Company Registration No. 00712705 (England and Wales)
HAZLITT GOODEN & FOX LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2021
PAGES FOR FILING WITH REGISTRAR
HAZLITT GOODEN & FOX LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 5
HAZLITT GOODEN & FOX LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2021
31 October 2021
- 1 -
2021
2020
Notes
£
£
£
£
Current assets
Stocks
13,416,758
13,493,766
Debtors
5
362,509
1,449,558
Cash at bank and in hand
559
1,577
13,779,826
14,944,901
Creditors: amounts falling due within one year
6
(7,360,423)
(8,580,354)
Net current assets
6,419,403
6,364,547
Creditors: amounts falling due after more than one year
7
(1,965,279)
(30,479,109)
Net assets/(liabilities)
4,454,124
(24,114,562)
Capital and reserves
Called up share capital
1,294,272
1,294,272
Share premium account
5,468,784
5,468,784
Profit and loss reserves
(2,308,932)
(30,877,618)
Total equity
4,454,124
(24,114,562)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 October 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 27 April 2022 and are signed on its behalf by:
J E Morton Morris
Director
Company Registration No. 00712705
HAZLITT GOODEN & FOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2021
- 2 -
1
Accounting policies
Company information
Hazlitt Gooden & Fox Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
38 Bury Street, London, United Kingdom, SW1Y 6BB.
1.1
Accounting convention
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.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
1.2
Going concern
The company has returned to a position of solvency following a re-organisation of inter-company debt agreed in the year and is now looking to build on its strong brand name through increased trading opportunities. The portfolio of stock gives the opportunity for growth and the directors have plans to develop the stock and trading position further. The financial statements have therefore been prepared on a going concern basis.
1.3
Turnover
Turnover comprises works of art and agency fees invoiced by the company during the year, exclusive of Value Added Tax and trade discounts. Turnover is recognised on the invoice date which is the date when works of art are dispatched to the customer.
1.4
Stocks
Stock is stated at the lower of cost and directors' estimation of net realisable value after making due allowance for obsolete and slow moving stock.
At the balance sheet 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 or loss.
1.5
Financial instruments
Basic financial assets
Trade and other receivables are measured at transaction price less any impairment unless the arrangement constitutes a financing transaction in which case the transaction is measured at the present value of the future receipts discounted at the prevailing market rate of interest. Loans are initially measured at fair value and are subsequently measured at amortised cost using the effective interest method less any impairment.
Basic financial liabilities
Trade and other payables are measured at their transaction price unless the arrangement constitutes a financing transaction in which case the transaction is measured at present value of future payments discounted at prevailing market rate of interest. Other financial liabilities are initially measured at fair value net of their transaction costs. They are subsequently measured at amortised cost using the effective interest method.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
HAZLITT GOODEN & FOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
1
Accounting policies
(Continued)
- 3 -
1.6
Taxation
Taxation for the year comprises current tax. Tax is recognised in the Income
Statement,
except to the extent that it relates to items recognised in other
comprehensive income or directly in equity
.
Current tax
Current tax is recognised at the amount of tax payable using the tax rates
and laws that have been enacted
or substantially enacted by the balance sheet date.
1.7
Leases
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.
1.8
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred
. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
1.9
Foreign exchange
Transactions in foreign currencies are initially recorded in the entity's functional currency by applying the spot exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date. All differences are taken to the profit and loss account.
2
Judgements and key sources of estimation uncertainty
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 circumstance.
Key accounting estimates and assumptions
The company makes estimates and assumptions concerning the future. The resulting accounting estimates
will, by definition, seldom equal the related actual results. The estimate and assumption that has a
significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the
next financial year is:-
Stock valuation - Stock is valued at the lower of cost and estimated selling price less the estimated costs to
sell. This requires an estimation of stock impairment based on current market conditions and the historical
experience of selling products of a similar nature. A change in market conditions may have a material
impact on the estimation of the valuation.
3
Exceptional item
2021
2020
£
£
Relief of intercompany balances owed
(30,430,979)
-
During the year, Hazlitt Fine Art Holdings Limited formally forgave the debt owed by the Company by way of a Deed.
HAZLITT GOODEN & FOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
- 4 -
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
2
2
5
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
60,802
60,802
Amounts owed by group undertakings
282,625
1,301,810
Other debtors
19,082
86,946
362,509
1,449,558
6
Creditors: amounts falling due within one year
2021
2020
£
£
Bank loans
10,250
1,870
Trade creditors
76,580
2,123,199
Amounts owed to group undertakings
1,368,350
540,042
Other creditors
5,905,243
5,915,243
7,360,423
8,580,354
7
Creditors: amounts falling due after more than one year
2021
2020
£
£
Bank loans and overdrafts
37,880
48,130
Amounts owed to group undertakings
1,927,399
30,430,979
1,965,279
30,479,109
HAZLITT GOODEN & FOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
- 5 -
8
Parent company
The Company's ultimate parent undertaking is Hazlitt Fine Art Holdings Limited. The Directors consider the Company's ultimate controller to be J.E. Morton Morris.
Copies of Hazlitt Fine Art Holdings Limited financial statements can be obtained from the Company's registered office at 38 Bury Street, London, SW1Y 6BB.