REGISTERED NUMBER: 08784905 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Audited |
Consolidated Financial Statements |
for the Period 1 January 2022 to 31 August 2022 |
for |
ACORN (HOLDINGS) LIMITED |
REGISTERED NUMBER: 08784905 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Audited |
Consolidated Financial Statements |
for the Period 1 January 2022 to 31 August 2022 |
for |
ACORN (HOLDINGS) LIMITED |
ACORN (HOLDINGS) LIMITED (REGISTERED NUMBER: 08784905) |
Contents of the Consolidated Financial Statements |
for the Period 1 January 2022 to 31 August 2022 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Statement of Financial Position | 11 |
Company Statement of Financial Position | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 15 |
Consolidated Statement of Cash Flows | 16 |
Notes to the Consolidated Statement of Cash Flows | 17 |
Notes to the Consolidated Financial Statements | 19 |
ACORN (HOLDINGS) LIMITED |
Company Information |
for the Period 1 January 2022 to 31 August 2022 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Certified Accountants |
Statutory Auditors |
1 Brook Court |
Blakeney Road |
Beckenham |
Kent BR3 1HG |
ACORN (HOLDINGS) LIMITED (REGISTERED NUMBER: 08784905) |
Group Strategic Report |
for the Period 1 January 2022 to 31 August 2022 |
The results for the period and financial position of the company are as shown in the annexed financial statements covering the 8 month period ending 31August 2022. |
BUSINESS REVIEW |
Group revenue remained diverse, generated from 6 main operating divisions. |
1. Residential Sales |
2. Property & Estate Management |
3. Land and Commercial |
4. New Homes |
5. Financial Services |
6. Surveying |
The Acorn Group is a "full service" multi-brand property company operating from 40 branches in South East London and Kent. Our primary brands which are all well established and actively promoted by our in-house PR function are Acorn, John Payne, Langford Russell, MAP and Start Financial Services. |
The 8 months ended 31st August 2022 saw a strong trading performance across all divisions. As well as continued investment in our most recent branch openings, property management generated strong revenue growth in a supply restricted market. Sales activity remained buoyant although sales transaction spikes in March and June 2021 (caused by historically low interest rates and stamp duty changes) were not repeated in 2022. We are optimistic about trading volumes and performance in 2023 as we return to a more normalised market, although the economic impact of the Ukraine war, inflation and interest rate rises will provide market headwinds that will need to be managed. |
We are a people business and through our Acorn Academy we continue to develop our talented team. This provides industry leading in-house training and mentoring resulting in a "can do" culture throughout the Group. Our sustained expansion provides excellent opportunities for career progression which has resulted in a motivated and talented workforce being retained within the Group for the long term. |
We continue to work closely with our local communities on many sponsorship projects and especially with the Acorn Book Club. This registered charity (1184137) utilises our branch network to facilitate the collection of pre-loved children's books for distribution to local schools and relevant community projects. To date, thousands of local children have enjoyed reading the books that have been kindly donated to us. The Acorn Group not only provide donations but also resources via our branch network, head office and in house PR staff to assist book related projects in the communities we are a part of. |
On August 31st the Acorn Group was acquired by the Leaders Romans Group (LRG). This represented a great fit strategically with a much larger multi branded national estate agency business with values aligned to our own. Whilst retaining our own identity there are many operational benefits that LRG can provide to the Acorn Group that will improve our future trading performance and facilitate our ongoing expansion. |
The Directors, management team and LRG will continue to closely monitor the market and will ensure we are alert to operational changes that may be needed in order optimise performance. With substantial resources at our disposal the Directors are confident that the Group is well placed to deal with both opportunities and uncertainties that may lie ahead. |
ON BEHALF OF THE BOARD: |
ACORN (HOLDINGS) LIMITED (REGISTERED NUMBER: 08784905) |
Report of the Directors |
for the Period 1 January 2022 to 31 August 2022 |
The directors present their report with the financial statements of the company and the group for the period 1 January 2022 to 31 August 2022. |
PRINCIPAL ACTIVITY |
The principal activity of Acorn (Holdings) Limited in the year under review was that of holding company. |
