Company registration number SC493523 (Scotland)
HORIZON (GP) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
HORIZON (GP) LIMITED
COMPANY INFORMATION
Directors
Mr H S Griffiths
Mr P Casey
Company number
SC493523
Registered office
5 South Charlotte Street
Edinburgh
EH2 4AN
Auditor
Littlestone Golding
17 Cavendish Square
London
W1G 0PH
HORIZON (GP) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 22
HORIZON (GP) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -

The directors present the strategic report for the year ended 30 April 2024.

Review of the business

As shown in the profit and loss account turnover has increased to £537,693 from £520,302 which is due to an increase in annual management fees receivable from the limited partnerships arising from their continued profitability.

 

Operating profit, which represents 11.9% of turnover for the reporting period, is reported at £64,049 for the period under review, compared to £181,262 for the previous period. The reduction is due to an increase in administrative expenses for the period.

 

The company's balance sheet shows that at the reporting date it had net current assets of £912,787 compared to £1,034,836 at the comparative reporting date, and net assets of £894,691 compared to £972,941at the comparative reporting date.

Principal risks and uncertainties

The directors consider that the principal risks and uncertainties facing the company are potential decreases in its fee income resulting from adverse performance or decline in asset values in the limited partnerships in which it is the general partner.

Key performance indicators

Management use a range of financial performance indicators to monitor and manage the business as set out below.

Promoting the success of the company

The directors believe that they have acted in the way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole, having regard to stakeholders and matters set out in Section 172(1)(a-f) of the Companies Act 2006 in the decisions taken during the year.

On behalf of the board

Mr H S Griffiths
Director
29 August 2024
HORIZON (GP) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -

The directors present their annual report and financial statements for the year ended 30 April 2024.

Principal activities

The principal activity of the company continued to be that of a FCA regulated general partner to two limited partnerships.

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr H S Griffiths
Mr P Casey
Qualifying third party indemnity provisions

The company's Articles of Association provide, subject to the provisions of UK legislation, an indemnity for directors and officers of the company in respect of liabilities they may incur in defending certain proceedings against them.

Employee involvement

The company recognises that the long-term success of the business relies on effective engagement with its employees. Management consult with and brief all employees on a regular basis in relation to the company's operations and matters of concern related to employees, so that their views can be taken into account on matters which affect their interests. Employees are encouraged to contribute to the company's success through initiatives such as suggestion schemes.

Business relationships

The company manages relationships with its customers, suppliers, and those individuals and bodies that it has dealings with as closely as possible to ensure the services provided meet the company’s high standards.

Future developments

The company intends to continue operating in the same areas of activity.

Auditor

The auditor, Littlestone Golding, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

HORIZON (GP) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -
Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr H S Griffiths
Director
29 August 2024
HORIZON (GP) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HORIZON (GP) LIMITED
- 4 -
Opinion

We have audited the financial statements of Horizon (GP) Limited (the 'company') for the year ended 30 April 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

HORIZON (GP) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HORIZON (GP) LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

HORIZON (GP) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HORIZON (GP) LIMITED
- 6 -

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Michael Wright FCA
Senior Statutory Auditor
For and on behalf of Littlestone Golding
29 August 2024
Chartered Accountants
Statutory Auditor
17 Cavendish Square
London
W1G 0PH
HORIZON (GP) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 APRIL 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
537,693
520,302
Cost of sales
(3,878)
(6,169)
Gross profit
533,815
514,133
Administrative expenses
(469,766)
(332,871)
Operating profit
4
64,049
181,262
Interest receivable and similar income
7
-
0
1,844
Interest payable and similar expenses
8
(12,373)
(17,678)
Amounts written off investments
9
(116,883)
-
(Loss)/profit before taxation
(65,207)
165,428
Tax on (loss)/profit
10
(13,043)
(33,064)
(Loss)/profit for the financial year
(78,250)
132,364

The profit and loss account has been prepared on the basis that all operations are continuing operations.

