Company registration number 03191677 (England and Wales)
HTK LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
PAGES FOR FILING WITH REGISTRAR
HTK LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 8
HTK LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 31 AUGUST 2024
31 August 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
4
899,374
583,825
Tangible assets
5
9,192
13,104
908,566
596,929
Current assets
Debtors
6
319,321
250,286
Cash at bank and in hand
34,140
158,536
353,461
408,822
Creditors: amounts falling due within one year
7
(1,553,787)
(864,512)
Net current liabilities
(1,200,326)
(455,690)
Total assets less current liabilities
(291,760)
141,239
Provisions for liabilities
(5,000)
(5,000)
Net (liabilities)/assets
(296,760)
136,239
Capital and reserves
Called up share capital
8
349
349
Share premium account
7,431
7,431
Capital redemption reserve
60
60
Other reserves
411,202
331,943
Profit and loss reserves
(715,802)
(203,544)
Total equity
(296,760)
136,239

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

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

The financial statements were approved by the board of directors and authorised for issue on 31 March 2025 and are signed on its behalf by:
Mr M S Bowser
Director
Company registration number 03191677 (England and Wales)
HTK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 2 -
1
Accounting policies
Company information

HTK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Chapmans Warehouse, Wherry Quay, Ipswich, IP4 1AS.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

Although the company is loss-making for the period and is expected to be loss-making for the next year, the company was acquired by ITA Holdings Inc and this parent company has invested a significant amount of money into developing a new software for the company which is expected to generate further revenue in the future. Therefore, 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, based on the ongoing support from the parent company. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

 

When it is probable that the total contract costs will exceeded total contract revenue, the expected loss is recognised as an expense immediately.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

HTK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 3 -

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives. Assets under construction were completed in the year and therefore, recognised as software in the year. No amortisation was charged on assets under construction. Software was amortised on the following bases:

Software
20% straight line
Assets under construction
-
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
10 Years straight line
Plant and machinery
3 Years straight line
Office Equipment
25% Reducing Balance

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.

1.6
Impairment of fixed assets

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

1.7
Cash at bank and in hand

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.

HTK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 4 -
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 statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include 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.

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.

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.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

HTK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 5 -
1.10
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

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

The company operates a defined contribution pension scheme for employees. The annual contributions payable are charged to the profit and loss accounts.

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.

1.14
Foreign exchange

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.

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.

HTK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 6 -
3
Employees

The average monthly number of persons (including directors) employed by the company during the year was 23 (2023 - 21).

2024
2023
Number
Number
Total
23
21
4
Intangible fixed assets
Software
Assets under construction
Total
£
£
£
Cost
At 1 September 2023
-
0
583,825
583,825
Additions
64,005
299,482
363,487
Transfers
883,307
(883,307)
-
0
At 31 August 2024
947,312
-
0
947,312
Amortisation and impairment
At 1 September 2023
-
0
-
0
-
0
Amortisation charged for the year
47,938
-
0
47,938
At 31 August 2024
47,938
-
0
47,938
Carrying amount
At 31 August 2024
899,374
-
0
899,374
At 31 August 2023
-
0
583,825
583,825
HTK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 7 -
5
Tangible fixed assets
Leasehold improvements
Plant and machinery
Office Equipment
Total
£
£
£
£
Cost
At 1 September 2023
178,914
16,156
69,241
264,311
Additions
-
0
2,716
-
0
2,716
At 31 August 2024
178,914
18,872
69,241
267,027
Depreciation and impairment
At 1 September 2023
178,269
10,525
62,413
251,207
Depreciation charged in the year
645
3,707
2,276
6,628
At 31 August 2024
178,914
14,232
64,689
257,835
Carrying amount
At 31 August 2024
-
0
4,640
4,552
9,192
At 31 August 2023
645
5,631
6,828
13,104
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
224,961
208,690
Other debtors
94,360
41,596
319,321
250,286
7
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
16,012
-
0
Trade creditors
66,240
122,688
Amounts owed to group undertakings
1,197,594
500,278
Taxation and social security
106,018
71,439
Other creditors
167,923
170,107
1,553,787
864,512
8
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of 0.1p each
349,300
349,300
349
349
HTK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 8 -
9
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.

