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Registered number:
06644687
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WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2018
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WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
COMPANY INFORMATION
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H D Easterbrook
(appointed
1 October 2017
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Over Court Barns, Over Lane
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Chartered Accountants
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Statutory Auditors
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WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
CONTENTS
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Independent auditors' report
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Consolidated statement of comprehensive income
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Consolidated statement of financial position
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Company statement of financial position
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Consolidated statement of changes in equity
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Company statement of changes in equity
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Consolidated statement of cash flows
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Notes to the financial statements
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WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
GROUP STRATEGIC REPORT
FOR THE PERIOD ENDED 30 SEPTEMBER 2018
The directors present their consolidated strategic report for Willoughby 1000 Limited (“the Company” or “Willoughby”) and subsidiaries for the period ended 30 September 2018.
The principal activity of Willoughby in the year under review was that of a holding company and the provision of consultancy and management services. The Company’s trading subsidiaries were Hydrock Consultants Limited, Hydrock NMC Limited, HRCP Limited and QDS Contracting (in administration) Limited ("QDS") (all together, with Willoughby hereinafter “the Group”).
Willoughby extended its accounting period by 6 months, so these accounts present the consolidated results for the 18 months ended 30 September 2018. The prior year was for the 12 months ended 31 March 2017.
On 12 March 2018, QDS went into administration and its accounting records were passed to the administrators. Management accounts were prepared up until January 2018 which showed turnover of around £21m and operating profit of £725k to this date. However, because the records were passed to the administrators, the directors are unable to provide the records to support the figures per the management accounts. Furthermore, given they were only prepared until 31 January 2018, they do not show the true position of the QDS at the point of administration. As a result, the directors have taken the decision not to include the results for QDS within the consolidated financial statements of Willoughby for the period ended 30 September 2018.
Group consolidated turnover in the period was £49.5m, compared to the prior year of £53.9m. Operating losses for the period were £4.8m following significant exceptional costs incurred during the period. These relate to the losses and write offs incurred from QDS going into administration.
The entire issued share capital of Willoughby was acquired by Hydrock Holdings Limited on 15th August 2018, which became the ultimate parent company of the Group from this date.
The Company continues to rely on the financial support of Group companies, including its new parent.
Principal risks and uncertainties
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The Group’s key risks and uncertainties comprise external market conditions and delays or cancellations of major projects. This is mitigated by ensuring there is no dependence on any particular client, project, geography or discipline.
The Group reduces credit risk by monitoring the behaviour of clients and through the operation of credit management procedures in line with normal business practice.
A prudent liquidity and cash flow risk management policy is operated, forecasting short and medium-term working capital requirements, and maintaining sufficient cash and availability of funding through an adequate amount of committed credit facilities and bank borrowings.
The Group’s interest rate risk arises primarily from bank borrowings and other facilities used to fund working capital. Management monitor borrowing levels and market interest rates on a regular basis to identify and consider options to mitigate any exposure to ensure this remains appropriate to the Group’s circumstances.
Financial key performance indicators
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The Group monitors performance by a number of measures including monthly management accounts and dashboard reports. These include relevant KPIs such as profit and loss accounts (company and divisional), cash flow, overheads per fee earner, gross and operating margins, debtor days and other related statistics, work in progress, orders and prospects.
Page 1
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WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2018
Other key performance indicators
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The Group also monitors key non-financial KPIs such as staff engagement, client satisfaction and health and safety matters.
The Group holds regular board and various other formal meetings covering operations, business development, marketing, IT and HR.
This report was approved by the board on 14 November 2019
and signed on its behalf.
Page 2
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WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
DIRECTORS' REPORT
FOR THE PERIOD ENDED 30 SEPTEMBER 2018
The directors present their report and the financial statements for the period ended 30 September 2018.
Directors' responsibilities statement
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The directors are responsible for preparing the Group strategic report, the Directors' report and the
consolidated
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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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:
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select suitable accounting policies for the Group's financial statements and then apply them consistently;
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make judgments and accounting estimates that are reasonable and prudent;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to 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.
The loss for the period, after taxation and minority interests, amounted to £
5,494,050
(2017:
loss
£
2,853,450
)
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No dividends have been recommended to be paid in relation to the period ending 30 September 2018.
The directors who served during the period were:
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H D Easterbrook
(appointed
1 October 2017
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All future developments are included within the Strategic Report.
Page 3
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WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2018
Recruiting and retaining a highly skilled workforce is a core part of Hydrock’s continued success and future strategy.