HORIZON (GP) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 8 -
2024
2023
£
£
(Loss)/profit for the year
(78,250)
132,364
Other comprehensive income
-
-
Total comprehensive income for the year
(78,250)
132,364
HORIZON (GP) LIMITED
BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
1,096
-
0
Investments
12
12,500
12,500
13,596
12,500
Current assets
Debtors
14
1,193,251
1,083,539
Cash at bank and in hand
214,940
242,086
1,408,191
1,325,625
Creditors: amounts falling due within one year
15
(495,404)
(290,789)
Net current assets
912,787
1,034,836
Total assets less current liabilities
926,383
1,047,336
Creditors: amounts falling due after more than one year
16
(31,692)
(74,395)
Net assets
894,691
972,941
Capital and reserves
Called up share capital
19
125,000
125,000
Profit and loss reserves
769,691
847,941
Total equity
894,691
972,941
The financial statements were approved by the board of directors and authorised for issue on 29 August 2024 and are signed on its behalf by:
Mr H S Griffiths
Director
Company registration number SC493523 (Scotland)
HORIZON (GP) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 May 2022
125,000
715,577
840,577
Year ended 30 April 2023:
Profit and total comprehensive income for the year
-
132,364
132,364
Balance at 30 April 2023
125,000
847,941
972,941
Year ended 30 April 2024:
Loss and total comprehensive income for the year
-
(78,250)
(78,250)
Balance at 30 April 2024
125,000
769,691
894,691
HORIZON (GP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 11 -
1
Accounting policies
Company information

Horizon (GP) Limited is a private company limited by shares incorporated in Scotland. The registered office is 5 South Charlotte Street, Edinburgh, EH2 4AN. The company's place of business is 16 South Road, Chorleywood, Hertfordshire, WD3 5AR.

1.1
Accounting convention

These financial statements have been prepared in accordance with applicable accounting standards and in compliance with 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.

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 £1.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Horizon Infrastructure Partnership Limited. These consolidated financial statements are available from Companies House.

1.2
Going concern

Atruet 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.

1.3
Turnover

Turnover represents management and other fees receivable from the company's activity as the general partner to two limited partnerships.

 

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates. Turnover is recognised in the profit and loss account in the period in which it is earned.

HORIZON (GP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 12 -
1.4
Tangible fixed assets

Tangible fixed assets 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:

Fixtures and fittings
Over 3 to 4 years 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 profit or loss.

1.5
Fixed asset 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.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

HORIZON (GP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 13 -
1.7
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.

1.8
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 balance sheet 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 debtors 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 investments in equity instruments which are not subsidiaries, associates or joint ventures, 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 profit and loss, 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 profit or loss.

 

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 profit or loss.

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.

HORIZON (GP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 14 -
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 creditors, 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 creditors 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
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.

1.10
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 profit and loss account 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.

HORIZON (GP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 15 -
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 profit and loss account, 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.

1.11
Employee benefits

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.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
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.

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.

HORIZON (GP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 16 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Impairment of group debtors

In preparing the financial statements the directors have made estimates of the recoverability of loans to group companies which based on the estimated recoverability of property loans made by those companies. The directors have considered the values of the development properties in respect of which funds have been advanced and costs to complete the development works. The impairment recognised at 30 April 2024 amounts to £116,883 (2023: £nil).

3
Turnover and other revenue

An analysis of the company's turnover, which wholly arises from the rendering of services, is as follows:

 

2024
2023
£
£
Turnover analysed by class of business
Management and other fees receivable
537,693
520,302
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
537,693
520,302
2024
2023
£
£
Other revenue
Interest income
-
1,844

Grant income represents amounts receivable under the Government's Coronavirus Job Retention Scheme and a Business Interruption payment from the Government in relation to the company's Coronavirus Business Interruption Loan.

4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
243
145
Operating lease charges
1,380
(2,443)
Fees payable to the company's auditor for the audit of the company's financial statements
2,410
2,335
Fees payable to the company's auditor for taxation compliance services
685
665
Fees payable to the company's auditor for all other non-audit services
5,974
5,251
HORIZON (GP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 17 -
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
6
6

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
152,827
147,400
Social security costs
7,453
7,529
Pension costs
121,321
121,321
281,601
276,250
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
51,400
50,950
Company pension contributions to defined contribution schemes
60,000
40,000
111,400
90,950

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).

