| REGISTERED NUMBER: 09301320 (England and Wales) |
| Group Strategic Report, Report of the Directors and |
| Consolidated Financial Statements |
| for the Year Ended 31st December 2024 |
| for |
| HALKIN MANAGEMENT COMPANY LTD |
| REGISTERED NUMBER: 09301320 (England and Wales) |
| Group Strategic Report, Report of the Directors and |
| Consolidated Financial Statements |
| for the Year Ended 31st December 2024 |
| for |
| HALKIN MANAGEMENT COMPANY LTD |
| HALKIN MANAGEMENT COMPANY LTD (REGISTERED NUMBER: 09301320) |
| Contents of the Consolidated Financial Statements |
| for the year ended 31st December 2024 |
| Page |
| Company Information | 1 |
| Group Strategic Report | 2 |
| Report of the Directors | 4 |
| Statement of Directors' Responsibilities | 6 |
| Report of the Independent Auditors | 7 |
| Consolidated Statement of Comprehensive Income | 10 |
| Consolidated Statement of Financial Position | 11 |
| Company Statement of Financial Position | 12 |
| Consolidated Statement of Changes in Equity | 13 |
| Company Statement of Changes in Equity | 14 |
| Consolidated Statement of Cash Flows | 15 |
| Notes to the Consolidated Financial Statements | 16 |
| HALKIN MANAGEMENT COMPANY LTD |
| Company Information |
| for the year ended 31st December 2024 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Statutory Auditor |
| Office: Croydon - TC SWP |
| 3rd Floor, Suffolk House |
| George Street |
| Croydon |
| CR0 0YN |
| HALKIN MANAGEMENT COMPANY LTD (REGISTERED NUMBER: 09301320) |
| Group Strategic Report |
| for the year ended 31st December 2024 |
| The directors present their strategic report of the company and the group for the year ended 31st December 2024. |
| REVIEW OF BUSINESS |
| Halkin Management Company Limited (the "Company") is the Topco for a group of companies 100% owned and controlled by the Company (the "Group"). The Group reported a pre-tax profit for the year of £794,441 (2023 loss of £1,961,907) and revenues of £26,565,633 (up from 2023 revenues of £16,215,313). The Group has successfully invested in capital improvements post Covid-19 to improve its revenues through increased occupancy and raise licence fee rates for office spaces. The Group, through the Company, expanded its operations in the year taking on two new leases for properties (2023: Two new lease properties) and renegotiated and expanded four existing leases on new lease terms. The new leases have impacted the company's profitability due to the recognition of non-cash rents per the requirements of FRS-102 Section 20, but the Group and the Company still achieved a profit for the year and its cashflows continued to remain stable. The Group, through the Company, refinanced its existing loan via a new provided in November 2024 to finance its continued expansion into 2025. |
| The Directors are happy with the underlying improvement in the Group and Company's performance in the financial year and are satisfied that the Group and Company is in a stronger financial position than at the end of the previous financial year and continues to have cash reserves to meet its current commitments. |
| The Group through the Company continues to aim to become a leading provider of serviced office accommodation in London and the surrounding areas. The Directors have agreed a new lease in 2025 to continue the Group and Company's expansion plans and will continue to pursue lease, management and other options for further expansion in the year. |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The Group's financial instruments comprise third-party loans with fixed interest rates, some cash and liquid resources and various items, such as trade debtors and trade creditors, which arise directly from its operations. There are a number of risks and uncertainties which could have an impact on the Group's long-term performance. The Group via the Company has a risk management structure in place to identify, manage and mitigate business risks. |
| Credit risk |
| The risk arises from a general economic downturn in the UK which could adversely affect the Group and Company's revenues. The Group and company seeks to mitigate this risk by constantly monitoring its customer profile to ensure that there is no undue reliance on a particular customer or a particular commercial activity. The Group and company has implemented policies that require appropriate credit checks on potential customers before new accounts are accepted. The Company also has a diversified customer base and the requirement for customer deposits and payments in advance on contracts to further minimise exposure to this risk. |
| Liquidity risk |
| The Group has a risk in its exposure to movements in the London property market. The Group's leases contain market rent review clauses. If reviews result in increased rents, there is a possibility that there could be a short-term reduction in profitability until increases can be passed onto clients due to contract renewal dates. The Directors consider the company to have sufficient available funds for operations. Financial opportunities, where considered appropriate in the circumstances, would be subject to approval by the board of directors. |
| Competition risk |
| The market in which the Company operate is highly competitive and there is a risk that the Group's customers will look to competitors for those services offered. The Group has mitigated this risk by building a strong reputation for service and quality and has a large and diversified customer base. |
