The Hurlingham Polo Association - Period Ending 2021-12-31

The Hurlingham Polo Association

Contents

Balance Sheet	1 to 2
Notes to the Financial Statements	3 to 9

The Hurlingham Polo Association

(Registration number: 05049372)
Balance Sheet as at 31 December 2021

	Note	2021 £	2020 £
Fixed assets
Tangible assets	5	5,164	5,611
Investments in subsidiaries	6	2	2
Listed investments	7	801,951	752,301
		807,117	757,914
Current assets
Debtors	8	76,813	85,750
Cash at bank and in hand		673,244	433,612
		750,057	519,362
Creditors: Amounts falling due within one year	9	(134,142)	(102,816)
Net current assets		615,915	416,546
Net assets		1,423,032	1,174,460
Capital and reserves
Profit and loss account		1,423,032	1,174,460
Total equity		1,423,032	1,174,460

The Hurlingham Polo Association

(Registration number: 05049372)
Balance Sheet as at 31 December 2021

For the financial year ending 31 December 2021 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.

Approved and authorised by the Board on 16 August 2022 and signed on its behalf by:
 

......................................... Mr Nicholas Winston Braid Wiles Chairman

The Hurlingham Polo Association

Notes to the Financial Statements for the Year Ended 31 December 2021

1	General information

The company is a company limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £1 towards the assets of the company in the event of liquidation.

The address of its registered office is:
Manor Farm
Little Coxwell
Faringdon
Oxfordshire
SN7 7LW

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.

Covid 19 and going concern

The years 2020 and 2021 were inevitably overshadowed by the effect of the Covid 19 pandemic, which was ongoing in both years. Due to the decisions taken by the directors, the HPA continued to trade profitably throughout the duration of the pandemic and the company is well placed to resume normal operations during 2022 and beyond.

The HPA continues to have access to significant liquid resources and these can be augmented, if necessary by utilising some of its reserves, which have been accumulated to provide protection in times of need.
Therefore the directors have a reasonable expectation that the HPA will continue to have sufficient financial resources available to enable it to meet its liabilities as they fall due for the foreseeable future, being not less than one year from the date on which these financial statements were signed, including the provision of support to the subsidiary company, HPA Commercial Limited (see also note 11).
These financial statements have therefore been drawn up on the going concern basis, which assumes that this will be the case.

Revenue recognition

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

Tax

The tax expense for the period comprises current tax payable and deferred tax.

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 tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and are expected to apply to the reversal of the timing difference.

The Hurlingham Polo Association

Notes to the Financial Statements for the Year Ended 31 December 2021

Tangible assets

Tangible assets are stated in the balance sheet 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, over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Office equipment	20% straight line

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less 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.

Trade creditors

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

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.

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

Taxation

	2021		2020
	£		£
Corporation tax	32,045		14,548
Deferred tax	-		-
	32,045		14,548

The Hurlingham Polo Association

Notes to the Financial Statements for the Year Ended 31 December 2021

4	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 24 (2020 - 22).

5	Tangible assets

	Office equipment £	Total £
Cost or valuation
At 1 January 2021	35,440	35,440
Additions	1,393	1,393
At 31 December 2021	36,833	36,833
Depreciation
At 1 January 2021	29,829	29,829
Charge for the year	1,840	1,840
At 31 December 2021	31,669	31,669
Carrying amount
At 31 December 2021	5,164	5,164
At 31 December 2020	5,611	5,611

The Hurlingham Polo Association

Notes to the Financial Statements for the Year Ended 31 December 2021

6	Investments

	2021 £	2020 £
Investments in subsidiaries	2	2

Subsidiaries	£
Cost or valuation
At 1 January 2021	2
Provision
Carrying amount
At 31 December 2021	2
At 31 December 2020	2

Details of undertakings

Details of the investments (including principal place of business of incorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking	Registered office	Holding	Proportion of voting rights and shares held
			2021	2020
Subsidiary undertakings
HPA Commercial Limited	Manor Farm, Little Coxwell, Faringdon, Oxfordshire, SN7 7LW England & Wales	Ordinary	100%	100%
HPA Events Limited	Manor Farm, Little Coxwell, Faringdon, Oxfordshire, SN7 7LW England & Wales	Ordinary	100%	100%

HPA Events Limited is dormant and has never traded.

HPA Commercial Limited

Until 31 December 2018 the principal activity of HPA Commercial Limited was brand licensing. Since 1 January 2019 HPA Commercial Limited has also been responsible for all the commercial activities formerly carried on by The HPA.

The profit for the financial period of HPA Commercial Limited was £143,007 (2020: £89,815) and the aggregate amount of capital and reserves at the end of the period was (£431,935) (2020: (£574,942)).

The Hurlingham Polo Association

Notes to the Financial Statements for the Year Ended 31 December 2021

7	Listed investments

	Financial assets at fair value through profit and loss £	Total £
Non-current financial assets
Cost or valuation
At 1 January 2021	752,301	752,301
Fair value adjustments	36,615	36,615
Additions	13,035	13,035
At 31 December 2021	801,951	801,951
Carrying amount
At 31 December 2021	801,951	801,951

Included within the total investment balance of £801,951 (2020: £752,301) is a cash balance of £13,963 (2020: £928).

The aggregate cost of the listed investments held is £603,554 (2020: £603,554).

8

Debtors

	2021 £	2020 £
Trade debtors	26,879	31,869
Prepayments	49,934	32,602
Other debtors	-	21,279
	76,813	85,750

The Hurlingham Polo Association

Notes to the Financial Statements for the Year Ended 31 December 2021

9

Creditors

Creditors: amounts falling due within one year

	2021 £	2020 £
Due within one year
Trade creditors	9,965	15,421
Taxation and social security	41,817	22,351
Other creditors	82,360	65,044
	134,142	102,816

10	Related party transactions

During the period rent of £10,000 (2020: £12,000) was paid to the Chief Executive, D J B Woodd, for the premises used by the Association for administrative purposes. 10% of this rent was recharged to HPA Commercial Ltd for their use of the premises.
At the balance sheet date a creditor of £2,943 (2020: £7,068) was owed to D J B Woodd by the company.

In order to optimise operational efficiency and maximise the exploitation of the Hurlingham brand, the company has two wholly owned subsidiary companies, being:

HPA Commercial Limited (formerly HPA Licensing Limited).
HPA Events Limited

In the initial years of trading, HPAC's principal activity was the licensing of the Hurlingham brand and, in common with many start-up businesses, trading losses were sustained.

The HPA provided all the cash funding to cover the working capital requirements of HPAC and gave assurances that it would provide such additional funds as were necessary to enable it to meet its liabilities as they fall due. In addition, the HPA confirmed that it would not require repayment of amounts already advanced unless HPAC would remain solvent following such repayment.

All funds advanced to HPAC are provided for in full in the HPA's annual accounts and the balance was £520,061 (2020: £584,825).

With effect from 1 January 2019, HPAC assumed responsibility for all the commercial activities of the group and has generated profits before tax of £106,527 and £143,007 in the years ended 31 December 2020 and 2021 respectively.

Assuming that HPAC continues to trade profitably and in accordance with its agreed business plan it is hoped that the company will become self-financing and surplus cash will be returned to the HPA as circumstances allow.

In the meantime, the HPA will continue to provide ongoing financial support to HPAC as explained above.

HPA Events Limited as a wholly owned subsidiary is a dormant company and a creditor balance of £1 is payable to this company at the year end. This represents the share capital acquired by the Hurlingham Polo Association.

The Hurlingham Polo Association

Notes to the Financial Statements for the Year Ended 31 December 2021

12 Controlling party

The company is under the common control of its members, and therefore there is no single individual or party that can, or does, have overall control of The Hurlingham Polo Association.

The company is a private company limited by guarantee and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £1 towards the assets of the company in the event of liquidation.

The income and property of the company shall be applied solely towards the promotion of its stated objectives and no part thereof shall be paid or transferred directly or indirectly, by way of dividend or otherwise to the members of the company.