REGISTERED NUMBER:
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Strategic Report, |
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Report of the Directors and |
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Audited Financial Statements |
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for the Year Ended 31 August 2021 |
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for |
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HATS (ON DEMAND) LTD |
REGISTERED NUMBER:
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Strategic Report, |
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Report of the Directors and |
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Audited Financial Statements |
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for the Year Ended 31 August 2021 |
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for |
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HATS (ON DEMAND) LTD |
HATS (ON DEMAND) LTD (REGISTERED NUMBER: 07368860) |
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Contents of the Financial Statements |
FOR THE YEAR ENDED 31 AUGUST 2021 |
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Page |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 4 |
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Statement of Directors' Responsibilities | 6 |
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Report of the Independent Auditors | 7 |
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Income Statement | 11 |
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Other Comprehensive Income | 12 |
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Balance Sheet | 13 |
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Statement of Changes in Equity | 14 |
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Cash Flow Statement | 15 |
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Notes to the Cash Flow Statement | 16 |
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Notes to the Financial Statements | 17 |
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HATS (ON DEMAND) LTD |
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Company Information |
FOR THE YEAR ENDED 31 AUGUST 2021 |
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DIRECTORS: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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SENIOR STATUTORY
AUDITOR: |
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AUDITORS: |
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Newport House |
Newport Road |
Stafford |
Staffordshire |
ST16 1DA |
HATS (ON DEMAND) LTD (REGISTERED NUMBER: 07368860) |
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Strategic Report |
FOR THE YEAR ENDED 31 AUGUST 2021 |
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The directors present their strategic report for the year ended 31 August 2021. |
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REVIEW OF BUSINESS |
The results for the year and financial position of the company are shown in the annexed financial statements. The principal activity of the company was logistical solutions to NHS trusts, especially within the patient transport area. |
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PRINCIPAL RISKS AND UNCERTAINTIES |
The company operates in an uncertain environment that may result in increased risk, cost pressure and time pressures. Due to the nature of the industry additional pressures from customers can arise without time to plan for them. The following are the key risks that face the company; |
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-Financing risks |
The financial risk to the company going forward is dependent on the current market. As the company deals in transportation logistics over short and medium length contracts this mitigates immediate financing risk, however not long term risks. The company's finances are supported by its ability to gain a competitive advantage over its competitors. |
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-Market and other regulatory requirements |
Existing and possible future legislation, regulations and actions could cause additional operational expense, capital expenditure, reduction in scope and further product development change, the extent of which cannot be predicted. The company takes responsibility for ensuring that all relevant legislation is met. |
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-Operation risks |
These include equipment failure, damage or substandard service, and include changes in customer operations and targets. The risk of oil price changes affecting the cost of sales is an uncontrollable risk for the company. The company seeks to minimise these risks by investing in environmentally advanced equipment, improvements in training and customer engagement whilst closely monitoring the legislation developments within its market. |
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EMPLOYEES |
The company has continued to give full and fair consideration to applications made by persons of all diversities, having regard to their respective aptitudes and abilities, and to ensure that they benefit from training and career development programmes in common with all employees. The company has continued its policy of employee involvement by making information available to employees through the medium of frequent staff meetings, together with personal appraisals and feedback sessions. |
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PAYMENT OF CREDITORS |
The company does not follow any published code or statement on payment practice. However, it is the company's policy to settle all amounts due to its creditors on a timely basis, taking into account the credit terms by each supplier. |
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LIKELY FUTURE DEVELOPMENTS |
The company aims to continue to grow its client base, both organically and through new contracts in the field of patient transport service. The company has the structure in place and operational scope to grow within this sector. |
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HATS (ON DEMAND) LTD (REGISTERED NUMBER: 07368860) |
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Strategic Report |
FOR THE YEAR ENDED 31 AUGUST 2021 |
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KEY PERFORMANCE INDICATORS |
At HATS (On Demand) the directors recognise that they can only continue to deliver excellent standards of service to our clients by having a successful, sustainable and dynamic company. |