| HALKIN MANAGEMENT COMPANY LTD (REGISTERED NUMBER: 09301320) |
| Group Strategic Report |
| for the year ended 31st December 2024 |
| FINANCIAL KEY PERFORMANCE INDICATORS |
| The Directors use a number of key performance indicators ("KPI's") to assist in measuring the Group's and Company's performance. These include occupancy levels, rental values per desk and per sq ft and EBITDA (Earnings before interest, taxation, depreciation, amortisation and exceptional non-operating costs). The Company has seen an increase in the year in its occupancy, rental values and EBITDA (decrease in 2023) as new spaces commence trading and new properties exceed occupancy targets. The Directors are satisfied with that performance of the Group having generated a positive cashflow from operations and a pre-tax profit of £794,441. |
| ON BEHALF OF THE BOARD: |
| HALKIN MANAGEMENT COMPANY LTD (REGISTERED NUMBER: 09301320) |
| Report of the Directors |
| for the year ended 31st December 2024 |
| The directors present their report with the financial statements of the company and the group for the year ended 31st December 2024. |
| PRINCIPAL ACTIVITY |
| The principal activity of the company and the group continued to be that of the provision and management of shared workspaces and offices that include the necessary infrastructure, services and technology. |
| DIVIDENDS |
| No dividends will be distributed for the year ended 31st December 2024. |
| EVENTS SINCE THE END OF THE YEAR |
| Information relating to events since the end of the year is given in the notes to the financial statements. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1st January 2024 to the date of this report. |
| INDEMNITY PROVISION |
| The Directors who held office at the date of approval of this report of the directors confirm that there was no qualifying indemnity provision made by the Group at any time during the financial year. |
| GOING CONCERN AND FUTURE DEVELOPMENTS |
| The Group meets its working capital requirements through bank overdrafts, Bank and finance Loans, shareholder loans and retained profits. The Directors prepare annual budgets and multi-year forecasts in order to ensure that the company has sufficient reserves in order to meet its liabilities as they fall due. Budgets and actual results are reviewed quarterly by the Group's Directors to ensure that decisions can be made should deviations occur from the expectations budgeted. |
| The Directors have reviewed the current and future trading prospects of the Company and the Group and concluded that the going concern basis is appropriate for the presentation of these accounts. In making this assessment the directors have taken the following into consideration: |
| The Group has seen growth in its pre-existing and new operations through the year and has signed two new leases and renegotiated, and expanded, four pre-existing leases which has increased the size of the Group's portfolio, improved its efficiency as well as improving its cashflow and profitable, the resurgence in the serviced office market has continued through the financial year and is expected to maintain the current level of demand in 2025 subject to the current UK political situation. The shareholders have reconfirmed their commitment to the Group's expansion and ongoing operations and have agreed to provide further funding should it be required to support the Group. |
| With the significant improvement in trading and the shareholders willingness to support the Group financially, the Directors believe that it is appropriate to adopt the going concern basis of accounting in preparing the financial statements. |
| The Group has signed one new lease to commence post the financial year of these accounts but prior to this filing to increase the total square foot of office space by approx. 32,000 sqft. The Directors confirm that they are continuing to consider both lease and management opportunities for further expansion of the Group's operations. |
| DISCLOSURE IN THE STRATEGIC REPORT |
| The principal risks and uncertainties facing the group and financial key performance indicators have been considered within the Strategic Report. |
| HALKIN MANAGEMENT COMPANY LTD (REGISTERED NUMBER: 09301320) |
| Report of the Directors |
| for the year ended 31st December 2024 |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
| AUDITORS |
| The auditors, TC Group, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| HALKIN MANAGEMENT COMPANY LTD (REGISTERED NUMBER: 09301320) |
| Statement of Directors' Responsibilities |
| for the year ended 31st December 2024 |
| The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
| The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| Report of the Independent Auditors to the Members of |
| Halkin Management Company Ltd |
| Opinion |
| We have audited the financial statements of Halkin Management Company Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st December 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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: |
| - | give a true and fair view of the state of the group's and of the parent company affairs as at 31st December 2024 and of the group's loss for the year then ended; |
| - | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