The principal activity of the group in the year under review was that of estate agency and property related services. |
DIVIDENDS |
The total distribution of dividends for the period ended 31 August 2022 was £2,312,895 (£1,320,563 - 31.12.2021). |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
FINANCIAL INSTRUMENTS |
Details of the company's financial risk management objectives and policies are included in note 26 to the accounts. |
EMPLOYEES |
The Company has well developed policies for fair and equal treatment of all colleagues, employment of disabled persons and colleague participation. During employment the Company seeks to work with each individual, taking into account their personal circumstances, to enable them to reach and maximise their potential. |
The company applies the same criteria to disabled persons as it does to other employees and potential employees and is prepared, where necessary, to offer retraining to any of its employees who develop a disability. |
ENGAGEMENT WITH EMPLOYEES |
The Board prides itself on being readily accessible to all members of the Acorn Team. Our continued expansion has ensured that opportunities exist for long term career development. These long term opportunities are reflected in high employee retention levels throughout the Group. |
Employees are provided with competitive reward packages that reflect their individual responsibilities and contribution to business performance. Our systems and reporting processes ensure transparency of performance in real time across all divisions. We celebrate success and provide pathways for this to be achieved at every level. Mentoring and the Acorn Academy are also key to talent development. |
Defined protocols and ongoing training ensures that employee safety (and that of our clients) is maintained. |
ACORN (HOLDINGS) LIMITED (REGISTERED NUMBER: 08784905) |
Report of the Directors |
for the Period 1 January 2022 to 31 August 2022 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
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 group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Maths Partnership Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Acorn (Holdings) Limited |
Opinion |
We have audited the financial statements of Acorn (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 August 2022 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 August 2022 and of the group's profit for the period 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. |
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 group 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 group's and the parent 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
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. |
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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Acorn (Holdings) Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Acorn (Holdings) Limited |
Auditors' 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Extent to which the audit was capable of detecting irregularities, including fraud |
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 misstatement in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (FRS and the Companies Act 2006) and the relevant tax compliance regulations. |
- In addition, we concluded that there are certain significant laws and regulations which may have an effect on the determination of the amounts and disclosures in the financial statements being those laws and regulations relating to environmental, occupational health and safety and data protection. |
- We understood how the company is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. |
- We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur by meeting with management to understand where it considered there was susceptibility to fraud. We also considered performance targets and their influence on efforts made by management to manage earnings or influence the perceptions of analysts. We considered the programs and controls that the group has established to address risks identified, or that otherwise prevent, deter, and detect fraud; and how senior management monitors those programs and controls. Where the risk was higher, we performed audit procedures to address each identified fraud risk. These procedures included testing manual journals and challenging the assumptions made by management in their significant accounting estimates. Our audit procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. |
- Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations identified in the paragraphs above. Our procedures involved: journal entry testing, with a focus on manual journals and journals indicating large or unusual transactions based on our understanding of the business; review of legal and professional expenditure and supporting invoices; enquiries of those responsible for legal and compliance procedures, company management, and divisional management; and focused testing on laws and regulations that could give rise to a material misstatement in the company's financial statements. |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indicators of fraud or non-compliance with laws and regulations throughout the audit. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non compliance with all laws and regulations. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Acorn (Holdings) Limited |
