ACCOUNTS - Final Accounts preparation

Analysis of the maturity of loans is given below:

HGS (LEICESTER) LIMITED - Company Information

Caseware UK (AP4) 2020.0.247 2020.0.247 2020-12-31At the year end, the Company had the below amounts due to the following related undertaking, a company in which P E Hockenhull and J P M Hockenhull are directors. The amounts due are interest free and unsecured: Hockenhull Garages Limited 350,621 188,307The 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. The Directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.When payments are eventually made, they are charged to the provision carried in the balance sheet.The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss. Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; andAny deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.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 the Republic of Ireland and the Companies Act 2006.The following principal accounting policies have been applied:The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the Company in independently administered funds.Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:Sale of goodsTurnover from the sale of goods is recognised when all of the following conditions are satisfied:the Company has transferred the significant risks and rewards of ownership to the buyer;the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;the amount of turnover can be measured reliably;it is probable that the Company will receive the consideration due under the transaction; andthe costs incurred or to be incurred in respect of the transaction can be measured reliably.Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first outbasis. At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.097060302020-12-31petrol station operator with retail sale of food, beverages and tobaccotrue2020-01-01falsetrueThe members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006. 09706030 2020-01-01 2020-12-31 09706030 2019-01-01 2019-12-31 09706030 2020-12-31 09706030 2019-12-31 09706030 c:Director1 2020-01-01 2020-12-31 09706030 d:Buildings 2020-01-01 2020-12-31 09706030 d:Buildings 2020-12-31 09706030 d:Buildings 2019-12-31 09706030 d:Buildings d:OwnedOrFreeholdAssets 2020-01-01 2020-12-31 09706030 d:Buildings d:LongLeaseholdAssets 2020-01-01 2020-12-31 09706030 d:Buildings d:LongLeaseholdAssets 2020-12-31 09706030 d:Buildings d:LongLeaseholdAssets 2019-12-31 09706030 d:FurnitureFittings 2020-01-01 2020-12-31 09706030 d:FurnitureFittings 2020-12-31 09706030 d:FurnitureFittings 2019-12-31 09706030 d:FurnitureFittings d:OwnedOrFreeholdAssets 2020-01-01 2020-12-31 09706030 d:OwnedOrFreeholdAssets 2020-01-01 2020-12-31 09706030 d:CurrentFinancialInstruments 2020-12-31 09706030 d:CurrentFinancialInstruments 2019-12-31 09706030 d:Non-currentFinancialInstruments 2020-12-31 09706030 d:Non-currentFinancialInstruments 2019-12-31 09706030 d:CurrentFinancialInstruments d:WithinOneYear 2020-12-31 09706030 d:CurrentFinancialInstruments d:WithinOneYear 2019-12-31 09706030 d:Non-currentFinancialInstruments d:AfterOneYear 2020-12-31 09706030 d:Non-currentFinancialInstruments d:AfterOneYear 2019-12-31 09706030 d:Non-currentFinancialInstruments d:BetweenTwoFiveYears 2020-12-31 09706030 d:Non-currentFinancialInstruments d:BetweenTwoFiveYears 2019-12-31 09706030 d:Non-currentFinancialInstruments d:MoreThanFiveYears 2020-12-31 09706030 d:Non-currentFinancialInstruments d:MoreThanFiveYears 2019-12-31 09706030 d:ShareCapital 2020-12-31 09706030 d:ShareCapital 2019-12-31 09706030 d:RetainedEarningsAccumulatedLosses 2020-01-01 2020-12-31 09706030 d:RetainedEarningsAccumulatedLosses 2020-12-31 09706030 d:RetainedEarningsAccumulatedLosses 2019-12-31 09706030 d:AcceleratedTaxDepreciationDeferredTax 2020-12-31 09706030 d:AcceleratedTaxDepreciationDeferredTax 2019-12-31 09706030 c:OrdinaryShareClass1 2020-01-01 2020-12-31 09706030 c:OrdinaryShareClass1 2019-01-01 2019-12-31 09706030 c:OrdinaryShareClass1 2020-12-31 09706030 c:OrdinaryShareClass1 2019-12-31 09706030 c:FRS102 2020-01-01 2020-12-31 09706030 c:IndependentExaminationCharity 2020-01-01 2020-12-31 09706030 c:FullAccounts 2020-01-01 2020-12-31 09706030 c:PrivateLimitedCompanyLtd 2020-01-01 2020-12-31 09706030 d:WithinOneYear 2020-12-31 09706030 d:WithinOneYear 2019-12-31 09706030 d:BetweenOneFiveYears 2020-12-31 09706030 d:BetweenOneFiveYears 2019-12-31 iso4217:GBP xbrli:shares xbrli:pure