| - | have been prepared in accordance with the requirements of the Companies Act 2006. |
| Basis for opinion |
| We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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. |
| Material uncertainty related 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 the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
| Our responsibilities and the responsibilities of the 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 annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual 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. |
| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of the audit: |
| - | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| Report of the Independent Auditors to the Members of |
| Halkin Management Company Ltd |
| Matters on which we are required to report by exception |
| In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
| We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
| - | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the parent company financial statements are not in agreement with the accounting records and returns; or |
| - | certain disclosures of directors' remuneration specified by law are not made; or |
| - | we have not received all the information and explanations we require for our audit. |
| Responsibilities of directors |
| As explained more fully in the Statement of Directors' Responsibilities set out on page six, 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 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 the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
| Auditors' 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. |
| Extent to which the audit was considered capable of detecting irregularities, including fraud |
| The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management. |
| The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
| - | We obtained an understanding of the legal and regulatory framework applicable to the group and the sector in which it operates, through discussions with management and those charged with governance. We identified the financial reporting framework including but not limited to United Kingdom Generally Accepted Accounting Practice and the Companies Act 2006, Data Protection Act 2018, Bribery Act 2010 and tax legislation as being of significance in the context of the group and its ongoing activities. |
| - | We made enquiries with management and those charged with governance along with reviewing board meeting minutes to confirm our understanding that the group continued to comply with the applicable legal and regulatory frameworks, and also to confirm our understanding of the specific policies and procedures enlisted by the group to ensure ongoing compliance. |
| Report of the Independent Auditors to the Members of |
| Halkin Management Company Ltd |
| - | We assessed the susceptibility of the group's financial statements to material misstatement, including how fraud may occur, and gained an understanding of the group's policies and procedures on fraud risks through discussion with the group's management. |
| - | We considered the risk of material misstatement due to fraud as a result of possible management override of controls and improper revenue recognition. In addressing this risk of fraud from the above we have tested the appropriateness of journal entries and other adjustments including a sample of manual journals along with testing revenue recognition and confirming that cut-off is appropriate. |
| - | We communicated those laws and regulations considered relevant to the group, and potential fraud risks to all engagement team members, and consider that the engagement team had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations, and remained alert to any indications of fraud throughout the audit. |
| Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error. |
| Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. |
| A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
| Use of our report |
| This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
| For and on behalf of |
| Statutory Auditor |
| Office: Croydon - TC SWP |
| 3rd Floor, Suffolk House |
| George Street |
| Croydon |
| CR0 0YN |
| HALKIN MANAGEMENT COMPANY LTD (REGISTERED NUMBER: 09301320) |
| Consolidated |
| Statement of Comprehensive |
| Income |
| for the year ended 31st December 2024 |
| 31.12.24 | 31.12.23 |
| Notes | £ | £ |
| REVENUE | 4 | 26,565,633 | 16,215,313 |
| Cost of sales | (1,651,320 | ) | (979,982 | ) |
| GROSS PROFIT | 24,914,313 | 15,235,331 |
| Administrative expenses | (24,126,626 | ) | (17,856,578 | ) |
| 787,687 | (2,621,247 | ) |
| Other operating income | 75,857 | 536,382 |
| OPERATING PROFIT/(LOSS) | 6 | 863,544 | (2,084,865 | ) |
| Profit/loss on sale of operation | 7 | - | 206,370 |
| 863,544 | (1,878,495 | ) |
| Interest receivable and similar income | 27,829 | 8,154 |
| 891,373 | (1,870,341 | ) |
| Interest payable and similar expenses | 8 | (96,932 | ) | (91,566 | ) |
| PROFIT/(LOSS) BEFORE TAXATION | 794,441 | (1,961,907 | ) |
| Tax on profit/(loss) | 9 | (1,014,603 | ) | (354,070 | ) |
| LOSS FOR THE FINANCIAL YEAR | ( |
) | ( |
) |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(220,162 |
) |
(2,315,977 |
) |
| Loss attributable to: |
| Owners of the parent | (220,162 | ) | (2,315,977 | ) |
| Total comprehensive income attributable to: |
