Company registration number 02802131 (England and Wales)
HANSENGROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
HANSENGROUP LIMITED
COMPANY INFORMATION
Directors
H M K Hansen
T B Andersen
(Appointed 25 March 2021)
Secretary
J Mitchell
Company number
02802131
Registered office
Units 64-65t
Enterprise Park
Sunderland
SR5 2TA
Auditor
MHA Moore and Smalley
Sixth Floor
80 Mosley Street
Manchester
M2 3FX
HANSENGROUP LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 24
HANSENGROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2021
- 1 -
The directors present the strategic report for the year ended 30 June 2021.
Fair review of the business
As a consequence of
challenging
market conditions due to Covid-19
,
two of the company's subsidiaries,
HSHansen Ltd and AccentHansen Ltd
,
were placed into administration in October 2021
.
These financial statements include impairment charges of £1,468,485 and loan provisions of £1,543,945.
During the year the company disposed of its investment in Hansens NW Limited for total consideration of £597,000.
Certain contracts previously held by HSHansen have been transferred to HansenGroup Limited which has become a trading entity rather than a holding company.
The company has strengthened its market position since the reorganisation and is showing progress on all parameters. The re-organisation from last finance year is now starting to filter through with better customer relationships, better execution, better systems and increased turnover. We expect this trend to continue.
Principal risks and uncertainties
The group has some financial and operational risks with foreign exchange rates and credit risk - all being carefully considered, planned and negotiated prior to contract signing.
Development and performance
The group continues to develop products that meet the needs of the customer
Key performance indicators
As noted above, the company has taken on contracts previously held by HSHansen Limited. As a result turnover has increased from £nil in the year ended 30 June 2020 to £1,195,426 in the year ended 30 June 2021. Gross profit of £215,177 has been generated in the year, compared to a gross loss of £7,543 in the prior year.
The company has implemented and is continuing to develop a cloud based IT system so all information is available for everyone at any given time. This information covers everything from sales forecast, order intake, execution to anticipated sales output, margins, cost budgets, production planning, ETB etc. Further, there is a management meeting held every month where all managers are updated, in depth, on all relevant areas of the group.
Covid-19
The Covid-19 pandemic and the associated consequences for the British and Global economy in 2020/21 can have a negative effect on the company's financial performance in the coming year. At the date of signing it is not possible to assess the full extent.
T B Andersen
Director
30 June 2022
HANSENGROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2021
- 2 -
The directors present their annual report and financial statements for the year ended 30 June 2021.
Principal activities
The activity of the company has expanded from providing management services to the group to providing curtain wall, commercial windows, fire resistant and structural glazing and steel doors and glass installation services.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
H M K Hansen
T B Andersen
(Appointed 25 March 2021)
Future developments
The company is developing in accordance with a re-focused and more selective market strategy. The company is expected to significantly increase its activity compared to 2020/21 by further utilising intergroup competitive advantages.
Auditor
MHA Moore and Smalley were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 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 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.
HANSENGROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
- 3 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s
auditor
is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s
auditor
is aware of that information.
On behalf of the board
T B Andersen
Director
30 June 2022
HANSENGROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HANSENGROUP LIMITED
- 4 -
Opinion
We have audited the financial statements of HansenGroup Limited (the 'company') for the year ended 30 June 2021 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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 30 June 2021 and of its loss for the year 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.
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 UK, including the FRC’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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual 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.
HANSENGROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HANSENGROUP LIMITED
- 5 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors'
r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have 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 identifie
d
material misstatements in the strategic report or the directors'
r
eport
. 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
remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, 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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud
,
are
detailed below:
-
enquiries with management, about any known or suspected instances of non-compliance with laws and regulations or fraud within the business;
-
challenging assumptions and judgements made by management in their key accounts estimates, in particular in relation to provisions and future performance in light of the impact of Covid-19;
-
auditing the risk of management override of controls, including thorough testing journal entries and other adjustments made by management for appropriateness; and
-
reviewing board minutes and legal and professional expenditure to identify any evidence of ongoing litigation or enquiries.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
HANSENGROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HANSENGROUP LIMITED
- 6 -
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.
