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COMPANY REGISTRATION NUMBER: 13409195
Hodkinson Capital Ltd
Financial Statements
31 March 2024
Hodkinson Capital Ltd
Financial Statements
Year ended 31 March 2024
Contents
Page
Strategic report
1
Director's report
2
Independent auditor's report to the members
4
Consolidated statement of comprehensive income
8
Consolidated statement of financial position
9
Company statement of financial position
10
Consolidated statement of changes in equity
11
Company statement of changes in equity
12
Consolidated statement of cash flows
13
Notes to the financial statements
14
Hodkinson Capital Ltd
Strategic Report
Year ended 31 March 2024
The Director considers the performance of the company during 2024 to be satisfactory. The company remains profitable. Karbon 192 Ltd ceased in the year and its assets have been transferred to the Holding Company.
This report was approved by the board of directors on 10 February 2025 and signed on behalf of the board by:
J Hodkinson
Director
Company Secretary
Registered office:
71-75 Shelton Street
London
WC2H 9JQ
Hodkinson Capital Ltd
Director's Report
Year ended 31 March 2024
The director presents his report and the financial statements of the group for the year ended 31 March 2024 .
Director
The director who served the company during the year was as follows:
J Hodkinson
Dividends
Particulars of recommended dividends are detailed in note 12 to the financial statements.
Director's responsibilities statement
The director is responsible for preparing the strategic report, director's report and the financial statements in accordance with applicable law and regulations. Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and the company and the profit or loss of the group for that period. In preparing these financial statements, the director is required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The director is 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. He is 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. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the group and the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the group and the company's auditor is aware of that information. The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
This report was approved by the board of directors on 10 February 2025 and signed on behalf of the board by:
J Hodkinson
Director
Company Secretary
Registered office:
71-75 Shelton Street
London
WC2H 9JQ
Hodkinson Capital Ltd
Independent Auditor's Report to the Members of Hodkinson Capital Ltd
Year ended 31 March 2024
Opinion
We have audited the financial statements of Hodkinson Capital Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the consolidated statement of comprehensive income, consolidated statement of financial position, company statement of financial position, consolidated statement of changes in equity, company statement of changes in equity, consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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: - give a true and fair view of the state of the group's and of the parent company's affairs as at 31 March 2024 and of the group's profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.
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 group 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 director's 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 group's or the parent 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 director 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 director is responsible for the other information. 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. In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 the audit:
- the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's 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: - adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or - the parent company financial statements are not in agreement with the accounting records and returns; or - certain disclosures of director's remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of the director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the group's and the parent 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 director either intends to liquidate the group or the parent company or to cease operations, or has 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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general auditing and accounting experience and through discussion with the directors and other management (as required by auditing standards), the polices and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably. Firstly the company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. Secondly, the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statement, for instance through the imposition of fines or litigation. We indemnified areas as those most likely to have such an effect such as anti bribery and certain aspects of company legislation. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to inquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group's internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the director. - Conclude on the appropriateness of the director's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group's or the parent company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. - Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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.
Thomas McManners ACA Bsc ACMI
(Senior Statutory Auditor)
For and on behalf of
TTCA Ltd
Chartered accountants & statutory auditor
269 Farnborough Road
Farnborough
Hampshire
GU14 7LY
10 February 2025
Hodkinson Capital Ltd
Consolidated Statement of Comprehensive Income
Year ended 31 March 2024
2024
2023
Note
£
£
Turnover
4
4,712,828
41,362,467
Cost of sales
2,622,952
12,388,793
------------
-------------
Gross profit
2,089,876
28,973,674
Administrative expenses
476,832
41,478
------------
-------------
Operating profit
5
1,613,044
28,932,196
Income from other fixed asset investments
9
2,873,201
1,239,125
Other interest receivable and similar income
786,732
4,801
Interest payable and similar expenses
10
114,594
125,560
------------
-------------
Profit before taxation
5,158,383
30,050,562
Tax on profit
11
1,254,323
5,675,873
------------
-------------
Profit for the financial year
3,904,060
24,374,689
------------
-------------
Business combination in year
34,484,127
------------
-------------
Total comprehensive income for the year
3,904,060
58,858,816
------------
-------------
All the activities of the group are from continuing operations.