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. |
for and on behalf of |
Chartered Certified Accountants |
Statutory Auditors |
1 Brook Court |
Blakeney Road |
Beckenham |
Kent BR3 1HG |
ACORN (HOLDINGS) LIMITED (REGISTERED NUMBER: 08784905) |
Consolidated |
Income Statement |
for the Period 1 January 2022 to 31 August 2022 |
Period |
1.1.22 |
to | Year Ended |
31.8.22 | 31.12.21 |
Notes | £ | £ |
TURNOVER | 3 | 22,849,138 | 35,525,798 |
Cost of sales | 145,641 | 188,843 |
GROSS PROFIT | 22,703,497 | 35,336,955 |
Administrative expenses | 20,367,133 | 28,399,344 |
2,336,364 | 6,937,611 |
Other operating income | (220,140 | ) | 184,798 |
OPERATING PROFIT | 5 | 2,116,224 | 7,122,409 |
Interest receivable and similar income | 2,012 | 1,539 |
2,118,236 | 7,123,948 |
Interest payable and similar expenses | 6 | 242,756 | 266,422 |
PROFIT BEFORE TAXATION | 1,875,480 | 6,857,526 |
Tax on profit | 7 | 390,079 | 1,462,669 |
PROFIT FOR THE FINANCIAL PERIOD |
Profit attributable to: |
Owners of the parent | 1,485,401 | 5,085,945 |
Non-controlling interests | - | 308,912 |
1,485,401 | 5,394,857 |
ACORN (HOLDINGS) LIMITED (REGISTERED NUMBER: 08784905) |
Consolidated |
Other Comprehensive Income |
for the Period 1 January 2022 to 31 August 2022 |
Period |
1.1.22 |
to | Year Ended |
31.8.22 | 31.12.21 |
Notes | £ | £ |
PROFIT FOR THE PERIOD | 1,485,401 | 5,394,857 |
OTHER COMPREHENSIVE INCOME |
Revaluation | 201,353 | 11,523 |
Income tax relating to other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE PERIOD, NET OF INCOME TAX |
201,353 |
11,523 |
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
1,686,754 |
5,406,380 |
Total comprehensive income attributable to: |
Owners of the parent | 1,686,754 | 5,097,468 |
Non-controlling interests | - | 308,912 |
1,686,754 | 5,406,380 |
ACORN (HOLDINGS) LIMITED (REGISTERED NUMBER: 08784905) |
Consolidated Statement of Financial Position |
31 August 2022 |
31.8.22 | 31.12.21 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | 5,900,168 | 1,329,618 |
Tangible assets | 11 | 2,574,493 | 2,758,140 |
Investments | 12 | - | 369,850 |
8,474,661 | 4,457,608 |
CURRENT ASSETS |
Debtors | 13 | 5,055,811 | 3,865,706 |
Cash at bank and in hand | 3,264,204 | 11,195,527 |
8,320,015 | 15,061,233 |
CREDITORS |
Amounts falling due within one year | 14 | 6,093,384 | 6,690,104 |
NET CURRENT ASSETS | 2,226,631 | 8,371,129 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
10,701,292 |
12,828,737 |
CREDITORS |
Amounts falling due after more than one year |
15 |
(3,700,570 |
) |
(4,898,206 |
) |
PROVISIONS FOR LIABILITIES | 19 | (151,854 | ) | (223,766 | ) |
NET ASSETS | 6,848,868 | 7,706,765 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 10,813 | 10,813 |
Merger reserve | 335,438 | 335,438 |
Fair value reserve | - | 201,353 |
Retained earnings | 6,502,617 | 6,737,039 |
SHAREHOLDERS' FUNDS | 6,848,868 | 7,284,643 |
NON-CONTROLLING INTERESTS | 21 | - | 422,122 |
TOTAL EQUITY | 6,848,868 | 7,706,765 |
The financial statements were approved by the Board of Directors and authorised for issue on 31 March 2023 and were signed on its behalf by: |
H Stavrinidis ACA - Director |
ACORN (HOLDINGS) LIMITED (REGISTERED NUMBER: 08784905) |
Company Statement of Financial Position |
31 August 2022 |
31.8.22 | 31.12.21 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Cash in hand |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 20 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 2,312,995 | 1,320,563 |
The financial statements were approved by the Board of Directors and authorised for issue on |
ACORN (HOLDINGS) LIMITED (REGISTERED NUMBER: 08784905) |
Consolidated Statement of Changes in Equity |
for the Period 1 January 2022 to 31 August 2022 |
Called up |
share | Retained | Merger |
capital | earnings | reserve |
£ | £ | £ |
Balance at 1 January 2021 | 10,813 | 3,055,861 | 335,438 |
Changes in equity |
Dividends | - | (1,320,563 | ) | - |
Total comprehensive income | - | 5,061,218 | - |
Transfer from fair value | - | 11,523 | - |
Purchase of own shares | - | (71,000 | ) | - |
10,813 | 6,737,039 | 335,438 |
Non-controlling interest arising on business combination |
- |
- |
- |
Balance at 31 December 2021 | 10,813 | 6,737,039 | 335,438 |
Changes in equity |
Dividends | - | (2,312,991 | ) | - |
Total comprehensive income | - | 1,877,216 | - |
Transfer from fair value | - | 201,353 | - |
10,813 | 6,502,617 | 335,438 |
Acquisition of non-controlling interest |
- |
- |
- |
Balance at 31 August 2022 | 10,813 | 6,502,617 | 335,438 |