The auditor's report is unqualified and includes the following:

Opinion

In our opinion the financial statements:

Senior Statutory Auditor:
Christopher Barrett
Statutory Auditor:
Ensors Accountants LLP
Date of audit report:
31 March 2025
10
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2024
2023
£
£
127,492
168,840
11
Related party transactions
Transactions with related parties

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

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
1,197,594
500,278

The outstanding balance due to the parent company at the year-end relates to an unsecured loan that is repayable on demand. There is no interest due on the loan.

12
Parent company

The parent undertaking for which group accounts are drawn up and of which the company is a member is ITA Holdings Inc., incorporated in the United States of America, and this is considered to be the ultimate parent undertaking and controlling party.

2024-08-312023-09-01falsefalsefalse31 March 2025CCH SoftwareCCH Accounts Production 2024.310No description of principal activityMr M S BowserMr J K BowserMr L EbingerMr C JonesMr M Kenkel031916772023-09-012024-08-31031916772024-08-31031916772023-08-3103191677core:IntangibleAssetsOtherThanGoodwill2024-08-3103191677core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2024-08-3103191677core:IntangibleAssetsOtherThanGoodwill2023-08-3103191677core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-08-3103191677core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-08-3103191677core:PlantMachinery2024-08-3103191677core:FurnitureFittings2024-08-3103191677core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-08-3103191677core:PlantMachinery2023-08-3103191677core:FurnitureFittings2023-08-3103191677core:CurrentFinancialInstrumentscore:WithinOneYear2024-08-3103191677core:CurrentFinancialInstrumentscore:WithinOneYear2023-08-3103191677core:CurrentFinancialInstruments2024-08-3103191677core:CurrentFinancialInstruments2023-08-3103191677core:ShareCapital2024-08-3103191677core:ShareCapital2023-08-3103191677core:SharePremium2024-08-3103191677core:SharePremium2023-08-3103191677core:CapitalRedemptionReserve2024-08-3103191677core:CapitalRedemptionReserve2023-08-3103191677core:OtherMiscellaneousReserve2024-08-3103191677core:OtherMiscellaneousReserve2023-08-3103191677core:RetainedEarningsAccumulatedLosses2024-08-3103191677core:RetainedEarningsAccumulatedLosses2023-08-3103191677bus:Director12023-09-012024-08-3103191677core:IntangibleAssetsOtherThanGoodwill2023-09-012024-08-3103191677core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-09-012024-08-3103191677core:PlantMachinery2023-09-012024-08-3103191677core:FurnitureFittings2023-09-012024-08-31031916772022-05-012023-08-3103191677core:IntangibleAssetsOtherThanGoodwill2023-08-3103191677core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-08-31031916772023-08-3103191677core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-09-012024-08-3103191677core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-08-3103191677core:PlantMachinery2023-08-3103191677core:FurnitureFittings2023-08-3103191677core:WithinOneYear2024-08-3103191677core:WithinOneYear2023-08-3103191677core:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntity2024-08-3103191677bus:PrivateLimitedCompanyLtd2023-09-012024-08-3103191677bus:SmallCompaniesRegimeForAccounts2023-09-012024-08-3103191677bus:FRS1022023-09-012024-08-3103191677bus:Audited2023-09-012024-08-3103191677bus:Director22023-09-012024-08-3103191677bus:Director32023-09-012024-08-3103191677bus:Director42023-09-012024-08-3103191677bus:Director52023-09-012024-08-3103191677bus:FullAccounts2023-09-012024-08-31xbrli:purexbrli:sharesiso4217:GBP