| Owners of the parent | (220,162 | ) | (2,315,977 | ) |
| HALKIN MANAGEMENT COMPANY LTD (REGISTERED NUMBER: 09301320) |
| Consolidated Statement of Financial Position |
| 31st December 2024 |
| 31.12.24 | 31.12.23 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Property, plant and equipment | 11 | 7,457,947 | 3,472,685 |
| Investments | 12 | - | - |
| 7,457,947 | 3,472,685 |
| CURRENT ASSETS |
| Debtors | 13 | 10,830,684 | 5,960,202 |
| Cash at bank and in hand | 278,098 | 151,892 |
| 11,108,782 | 6,112,094 |
| CREDITORS |
| Amounts falling due within one year | 14 | 12,564,796 | 9,183,355 |
| NET CURRENT LIABILITIES | (1,456,014 | ) | (3,071,261 | ) |
| TOTAL ASSETS LESS CURRENT LIABILITIES | 6,001,933 | 401,424 |
| CREDITORS |
| Amounts falling due after more than one year |
15 |
(8,322,205 |
) |
(3,551,512 |
) |
| PROVISIONS FOR LIABILITIES | 19 | (1,447,548 | ) | (397,570 | ) |
| NET LIABILITIES | (3,767,820 | ) | (3,547,658 | ) |
| CAPITAL AND RESERVES |
| Called up share capital | 20 | 157,538 | 157,538 |
| Share premium | 21 | 1,314,462 | 1,314,462 |
| Retained earnings | 21 | (5,239,820 | ) | (5,019,658 | ) |
| SHAREHOLDERS' FUNDS | (3,767,820 | ) | (3,547,658 | ) |
| The financial statements were approved by the Board of Directors and authorised for issue on 24th June 2025 and were signed on its behalf by: |
| M J Kingshott - Director |
| HALKIN MANAGEMENT COMPANY LTD (REGISTERED NUMBER: 09301320) |
| Company Statement of Financial Position |
| 31st December 2024 |
| 31.12.24 | 31.12.23 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Property, plant and equipment | 11 |
| Investments | 12 |
| CURRENT ASSETS |
| Debtors | 13 |
| Cash at bank |
| CREDITORS |
| Amounts falling due within one year | 14 |
| NET CURRENT LIABILITIES | ( |
) | ( |
) |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
| PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
| NET LIABILITIES | ( |
) | ( |
) |
| CAPITAL AND RESERVES |
| Called up share capital | 20 |
| Share premium |
| Retained earnings | ( |
) | ( |
) |
| SHAREHOLDERS' FUNDS | ( |
) | ( |
) |
| Company's loss for the financial year | (241,609 | ) | (2,555,560 | ) |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| HALKIN MANAGEMENT COMPANY LTD (REGISTERED NUMBER: 09301320) |
| Consolidated Statement of Changes in Equity |
| for the year ended 31st December 2024 |
| Called up |
| share | Retained | Share | Total |
| capital | earnings | premium | equity |
| £ | £ | £ | £ |
| Balance at 1st January 2023 | 157,538 | (2,703,681 | ) | 1,314,462 | (1,231,681 | ) |
| Changes in equity |
| Total comprehensive income | - | (2,315,977 | ) | - | (2,315,977 | ) |
| Balance at 31st December 2023 | 157,538 | (5,019,658 | ) | 1,314,462 | (3,547,658 | ) |
| Changes in equity |
| Total comprehensive income | - | (220,162 | ) | - | (220,162 | ) |
| Balance at 31st December 2024 | 157,538 | (5,239,820 | ) | 1,314,462 | (3,767,820 | ) |
| HALKIN MANAGEMENT COMPANY LTD (REGISTERED NUMBER: 09301320) |
| Company Statement of Changes in Equity |
| for the year ended 31st December 2024 |
| Called up |
| share | Retained | Share | Total |
| capital | earnings | premium | equity |
| £ | £ | £ | £ |
| Balance at 1st January 2023 | ( |
) | ( |
) |
| Changes in equity |
| Total comprehensive income | - | ( |
) | - | ( |
) |
| Balance at 31st December 2023 | ( |
) | ( |
) |
| Changes in equity |
| Total comprehensive income | - | ( |
) | - | ( |
) |
| Balance at 31st December 2024 | ( |
) | ( |
) |
| HALKIN MANAGEMENT COMPANY LTD (REGISTERED NUMBER: 09301320) |
| Consolidated Statement of Cash Flows |
| for the year ended 31st December 2024 |
| 31.12.24 | 31.12.23 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 26 | 2,948,768 | 1,022,768 |
| Interest paid | (96,932 | ) | (91,566 | ) |
| Tax paid | 35,375 | - |
| Net cash from operating activities | 2,887,211 | 931,202 |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | (4,922,167 | ) | (1,315,444 | ) |
| Sale of tangible fixed assets | - | 261,476 |
| Sale of fixed asset investments | - | 2,816 |
| Interest received | 27,829 | 8,154 |
| Net cash from investing activities | (4,894,338 | ) | (1,042,998 | ) |
| Cash flows from financing activities |
| New loans in year | 3,200,000 | - |
| Loan repayments in year | (1,066,667 | ) | (400,000 | ) |
| Net cash from financing activities | 2,133,333 | (400,000 | ) |
| Increase/(decrease) in cash and cash equivalents | 126,206 | (511,796 | ) |
| Cash and cash equivalents at beginning of year |
27 |
151,892 |
663,688 |
| Cash and cash equivalents at end of year | 27 | 278,098 | 151,892 |
| HALKIN MANAGEMENT COMPANY LTD (REGISTERED NUMBER: 09301320) |
| Notes to the Consolidated Financial Statements |
| for the year ended 31st December 2024 |
| 1. | STATUTORY INFORMATION |
| The company is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page. |
| The principal activity of the company and the group continued to be that of the provision and management of shared workspaces and offices that include the necessary infrastructure, services and technology. |
| The financial statements have been prepared in sterling, the functional currency of the company, and monetary amounts in these financial statements have been rounded to the nearest £. |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| Going concern |
