Harding Holdings U.K. Limited - Period Ending 2016-12-31

Registration number: 02616984

Harding Holdings U.K. Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 December 2016

Harding Holdings U.K. Limited

Contents

Company Information	1
Balance Sheet	2 to 3
Notes to the Financial Statements	4 to 10

Harding Holdings U.K. Limited

Company Information

Directors

Mr B G Harding Mr A G Harding Mr G E Harding Mrs J D Harding Mr P G Harding

Company secretary

Mr B G Harding

Registered office

Drivers Wharf Northam Road Southampton Hampshire SO14 0PF

Page 1

Harding Holdings U.K. Limited

(Registration number: 02616984)
Balance Sheet as at 31 December 2016

	Note	2016 £	2015 £
Fixed assets
Tangible assets	4	12,193,000	11,883,409
Investments	5	100	100
		12,193,100	11,883,509
Current assets
Stocks		5,957,101	5,338,166
Debtors	6	2,312,383	1,459,823
Cash at bank and in hand		172,957	20,892
		8,442,441	6,818,881
Creditors: Amounts falling due within one year	7	(1,189,080)	(1,261,091)
Net current assets		7,253,361	5,557,790
Total assets less current liabilities		19,446,461	17,441,299
Creditors: Amounts falling due after more than one year	7	(9,779,950)	(8,654,825)
Provisions for liabilities		(582,896)	(563,799)
Net assets		9,083,615	8,222,675
Capital and reserves
Called up share capital		21,893	21,893
Non-distributable reserve		5,548,714	5,088,927
Other reserves		6,667	6,667
Profit and loss account		3,506,341	3,105,188
Total equity		9,083,615	8,222,675

For the financial year ending 31 December 2016 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

The notes on pages 4 to 10 form an integral part of these financial statements.

Page 2

Harding Holdings U.K. Limited

(Registration number: 02616984)
Balance Sheet as at 31 December 2016

Approved and authorised by the Board on 29 September 2017 and signed on its behalf by:
 

.........................................

Mr P G Harding

Director

The notes on pages 4 to 10 form an integral part of these financial statements.

Page 3

Harding Holdings U.K. Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

1	General information

The company is a private company limited by share capital incorporated in England and Wales.

The address of its registered office is:
Drivers Wharf
Northam Road
Southampton
Hampshire
SO14 0PF

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Group accounts not prepared

The company is part of a small group. The company has taken advantage of the exemption provided by Section 398 of the Companies Act 2006 and has not prepared group accounts.

Tax

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

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

Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements.

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 timing differences. Deferred tax on investments and investment properties held at fair value is measured using the rates and allowances that would apply to the sale of the assets.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Page 4

Harding Holdings U.K. Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

Asset class	Depreciation method and rate
Equipment	25% reducing balance

Investment property

Investment properties are carried at fair value, derived from the current market prices for comparable real estate determined annually. The valuation uses observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Stocks

Stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. Net realisable value is based on selling price less anticipated costs to completion and selling costs.

Amounts recoverable on long term contracts, included in debtors, are stated at the net sales value of the work done less amounts received as progress payments on account. Any excess progress payments would be included in creditors as payments on account. Any cumulative costs incurred net of amounts transferred to cost of sales, less provision for contingencies and anticipated future losses on contracts, will be included as long term contract balances in stock.

Defined contribution pension obligation

The company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the profit and loss account.

Derivatives
Derivative financial instruments are initially measured at fair value on the date on which a derivative contract is entered into and are subsequently measured at fair value through profit or loss. Derivatives are carried as assets when the fair value is positive and as liabilities when fair value is negative.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 5 (2015 - 5).

Page 5

Harding Holdings U.K. Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

4	Tangible assets

	Investment properties £	Furniture, fittings and equipment  £	Total £
Cost or valuation
At 1 January 2016	11,883,409	3,420	11,886,829
Revaluations	784,984	-	784,984
Disposals	(475,393)	-	(475,393)
At 31 December 2016	12,193,000	3,420	12,196,420
Depreciation
At 1 January 2016	-	3,420	3,420
At 31 December 2016	-	3,420	3,420
Carrying amount
At 31 December 2016	12,193,000	-	12,193,000
At 31 December 2015	11,883,409	-	11,883,409

Revaluation

The fair value of the company's Investment properties was revalued on 31 December 2016. An independent valuer was not involved.
The basis of the investment property valuation is open market value.
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £6,062,566 (2015 - £6,291,175).