ACORN (HOLDINGS) LIMITED (REGISTERED NUMBER: 08784905) |
Consolidated Statement of Changes in Equity - continued |
for the Period 1 January 2022 to 31 August 2022 |
Fair |
value | Non-controlling | Total |
reserve | Total | interests | equity |
£ | £ | £ | £ |
Balance at 1 January 2021 | 212,876 | 3,614,988 | 385,783 | 4,000,771 |
Changes in equity |
Dividends | - | (1,320,563 | ) | (297,300 | ) | (1,617,863 | ) |
Total comprehensive income | - | 5,061,218 | 308,912 | 5,370,130 |
Transfer from fair value | (11,523 | ) | - | - | - |
Purchase of own shares | - | (71,000 | ) | - | (71,000 | ) |
201,353 | 7,284,643 | 397,395 | 7,682,038 |
Non-controlling interest arising on business combination |
- |
- |
24,727 |
24,727 |
Balance at 31 December 2021 | 201,353 | 7,284,643 | 422,122 | 7,706,765 |
Changes in equity |
Dividends | - | (2,312,991 | ) | (30,307 | ) | (2,343,298 | ) |
Total comprehensive income | - | 1,877,216 | - | 1,877,216 |
Transfer from fair value | (201,353 | ) | - | - | - |
- | 6,848,868 | 391,815 | 7,240,683 |
Acquisition of non-controlling interest |
- |
- |
(391,815 |
) |
(391,815 |
) |
Balance at 31 August 2022 | - | 6,848,868 | - | 6,848,868 |
ACORN (HOLDINGS) LIMITED (REGISTERED NUMBER: 08784905) |
Company Statement of Changes in Equity |
for the Period 1 January 2022 to 31 August 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 August 2022 |
ACORN (HOLDINGS) LIMITED (REGISTERED NUMBER: 08784905) |
Consolidated Statement of Cash Flows |
for the Period 1 January 2022 to 31 August 2022 |
Period |
1.1.22 |
to | Year Ended |
31.8.22 | 31.12.21 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,997,592 | 6,993,468 |
Interest paid | (204,688 | ) | (233,148 | ) |
Interest element of hire purchase payments paid |
(7,852 |
) |
(10,367 |
) |
Finance costs paid | (30,216 | ) | - |
Government grants | - | 127,020 |
Tax paid | (449,185 | ) | (973,587 | ) |
Net cash from operating activities | 2,305,651 | 5,903,386 |
Cash flows from investing activities |
Purchase of intangible fixed assets | - | (52,500 | ) |
Purchase of tangible fixed assets | (242,982 | ) | (626,915 | ) |
Purchase of fixed asset investments | - | (391,754 | ) |
Sale of intangible fixed assets | - | 23,458 |
Interest received | 2,012 | 1,539 |
Net cash from investing activities | (240,970 | ) | (1,046,172 | ) |
Cash flows from financing activities |
Other loan repayments in the year | (1,667,436 | ) | (404,775 | ) |
Bank loan repayments | (626,806 | ) | (583,333 | ) |
New hire purchase loans in the year | - | 330,960 |
Hire purchase capital repayments in year | (90,678 | ) | (115,695 | ) |
Amount withdrawn by directors | (616,542 | ) | (840,348 | ) |
Shares purchased from minority interest | (4,651,244 | ) | (71,002 | ) |
Equity dividends paid | (2,312,991 | ) | (1,320,563 | ) |
Dividends paid to minority interests | (30,307 | ) | (297,300 | ) |
Net cash from financing activities | (9,996,004 | ) | (3,302,056 | ) |
(Decrease)/increase in cash and cash equivalents | (7,931,323 | ) | 1,555,158 |
Cash and cash equivalents at beginning of period |
2 |
11,195,527 |
9,640,369 |
Cash and cash equivalents at end of period |
2 |
3,264,204 |
11,195,527 |
ACORN (HOLDINGS) LIMITED (REGISTERED NUMBER: 08784905) |
Notes to the Consolidated Statement of Cash Flows |
for the Period 1 January 2022 to 31 August 2022 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Period |
1.1.22 |
to | Year Ended |
31.8.22 | 31.12.21 |
£ | £ |
Profit before taxation | 1,875,480 | 6,857,526 |
Depreciation charges | 507,322 | 1,177,757 |
Loss on disposal of fixed assets | - | 3,865 |
Loss on revaluation of fixed assets | 248,584 | 14,226 |
Impairment loss | 121,267 | 365,763 |
Amount written off subsidiary | - | (80,243 | ) |
Controlling interest in subsidiary | - | 71,000 |
Government grants | - | (127,020 | ) |
Finance costs | 242,756 | 266,422 |
Finance income | (2,012 | ) | (1,539 | ) |
2,993,397 | 8,547,757 |
Increase in trade and other debtors | (573,561 | ) | (443,190 | ) |
Increase/(decrease) in trade and other creditors | 577,756 | (1,111,099 | ) |
Cash generated from operations | 2,997,592 | 6,993,468 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Period ended 31 August 2022 |
31.8.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 3,264,204 | 11,195,527 |
Year ended 31 December 2021 |
31.12.21 | 1.1.21 |
£ | £ |
Cash and cash equivalents | 11,195,527 | 9,640,369 |
ACORN (HOLDINGS) LIMITED (REGISTERED NUMBER: 08784905) |
Notes to the Consolidated Statement of Cash Flows |
for the Period 1 January 2022 to 31 August 2022 |
3. | ANALYSIS OF CHANGES IN NET FUNDS/(DEBT) |
At 1.1.22 | Cash flow | At 31.8.22 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 11,195,527 | (7,931,323 | ) | 3,264,204 |
11,195,527 | (7,931,323 | ) | 3,264,204 |
Debt |
Finance leases | (269,628 | ) | 90,678 | (178,950 | ) |
Debts falling due within 1 year | (1,438,372 | ) | 438,372 | (1,000,000 | ) |