HGS (Leicester) Limited

Registered number: 09706030

Information for filing with the registrar

For the year ended 31 December 2020

HGS (LEICESTER) LIMITED

REGISTERED NUMBER: 09706030

BALANCE SHEET

AS AT 31 DECEMBER 2020

		2020		2019
Note		£		£

Fixed assets
Tangible assets	4		3,755,437		2,959,020
			3,755,437		2,959,020
Current assets
Stocks		304,418		231,794
Debtors	5	16,832		74,747
Cash at bank and in hand		258,471		378,567
		579,721		685,108
Creditors: amounts falling due within one year	6	(2,011,394)		(1,814,557)
Net current liabilities			(1,431,673)		(1,129,449)
Total assets less current liabilities			2,323,764		1,829,571
Creditors: amounts falling due after more than one year	7		(1,924,023)		(1,686,344)
Provisions for liabilities
Deferred tax	9	(107,193)		(31,780)
			(107,193)		(31,780)
Net assets			292,548		111,447

Capital and reserves
Called up share capital	10	100	100
Profit and loss account	11	292,448	111,347
		292,548	111,447

The Directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.

The Directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

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 have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.

- 1 -

HGS (LEICESTER) LIMITED

REGISTERED NUMBER: 09706030

BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2020

The Company has opted not to file the profit and loss account in accordance with provisions applicable to companies subject to the small companies' regime.

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

P E Hockenhull

Director

Date: 9 September 2021

The notes on pages 3 to 10 form part of these financial statements.

- 2 -

HGS (LEICESTER) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

1.	General information

HGS (Leicester) Limited is a private company limited by shares, incorporated in England. The Company's registered number is 09706030. The address of its registered office is Bp Saffron Lane, 413 Saffron Lane, Leicester, LE2 6UF.
The principal activity of the Company during the year continued to be that of a petrol station operator with retail sale of food, beverages and tobacco.
The financial statements have been presented in Pounds Sterling (£) as this is the currency of the primary economic environment in which the Company operates and is rounded to the nearest pound.

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 the Republic of Ireland and the Companies Act 2006.

The following principal accounting policies have been applied:

2.2

Going concern

The Directors consider that the Company has adequate resources to continue in operational existence for the foreseeable future. The key potential source of uncertainty noted by the Directors is the Coronavirus and COVID-19 pandemic. However at the date of this report is it not possible to reliably determine the effects that these events will have on the company. Accordingly the Directors have continued to prepare the financial statements on the going concern basis.

2.3

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Company has transferred the significant risks and rewards of ownership to the buyer;

∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of turnover can be measured reliably;

∙it is probable that the Company will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

2.4

Operating leases

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term.

- 3 -

HGS (LEICESTER) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

2.Accounting policies (continued)

2.5

Government grants

The UK government has offered a range of financial support packages to help companies, including government backed financing arrangements, furlough schemes, deferment of VAT payments and, for some sectors, business rates holidays, Of the offered schemes, the company received government grants. The income from the furlough scheme has been recognised within 'Other operating income'. They are recognised when the entity has reasonable assurance that they will comply with the conditions attaching the grant, and that the grant will be received.

2.6

Finance costs

Finance costs are charged to profit or loss 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.