| The Group meets its working capital requirements through bank overdrafts, Bank and finance Loans, shareholder loans and retained profits. The Directors prepare annual budgets and multi-year forecasts in order to ensure that the company has sufficient reserves in order to meet its liabilities as they fall due. Budgets and actual results are reviewed quarterly by the Group's Directors to ensure that decisions can be made should deviations occur from the expectations budgeted. |
| The Directors have reviewed the current and future trading prospects of the Company and the Group and concluded that the going concern basis is appropriate for the presentation of these accounts. In making this assessment the directors have taken the following into consideration: |
| The Group has seen growth in its pre-existing and new operations through the year and has signed two new leases and renegotiated, and expanded, four pre-existing leases which has increased the size of the Group's portfolio, improved its efficiency as well as improving its cashflow and profitable, the resurgence in the serviced office market has continued through the financial year and is expected to maintain the current level of demand in 2025 subject to the current UK political situation. The shareholders have reconfirmed their commitment to the Group's expansion and ongoing operations and have agreed to provide further funding should it be required to support the Group. |
| With the significant improvement in trading and the shareholders willingness to support the Group financially, the Directors believe that it is appropriate to adopt the going concern basis of accounting in preparing the financial statements. |
| The Group has signed one new lease to commence post the financial year of these accounts but prior to this filing to increase the total square foot of office space by approx. 32,000 sqft. The Directors confirm that they are continuing to consider both lease and management opportunities for further expansion of the Group's operations. |
| HALKIN MANAGEMENT COMPANY LTD (REGISTERED NUMBER: 09301320) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31st December 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Basis of consolidation |
| The consolidated financial statements present the results of Halkin Management Company Limited and all of its subsidiary undertakings up to 31 December each year. Intercompany transactions and balances between group companies are therefore eliminated in full. |
| A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. |
| Where a subsidiary has different accounting policies from the group, adjustments are made to those subsidiary financial statements to apply the group's accounting policies when preparing the consolidated financial statements. |
| Turnover |
| Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
| Items of income are recognised and included in the accounts when all of the following criteria are met: |
| a) The group has entitlement to the funds; |
| b) Any performance conditions attached to the items of income have been met or are fully within the control of the group and |
| c) There is sufficient certainty that receipt of the income is considered probable and measured reliably. |
| Specific accounting policies for income recognition are as follows: |
| Rental income is recognised over the course of the rental term. |
| Tangible fixed assets |
| 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. |
| Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight line method. Depreciation is charged on the following basis: |
| Improvements to property | - over the length of the lease |
| Fixtures and fittings | - 20% on cost or over the length of the lease |
| Computer equipment | - 33% on cost or over the length of the lease |
| Gains and losses on disposal are determined by comparing the proceeds with the carrying amount and are recognised in the Consolidated Statement of Income and Retained Earnings. |
| HALKIN MANAGEMENT COMPANY LTD (REGISTERED NUMBER: 09301320) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31st December 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Financial instruments |
| The group only enters into basic financial instruments that result in the recognition of financial assets and liabilities such as trade and other debtors and creditors. |
| Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. |
| Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated Statement of Income and Retained Earnings. |
| For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the balance sheet date. |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
| Current or deferred taxation assets and liabilities are not discounted. |
| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
| Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
| Operating leases |
| Rentals paid under operating leases are charged to the Consolidated Statement of Comprehensive Income on a straight line basis over the period of the lease. |
| Pension costs and other post-retirement benefits |
| The group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the group pay fixed contributions into a separate entity. Once the contributions have been paid, the group has no further payment obligations. The contributions are recognised as an expense in the Consolidated Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from those of the group in independently administered funds. |
