ACCOUNTS - Final Accounts preparation
ACCOUNTS - Final Accounts preparation
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Registered number: 04231933
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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HML PM LIMITED
Company Information
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HML PM LIMITED
Contents
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HML PM LIMITED
Strategic report
For the Year Ended 31 March 2022
The Directors present their Strategic Report for the year ended 31 March 2022.
Principal activities The Company’s principal activity during the year under review was property management.
The Directors report a profit on ordinary activities after taxation of £158,553 (2021: £849,663).
At the start of the year, the Company purchased 100% of the share capital of SDL Estate Management Limited. More detail on this acquisition is set out in note 12. New digital processes introduced during the pandemic have helped the efficiency and profitability of the business. Strong transactional activity in the housing market helped boost the profitability of the business, but was countered by difficulties in keeping existing staff and attracting new employees. Overall, the Directors were content with the performance of the business and look forward to further improvements in future years as the business grows.
The principle risks and uncertainties faced by the Company are set out below:
Cost of living crisis The Directors are very aware of the potential impact of the cost of living crisis on clients and employees. To help clients and employees, the Company does the following: • Constantly reviews employee pay level to ensure they are fair and are market rate; • Offers financial guidance to employees; and • Be mindful of lessee’s ability to pay service charge demands and chase lessee debtor accordingly. Prinicpal risks and uncertainties (continued) COVID-19 The effect of the pandemic was not as severe as originally anticipated but to mitigate the impact of the virus on the Vegner Group, the Company and all stakeholders, the Company continues to follow a co-ordinated Group plan which includes the following: • Follow government announcements to understand the ongoing impact, review our existing policies, alter in accordance with the government and Public Health England announcements. • Produce additional internal communications to ensure all employees understand the meaning, impact and rational behind any recommendations. • Investment in technology and equipment to embrace new digital working practices. • Ensure employees are agile and have adopted new working practices.
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HML PM LIMITED
Strategic report (continued)
For the Year Ended 31 March 2022
Acquisitions and investments Part of the Company’s strategy is to acquire and make investments in complementary businesses, services or products as appropriate opportunities arise. The risks the Company may face should it acquire or invest in complementary businesses include: • Difficulties with the integration and assimilation of the acquired business; • Diversion of the attention of the Company’s management team from other business concerns; • Availability of favourable acquisition or investment financing; and • Loss of key employees of any acquired business. To mitigate the risks in respect of acquisitions and investments, the Company carries out detailed due diligence and produces cash flow projections to ensure that any target is a suitable strategic fit and is financially sound. The Company generally uses the same employees and advisors to do the acquisition work. Attraction and retention of key employees The Company depends on its Directors and other key employees and whilst it has entered into contractual arrangements with these individuals, retention of these services cannot be guaranteed. The Company has attempted to reduce this risk by offering competitive remuneration packages and in some cases equity ownership. The Company also invests significantly in training and development. Competition The large majority of the Company’s work for existing or new clients or on new projects is won competitively. The Company may face significant competition, including from larger companies which have greater capital and other resources and may result in some margin erosion. There is no assurance that the Company will be able to compete successfully in such a marketplace in the future, but the Company continually invests in its systems to improve the productivity within the business. Regulatory Risks The Company may be affected by the prevailing regulatory and legal environment relating to its business. Financial Risks The Company operates in the UK and is currently not exposed to foreign exchange risk. The Company has an overdraft that is used from time to time and consequently the exposure to interest rate risk is not material. The Company is exposed to credit risk, but despite trade receivables being a material number, it comprises of a large number of individual clients, none of which represents in excess of 5% of the total balance. Receivables in respect of property management fees are considered by management to be low risk as non-payment of service charges can result in forfeiture of the respective leases. Receivable balances are also monitored on an on-going, regular basis with the result that the Company’s exposure to bad debts is not significant. All of the Company’s cash and bank balances are held with recognised UK clearing banks. Liquidity risk is managed through weekly, quarterly and annual cash flow forecasting and monitoring.