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To enable this, the directors use two Key Performance Indicators; Revenue and Net Profit. Both of these KPI's have been achieved. |
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There has been strong growth in turnover for the year driven by the full impact of new contracts signed within the year to 31/07/2019 and 31/08/2021. The directors and very pleased with the growth, especially considering the corresponding figures are over a 13 month period.. |
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With turnover increasing by 19% against a 13 month period in a difficult time due to the Covid 19 pandemic, the directors are pleased to see that theirs and the staffs hard work is producing the required KPI's. |
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The company's ability to continue to increase gross profit during these difficult times while still supplying continued operational effectiveness means the future years look very interesting and successful. |
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The directors are exceptionally proud of the company commercial performance, especially when combined with the excellent front line service levels and regulatory compliance. |
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ON BEHALF OF THE BOARD: |
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HATS (ON DEMAND) LTD (REGISTERED NUMBER: 07368860) |
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Report of the Directors |
FOR THE YEAR ENDED 31 AUGUST 2021 |
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The directors present their report with the financial statements of the company for the year ended 31 August 2021. |
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DIVIDENDS |
No dividends will be distributed for the year ended 31 August 2021. |
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DIRECTORS |
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Other changes in directors holding office are as follows: |
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POLITICAL DONATIONS AND EXPENDITURE |
The company paid £12,600 in the year to local charities, none of the charities were related to the trade of the company or political in anyway. |
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RESULTS REVIEW |
The company's key performance numbers within the year were: |
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Year | 2021 | 2020 |
Turnover | £24,627,315 | £19,985,836 |
Gross Profit | £5,875,719 | £3,889,575 |
Net Assets | £654,619 | £325,926 |
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The increase in turnover for the period driven by the full impact of COVID-19 pandemic on patient transport requirements, a full years impact of previously signed contracts plus new contracts that were started within the year. Corresponding figures are based on a 13 month period.. |
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Gross profit increased in line with this additional turnover. |
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Net profit and net assets have increased inline with targets this year. |
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The company aims to continue to grow its client base organically. The target growth area is within the patient transport sector. The company has the structure in place and operational scope to grow in this target area. |
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
HATS (ON DEMAND) LTD (REGISTERED NUMBER: 07368860) |
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Report of the Directors |
FOR THE YEAR ENDED 31 AUGUST 2021 |
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AUDITORS |
The auditors, Howards Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. We appointed new auditors following the passing away of our previous auditor, there were no other circumstances to be notified in the change of auditors. |
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ON BEHALF OF THE BOARD: |
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HATS (ON DEMAND) LTD (REGISTERED NUMBER: 07368860) |
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Statement of Directors' Responsibilities |
FOR THE YEAR ENDED 31 AUGUST 2021 |
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The directors are responsible for preparing the financial statements in accordance with applicable law and regulations. |
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Company law requires the directors to prepare the financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with Financial Reporting Standards 102 as adopted for use in the UK and Republic of Ireland. The financial statements are required by law to 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 year. In preparing these financial statements, the directors are required to |
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- select suitable accounting policies and then apply them consistently; |
- make judgements and 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. |
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The directors are responsible for keeping adequate accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
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The directors are responsible for the maintenance and integrity of corporate and financial information on the company's website. |
Report of the Independent Auditors to the Members of |
HATS (On Demand) Ltd |
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Opinion |
We have audited the financial statements of HATS (On Demand) Ltd (the 'company') for the year ended 31 August 2021 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of 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). |
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In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 August 2021 and of its profit 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. |
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Basis for opinion |
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 Auditors' 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. |
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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. |
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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. |
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Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
