Company registration number 06997408 (England and Wales)
HERO EVENTS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
HERO EVENTS LIMITED
CONTENTS
Page
Statement of financial position
1
Statement of changes in equity
2
Notes to the financial statements
3 - 8
HERO EVENTS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
as restated
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
4
396,602
458,133
Current assets
Trade and other receivables
6
6,215,369
4,005,907
Investments
7
193,150
1,880,785
Cash and cash equivalents
240,169
145,702
6,648,688
6,032,394
Current liabilities
8
(8,100,342)
(6,449,073)
Net current liabilities
(1,451,654)
(416,679)
Net (liabilities)/assets
(1,055,052)
41,454
Equity
Called up share capital
9
1,601,000
1,601,000
Retained earnings
(2,656,052)
(1,559,546)
Total equity
(1,055,052)
41,454
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 member has 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 number 06997408 (England and Wales)
HERO EVENTS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Share capital
Retained earnings
Total
£
£
£
As restated for the period ended 31 December 2022:
Balance at 1 January 2022
1,601,000
(41,571)
1,559,429
Prior year adjustment
-
(50,000)
(50,000)
As restated
1,601,000
(91,571)
1,509,429
Year ended 31 December 2022:
Loss and total comprehensive income
-
(1,467,975)
(1,467,975)
Balance at 31 December 2022
1,601,000
(1,559,546)
41,454
Year ended 31 December 2023:
Loss and total comprehensive income
-
(1,096,506)
(1,096,506)
Balance at 31 December 2023
1,601,000
(2,656,052)
(1,055,052)
HERO EVENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
1
Accounting policies
Company information
Hero Events 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
Going concern
At the balance sheet date, the company had net current liabilities of £1,451,654 (2022: restated to £416,679). The company has access to support from the parent company and shareholders in order to meet the day to day requirements of running the company. Ttruehe directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Therefore, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Revenue
Revenue relates to trading income which comprised of event entry income, sponsorship and commissions. Revenue also consists of income from insurance pay outs in relation to the cancellation of events. Revenue is recognised when the service is performed to the extent that it is probable that economic benefits will flow into the Company and excludes value added tax.
1.4
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:
Land and buildings Leasehold
10 straight line over the life of the asset
Fixtures, fittings & equipment
20% straight line
Computer 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.
1.5
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.
HERO EVENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.6
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.
Other financial assets
Other financial assets, including bonds, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through the statement of income, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that
occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the statement of income.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in the statement of income.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 EVENTS 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 and loans from fellow group companies, 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.7
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.
1.8
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
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.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.10
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.11
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.
HERO EVENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
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
18
19
4
Property, plant and equipment
Land and buildings Leasehold
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
£
Cost
At 1 January 2023
496,769
94,575
89,864
681,208
Additions
16,627
5,110
21,737
At 31 December 2023
496,769
111,202
94,974
702,945
Depreciation and impairment
At 1 January 2023
123,065
43,032
56,978
223,075
Depreciation charged in the year
49,677
19,557
14,034
83,268
At 31 December 2023
172,742
62,589
71,012
306,343
Carrying amount
At 31 December 2023
324,027
48,613
23,962
396,602
At 31 December 2022
373,704
51,543
32,886
458,133
5
Financial instruments
2023
2022
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
193,150
1,880,785
HERO EVENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
6
Trade and other receivables
2023
2022
£
£
Amounts falling due within one year:
Trade receivables
12,009
11,713
Amounts owed by parent undertaking
4,388,761
2,534,784
Other receivables
1,814,599
1,459,410
6,215,369
4,005,907
7
Current asset investments
2023
2022
£
£
Other investments
193,150
1,880,785
8
Current liabilities
2023
2022
£
£
Trade payables
362,530
162,855
Taxation and social security
45,010
15,335
Other payables
7,692,802
6,270,883
8,100,342
6,449,073
9
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,601,000
1,601,000
1,601,000
1,601,000
10
Financial commitments, guarantees and contingent liabilities
The company is the sole member of Endurance Rally Association Limited, a company limited by guarantee. The company has provided a guarantee up to £1 over the debts, liabilities, costs, charges and expenses of Endurance Rally Association Limited.
Hero Events Limited is one of the several entities to have provided Heritage Motoring Group Limited, the parent company, 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.
HERO EVENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
11
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
1,066,992
964,166
12
Prior period adjustment
Reconciliation of changes in equity
1 January
31 December
2022
2022
Notes
£
£
Adjustments to prior year
Provision for accrued expenses
1
-
(253,219)
Provision against other receivables
2
(50,000)
(50,000)
Total adjustments
(50,000)
(303,219)
Equity as previously reported
1,559,429
344,673
Equity as adjusted
1,509,429
41,454
Analysis of the effect upon equity
Retained earnings
(50,000)
(303,219)
Reconciliation of changes in loss for the previous financial period
2022
Notes
£
Adjustments to prior year
Provision for accrued expenses
1
(253,219)
Provision against other receivables
2
-
Loss as previously reported
(1,214,756)
Loss as adjusted
(1,467,975)
Notes to reconciliation
Provision for accrued expenses
In the prior year, expenses of £253,219 were incurred but not included within the financial statements. These expenses should have been included as accrued expenses in 2022.
Provision against other receivables
Included in other receivables in a prior year's financial statements was a balance of £50,000, deemed to be receivable in respect of expenses incurred towards a settlement claim. The directors are of the opinion that the balance is irrecoverable, and it should have been deemed irrecoverable in 2021.
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