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HML PM LIMITED
Strategic report (continued)
For the Year Ended 31 March 2022
The Directors use several key performance indicators to monitor and appraise the trading and performance of the businesses. The main key performance indicators are as follows:
Operating margin (before overheads) of Company The operating margin made by the business before overheads increased from 24% to 27% during the year. This change was largely due to increases in revenue streams linked to housing transactions, which benefited by a buoyant housing market. Company turnover A sizeable acquisition at the start of the financial year and a buoyant housing market helped the company increase turnover by £1,584,990 (9%) during the year. Staff turnover During the year, staff turnover in the Company rose from 18% to 30%.
This report was approved by the board on 31 March 2023 and signed on its behalf.
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HML PM LIMITED
Directors' report
For the Year Ended 31 March 2022
The directors present their report and the financial statements for the year ended 31 March 2022.
The loss for the year, after taxation, amounted to £383,948 (2021 - profit £849,663).
The Directors do not recommend the payment of a dividend (2021: £nil).
The directors who served during the year were:
The Directors will continue to expand the property management services of the business through organic growth and acquisitions. The Company has strong experience of buying and consolidating acquisitions and the Directors continue to be optimistic that this acquisitive strategy combined with organic growth will ensure the Company continues to grow consistently in terms of turnover and profitability.
The pandemic has also led Directors to consider the geographical spread of offices and a strategic review of the office network has taken place. The Company closed two offices in the last year and expects this trend to continue in the future years, albeit at a slower pace.
The directors are responsible for preparing the Strategic report, 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.
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HML PM LIMITED
Directors' report (continued)
For the Year Ended 31 March 2022
The Company's Equal Opportunities Policy is applicable to all employees, workers and contractors. The Company is committed to a policy of equal opportunity and non-discrimination, and will not tolerate action or behaviour that is contrary to this policy.
Breaches of the Company's Equal Opportunities Policy by employees is dealt with through the Disciplinary Procedure and may be considered to be gross misconduct. Breaches by workers or contractors may be grounds for the Company to withdraw work or terminate contracts for services or similar. A Complaints Procedure is in operation to allow any employee, worker or contractor to raise concerns about discrimination or harassment, in order that any such complaint may be addressed quickly and appropriately. At all times, the Company aims to:
∙Select, recruit, develop and promote the very best people, basing judgement solely on suitability for the job;
∙Ensure all applicants and employees receive fair and equal treatment irrespective of sex, marital status, nationality, colour, race, age, national origin, religion, belief, sexual orientation or disability;
∙Ensure all employees receive fair and equal treatment irrespective of whether they work part-time or are engaged on a fixed term contract;
∙Maintain a working environment free from harassment and intimidation;
∙Ensure that existing and new legislative Acts based on statutory rights to equal treatment are adhered to; and
∙Deal speedily and effectively with any complaints of alleged discrimination and/or harassment, ensuring all complaints are fully investigated and that remedial action is taken where necessary.
The company has established and effective communication methods with our employees. This includes:
∙A regularly updated Intranet;
∙Direct notifications to staff via our HR Information Systems;
∙Announcements through our Let’s Talk emails;
∙Monthly remotely delivered training through our Lunch and Learn mechanism;
∙Online Employee Handbook with full access to all employment related policies and procedures;
∙Annual All Employee Meeting;
∙Annual Engagement Survey through Great Places to Work;
∙Vegner Group Big Idea Scheme;
∙Regular HR site visits;
∙Instant Messaging system via MS Teams;
∙Adult to Adult conversations (1:1s to discuss Careers, Reward and Check In); and
∙Monthly Newsletter covering key news/announcements from the previous month.
Directors within the company are fully involved with all of the above communication mechanisms. Our aim is for this approach to result in the right conditions for all members of an organisation to give of their best each day, committed to the organisation’s goals and values, motivated to contribute to organisational success, with an enhanced sense of their own well-being. Employee engagement is based on trust, integrity, two-way commitment and communication between an organisation and its members. It is an approach that increases the chances of business success, contributing to organisational and individual performance, productivity and well-being.