Alexander Kelly (Senior Statutory Auditor)
For and on behalf of MHA Moore and Smalley
Chartered Accountants
Statutory Auditor
Sixth Floor
80 Mosley Street
Manchester
M2 3FX
HANSENGROUP LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2021
- 7 -
2021
2020
Notes
£
£
Turnover
3
1,195,426
Cost of sales
(980,249)
(7,543)
Gross profit/(loss)
215,177
(7,543)
Administrative expenses
(469,926)
(350,989)
Operating loss
4
(254,749)
(358,532)
Interest receivable and similar income
7
40,925
101,116
Interest payable and similar expenses
9
(757)
(4,782)
Other gains and losses
8
(2,415,430)
Loss before taxation
(2,630,011)
(262,198)
Tax on loss
10
48,222
(15,172)
Loss for the financial year
(2,581,789)
(277,370)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
HANSENGROUP LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2021
- 8 -
2021
2020
£
£
Loss for the year
(2,581,789)
(277,370)
Other comprehensive income
-
-
Total comprehensive income for the year
(2,581,789)
(277,370)
HANSENGROUP LIMITED
BALANCE SHEET
AS AT 30 JUNE 2021
30 June 2021
- 9 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
11
48,529
89,924
Investments
12
1,470,776
48,529
1,560,700
Current assets
Debtors
14
450,493
3,446,488
Cash at bank and in hand
32,300
358,519
482,793
3,805,007
Creditors: amounts falling due within one year
15
(2,174,238)
(4,426,834)
Net current liabilities
(1,691,445)
(621,827)
Net (liabilities)/assets
(1,642,916)
938,873
Capital and reserves
Called up share capital
17
1,275,002
1,275,002
Share premium account
3,400,000
3,400,000
Profit and loss reserves
(6,317,918)
(3,736,129)
Total equity
(1,642,916)
938,873
The financial statements were approved by the board of directors and authorised for issue on 30 June 2022 and are signed on its behalf by:
T B Andersen
Director
Company Registration No. 02802131
HANSENGROUP LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2021
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 July 2019
1,275,002
3,400,000
(3,458,759)
1,216,243
Year ended 30 June 2020:
Loss and total comprehensive income for the year
-
-
(277,370)
(277,370)
Balance at 30 June 2020
1,275,002
3,400,000
(3,736,129)
938,873
Year ended 30 June 2021:
Loss and total comprehensive income for the year
-
-
(2,581,789)
(2,581,789)
Balance at 30 June 2021
1,275,002
3,400,000
(6,317,918)
(1,642,916)
HANSENGROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
- 11 -
1
Accounting policies
Company information
HansenGroup Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
Units 64-65t, Enterprise Park, Sunderland, SR5 2TA.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
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 £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
-
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues
: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
-
Section 26 ‘Share based Payment’
:
Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements
;
-
Section 33 ‘Related Party Disclosures’
:
Compensation for key management personnel
.
The financial statements of the company are consolidated in the financial statements of HansenGroup A/S
.
These consolidated financial statements are available from its registered office, Bredgade 4, 6940 Lem st., Denmark
.
HANSENGROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
1
Accounting policies
(Continued)
- 12 -
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
- Section 7 'Statement of Cash Flows': Presentation of a statement of cash flow and related notes and disclosures;
- Section 11 ' Basic Financial Instruments' and Section 12 'Other Financial Instrument Issues': Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
- Section 33 'Related Party Disclosures': Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of HansenGroup A/S. As Hansengroup Limited are included within the accounts of a larger group they are exempt from preparing group accounts. These consolidated financial statements are available from its registered office, Bredgade 4, 6940 Lem st., Denmark.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
The directors are aware of the increased uncertainties in the British and Global market since the outbreak of the Covid-19 pandemic.
As a consequence of this increased uncertainty it is more difficult to precisely forecast the coming quarters. It is currently uncertain how long these issues will affect the company, the industry it operates in and the wider economy. Should the company require additional support, the parent undertaking HansenGroup A/S has confirmed that its intention is to make it available, subject to considerations around the global Covid-19 pandemic.
The directors believe that there is no material uncertainty and that the company is a going concern at this time.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
HANSENGROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
1
Accounting policies
(Continued)
- 13 -
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that
it is probable will be
recover
ed
.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and equipment
5 - 7 years
Fixtures and fittings
3 - 5 years
Motor vehicles
3 - 5 years
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in
profit
or
loss
.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
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 it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
HANSENGROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
1
Accounting policies
(Continued)
- 14 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an 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 immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or 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 (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in
profit
or
loss
, 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.
1.7
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally 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.
Basic financial assets
Basic financial assets, which include
debtors
and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in
profit
or
loss
, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
HANSENGROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
1
Accounting policies
(Continued)
- 15 -
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including
creditors
, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities.
Trade creditors
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
HANSENGROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
1
Accounting policies
(Continued)
- 16 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
s
ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in
profit
or
loss
in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value th
r
ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
profit and loss account
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
HANSENGROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
1
Accounting policies
(Continued)
- 17 -
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Foreign exchange
Transactions in currencies other than
pounds sterling
are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
HANSENGROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
- 18 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant
effect on amounts recognised in the financial statements.
Contract accounting
The company's revenue and profit recognition policies are central to the way the company values its work each year and have been consistently applied.
They key judgements and estimates in determining the turnover and profits of the contracts are the costs to complete, achieving the agreed contractual program and recoverability of any claims or variations.
The estimation uncertainty is reduced by the significant experience of the team which includes qualified quantity surveyors. Nevertheless, profit recognition is a key estimate and is inherently judgemental in any contracting business.
Impairment of investment in subsidiaries
Management consider whether investments in subsidiaries are impaired on an annual basis. Where an indication of impairment is identified the estimation of recoverable value requires estimation of the recoverable value of the cash-generating units (CGUs). This requires estimation of the future cash flows from the CGUs and also selection of appropriate discount rates in order to calculate the net present value of those cash flows.
