Company No: 03190638 (England and Wales)

Contents

• Balance Sheet
• Notes to the Financial Statements

	Note	2024		2023
		£		£
				Restated - note 2
Fixed assets
Tangible assets	4	337,733		404,040
		337,733		404,040
Current assets
Stocks	5	56,595		158,383
Debtors	6	255,961		190,730
Cash at bank and in hand	7	173,214		13,874
		485,770		362,987
Creditors: amounts falling due within one year	8	( 615,911)		( 554,584)
Net current liabilities		(130,141)		(191,597)
Total assets less current liabilities		207,592		212,443
Creditors: amounts falling due after more than one year	9	( 17,904)		( 17,904)
Net assets		189,688		194,539
Capital and reserves
Called-up share capital		1,002		1,002
Share premium account		259,000		259,000
Revaluation reserve		( 57,507 )		( 7,758 )
Profit and loss account		( 12,807 )		( 57,705 )
Total shareholder's funds		189,688		194,539

For the financial year ending 31 December 2024 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

• The member has not required the Company to obtain an audit of its financial statements for the financial year in accordance with section 476;
• The director acknowledges their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Profit and Loss Account has not been delivered.

These financial statements have been prepared in accordance with the provisions of FRS 102 Section 1A – small entities. The financial statements of H Morrison (Racing) Limited (registered number: 03190638) were approved and authorised for issue by the Director on 24 April 2025. They were signed on its behalf by:

H H Morrison Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

H Morrison (Racing) Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is Goodwood House, Blackbrook Park Avenue, Taunton, TA1 2PX, United Kingdom.

The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.

Prior year adjustment

The company previously held the property improvements under land and buildings. Due to a 10-year lease being put in place, the relevant costs and depreciation has been moved to leasehold improvements. The costs are being deprecated straight line over a 10 year period. This adjustment has been made retrospectively.

Tangible assets: £404,040
Revaluation reserve: £7,758
Profit and loss account: £57,075

Turnover

Turnover comprises the fair value of the consideration received or receivable for the sales of horses and provision of training of racehorses in the ordinary course of the company's activities. Turnover is shown net of sales/ value added tax, returns, rebates and discounts.

The company recognises revenue when: the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the company's activities.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date. Tax is recognised in the profit and loss account, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date that are expected to apply when the timing differences reverse. Deferred tax assets and liabilities are not discounted.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit. Deferred tax liabilities are presented within provisions for liabilities on the balance sheet.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Leasehold improvements	10 - 50 years straight line
Plant and machinery	4 - 6 years straight line
Vehicles	4 years straight line

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

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.

Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and losses are recognised in profit or loss.

Stocks

Biological assets not held for continuing use within the business are classified as current assets and are included within stocks. Such assets are measured at cost less accumulated impairment. Assets within this classification comprise horses.

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value.

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts, except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts.

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 creditors: amounts falling due within one year.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Ordinary share capital

The ordinary share capital of the Company is presented as equity.

2. Prior year adjustment

The company previously held the property improvements under land and buildings. Due to a 10-year lease being put in place, the relevant costs and depreciation has been moved to leasehold improvements. The costs are being deprecated straight line over a 10 year period.

This has resulted in the comparative figures being restated to reflect this change. The depreciation charge has decreased. The adjustment has been included in the prior period's profit for the year and in the Profit and Loss reserve for all further priors. This change has had no effect on the liability to corporation tax for the company.

		As previously reported		Adjustment		As restated
Year ended 31 December 2023		£		£		£
Profit and loss reserve		67,071		(9,996)		57,075
Tangible assets		441,504		(37,464)		404,040
Revaluation reserve		(39,072)		46,830		7,758

3. Employees

	2024		2023
	Number		Number
Monthly average number of persons employed by the Company during the year, including the director	20		25

4. Tangible assets

	Leasehold improve- ments		Plant and machinery		Vehicles		Total
	£		£		£		£
Cost
At 01 January 2024	739,410		255,999		177,245		1,172,654
Disposals	0		( 33,934)		( 15,900)		( 49,834)
At 31 December 2024	739,410		222,065		161,345		1,122,820
Accumulated depreciation
At 01 January 2024	357,751		248,856		162,007		768,614
Charge for the financial year	46,981		4,088		1,325		52,394
Disposals	0		( 33,934)		( 1,987)		( 35,921)
At 31 December 2024	404,732		219,010		161,345		785,087
Net book value
At 31 December 2024	334,678		3,055		0		337,733
At 31 December 2023	381,659		7,143		15,238		404,040

5. Stocks

	2024		2023
	£		£
Stocks	56,595		158,383

Included within stocks are current biological assets of the part or full share of racehorses owned.

Stocks comprising deadstock such as feed and bedding are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to net realisable value.

6. Debtors

	2024		2023
	£		£
Trade debtors	198,310		190,730
Other debtors	57,651		0
	255,961		190,730

Other debtors consists of an accrual for an insurance claim in relation to legal and professional fees.

7. Cash and cash equivalents

	2024		2023
	£		£
Cash at bank and in hand	173,214		13,874
Less: Bank overdrafts	0		( 62,067)
	173,214		(48,193)

8. Creditors: amounts falling due within one year

	2024		2023
	£		£
Bank overdrafts	0		62,067
Trade creditors	377,659		309,583
Amounts owed to director	123,084		88,644
Accruals	7,200		6,800
Other taxation and social security	73,406		51,547
Other creditors	34,562		35,943
	615,911		554,584

Included within other creditors are amounts owed to employees in relation to pool money and pensions.

9. Creditors: amounts falling due after more than one year

	2024		2023
	£		£
Other creditors	17,904		17,904

There are no amounts included above in respect of which any security has been given by the small entity.

10. Events after the Balance Sheet date

Subsequent to the reporting date, the company has entered into a lease agreement for the continued use of land that had previously been occupied under informal arrangements. A lease will be entered into in the following accounting period, covering a term of 10 years with an annual rental charge of £1,000.
This represents a non-adjusting post balance sheet event as the lease agreement was not in place at the reporting date. No adjustment has been made to the financial statements as at 31 December 2024. The directors consider this lease to be material due to its impact on the company’s future operations.