| HALKIN MANAGEMENT COMPANY LTD (REGISTERED NUMBER: 09301320) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31st December 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Investments |
| Fixed asset investments include investments in subsidiaries and non-controlling interests. All fixed asset investments are measured at cost less accumulated impairment. |
| Debtors |
| Short term debtors are measured at transaction price, less any impairment. |
| Cash and cash equivalents |
| Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on |
| notice of not more than 24 hours. |
| Creditors |
| Short term creditors are measured at the transaction price. |
| 3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
| In applying the group's accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying value of assets and liabilities. The directors' judgement, estimates and assumptions are based on the best and most reliable evidence at the time when the decisions are made and are based on historical experience and other factors that are considered to be applicable. Due to the inherent sensitivity involved in making judgements, estimates and assumptions, the actual results and outcomes may differ. |
| The estimates and underlying assumptions are reviewed on an ongoing basis. Any revisions to accounting estimates are recognised prospectively. |
| In assessing whether there have been any indicators of impairment to assets, the directors consider both external and internal sources of information such as market conditions and experience of recoverability and establishes a provision for receivables that are estimated not to be recoverable. |
| Determining residual values and useful economic lives of property, plant and equipment |
| The group depreciates tangible assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including technical innovation, product life cycles and maintenance programmes. |
| 4. | REVENUE |
| The whole of turnover in the year and in the prior year is attributable to the group's principal activity. All turnover in the year and in the prior year arose within the United Kingdom. |
| 5. | EMPLOYEES AND DIRECTORS |
| 31.12.24 | 31.12.23 |
| £ | £ |
| Wages and salaries | 1,957,738 | 1,760,987 |
| Social security costs | 266,704 | 215,646 |
| Other pension costs | 58,354 | 52,920 |
| 2,282,796 | 2,029,553 |
| HALKIN MANAGEMENT COMPANY LTD (REGISTERED NUMBER: 09301320) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31st December 2024 |
| 5. | EMPLOYEES AND DIRECTORS - continued |
| The average number of employees during the year was as follows: |
| 31.12.24 | 31.12.23 |
| Directors | 2 | 2 |
| Operations | 44 | 37 |
| 31.12.24 | 31.12.23 |
| £ | £ |
| Directors' remuneration | 278,500 | 187,467 |
| Directors' pension contributions to money purchase schemes | 12,425 | 8,873 |
| The number of directors to whom retirement benefits were accruing was as follows: |
| Money purchase schemes | 2 | 2 |
| Information regarding the highest paid director for the year ended 31st December 2024 is as follows: |
| 31.12.24 |
| £ |
| Emoluments etc | 145,500 |
| Pension contributions to money purchase schemes | 6,275 |
| 6. | OPERATING PROFIT/(LOSS) |
| The operating profit (2023 - operating loss) is stated after charging/(crediting): |
| 31.12.24 | 31.12.23 |
| £ | £ |
| Hire of plant and machinery | 66,766 | 91,439 |
| Other operating leases | 11,113,988 | 8,291,735 |
| Depreciation - owned assets | 936,905 | 672,908 |
| Profit on disposal of fixed assets | - | (168,940 | ) |
| Auditors' remuneration | 16,950 | 12,900 |
| Auditors' remuneration for non-audit work | 6,004 | 3,555 |
| 7. | EXCEPTIONAL ITEMS |
| 31.12.24 | 31.12.23 |
| £ | £ |
| Profit/loss on sale of operation | - | 206,370 |
| The balance in the year ended 2023 relates to the net liabilities included within the group accounts at the point when Hanover Square Offices Limited (a subsidiary company) went into liquidation. |
| HALKIN MANAGEMENT COMPANY LTD (REGISTERED NUMBER: 09301320) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31st December 2024 |
| 8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 31.12.24 | 31.12.23 |
| £ | £ |
| Loan interest | 96,932 | 91,566 |
| 9. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 31.12.24 | 31.12.23 |
| £ | £ |
| Current tax: |
| UK corporation tax | (35,375 | ) | - |
| Deferred tax | 1,049,978 | 354,070 |
| Tax on profit/(loss) | 1,014,603 | 354,070 |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| 31.12.24 | 31.12.23 |
| £ | £ |
| Profit/(loss) before tax | 794,441 | (1,961,907 | ) |
| Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 25 %) |
198,610 |
(490,477 |
) |
| Effects of: |
| Expenses not deductible for tax purposes | 95,514 | 40,563 |
| Income not taxable for tax purposes | - | (42,235 | ) |
| Capital allowances in excess of depreciation | (847,047 | ) | (579,947 | ) |
| Utilisation of tax losses | (4,905 | ) | (3,233 | ) |
| Adjustments to tax charge in respect of previous periods | 17,923 | - |
| Unrelieved tax losses carried forward | 505,577 | 1,129,004 |
| Other movements | (1,047 | ) | (53,675 | ) |
| Movement on deferred tax | 1,049,978 | 354,070 |
| Total tax charge | 1,014,603 | 354,070 |
| 10. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
| As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
| HALKIN MANAGEMENT COMPANY LTD (REGISTERED NUMBER: 09301320) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31st December 2024 |
| 11. | PROPERTY, PLANT AND EQUIPMENT |
