LandBuildings 2022-12-31 00433606 core:OtherProvisionsContingentLiabilities 2022-12-31 00433606 2022-01-01 2022-12-31 00433606 2022-12-31 00433606 core:AcceleratedTaxDepreciationDeferredTax 2022-12-31 00433606 core:AccruedLiabilitiesDeferredTax 2022-12-31 00433606 core:TaxLossesCarry-forwardsDeferredTax 2022-12-31 00433606 core:CurrentFinancialInstruments core:WithinOneYear 2022-12-31 00433606 core:CurrentFinancialInstruments core:WithinOneYear core:RestatedAmount 2022-12-31 00433606 core:CurrentFinancialInstruments core:RestatedAmount 2022-12-31 00433606 core:Non-currentFinancialInstruments 2022-12-31 00433606 core:Non-currentFinancialInstruments core:AfterOneYear 2022-12-31 00433606 core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2022-12-31 00433606 core:Goodwill 2022-12-31 00433606 core:BetweenTwoFiveYears 2022-12-31 00433606 core:MoreThanFiveYears 2022-12-31 00433606 core:WithinOneYear 2022-12-31 00433606 core:FurnitureFittingsToolsEquipment 2022-12-31 00433606 core:LandBuildings 2022-12-31 00433606 core:RestatedAmount 2022-12-31 iso4217:GBP xbrli:pure

Registration number: 00433606

Prepared for the registrar

Hopkins & Jones Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 December 2023

 

Hopkins & Jones Limited

Contents

Balance Sheet

1

Notes to the Financial Statements

2 to 9

 

Hopkins & Jones Limited

(Registration number: 00433606)
Balance Sheet as at 31 December 2023

Note

2023
£

(As restated)

2022
£

Fixed assets

 

Intangible assets

4

425,230

476,861

Tangible assets

5

395,572

379,050

 

820,802

855,911

Current assets

 

Stocks

1,421,682

1,127,963

Debtors

6

13,841,630

11,621,705

Debtors: Amounts falling due after more than one year

 

93,940

57,000

Cash at bank and in hand

 

545,068

999,677

 

15,902,320

13,806,345

Creditors: Amounts falling due within one year

7

(20,016,353)

(792,382)

Net current (liabilities)/assets

 

(4,114,033)

13,013,963

Total assets less current liabilities

 

(3,293,231)

13,869,874

Creditors: Amounts falling due after more than one year

7

-

(16,772,146)

Provisions

 

(434,348)

(428,985)

Net liabilities

 

(3,727,579)

(3,331,257)

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 members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

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 Board on 12 November 2024 and signed on its behalf by:
 


J Tannahill
Director

 

Hopkins & Jones Limited

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

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
127 Victoria Street
London
SW1E 6RD
England

 

2

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
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss.

 

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 27 (2022 - 23).

 

Hopkins & Jones Limited

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

 

4

Intangible assets

Goodwill
 £

Website development costs
 £

Total
£

Cost

At 1 January 2023 as restated

675,594

3,945

679,539

Additions acquired separately

-

22,436

22,436

At 31 December 2023

675,594

26,381

701,975

Amortisation

At 1 January 2023

202,678

-

202,678

Amortisation charge

67,559

6,508

74,067

At 31 December 2023

270,237

6,508

276,745

Carrying amount

At 31 December 2023

405,357

19,873

425,230

At 31 December 2022 as restated

472,916

3,945

476,861

 

5

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Total
£

Cost

At 1 January 2023 as restated

339,713

142,241

481,954

Additions

685

57,086

57,771

At 31 December 2023

340,398

199,327

539,725

Depreciation

At 1 January 2023

19,060

83,844

102,904

Charge for the year

32,491

8,758

41,249

At 31 December 2023

51,551

92,602

144,153

Carrying amount

At 31 December 2023

288,847

106,725

395,572

At 31 December 2022 as restated

320,653

58,397

379,050

 

Hopkins & Jones Limited

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

 

6

Debtors

Note

2023
 £

(As restated)
2022
 £

Loan book

 

11,731,007

9,744,462

Interest receivable

 

1,881,604

1,496,498

Rent deposits over 1 year

 

93,940

57,000

Prepayments

 

154,590

105,177

VAT debtor

 

-

2,867

Deferred tax assets

74,429

272,701

   

13,935,570

11,678,705

Less non-current portion

 

(93,940)

(57,000)

Total current trade and other debtors

 

13,841,630

11,621,705

 

7

Creditors

2023
 £

(As restated)
2022
 £

Due within one year

 

Other loans

19,056,508

-

Trade creditors

 

74,921

58,188

Social security and other taxes

 

112,646

47,794

Outstanding defined contribution pension costs

 

7,613

20,857

Payments on account

 

17,743

31

Auction surplus

 

102,210

89,408

Accrued expenses

 

644,712

576,104

 

20,016,353

792,382

2023
£

2022
£

Due after one year

Other loans

-

16,772,146

 

8

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

316,350

316,350

Later than one year and not later than five years

1,065,900

1,179,900

Later than five years

469,313

671,663

1,851,563

2,167,913

 

Hopkins & Jones Limited

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

 

9

Provisions

Dilapidations provisions
£

Total
£

At 1 January 2023 as restated

428,985

428,985

Increase due to passage of time or unwinding of discount

5,363

5,363

At 31 December 2023

434,348

434,348

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.

 

10

Deferred tax

Deferred tax assets and liabilities

2023

Asset
£

Accelerated tax depreciation

(69,318)

Accrued liabilities

873

Tax losses carry forward

142,874

74,429

2022

Asset
£

Accelerated tax depreciation

(45,849)

Accrued liabilities

4,488

Tax losses carry forward

314,062

272,701

 

11

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).

 

12

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

 

13

Non adjusting events after the financial period

Subsequent to the year end, in March 2024 the Board made the decision to close the Fleet Street store to reduce overheads whilst retaining customers through servicing online and via the other stores. There was no adverse financial impact.

 

14

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.