Debts falling due after 1 year | (4,645,731 | ) | 1,855,870 | (2,789,861 | ) |
(6,353,731 | ) | 2,384,920 | (3,968,811 | ) |
Total | 4,841,796 | (5,546,403 | ) | (704,607 | ) |
ACORN (HOLDINGS) LIMITED (REGISTERED NUMBER: 08784905) |
Notes to the Consolidated Financial Statements |
for the Period 1 January 2022 to 31 August 2022 |
1. | STATUTORY INFORMATION |
Acorn (Holdings) Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The results of the group have been consolidated under FRS 102. The subsidiaries have been consolidated from when they commenced trading or when acquired on the acquisition method of accounting. |
Investment in associates |
Investments in associate undertakings are recognised at fair value. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Goodwill |
Goodwill arises upon the acquisition of established trading businesses being either companies or unincorporated entities. Goodwill is calculated as the difference between the value of the consideration paid and the fair value of the net asset acquired. It is amortised from the date of acquisition through the profit and loss account over the directors estimate of its useful economic life of twenty years. This estimate of its useful life is subject to regular impairment reviews and these have not resulted in any material change of amortisation charges over the year. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Short leasehold | - |
Improvements to property | - |
Fixtures, fittings & equipment | - |
Taxation |
Taxation for the period comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
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 statement of financial position date. |
ACORN (HOLDINGS) LIMITED (REGISTERED NUMBER: 08784905) |
Notes to the Consolidated Financial Statements - continued |
for the Period 1 January 2022 to 31 August 2022 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
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 period end and that are expected to apply to the reversal of the timing difference. |
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. |
Operating leases |
Rent paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease. |
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. |
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. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Financial instruments |
Trade and other debtors |
Trade and other debtors are recognised and carried forward at invoiced amounts less provisions for doubtful debts. Bad debts are written off when identified. |
Cash and cash equivalents |
Cash and cash equivalents are included in the balance sheet at cost. Cash and cash equivalents comprise cash at bank and in hand and short term deposits with an original maturity of three months or less. |
Interest-bearing loans and borrowings |
All loans and borrowings are recognised initially at cost, which is the fair value of the consideration received, net of issue costs associated with the borrowings. |
After initial recognition, interest bearing loans and borrowings are measured at amortised cost using effective interest method. Gains or losses are recognised in the profit and loss account when liabilities are derecognised or impaired, as well as through the amortisation process. |
Minority interests |
Equity minority interests represent the share of profits less losses on ordinary activities attributable to the interests of equity shareholders in subsidiaries which are not wholly owned by the Group. |
ACORN (HOLDINGS) LIMITED (REGISTERED NUMBER: 08784905) |
Notes to the Consolidated Financial Statements - continued |
for the Period 1 January 2022 to 31 August 2022 |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
Period |
1.1.22 |
to | Year Ended |
31.8.22 | 31.12.21 |
£ | £ |
Estate agency | 12,349,442 | 21,142,190 |
Surveyors fees | 2,040,880 | 2,786,127 |
Property management income | 6,779,136 | 9,469,629 |
Commissions | 1,679,680 | 2,127,852 |
22,849,138 | 35,525,798 |
4. | EMPLOYEES AND DIRECTORS |
Period |
1.1.22 |
to | Year Ended |
31.8.22 | 31.12.21 |
£ | £ |
Wages and salaries | 12,565,509 | 17,796,568 |
Social security costs | 1,466,435 | 2,002,520 |
Other pension costs | 199,977 | 271,986 |
14,231,921 | 20,071,074 |
The average number of employees during the period was as follows: |
Period |
1.1.22 |
to | Year Ended |
31.8.22 | 31.12.21 |
Main Board | 5 | 5 |
Sales, Lettings & Financial Services | 200 | 184 |
Property Management & Central Services | 189 | 165 |
Land & Commercial | 13 | 11 |
Surveying subsidiary | 29 | 28 |
Period |
1.1.22 |
to | Year Ended |
31.8.22 | 31.12.21 |
£ | £ |
Directors' remuneration | 632,447 | 926,690 |
ACORN (HOLDINGS) LIMITED (REGISTERED NUMBER: 08784905) |
Notes to the Consolidated Financial Statements - continued |
for the Period 1 January 2022 to 31 August 2022 |
4. | EMPLOYEES AND DIRECTORS - continued |
Information regarding the highest paid director is as follows: |
Period |
1.1.22 |
to | Year Ended |
