Company registration number 09691871 (England and Wales)
HORNBEAM PROPERTIES LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
PAGES FOR FILING WITH REGISTRAR
HORNBEAM PROPERTIES LTD
CONTENTS
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 9
HORNBEAM PROPERTIES LTD
STATEMENT OF FINANCIAL POSITION
- 1 -
2024
2023
Notes
£
£
£
£
Non-current assets
Investment properties
4
6,500,000
5,848,851
Investments
5
35,829
35,829
6,535,829
5,884,680
Current assets
Trade and other receivables - deferred tax
563,744
660,116
Trade and other receivables - other
6
29,930
29,237
Cash and cash equivalents
133,357
92,181
727,031
781,534
Current liabilities
7
(5,137,218)
(2,475,930)
Net current liabilities
(4,410,187)
(1,694,396)
Total assets less current liabilities
2,125,642
4,190,284
Non-current liabilities
8
(21,356)
(2,821,458)
Net assets
2,104,286
1,368,826
Equity
Called up share capital
7,399
7,399
Non-distributable profits reserve
(1,691,232)
(1,980,349)
Distributable retained earnings
3,788,119
3,341,776
Total equity
2,104,286
1,368,826
HORNBEAM PROPERTIES LTD
STATEMENT OF FINANCIAL POSITION (CONTINUED)
- 2 -
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 30 June 2024 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 24 November 2024 and are signed on its behalf by:
Miss E M Stubbs
Director
Company Registration No. 09691871
HORNBEAM PROPERTIES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
1
Accounting policies
Company information
Hornbeam Properties Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 5 Redwood Mews, Hannington Road, Clapham, London, SW4 0LJ.
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, modified to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
More than 50% of the company share capital is held by Glass Property Holdings Limited and the remainder held by Redwood Property & Trading Company Limited, both being private companies limited by shares, incorporated in England and Wales.
1.2
Revenue
Revenue represents rents receivable for the letting of investment properties held, net of VAT together with amounts receivable for the recharge of tenants' costs suffered by the company on their behalf.
1.3
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
Unrealised gains and losses recognised on investment property held under the fair value model are shown separately within retained profits as a non-distributable profits reserve. Deferred tax movement in relation to these gains and losses is also separated within this non-distributable profits reserve.
1.4
Non-current investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
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.
HORNBEAM PROPERTIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
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.
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.
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.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.
1.8
Derivatives
The company enters into interest rate swap contracts in order to manage its exposure to interest rate risk.
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. Valuations at the reporting end date are provided by the financial institution that issued the contract. The resulting gain or loss is recognised in profit or loss.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
HORNBEAM PROPERTIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 5 -
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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
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.
1.10
Lease incentive costs are recognised in the profit and loss account straight line over the period to the date of the next rent review where entered into prior to the transition date to FRS 102 and over the whole lease term for those leases entered into since this date.
2
Employees
There were no employees under a contract of employment during the year.
3
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
92,614
80,290
Deferred tax
Origination and reversal of timing differences
96,372
Changes in tax rates
(158,428)
Total deferred tax
96,372
(158,428)
Total tax charge/(credit)
188,986
(78,138)
HORNBEAM PROPERTIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 6 -
4
Investment property
2024
£
Fair value
At 1 July 2023
5,848,851
Additions
265,659
Revaluations
385,490
At 30 June 2024
6,500,000
Investment property comprises Sussex House, Perrymount Road, Haywards Heath purchased in December 2015 and Commercial House, Perrymount Road, Haywards Heath purchased in February 2018. The fair value of the investment property at the balance sheet date has been assessed by the directors on an open market value basis by reference to an after-date exchange of contracts for sale.
5
Fixed asset investments
2024
2023
£
£
Shares in group undertakings and participating interests
35,829
35,829
6
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Trade receivables
16,384
10,057
Other receivables
5,634
6,467
Prepayments and accrued income
7,912
12,713
29,930
29,237
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset
563,744
660,116
Total debtors
593,674
689,353
Prepayments and accrued income include £nil (2023 - £2,245) of amounts due > 1 year.
HORNBEAM PROPERTIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 7 -
7
Current liabilities
2024
2023
£
£
Bank loans
2,804,921
122,722
Payments received on account
111,041
112,121
Trade payables
1,122
Amounts owed to associated companies
2,110,285
2,110,285
Corporation tax
92,614
80,290
Other taxation and social security
2,975
Other payables
6,840
42,565
Accruals and deferred income
11,517
3,850
5,137,218
2,475,930
HORNBEAM PROPERTIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
8
Non-current liabilities
2024
2023
£
£
Bank loans and overdrafts
2,797,581
Trade payables
21,356
23,877
21,356
2,821,458
The bank loan with Principality Building Society is secured by a fixed legal charge over the freehold property known as Sussex House, Perrymount Road, Haywards Heath, RH16 1DN and a floating charge over the Company's property and assets.
Amounts included above which fall due after five years are as follows:
Payable by instalments
-
2,306,693
9
Financial commitments, guarantees and contingent liabilities
A fixed charge dated 30.5.2022 over the shares of Sequoia Hotels Limited, the company's subsidiary, is held by QIB (UK) PLC with whom Sequoia have a murabaha facility.
10
Events after the reporting date
On 9th August 2024 contracts were exchanged for the sale of the company's investment properties.
HORNBEAM PROPERTIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 9 -
11
Related party transactions
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
2,110,285
2,110,285
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
9,359
6,067
Other related parties
400
400