Harry Hall International Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: 01362323 (England and Wales)

Audited Financial Statements

for the Year Ended 30 April 2023

for

Harry Hall International Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

O C St John Hoare

E A Hopper

M S Alexander

M P Martin

SECRETARY:

M S Alexander

REGISTERED OFFICE:

Hope Park Business Centre

4 Coop Place

Rooley Lane

BRADFORD

BD5 8JX

REGISTERED NUMBER:

01362323 (England and Wales)

SENIOR STATUTORY AUDITOR:

Kevin Shotton BA BFP FCA

AUDITORS:

Clive Owen LLP

Chartered Accountants

& Statutory Auditors

140 Coniscliffe Road

Darlington

County Durham

DL3 7RT

FIXED ASSETS

Intangible assets

4

413,635

490,305

Tangible assets

5

14,101

17,774

Investments

6

406

406

428,142

508,485

CURRENT ASSETS

Stocks

7

1,961

295

Debtors

8

2,809,062

2,825,022

Cash at bank and in hand

513,597

169,460

3,324,620

2,994,777

CREDITORS

Amounts falling due within one year

9

3,590,024

3,325,581

NET CURRENT LIABILITIES

(265,404

)

(330,804

)

TOTAL ASSETS LESS CURRENT LIABILITIES

162,738

177,681

CREDITORS

Amounts falling due after more than one year

10

37,917

42,190

NET ASSETS

124,821

135,491

CAPITAL AND RESERVES

Called up share capital

12

4,062,002

3,934,501

Share premium

3,916,854

3,916,854

Retained earnings

(7,854,035

)

(7,715,864

)

SHAREHOLDERS' FUNDS

124,821

135,491

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 Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 26 January 2024 and were signed on its behalf by:

E A Hopper - Director

1.	STATUTORY INFORMATION

Harry Hall International 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.

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.

There were no material departures from that standard.

The financial statements are presented in £ sterling.

The principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous year, and also have been consistently applied within the same accounts.

Going concern

In the year to 30 April 2023 the company made losses of £138,171. The company forms part of the International Riding Company Limited group. The company has prepared forecasts for 12 months from the date of approval of the accounts. Taking account of the forecasts the directors believe that they will be able to manage working capital to operate within the facilities available to the company in the period of the review.

The directors have received confirmation from the parent company, International Riding Company Limited, that it will continue to make available financial support as may be required for the 12 months from the date of signing these financial statements.

After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and financial statements.

Preparation of consolidated financial statements

The financial statements contain information about Harry Hall International 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.

Significant judgements and estimates

In preparing these financial statements, the directors have had to make the following judgements:

Determine whether there are indicators of impairment of the Company's tangible and intangible assets, including goodwill. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.

Turnover

Turnover represents sales to external customers at invoiced amounts less value added tax or local taxes on sales.

Income recognition

Income from the sale of goods is recognised on despatch of goods to the customer.

Broker income is recognised as commitments are fulfilled.

Insurance membership income is recognised as services are provided.

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

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

Computer software

- 25% on cost

Product development

- 25% on cost and 33% on cost

and intellectual property

Goodwill arising on an acquisition of a subsidiary undertaking is the difference between the fair value of the consideration paid and the fair value of the assets and liabilities acquired.

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

-

50% on cost, 25% on cost and 10% on cost

Computer equipment

-

50% on cost, 33% on cost and 25% on cost

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.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

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 average stock. Work in progress and finished goods include labour and attributable overheads.

At each reporting 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 and loss.

Financial instruments

Basic financial instruments are measured at amortised cost with changes recognised in profit or loss.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, 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.

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is occurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight line basis over their useful economic lives, which range from 3 to 6 years.

If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

Foreign currencies

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

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.

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.

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.

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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 31 (2022 - 34 ) .