31.8.22 | 31.12.21 |
£ | £ |
Emoluments etc | 196,019 | 292,333 |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
Period |
1.1.22 |
to | Year Ended |
31.8.22 | 31.12.21 |
£ | £ |
Depreciation - owned assets | 361,561 | 602,142 |
Depreciation - assets on hire purchase contracts | 65,068 | 145,874 |
Loss on disposal of fixed assets | - | 3,865 |
Goodwill amortisation | 80,694 | 429,741 |
Auditors' remuneration | 30,000 | 29,994 |
Auditors' remuneration for non audit work | 25,339 | 23,162 |
Operating leases | 52,755 | 79,064 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period |
1.1.22 |
to | Year Ended |
31.8.22 | 31.12.21 |
£ | £ |
Bank loan interest | 114,949 | 81,137 |
Other interest | 89,739 | 152,011 |
Hire purchase interest | 7,852 | 10,367 |
Leasing | 30,216 | 22,907 |
242,756 | 266,422 |
ACORN (HOLDINGS) LIMITED (REGISTERED NUMBER: 08784905) |
Notes to the Consolidated Financial Statements - continued |
for the Period 1 January 2022 to 31 August 2022 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the period was as follows: |
Period |
1.1.22 |
to | Year Ended |
31.8.22 | 31.12.21 |
£ | £ |
Current tax: |
UK corporation tax | 480,590 | 1,485,297 |
Overprovision in prior years | (18,599 | ) | (23,248 | ) |
Total current tax | 461,991 | 1,462,049 |
Deferred tax | (71,912 | ) | 620 |
Tax on profit | 390,079 | 1,462,669 |
UK corporation tax has been charged at 19 % (2021 - 19 %). |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
Period |
1.1.22 |
to | Year Ended |
31.8.22 | 31.12.21 |
£ | £ |
Profit before tax | 1,875,480 | 6,857,526 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2021 - 19 %) |
356,341 |
1,302,930 |
Effects of: |
Expenses not deductible for tax purposes | 18,693 | 10,272 |
Income not taxable for tax purposes | - | (17,853 | ) |
Depreciation in excess of capital allowances | 105,976 | 158,802 |
Deferred tax | (71,912 | ) | 620 |
Group consolidation adjustments | - | 31,776 |
Overprovision in previous years | (18,599 | ) | (23,248 | ) |
Lease premium adjustment | (420 | ) | (630 | ) |
assets |
Total tax charge | 390,079 | 1,462,669 |
Tax effects relating to effects of other comprehensive income |
1.1.22 to 31.8.22 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation | 201,353 | - | 201,353 |
ACORN (HOLDINGS) LIMITED (REGISTERED NUMBER: 08784905) |
Notes to the Consolidated Financial Statements - continued |
for the Period 1 January 2022 to 31 August 2022 |
7. | TAXATION - continued |
31.12.21 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation | 11,523 | - | 11,523 |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
Period |
1.1.22 |
to | Year Ended |
31.8.22 | 31.12.21 |
£ | £ |
"AA" Ordinary shares of £1 each |
Interim | 311,160 | 452,055 |
"AB" Ordinary shares of £1 each |
Interim | 168,142 | 257,640 |
"AC" Ordinary shares of £1 each |
Interim | 205,899 | 281,156 |
"AD" Ordinary shares of £1 each |
Interim | 126,868 | 191,680 |
"BA" Ordinary shares of 1p each |
Interim | 1,500,922 | 138,032 |
2,312,991 | 1,320,563 |
ACORN (HOLDINGS) LIMITED (REGISTERED NUMBER: 08784905) |
Notes to the Consolidated Financial Statements - continued |
for the Period 1 January 2022 to 31 August 2022 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Patents |
and |
Goodwill | licences | Totals |
£ | £ | £ |
COST |
At 1 January 2022 | 3,592,168 | 13,008 | 3,605,176 |
Additions | 4,651,244 | - | 4,651,244 |
Disposals | (33,203 | ) | - | (33,203 | ) |
At 31 August 2022 | 8,210,209 | 13,008 | 8,223,217 |
AMORTISATION |
At 1 January 2022 | 2,265,408 | 10,150 | 2,275,558 |
Amortisation for period | 80,694 | - | 80,694 |
Eliminated on disposal | (33,203 | ) | - | (33,203 | ) |
At 31 August 2022 | 2,312,899 | 10,150 | 2,323,049 |
NET BOOK VALUE |
At 31 August 2022 | 5,897,310 | 2,858 | 5,900,168 |
At 31 December 2021 | 1,326,760 | 2,858 | 1,329,618 |
11. | TANGIBLE FIXED ASSETS |
Group |
Improvements | Fixtures, |
Short | to | fittings |
leasehold | property | & equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2022 | 294,032 | 2,689,078 | 4,468,818 | 7,451,928 |
Additions | - | 73,412 | 169,570 | 242,982 |
At 31 August 2022 | 294,032 | 2,762,490 | 4,638,388 | 7,694,910 |
DEPRECIATION |
At 1 January 2022 | 213,452 | 1,089,675 | 3,390,661 | 4,693,788 |
Charge for period | 5,600 | 148,862 | 272,167 | 426,629 |
At 31 August 2022 | 219,052 | 1,238,537 | 3,662,828 | 5,120,417 |
NET BOOK VALUE |
At 31 August 2022 | 74,980 | 1,523,953 | 975,560 | 2,574,493 |
At 31 December 2021 | 80,580 | 1,599,403 | 1,078,157 | 2,758,140 |
ACORN (HOLDINGS) LIMITED (REGISTERED NUMBER: 08784905) |
Notes to the Consolidated Financial Statements - continued |
for the Period 1 January 2022 to 31 August 2022 |
11. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Fixtures, |
fittings |
& equipment |
£ |
COST |
At 1 January 2022 |
and 31 August 2022 | 535,662 |
DEPRECIATION |
At 1 January 2022 | 239,493 |
Charge for period | 65,068 |
At 31 August 2022 | 304,561 |
