ACCOUNTS - Final Accounts

Cash and cash equivalents



	HUK 46 Limited













	Directors' report and financial statements

	for the period ended 2 January 2021

	Registered number: 08473976


HUK 46 Limited

Company Information

Directors	Christopher Emmott
	Paul McGowan


Company secretary	Inca Lockhart-Ross


Registered number	08473976


Registered office	84 Grosvenor Street
	London
	W1K 3JZ


Independent auditor	Buzzacott LLP
	130 Wood Street
	London
	EC2V 6DL


HUK 46 Limited

Contents

	Page
Directors' report	1 - 2
Independent auditor's report	3 - 6
Statement of comprehensive income	7
Statement of financial position	8
Notes to the financial statements	9 - 12


HUK 46 Limited

Directors' report

for the period ended 2 January 2021

The directors present their report and the financial statements for HUK 46 Limited ('the company') for the 53 week period ended 2 January 2021.

Directors

The directors who served during the period were:

Christopher Emmott

Paul McGowan

Directors' responsibilities statement

The directors are responsible for preparing the Directors' report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

∙select suitable accounting policies for the company's financial statements and then apply them consistently;

∙make judgments and accounting estimates that are reasonable and prudent;

∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Impact of COVID-19

The directors have considered the impact of the current COVID-19 pandemic on the company.
The directors do not consider this to be cause for material uncertainty in respect of the company’s ability to
continue as a going concern. The company has adapted well and the directors consider that the company has sufficient financial resources to continue for the foreseeable future, despite the current crisis.

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditor is aware of that information.

Page 1


HUK 46 Limited

Directors' report (continued)

for the period ended 2 January 2021

Small companies exemption

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the board on 24 September 2021 and signed on its behalf by:

Christopher Emmott

Director

Page 2

Independent auditor's report to the members of HUK 46 Limited

for the period ended 2 January 2021

Qualified opinion

We have audited the financial statements of HUK 46 Limited ('the company') for the period ended 2 January 2021, which comprise the Statement of comprehensive income, the Statement of financial position and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion, except for the effects of the matter described in the basis for qualified opinion section, the financial statements:

∙give a true and fair view of the state of the company's affairs as at 2 January 2021 and of its loss for the period then ended;

∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

∙have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for qualified opinion

The audit evidence available to us with respect to an amount of €110,467 included in "other debtors" was limited. As discussed in Note 7, the directors have been unable to enter into a dialogue with a firm of receivers that the company had previously entered into an agreement, to confirm the net amount due to the company under the terms of the agreement. As a result, we have been unable to obtain sufficient appropriate audit evidence surrounding this balance.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our
responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial
statements section of our report. We are independent of the company in accordance with the ethical requirements that
are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's
Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Page 3

Independent auditor's report to the members of HUK 46 Limited (continued)

for the period ended 2 January 2021

Other information

The directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

∙the information given in the Directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and

∙the Directors' report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' report.
In respect solely of the limitation on our work relating to Other debtors, described above:
• we have not obtained all the information and explanations that we consider necessary for the purpose of the audit
and;
• we were unable to determine whether adequate accounting records had been kept
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
• the financial statements are not in agreement with the accounting accounting records and returns; or
• certain disclosures of directors' remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit; or
• the directors were not entitled to prepare the financial statement in accordance with the small companies regime
and take advantage of the small companies' exemption in preparing the Directors' report and from the
requirement to prepare a Strategic report.

Page 4

Independent auditor's report to the members of HUK 46 Limited (continued)

for the period ended 2 January 2021

Responsibilities of directors

As explained more fully in the Directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

How the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud
and non-compliance with laws and regulations, was as follows:

∙the Senior Statutory Auditor ensured that the engagement team collectively had the appropriate competence,
capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

∙we made enquiries of management as to where they considered there was susceptibility to fraud, and their
knowledge of actual, suspected and alleged fraud;

∙we identified the laws and regulations that could reasonably be expected to have a material effect on the financial
statements of the company through discussions with the director and other management at the planning stage;

∙the audit team held a discussion to identify any particular areas that were considered to be susceptible to
misstatement, including with respect to fraud and non-compliance with laws and regulations; we considered the
impact of COVID-19 on the company and its internal controls; and

∙we focused our planned audit work on specific laws and regulations which we considered may have a direct
material effect on the financial statements or the operations of the company including the Companies Act 2006
and taxation legislation.

We assessed the extent of compliance with the laws and regulations identified above through:

∙making enquiries of management;

∙inspecting legal correspondence throughout the period for any potential litigation or claims; and

∙considering the internal controls in place that are designed to mitigate risks of fraud and non-compliance with laws and regulations.

Page 5

Independent auditor's report to the members of HUK 46 Limited (continued)

for the period ended 2 January 2021

Auditor's responsibilities for the audit of the financial statements (continued)
To address the risk of fraud through management bias and override of controls, we:

∙determined the susceptibility of the company to management override of controls by checking the implementation of controls and enquiring of individuals involved in the financial reporting process, taking into account the impact of COVID-19 on controls during the period; and

∙performed analytical procedures to identify any large, unusual or unexpected transactions and investigated any
large variances from the prior period.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included:

∙agreeing financial statement disclosures to underlying supporting documentation; and

∙enquiring of management as to actual and potential litigation and claims.

