Company registration number 06997423 (England and Wales)
HERO CLUB LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
HERO CLUB LIMITED
CONTENTS
Page
Statement of financial position
1
Statement of changes in equity
2
Notes to the financial statements
3 - 8
HERO CLUB LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
3
1,920,519
1,991,097
Property, plant and equipment
4
2,249,226
1,626,052
4,169,745
3,617,149
Current assets
Inventories
22,858
22,858
Trade and other receivables
5
470,849
388,738
Cash and cash equivalents
262
164
493,969
411,760
Current liabilities
6
(4,598,290)
(3,881,372)
Net current liabilities
(4,104,321)
(3,469,612)
Total assets less current liabilities
65,424
147,537
Equity
Called up share capital
7
535,000
535,000
Revaluation reserve
138,207
93,153
Retained earnings
(607,783)
(480,616)
Total equity
65,424
147,537
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
For the financial year ended 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
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 18 November 2024 and are signed on its behalf by:
P R E Burke
Director
Company Registration No. 06997423
HERO CLUB LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Share capital
Revaluation reserve
Retained earnings
Total
£
£
£
£
As restated for the period ended 31 December 2022:
Balance at 1 January 2022
535,000
63,912
(160,205)
438,707
Effect of prior year adjustment
-
14,992
14,992
As restated
535,000
78,904
(160,205)
453,699
Year ended 31 December 2022:
Loss
-
-
(320,411)
(320,411)
Other comprehensive income:
Revaluation of property, plant and equipment
-
14,249
-
14,249
Total comprehensive income
-
14,249
(320,411)
(306,162)
Balance at 31 December 2022
535,000
93,153
(480,616)
147,537
Year ended 31 December 2023:
Loss
-
-
(127,167)
(127,167)
Other comprehensive income:
Revaluation of property, plant and equipment
-
45,054
-
45,054
Total comprehensive income
-
45,054
(127,167)
(82,113)
Balance at 31 December 2023
535,000
138,207
(607,783)
65,424
HERO CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
1
Accounting policies
Company information
Hero Club Limited is a private company limited by shares incorporated in England and Wales. The registered office is 138 Southern Avenue, Command Works, Bicester Heritage, Bicester, OX27 8FY.
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.
1.2
Revenue
Revenue is comprised of vehicle rental income, membership fees and license fees. Revenue is recognised when the service is performed to the extent that it is probable that economic benefits will flow into the Company, excludes value added tax and arises solely in the United Kingdom.
1.3
Intangible fixed assets - goodwill
Acquired goodwill is written off in equal annual instalments over its estimated useful economic life of 10 to 25 years.
1.4
Intangible fixed assets other than goodwill
Photo library and website development expenditure is written off in the year in which it is incurred unless the directors are satisfied that the cost is incurred in order to generate income from the platform. In this situation, the expenditure is capitalised and amortised over the period during which the company is expected to benefit which is 10 years.
Trademarks are valued at cost less accumulated amortisation. Amortisation is calculated to write off the cost in equal annual instalments over their estimated useful lives of 6 to 10 years.
1.5
Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and machinery
20% straight line
Fixtures, fittings & equipment
20% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the statement of income.
HERO CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
Classic cars whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation. The fair value of the classic cars is usually considered to be their market value.
Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and losses are recognised in profit or loss.
No depreciation is being provided on classic cars as the directors believe they will appreciate in value over time. The directors believe the residual value of the motor vehicles will be higher than the historic cost and hence the useful economic life of the cars is not relevant meaning no depreciation charge is considered necessary.
1.6
Impairment of non-current assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.7
Inventories
Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell.
1.8
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.
1.9
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 statement of financial position 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 trade and other receivables 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.
HERO CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
Basic financial liabilities
Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares 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.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.10
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.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
HERO CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
3
Intangible fixed assets
Goodwill
Other
Total
£
£
£
Cost
At 1 January 2023
2,028,598
987,952
3,016,550
Additions
117,218
117,218
At 31 December 2023
2,028,598
1,105,170
3,133,768
Amortisation and impairment
At 1 January 2023
503,001
522,452
1,025,453
Amortisation charged for the year
85,428
102,368
187,796
At 31 December 2023
588,429
624,820
1,213,249
Carrying amount
At 31 December 2023
1,440,169
480,350
1,920,519
At 31 December 2022
1,525,597
465,500
1,991,097
4
Property, plant and equipment
Plant and machinery
Fixtures, fittings & equipment
Classic cars
Total
£
£
£
£
Cost or valuation
At 1 January 2023
278,380
26,751
1,697,285
2,002,416
Additions
44,940
785,144
830,084
Disposals
(104,283)
(104,283)
Revaluation
45,054
45,054
At 31 December 2023
323,320
26,751
2,423,200
2,773,271
Depreciation and impairment
At 1 January 2023
210,032
26,751
139,581
376,364
Depreciation charged in the year
42,969
42,969
Impairment losses
174,045
174,045
Reversal of past impairment
(69,333)
(69,333)
At 31 December 2023
253,001
26,751
244,293
524,045
Carrying amount
At 31 December 2023
70,319
2,178,907
2,249,226
At 31 December 2022
68,348
1,557,704
1,626,052
Classic cars with a carrying amount of £2,178,907 (2022 - £1,557,704) were revalued at the reporting date by the directors of the company, who have a significant knowledge of the market.