Hodkinson Capital Ltd
Consolidated Statement of Financial Position
31 March 2024
2024
2023
Note
£
£
Fixed assets
Tangible assets
13
4,904,409
4,904,409
Investments
14
36,152,544
31,351,758
-------------
-------------
41,056,953
36,256,167
Current assets
Stocks
15
528,488
Debtors
16
234,281
1,009,887
Cash at bank and in hand
20,720,832
24,049,123
-------------
-------------
20,955,113
25,587,498
Creditors: amounts falling due within one year
17
54,613
496,287
-------------
-------------
Net current assets
20,900,500
25,091,211
-------------
-------------
Total assets less current liabilities
61,957,453
61,347,378
Creditors: amounts falling due after more than one year
18
3,283,288
3,283,288
Provisions
Taxation including deferred tax
19
735,208
169,891
-------------
-------------
Net assets
57,938,957
57,894,199
-------------
-------------
Capital and reserves
Called up share capital
23
100
100
Other reserves, including the fair value reserve
24
34,484,127
34,484,127
Profit and loss account
24
23,454,730
23,409,972
-------------
-------------
Shareholders funds
57,938,957
57,894,199
-------------
-------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 10 February 2025 , and are signed on behalf of the board by:
J Hodkinson
Director
Company registration number: 13409195
Hodkinson Capital Ltd
Company Statement of Financial Position
31 March 2024
2024
2023
Note
£
£
Fixed assets
Tangible assets
13
6,698
Investments
14
36,152,744
37,100
-------------
--------
36,159,442
37,100
Current assets
Debtors
16
85,058
Cash at bank and in hand
20,622,560
20,865,499
-------------
-------------
20,622,560
20,950,557
Creditors: amounts falling due within one year
17
600,568
878
-------------
-------------
Net current assets
20,021,992
20,949,679
-------------
-------------
Total assets less current liabilities
56,181,434
20,986,779
Provisions
Taxation including deferred tax
19
735,208
-------------
-------------
Net assets
55,446,226
20,986,779
-------------
-------------
Capital and reserves
Called up share capital
23
100
100
Profit and loss account
24
55,446,126
20,986,679
-------------
-------------
Shareholders funds
55,446,226
20,986,779
-------------
-------------
The profit for the financial year of the parent company was £ 38,318,749 (2023: £ 21,951,396 ).
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 10 February 2025 , and are signed on behalf of the board by:
J Hodkinson
Director
Company registration number: 13409195
Hodkinson Capital Ltd
Consolidated Statement of Changes in Equity
Year ended 31 March 2024
Called up share capital
Other reserves, including the fair value reserve
Profit and loss account
Total
£
£
£
£
At 1 April 2022
100
( 717)
( 617)
Profit for the year
24,374,689
24,374,689
Other comprehensive income for the year:
Business combination in year
34,484,127
34,484,127
----
-------------
-------------
-------------
Total comprehensive income for the year
34,484,127
24,374,689
58,858,816
Dividends paid and payable
12
( 964,000)
( 964,000)
----
-------------
-------------
-------------
Total investments by and distributions to owners
( 964,000)
( 964,000)
At 31 March 2023
100
34,484,127
23,409,972
57,894,199
Profit for the year
3,904,060
3,904,060
----
-------------
-------------
-------------
Total comprehensive income for the year
3,904,060
3,904,060
Dividends paid and payable
12
( 3,859,302)
( 3,859,302)
----
----
------------
------------
Total investments by and distributions to owners
( 3,859,302)
( 3,859,302)
----
-------------
-------------
-------------
At 31 March 2024
100
34,484,127
23,454,730
57,938,957
----
-------------
-------------
-------------
Hodkinson Capital Ltd
Company Statement of Changes in Equity
Year ended 31 March 2024
Called up share capital
Profit and loss account
Total
£
£
£
At 1 April 2022
100
( 717)
( 617)
Profit for the year
21,951,396
21,951,396
----
-------------
-------------
Total comprehensive income for the year
21,951,396
21,951,396
Dividends paid and payable
12
( 964,000)
( 964,000)
----
-------------