| Group |
| Improvements | Fixtures |
| to | and | Computer |
| property | fittings | equipment | Totals |
| £ | £ | £ | £ |
| COST |
| At 1st January 2024 | 3,789,997 | 2,007,649 | 724,734 | 6,522,380 |
| Additions | 3,691,116 | 976,869 | 254,182 | 4,922,167 |
| At 31st December 2024 | 7,481,113 | 2,984,518 | 978,916 | 11,444,547 |
| DEPRECIATION |
| At 1st January 2024 | 1,043,710 | 1,488,682 | 517,303 | 3,049,695 |
| Charge for year | 682,808 | 156,296 | 97,801 | 936,905 |
| At 31st December 2024 | 1,726,518 | 1,644,978 | 615,104 | 3,986,600 |
| NET BOOK VALUE |
| At 31st December 2024 | 5,754,595 | 1,339,540 | 363,812 | 7,457,947 |
| At 31st December 2023 | 2,746,287 | 518,967 | 207,431 | 3,472,685 |
| Company |
| Improvements | Fixtures |
| to | and | Computer |
| property | fittings | equipment | Totals |
| £ | £ | £ | £ |
| COST |
| At 1st January 2024 |
| Additions |
| At 31st December 2024 |
| DEPRECIATION |
| At 1st January 2024 |
| Charge for year |
| At 31st December 2024 |
| NET BOOK VALUE |
| At 31st December 2024 |
| At 31st December 2023 |
| HALKIN MANAGEMENT COMPANY LTD (REGISTERED NUMBER: 09301320) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31st December 2024 |
| 12. | FIXED ASSET INVESTMENTS |
| Company |
| Unlisted |
| investments |
| £ |
| COST |
| At 1st January 2024 |
| and 31st December 2024 |
| NET BOOK VALUE |
| At 31st December 2024 |
| At 31st December 2023 |
| The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
| Subsidiaries |
Name |
Country of Incorporation |
Class of Shares |
Holding |
Principal Activity |
| England & Wales | Ordinary | 100% | Dormant |
| England & Wales | Ordinary | 100% | Dormant |
| England & Wales | Ordinary | 100% | In liquidation |
| England & Wales | Ordinary | 100% | Dormant |
| England & Wales | Ordinary | 100% | Property management |
| The registered office of all subsidiary companies is: 4th Floor, 10 Lower Thames Street, London, England, EC3R 6AF. |
| 13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 31.12.24 | 31.12.23 | 31.12.24 | 31.12.23 |
| £ | £ | £ | £ |
| Trade debtors | 411,088 | 458,022 |
| Amounts owed by group undertakings | - | - |
| Other debtors | 37,382 | 7,826 |
| Prepayments and accrued income | 8,108,497 | 4,489,235 |
| Rent deposits | 2,273,717 | 1,005,119 | 2,273,717 | 1,005,119 |
| 10,830,684 | 5,960,202 |
| HALKIN MANAGEMENT COMPANY LTD (REGISTERED NUMBER: 09301320) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31st December 2024 |
| 14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 31.12.24 | 31.12.23 | 31.12.24 | 31.12.23 |
| £ | £ | £ | £ |
| Bank loans and overdrafts (see note 16) | 400,000 | 400,000 |
| Trade creditors | 5,533,239 | 4,252,196 |
| Amounts owed to group undertakings | - | - |
| Social security and other taxes | 83,086 | 79,767 |
| VAT | 362,264 | 161,311 | 365,261 | 158,139 |
| Other creditors | 5,611,446 | 3,923,045 |
| Accruals and deferred income | 574,761 | 367,036 |
| 12,564,796 | 9,183,355 |
| 15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| Group | Company |
| 31.12.24 | 31.12.23 | 31.12.24 | 31.12.23 |
| £ | £ | £ | £ |
| Bank loans (see note 16) | 2,800,000 | 666,667 |
| Accruals and deferred income | 5,522,205 | 2,884,845 |
| 8,322,205 | 3,551,512 |
| Accruals includes £5,522,205 (2023: £2,884,845) in respect of a rent free period provided to the company on taking up a lease. This will released to the profit and loss account over the length of the lease in line with standard accounting practice. |
| 16. | LOANS |
| An analysis of the maturity of loans is given below: |
| Group | Company |
| 31.12.24 | 31.12.23 | 31.12.24 | 31.12.23 |
| £ | £ | £ | £ |
| Amounts falling due within one year or on | demand: |
| Bank loans | 400,000 | 400,000 |
| Amounts falling due between one and two | years: |
| Bank loans - 1-2 years | 400,000 | 400,000 |
| Amounts falling due between two and five | years: |
| Bank loans - 2-5 years | 2,400,000 | 266,667 |
| The loan is provided by FDC General Partner Limited and is secured by way of a fixed and floating charge over the assets of the company. The loan bears interest at 9% p.a. and is repayable by 31 December 2029. |
| HALKIN MANAGEMENT COMPANY LTD (REGISTERED NUMBER: 09301320) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31st December 2024 |
| 17. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Group |
| Non-cancellable operating | leases |
| 31.12.24 | 31.12.23 |
| £ | £ |
| Within one year | 13,522,965 | 7,040,293 |
| Between one and five years | 56,024,142 | 22,623,830 |
| In more than five years | 92,125,763 | 38,093,608 |
| 161,672,870 | 67,757,731 |
| Company |
| Non-cancellable operating | leases |
| 31.12.24 | 31.12.23 |
| £ | £ |
| Within one year |
| Between one and five years |
| In more than five years |
| HALKIN MANAGEMENT COMPANY LTD (REGISTERED NUMBER: 09301320) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31st December 2024 |
| 18. | FINANCIAL INSTRUMENTS |
| Group | Company |
| 31.12.24 | 31.12.23 | 31.12.24 | 31.12.23 |
| £ | £ | £ | £ |
| Financial assets |
| Financial assets measured at fair value through profit or loss |
278,098 |
151,892 |
268,614 |
148,320 |
| Financial assets that are debt instruments measured at amortised cost |
510,167 |
762,950 |
513,128 |
779,203 |
| 788,265 | 914,842 | 781,742 | 927,523 |
| Financial liabilities |
| Financial liabilities measured at amortised cost |
14,623,406 |
