REGISTERED NUMBER: 07362725 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH SEPTEMBER 2025

FOR

HESMONDS STUD LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

Mrs A C Edwards

A C Fry

REGISTERED OFFICE:

East Hoathly

Lewes

East Sussex

BN8 6EL

REGISTERED NUMBER:

07362725 (England and Wales)

ACCOUNTANTS:

Currie Accountancy Limited

Chartered Accountants

First Floor

13a High Street

Edenbridge

Kent

TN8 5AB

FIXED ASSETS

Intangible assets

4

73,125

81,250

Tangible assets

5

3,477,286

3,727,205

3,550,411

3,808,455

CURRENT ASSETS

Stocks

6

5,772,818

5,915,052

Debtors: amounts falling due within one year

7

5,064,746

549,252

Debtors: amounts falling due after more than one year

7

3,709,156

3,562,212

Cash at bank and in hand

60,442

1,654,416

14,607,162

11,680,932

CREDITORS

Amounts falling due within one year

8

49,681,507

48,087,855

NET CURRENT LIABILITIES

(35,074,345

)

(36,406,923

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(31,523,934

)

(32,598,468

)

CAPITAL AND RESERVES

Called up share capital

100

100

Retained earnings

(31,524,034

)

(32,598,568

)

SHAREHOLDERS' FUNDS

(31,523,934

)

(32,598,468

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30th September 2025.

The members have not required the company to obtain an audit of its financial statements for the year ended 30th September 2025 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 25th June 2026 and were signed on its behalf by:

Mrs A C Edwards - Director

1.	STATUTORY INFORMATION

Hesmonds Stud Limited 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 presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern

The directors consider the company to be a going concern on the basis that the loan from the holding company is repayable only as and when the resources of the company permit repayment and that the controlling party will continue to provide his personal security for the bank borrowing. The directors are confident that the holding company and the controlling party have the means and the intention to continue to support the cash flow the company requires for its day to day operations.

Revenue recognition

Turnover represents amounts received or receivable for goods and services provided in the normal course of business, together with net race winnings received or receivable. It is stated net of discounts and value added tax.

Income from the sale of bloodstock at public auction sales is recognised on the fall of the hammer. Income from the sale of bloodstock through private transactions is recognised when the sale has been contractually agreed.

Income from boarding horses is recognised for the dates the animal is stabled on site.

Race winnings and breeders premiums are recognised in the period when the race is run.

Stallion income shares are paid net of the expenses of the stud at which the stallion stands. The income share is recognised in the period when the terms of the nomination agreements have been fully satisfied such that the nomination fees become due.

Breeding rights

The company purchased a breeding right in a stallion which it can use or transfer to another breeder for a fee. The cost of the breeding right is written down over the breeding life of the stallion.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Improvements to property

-

over the term of the lease

Plant and machinery

-

10% on reducing balance

Motor vehicles

-

25% on reducing balance

Office equipment

-

10% on reducing balance

The land on which the stud operates is owned by the holding company. In June 2018 a lease was signed for a term of 25 years for a peppercorn rent.

Stocks

Stock comprises biological assets and land held for resale in the ordinary course of business. Biological assets comprise thoroughbred bloodstock at stud and horses in training which are held for sale. The animals are valued individually at the lower of cost and market value.

The book value of each animal is considered on an annual basis and impairment adjustments are made where necessary. No systematic depreciation charges are made. The cost of homebred foals is determined as the nomination fee paid plus the cost of keeping the mare during the gestation period. The cost of homebred foals and yearlings is increased by the cost of their keep from the date of weaning, which is assumed to be 1st October, until they are sold or transferred to training.

Land held for resale is included at the lower of cost, which includes professional fees, and net realisable value.

Financial instruments

Sections 11, 'Basic Financial Instruments' and 12 'Other Financial Instruments Issues' of FRS 102 are applied in full.

Forward foreign currency exchange contracts are accounted for at fair value. These comprise a financial asset and a financial liability which are netted off. Fair value is the profit to be earned at the maturity date discounted back to the balance sheet date.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 5 (2024 - 4 ) .