HERO CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
4
Property, plant and equipment
(Continued)
- 7 -
If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:
Classic cars
2023
2022
£
£
Cost
2,284,992
1,587,787
Depreciation would not have been charged as the expected residual value exceeds the historic cost.
5
Trade and other receivables
2023
2022
£
£
Amounts falling due within one year:
Other receivables
470,849
388,738
6
Current liabilities
2023
2022
£
£
Amounts owed to group undertakings
4,592,075
3,597,500
Other payables
6,215
283,872
4,598,290
3,881,372
7
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
535,000
535,000
535,000
535,000
8
Financial commitments, guarantees and contingent liabilities
Hero Club Limited is one of several entities to have provided Heritage Motoring Group Limited, a company under common control, a guarantee in respect of a bank loan amounting to £0.4m. The guarantee and any other liabilities due to the bank are secured against the company's assets by way of a fixed and floating charge.
9
Prior period adjustment
HERO CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Prior period adjustment
(Continued)
- 8 -
Reconciliation of changes in equity
1 January
31 December
2022
2022
Notes
£
£
Adjustments to prior year
Provision against other receivables
1
-
(230,374)
Deferred tax reversal
2
-
17,244
Total adjustments
-
(213,130)
Equity as previously reported
438,707
360,667
Equity as adjusted
438,707
147,537
Analysis of the effect upon equity
Revaluation reserve
14,992
23,288
Retained earnings
-
(236,418)
14,992
(213,130)
Reconciliation of changes in loss for the previous financial period
2022
Notes
£
Adjustments to prior year
Provision against other receivables
1
(230,374)
Deferred tax reversal
2
(6,044)
Total adjustments
(236,418)
Loss as previously reported
(83,993)
Loss as adjusted
(320,411)
Notes to reconciliation
Provision against other receivables
Included in other receivables in the prior year financial statements was a balance of £230,374, deemed to receivable in respect of a missing vehicle. The directors are of the opinion that the balance is irrecoverable, and it should have been deemed irrecoverable in 2022.
Deferred tax reversal
The deferred tax adjustment is in respect of the adjustment in note 1.
2023-12-312023-01-01false18 November 2024CCH SoftwareCCH Accounts Production 2024.100No description of principal activityP R E BurkeT A De Vargas Machucafalsefalse069974232023-01-012023-12-31069974232023-12-31069974232022-12-3106997423core:NetGoodwill2023-12-3106997423core:IntangibleAssetsOtherThanGoodwill2023-12-3106997423core:NetGoodwill2022-12-3106997423core:IntangibleAssetsOtherThanGoodwill2022-12-3106997423core:PlantMachinery2023-12-3106997423core:FurnitureFittings2023-12-3106997423core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2023-12-3106997423core:PlantMachinery2022-12-3106997423core:FurnitureFittings2022-12-3106997423core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2022-12-3106997423core:CurrentFinancialInstruments2023-12-3106997423core:CurrentFinancialInstruments2022-12-3106997423core:ShareCapital2023-12-3106997423core:ShareCapital2022-12-3106997423core:RevaluationReserve2023-12-3106997423core:RevaluationReserve2022-12-3106997423core:RetainedEarningsAccumulatedLosses2023-12-3106997423core:RetainedEarningsAccumulatedLosses2022-12-3106997423core:RevaluationReservecore:PriorPeriodIncreaseDecrease2021-12-3106997423core:RetainedEarningsAccumulatedLossescore:PriorPeriodIncreaseDecrease2021-12-3106997423core:ShareCapital2021-12-3106997423core:RevaluationReserve2021-12-3106997423core:RetainedEarningsAccumulatedLosses2021-12-3106997423bus:Director12023-01-012023-12-3106997423core:RetainedEarningsAccumulatedLosses2022-01-012022-12-31069974232022-01-012022-12-3106997423core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3106997423core:RevaluationReserve2023-01-012023-12-3106997423core:Goodwill2023-01-012023-12-3106997423core:IntangibleAssetsOtherThanGoodwill2023-01-012023-12-3106997423core:PlantMachinery2023-01-012023-12-3106997423core:FurnitureFittings2023-01-012023-12-3106997423core:NetGoodwill2022-12-3106997423core:IntangibleAssetsOtherThanGoodwill2022-12-31069974232022-12-3106997423core:NetGoodwill2023-01-012023-12-3106997423core:PlantMachinery2022-12-3106997423core:FurnitureFittings2022-12-3106997423core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2022-12-3106997423core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2023-01-012023-12-3106997423core:WithinOneYear2023-12-3106997423core:WithinOneYear2022-12-3106997423bus:PrivateLimitedCompanyLtd2023-01-012023-12-3106997423bus:SmallCompaniesRegimeForAccounts2023-01-012023-12-3106997423bus:FRS1022023-01-012023-12-3106997423bus:AuditExemptWithAccountantsReport2023-01-012023-12-3106997423bus:Director22023-01-012023-12-3106997423bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP