| Hubstar Group Limited |
| Notes to the Accounts |
| for the period from 1 March 2021 to 31 December 2021 |
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| 1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). |
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Group accounts |
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The company has taken advantage of the exemptions allowed under sections 384 and 399(2A) of the Companies Act 2006 to prepare group accounts as the company and the group qualifies as a small group under section 383 of that Act. According the accounts only reflect the results of the company and not the group as a whole. |
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Going concern |
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The company is dependent on loans from the director, who is the sole shareholder to provide working capital and to enable it to pay its liabilities as they fall due. The director has confirmed that he will continue to provide this support for the foreseeable future and will not seek repayment of the amounts due to him until there are alternative sources of finance available. As such, £1,790,000 of these loans, which are interest free are under FRS102 classed as capital contributions and presented as such. On this basis and in conjunction with their forecasts for the coming twelve months the director is satisfied that the company is a going concern and accordingly the accounts have been prepared on that basis. |
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Investments |
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Investments in subsidiaries are measured at cost less any accumulated impairment losses. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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| 2 |
Employees |
31/12/21 |
28/2/21 |
| Number |
Number |
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Average number of persons employed by the company |
1 |
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- |
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| 3 |
Investments |
| Investments in |
| subsidiary |
| undertakings |
| £ |
|
Cost |
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At 1 March 2021 |
366,312 |
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At 31 December 2021 |
366,312 |
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| 4 |
Debtors |
31/12/21 |
28/2/21 |
| £ |
£ |
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Amounts owed by group undertakings and undertakings in which the company has a participating interest |
|
1,716,333 |
|
1,126,333 |
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| 5 |
Creditors: amounts falling due within one year |
31/12/21 |
28/2/21 |
| £ |
£ |
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Director's loan account |
292,297 |
|
291,645 |
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Other creditors |
2,486 |
|
1,492 |
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|
294,783 |
|
293,137 |
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| 6 |
Loans |
31/12/21 |
28/2/21 |
| £ |
£ |
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Creditors include: |
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| 7 |
Capital contribution |
31/12/21 |
28/2/21 |
| £ |
£ |
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At 1 March 2021 |
1,200,000 |
|
- |
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Contribution received in year |
590,000 |
|
1,200,000 |
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|
1,790,000 |
|
1,200,000 |
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The company has received long term loans from the sole shareholder of the company, which have been used to purchase the subsidiary and to provide long term finance to it. These loans are unsecured, interest free and with no repayment terms. In view of the long term nature of these loans and the fact that they will not be repaid unless there is a sale of the business, the shareholder has agreed that £1,790,000 of these loans are in fact a contribution to capital and as such under FRS102 substance of transactions should be classed as equity rather than loans due after more than one year. |
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| 8 |
Related party transactions |
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The company has received an interest free unsecured loan from the Director of £292,297 (2021: £291,645). There are no fixed repayment terms for this loan. |
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| 9 |
Controlling party |
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The Company is under the control of S Vatidis. |
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| 10 |
Other information |
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Hubstar Group Limited is a private company limited by shares and incorporated in England. Its registered office is: |
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Regent House |
|
316 Beulah Hill |
|
London |
|
SE19 3HF |