The Group is committed to a policy of recruitment and promotion on the basis of aptitude and ability without discrimination of any kind and to training for the existing and future needs of the business. Full and fair consideration is given to all applications for employment made by disabled persons, who are also given equal consideration for training and career development.
Hydrock communicates actively and regularly with its employees using a wide variety of initiatives including an annual staff engagement survey, quarterly newsletters, monthly e-shots and a company Intranet that is updated daily with news and information. Regular meetings are also held between staff and management at all levels across the business.
The directors also operate a structured plan of holding board meetings in a different office every month, obtaining local staff feedback whilst visiting.
A five-year strategic plan is produced every year, including historical results and forecasts. This is circulated to all staff, followed by a roadshow to present the plan at each office, followed by discussion and debate.
Employee involvement in Hydrock’s performance is encouraged and maintained by disclosure of financial results and participation in a companywide profit-sharing bonus scheme.
Disclosure of information to auditors
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Each of the persons who are
directors at the time when this Directors' report is approved has confirmed that:
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so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and
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the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.
Post balance sheet events
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There have been no significant events affecting the Group since the year end.
During the year Burnside Chartered Accountants resigned as auditors and Bishop Fleming LLP were appointed. Bishop Fleming LLP will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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Over Court Barns, Over Lane
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Page 4
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WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
We were engaged to audit the consolidated financial statements of Willoughby 1000 Limited (the 'parent Company') and its subsidiaries (the 'Group') for the period ended 30 September 2018, which comprise the Consolidated Statement of comprehensive income, the Group and Company Statements of financial position, the Consolidated Statement of cash flows, the Consolidated and Company Statement of changes in equity and the related notes, 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).
We do not express an opinion on the accompanying consolidated financial statements of the Group. Because of the significance of the matter described in the Basis for Disclaimer of Opinion section of our report, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these consolidated financial statements.
Basis for disclaimer of opinion
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We have been unable to audit the results of QDS Contracting Limited (previously Hydrock Contracting Limited) in the consolidated financial statements of Willoughby 1000 Limited for the period from 1 April 2017 to 12 March 2018. QDS Contracting Limited was a 100% owned subsidiary of the Group during this period.
On 12 March 2018, QDS Contracting Limited went into administration and its accounting records were passed to the administrators. Management accounts were prepared up until January 2018 and show turnover of £21m with a loss attributable to the owners of the parent Company of £725k. However, because all records were passed to the administrators, the directors are unable to provide the support to amounts presented in the management accounts to allow us to determine whether any adjustments might have been found necessary. In addition given that the management accounts were only prepared until 31 January 2018 they may not show a true and fair position of the company for the period to the point of administration and the related loss on disposal at the point of loss of control.
As a result, the Consolidated Statement of comprehensive income and Consolidated Statement of cash flows do not include the results of QDS Contracting Limited for the period ended 1 April 2017 to 12 March 2018 nor the loss on disposal of QDS Contracting Limited as at 12 March 2018. The financial statements have not been prepared in line with 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), because the Principles of consolidation were not applied.
The directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the and our Auditors' report thereon. Our opinion on the 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 Consolidated , our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Consolidated 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 report that fact. As described in the Basis for disclaimer of opinion section above, the Group should have consolidated QDS Contracting Limited for the period ended 1 April 2017 to 12 March 2018 and accounted for the loss on disposal of QDS Contracting Limited as at 12 March 2018. We have concluded that the other information is materially misstated for the same reason with respect to the amounts or other items in the Annual Report affected by the failure to consolidate QDS Contracting Limited.
Page 5
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WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED) (CONTINUED)
Opinion on other matters prescribed by the Companies Act 2006
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Because of the significance of the matter described in the basis for disclaimer opinion section of our report, we have been unable to form an opinion, whether based on the work undertaken in the course of the audit:
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the information given in the Group strategic report and the Directors' report for the financial period for which the are prepared is consistent with the ; and
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the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
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Notwithstanding our disclaimer of an opinion on the financial statements, 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 performed subject to the pervasive limitation described above, we have not identified material misstatements in the Group strategic report or the Directors' report.
Arising from the limitation of our work referred to above we have not obtained all the information and explanations that we considered necessary for the purpose of our audit and we were unable to determine whether adequate accounting records have not been kept,or returns adaquate for our audit have been have not been received from branches not visited by us,or whether the financial statements are not in agreement with the accounting records and returns.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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certain disclosures of directors' remuneration specified by law are not made
Responsibilities of directors
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As explained more fully in the Directors' responsibilities statement on page 3, the directors are responsible for the preparation of the and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of that are free from material misstatement, whether due to fraud or error.
