ACCOUNTS - Final Accounts preparation

HILCO PROFIT RECOVERY LIMITED - Company Information

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	Hilco Profit Recovery Limited













	Directors' report and financial statements

	for the period ended 31 December 2022

	Registered number: 09228289


Hilco Profit Recovery Limited

Company Information

Directors	Philip Fernandes
	Paul McGowan


Registered number	09228289


Registered office	84 Grosvenor Street
	London
	W1K 3JZ


Independent auditor	Buzzacott LLP
	130 Wood Street
	London
	EC2V 6DL


Solicitors	Wright Hassall LLP
	Olympus Avenue
	Leamington Spa
	Warwickshire
	CV34 6BF


Hilco Profit Recovery 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 - 13


Hilco Profit Recovery Limited

Directors' report

for the period ended 31 December 2022

The directors present their report and the financial statements of Hilco Profit Recovery Limited ('the company') for the 52 week period ended 31 December 2022.

Principal activity

The principal activity during the period was that of accounts payable recovery services.

Directors

The directors who served during the period were:

Philip Fernandes

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 judgements 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.

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


Hilco Profit Recovery Limited

Directors' report (continued)

for the period ended 31 December 2022

Small company regime

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 3 May 2023 and signed on its behalf by:

Philip Fernandes

Director

Page 2

Independent auditor's report to the members of Hilco Profit Recovery Limited

for the period ended 31 December 2022

Opinion

We have audited the financial statements of Hilco Profit Recovery Limited ('the company') for the period ended 31 December 2022, 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 the financial statements:

∙give a true and fair view of the state of the company's affairs as at 31 December 2022 and of its profit 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 opinion

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 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.

Other information

The other information comprises the information included in the Directors' Report other than the financial statements and our Auditor's report thereon. The directors are responsible for the other information contained within the Directors' Report. 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. 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 course of 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 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.

Page 3

Independent auditor's report to the members of Hilco Profit Recovery Limited (continued)

for the period ended 31 December 2022

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.
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:

∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

∙the financial statements are not in agreement with the 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 etitled to preparing the Directors' report and from the requirement to preparen a Strategic report.

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:

Page 4

Independent auditor's report to the members of Hilco Profit Recovery Limited (continued)

for the period ended 31 December 2022

Auditor's responsibilities for the audit of the financial statements (continued)
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 directors 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; 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, employment legislation 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.

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;

∙reviewed journal entries throughout the period to identify unusual transactions;

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

∙reviewed accounting estimates and evaluated where judgements or decisions made by management indicated bias on the part of the company's management;

∙substantively tested third party sales report to check the completeness and cut off of income; and

∙carried out substantive testing to check the occurrence and cut off of expenditure.

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.

Page 5

Independent auditor's report to the members of Hilco Profit Recovery Limited (continued)

for the period ended 31 December 2022

Auditor's responsibilities for the audit of the financial statements (continued)

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

4 May 2023

Page 6


Hilco Profit Recovery Limited

Statement of comprehensive income

for the period ended 31 December 2022

	52 week period ended 31 December	52 week period ended 1 January
	2022	2022
	£	£


Turnover	587,144	587,363
Cost of sales	(16,147)	(49,452)
Gross profit	570,997	537,911
Administrative expenses	(486,558)	(476,130)
Other operating charges	(46,837)	(54,911)
Operating profit	37,602	6,870
Profit for the financial period	37,602	6,870

There was no other comprehensive income for the period ended 31 December 2022 or the period ended 1 January 2022.

The notes on pages 9 to 13 form part of these financial statements.

Page 7


Hilco Profit Recovery Limited - Registered number: 09228289

Statement of financial position

as at 31 December 2022

	31 December 2022	1 January 2022
Note	£	£

Fixed assets
Intangible assets	4	-	-
Investments	5	1	1
		1	1
Current assets
Debtors	6	609,250	377,446
Cash at bank and in hand	7	1,051	4,075
		610,301	381,521
Creditors: amounts falling due within one year	8	(761,959)	(570,781)
Net current liabilities		(151,658)	(189,260)

Net liabilities		(151,657)	(189,259)

Capital and reserves
Called up share capital	101	101
Other reserves	341,433	341,433
Profit and loss account	(493,191)	(530,793)
	(151,657)	(189,259)

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 03 May 2023and were signed on its behalf by:

Philip Fernandes

Director

The notes on pages 9 to 13 form part of these financial statements.

Page 8


Hilco Profit Recovery Limited

Notes to the financial statements

for the period ended 31 December 2022

1.	General information

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

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.
The following principal accounting policies have been applied:

2.2

Going concern

The directors have prepared the financial statements on a going concern basis as they have received
confirmation from the company's principal creditor that it is their current intention to offer financial support
to the company, as required for a period of no less than 12 months from the date of approval of these
financial statements.

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:

Rendering of services

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of turnover can be measured reliably;

∙it is probable that the company will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

2.4

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.

2.5

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.

Page 9


Hilco Profit Recovery Limited

Notes to the financial statements

for the period ended 31 December 2022

2.Accounting policies (continued)

2.6

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

2.7

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.

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 Statement of financial position. The assets of the plan are held separately from the company in independently administered funds.

3.	Average number of employees

The average monthly number of employees, including directors, during the period was 4 (period ended 1 January 2022 - 5).

Page 10


Hilco Profit Recovery Limited

Notes to the financial statements

for the period ended 31 December 2022

4.	Intangible assets

		Goodwill
		£
	Cost
	At 1 January 2022	944,396
	At 31 December 2022	944,396
	Amortisation
	At 1 January 2022	944,396
	At 31 December 2022	944,396
	Net book value
	At 31 December 2022	-
	At 31 December 2022	-

Page 11


Hilco Profit Recovery Limited

Notes to the financial statements

for the period ended 31 December 2022

5.	Fixed asset investments

		Investment in subsidiary company
		£
	Cost or valuation
	At 1 January 2022	1
	At 31 December 2022	1

	Net book value
	At 31 December 2022	1
	At 1 January 2022	1

Subsidiary undertaking
At 31 December 2022, the following was a subsidiary undertaking of the company:
Name	Country of Incorporation	Class of shares	Holding

Rating Solutions Limited

England and Wales

Ordinary

100%

Debtors

					31 December 2022	1 January 2022
					£	£


Trade debtors	3,952	9,880
Other debtors	2,248	2,925
Prepayments and accrued income	603,050	364,641
	609,250	377,446

Page 12


Hilco Profit Recovery Limited

Notes to the financial statements

for the period ended 31 December 2022

7.	Cash and cash equivalents
		31 December 2022	1 January 2022
		£	£

Cash at bank and in hand	1,051	4,075
	1,051	4,075

8.	Creditors: amounts falling due within one year
		31 December 2022	1 January 2022
		£	£

Trade creditors	4,667	5,096
Amounts owed to group undertakings	735,307	544,216
Other taxation and social security	16,601	12,373
Other creditors	5,384	9,096
	761,959	570,781

9.	Contingent liabilities

The company had no contingent liabilities at 31 December 2022 or 1 January 2022.

10.	Capital commitments

The company had no capital commitments at 31 December 2022 or 1 January 2022.

11.	Controlling party

The smallest group of undertakings for which consolidated group accounts, which include the company, have been drawn up is headed by Hilco London Limited. Hilco London Limited has the same registered office as the company.

Page 13