Company Registration No. SC162636 (Scotland)
HFD PROPERTY MANAGEMENT SERVICES LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 23 DECEMBER 2019
PAGES FOR FILING WITH REGISTRAR
HFD PROPERTY MANAGEMENT SERVICES LTD
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 10
HFD PROPERTY MANAGEMENT SERVICES LTD
BALANCE SHEET
AS AT
23 DECEMBER 2019
23 December 2019
- 1 -
2019
2018
Notes
£'000
£'000
£'000
£'000
Fixed assets
Tangible assets
4
5
21
Investment properties
5
22,356
22,356
22,361
22,377
Current assets
Stocks
889
889
Debtors
6
16,456
15,753
Cash at bank and in hand
6,137
628
23,482
17,270
Creditors: amounts falling due within one year
7
(4,852)
(2,791)
Net current assets
18,630
14,479
Total assets less current liabilities
40,991
36,856
Creditors: amounts falling due after more than one year
8
(10,417)
(9,822)
Provisions for liabilities
(429)
(401)
Net assets
30,145
26,633
Capital and reserves
Called up share capital
11
12,923
12,923
Profit and loss reserves
17,222
13,710
Total equity
30,145
26,633
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 25 September 2020 and are signed on its behalf by:
Mr W D Hill
Director
Company Registration No. SC162636
HFD PROPERTY MANAGEMENT SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 23 DECEMBER 2019
- 2 -
1
Accounting policies
Company information
HFD Property Management Services Ltd is a
private
company
limited by shares
incorporated in Scotland.
The registered office is
Phoenix House, Phoenix Crescent, Strathclyde Business Park, Bellshill, Lanarkshire, ML4 3NJ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
-
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash
f
low and related notes and disclosures
;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income
;
-
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel
.
The financial statements of the company are consolidated in the financial statements of
HFD Group Limited
.
T
hes
e
consolidated financial statements are available from its registered office,
Phoenix
,
House
,
Phoenix Crescent
,
Strathclyde Business Park
,
Bellshill
,
Lanarkshire
,
ML4 3NJ.
HFD PROPERTY MANAGEMENT SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 23 DECEMBER 2019
1
Accounting policies
(Continued)
- 3 -
1.2
Going concern
The directors are required to prepare the statutory financial statements on the going concern basis unless it is inappropriate to presume that the
company
will continue in business. In satisfaction of this responsibility the directors have considered the
company's
ability to meet its liabilities as they fall due.
The
company
meets its day to day working capital requirements through loans, overdraft facilities and finance leases. The
company
closely monitors and manages its funding position and liquidity risk throughout the year to ensure that it has access to sufficient funds to meet forecast cash requirements.
T
he
company
is actively monitoring the impact on operations from Covid-19 outbreak and has implemented a number of mitigations to minimise the impact. The risks considered by the Board incl
ude:
•
Decreased economic activity impacting the sector through government restrictions or impact on customers;
•
The consequential impact of this on the company's revenue and cash flow
;
•
Interruptions to operations due to measures taken to contain an outbreak on our sites
•
The impact of the above on the company's ability to satisfy its liabilities as they fall due.
The company's going concern assessment considers its principal risks, including those in respect of Covid-19 and is dependant on a number of factors including financial performance and access to funding facilities. The directors acknowledge that the group could be adversely affected by the pandemic depending on how the situation evolves and how this impacts the sector moving forward.
The current and future financial position of the company, its cash flows and liquidity position have been reviewed by the directors. The company has agreed long term funding with its bankers and the directors are confident that the existing funding facilities will provide sufficient headroom to meet forecast cash requirements having considered any additional requirements that would be contingent on a downturn in activity over the same period (specifically in relation to the COVID-19 pandemic). There has been little impact on the company's financial performance since the year end and levels of rental income are being maintained. The company's continued growth and long-term forecast outlook has provided further assurance to the directors regarding its financial position.
As such, the directors consider that it is appropriate to prepare financial statements on a going concern basis.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Turnover primarily represents amounts invoiced during the year for the provision of letting and property management services, exclusive of value added tax. Income which relates to future periods is included in accruals and deferred income. Turnover also includes food and beverage sales during the year, excluding value added tax.
HFD PROPERTY MANAGEMENT SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 23 DECEMBER 2019
1
Accounting policies
(Continued)
- 4 -
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated
amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.5
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
25% on cost
Computer equipment
25% on cost
Motor vehicles
25% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.6
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure
. Subsequently it is measured
at fair value a
t
the reporting end date.
The surplus or deficit on revaluation is recognised in profit or loss.
1.7
Impairment of fixed assets
A provision for impairment is established when there is objective evidence that, as a result of one or more events that occurred after the initial recognition, the estimated future cash flows have been impacted.
1.8
Stocks
Stocks are stated at the lower of cost, using the first in first out method, and selling price less costs to complete and sell.
Development land is stated at the lower of acquisition costs and net realisable value.