NET BOOK VALUE |
At 31 August 2022 | 231,101 |
At 31 December 2021 | 296,169 |
12. | FIXED ASSET INVESTMENTS |
Group |
Listed | Unlisted |
investments | investments | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 January 2022 | 309,084 | 709,003 | 1,018,087 |
Revaluations | (248,584 | ) | - | (248,584 | ) |
At 31 August 2022 | 60,500 | 709,003 | 769,503 |
PROVISIONS |
At 1 January 2022 | - | 648,237 | 648,237 |
Impairments | 60,500 | 60,766 | 121,266 |
At 31 August 2022 | 60,500 | 709,003 | 769,503 |
NET BOOK VALUE |
At 31 August 2022 | - | - | - |
At 31 December 2021 | 309,084 | 60,766 | 369,850 |
ACORN (HOLDINGS) LIMITED (REGISTERED NUMBER: 08784905) |
Notes to the Consolidated Financial Statements - continued |
for the Period 1 January 2022 to 31 August 2022 |
12. | FIXED ASSET INVESTMENTS - continued |
Group |
Cost or valuation at 31 August 2022 is represented by: |
Listed | Unlisted |
investments | investments | Totals |
£ | £ | £ |
Valuation in 2021 | 248,584 | - | 248,584 |
Valuation in 2022 | (248,584 | ) | - | (248,584 | ) |
Cost | 60,500 | 709,003 | 769,503 |
60,500 | 709,003 | 769,503 |
If listed investments had not been revalued they would have been included at the following historical cost: |
31.8.22 | 31.12.21 |
£ | £ |
Cost | 60,500 | 60,500 |
Listed investments were valued on an open market basis on 31 August 2022 by by the directors . |
Under the share sale agreement these shares will be sold by the company after the lock in period ceases and net proceeds paid to the previous shareholders. |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2022 |
and 31 August 2022 |
NET BOOK VALUE |
At 31 August 2022 |
At 31 December 2021 |
The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Subsidiary |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
31.8.22 | 31.12.21 |
£ | £ |
Aggregate capital and reserves |
Profit for the period/year |
ACORN (HOLDINGS) LIMITED (REGISTERED NUMBER: 08784905) |
Notes to the Consolidated Financial Statements - continued |
for the Period 1 January 2022 to 31 August 2022 |
12. | FIXED ASSET INVESTMENTS - continued |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
31.8.22 | 31.12.21 |
£ | £ |
Trade debtors | 2,558,973 | 2,101,488 |
Other debtors | 164,814 | 93,231 |
Directors' current accounts | 1,456,793 | 840,249 |
Prepayments | 875,231 | 830,738 |
5,055,811 | 3,865,706 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
31.8.22 | 31.12.21 |
£ | £ |
Bank loans and overdrafts (see note 16) | 1,000,000 | 1,000,000 |
Other loans (see note 16) | - | 438,372 |
Hire purchase contracts (see note 17) | 115,456 | 131,728 |
Trade creditors | 865,607 | 666,660 |
Corporation tax | 1,043,601 | 1,030,795 |
Other creditors | 261,321 | 208,850 |
Other taxation & social security | 1,459,979 | 1,407,890 |
Accrued expenses | 1,347,418 | 1,805,809 |
Directors' current accounts | 2 | - |
6,093,384 | 6,690,104 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
31.8.22 | 31.12.21 |
£ | £ |
Bank loans (see note 16) | 2,789,861 | 3,416,667 |
Other loans (see note 16) | - | 1,229,064 |
Hire purchase contracts (see note 17) | 63,494 | 137,900 |
Other creditors | 847,215 | 114,575 |
3,700,570 | 4,898,206 |
ACORN (HOLDINGS) LIMITED (REGISTERED NUMBER: 08784905) |
Notes to the Consolidated Financial Statements - continued |
for the Period 1 January 2022 to 31 August 2022 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
31.8.22 | 31.12.21 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 1,000,000 | 1,000,000 |
Other loans | - | 438,372 |
1,000,000 | 1,438,372 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 1,000,000 | 1,000,000 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 1,789,861 | 2,416,667 |
Other loans - 2-5 years | - | 1,229,064 |
1,789,861 | 3,645,731 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
31.8.22 | 31.12.21 |
£ | £ |
Gross obligations repayable: |
Within one year | 125,203 | 143,397 |
Between one and five years | 68,546 | 148,882 |
193,749 | 292,279 |
Finance charges repayable: |
Within one year | 9,747 | 11,669 |
Between one and five years | 5,052 | 10,982 |
14,799 | 22,651 |
Net obligations repayable: |
Within one year | 115,456 | 131,728 |
Between one and five years | 63,494 | 137,900 |
178,950 | 269,628 |
Hire purchase contracts are secured on the assets to which they relate. |
ACORN (HOLDINGS) LIMITED (REGISTERED NUMBER: 08784905) |
Notes to the Consolidated Financial Statements - continued |
for the Period 1 January 2022 to 31 August 2022 |
17. | LEASING AGREEMENTS - continued |
Group |
Non-cancellable operating | leases |
31.8.22 | 31.12.21 |
£ | £ |
Within one year | 1,293,273 | 1,192,798 |
Between one and five years | 3,605,700 | 3,607,285 |
In more than five years | 1,096,021 | 1,196,769 |
5,994,994 | 5,996,852 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
31.8.22 | 31.12.21 |
£ | £ |
Bank loans | 3,789,861 | 4,416,667 |
Hire purchase contracts | 178,950 | 269,628 |
