Registered number: 09801885
HASCOMBE & VALIANT STUD LIMITED
UNAUDITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 31 MARCH 2024
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HASCOMBE & VALIANT STUD LIMITED
REGISTERED NUMBER: 09801885
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2024
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Page 1
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HASCOMBE & VALIANT STUD LIMITED
REGISTERED NUMBER: 09801885
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 MARCH 2024
The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
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 financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
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Mr A E Oppenheimer
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The notes on pages 3 to 12 form part of these financial statements.
Page 2
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HASCOMBE & VALIANT STUD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Hascombe & Valiant Stud Limited is a private company limited by shares and is registered and incorporated in England and Wales. The registered office is Hascombe Stud, Moulton Road, Cheveley, Suffolk, CB8 9DW.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. 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 following principal accounting policies have been applied:
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. The validity of this assumption is based on the continued support of the directors for the subsequent 12 months. If the directors were to withdraw their support the going concern of the company would need to be reassessed.
Page 3
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HASCOMBE & VALIANT STUD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
∙the Company has transferred the significant risks and rewards of ownership to the buyer;
∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the transaction; and
∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Interest income is recognised in profit or loss using the effective interest method.
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.
Page 4
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HASCOMBE & VALIANT STUD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income 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 income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the following bases.
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Long-term leasehold property
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Reducing balance basis (tractors: 20%)
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Page 5
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HASCOMBE & VALIANT STUD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Biological assets consist of broodmares, stallions and youngstock.
Broodmares bought into the business are initially measured at cost and subsequently measured at cost net of depreciation. Broodmares transferring into biological assets from horses in training stock will be independently valued at the date the mare leaves training and will transfer into biological assets at their market value at that date in line with industry practice. This valuation will become the deemed cost of the broodmare and the horse will subsequently be measured at cost net of depreciation. Any movement in the value of the horse on transfer into biological assets will be recognised through other comprehensive income.
Stallions bought into the business are initially measured at cost and subsequently measured at cost net of depreciation. No transfers are expected from inventory.
Youngstock bought into the business are initially measured at cost and subsequently measured at cost net of depreciation. Foals born into youngstock are valued at their deemed cost of production being their nomination fee plus the costs to keep the mare for the year prior to birth. Youngstock will be transferred to horses in training, within stocks, at the point the date the animal first enters training. An impairment review will be undertaken at the point the youngstock leaves biological assets and any reduction in value will be recognised in profit and loss.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of biological assets over their estimated selling price less costs to sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
Depreciation is recognised so as to write off the cost of assets, less their residual values, over their useful lives on the following bases:
Broodmares Straight line up to 17 years of age (being 4 years to the initial breeding season and 13 years estimated breeding life)
Stallions Over 10 years (excluding rights depreciated over 5 years)
Youngstock Nil
Investments in subsidiaries are measured at cost less accumulated impairment.
Stocks consist of horses in training. All stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
Mares transferring into biological assets at the point they cease training will be independently valued at the date they leave training and will transfer into biological assets at their market value at that date in line with industry practice. Any movement in the value of the horse on transfer into biological assets will be recognised through other comprehensive income.
Youngstock transferring into horses in training will be valued at the lower of cost and net realisable value.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
Page 6
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HASCOMBE & VALIANT STUD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Basic financial assets
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
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The average monthly number of employees, including directors, during the year was 12 (2023 - 13).
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Page 7
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HASCOMBE & VALIANT STUD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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Leasehold land and buildings
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Charge for the year on owned assets
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Charge for the year on financed assets
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The net book value of land and buildings may be further analysed as follows:
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Page 8
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HASCOMBE & VALIANT STUD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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Transfer between biological asset classes
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Charge for the year on owned assets
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Investments in subsidiary companies
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The subsidiary company undertakes the work of a corporate trustee company. The duties undertaken are entirely administrative and the company has no right to a share of any assets in the trusts for which it is a trustee.
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Page 9
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HASCOMBE & VALIANT STUD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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Corporation tax recoverable
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Prepayments and accrued income
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Creditors: amounts falling due within one year
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Other taxes and social security
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Accruals and deferred income
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Page 10
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HASCOMBE & VALIANT STUD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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Charged to profit or loss
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The deferred tax asset is made up as follows:
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Fixed asset timing differences
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Short term timing differences
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Losses and other deductions
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Allotted, called up and fully paid
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21,281 (2023 - 21,281) Ordinary share capital of £0.01 each
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12,500,000 (2023 - 12,500,000) Preference shares of £1.00 each
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The company has one class of ordinary share capital which carries no right to fixed income. Each share entitles the owner to one vote at general meetings of the company. Ordinary shareholders rank below unsecured creditors in the event of a winding up.
The company has one class of preference shares. These shares are accounted for as equity in accordance with the provisions of FRS 102.
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The Company operates a defined contribution pension scheme. The assets are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amount to £22,106 (2023: £20,285). Included in creditors is a balance owed in relation to pension payments of £1,092 (2023: £883).
Page 11
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HASCOMBE & VALIANT STUD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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Related party transactions
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During the year the company entered into the following transactions with related parties:
Sale of goods to directors for £845,000 (2023: £670,000).
Rent expense with entities over which the entity has control, joint control, or significant influence for £135,714 (2023: £115,450).
At the balance sheet date the company reported creditors which included loan accounts with the directors of £2,519,014 (2023: £2,740,737).
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Page 12
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