Company registration number SC373059 (Scotland)
HFD PROPERTY GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
HFD PROPERTY GROUP LIMITED
COMPANY INFORMATION
Directors
Mr W D Hill
Mr S Lewis
Company number
SC373059
Registered office
177 Bothwell Street
Glasgow
G2 7ER
Auditor
Johnston Carmichael LLP
227 West George Street
Glasgow
G2 2ND
HFD PROPERTY GROUP LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 25
HFD PROPERTY GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

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

Review of the business

As a result of the Group's long-term reinvestment strategy, HFD Property Group continues to operate profitably following the success of the 177 Bothwell Street development. During the year, the Group focused efforts on managing the development of commercial property within Glasgow City Centre. Much of the current activity within the Group is at the early stages of development, resulting in a decrease in turnover to £476k (2023: £12,225k). This aligns with the Group's medium to long-term strategy, and the board anticipates significant future benefits from the developments currently underway.

Principal risks and uncertainties

 

Revenue risk

The Group has developed key relationships with customers. The Group continues to focus on buildings relationship with existing and potential customers and always performs to a high standard in order to minimise the risk of losing a trading customer.

Liquidity risk

The Group manages its liquidity risk through the day-to-day management of working capital. Forecast and budgets are in place and performance monitored on a regular basis to ensure that cash requirements are met and that liabilities can be paid as the fall due.

Going concern

The directors believe that the Group has adequate resources to continue in operational existence for the foreseeable future and accordingly, the going concern basis has been adopted in preparing the financial statements.

Key performance indicators

The directors use several indicators to monitor and improve the position of the business. These indicators include profitability, cashflow and net assets.

 

KPI

2024

2023

Gross Profit Margin

19%

99%

Cash position

£240k

£1,207k

Net Assets

£50,681

£49,843

 

 

On behalf of the board

Mr W D Hill
Director
17 March 2025
HFD PROPERTY GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -

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

Principal activities

The principal activity of the company and group continued to be that of commercial property development.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a further 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 W D Hill
Mr S Lewis
Post reporting date events

On 29th October 2024, HFD Property Group Limited as a subsidiary of HFD Group Holdings Limited was acquired by HFD Holdco Limited as part of internal restructuring of the business.

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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
Mr W D Hill
Director
17 March 2025
HFD PROPERTY GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

HFD PROPERTY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HFD PROPERTY GROUP LIMITED
- 4 -
Opinion

We have audited the financial statements of HFD Property Group Limited (‘the parent company’) and its subsidiaries (‘the group’) for the year ended 30 June 2024, which comprise the Group Statement of Comprehensive Income, Group Balance Sheet, Company Balance Sheet, Group Statement of Changes in Equity, Company Statement of Changes in Equity, Group Statement of Cash Flows 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 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 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 group's and 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 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 Strategic Report and Directors’ Report other than the financial statements and our auditor’s report thereon. The Directors are responsible for the other information contained within the Strategic Report and Directors’ 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.

 

HFD PROPERTY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HFD PROPERTY GROUP LIMITED
- 5 -

Opinions on other matters prescribed by the Companies Act 2006

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

 

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 their 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 set out on page 4, 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 group’s and 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 Directors either intend to liquidate the group or parent 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.

 

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.

 

HFD PROPERTY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HFD PROPERTY GROUP LIMITED
- 6 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

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 assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations by considering their experience, past performance and support available.

 

All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

 

We obtained an understanding of the legal and regulatory frameworks that are applicable to the group and the parent company and the sector in which they operate, focusing on those provisions that had a direct effect on the determination of material amounts and the disclosures in the financial statements. The most relevant frameworks we identified include:

 

 

We gained an understanding of how the group and the parent company are complying with these laws and regulations by making enquiries of management and those charged with governance. We corroborated these enquiries through our review of relevant correspondence with regulatory bodies and board meeting minutes.