In preparing the , 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.
Auditors' responsibilities for the audit of the financial statements
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Our responsibility is to conduct an audit of the Group's financial statements in accordance with International Standards on Auditing (UK) and to issue an auditors' report. However because of the matters described in the Basis for disclaimer of opinion section above, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements.
We are independant 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.
Page 6
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WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED) (CONTINUED)
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 an Auditors' report 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.
Ria Burridge FCCA
(Senior statutory auditor)
for and on behalf of
Bishop Fleming LLP
Chartered Accountants
Statutory Auditors
16 Queen Square
Bristol
BS1 4NT
14 November 2019
Page 7
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WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 SEPTEMBER 2018
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Exceptional administrative expenses
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Interest receivable and similar income
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Interest payable and expenses
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Loss for the financial period
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(Purchase of) / discount on own shares by EBT
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Issue/grant of shares by EBT
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Other comprehensive loss for the period
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Total comprehensive loss for the period
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(Loss) for the period attributable to:
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Non-controlling interests
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Owners of the parent Company
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The notes on pages 22 to 46 form part of these financial statements.
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Page 8
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WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
REGISTERED NUMBER:
06644687
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT
30 SEPTEMBER 2018
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Share based payment reserve
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Equity attributable to owners of the parent Company
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Non-controlling interests
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Page 9
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WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
REGISTERED NUMBER:
06644687
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(CONTINUED)
AS AT
30 SEPTEMBER 2018
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
:
The notes on pages 22 to 46 form part of these financial statements.
Page 10
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WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
REGISTERED NUMBER:
06644687
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT
30 SEPTEMBER 2018
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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Share based payment reserve
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Page 11
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WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
REGISTERED NUMBER:
06644687
COMPANY STATEMENT OF FINANCIAL POSITION
(CONTINUED)
AS AT
30 SEPTEMBER 2018
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
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The notes on pages 22 to 46 form part of these financial statements.
Page 12
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WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED
30 SEPTEMBER 2018
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Share based payment reserve
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Equity attributable to owners of parent Company
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Non-controlling interests
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At 1 April 2017 (as previously stated)
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At 1 April 2017 (as restated)
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Comprehensive income for the period
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Other comprehensive income
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Total comprehensive income for the period
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Transfer to/from profit and loss account
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Reduction in minority shareholding
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Page 13
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WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE PERIOD ENDED
30 SEPTEMBER 2018
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At 1 April 2017 (as previously stated)
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At 1 April 2017 (as restated)
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Comprehensive income for the period
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Other comprehensive income
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Total comprehensive income for the period
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Transfer to/from profit and loss account
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Reduction in minority shareholding
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Page 14
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WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE PERIOD ENDED
30 SEPTEMBER 2018
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The notes on pages 22 to 46 form part of these financial statements.
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Page 15
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WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED
31 MARCH 2017
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Share based payment reserve
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Equity attributable to owners of parent Company
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Non-controlling interests
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At 1 April 2016 (as previously stated)
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At 1 April 2016 (as restated)
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Comprehensive income for the year
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Other comprehensive income
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Total comprehensive income for the year
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Page 16
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WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE PERIOD ENDED
31 MARCH 2017
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At 1 April 2016 (as previously stated)
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At 1 April 2016 (as restated)
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Comprehensive income for the year
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Other comprehensive income
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Total comprehensive income for the year
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The notes on pages 22 to 46 form part of these financial statements.
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Page 17
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WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
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COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED
30 SEPTEMBER 2018
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Share based payment reserve
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At 1 April 2017 (as previously stated)
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At 1 April 2017 (as restated)
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Comprehensive income for the year
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Other comprehensive income
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Total comprehensive income for the period
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The notes on pages 22 to 46 form part of these financial statements.
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Page 18
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WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
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COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED
31 MARCH 2017
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Share based payment reserve
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Comprehensive income for the year
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Other comprehensive income
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Total comprehensive income for the year
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The notes on pages 22 to 46 form part of these financial statements.
