Company registration number 05317618 (England and Wales)
HOP FARM REAL ESTATE LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2022
PAGES FOR FILING WITH REGISTRAR
HOP FARM REAL ESTATE LTD
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
HOP FARM REAL ESTATE LTD
BALANCE SHEET
AS AT 31 JANUARY 2022
31 January 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
4
11,907,307
8,574,380
Investment properties
5
1,775,468
1,100,000
Investments
6
200
100
13,682,975
9,674,480
Current assets
Debtors
8
10,712
4,691
Cash at bank and in hand
514,459
79,657
525,171
84,348
Creditors: amounts falling due within one year
10
(15,572,454)
(10,129,327)
Net current liabilities
(15,047,283)
(10,044,979)
Total assets less current liabilities
(1,364,308)
(370,499)
Creditors: amounts falling due after more than one year
9
(800,000)
Net liabilities
(1,364,308)
(1,170,499)
Capital and reserves
Called up share capital
400
400
Other reserves
3,584,773
3,584,773
Profit and loss reserves
(4,949,481)
(4,755,672)
Total equity
(1,364,308)
(1,170,499)
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 January 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges her 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.
HOP FARM REAL ESTATE LTD
BALANCE SHEET (CONTINUED)
AS AT 31 JANUARY 2022
31 January 2022
- 2 -
The financial statements were approved and signed by the director and authorised for issue on 5 August 2022
Ms D M Bull
Director
Company Registration No. 05317618
HOP FARM REAL ESTATE LTD
BALANCE SHEET (CONTINUED)
AS AT 31 JANUARY 2022
31 January 2022
- 3 -
1
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
2
Accounting policies
Company information
Hop Farm Real Estate Ltd is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
23 St Leonards Road, Bexhill-on-Sea, East Sussex, TN40 1HH.
2.1
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
The financial statements present information about the company as an individual undertaking and not about its group. The company and its subsidiary undertaking comprise a small-sized group. The company has therefore taken advantage of the exemptions provided by section 399 of the Companies Act 2006 not to prepare group accounts.
2.2
Going concern
The company incurred a loss for the year of £193,809 which was as expected by the director. The company maintains a good relationship with its bankers and creditors.
true
In the short and medium term the ability of the Group to continue to trade is dependent upon the continued support of the Groups bankers, and of the controlling party, Mr D P Bull, who has indicated that his support will continue to be forthcoming. The director is therefore satisfied that it remains appropriate to prepare the financial statements on the going concern basis. The financial statements do not include any adjustments that would result from a withdrawal of the loan facility provided by the company's bankers.
The director has reviewed the company’s forecasts and projections and, in particular, has considered the potential implications of the Coronavirus (COVID-19) pandemic. Whilst the eventual financial impact of the pandemic on the company and on the overall economy remains uncertain, the director believes that the company will be able to continue to trade. The company therefore continues to adopt the going concern basis in preparing its financial statements.
HOP FARM REAL ESTATE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2022
2
Accounting policies
(Continued)
- 4 -
2.3
Turnover
Turnover represents rents receivable from properties. Rent received is recognised for the period for which it is receivable.
2.4
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:
Country park land and buildings
2% straight line basis
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
.
2.5
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure
. Subsequently it is measured
at fair value a
t
the reporting end date.
Changes in fair value are recognised in profit or loss.
2.6
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
.
2.7
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.
HOP FARM REAL ESTATE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2022
2
Accounting policies
(Continued)
- 5 -
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.
2.8
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.
2.9
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.
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.
HOP FARM REAL ESTATE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2022
2
Accounting policies
(Continued)
- 6 -
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.
2.10
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.
2.11
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in
profit
or
loss
immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in
profit
or
loss
depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
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.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
1
1
HOP FARM REAL ESTATE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2022
- 7 -
4
Tangible fixed assets
Land and buildings
£
Cost
At 1 February 2021
9,464,630
Additions
3,594,127
At 31 January 2022
13,058,757
Depreciation and impairment
At 1 February 2021
890,250
Depreciation charged in the year
261,200
At 31 January 2022
1,151,450
Carrying amount
At 31 January 2022
11,907,307
At 31 January 2021
8,574,380
5
Investment property
2022
£
Fair value
At 1 February 2021
1,100,000
Additions
675,468
At 31 January 2022
1,775,468
A property was purchased during the year for £675,468.
The fair value of the original investment property has been arrived at on the basis of a valuation carried out by the director. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
On a historical cost basis this property would have been included at an original cost of £1,253,259.
6
Fixed asset investments
2022
2021
£
£
Investments
200
100
HOP FARM REAL ESTATE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2022
6
Fixed asset investments
(Continued)
- 8 -
Movements in fixed asset investments
Investments other than loans
£
Cost or valuation
At 1 February 2021
100
Additions
100
At 31 January 2022
200
Carrying amount
At 31 January 2022
200
At 31 January 2021
100
7
Significant undertakings
The company also has significant holdings in undertakings which are not consolidated:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Kent Entertainment Limited
UK
Ordinary
100.00
Kent Entertainment Properties Ltd
UK
Ordinary
100.00
The aggregate capital and reserves and the result for the year of significant undertakings noted above was as follows:
Name of undertaking
Profit/(Loss)
Capital and Reserves
£
£
Kent Entertainment Limited
587,365
102,551
Kent Entertainment Properties Ltd
(77,860)
(77,760)
8
Debtors
2022
2021
Amounts falling due within one year:
£
£
Other debtors
10,712
4,691
HOP FARM REAL ESTATE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2022
- 9 -
9
Creditors: amounts falling due after more than one year
2022
2021
£
£
Bank loans and overdrafts
800,000
10
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans and overdrafts
11
1,200,000
50,000
Other borrowings
11
12,909,158
9,683,619
Trade creditors
22,755
35,681
Other taxation and social security
4,366
Other creditors
1,419,073
355,421
Accruals and deferred income
17,102
4,606
15,572,454
10,129,327
11
Loans and overdrafts
2022
2021
£
£
Bank loans
1,200,000
850,000
Other loans
12,909,158
9,683,619
14,109,158
10,533,619
Payable within one year
14,109,158
9,733,619
Payable after one year
800,000
The bank loan is secured by a floating and fixed charge over the assets of the company.
12
Related party transactions
During the year the company charged rent of £135,000 (2021: £90,000) to Kent Entertainment Limited, a subsidiary undertaking. At the balance sheet date £1,025,076 (2021: £325,316) was owed to Kent Entertainment Ltd.
At the balance sheet date £393,997 (2021: £30,103) was owed to Yesterday's World Ltd a company in which the director Ms D M Bull is also a director.
At the balance sheet date £12,909,158 (2021: £9,683,620) was owed to the ultimate controlling party.
The ultimate controlling party has provided a personal guarantee with respect to the loan of £1,200,000 and further agreed a deed of postponement & subordination in respect of £3,000,000 of the monies owed to him by the company.