Registration number:
Hero Towers Ltd
for the Year Ended 31 December 2022
Hero Towers Ltd
Contents
Company Information |
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Balance Sheet |
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Notes to the Financial Statements |
Hero Towers Ltd
Company Information
Director |
D Sandstrom |
Registered office |
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Auditors |
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Hero Towers Ltd
(Registration number: 09570325)
Balance Sheet as at 31 December 2022
Note |
2022 |
2021 |
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Fixed assets |
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Tangible assets |
- |
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Investments |
- |
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- |
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Current assets |
|||
Debtors |
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|
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Cash at bank and in hand |
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|
|
|
|
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Creditors: Amounts falling due within one year |
- |
( |
|
Net current assets/(liabilities) |
|
( |
|
Net assets/(liabilities) |
|
( |
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Capital and reserves |
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Share premium reserve |
18,946,217 |
18,946,217 |
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Retained earnings |
81,681,840 |
(20,196,550) |
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Shareholders' funds/(deficit) |
100,628,057 |
(1,250,333) |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the director has not delivered to the registrar a copy of the Profit and Loss Account.
Approved and authorised by the
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Hero Towers Ltd
Notes to the Financial Statements for the Year Ended 31 December 2022
General information |
The company is a private company limited by share capital, incorporated in UK.
The address of its registered office is:
United Kingdom
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Group accounts not prepared
Going concern
The financial statements have been prepared on a going concern basis, the validity of which is dependent upon the continuing support of the parent company Klarna Bank AB (publ).
Audit report
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Hero Towers Ltd
Notes to the Financial Statements for the Year Ended 31 December 2022
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Fixtures, fittings & equipment |
3 years straight line |
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Hero Towers Ltd
Notes to the Financial Statements for the Year Ended 31 December 2022
Trade debtors
Trade debtors are amounts due from customers for services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Share based payments
The company operated an equity-settled, share-based compensation plan, under which the entity receives services from employees as consideration for equity instruments (options) of the entity. The fair value of the employee services received is measured by reference to the estimated fair value at the grant date of equity instruments granted and is recognised as an expense over the vesting period. The estimated fair value of the option granted is calculated using the Black Scholes option pricing model. The total amount expensed is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied.
In the prior year the existing plan was discontinued upon acquisition of the company by Klarna Bank AB (publ). All vested options outstanding were exercised immediately prior to the acquisition, resulting in an accelerated expense during the year. The exercise proceeds received net of any directly attributable transaction costs were credited to share capital (nominal value) and share premium when the options were exercised.
Staff numbers |
The average number of persons employed by the company (including the director) during the year, was
Hero Towers Ltd
Notes to the Financial Statements for the Year Ended 31 December 2022
Tangible assets |
Furniture, fittings and equipment |
Total |
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Cost or valuation |
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At 1 January 2022 |
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Disposals |
( |
( |
At 31 December 2022 |
- |
- |
Depreciation |
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At 1 January 2022 |
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Charge for the year |
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Eliminated on disposal |
( |
( |
At 31 December 2022 |
- |
- |
Carrying amount |
||
At 31 December 2022 |
- |
- |
At 31 December 2021 |
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Investments |
2022 |
2021 |
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Investments in subsidiaries |
- |
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Subsidiaries |
£ |
Cost or valuation |
|
At 1 January 2022 |
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Disposals |
( |
At 31 December 2022 |
- |
Carrying amount |
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At 31 December 2022 |
- |
At 31 December 2021 |
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Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Hero Towers Ltd
Notes to the Financial Statements for the Year Ended 31 December 2022
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
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2022 |
2021 |
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Subsidiary undertakings |
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251 Little Falls Drive,
USA |
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On 1 July 2022 the company disposed of its entire interest in Hero Technologies Inc., comprising of 1,000 shares of common stock to Klarna Inc., a fellow group company.
Debtors |
Current |
Note |
2022 |
2021 |
Trade debtors |
- |
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Amounts owed by group undertakings and undertakings in which the company has a participating interest |
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- |
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Prepayments |
- |
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Other debtors |
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Corporation tax receivable |
24,316 |
457,607 |
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Hero Towers Ltd
Notes to the Financial Statements for the Year Ended 31 December 2022
Creditors |
Creditors: amounts falling due within one year
Note |
2022 |
2021 |
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Due within one year |
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Trade creditors |
- |
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Amounts owed to group undertakings and undertakings in which the company has a participating interest |
- |
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Taxation and social security |
- |
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Accruals and deferred income |
- |
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Other creditors |
- |
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- |
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Share capital |
Allotted, called up and fully paid shares
2022 |
2021 |
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No. |
£ |
No. |
£ |
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|
|
0.0614567 |
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0.0614567 |
Related party transactions |
Included in debtors is an amount of £99,308,184 owed from Klarna Bank AB UK Branch, a UK branch of Klarna Bank AB (publ), the parent company. During the year the company was charged an amount of £3,299,511 from Klarna Bank AB UK Branch which represented a recharge of payroll costs. During the year the company also charged interest of £2,488,959 to Klarna Bank AB UK Branch in respect of the intercompany loan.
Included in creditors is an amount of £Nil (2021: £973,967) owed to Hero Technologies Inc, a former wholly owned subsidiary of the company. During the year the company was charged an amount of £1,399,657 (2021: £3,449,394 from Hero Technologies Inc, which represented a recharge of costs and general overhead expenses.
Hero Towers Ltd
Notes to the Financial Statements for the Year Ended 31 December 2022
Parent and ultimate parent undertaking |
The company's ultimate and immediate parent company is
The consolidated financial statements of Klarna Bank AB (publ) are available to the public and may be obtained from https://klarna.com/international/.
APB Ethical Standards relevant circumstances |
In common with many businesses of our size and nature we use our auditors to prepare and submit tax returns to the tax authorities and to assist with the preparation of the financial statements.