Recoverability of intercompany debtor balances
Where evidence exists that investments in subsidiaries are impaired, management consider whether the intercompany debtors due from the subsidiary are recoverable based on future profitability of the subsidiary undertakings.
3
Turnover and other revenue
2021
2020
£
£
Turnover analysed by class of business
Contract revenue recognised as revenue
1,195,426
-
2021
2020
£
£
Other revenue
Interest income
40,925
101,116
HANSENGROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
- 19 -
4
Operating loss
2021
2020
Operating loss for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
41,395
43,610
Profit on disposal of tangible fixed assets
(4,802)
5
Auditor's remuneration
2021
2020
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
11,784
1,350
Audit of the financial statements of the company's subsidiaries
-
675
11,784
2,025
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
1
1
7
Interest receivable and similar income
2021
2020
£
£
Interest income
Interest receivable from group companies
40,925
101,116
8
Other gains and losses
2021
2020
£
£
Gain on disposal of fixed asset investments
597,000
Amounts written off current loans
(1,543,945)
-
Impairment of fixed asset investment
(1,468,485)
-
(2,415,430)
HANSENGROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
- 20 -
9
Interest payable and similar expenses
2021
2020
£
£
Interest on bank overdrafts and loans
153
4,782
Interest payable to group undertakings
604
757
4,782
10
Taxation
2021
2020
£
£
Current tax
Adjustments in respect of prior periods
(15,172)
15,172
Deferred tax
Origination and reversal of timing differences
702,537
Changes in tax rates
(7,932)
Adjustment in respect of prior periods
(727,655)
Total deferred tax
(33,050)
Total tax (credit)/charge
(48,222)
15,172
The actual (credit)/charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2021
2020
£
£
Loss before taxation
(2,630,011)
(262,198)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
(499,702)
(49,818)
Tax effect of expenses that are not deductible in determining taxable profit
461,256
1,324
Unutilised tax losses carried forward
740,983
48,260
Adjustments in respect of prior years
(742,827)
15,172
Effect of change in corporation tax rate
(7,932)
Group relief
234
Taxation (credit)/charge for the year
(48,222)
15,172
The company has tax losses of £3,899,911 available for use against future trading profits. No deferred tax asset has been recognised in relation to these losses due to the uncertainty of future trading profits.
HANSENGROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
- 21 -
11
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 July 2020
103,091
205,049
153,490
461,630
Disposals
(103,091)
(102,220)
(125,000)
(330,311)
At 30 June 2021
102,829
28,490
131,319
Depreciation and impairment
At 1 July 2020
103,091
136,492
132,123
371,706
Depreciation charged in the year
34,272
7,123
41,395
Eliminated in respect of disposals
(103,091)
(102,220)
(125,000)
(330,311)
At 30 June 2021
68,544
14,246
82,790
Carrying amount
At 30 June 2021
34,285
14,244
48,529
At 30 June 2020
68,557
21,367
89,924
12
Fixed asset investments
2021
2020
Notes
£
£
Investments in subsidiaries
13
1,470,776
HANSENGROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
12
Fixed asset investments
(Continued)
- 22 -
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 July 2020
1,470,776
Disposals
(2,291)
At 30 June 2021
1,468,485
Impairment
At 1 July 2020
-
Impairment losses
1,468,485
At 30 June 2021
1,468,485
Carrying amount
At 30 June 2021
-
At 30 June 2020
1,470,776
The impairment losses relate to the investment values in HSHansen Limited and AccentHansen Limited which have been written off due to both subsidiaries going into administration in September 2021.
On 5 October 2021 the company sold 100% of its investment in Hansens NW Limited to HansenGroup A/S for total consideration of £597,000.
13
Subsidiaries
Details of the company's subsidiaries at 30 June 2021 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
HSHansen Limited
UK
Development of building projects
Ordinary
100.00
AccentHansen Limited
UK
Manufacturing steel doors
Ordinary
100.00
HANSENGROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
- 23 -
14
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
107,610
Amounts owed by group undertakings
167,313
3,364,606
Other debtors
142,520
81,882
417,443
3,446,488
Deferred tax asset (note 16)
33,050
450,493
3,446,488
15
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
29,407
Amounts owed to group undertakings
2,126,563
4,389,038
Corporation tax
15,172
Accruals and deferred income
18,268
22,624
2,174,238
4,426,834
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2021
2020
Balances:
£
£
Accelerated capital allowances
33,050
-
2021
Movements in the year:
£
Liability at 1 July 2020
-
Credit to profit or loss
(33,050)
Asset at 30 June 2021
(33,050)
The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.
HANSENGROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
- 24 -
17
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,275,002
1,275,002
1,275,002
1,275,002
18
Ultimate controlling party
The parent undertaking and controlling related party of this company is HansenGroup A/S incorporated in Denmark. The registered office of HansenGroup A/S is Bredgade 4, 6940 Lem st., Denmark. The ultimate controlling party is H M K Hansen.
These results will be consolidated in the group accounts of HansenGroup A/S which are publicly available.
2021-06-30
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