-------------
Total investments by and distributions to owners
( 964,000)
( 964,000)
At 31 March 2023
100
20,986,679
20,986,779
Profit for the year
38,318,749
38,318,749
----
-------------
-------------
Total comprehensive income for the year
38,318,749
38,318,749
Dividends paid and payable
12
( 3,859,302)
( 3,859,302)
----
------------
------------
Total investments by and distributions to owners
( 3,859,302)
( 3,859,302)
----
-------------
-------------
At 31 March 2024
100
55,446,126
55,446,226
----
-------------
-------------
Hodkinson Capital Ltd
Consolidated Statement of Cash Flows
Year ended 31 March 2024
2024
2023
£
£
Cash flows from operating activities
Profit for the financial year
3,904,060
24,374,689
Adjustments for:
Depreciation of tangible assets
4,860
Income from other fixed asset investments
( 2,873,201)
( 1,239,125)
Other interest receivable and similar income
( 786,732)
( 4,801)
Interest payable and similar expenses
114,594
125,560
Tax on profit
1,254,323
5,631,939
Accrued expenses
13,252
9,274
Changes in:
Stocks
528,488
233,394
Trade and other debtors
775,256
282,841
Trade and other creditors
( 198,575)
191,500
------------
-------------
Cash generated from operations
2,731,465
29,610,131
Interest paid
( 114,594)
( 125,560)
Interest received
786,732
4,801
Tax paid
( 945,001)
( 6,263,573)
------------
-------------
Net cash from operating activities
2,458,602
23,225,799
------------
-------------
Cash flows from investing activities
Purchase of tangible assets
( 9,717)
Purchases of other investments
( 13,271,588)
( 13,791,618)
Proceeds from sale of other investments
10,828,375
4,782,260
Dividends received
515,628
386,261
Other investing cash flow adjustment
10,420,127
-------------
-------------
Net cash (used in)/from investing activities
( 1,927,585)
1,787,313
-------------
-------------
Cash flows from financing activities
Proceeds from borrowings
( 6)
Dividends paid
( 3,859,302)
( 964,000)
-------------
-------------
Net cash used in financing activities
( 3,859,308)
( 964,000)
-------------
-------------
Net (decrease)/increase in cash and cash equivalents
( 3,328,291)
24,049,112
Cash and cash equivalents at beginning of year
24,049,123
11
-------------
-------------
Cash and cash equivalents at end of year
20,720,832
24,049,123
-------------
-------------
Hodkinson Capital Ltd
Notes to the Financial Statements
Year ended 31 March 2024
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 71-75 Shelton Street, London, WC2H 9JQ.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Disclosure exemptions
The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following reduced disclosures available under FRS 102: (a) No cash flow statement has been presented for the company. (b) Disclosures in respect of financial instruments have not been presented. (c) Disclosures in respect of share-based payments have not been presented. (d) No disclosure has been given for the aggregate remuneration of key management personnel.
Consolidation
The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not included its individual statement of comprehensive income.
Judgements and key sources of estimation uncertainty
The preparation of these financial statements in conformity with United Kingdom Generally Accepted Accounting Practice requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include accrued income and deferred income.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
-
33% straight line
Investment property
Investment property is initially recorded at cost, which includes purchase price and any directly attributable expenditure. Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss.
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Investments in associates
Investments in associates are accounted for using the equity method of accounting, whereby the investment is initially recognised at the transaction price and subsequently adjusted to reflect the group's share of the profit or loss, other comprehensive income and equity of the associate.
