HSCPM Limited - Accounts to registrar (filleted) - small 18.2

HURFORD SALVI CARR PROPERTY

MANAGEMENT LIMITED

Audited Financial Statements

for the Year Ended 31 July 2021

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

Directors:

P D Driscoll

S G Hurford

Secretary:

J M Howard

Registered office:

3 Castle Gate

Castle Street

Hertford

Hertfordshire

SG14 1HD

Registered number:

03259200 (England and Wales)

Independent auditors:

Haines Watts

Chartered Accountants and Statutory Auditor

New Derwent House

69-73 Theobalds Road

London

WC1X 8TA

Fixed assets

Tangible assets

4

31,260

43,107

Investments

5

69,301

69,301

100,561

112,408

Current assets

Debtors

6

415,535

390,200

Cash at bank

184,316

191,345

599,851

581,545

Creditors

Amounts falling due within one year

7

537,216

596,118

Net current assets/(liabilities)

62,635

(14,573

)

Total assets less current liabilities

163,196

97,835

Creditors

Amounts falling due after more than one year

8

229,526

200,613

Net liabilities

(66,330

)

(102,778

)

Capital and reserves

Called up share capital

10

4

4

Retained earnings

(66,334

)

(102,782

)

Shareholders' funds

(66,330

)

(102,778

)

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 4 February 2022 and were signed on its behalf by:

S G Hurford - Director

1.	Statutory information

Hurford Salvi Carr Property Management Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

A summary of principal accounting policies, all of which have been consistently applied throughout the year and the preceding year, is set out below.

2.	Accounting policies

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern

One of the major reasons for the Company showing a net current liability is due to a material balance owed to a related party within Creditors: amounts falling due within one year. This is explained further in note 12. Excluding this loan, the Company has been and is able to meet its current liabilities as they fall due. Furthermore, the Company achieved profitable operations during the year and the the directors have also confirmed that they are very supportive of the Company and their investment within it.

The Directors have also taken into account the impact on their business of possible scenarios brought on by the impact of COVID-19, alongside the measures that they can take to mitigate the impact.

After considering the above and having reviewed 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. To bolster the working capital reserves the directors have secured overdraft facilities with their bank which has been provided on a rolling basis and reviewed by the directors and bank every 12 months.

Preparation of consolidated financial statements

The financial statements contain information about Hurford Salvi Carr Property Management Limited as an individual Company and do not contain consolidated financial information as the parent of a group. The Company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Depreciation and amortisation

There is estimation uncertainty in calculating depreciation and amortisation on fixed assets, as they are being written down on a straight line basis over their estimated useful economic life, which may not match their actual useful life.

Management fees

Management fees are the turnover for the period which comprises of management fees receivable for services rendered net of VAT and trade discounts (if any). Property management income is recognised when the service is provided. Surveying income is recognised based on stage of completion. Insurance commission is recognised on the date at which the associated policy is effective from.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings - 20% and 25% straight line

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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.

Hire purchase and leasing commitments

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

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3.	Employees and directors

The average number of employees during the year was 47 (2020 - 47 ) .

4.	Tangible fixed assets

Fixtures

and

fittings

£

Cost

At 1 August 2020

48,888

Additions

702

Disposals

(518

)

At 31 July 2021

49,072

Depreciation

At 1 August 2020

5,781

Charge for year

12,031

At 31 July 2021

17,812

Net book value

At 31 July 2021

31,260

At 31 July 2020

43,107

5.	Fixed asset investments

Shares in

group

undertakings

£

Cost

At 1 August 2020

and 31 July 2021

69,301

Net book value

At 31 July 2021

69,301

At 31 July 2020

69,301

The Company's investments at the Balance Sheet date in the share capital of companies include the following:

Ashby Building Surveyors

Registered office: United Kingdom

Nature of business: Quantity Surveyors

%

Class of shares:

holding

Ordinary

100.00

Ashby and Horner Limited

Registered office: United Kingdom

Nature of business: Property Management

%

Class of shares:

holding

Ordinary

100.00

Block Management Online Limited

Registered office: United Kingdom

Nature of business: Property Management

%

Class of shares:

holding

Ordinary

100.00

London Debt Collectors Limited

Registered office: United Kingdom

Nature of business: Collection Agency

%

Class of shares:

holding

Ordinary

100.00

Keneth Peters Asset Management Limited

Registered office: United Kingdom

Nature of business: Property Management

%

Class of shares:

holding

Ordinary

100.00

6.

Debtors: amounts falling due within one year

2021

2020

£

£

Trade debtors

214,180

199,410

Amounts owed by group undertakings

139,514

155,987

Other debtors

61,841

34,803

415,535

390,200

7.

Creditors: amounts falling due within one year

2021

2020

£

£

Trade creditors

180,327

133,807

Taxation and social security

113,334

172,668

Other creditors

243,555

289,643

537,216

596,118

8.

Creditors: amounts falling due after more than one year

2021

2020

£

£

Amounts owed to group undertakings

191,193

200,613

Other creditors

38,333

-

229,526

200,613

9.	Leasing agreements

Minimum lease payments under non-cancellable operating leases fall due as follows:

2021

2020

£

£

Within one year

101,640

70,500

Between one and five years

136,905

141,000

238,545

211,500

10.	Called up share capital

Allotted, issued and fully paid:

Number:

Class:

Nominal

2021

2020

value:

£

£

4

Ordinary

£1

4

4

11.	Disclosure under Section 444(5B) of the Companies Act 2006

The Auditors' Report was unqualified.

Nicola Pearson (Senior Statutory Auditor)

for and on behalf of Haines Watts

The audit report in the full accounts makes reference to the accounting policy on going concern highlighting the uncertainty caused by Covid-19.

12.	Other financial commitments

The Company entered into a charge (debenture agreement) at 30 January 2018 with Lloyds Bank Plc. The charge consist of fixed and floating charge which covers all the property or undertakings of the Company. More details can be found on Companies House website.

13.	Related party disclosures

Included in note 7 within trade creditors is an amount of £99,984 (2020: £101,652) owed to a related party, Hurford Salvi Carr Limited, for transactions occurring within the normal course of business.

Included in note 8 is an amount of £191,193 (2020: £200,613) owed to the parent company, Hurford Salvi Carr Management Limited, which is held at transaction price and repayable on demand. There are no other terms to the unsecured and interest-free loan, however due to the Company not being able to repay the loan in the next 12 months and not being in the parent company's interest to recall the loan before the Company is able to repay it, the loan is held in creditors greater than one year. The directors believe this allocation satisfies the substance over form and true and fair view requirements of FRS 102.

14.	Ultimate controlling party

The immediate and ultimate parent company is Hurford Salvi Carr Management Limited, a company incorporated in the United Kingdom.

There is no single identifiable controlling party.

15.

Accruals

The accounts include an expense accrual for £53,070 (2020: £36,236) in wages. This accrual represents the amount of holiday days owed to staff in monetary terms as at 31 July 2021. Due to the COVID -19 virus outbreak staff had not taken the normal amount of holiday due and the liability was deemed material. After the year end the liability has significantly reduced as staff used up their holiday allowance and there is no expectation that the amount will have to be paid by the company in cash terms.