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HML PM LIMITED
Directors' report (continued)
For the Year Ended 31 March 2022
Going concern The Directors have adopted the going concern basis in preparing this set of accounts. The Directors consider that the company has adapted well to working in a post pandemic environment. After reviewing the principal risks and challenges faced by the business, including the ongoing cost of living crisis, the Directors have concluded that the risks and challenges do not impact on the Company’s ability to continue to operate for the foreseeable future and meet its obligations as they fall due. The Directors have scenario planned for reductions in revenue streams that are dependent on housing transactions as well as considering scenarios where a percentage of clients have liquidity issues. The Directors have focused on cash and working capital management to ensure the resources are adequate and sufficient to support trading levels. The Directors believe that the Company is well placed to manage its financing and other business risks satisfactorily and have a reasonable expectation that the Company will have adequate resources, with the support of the Parent Company, to continue in operation for at least 12 months from the signing of these financial statements. The Directors therefore consider it appropriate to adopt the going concern basis of accounting in preparing the financial statements.
The auditors, CLA Evelyn Partners Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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HML PM LIMITED
Independent auditors' report to the members of HML PM Limited
We have audited the financial statements of HML PM Limited (the 'Company') for the year ended 31 March 2022, which comprise the Statement of income and retained earnings, the Balance sheet and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law 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).
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 Auditors' 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 opinion.
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.
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HML PM LIMITED
Independent auditors' report to the members of HML PM Limited (continued)
The other information comprises the information included in the Annual Report and Financial Statements other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual Report and Financial Statements. 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. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and Directors' Report has been prepared in accordance with applicable legal requirements.
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 Strategic Report and Directors' Report.
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HML PM LIMITED
Independent auditors' report to the members of HML PM Limited (continued)
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 Auditors' 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:
We obtained an understanding of the Company’s legal and regulatory framework through enquiry of management of their understanding of the relevant laws and regulations, the Company’s policies and procedures regarding compliance and how they identify, evaluate and rectify any instances of non-compliance. We also drew on our existing understanding of the Company’s industry and regulation. We understand the Company complies with requirements of the framework through: • The directors’ close involvement in the day-to-day running of the business, meaning that any litigation or claims would come to their attention directly; and • The outsourcing of tax compliance to external experts. In the context of the audit, we considered those laws and regulations which determine the form and content of the financial statements, which are central to the Company’s ability to conduct business and where failure to comply could result in material penalties. We have identified the following laws and regulations as being of significance in the context of the Company; • The Companies Act 2006 and FRS 102 in respect of the preparation and presentation of the financial statements. The senior statutory auditor led a discussion with senior members of the engagement team regarding the susceptibility of the entity’s financial statements to material misstatement, including how fraud might occur. The key area identified in this discussion was the manipulation of the financial statements through the posting of manual journals and application of revenue recognition principles. The procedures carried out to gain evidence in the above areas included: • Substantive testing in relation to revenue recognition both during the period under audit and around the year end; and • Testing of manual journal entries, selected based on specific risk assessments applied based on the Company’s processes and controls surrounding manual journals.
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 Auditors' report.
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HML PM LIMITED
Independent auditors' report to the members of HML PM Limited (continued)
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 Auditors' 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.
for and on behalf of
45 Gresham Street
EC2V 7BG
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HML PM LIMITED
Statement of income and retained earnings
For the Year Ended 31 March 2022
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HML PM LIMITED
Registered number: 04231933
Balance sheet
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 13 to 29 form part of these financial statements.
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HML PM LIMITED
Notes to the financial statements
For the Year Ended 31 March 2022
The principal activity of the Company during the year under review was property management.
The Company is a private company limited by shares and incorporated in England and Wales. The address of the registered office is 9-11 The Quadrant, Richmond, Surrey, TW9 1BP. The registered company number is 04231933.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
Reduced disclosure exemptions
The Company is a qualifying entity and has taken advantage of the following exemptions available under FRS 102: • the exemption from preparing a statement of cash flows; • disclosure of key management personnel compensation; and • certain financial instrument disclosures. Equivalent disclosures are included in the consolidated financial statements of Vegner Holdings Ltd, the Company’s ultimate parent undertaking. The registered office of Vegner Holdings Ltd is 9-11 The Quadrant, Richmond, Surrey, TW9 1BP. The company is a wholly owned subsidiary of Vegner Holdings Limited, a company incorporated in England & Wales and, in accordance with Section 400 of the Companies Act 2006, is not required to produce, and has not published, consolidated financial statements.