Investments in joint ventures
Investments in joint ventures are accounted for using the equity method of accounting, whereby the investment is initially recognised at the transaction price and subsequently adjusted to reflect the group's share of the profit or loss, other comprehensive income and equity of the joint venture.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
2024
2023
£
£
Sale of goods
4,464,539
41,129,641
Rendering of services
248,289
232,826
------------
-------------
4,712,828
41,362,467
------------
-------------
The turnover is attributable to the one principal activity of the group. An analysis of turnover by the geographical markets that substantially differ from each other is given below:
2024
2023
£
£
United Kingdom
248,289
232,826
Overseas
4,464,539
41,129,641
------------
-------------
4,712,828
41,362,467
------------
-------------
5. Operating loss
Operating profit or loss is stated after charging/crediting:
2024
2023
£
£
Depreciation of tangible assets
4,860
Foreign exchange differences
286,698
( 278,554)
---------
---------
6. Auditor's remuneration
2024
2023
£
£
Fees payable for the audit of the financial statements
16,348
8,179
--------
-------
7. Staff costs
The average number of persons employed by the group during the year, including the director, amounted to:
2024
2023
No.
No.
Production staff
2
1
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
35,033
105,500
Social security costs
2,298
2,181
Other pension costs
380
1,650
--------
---------
37,711
109,331
--------
---------
8. Director's remuneration
The director's aggregate remuneration in respect of qualifying services was:
2024
2023
£
£
Remuneration
3,033
9,100
-------
-------
9. Income from other fixed asset investments
2024
2023
£
£
Dividends from other fixed asset investments
515,628
386,261
Gain from disposal of fixed asset investments
173,222
179,517
Gain on fair value adjustment on fixed asset investments
2,184,351
673,347
------------
------------
2,873,201
1,239,125
------------
------------
10. Interest payable and similar expenses
2024
2023
£
£
Interest payable
114,594
114,580
Other interest payable and similar charges
10,980
---------
---------
114,594
125,560
---------
---------
11. Tax on profit
Major components of tax expense
2024
2023
£
£
Current tax:
UK current tax expense
689,006
5,505,982
Deferred tax:
Origination and reversal of timing differences
1,924,445
( 849,455)
Other component of deferred tax expense (income)
( 1,359,128)
1,019,346
------------
------------
Total deferred tax
565,317
169,891
------------
------------
Tax on profit
1,254,323
5,675,873
------------
------------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is lower than (2023: lower than) the standard rate of corporation tax in the UK of 25 % (2023: 19 %).
2024
2023
£
£
Profit on ordinary activities before taxation
5,158,383
30,050,562
------------
-------------
Profit on ordinary activities by rate of tax
1,289,596
5,709,607
Effect of capital allowances and depreciation
( 295)
Effect of revenue exempt from tax
( 63,801)
Utilisation of tax losses
( 179)
Impact of fair value movements
18,634
( 33,439)
Disposal of investments adjustment
10,073
------------
-------------
Tax on profit
1,254,323
5,675,873
------------
-------------
12. Dividends
2024
2023
£
£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
3,859,302
964,000
------------
---------
13. Tangible assets
Group
Land and buildings
Plant and machinery
Total
£
£
£
Cost
At 1 April 2023 and 31 March 2024
4,897,711
14,581
4,912,292
------------
--------
------------
Depreciation
At 1 April 2023 and 31 March 2024
7,883
7,883
------------
--------
------------
Carrying amount
At 31 March 2024
4,897,711
6,698
4,904,409
------------
--------
------------
At 31 March 2023
4,897,711
6,698
4,904,409
------------
--------
------------
Company
Plant and machinery
Total
£
£
Cost
At 1 April 2023
Additions
6,698
6,698
-------
-------
At 31 March 2024
6,698
6,698
-------
-------
Depreciation
At 1 April 2023 and 31 March 2024
-------
-------
Carrying amount
At 31 March 2024
6,698
6,698
-------
-------
At 31 March 2023
-------
-------
The properties have been valued by the director, and it is the director's opinion that the properties show no material change in value from the initial cost price.
