Highclere Thoroughbred Racing Limited - Period Ending 2018-11-30

Registration number: 02682549

Highclere Thoroughbred Racing Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 30 November 2018

Highclere Thoroughbred Racing Limited

Contents

Balance Sheet	1 to 2
Notes to the Financial Statements	3 to 8

Highclere Thoroughbred Racing Limited

(Registration number: 02682549)
Balance Sheet as at 30 November 2018

	Note	2018 £	2017 £
Fixed assets
Tangible assets	4	113,944	86,475
Investments	5	44,979	44,976
		158,923	131,451
Current assets
Stocks	6	4,068,736	4,275,897
Debtors	7	4,018,759	3,656,280
Cash at bank and in hand		1,502,061	2,374,318
		9,589,556	10,306,495
Creditors: Amounts falling due within one year	8	(8,690,959)	(9,890,515)
Net current assets		898,597	415,980
Net assets		1,057,520	547,431
Capital and reserves
Called up share capital		100	100
Profit and loss account		1,057,420	547,331
Total equity		1,057,520	547,431

For the financial year ending 30 November 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

The notes on pages 3 to 8 form an integral part of these financial statements.

Page 1

Highclere Thoroughbred Racing Limited

(Registration number: 02682549)
Balance Sheet as at 30 November 2018

Approved and authorised by the Board on 30 August 2019 and signed on its behalf by:
 

.........................................

The Hon H M Herbert
Director

The notes on pages 3 to 8 form an integral part of these financial statements.

Page 2

Highclere Thoroughbred Racing Limited

Notes to the Financial Statements for the Year Ended 30 November 2018

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
2 Old Bath Road
Newbury
Berkshire
RG14 1QL
 

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Summary of disclosure exemptions

The company has taken advantage of exemptions conferred by Financial Reporting Standard 102 - Related Party Disclosures not to disclose transactions between wholly owned members of the same group.

Group accounts not prepared

The company is part of a small group. The company has taken advantage of the exemption provided by Section 398 of the Companies Act 2006 and has not prepared group accounts.

Revenue recognition

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

Finance costs

Finance costs are charged to the Statement of comprehensive income 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.

Foreign currency transactions and balances

The Company's functional and presentational currency is GBP.

Foreign currency transactions are translated into functional currency using spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Page 3

Highclere Thoroughbred Racing Limited

Notes to the Financial Statements for the Year Ended 30 November 2018

Tax

The tax expense for the period comprises current tax payable.

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 taxable income.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Short-term leasehold property	Over length of lease
Plant and machinery	50% straight line
Motor vehicles	25% straight line
Fixtures and fittings	10% - 30% straight line

Investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Stocks

Horses in training are valued at the lower of cost and net realisable value.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to the Statement of comprehensive income on a straight line basis over the lease term.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Page 4

Highclere Thoroughbred Racing Limited

Notes to the Financial Statements for the Year Ended 30 November 2018

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 16 (2017 - 14).

Page 5

Highclere Thoroughbred Racing Limited

Notes to the Financial Statements for the Year Ended 30 November 2018

4	Tangible assets

	Short leasehold land and buildings £	Fixtures and fittings £	Plant and machinery £	Motor vehicles  £	Total £
Cost or valuation
At 1 December 2017	44,432	199,046	22,630	107,020	373,128
Additions	12,108	6,126	737	92,950	111,921
Disposals	(44,432)	(34,649)	(3,760)	(52,500)	(135,341)
At 30 November 2018	12,108	170,523	19,607	147,470	349,708
Depreciation
At 1 December 2017	44,431	149,597	20,820	71,805	286,653
Charge for the year	1,211	17,518	2,178	36,867	57,774
Eliminated on disposal	(44,431)	(34,222)	(3,760)	(26,250)	(108,663)
At 30 November 2018	1,211	132,893	19,238	82,422	235,764
Carrying amount
At 30 November 2018	10,897	37,630	369	65,048	113,944
At 30 November 2017	1	49,449	1,810	35,215	86,475

5	Investments

	2018 £	2017 £
Investments in subsidiaries	7	4
Other investments	44,972	44,972
	44,979	44,976

Page 6

Highclere Thoroughbred Racing Limited

Notes to the Financial Statements for the Year Ended 30 November 2018

Subsidiaries	£
Cost or valuation
At 1 December 2017	4
Additions	3
At 30 November 2018	7
Provision
Carrying amount
At 30 November 2018	7
At 30 November 2017	4

Bronzes/trophies etc held at cost less impairment	£
Cost
At 1 December 2017	44,972
Provision
Carrying amount
At 30 November 2018	44,972
At 30 November 2017	44,972

6

Stocks

	2018 £	2017 £
Horses in training	4,068,736	4,275,897

Page 7

Highclere Thoroughbred Racing Limited

Notes to the Financial Statements for the Year Ended 30 November 2018

7

Debtors

	2018 £	2017 £
Trade debtors	2,785,254	3,197,887
Amounts owed by group undertakings	267,536	254,095
Prepayments	36,926	82,813
Other debtors	929,043	121,485
	4,018,759	3,656,280

8

Creditors

Creditors: amounts falling due within one year

	2018 £	2017 £
Due within one year
Trade creditors	1,293,852	1,737,362
Amounts owed to managed syndicates	6,825,887	6,963,257
Taxation and social security	494,497	684,526
Other creditors	76,723	505,370
	8,690,959	9,890,515

9	Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £130,080 (2017 - £173,440).

10	Related party transactions

Transactions with directors

2018	At 1 December 2017 £	Advances to directors £	At 30 November 2018 £
The Hon H M Herbert
Director loan account on which interest is charged at HMRC's official rate	(349,723)	1,146,994	797,271

Page 8