The following principal accounting policies have been applied:
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HML PM LIMITED
Notes to the financial statements
For the Year Ended 31 March 2022
2.Accounting policies (continued)
The Company made a loss of £383,948 (2021: profit of £849,663) and has a net current liability position of £8,940,724 (2021: £7,666,437). Net current liabilities include loans from group entities of £8,402,232 (2021: £7,306,222), the group entities have confirmed they do not intend to request payment of these balances within 12 months of the signing of the financial statements. The Company is also included in a group overdraft facility that is renewed annually and ongoing use of this facility is included within the cashflow forecasts.
The Company’s forecasts and projections following the signing of these accounts, taking account of possible changes in trading performance from macroeconomic issues and other factors, show that the Company, with the support of the Parent, will be able to meet all liabilities as they fall due. Consequently, the Directors are confident that the Company has adequate resources to continue in operational existence for the foreseeable future being a period of at least 12 months from the signing of the financial statements. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements. Revenue is recognised for services provided during the year. If services have been provided and not invoiced, the revenues are accrued. Where amounts are invoiced in advance of services being provided, revenues are deferred. Revenue from property management is spread over the period in which the services are being provided. Revenue is measured as the fair value of the consideration received or receivable and represents amounts receivable for services provided in the normal course of business, net of discounts, VAT and other sales related taxes. Grants are classified as relating either to revenue or assets. Grants relating to revenue are recognised in Other Income over the period in which the related costs are recognised. A grant that becomes receivable as compensation for expenses or losses already incurred for the purpose of giving immediate financial support for the entity with no future related costs is recognised in other income in the period in which it becomes receivable. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as Deferred Income.
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HML PM LIMITED
Notes to the financial statements
For the Year Ended 31 March 2022
2.Accounting policies (continued)
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the Balance Sheet date where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the Balance Sheet date. Timing differences are differences between the Company’s taxable profits and its results as stated in the financial statements that arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in the financial statements.
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HML PM LIMITED
Notes to the financial statements
For the Year Ended 31 March 2022
2.Accounting policies (continued)
When the amount that can be deducted for tax for an asset (other than goodwill) that is recognised in a business combination is less (more) than the value at which it is recognised, a deferred tax liability (asset) is recognised for the additional tax that will be paid (avoided) in respect of that difference. Similarly, a deferred tax asset (liability) is recognised for the additional tax that will be avoided (paid) because of a difference between the value at which a liability is recognised and the amount that will be assessed for tax. The amount attributed to goodwill is adjusted by the amount of deferred tax recognised. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date that are expected to apply to the reversal of the timing difference. Current tax assets and liabilities are offset only when there is a legally enforceable right to set off the amounts and the Company intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.
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HML PM LIMITED
Notes to the financial statements
For the Year Ended 31 March 2022
2.Accounting policies (continued)
Goodwill arising on the acquisition of subsidiary undertakings and businesses, representing any excess of the fair value of the consideration given over the fair value of the identifiable assets and liabilities acquired, is capitalised and written off on a straight-line basis over its useful economic life, which is 20 years. Provision is made for any impairment.
Other
Intangible assets acquired separately are measured on initial recognition at cost. An intangible asset acquired as part of a business combination is recognised separately from goodwill if the asset is separable or arises from contractual or other legal rights and its fair value can be measured reliably. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses. Internally generated intangible assets, excluding capitalised development costs, are not capitalised and expenditure is reflected in profit or loss in the year in which the expenditure is incurred. Intangible assets are amortised over their useful life and assessed for impairment whenever there is an indication of impairment. The amortisation period and the amortisation method for intangible assets are reviewed at least at each financial year end. The amortisation expense on intangible assets is recognised in the Statement of Income and Retained Earnings in the expense category consistent with the function of the intangible asset. Amortisation is provided on a straight-line basis on intangible assets as follows: Customer Relationships: 20 years.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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.
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HML PM LIMITED
Notes to the financial statements
For the Year Ended 31 March 2022
2.Accounting policies (continued)
Non-financial assets At each Balance Sheet date, the Company reviews the carrying amounts of its property, plant and equipment and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where the asset does not generate cash flows that are independent from other assets, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. If the recoverable amount of a non-financial asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised as an expense immediately, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognised as income immediately, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. Financial assets that are measured at cost or amortised cost are assessed at the end of each reporting period for objective evidence of impairment. The impairment loss is measured as the difference between a financial asset’s carrying amount and the present value of the estimated future cash flows, discounted at the asset’s original effective interest rate. For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset’s carrying amount and the Board’s best estimate of its value, with the latter being an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of an instrument.
Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price unless the arrangement constitutes a financing transaction in which case they are measured at the present value of future payments, discounted at a market rate of interest for a similar debt instrument. Debtors and creditors due after more than one year are subsequently measured at amortised cost using the effective interest rate method. Financial assets and liabilities due within one year are measured at their undiscounted carrying value. A provision is established when there is objective evidence that the Company will not be able to collect all amounts due. Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand
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HML PM LIMITED
Notes to the financial statements
For the Year Ended 31 March 2022
2.Accounting policies (continued)
and at bank, short-term bank deposits with an original maturity of three months or less and bank overdrafts which are an integral part of the Company’s cash management.
Financial assets are de-recognised when: • the contractual rights to the cash flows from the financial asset expire or are settled; or • the Company transfers to another party substantially all of the risks and rewards of ownership of the financial asset; or • the Company, despite having retained some but not all significant risks and rewards of ownership, has transferred control of the asset to another party. Financial liabilities are de-recognised only when the obligation specified in the contract is discharged, cancelled or expires. Financial assets and liabilities are only off set and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Judgements In the course of preparing the Company financial statements the only judgements that may have a significant effect are those involving estimates as explained below.
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HML PM LIMITED
Notes to the financial statements
For the Year Ended 31 March 2022
3.Judgments in applying accounting policies (continued)
Estimates Impairment of investments, goodwill and other intangible assets Determining whether goodwill and other intangible assets are impaired requires an estimation of the value in use of the cash generating units (CGU) to which goodwill and intangible assets have been allocated. The value in use calculation requires an estimation of future cash flows expected to arise from the CGU and a suitable discount rate in order to calculate the present value. Details of the carrying value of investments, goodwill and other intangible assets are set out in notes 10 and 12. Valuation and useful lives of intangible assets In order to determine the value of the separately identifiable intangible assets on the acquisition of a business combination, management are required to make estimates of incremental profits when applying the Company’s valuation methodologies. Estimate and judgement is also required in determining the appropriate amortisation period. Details of the carrying value of goodwill and other intangible assets are set out in note 10. Contingent and deferred consideration Contingent and deferred consideration relating to acquisitions has been included based on management’s estimate of the fair value of the consideration due. Remediation provision Contained within accruals is a provision relating to potential financial issues within the service charge accounting section of acquisitions. The accrual is based on management estimate after a detailed year-end review.
Revenue, all of which arises from continuing activities, represents fees receivable from property management and related services. All revenue arises in the UK and is stated net of VAT.
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HML PM LIMITED
Notes to the financial statements
For the Year Ended 31 March 2022
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HML PM LIMITED
Notes to the financial statements
For the Year Ended 31 March 2022
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HML PM LIMITED
Notes to the financial statements
For the Year Ended 31 March 2022
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HML PM LIMITED
Notes to the financial statements
For the Year Ended 31 March 2022
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HML PM LIMITED
Notes to the financial statements
For the Year Ended 31 March 2022
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HML PM LIMITED
Notes to the financial statements
For the Year Ended 31 March 2022
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HML PM LIMITED
Notes to the financial statements
For the Year Ended 31 March 2022
Subsidiary undertakings (continued)
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HML PM LIMITED
Notes to the financial statements
For the Year Ended 31 March 2022
Retained earnings
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HML PM LIMITED
Notes to the financial statements
For the Year Ended 31 March 2022
20.Other financial commitments
The Company has entered into a bank cross guarantee with its fellow group Companies. The assets of the Company are pledged as security for the bank borrowings by way of fixed and floating charge.
The immediate parent undertaking is Vegner Group Limited a Company incorporated in the United Kingdom and registered in England and Wales. Vegner Group Limited Limited owns 100% of the share capital of the Company and provides central management services to the Company. The ultimate parent undertaking is Vegner Holdings Limited a Company incorporated in the United Kingdom and registered in England and Wales.
These accounts have been consolidated in the group accounts of Vegner Holdings Limited, which can be obtained from Companies House, Crown Way, Cardiff. The ultimate controlling party is North Atlantic Value GP 5 LLP.
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