 

We assessed the susceptibility of the group's financial statements to material misstatement including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management and those charged with governance oversee the implementation and operation of controls. We identified a heightened fraud risk in relation to:

 

In addition to the above, the following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:

 

 

HFD PROPERTY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HFD PROPERTY GROUP LIMITED
- 7 -

Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

 

Use of our report

This report is made solely to the parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

James Hamilton (Senior Statutory Auditor)
For and on behalf of Johnston Carmichael LLP
Statutory Auditor
Glasgow, United Kingdom
17 March 2025
HFD PROPERTY GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
2024
2023
Notes
£000
£000
Turnover
3
476
12,255
Cost of sales
(384)
(160)
Gross profit
92
12,095
Administrative expenses
(1,168)
(2,285)
Impairment
4
-
0
(1,775)
Operating (loss)/profit
5
(1,076)
8,035
Interest receivable and similar income
8
1,953
1,341
Interest payable and similar expenses
9
(64)
(611)
Profit before taxation
813
8,765
Tax on profit
10
25
(2,030)
Profit for the financial year
18
838
6,735
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
HFD PROPERTY GROUP LIMITED
GROUP BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 9 -
2024
2023
Notes
£000
£000
£000
£000
Fixed assets
Investments
11
-
-
Current assets
Stocks
13
4,076
4,078
Debtors
14
55,687
58,326
Cash at bank and in hand
240
1,207
60,003
63,611
Creditors: amounts falling due within one year
15
(9,322)
(13,768)
Net current assets
50,681
49,843
Net assets
50,681
49,843
Capital and reserves
Called up share capital
17
1
1
Profit and loss reserves
18
50,680
49,842
Total equity
50,681
49,843

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 17 March 2025 and are signed on its behalf by:
17 March 2025
Mr W D Hill
Director
Company registration number SC373059 (Scotland)
HFD PROPERTY GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 10 -
2024
2023
Notes
£000
£000
£000
£000
Fixed assets
Investments
11
-
-
Current assets
Stocks
13
2,583
2,585
Debtors
14
55,666
57,933
Cash at bank and in hand
224
1,004
58,473
61,522
Creditors: amounts falling due within one year
15
(1,569)
(5,403)
Net current assets
56,904
56,119
Net assets
56,904
56,119
Capital and reserves
Called up share capital
17
1
1
Profit and loss reserves
18
56,903
56,118
Total equity
56,904
56,119

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £785,020 (2023 - £8,184,290 profit).

The financial statements were approved by the board of directors and authorised for issue on 17 March 2025 and are signed on its behalf by:
17 March 2025
Mr W D Hill
Director
Company registration number SC373059 (Scotland)
HFD PROPERTY GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
Share capital
Profit and loss reserves
Total
£000
£000
£000
Balance at 1 July 2022
1
43,107
43,108
Year ended 30 June 2023:
Profit and total comprehensive income
-
6,735
6,735
Balance at 30 June 2023
1
49,842
49,843
Year ended 30 June 2024:
Profit and total comprehensive income
-
838
838
Balance at 30 June 2024
1
50,680
50,681
HFD PROPERTY GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
Share capital
Profit and loss reserves
Total
£000
£000
£000
Balance at 1 July 2022
1
47,933
47,934
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
8,185
8,185
Balance at 30 June 2023
1
56,118
56,119
Year ended 30 June 2024:
Profit and total comprehensive income
-
785
785
Balance at 30 June 2024
1
56,903
56,904
HFD PROPERTY GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
2024
2023
Notes
£000
£000
£000
£000
Cash flows from operating activities
Cash (absorbed by)/generated from operations
22
(1,699)
874
Interest paid
(64)
(611)
Income taxes paid
(1,157)
(1,151)
Net cash outflow from operating activities
(2,920)
(888)
Investing activities
Interest received
1,953
1,341
Net cash generated from investing activities
1,953
1,341
Financing activities
Intercompany borrowing
-
2,130
Repayment of bank loans
-
(2,130)
Net cash used in financing activities
-
-
Net (decrease)/increase in cash and cash equivalents
(967)
453
Cash and cash equivalents at beginning of year
1,207
754
Cash and cash equivalents at end of year
240
1,207
HFD PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 14 -
1
Accounting policies
Company information

HFD Property Group Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is 177 Bothwell Street, Glasgow, G2 7ER.

 

The group consists of HFD Property Group Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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 £000.

The financial statements have been prepared under the historical cost convention.

The 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 for parent company information presented within the consolidated financial statements:

 

HFD PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
1.2
Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

 

The consolidated group financial statements consist of the financial statements of the parent company HFD Property Group Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 30 June 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and 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 represents the invoiced value of goods and services sold, less allowances and excluding value added tax, and was derived from activities carried on wholly in the United Kingdom.

 

Turnover includes:

1.5
Fixed asset investments

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

HFD PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -

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

1.6
Stocks

Work in progress is valued at the lower of cost and net realisable value.

Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

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 group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

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.

HFD PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 17 -
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 group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the group 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 group.

Hedge accounting

The company designates certain hedging instruments, including derivatives as either fair value hedges or cash flow hedges. At the inception of the hedge relationship, the company documents the relationship between the hedging instrument and the hedged item along with risk management objectives and strategy for undertaking various hedge transactions. At the inception of the hedge and on an ongoing basis, the company documents whether the hedging instruments highly effective in offsetting changes in fair values or cash flows of the hedged item.

For derivatives that are designated and qualify as cash flow hedges, the effective portion of changes in the fair value of the hedge is recognised in other comprehensive income. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss.

 

Any gain or loss previously recognised in other comprehensive income is reclassified to profit or loss when the hedge relationship ends. This occurs when the hedging instrument expires or no longer meets the hedging criteria, the forecast transaction is no longer highly probable, the hedged debt instrument is derecognised, or the hedging instrument is terminated.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

HFD PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 18 -
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the 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 if, and only if, there is 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 leased asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

HFD PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 19 -
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

The directors periodically review the carrying value of work in progress for any indicators of impairment. This involves an assessment of the recoverable amount of work in progress, being the higher of the anticipated fair value less cost to sell and its value in use.

3
Turnover
2024
2023
£000
£000
Turnover analysed by class of business
Commercial property development
476
12,255
4
Exceptional item
2024
2023
£000
£000
Expenditure
Stock impairment
-
1,775
-
1,775

The prior year accounts include a stock impairment on the land and building held within City Park 2 Limited and City Park 3 Limited. The building that occupied the land were demolished, resulting in only the fair value of the land being recognised.

5
Operating (loss)/profit
2024
2023
£000
£000
Operating (loss)/profit for the year is stated after charging:
Operating lease charges
40
107
6
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£000
£000
For audit services
Audit of the financial statements of the group and company
15
15
Audit of the financial statements of the company's subsidiaries
8
15
23
30
HFD PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
7
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Total
-
-
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£000
£000
£000
£000
Wages and salaries
177
137
177
137
Social security costs
20
15
20
15
Pension costs
8
5
8
5
205
157
205
157

Contractually all employees of HFD Group Limited sit within HFD Payroll Limited. However an average of 4 employees were dedicated to providing services on behalf of HFD Property Group Limited during the year ended 30 June 2024 (2023: 3 employees).

 

Remuneration costs were borne by HFD Payroll Limited and recharged to the relevant HFD Property Group Limited group entities.

8
Interest receivable and similar income
2024
2023
£000
£000
Interest income
Other interest income
1,953
1,341
9
Interest payable and similar expenses
2024
2023
£000
£000
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
-
2
Other interest on financial liabilities
-
609
-
611
Other finance costs:
Other interest
64
-
Total finance costs
64
611
HFD PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
10
Taxation
2024
2023
£000
£000
Current tax
UK corporation tax on profits for the current period
15
1,437
Adjustments in respect of prior periods
-
0
232
Tax relating to prior year adjustments recognised in profit or loss
(266)
-
0
Group tax relief
226
361
Toal current tax (credit)/charge
(25)
2,030

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

2024
2023
£000
£000
Profit before taxation
813
8,765
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
203
1,797
Tax effect of expenses that are not deductible in determining taxable profit
37
2
Adjustments in respect of prior years
(266)
232
Fixed asset differences
1
(1)
Taxation (credit)/charge
(25)
2,030
11
Fixed asset investments
Group
Company
2024
2023
2024
2023
£000
£000
£000
£000
-
-
-
-
Movements in fixed asset investments
Company
Investments
£000
Cost or valuation
At 1 July 2023 and 30 June 2024
-
Carrying amount
At 30 June 2024
-
At 30 June 2023
-
HFD PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
12
Subsidiaries

Details of the company's subsidiaries at 30 June 2024 are as follows:

Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
HFD City Park 2 Limited
1
Property development
Ordinary
100.00
HFD City Park 3 Limited
1
Property development
Ordinary
100.00
Newhouse North Developments Limited
1
Property development
Ordinary
100.00

Registered office addresses (all UK unless otherwise indicated):

1
177 Bothwell Street, Glasgow, Scotland, G2 7ER

HFD City Park 2 Limited, HFD City Park 3 Limited and Newhouse North Developments Limited have taken the exemption from the requirement to have their individual financial statements audited. The exemption is available under section 479A of the Companies Act 2006.