9,328,139 |
14,615,513 |
9,329,117 |
| Financial assets measured at fair value through profit or loss comprise cash and bank in hand. |
| Financial assets measured at amortised cost comprise trade debtors, amounts due from related undertakings, other debtors and accrued income. |
| Financial liabilities measured at amortised cost include bank facilities, trade creditors, other creditors, amounts owed to related undertakings and accruals. |
| 19. | PROVISIONS FOR LIABILITIES |
| Group | Company |
| 31.12.24 | 31.12.23 | 31.12.24 | 31.12.23 |
| £ | £ | £ | £ |
| Deferred tax |
| Accelerated capital allowances | 1,447,548 | 397,570 |
| Group |
| Deferred |
| tax |
| £ |
| Balance at 1st January 2024 | 397,570 |
| Charge to Statement of Comprehensive Income during year | 1,049,978 |
| Balance at 31st December 2024 | 1,447,548 |
| HALKIN MANAGEMENT COMPANY LTD (REGISTERED NUMBER: 09301320) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31st December 2024 |
| 19. | PROVISIONS FOR LIABILITIES - continued |
| Company |
| Deferred |
| tax |
| £ |
| Balance at 1st January 2024 |
| Charge to Statement of Comprehensive Income during year |
| Balance at 31st December 2024 |
| 20. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 31.12.24 | 31.12.23 |
| value: | £ | £ |
| Ordinary | £1 | 157,538 | 157,538 |
| There is a single class of ordinary share. There are no restrictions on the distribution of dividends or the repayment of capital. |
| 21. | RESERVES |
| Group |
| Retained | Share |
| earnings | premium | Totals |
| £ | £ | £ |
| At 1st January 2024 | (5,019,658 | ) | 1,314,462 | (3,705,196 | ) |
| Deficit for the year | (220,162 | ) | (220,162 | ) |
| At 31st December 2024 | (5,239,820 | ) | 1,314,462 | (3,925,358 | ) |
| Company |
| Retained | Share |
| earnings | premium | Totals |
| £ | £ | £ |
| At 1st January 2024 | ( |
) | (3,684,750 | ) |
| Deficit for the year | ( |
) | ( |
) |
| At 31st December 2024 | ( |
) | (3,926,359 | ) |
| 22. | PENSION COMMITMENTS |
| The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independent administered fund. The pension cost charge represents contributions payable by the company to fund and amounted to £58,354 (2023 - £52,920). Contributions totalling £8,296 (2023 - £10,659) were payable to the fund at the balance sheet date and are included within creditors. |
| HALKIN MANAGEMENT COMPANY LTD (REGISTERED NUMBER: 09301320) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31st December 2024 |
| 23. | RELATED PARTY DISCLOSURES |
| No disclosure has been made of transactions with the company's wholly owned subsidiaries in accordance with FRS 102 Section 33 Paragraph 33.1A. Detailed of related party transactions are described below: |
| During the year the group recharged a total of £426,692 for shared staff and general running costs (2023 - £1,025,655) and incurred capital and operating expenditure of £4,343,964 (2023 - £3,773,276) to companies under common control. At the balance sheet date, a total of £37,019 (2023 - £388,698) remained outstanding from these companies to the group and a total of £680,626 (2023 - £597,591) remained outstanding from the group to these companies. |
| During the year the group incurred operating expenditure of £nil (2023 - £5,000) to entities that provided key management personnel services. At the balance sheet date, a total of £nil (2023 - £nil) remained outstanding from these entities to the group. |
| 24. | EVENTS AFTER THE REPORTING PERIOD |
| The Group has signed one new lease to commence post the financial year of these accounts but prior to this filing to increase the total square foot of office space by approx. 32,000 sqft. The Directors confirm that they are continuing to consider both lease and management opportunities for further expansion of the Group's operations. |
| 25. | ULTIMATE CONTROLLING PARTY |
| At the balance sheet date, in the view of the directors there is no overall controlling party. |
| 26. | RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 31.12.24 | 31.12.23 |
| £ | £ |
| Profit/(loss) before taxation | 794,441 | (1,961,907 | ) |
| Depreciation charges | 936,905 | 672,908 |
| Profit on disposal of fixed assets | - | (168,940 | ) |
| Finance costs | 96,932 | 91,566 |
| Finance income | (27,829 | ) | (8,154 | ) |
| 1,800,449 | (1,374,527 | ) |
| Increase in trade and other debtors | (4,870,482 | ) | (1,246,560 | ) |
| Increase in trade and other creditors | 6,018,801 | 3,643,855 |
| Cash generated from operations | 2,948,768 | 1,022,768 |
| HALKIN MANAGEMENT COMPANY LTD (REGISTERED NUMBER: 09301320) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31st December 2024 |
| 27. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
| Year ended 31st December 2024 |
| 31.12.24 | 1.1.24 |
| £ | £ |
| Cash and cash equivalents | 278,098 | 151,892 |
| Year ended 31st December 2023 |
| 31.12.23 | 1.1.23 |
| £ | £ |
| Cash and cash equivalents | 151,892 | 663,688 |
| 28. | ANALYSIS OF CHANGES IN NET DEBT |
| At 1.1.24 | Cash flow | At 31.12.24 |
| £ | £ | £ |
| Net cash |
| Cash at bank and in hand | 151,892 | 126,206 | 278,098 |
| 151,892 | 126,206 | 278,098 |
| Debt |
| Debts falling due within 1 year | (400,000 | ) | - | (400,000 | ) |
| Debts falling due after 1 year | (666,667 | ) | (2,133,333 | ) | (2,800,000 | ) |
| (1,066,667 | ) | (2,133,333 | ) | (3,200,000 | ) |
| Total | (914,775 | ) | (2,007,127 | ) | (2,921,902 | ) |