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Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report, the Report of the Directors and the Statement of Directors' Responsibilities, but does not include the financial statements and our Report of the Auditors thereon. |
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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. |
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In connection with our audit of the financial statements, 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 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. |
Report of the Independent Auditors to the Members of |
HATS (On Demand) Ltd |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
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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 identified material misstatements in the Strategic Report or the Report of the Directors. |
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We have nothing to report in respect of the following matters where 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 directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page six, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
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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. |
Report of the Independent Auditors to the Members of |
HATS (On Demand) Ltd |
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Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the group 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
As part of our planning process: |
" We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. [The company did not inform us of any known, suspected or alleged fraud.] |
" We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006, Health and safety Act 1974 and various employment law applicable. |
" We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly. |
" Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment. |
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The key procedures we undertook to detect irregularities including fraud during the course of the audit included: |
" Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual. |
" Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied. |
" Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to doubtful debt provisions, inventory valuations, depreciation methods, deferred and accrued income methodology. |
" Assessing the extent of compliance, or lack of, with the relevant laws and regulations and in particular those that are central to the entities ability to continue in operation.. |
" Testing key revenue lines, [in particular cut-off], for evidence of management bias. |
" Performing a physical verification of key and material assets. |
" Obtaining third-party confirmation of material balances where applicable to obtain an opinion.. |
" Documenting and verifying all significant related party balances and transactions. |
" Reviewing documentation such as the company board minutes, correspondence with solicitors, for discussions of irregularities including fraud. |
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Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors and additionally also those charged with the task of governance of the company. |
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A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/auditors responsibilities. [See Appendix 8]. This description forms part of our auditor's report. |
Report of the Independent Auditors to the Members of |
HATS (On Demand) Ltd |
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Use of our report |
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 a Report of the Auditors 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. |
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for and on behalf of
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Newport House |
Newport Road |
Stafford |
Staffordshire |
ST16 1DA |
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HATS (ON DEMAND) LTD (REGISTERED NUMBER: 07368860) |
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Income Statement |
FOR THE YEAR ENDED 31 AUGUST 2021 |
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Period |
1/8/19 |
Year ended | to |
31/8/21 | 31/8/20 |
Notes | £ | £ |
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TURNOVER |
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Cost of sales |
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GROSS PROFIT |
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Administrative expenses |
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OPERATING PROFIT and |
PROFIT BEFORE TAXATION |
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Tax on profit | 5 |
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PROFIT FOR THE FINANCIAL YEAR |
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HATS (ON DEMAND) LTD (REGISTERED NUMBER: 07368860) |
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Other Comprehensive Income |
FOR THE YEAR ENDED 31 AUGUST 2021 |
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Period |
1/8/19 |
Year ended | to |
31/8/21 | 31/8/20 |
Notes | £ | £ |
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PROFIT FOR THE YEAR |
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OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR |
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HATS (ON DEMAND) LTD (REGISTERED NUMBER: 07368860) |
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Balance Sheet |
31 AUGUST 2021 |
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31/8/21 | 31/8/20 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 6 |
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CURRENT ASSETS |
Stocks | 7 |
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Debtors | 8 |
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Cash at bank |
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CREDITORS |
Amounts falling due within one year | 9 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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PROVISIONS FOR LIABILITIES | 10 |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 11 |
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Retained earnings | 12 |
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SHAREHOLDERS' FUNDS |
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The financial statements were approved by the Board of Directors and authorised for issue on
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HATS (ON DEMAND) LTD (REGISTERED NUMBER: 07368860) |
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Statement of Changes in Equity |