2.7

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

- 4 -

HGS (LEICESTER) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

2.Accounting policies (continued)

2.9

Current and deferred taxation

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using both the straight-line and the reducing balance methods.

Depreciation is provided on the following basis:

Freehold land and buildings	-	2% on cost per annum
Leasehold land and buildings	-	Over the term of the lease
Fixtures and fittings	-	15% reducing balance basis per annum

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

- 5 -

HGS (LEICESTER) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

2.Accounting policies (continued)

2.11

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first outbasis.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

2.12

Debtors

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

2.13

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

2.14

Creditors

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

2.15

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the balance sheet.

2.16

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, loans from banks and other third parties and loans to related parties.

Employees

The average monthly number of employees, including directors, during the year was 49 (2019 - 35).

- 6 -

HGS (LEICESTER) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

4.	Tangible fixed assets

	Freehold land and buildings	Leasehold land and buildings	Fixtures and fittings	Total
	£	£	£	£
Cost
At 1 January 2020	1,896,938	802,654	487,794	3,187,386
Additions	-	693,844	223,155	916,999
At 31 December 2020	1,896,938	1,496,498	710,949	4,104,385
Depreciation
At 1 January 2020	8,812	63,193	156,361	228,366
Charge for the year on owned assets	19,112	37,973	63,497	120,582
At 31 December 2020	27,924	101,166	219,858	348,948
Net book value
At 31 December 2020	1,869,014	1,395,332	491,091	3,755,437
At 31 December 2019	1,888,126	739,461	331,433	2,959,020

Debtors

					2020	2019
					£	£


Trade debtors	1,993	480
Other debtors	5,000	64,451
Prepayments and accrued income	9,839	9,816
	16,832	74,747

- 7 -

HGS (LEICESTER) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

6.	Creditors: amounts falling due within one year
		2020	2019
		£	£

Bank loans (note 8)	424,257	431,031
Trade creditors	148,592	257,262
Other taxation and social security	27,807	4,720
Other creditors	1,397,407	1,106,370
Accruals and deferred income	13,331	15,174
	2,011,394	1,814,557

The bank loans are secured by a personal guarantee from P E Hockenhull, a Director of the Company, and on the assets of the Company.

7.	Creditors: amounts falling due after more than one year
		2020	2019
		£	£

Bank loans (note 8)	1,924,023	1,686,344
	1,924,023	1,686,344

The bank loans are secured by a personal guarantee from P E Hockenhull, a Director of the Company, and on the assets of the Company.

- 8 -

HGS (LEICESTER) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

Amounts falling due within one year
Bank loans	424,257	431,031
	424,257	431,031

Amounts falling due 2-5 years
Bank loans	840,290	885,171
	840,290	885,171
Amounts falling due after more than 5 years
Bank loans	1,083,733	801,173
	1,083,733	801,173
	2,348,280	2,117,375

9.	Deferred taxation

		2020
		£

	At beginning of year	(31,780)
	Charged to profit or loss	(75,413)
	At end of year	(107,193)

The provision for deferred taxation is made up as follows:
	2020	2019
	£	£

	Accelerated capital allowances	(107,193)	(31,780)
		(107,193)	(31,780)

- 9 -

HGS (LEICESTER) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

10.	Share capital
		2020	2019
		£	£

Allotted, called up and fully paid

100 (2019 - 100) Ordinary shares of £1.00 each	100	100

11.

Reserves

Profit and loss account

The profit and loss account represents the cumulative profits and losses of the Company.

Not later than 1 year	60,000	61,696
Later than 1 year and not later than 5 years	50,000	110,000
	110,000	171,696

13.	Related party transactions
	At the year end, the Company had the below amounts due to the following related undertaking, a company in which P E Hockenhull and J P M Hockenhull are directors. The amounts due are interest free and unsecured:

		2020	2019
		£	£

	Hockenhull Garages Limited	350,621	188,307
		350,621	188,307

- 10 -