4.	INTANGIBLE FIXED ASSETS

Patents

and

licences

£

COST

At 1st October 2024

and 30th September 2025

130,000

AMORTISATION

At 1st October 2024

48,750

Amortisation for year

8,125

At 30th September 2025

56,875

NET BOOK VALUE

At 30th September 2025

73,125

At 30th September 2024

81,250

5.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

property

machinery

fittings

£

£

£

COST

At 1st October 2024

5,072,516

258,471

42,261

Disposals

-

(32,205

)

-

Impairments

(137,889

)

-

-

At 30th September 2025

4,934,627

226,266

42,261

DEPRECIATION

At 1st October 2024

1,435,333

184,362

29,607

Charge for year

137,559

6,641

1,265

Eliminated on disposal

-

(23,937

)

-

Impairments

(42,810

)

-

-

At 30th September 2025

1,530,082

167,066

30,872

NET BOOK VALUE

At 30th September 2025

3,404,545

59,200

11,389

At 30th September 2024

3,637,183

74,109

12,654

Motor

Office

vehicles

equipment

Totals

£

£

£

COST

At 1st October 2024

56,695

8,341

5,438,284

Disposals

(44,200

)

-

(76,405

)

Impairments

-

-

(137,889

)

At 30th September 2025

12,495

8,341

5,223,990

DEPRECIATION

At 1st October 2024

55,629

6,148

1,711,079

Charge for year

59

217

145,741

Eliminated on disposal

(43,369

)

-

(67,306

)

Impairments

-

-

(42,810

)

At 30th September 2025

12,319

6,365

1,746,704

NET BOOK VALUE

At 30th September 2025

176

1,976

3,477,286

At 30th September 2024

1,066

2,193

3,727,205

6.

STOCKS

2025

2024

£

£

Yearlings

1,658,449

553,350

Stallion shares

250,000

260,000

Horses in training

1,427,133

2,806,633

Cattle

-

73,722

3,335,582

3,693,705

Land

2,437,236

2,221,347

5,772,818

5,915,052

The bloodstock valuation, which is compared to cost, is provided by the directors.

7.

DEBTORS

2025

2024

£

£

Amounts falling due within one year:

Trade debtors

4,959,725

431,724

Related company loan

54,307

53,660

Director's deferred benefit

11,593

11,593

Directors' loan accounts

2,915

1,031

VAT

9,534

82

Prepayments

26,672

51,162

5,064,746

549,252

2025

2024

£

£

Amounts falling due after more than one year:

Director's deferred benefit

101,322

106,410

Related company loan

3,512,362

3,354,013

Directors' loan accounts

95,472

101,789

3,709,156

3,562,212

Aggregate amounts

8,773,902

4,111,464

In the years ended 30th September 2023 and 2024 the company made loans to a French company, Sumbe SAS, of £5,377,734 repayable over ten years with interest charged at 1%. This company and Sumbe SAS are under common control. In accordance with FRS 102 these loans are shown at the net present value of the loan discounted over the term at the market rate of interest when the loan was made. The interest receivable on the carrying amounts of the loans is shown at the market rate in the profit and loss account. The differences between the carrying amounts of the loans and the monies lent are shown as distributions when the loan was made.

In the years ended 30th September 2023 and 2024 the difference between the carrying amounts of the loans and the monies lent was shown as related company loans.The comparatives is these accounts have been adjusted to show these differences being shown as a distribution.

The balances on these loans without accounting for the discounting to current value were £5,430,777 (2024 £5,366,012).

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Bank loans and overdrafts

605

-

Trade creditors

104,777

297,727

Amounts owed to group undertakings

47,768,093

47,768,093

Taxation and social security

926

756

Other creditors

1,807,106

21,279

49,681,507

48,087,855

9.	SECURED DEBTS

The following secured debts are included within creditors:

2025

2024

£

£

Bank overdraft

605

-

The bank loans and overdrafts are secured by a right of lien on all current and future assets and rights of the company and by the personal guarantee of the controlling party, N Bizakov.

10.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 30th September 2025 and 30th September 2024:

2025

2024

£

£

A C Fry

Balance outstanding at start of year

220,822

233,134

Amounts repaid

(9,521

)

(12,312

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

211,301

220,822

Interest is charged on the loan made to the director, T Fry, but this is below market rate. In accordance with FRS 102 the loan is shown at the net present value of the loan discounted over the term at the market rate of interest. The interest receivable is shown at market rate in the profit and loss account with the difference shown as part of the director's remuneration each year. The loan is repayable by 2041 and is shown, with the associated deferred benefit balance in debtors due in more than one year and debtors due in less than one year as appropriate.

11.	RELATED PARTY DISCLOSURES

12.	ULTIMATE CONTROLLING PARTY