Hirds (Halifax) Limited - Period Ending 2019-10-31

Registration number: 08084128

Prepared for the registrar

Hirds (Halifax) Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 October 2019

Hirds (Halifax) Limited

Contents

Company Information	1
Balance Sheet	2 to 3
Notes to the Financial Statements	4 to 10

Hirds (Halifax) Limited

Company Information

Directors

T Booth W E Burt S Dumbleton C Lockett P Scholefield

Registered office

2 King Street Halifax West Yorkshire HX1 1SR

Accountants

Hazlewoods LLP Staverton Court Staverton Cheltenham GL51 0UX

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Hirds (Halifax) Limited

(Registration number: 08084128)
Balance Sheet as at 31 October 2019

	Note	2019  £	2018  £
Fixed assets
Tangible assets	4	1,505,059	1,536,735
Current assets
Debtors	5	117,669	106,702
Cash at bank and in hand		45,106	58,130
		162,775	164,832
Creditors: Amounts falling due within one year	6	(538,937)	(683,810)
Net current liabilities		(376,162)	(518,978)
Total assets less current liabilities		1,128,897	1,017,757
Creditors: Amounts falling due after more than one year	6	(443,001)	(489,667)
Deferred tax liabilities	7	(52,969)	(51,480)
Net assets		632,927	476,610
Capital and reserves
Called up share capital		1,250	1,250
Profit and loss account		631,677	475,360
Total equity		632,927	476,610

For the financial year ending 31 October 2019 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 4 to 10 form an integral part of these financial statements.
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Hirds (Halifax) Limited

(Registration number: 08084128)
Balance Sheet as at 31 October 2019

Approved and authorised by the Board on 5 March 2020 and signed on its behalf by:
 

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

T Booth
Director

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

W E Burt
Director

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

S Dumbleton
Director

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

C Lockett
Director

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

P Scholefield
Director

The notes on pages 4 to 10 form an integral part of these financial statements.
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Hirds (Halifax) Limited

Notes to the Financial Statements for the Year Ended 31 October 2019

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 King Street
Halifax
West Yorkshire
HX1 1SR
England

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 for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the company's ability to continue as a going concern. For example, it is difficult to evaluate all of the potential implications of the current COVID-19 outbreak on the company's trade, employees, customers, suppliers and the wider economy.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

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Hirds (Halifax) Limited

Notes to the Financial Statements for the Year Ended 31 October 2019

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and 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 and after eliminating sales within the company.

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.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

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.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

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.

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
Freehold property	2% of cost
Leasehold property	Over the term of the lease

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.

Trade debtors

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

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

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Hirds (Halifax) Limited

Notes to the Financial Statements for the Year Ended 31 October 2019

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. 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.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

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.

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.

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Hirds (Halifax) Limited

Notes to the Financial Statements for the Year Ended 31 October 2019

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
 

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was as follows:

	2019  No.	2018  No.
Average number of employees	92	83

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Hirds (Halifax) Limited

Notes to the Financial Statements for the Year Ended 31 October 2019

4

Tangible assets

	Land and buildings £	Total £
Cost
At 1 November 2018	1,652,286	1,652,286
Additions	13,248	13,248
At 31 October 2019	1,665,534	1,665,534
Depreciation
At 1 November 2018	115,551	115,551
Charge for the year	44,924	44,924
At 31 October 2019	160,475	160,475
Carrying amount
At 31 October 2019	1,505,059	1,505,059
At 31 October 2018	1,536,735	1,536,735

Included within the net book value of land and buildings above is £1,423,576 (2018 - £1,445,648) in respect of freehold land and buildings and £81,483 (2018 - £91,087) in respect of short leasehold land and buildings.
 

5

Debtors

	2019  £	2018  £
Trade debtors	2,300	6,004
Other debtors	115,369	100,698
	117,669	106,702

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Hirds (Halifax) Limited

Notes to the Financial Statements for the Year Ended 31 October 2019

6

Creditors

Creditors: amounts falling due within one year

	Note	2019  £	2018  £
Due within one year
Loans and borrowings	8	49,000	47,000
Trade creditors		1,832	1,114
Social security and other taxes		187,611	155,858
Outstanding defined contribution pension costs		10,549	4,236
Other creditors		142,161	339,536
Accrued expenses		113,952	95,017
Corporation tax liability		33,832	41,049
		538,937	683,810
Due after one year
Loans and borrowings	8	443,001	489,667

Creditors: amounts falling due after more than one year

	Note	2019 £	2018 £
Due after one year
Loans and borrowings	8	443,001	489,667

7

Deferred tax

Deferred tax assets and liabilities

2019	Liability £
Difference between accumulated depreciation and capital allowances	52,969

2018	Liability £
Difference between accumulated depreciation and capital allowances	51,480

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Hirds (Halifax) Limited

Notes to the Financial Statements for the Year Ended 31 October 2019

8

Loans and borrowings

	2019 £	2018 £
Current loans and borrowings
Bank borrowings	47,000	47,000
Other borrowings	2,000	-
	49,000	47,000

	2019 £	2018 £
Non-current loans and borrowings
Bank borrowings	443,001	489,667

9

Related party transactions

Summary of transactions with key management

The key management personnel of the company are considered to be the directors.

As at 31 October 2019, the company owed the directors £2,000 (2018 - £nil). This amount is included within other borrowings. There are no fixed repayment terms and no interest is charged on the outstanding amount.
 

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