14. Investments
Group
Other investments other than loans
£
Cost
At 1 April 2023
31,351,758
Additions
13,271,588
Disposals
( 10,655,153)
Revaluations
2,184,351
-------------
At 31 March 2024
36,152,544
-------------
Impairment
At 1 April 2023 and 31 March 2024
-------------
Carrying amount
At 31 March 2024
36,152,544
-------------
At 31 March 2023
31,351,758
-------------
Company
Shares in group undertakings
Other investments other than loans
Total
£
£
£
Cost
At 1 April 2023
200
36,900
37,100
Additions
40,255,845
40,255,845
Disposals
( 6,071,948)
( 6,071,948)
Revaluations
1,931,747
1,931,747
----
-------------
-------------
At 31 March 2024
200
36,152,544
36,152,744
----
-------------
-------------
Impairment
At 1 April 2023 and 31 March 2024
----
-------------
-------------
Carrying amount
At 31 March 2024
200
36,152,544
36,152,744
----
-------------
-------------
At 31 March 2023
200
36,900
37,100
----
-------------
-------------
Subsidiaries, associates and other investments
Details of the investments in which the group and the parent company have an interest of 20% or more are as follows:
Registered office
Class of share
Percentage of shares held
Subsidiary undertakings
Karbon 192 Ltd
71-75 Shelton Street
Ordinary
100
Covent Garden
London
WC2H 9JQ
Springs and Berkley Ltd
71-75 Shelton Street
Ordinary
100
Covent Garden
London
WC2H 9JQ
15. Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
528,488
----
---------
----
----
16. Debtors
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade debtors
987,283
Amounts owed by group undertakings
85,058
Prepayments and accrued income
350
Corporation tax repayable
232,761
Other debtors
1,520
22,254
---------
------------
----
--------
234,281
1,009,887
85,058
---------
------------
----
--------
17. Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade creditors
190,706
Amounts owed to group undertakings
441,977
Accruals and deferred income
31,694
19,036
7,818
678
Corporation tax
255,995
150,573
Social security and other taxes
176
2,616
Director loan accounts
19,684
19,690
200
200
Other creditors
3,059
8,244
--------
---------
---------
----
54,613
496,287
600,568
878
--------
---------
---------
----
18. Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans and overdrafts
3,283,288
3,283,288
------------
------------
----
----
19. Provisions
Group
Deferred tax (note 20)
£
At 1 April 2023
169,891
Additions
735,208
Charge against provision
( 169,891)
---------
At 31 March 2024
735,208
---------
Company
Deferred tax (note 20)
£
At 1 April 2023
Additions
735,208
---------
At 31 March 2024
735,208
---------
20. Deferred tax
The deferred tax included in the statement of financial position is as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Included in provisions (note 19)
735,208
169,891
735,208
---------
---------
---------
----
The deferred tax account consists of the tax effect of timing differences in respect of:
Group
Company
2024
2023
2024
2023
£
£
£
£
Fair value adjustment of financial assets
735,208
169,891
735,208
---------
---------
---------
----
21. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 380 (2023: £ 1,578 ).
22. Financial instruments
The carrying amount for each category of financial instrument is as follows:
Financial assets measured at fair value through profit or loss
Group
Company
2024
2023
2024
2023
£
£
£
£
Financial assets measured at fair value through profit or loss
36,152,544
31,314,858
36,152,544
-------------
-------------
-------------
----
23. Called up share capital
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Ordinary shares of £ 1 each
100
100
100
100
----
----
----
----
24. Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses. Other Reserves-Merger Relief Reserve on business combinations
25. Analysis of changes in net debt
At 1 Apr 2023
Cash flows
At 31 Mar 2024
£
£
£
Cash at bank and in hand
24,049,123
(3,328,291)
20,720,832
Debt due within one year
(19,690)
6
(19,684)
Debt due after one year
(3,283,288)
(3,283,288)
-------------
------------
-------------
20,746,145
( 3,328,285)
17,417,860
-------------
------------
-------------
26. Related party transactions
Company
On 22 April 2022, the company purchased the shares in both Karbon 192 Ltd and Springs and Berkley Ltd, companies registered in England from Joseph Hodkinson, the director. These were done on a share for share transfer. the total value of the assets transferred amounted to £34,484,127.
27. Controlling party
The ultimate controlling party is Joseph Hodkinson, the director.