HFD PROPERTY MANAGEMENT SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 23 DECEMBER 2019
1
Accounting policies
(Continued)
- 5 -
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
HFD PROPERTY MANAGEMENT SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 23 DECEMBER 2019
1
Accounting policies
(Continued)
- 6 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.15
Rental income received from tenants, where HFD Property Management Services Limited is acting as agent, is recorded in the balance sheet until such time as payment is made to the landlord of the building concerned.
HFD PROPERTY MANAGEMENT SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 23 DECEMBER 2019
- 7 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2019
2018
Number
Number
Total
24
27
3
Intangible fixed assets
Goodwill
£'000
Cost
At 24 December 2018 and 23 December 2019
550
Amortisation and impairment
At 24 December 2018 and 23 December 2019
550
Carrying amount
At 23 December 2019
-
At 23 December 2018
-
4
Tangible fixed assets
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£'000
£'000
£'000
£'000
Cost
At 24 December 2018 and 23 December 2019
138
23
29
190
Depreciation and impairment
At 24 December 2018
135
17
17
169
Depreciation charged in the year
3
6
7
16
At 23 December 2019
138
23
24
185
Carrying amount
At 23 December 2019
-
-
5
5
At 23 December 2018
3
6
12
21
The net book value of tangible fixed assets includes an amount of £4,286 (2018 - £11,633) in respect of assets held under finance leases and hire purchase contracts. The related depreciation charge on these assets for the year was £7,347 (2018 - £7,347).
HFD PROPERTY MANAGEMENT SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 23 DECEMBER 2019
- 8 -
5
Investment property
2019
£'000
Fair value
At 24 December 2018 and 23 December 2019
22,356
The directors are of the opinion that the value of the investment property at the period end is not significantly different to its current carrying value.
6
Debtors
2019
2018
Amounts falling due within one year:
£'000
£'000
Trade debtors
539
447
Amounts owed by group undertakings
13,677
14,030
Other debtors
2,240
1,276
16,456
15,753
7
Creditors: amounts falling due within one year
2019
2018
£'000
£'000
Bank loans
1,226
1,122
Trade creditors
557
387
Amounts owed to group undertakings
1,804
71
Taxation and social security
171
196
Other creditors
1,094
1,015
4,852
2,791
8
Creditors: amounts falling due after more than one year
2019
2018
Notes
£'000
£'000
Bank loans and overdrafts
9
10,417
9,818
Obligations under finance leases
-
4
10,417
9,822
HFD PROPERTY MANAGEMENT SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 23 DECEMBER 2019
- 9 -
9
Loans and overdrafts
2019
2018
£'000
£'000
Bank loans
11,643
10,940
Payable within one year
1,226
1,122
Payable after one year
10,417
9,818
The bank loan is secured by a bond and floating charge over the assets and undertakings of the company and a first ranking standard security over the company's heritable properties.
10
Provisions for liabilities
2019
2018
£'000
£'000
Deferred tax liabilities
429
401
11
Called up share capital
2019
2018
£'000
£'000
Ordinary share capital
Issued and fully paid
10,000 Ordinary of 1p each
-
-
12,922,500 Ordinary - of £1 each
12,923
12,923
12,923
12,923
The Ordinary shares of £0.01 each and the Ordinary shares of £1 each rank pari passu in all respects except in relation to income. The £0.01 Ordinary shares and the £1 Ordinary shares shall rank separately with regard to entitlement to dividend such that the directors may at any time resolve to declare or recommend a dividend on one class of share and not on the other class.
12
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
Emphasis of matter - risks and uncertainties relating to COVID-19 pandemic
We draw attention to note 1.
2
of the financial statements, which details the risks and uncertainties arising from the COVID-19 pandemic. Our opinion is not modified with respect to this matter.
The senior statutory auditor was Peter Gallanagh.
The auditor was Azets Audit Services.
HFD PROPERTY MANAGEMENT SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 23 DECEMBER 2019
- 10 -
13
Contingent liabilities
The company has given its bankers a guarantee that in the event of HFD Avondale House Limited and HFD Management Services LLP not repaying their bank loans, the company will satisfy this debt. At 23 December 2019, this debt was £5,458,000.
14
Parent company
The company's immediate parent undertaking is HFD (Managements) Limited which is the smallest group of companies for which the financial statements are prepared. The company's ultimate parent undertaking is HFD Group Limited which is the largest group of companies for which financial statements are prepared. Copies of the group financial statements are available to the public from Companies House, Edinburgh Quay 2, 139 Fountainbridge, Edinburgh, EH3 9FF.
W D Hill is considered to be the ultimate controlling party due to his majority shareholding in HFD Group Limited.
2019-12-23
2018-12-24
false
25 September 2020
CCH Software
CCH Accounts Production 2020.200
No description of principal activity
This audit opinion is unqualified
Mr W D Hill
Mrs R Hill
Mr T D Anderson
Miss D J Hill
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