FOR THE YEAR ENDED 31 AUGUST 2021 |
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Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
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Balance at 1 August 2019 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 31 August 2020 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 31 August 2021 |
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HATS (ON DEMAND) LTD (REGISTERED NUMBER: 07368860) |
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Cash Flow Statement |
FOR THE YEAR ENDED 31 AUGUST 2021 |
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Period |
1/8/19 |
Year ended | to |
31/8/21 | 31/8/20 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
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Tax paid |
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Net cash from operating activities |
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Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
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Sale of tangible fixed assets |
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Net cash from investing activities | ( |
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Cash flows from financing activities |
Loan movements in year | ( |
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Net cash from financing activities | ( |
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Increase/(decrease) in cash and cash equivalents |
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Cash and cash equivalents at
beginning of year |
2 |
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1,648 |
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Cash and cash equivalents at end
of year |
2 |
240,081 |
228 |
HATS (ON DEMAND) LTD (REGISTERED NUMBER: 07368860) |
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Notes to the Cash Flow Statement |
FOR THE YEAR ENDED 31 AUGUST 2021 |
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1. |
RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS |
Period |
1/8/19 |
Year ended | to |
31/8/21 | 31/8/20 |
£ | £ |
Profit before taxation |
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Depreciation charges |
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398,017 | 64,078 |
Decrease/(increase) in stocks |
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Increase in trade and other debtors | ( |
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Increase in trade and other creditors |
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Cash generated from operations |
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2. | CASH AND CASH EQUIVALENTS |
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The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
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Year ended 31 August 2021 |
31/8/21 | 1/9/20 |
£ | £ |
Cash and cash equivalents | 240,081 | 228 |
Period ended 31 August 2020 |
31/8/20 | 1/8/19 |
£ | £ |
Cash and cash equivalents | 228 | 1,648 |
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3. | ANALYSIS OF CHANGES IN NET FUNDS |
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At 1/9/20 | Cash flow | At 31/8/21 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 228 | 239,853 | 240,081 |
228 |
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240,081 |
Total | 228 | 239,853 | 240,081 |
HATS (ON DEMAND) LTD (REGISTERED NUMBER: 07368860) |
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Notes to the Financial Statements |
FOR THE YEAR ENDED 31 AUGUST 2021 |
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1. | STATUTORY INFORMATION |
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HATS (PTS) Ltd is a private company, limited by shares, registered in England and Wales. |
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Registered Office: |
c/o LSR Management Limited |
C2A Comet Studios |
DE Havilland Court, Penn Street |
Amersham |
Buckinghamshire |
HP7 0PX |
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Registered number: 07368860 |
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Head Office: |
44 Weir Road |
Wimbledon |
SW19 8UG |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 ("FRS 102"), the financial reporting standard applicable in the United Kingdom and the Republic of Ireland and the Companies Act 2006. |
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Significant judgements and estimates |
In determining and applying accounting policies, judgement is often required in respect of items where the choice of specific policy, accounting estimate or assumption to be followed could materially affect the reported results or net asset position of the company; it may later be determined that a different choice would have been more appropriate. Management considers that certain accounting estimates and assumptions relating to revenue, taxation, work in progress, provisions and contingent liabilities and accruals are its critical accounting estimates. |
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Cash & 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. |
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Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales. All billable journey's are reconciled to billing and approved by local authorities only once approved are they recognised as turnover. |
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Tangible fixed assets |
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Improvements to property | - |
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Plant and machinery | - |
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Fixtures and fittings | - |
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Computer equipment | - |
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HATS (ON DEMAND) LTD (REGISTERED NUMBER: 07368860) |
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Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 AUGUST 2021 |
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2. | ACCOUNTING POLICIES - continued |
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Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
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Taxation |
Taxation for the year comprises current and deferred 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. |
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Current or deferred taxation assets and liabilities are not discounted. |
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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. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
