Heritage Auctions UK Ltd
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Registered number: |
08817865
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Directors' Report |
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The directors present their report and financial statements for the year ended 31 December 2017. |
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Principal activities |
The company's principal activity during the year continued to be that of dealing in bullions and antique coins via auctions and direct selling. Since acquisition by Heritage Capital Corporation, the main activity of Heritage Auctions UK Ltd is to locate consignments for auction in the US.
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Future developments |
The results of the year are satisfactory and directors expect an increase in sales in near future. |
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Financial instrument risk |
The company's activities expose it to a variety of financial risks, including credit risks, capital risks and market risk. The company's overall management programme focuses on the unpredictablility of financial markets and seeks to minimise the potential adverse effects on its financial performance. The company has in place policies to ensure sales are made to customers with an appropriate credit history.
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Dividends |
Particulars of recommended dividends are detailed in notes to financial statements. |
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Directors |
The following persons served as directors during the year: |
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Mr Ronald Steven Ivy ( Appointed 7 September 2017)
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Mr Nikolaos Mathioudakis ( Resigned 7 September 2017)
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Mr Massimiliano Tursi ( Resigned 7 September 2017)
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Directors' responsibilities |
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Basis of 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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
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Conclusions relating to going concern |
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: |
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the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or |
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the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
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Other information |
The other information comprises the information included in the report and financial statements, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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. |
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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: |
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the information given in the strategic report and the directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements. |
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Matters on which we are required to report by exception |
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Stocks |
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Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.
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Debtors
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
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Creditors
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate.
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2 |
Going Concern |
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In assessing the appropriateness of the going concern assumption, the director has produced a cashflow projection. This shows a significant net cash outflow for going concern period. The financial statements have been prepared on the going concern basis on the grounds that the parent undertaking has indicated its ability to support the company to cover projected net cash outflows and therefore to meet its financial obligations as they fall due for a period of at least 12 months from the date on which these accounting statements are signed. The financial statements make no provision for any adjustment should the going concern basis not be appropriate. |
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3 |
Analysis of turnover |
2017 |
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2016 |
£ |
£ |
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Sale of goods |
1,488,621 |
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2,795,092 |
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Commissions |
60,159 |
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- |
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1,548,780 |
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2,795,092 |
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By geographical market: |
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UK |
181,360 |
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139,754 |
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Europe |
455,807 |
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2,236,074 |
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Rest of world |
911,613 |
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419,264 |
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1,548,780 |
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2,795,092 |
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4 |
Operating profit |
2017 |
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2016 |
£ |
£ |
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This is stated after charging: |
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Depreciation of owned fixed assets |
9,353 |
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9,353 |
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Operating lease rentals - land and buildings |
28,655 |
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54,287 |
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Auditors' remuneration for audit services |
3,550 |
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- |
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Carrying amount of stock sold |
1,266,030 |
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2,528,385 |
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5 |
Directors' emoluments |
2017 |
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2016 |
£ |
£ |
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Emoluments |
40,000 |
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60,000 |
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6 |
Staff costs |
2017 |
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2016 |
£ |
£ |
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Wages and salaries |
86,399 |
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77,250 |
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Social security costs |
2,087 |
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4,302 |
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88,486 |
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81,552 |
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7 |
Interest payable |
2017 |
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2016 |
£ |
£ |
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Other loans |
11,643 |
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11,550 |
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8 |
Taxation |
2017 |
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2016 |
£ |
£ |
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Analysis of charge in period |
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Current tax: |
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UK corporation tax on profits of the period |
4,494 |
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15,814 |
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Tax on profit on ordinary activities |
4,494 |
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15,814 |
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Factors affecting tax charge for period |
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The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: |
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2017 |
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2016 |
£ |
£ |
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(Loss)/profit on ordinary activities before tax |
(35,704) |
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69,718 |
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Standard rate of corporation tax in the UK
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20% |
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20% |
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£ |
£ |
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Profit on ordinary activities multiplied by the standard rate of corporation tax |
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(7,141) |
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13,944 |
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Effects of: |
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Expenses not deductible for tax purposes |
11,635 |
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1,870 |
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Current tax charge for period |
4,494 |
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15,814 |