There are inherent limitations in our audit procedures described above. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error as they may involve deliberate concealment or collusion. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the director and other management and the inspection of regulatory and legal correspondence, if any.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

Peter Chapman (Senior statutory auditor)

for and on behalf of

Buzzacott LLP

Statutory Auditor

130 Wood Street

London

EC2V 6DL

24 September 2021

Page 6


HUK 46 Limited

Statement of comprehensive income

for the period ended 2 January 2021

	53 week period ended 2 January	52 week period ended 28 December
	2021	2019
	€	€

Administrative expenses	(12,125)	(15,934)
Operating loss	(12,125)	(15,934)
Loss for the period	(12,125)	(15,934)

There was no other comprehensive income for the period ended 2 January 2021 or the period ended 28 December 2019.

The notes on pages 9 to 12 form part of these financial statements.

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HUK 46 Limited - Registered number: 08473976

Statement of financial position

as at 2 January 2021

	2 January	28 December
	2021	2019
Note	€	€

Current assets
Debtors	4	112,912		110,766
Cash at bank and in hand	5	876		556
		113,788		111,322
Creditors: amounts falling due within one year	6	(445,336)		(430,745)
Net current liabilities			(331,548)		(319,423)
Total assets less current liabilities			(331,548)		(319,423)
Net liabilities			(331,548)		(319,423)

Capital and reserves
Called up share capital	1	1
Profit and loss account	(331,549)	(319,424)
	(331,548)	(319,423)

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

The financial statements were approved and authorised for issue by the board on 24 September 2021.and were signed on its behalf by:

Christopher Emmott

Director

Page 8


HUK 46 Limited

Notes to the financial statements

for the period ended 2 January 2021

1.	General information

The company is a private company limited by shares and incorporated in England and Wales. Its registered address is 84 Grosvenor Street, London, W1K 3JZ. The registered number of the company is 08473976.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' ("FRS 102") and the Companies Act 2006.

2.2

Going concern

The financial statements have been prepared on a going concern basis as the company's connected undertaking, Filefigure 30 Limited, has agreed to provide continuing financial support to the company for at least twelve months from the date of approval of these financial statements.
Impact of COVID-19
The directors have considered the impact of the current COVID-19 pandemic on the company.
The directors do not consider this to be cause for material uncertainty in respect of the company’s ability to
continue as a going concern. The company has adapted well and the directors consider that the company has sufficient financial resources to continue for the foreseeable future, despite the current crisis. Therefore the financial statements have been prepared on the going concern basis.

2.3

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.4

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors and loans to and from related parties.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit or loss.

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HUK 46 Limited

Notes to the financial statements

for the period ended 2 January 2021

2.Accounting policies (continued)

2.4

Financial instruments (continued)

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the reporting date.

2.5

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Employees

The company has no employees other than the directors (2019 - no employees), who did not receive any remuneration (2019 - £nil).

Debtors

					2 January	28 December
					2021	2019
					€	€

Other debtors	112,912	110,766
	112,912	110,766

Cash at bank and in hand	876	556
	876	556

Page 10


HUK 46 Limited

Notes to the financial statements

for the period ended 2 January 2021

Trade creditors	67,278	73,305
Amounts owed to connected companies	369,973	349,318
Accruals	8,085	8,122
	445,336	430,745

7.	Cash sales

On 28 November 2013, the company entered into an agreement with the receivers of:

∙FREE RECORD SHOP BELGIUM NV (Wapper 7, 2000 Antwerp (Belgium), registration number: 0404.883.938 (RPR Antwerp) declared bankrupt by decision of the Commercial Court of Antwerp of 19 November 2013; and

∙FREE RECORD SHOP (MEGA) STORE BELGIUM NV (Muntcentrum 6-7-8-9-10, 1000 Brussels (Belgium), registration number: 0444.205.461 (RPR Brussels) declared bankrupt by decision of the Commercial Court of Brussels of 20 November 2013.

As part of this arrangement it was agreed that the company would be solely entitled to receive all sales revenues arising from the operation of the business.
During the process, sales revenues received from cash sales were banked directly into the bank account operated by the receivers.
However, the receivers have not transferred all amounts to the company and have not confirmed the quantum of the funds held.
During the process, a Belgium VAT liability crystallised on the sales. The directors anticipate the receivers to settle this liability out of the funds retained (see note 8).
The directors of the company are continuing to attempt to enter into dialogue with the receivers to resolve the above issue.

As a result, the directors are unable to provide sufficient information to the company's auditors to allow them to form an opinion on the amount included in Other debtors.
The company's records show funds held by the receivers amount to €1,409,657 (28 December 2019 - €1,409,657) and a Belgium VAT liability amounting to €1,299,190 (28 December 2019 - €1,299,190). The net position, amounting to €110,467 (28 December 2019 - €110,467) has been included in 'Other debtors' (see note 4).

Page 11


HUK 46 Limited

Notes to the financial statements

for the period ended 2 January 2021

8.	Contingent liabilities

As explained in note 7, the receivers have retained certain funds due to the company amounting to €1,409,657 which the directors anticipate the receivers will use to settle a Belgium VAT liability amounting to €1,299,190.
The receivers have not acknowledged the VAT liability nor confirmed the cash funds held. Therefore, there is a possibility that the company could be liable to settle the amount due to the Belgium authorities directly.
There were no further contingent liabilities at 2 January 2021 or 28 December 2019.

9.	Capital commitments

The company had no capital commitments at 2 January 2021 or 28 December 2019.

10.	Controlling party

At 2 January 2021, HUK 46 Limited was a wholly owned subsidiary of Hilco Trading, LLC, a company registered in the United States of America.
The largest and smallest group of undertakings for which consolidated accounts have been drawn up is that included by Hilco Trading, LLC. Their registered office is 5 Revere Drive, Suite 206, Northbrook, Illinois, 60062.

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