7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
-
0
1,844
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
12,373
17,678
HORIZON (GP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 18 -
9
Amounts written off investments
2024
2023
£
£
Amounts written off loans to group undertakings
(116,883)
-

The amounts written off loans to subsidiary undertakings represents the expected shortfall in the amount recoverable on those loans.

10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
13,043
33,064

The main rate of corporation tax changed from 19% to 25% with effect from 1 April 2023.

The actual charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
(Loss)/profit before taxation
(65,207)
165,428
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
(16,302)
31,431
Tax effect of expenses that are not deductible in determining taxable profit
29,619
769
Change in unrecognised deferred tax assets
(274)
28
Tax at marginal rate
-
0
836
Taxation charge for the year
13,043
33,064
HORIZON (GP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 19 -
11
Tangible fixed assets
Fixtures and fittings
£
Cost
At 1 May 2023
4,099
Additions
1,339
At 30 April 2024
5,438
Depreciation and impairment
At 1 May 2023
4,099
Depreciation charged in the year
243
At 30 April 2024
4,342
Carrying amount
At 30 April 2024
1,096
At 30 April 2023
-
0
12
Fixed asset investments
2024
2023
£
£
Unlisted investments
12,500
12,500
13
Significant undertakings

The company also has significant holdings in undertakings which are not consolidated:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Horizon Housing REIT plc
Eden House, Reynolds Road, Beaconsfield, HP9 2FL
Restricted shares
100.00
-
The aggregate capital and reserves and the result for the year of significant undertakings noted above was as follows:
Name of undertaking
Profit/(Loss)
Capital and Reserves
£
£
Horizon Housing REIT plc
-
12,500
HORIZON (GP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 20 -
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
845,849
716,316
Amounts owed by undertakings in which the company has a participating interest
11,038
4,055
Other debtors
288,153
317,153
Prepayments and accrued income
48,211
46,015
1,193,251
1,083,539
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
17
42,703
37,542
Amounts owed to group undertakings
12,592
-
0
Corporation tax
13,043
33,064
Other taxation and social security
5,587
2,470
Other creditors
225,997
112,773
Accruals and deferred income
195,482
104,940
495,404
290,789
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
31,692
74,395
17
Loans and overdrafts
2024
2023
£
£
Bank loans
74,395
111,937
Payable within one year
42,703
37,542
Payable after one year
31,692
74,395

The company's bank loan is secured by a limited guarantee given by the UK government under the Coronavirus Business Interruption Loan Scheme.

The company's bank loan bears interest at 12.99% per annum and is repayable over a five year term in monthly instalments between January 2022 and December 2025.

The aggregate amount of secured liabilities is £74,395 (2023: £111,937).

HORIZON (GP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 21 -
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
121,321
121,321

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
125,000
125,000
125,000
125,000
20
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sales
2024
2023
£
£
Limited partnerships in which the entity is the general partner
537,693
520,302
Management fees payable
2024
2023
£
£
Entities controlled by key management personnel
50,000
-

Horizon (GP) Limited is the general partner in two limited partnerships, and its powers are regulated by the terms of limited partnership agreements (LPAs). In accordance with the LPAs the company receives management and other fees from the limited partnerships.

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
12,592
-
Limited partnerships in which the entity is the general partner
-
14,400
Entities controlled by key management personnel
187,500
12,500
Key management personnel
106,771
18,490
HORIZON (GP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
20
Related party transactions
(Continued)
- 22 -

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
-
55,355
Fellow group entities
962,732
660,961
Entities over which the entity has control, joint control or significant influence
11,038
4,055
Limited partnerships in which the entity is the general partner
45,221
43,025
Entities controlled by key management personnel
288,153
317,153

The following amounts were recognised as an expense in the period in respect of bad and doubtful debts due from related parties:

2024
2023
£
£
Entities over which the entity has control, joint control or significant influence
116,883
-
21
Ultimate controlling party

The company's parent and ultimate holding company is Horizon Infrastructure Partnership Limited, a company incorporated in England and Wales.

The company's ultimate controlling party is Mr H S Griffiths.

The parent undertaking of the only group to which the company belongs for which group accounts are prepared is Horizon Infrastructure Partnership Limited, whose registered office is Eden House, Reynolds Road, Beaconsfield, HP9 2FL. Group accounts for Horizon Infrastructure Partnership Limited can be obtained from Companies House.

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