5	Investments

	2016 £	2015 £
Investments in subsidiaries	100	100

Subsidiaries	£
Cost or valuation
At 1 January 2016	100
Provision
Carrying amount
At 31 December 2016	100
At 31 December 2015	100

Page 6

Harding Holdings U.K. Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

6

Debtors

	2016 £	2015 £
Trade debtors	70,397	67,996
Other debtors	2,241,986	1,391,827
Total current trade and other debtors	2,312,383	1,459,823

7

Creditors

	Note	2016 £	2015 £
Due within one year
Bank loans and overdrafts	8	265,544	264,671
Trade creditors		377,425	467,594
Taxation and social security		80,848	39,031
Other creditors		465,263	489,795
		1,189,080	1,261,091
Due after one year
Loans and borrowings	8	9,779,950	8,654,825

8	Loans and borrowings

	2016 £	2015 £
Non-current loans and borrowings
Bank borrowings	7,507,930	7,962,805
Other borrowings	2,272,020	692,020
	9,779,950	8,654,825

	2016 £	2015 £
Current loans and borrowings
Bank borrowings	265,544	264,671

Secured balances and charges

Barclays bank hold charges over assets held by the company as security for monies loaned to the company. At the balance sheet date the amounts due to Barclays was £7,773,474 (2015 £8,227,476)

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Harding Holdings U.K. Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

9	Share capital

Allotted, called up and fully paid shares

	2016		2015
	No.	£	No.	£
Ordinary shares of £1 each	21,893	21,893	21,893	21,893

10	Parent and ultimate parent undertaking

The ultimate controlling party is Harding Consolidated Property Holdings Limited.

11	Transition to FRS 102

This is the first year that the company has presented its results under FRS 102 Section 1A small entities. The last financial statements under the UK GAAP were for the year ended 31 December 2015. The date of transition to FRS Section 1A small entities was 1 January 2015. Set out below are the changes in accounting policies which reconcile loss for the financial year ended 31 December 2015 and the total equity as at 1 January 2015 and 31 December 2015 between UK GAAP as previously reported and FRS102 Section 1A small entities.

Investment properties:

Gains and losses on investment properties are now shown within the profit or loss for the year and deferred tax recognised as per the requirements of FRS 102. We have disclosed the cumulative effect of these net unrealised gains as a separate component of shareholders funds named Non-distributable reserve.

Derivative financial instruments and hedging:

The small entity transition exemption available in FRS 102 relating to derivatives has been applied. Fair value adjustments for financial instrument are therefore shown within the current year, previous results are not remeasured.

Page 8

Harding Holdings U.K. Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

Balance Sheet at 1 January 2015
 

	Note	As originally reported £	Reclassification £	Remeasurement £	As restated £
Fixed assets
Intangible assets		10,657,758	-	-	10,657,758
Investments		100	-	-	100
		10,657,858	-	-	10,657,858
Current assets
Stocks		3,249,735	-	-	3,249,735
Debtors		1,059,788	-	-	1,059,788
		4,309,523	-	-	4,309,523
Creditors: Amounts falling due within one year		(1,435,365)	-	-	(1,435,365)
Net current assets		2,874,158	-	-	2,874,158
Total assets less current liabilities		13,532,016	-	-	13,532,016
Creditors: Amounts falling due after more than one year		(4,310,393)	-	-	(4,310,393)
Provisions for liabilities		-	-	(614,651)	(614,651)
Net assets/(liabilities)		9,221,623	-	(614,651)	8,606,972
Capital and reserves
Called up share capital		(21,893)	-	-	(21,893)
Non-distributable reserve		-	(5,652,815)	614,651	(5,038,164)
Revaluation reserve		(5,652,815)	5,652,815	-	-
Other reserves		(6,667)	-	-	(6,667)
Profit and loss account		(3,540,248)	-	-	(3,540,248)
Total equity		(9,221,623)	-	614,651	(8,606,972)

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Harding Holdings U.K. Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

Balance Sheet at 31 December 2015
 

	Note	As originally reported £	Reclassification £	Remeasurement £	As restated £
Fixed assets
Intangible assets		11,883,409	-	-	11,883,409
Investments		100	-	-	100
		11,883,509	-	-	11,883,509
Current assets
Stocks		5,338,166	-	-	5,338,166
Debtors		1,459,912	(89)	-	1,459,823
Cash at bank and in hand		20,903	-	-	20,903
		6,818,981	(89)	-	6,818,892
Creditors: Amounts falling due within one year		(1,261,101)	-	-	(1,261,101)
Net current assets/(liabilities)		5,557,880	(89)	-	5,557,791
Total assets less current liabilities		17,441,389	(89)	-	17,441,300
Creditors: Amounts falling due after more than one year		(8,654,825)	-	-	(8,654,825)
Provisions for liabilities		-	89	(563,888)	(563,799)
Net assets/(liabilities)		8,786,564	-	(563,888)	8,222,676
Capital and reserves
Called up share capital		(21,893)	-	-	(21,893)
Non-distributable reserve		-	(5,652,815)	563,888	(5,088,927)
Revaluation reserve		(5,652,815)	5,652,815	-	-
Other reserves		(6,667)	-	-	(6,667)
Profit and loss account		(3,105,189)	-	-	(3,105,189)
Total equity		(8,786,564)	-	563,888	(8,222,676)

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