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REGISTERED NUMBER: 11973450 (England and Wales)








FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2024

FOR

HATCH DIGITAL SKILLS LTD

HATCH DIGITAL SKILLS LTD (REGISTERED NUMBER: 11973450)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024










Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 4


HATCH DIGITAL SKILLS LTD

COMPANY INFORMATION
FOR THE YEAR ENDED 31 MAY 2024







DIRECTORS: G Ferro
A G Metcalfe





REGISTERED OFFICE: 167-169 Great Portland Street
Fifth Floor
London
W1W5PF





REGISTERED NUMBER: 11973450 (England and Wales)





ACCOUNTANTS: Carter & Coley
Chartered Accountants
3 Durrant Road
Bournemouth
Dorset
BH2 6NE

HATCH DIGITAL SKILLS LTD (REGISTERED NUMBER: 11973450)

BALANCE SHEET
31 MAY 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 4 10,000 43,333
Tangible assets 5 1,392 2,368
11,392 45,701

CURRENT ASSETS
Debtors 6 19,293 114,599
Cash at bank 12,233 40,013
31,526 154,612
CREDITORS
Amounts falling due within one year 7 3,024,637 2,396,334
NET CURRENT LIABILITIES (2,993,111 ) (2,241,722 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

(2,981,719

)

(2,196,021

)

CREDITORS
Amounts falling due after more than one
year

8

(11,375

)

(19,617

)

PROVISIONS FOR LIABILITIES 10 (629,386 ) (629,386 )
NET LIABILITIES (3,622,480 ) (2,845,024 )

HATCH DIGITAL SKILLS LTD (REGISTERED NUMBER: 11973450)

BALANCE SHEET - continued
31 MAY 2024

2024 2023
Notes £    £    £    £   
CAPITAL AND RESERVES
Called up share capital 785,000 785,000
Retained earnings (4,407,480 ) (3,630,024 )
(3,622,480 ) (2,845,024 )

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 May 2024.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 May 2024 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:
(a)ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 27 November 2024 and were signed on its behalf by:





A G Metcalfe - Director


HATCH DIGITAL SKILLS LTD (REGISTERED NUMBER: 11973450)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024


1. STATUTORY INFORMATION

Hatch Digital Skills Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern
The financial statements have been prepared on a going concern basis as the directors and investors have indicated that they will continue to support the business with sufficient funds to cover the ongoing cashflow needs for a period of at least 12 months from the date of approving these financial statements.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less and accumulated amortisation and any accumulated impairment losses.

Branding is being amortised over its estimated useful life of three years.

Software development is being amortised over its estimated useful life of three years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures and fittings - 33% on cost

Fixed assets are initially recognised at cost.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


HATCH DIGITAL SKILLS LTD (REGISTERED NUMBER: 11973450)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024


2. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 10 (2023 - 11 ) .

4. INTANGIBLE FIXED ASSETS
Software
Branding development Totals
£    £    £   
COST
At 1 June 2023
and 31 May 2024 2,500 310,000 312,500
AMORTISATION
At 1 June 2023 1,042 268,125 269,167
Amortisation for year 833 32,500 33,333
At 31 May 2024 1,875 300,625 302,500
NET BOOK VALUE
At 31 May 2024 625 9,375 10,000
At 31 May 2023 1,458 41,875 43,333

HATCH DIGITAL SKILLS LTD (REGISTERED NUMBER: 11973450)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024


5. TANGIBLE FIXED ASSETS
Fixtures
and
fittings
£   
COST
At 1 June 2023 9,183
Additions 350
Disposals (250 )
At 31 May 2024 9,283
DEPRECIATION
At 1 June 2023 6,815
Charge for year 1,076
At 31 May 2024 7,891
NET BOOK VALUE
At 31 May 2024 1,392
At 31 May 2023 2,368

6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 11,715 77,046
Other debtors 2,699 2,662
VAT 988 -
Prepayments and accrued income 3,891 34,891
19,293 114,599

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts 10,234 9,973
Trade creditors 105,117 152,354
Amounts owed to group undertakings 2,810,430 2,086,193
Social security and other taxes 43,988 65,416
VAT - 11,433
Wages control 12,671 -
Pension payable 1,499 2,015
Accruals and deferred income 40,698 68,950
3,024,637 2,396,334

HATCH DIGITAL SKILLS LTD (REGISTERED NUMBER: 11973450)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024


8. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN
ONE YEAR
2024 2023
£    £   
Bank loans - 1-2 years 11,375 10,225
Bank loans - 2-5 years - 9,392
11,375 19,617

9. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Bank loans 21,609 29,590

The bank loan is secured by a fixed and floating charge over the assets of the company.

10. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Other provisions 629,386 629,386

The company has given a guarantee to a funding provider in respect of loans to a fellow subsidiary. The amount due on these loans by the fellow subsidiary to the funding provider as at 31 May 2024 amounted to £629,386 (2023 - £629,386).

The fellow subsidiary entered into administration on 17 November 2022 and it is probable that this guarantee will be called upon.

11. RELATED PARTY DISCLOSURES

TRANSACTIONS WITH GROUP COMPANIES

Non interest bearing loan on which no terms of repayment have been agreed. The amount due to group companies at the balance sheet date amounted to £2,810,430 (2023 - £2,086,193).

12. ULTIMATE PARENT COMPANY

The company's ultimate parent company is Hatch Digital Group Limited (formerly Route2Work Limited), incorporated in England & Wales with company number 10299571.

HATCH DIGITAL SKILLS LTD (REGISTERED NUMBER: 11973450)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024


13. SHARE-BASED PAYMENT TRANSACTIONS

On 1 June 2021 the company's parent company granted 70,500 share options under an Enterprise Management Incentive scheme at a weighted average exercise price of 0.01p per share. On 23 January 2024 a further 29,639 options were granted at a weighted average exercise price of 0.01p per share.

During the current year, 37,264 options were forfeited (2023 - 14,604). At 31 May 2024 and 31 May 2023 no options had been exercised. As at 31 May 2024, 48,271 (2023 - 55,896) options were outstanding. No amounts have been reflected in the accounts on the basis that any adjustment would not be material.

On 1 June 2021 the company's parent company granted 25,641 share options under an Unapproved scheme at a weighted average exercise price of 0.01p per share.

During the current year, no options were forfeited (2023 - 7,711). At 31 May 2024 3,830 (31 May 2023, 3,830) of the options had been exercised, with 14,100 (2023 14,100) options remaining outstanding. No amounts have been reflected in the financial statements on the basis that any adjustment would not be material.