3,968,811 | 4,686,295 |
19. | PROVISIONS FOR LIABILITIES |
Group |
31.8.22 | 31.12.21 |
£ | £ |
Deferred tax |
Deferred tax | 151,854 | 176,535 |
Listed investments revalued | - | 47,231 |
151,854 | 223,766 |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2022 | 223,766 |
Accelerated capital allowances | (24,681 | ) |
Listed investments revalued | (47,231 | ) |
Balance at 31 August 2022 | 151,854 |
ACORN (HOLDINGS) LIMITED (REGISTERED NUMBER: 08784905) |
Notes to the Consolidated Financial Statements - continued |
for the Period 1 January 2022 to 31 August 2022 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.8.22 | 31.12.21 |
value: | £ | £ |
"AA" Ordinary | £1 | 4,500 | 4,500 |
"AB" Ordinary | £1 | 1,081 | 1,081 |
"AC" Ordinary | £1 | 4,500 | 4,500 |
"AD" Ordinary | £1 | 731 | 731 |
"BA" Ordinary | 1p | 1 | 1 |
10,813 | 10,813 |
21. | NON-CONTROLLING INTERESTS |
The equity minority interests represent the following "A" ordinary equity voting share capital of each of the group subsidiaries, |
31.08.22 | 31.12.21 |
Acorn Estate Management Limited | 0% | 25.00% |
Acorn Land & Strategic Property Division Limited | 0% | 42.50% |
Stuart Challis Limited | 0% | 12.37% |
Maitlands Acorn Professional Limited | 0% | 33.60% |
Each minority interest above also includes 0% 100% of the "C" ordinary shares in that company. |
22. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the period ended 31 August 2022 and the year ended 31 December 2021: |
31.8.22 | 31.12.21 |
£ | £ |
A S Cornish |
Balance outstanding at start of period | 300,000 | - |
Amounts advanced | 300,236 | 300,000 |
Amounts repaid | - | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of period | 600,236 | 300,000 |
R Sargent |
Balance outstanding at start of period | 300,000 | - |
Amounts advanced | 313,524 | 300,000 |
Amounts repaid | - | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of period | 613,524 | 300,000 |
ACORN (HOLDINGS) LIMITED (REGISTERED NUMBER: 08784905) |
Notes to the Consolidated Financial Statements - continued |
for the Period 1 January 2022 to 31 August 2022 |
22. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES - continued |
N C Louth |
Balance outstanding at start of period | 72,029 | - |
Amounts advanced | 73,609 | 72,029 |
Amounts repaid | - | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of period | 145,638 | 72,029 |
P S Deveney |
Balance outstanding at start of period | 48,259 | - |
Amounts advanced | 48,899 | 48,259 |
Amounts repaid | - | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of period | 97,158 | 48,259 |
H Stavrinidis ACA |
Balance outstanding at start of period | - | - |
Amounts advanced | 236 | - |
Amounts repaid | - | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of period | 236 | - |
Interest has been charged at 2% on directors loans. |
23. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Other related parties |
31.8.22 | 31.12.21 |
£ | £ |
Sales | - | 36,835 |
Purchases | - | 499,332 |
Recharged expenses | - | 1,579,748 |
Interest paid | - | 61,435 |
Amount due from related party | - | 17,865 |
Amount due to related party | - | 691,742 |
24. | ULTIMATE CONTROLLING PARTY |
As at 31st August 2022, the company was indirectly owned and controlled by certain investment vehicles advised by Platinum Equity Advisor, LLC. |
ACORN (HOLDINGS) LIMITED (REGISTERED NUMBER: 08784905) |
Notes to the Consolidated Financial Statements - continued |
for the Period 1 January 2022 to 31 August 2022 |
25. | CLIENT ACCOUNTS |
The group holds money on behalf of clients in separate designated bank accounts. These balances are not included within the assets or liabilities of these financial statements. |
26. | FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES |
The company holds or issues financial instruments for trading purposes. |
In addition, various financial instruments (e.g. debtors, creditors, accruals and prepayments) arise directly from the company's operations. |
Transactions in financial instruments result in the company assuming or transferring to another party one or more of the financial risks described below. |
Credit risk |
The company monitors credit risk closely and considers its current policies of credit checks meets its objectives of managing exposure to credit risk. |
The company has no significant concentrations of credit risk. Amounts shown in the balance sheet best represent the maximum credit risk exposure in the event other parties fail to perform their obligations under financial instruments. |
Interest rate risk |
The company closely monitors its exposure to changes in interest rates on borrowings. Consideration is given to likely future interest rates when agreeing facilities with the company's bankers and the potential impact of the significant change in interest rates is considered when setting annual budgets. The directors believe that these steps adequately meet their objectives of managing exposure to interest rate risk. |