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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. |
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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. |
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Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
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The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
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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. |
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Going concern |
The trade, business, assets and liabilities of the company were transferred to HATS Group Ltd on the 1st September 2021 and therefore the company is no longer a going concern. The directors do not consider that any adjustments are necessary as a result of this transaction. |
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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. |
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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. |
HATS (ON DEMAND) LTD (REGISTERED NUMBER: 07368860) |
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Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 AUGUST 2021 |
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3. | EMPLOYEES AND DIRECTORS |
Period |
1/8/19 |
Year ended | to |
31/8/21 | 31/8/20 |
£ | £ |
Wages and salaries |
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Social security costs |
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Other pension costs |
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The average number of employees during the year was as follows: |
Period |
1/8/19 |
Year ended | to |
31/8/21 | 31/8/20 |
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Administration | 75 | 53 |
Operations | 467 | 240 |
|
|
|
Period |
1/8/19 |
Year ended | to |
31/8/21 | 31/8/20 |
£ | £ |
Directors' remuneration |
|
|
|
Information regarding the highest paid director for the year ended 31 August 2021 is as follows: |
|
|
Year ended |
31/8/21 |
£ |
Emoluments etc |
|
|
4. | OPERATING PROFIT |
|
The operating profit is stated after charging: |
|
Period |
1/8/19 |
Year ended | to |
31/8/21 | 31/8/20 |
£ | £ |
Depreciation - owned assets |
|
|
Auditors' remuneration |
|
|
HATS (ON DEMAND) LTD (REGISTERED NUMBER: 07368860) |
|
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 AUGUST 2021 |
|
5. | TAXATION |
|
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
Period |
1/8/19 |
Year ended | to |
31/8/21 | 31/8/20 |
£ | £ |
Deferred tax |
|
( |
) |
Tax on profit |
|
( |
) |
|
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
|
Period |
1/8/19 |
Year ended | to |
31/8/21 | 31/8/20 |
£ | £ |
Profit before tax |
|
|
Profit multiplied by the standard rate of corporation tax in
the UK of |
|
|
|
Effects of: |
Expenses not deductible for tax purposes |
|
|
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Research and development enhanced expenditure | (69,034 | ) | (3,207 | ) |
Deferred taxation | 6,264 | (44,777 | ) |
Total tax charge/(credit) | 6,264 | (44,777 | ) |
HATS (ON DEMAND) LTD (REGISTERED NUMBER: 07368860) |
|
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 AUGUST 2021 |
|
6. | TANGIBLE FIXED ASSETS |
Improvements | Fixtures |
to | Plant and | and | Computer |
property | machinery | fittings | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 September 2020 |
|
|
|
|
|
Additions |
|
|
|
|
|
Disposals |
|
|
( |
) | ( |
) | ( |
) |
At 31 August 2021 |
|
|
|
|
|
DEPRECIATION |
At 1 September 2020 |
|
|
|
|
|
Charge for year |
|
|
|
|
|
Eliminated on disposal |
|
|
( |
) | ( |
) | ( |
) |
At 31 August 2021 |
|
|
|
|
|
NET BOOK VALUE |
At 31 August 2021 |
|
|
|
|
|
At 31 August 2020 |
|
|
|
|
|
|
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life. |
Improvements to property - 10% on cost |
Fixtures and fittings - 25% on cost |
Motor vehicles - 10% on cost |
Computer equipment - 33% on cost |
|
The directors undertake an annual impairment review to determine whether there is an indication that an asset may be impaired. . If there is an indication of possible impairment, the recoverable amount of any asset or group of related assets, which is the higher of value in use and the fair value less cost to sell, is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit or loss. |
If an impairment loss is subsequently reversed, the carrying amount of the asset or group of related assets is increased to the revised estimate of its recoverable amount, but not to exceed the amount that would have been determined had no impairment loss been recognised for the asset or group of related assets in prior periods. A reversal of an impairment loss is recognised immediately in profit or loss. |
|
7. | STOCKS |
31/8/21 | 31/8/20 |
£ | £ |
Stocks |
|
|
HATS (ON DEMAND) LTD (REGISTERED NUMBER: 07368860) |
|
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 AUGUST 2021 |
|
8. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31/8/21 | 31/8/20 |
£ | £ |
Trade debtors |
|
|
Other debtors |
|
|
Prepayments |
|
|
|
|
|
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. |
|
9. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31/8/21 | 31/8/20 |
£ | £ |
Trade creditors |
|
|
Social security and other taxes |
|
|
Pension fund | 65,801 | 47,647 |
VAT | 658,886 | 606,981 |
Accrued expenses |
|
|
|
|
|
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. |
|
10. | PROVISIONS FOR LIABILITIES |
31/8/21 | 31/8/20 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
|
|
|
Deferred |
tax |
£ |
Balance at 1 September 2020 |
|
Provided during year |
|
Balance at 31 August 2021 |
|
HATS (ON DEMAND) LTD (REGISTERED NUMBER: 07368860) |
|
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 AUGUST 2021 |
|
11. | CALLED UP SHARE CAPITAL |
|
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31/8/21 | 31/8/20 |
value: | £ | £ |
|
Ordinary | £1 | 100 | 100 |
|
Ordinary "B" | £1 | 1 | 1 |
101 | 101 |
|
12. | RESERVES |
Retained |
earnings |
£ |
|
At 1 September 2020 |
|
Profit for the year |
|
At 31 August 2021 |
|
|
13. | PENSION COMMITMENTS |
|
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension costs charge represents contributions payable by the company to the fund and amounted to £237,865 (2020: £190,236). Contributions totalling £65,801 (2020: £47,647) were payable at the year end and are included in creditors. |
|
14. | FUNCTIONAL & PRESENTATIONAL CURRENCY |
|
The company's functional and presentational currency is GBP (£). |