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9 |
Tangible fixed assets |
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Land and buildings |
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Plant and machinery |
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Total |
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At valuation |
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At cost |
£ |
£ |
£ |
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Cost or valuation |
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At 1 January 2017 |
49,703 |
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45,493 |
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95,196 |
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Impairment |
(49,703) |
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- |
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(49,703) |
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At 31 December 2017 |
- |
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45,493 |
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45,493 |
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Depreciation |
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At 1 January 2017 |
- |
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19,977 |
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19,977 |
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Charge for the year |
- |
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9,353 |
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9,353 |
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At 31 December 2017 |
- |
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29,330 |
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29,330 |
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Carrying amount |
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At 31 December 2017 |
- |
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16,163 |
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16,163 |
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At 31 December 2016 |
49,703 |
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25,516 |
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75,219 |
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10 |
Stocks |
2017 |
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2016 |
£ |
£ |
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Finished goods and goods for resale |
- |
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251,847 |
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11 |
Debtors |
2017 |
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2016 |
£ |
£ |
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Trade debtors |
6,049 |
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121,502 |
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Other debtors |
156,500 |
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- |
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Prepayments and accrued income |
23,897 |
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- |
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186,446 |
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121,502 |
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12 |
Creditors: amounts falling due within one year |
2017 |
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2016 |
£ |
£ |
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Trade creditors |
66,235 |
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231,555 |
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Amounts owed to group undertakings and undertakings in which the company has a participating interest |
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219,070 |
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- |
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Corporation tax |
4,494 |
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15,814 |
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Other taxes and social security costs |
- |
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6,286 |
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Accruals and deferred income |
4,897 |
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- |
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294,696 |
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253,655 |
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13 |
Creditors: amounts falling due after one year |
2017 |
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2016 |
£ |
£ |
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Other creditors |
- |
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355,025 |
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14 |
Share capital |
Nominal |
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2017 |
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2017 |
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2016 |
value |
Number |
£ |
£ |
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Allotted, called up and fully paid: |
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Ordinary shares
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£1 each |
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100 |
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100 |
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100 |
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15 |
Profit and loss account |
2017 |
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2016 |
£ |
£ |
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At 1 January |
45,016 |
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11,112 |
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(Loss)/profit for the financial year |
(40,198) |
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53,904 |
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Dividends |
- |
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(20,000) |
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At 31 December |
4,818 |
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45,016 |
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16 |
Other financial commitments |
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Total future minimum lease payments under non-cancellable operating leases: |
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Land and buildings |
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Land and buildings |
Other |
Other |
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2017 |
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2016 |
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2017 |
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2016 |
£ |
£ |
£ |
£ |
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Falling due: |
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within one year |
74,000 |
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- |
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- |
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- |
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within two to five years |
296,000 |
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- |
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- |
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- |
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370,000 |
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- |
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- |
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- |
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17 |
Controlling party |
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The company is controlled by its ultimate parent company "Heritage Capital Corporation" (USA) by virtue of controlling interest.
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18 |
Presentation currency |
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The financial statements are presented in Sterling.
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19 |
Legal form of entity and country of incorporation |
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Heritage Auctions UK Ltd is a private company limited by shares and incorporated in England. |
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20 |
Principal place of business |
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The address of the company's principal place of business and registered office is: |
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6 Shepherd Street |
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London |
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W1J 7JE |
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21 |
Reconciliations on adoption of FRS 102 |
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Profit and loss for the year ended 31 December 2016 |
£ |
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Profit under former UK GAAP |
53,904 |
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Profit under FRS 102 |
53,904 |
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Balance sheet at 31 December 2016 |
£ |
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Equity under former UK GAAP |
45,116 |
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Equity under FRS 102 |
45,116 |
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Balance sheet at 1 January 2016 |
£ |
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Equity under former UK GAAP |
- |
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Equity under FRS 102 |
- |
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