4.	INTANGIBLE FIXED ASSETS

Product

development

and

Intellectual

property

Computer

Goodwill

costs

software

Totals

£

£

£

£

COST

At 1 May 2022

35,462

484,229

677,506

1,197,197

Additions

-

-

120,787

120,787

At 30 April 2023

35,462

484,229

798,293

1,317,984

AMORTISATION

At 1 May 2022

35,462

281,418

390,012

706,892

Amortisation for year

-

73,748

123,709

197,457

At 30 April 2023

35,462

355,166

513,721

904,349

NET BOOK VALUE

At 30 April 2023

-

129,063

284,572

413,635

At 30 April 2022

-

202,811

287,494

490,305

5.	TANGIBLE FIXED ASSETS

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1 May 2022

97,566

43,902

141,468

Additions

-

5,893

5,893

Disposals

(69,113

)

(1,840

)

(70,953

)

At 30 April 2023

28,453

47,955

76,408

DEPRECIATION

At 1 May 2022

84,741

38,953

123,694

Charge for year

2,983

3,831

6,814

Eliminated on disposal

(66,361

)

(1,840

)

(68,201

)

At 30 April 2023

21,363

40,944

62,307

NET BOOK VALUE

At 30 April 2023

7,090

7,011

14,101

At 30 April 2022

12,825

4,949

17,774

6.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 May 2022

and 30 April 2023

406

NET BOOK VALUE

At 30 April 2023

406

At 30 April 2022

406

The following are subsidiary undertakings of the company:

Name

Country of Incorporation

Class of shares

Holding

Principle activity

The Riding Sock Company Limited

England and Wales

Ordinary

100%

Dormant

Matchmakers International Limited

England and Wales

Ordinary

100%

Dormant

Masta Rug Company Limited

England and Wales

Ordinary

100%

Dormant

Harry Hall Limited

England and Wales

Ordinary

100%

Dormant

Caldene Limited

England and Wales

Ordinary

100%

Dormant

Cottage Craft Limited

England and Wales

Ordinary

100%

Dormant

7.

STOCKS

2023

2022

£

£

Finished goods

1,961

295

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Trade debtors

969,341

652,237

Amounts owed by group undertakings

1,448,119

1,675,268

Other debtors

159,081

256,133

Deferred tax asset

200,000

200,000

Prepayments and accrued income

32,521

41,384

2,809,062

2,825,022

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Bank loans and overdrafts

5,000

5,874

Trade creditors

95,165

445,773

Amounts owed to group undertakings

2,479,065

2,048,928

Taxation and social security

116,447

145,719

Other creditors

550,124

295,893

Accruals and deferred income

344,223

383,394

3,590,024

3,325,581

10.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2023

2022

£

£

Bank loans - 1-2 years

5,000

5,956

Bank loans - 2-5 years

15,000

17,869

Bank loans more 5 yr by instal

17,917

18,365

37,917

42,190

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

17,917

18,365

The bank loan is repayable over 10 years, with no repayment due for the first year. Interest is charged at a rate of 2.5% commencing after 1 year. The loan is due to mature in May 2030.

11.	LEASING AGREEMENTS

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

2023

2022

£

£

Within one year

116,379

92,677

Between one and five years

448,076

566,132

564,455

658,809

12.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2023

2022

value:

£

£

1,501

Ordinary

£1

1,501

1,501

3,060,501

Ordinary B

£1

4,060,501

3,933,000

4,062,002

3,934,501

127,501 Ordinary B shares of £1 each were allotted and fully paid for cash at par during the year.

13.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Kevin Shotton BA BFP FCA (Senior Statutory Auditor)

for and on behalf of Clive Owen LLP

14.	CONTINGENT LIABILITIES

There is a multilateral cross guarantee in place between the company, Stuncroft Limited, a fellow subsidiary, and International Riding Company Limited, the parent undertaking. At 30 April 2023 the bank borrowings of the other group companies amounted to £2,827,016 (2022: £2,992,349).

15.	RELATED PARTY DISCLOSURES

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, including those on normal market terms, with wholly owned subsidiaries within the group.

16.	ULTIMATE PARENT COMPANY

The ultimate parent undertaking is International Riding Company Limited, a company incorporated in England and Wales. The registered office of International Riding Company Limited is Hope Park Business Centre, 4 Coop Place, Rooley Lane, Bradford, England, BD5 8JX