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Registered number: 08704006
EAHAW LTD
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 31 DECEMBER 2023
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EAHAW LTD
REGISTERED NUMBER: 08704006
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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EAHAW LTD
REGISTERED NUMBER: 08704006
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2023
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 3 to 14 form part of these financial statements.
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EAHAW LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
EAHAW Ltd is a private company limited by shares, incorporated in England and Wales, registered number 08704006. The registered office address is 44 Coombe Lane, London, SW20 0LA.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. 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 preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.
The prior year financial statements were prepared in accordance with FRS 101. This year the Company is applying FRS 102 because the framework is considered more appropriate to the users of the financial statements. On transition back to FRS 102 the Company applied "Section 35 - Transition to this FRS" of FRS 102. Details of the adjustments that arose on transition to FRS 102 is given in Note 15.
The financial statements are presented in Sterling, which is the functional currency of the Company, and rounded to the nearest £.
The following principal accounting policies have been applied:
The directors have considered the Company’s position at the time of signing the financial statements and have undertaken an exercise to forecast future profits and cash flows for the Company. The directors have also considered the current financial position of the Company, measures the directors could take to mitigate ongoing costs should they need to and the cash and financing facilities available to the Company.
Based on this, the directors have concluded that they have a reasonable expectation that the Company will have adequate resources to continue in operational existence for the foreseeable future, and at least twelve months from the date of signing these financial statements, they therefore continue to adopt the going concern basis of accounting in preparing these financial statements.
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EAHAW LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:
Turnover from exchange fees on residential sales is recognised at the legal exchange date of the sale.
Turnover from lettings is recognised on completion of the service being provided, the performance obligations which the Company has depends on the type of lettings income. Let-only lettings income is recognised at a point in time at the start of the minimum period for which a tenant has been found, typically per month. Rent-collect lettings income is recognised at a point in time once the rent has been collected for that period, typically per month. Fully managed lettings is split between the proportion of income from rent collection services which is recognised at that point in time with the remaining income being recognised over the rental period. Pre and post tenancy income is recognised at a point in time once the service is provided.
Turnover from conveyancing referrals, financial services for referrals and completion of mortgage procurement is recognised at the legal exchange date of the residential sale to which the transaction relates.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Interest income is recognised in profit or loss using the effective interest method.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
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EAHAW LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.
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EAHAW LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of income and retained earnings over its useful economic life.
Other intangible assets
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
During the period the Company entered into a franchise agreement which includes an initial fee for the benefit of the existing lettings book and registered trademark, payable in the form of a monthly fixed fee over 15 years. The directors consider the monthly fixed fee represents the purchase of these assets. As such, the assets are capitalised at the present value of the future payments discounted at an appropriate weighted average cost of capital and a corresponding fixed lettings book fee liability recognised.
Subsequently, the fixed lettings book fee asset is amortised to the Statement of comprehensive income over 15 years, being the full term of the franchise agreement. The discounting of the liability is unwound annually with the finance cost recognised within the Statement of comprehensive income.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
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EAHAW LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
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Tangible fixed assets (continued)
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Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.
Depreciation is provided on the following basis:
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over the length of the lease
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3 - 5 years straight line
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Short-term debtors are measured at transaction price, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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Provisions for liabilities
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Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Increases in provisions are generally charged as an expense to profit or loss.
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EAHAW LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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 trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
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 the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
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EAHAW LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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The average monthly number of employees, including directors, during the year was 41 (2022 - 33).
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EAHAW LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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Due after more than one year
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Amounts owed by group undertakings
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Prepayments and accrued income
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EAHAW LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Creditors: Amounts falling due after more than one year
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Charged to profit or loss
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The deferred tax asset is made up as follows:
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EAHAW LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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Charged to profit or loss
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The prior year has been restated to correctly classify expenses between cost of sales and administration expenses. This adjustment does not impact the profit in the prior period.
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £60k (2022 - £61k). Contributions totalling £6k (2022 - £7k) were payable to the fund at the reporting date and are included in creditors.
As at 31 December 2023, monies held in separate bank accounts on behalf of clients amounted to £1,835k (2022 - £1,600k). Neither this amount, nor the matching liabilities to the clients concerned are included in the Statement of financial position.
Client funds are protected by the Financial Services Compensation Scheme (FSCS) under which the Government guarantees amounts up to £85,000. This guarantee applies to each individual client, not the total of deposits held by the Company.
The Company's immediate and ultimate parent company is Southern HomeMove Ltd. L Heanley is the ultimate controlling party by virtue of her majority shareholding in Southern HomeMove Ltd. The registered office address is 44 Coombe Lane, London, SW20 0LA.
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EAHAW LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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The Company transitioned to FRS 102 from FRS 101 as at 1 January 2022. The impact of the transition to FRS 102 is as follows:
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Reconciliation of equity at 1 January 2022
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Equity at 1 January 2022 under FRS 101
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Adjustment to goodwill carrying value
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Derecognition of right of use asset
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Derecognition of right of use liability
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Adjustment to deferred tax
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Equity at 1 January 2022 under FRS 102
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Reconciliation of equity at 31 December 2022
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Equity at 31 December 2022 under FRS 101
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Adjustment to goodwill carrying value
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Derecognition of right of use asset
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Derecognition of right of use liability
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Adjustment to deferred tax
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Equity at 31 December 2022 under FRS 102
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EAHAW LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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Reconciliation of profit and loss for year ended 31 December 2022
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Profit for the year ended 31 December 2022 under FRS 101
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Profit for the year ended 31 December 2022 under FRS 102
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The following were changes in accounting policies arising from the transition to FRS 102:
1.Goodwill arising from the acquisition of the trade and assets, including lettings book, was held at cost less impairment under FRS 101. Under FRS 102 it is held at cost less amortisation, with amortisation charged on a straight line basis over the useful ecomic life, which is considered to be 10 years.
2.IFRS 16, right of use assets were removed from the balance sheet and the associated depreciation and interest expense reversed. The operating costs associated with the rental of these items were then reinstated as an expense through profit and loss. Lease liabilities associated with the assets were removed from the balance sheet and the associated finance charge reversed.
3.These adjustments have resulted in changes to the corporation tax charge for the year-ended 31 December 2022. This has been recognised through an adjustment to the deferred tax balance in the prior year. The deferred tax asset has been restricted to the extent that it is probable the losses will be recovered against future taxable profits.
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The auditors' report on the financial statements for the year ended 31 December 2023 was unqualified.
The audit report was signed on 3 April 2025 by John Atkins ACA FCCA (Senior statutory auditor) on behalf of Larking Gowen LLP.
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