13
Stocks
Group
Company
2024
2023
2024
2023
£000
£000
£000
£000
Work in progress
4,076
4,078
2,583
2,585
14
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£000
£000
£000
£000
Trade debtors
49
226
52
225
Corporation tax recoverable
-
0
370
-
0
-
0
Amounts owed by group undertakings
9,894
15,005
9,893
15,004
Other debtors
13,119
894
13,097
892
Prepayments and accrued income
2,911
12,897
2,910
12,878
25,973
29,392
25,952
28,999
Amounts falling due after more than one year:
Amount owed by related parties
29,714
28,934
29,714
28,934
Total debtors
55,687
58,326
55,666
57,933

Amounts owed by group undertakings are repayable on demand and are interest free.


Included in amounts falling due within one year, the other debtors balance includes £12,975k (2023: £Nil) of amounts due from related parties.

HFD PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
15
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£000
£000
£000
£000
Trade creditors
50
28
47
6
Amounts owed to group undertakings
8,451
10,113
738
1,881
Corporation tax payable
138
1,690
120
1,690
Other taxation and social security
11
-
-
-
Other creditors
653
300
653
300
Accruals and deferred income
19
1,637
11
1,526
9,322
13,768
1,569
5,403

Amounts owed to group undertakings are repayable on demand and attract no interest.

 

Other creditor include £649k (2023; £1,000k) of amounts payable to related parties. These amounts are also repayable on demand and attract no interest.

16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£000
£000
Charge to profit or loss in respect of defined contribution schemes
8
5

A defined contribution pension scheme is operated for all qualifying employees through HFD Payroll Limited and all charges recharged to HFD Property Group Limited. The assets of the scheme are held separately from those of the group in an independently administered fund.

17
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£000
£000
Issued and fully paid
Ordinary shares of £1 each
1,003
1,003
1
1
18
Reserves
Profit and loss reserves

Profit and loss reserves represent accumulated comprehensive income or expenditure for the year and prior periods less dividends paid.

19
Events after the reporting date

On 29th October 2024, HFD Property Group Limited as a subsidiary of HFD Group Holdings Limited was acquired by HFD Holdco Limited as part of internal restructuring of the business.

HFD PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 24 -
20
Related party transactions
Transactions with related parties

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

Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£000
£000
£000
£000
Group
Other related parties
37
15,270
499
1,844
Company
Other related parties
37
15,270
499
1,844
Management fees
Interest received
2024
2023
2024
2023
£000
£000
£000
£000
Group
Other related parties
892
1,069
1,940
1,198
Company
Other related parties
892
1,069
1,940
1,198

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2024
2023
£000
£000
Group
Other related parties
649
1,000
Company
Other related parties
649
1,000

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2024
2023
Balance
Balance
£000
£000
Group
Other related parties
42,689
28,934
Company
Other related parties
42,689
28,934
HFD PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 25 -
21
Controlling party

As disclosed at Note 18, the ultimate parent company became HFD Holdco Limited post year end, a company

registered within the UK.

 

These financial statements are not consolidated in the financial statements of HFD Holdco Limited as the

company did not hold significant control at the year end.

 

The controlling party and ultimate parent at the reporting date is HFD Group Holdings Limited which is the

largest group of companies for which group financial statements are prepared. Copies of group financial

statements are available to the public from Companies House. HFD Property Group Limited is the smallest

group for which group financial statements are prepared.

 

The Hill 2011 Trust and Alexander Trust and their members are considered to be the ultimate controlling party

due to their majority shareholding in HFD Group Holdings Limited

22
Cash (absorbed by)/generated from group operations
2024
2023
£000
£000
Profit for the year after tax
838
6,735
Adjustments for:
Taxation (credited)/charged
(25)
2,030
Finance costs
64
611
Investment income
(1,953)
(1,341)
Depreciation and impairment of tangible fixed assets
-
1,775
Movements in working capital:
Decrease/(increase) in stocks
2
(787)
Decrease in debtors
2,269
23,291
Decrease in creditors
(2,894)
(31,440)
Cash (absorbed by)/generated from operations
(1,699)
874
23
Analysis of changes in net funds - group
1 July 2023
Cash flows
30 June 2024
£000
£000
£000
Cash at bank and in hand
1,207
(967)
240
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