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Page 19
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WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 30 SEPTEMBER 2018
Cash flows from operating activities
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Loss for the financial period
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Amortisation of intangible assets
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Depreciation of tangible assets
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Loss on disposal of tangible assets
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Decrease/(increase) in debtors
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Increase/(decrease) in creditors
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Write off of related party loans
|
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Share based payment charges
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Net cash generated from operating activities
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Cash flows from investing activities
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Purchase of intangible fixed assets
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Purchase of tangible fixed assets
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Sale of tangible fixed assets
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Payment of deferred consideration
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Net cash received on acquisition
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Net cash from investing activities
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Page 20
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WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2018
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Cash flows from financing activities
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Repayment of/new finance leases
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Dividends paid to non controlling interests
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Net cash used in financing activities
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Net increase/(decrease) in cash and cash equivalents
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Cash and cash equivalents at beginning of period
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Cash and cash equivalents at the end of period
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Cash and cash equivalents at the end of period comprise:
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The notes on pages 22 to 46 form part of these financial statements.
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Page 21
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WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2018
Willoughby 1000 Limited (formerly Hydrock Group Limited) is a private company, limited by shares, registered in the United Kingdom. The Company's registered number and registered office address can be found on the General Information page.
2.
Accounting policies
|
|
Basis of preparation of financial statements
|
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 April 2016.
Therefore, the Group continues to recognise a merger reserve which arose on a past business combination that was accounted for as a merger in accordance with UK GAAP as applied at that time.
At the period end, the group had net liabilities of £3,082,925 of which £6,055,005 was an intercompany loan with Hydrock Holdings Limited. On 18 October 2018, Willoughby 1000 Limited sold its investment in Hydrock Consultants Limited to Hydrock Holdings Limited for £6,400,000 which was settled in part by the intercompany loan to clear bring the liability to £nil.
Willoughby 1000 Limited and its subsidiaries will continue to be supported by the other companies within the Hydrock group and therefore the directors believe it to be appropriate to prepare the accounts on a going concern basis.
Page 22
|
WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2018
2.
Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙
the amount of revenue can be measured reliably;
∙
it is probable that the Group will receive the consideration due under the contract;
∙
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙
the costs incurred and the costs to complete the contract can be measured reliably.
|
|
Operating leases: the Group as lessee
|
Rentals paid under operating leases are charged to the Consolidated statement of comprehensive income on a straight line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
The Group has taken advantage of the optional exemption available on transition to FRS 102 which allows lease incentives on leases entered into before the date of transition to the standard 01 April 2016 to continue to be charged over the period to the first market rent review rather than the term of the lease.
Interest income is recognised in the Consolidated statement of comprehensive income using the effective interest method.
Finance costs are charged to the Consolidated statement of comprehensive income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in the Consolidated statement of comprehensive income in the period in which they are incurred.
Page 23
|
WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2018
2.
Accounting policies (continued)
DEFINED CONTRIBUTION PENSION PLAN
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in the Consolidated statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Group in independently administered funds.
|
|
Current and deferred taxation
|
The tax expense for the period comprises current and deferred tax. Tax is recognised in the Consolidated statement of comprehensive income, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
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 and the Group operate and generate income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of financial position date, except that:
∙
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
∙
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
∙
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Exceptional items are transactions that fall within the ordinary activities of the Group but are presented separately due to their size or incidence.
Page 24
|
WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2018
2.
Accounting policies (continued)
Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Consolidated statement of comprehensive income over its useful economic life.
Other intangible assets
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straigh line method and reducing balance basis..
Depreciation is provided on the following basis:
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25% on reducing balance and 25% on cost
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25% on cost and 25% on reducing balance
|
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25% on cost and 15-25% on reducing balance
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|
20-33% on cost and 25-33% on reducing balance
|
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Consolidated statement of comprehensive income.
Page 25
|
WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2018
2.
Accounting policies (continued)
|
|
Impairment of fixed assets and goodwill
|
Assets that are subject to depreciation or amortisation are assessed at each reporting date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.
Investments in subsidiaries are measured at cost less accumulated impairment.
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
|
|
Cash and cash equivalents
|
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Page 26
|
WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2018
2.
Accounting policies (continued)
The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in the case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated statement of comprehensive income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the reporting date.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
Page 27
|
WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2018
|
Judgments in applying accounting policies and key sources of estimation uncertainty
|
The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgments that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amount of revenues and expenses during the year.
The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date are discussed below.
Revenue and profit/margin recognition
The group’s revenue recognition and long-term construction and service contracts policies are set out below. These policies are central to the way in which the group values the work it has carried out at each reporting date and the estimation of the percentage completion of the contract. These policies require forecasts to be made of the outcome of the long-term construction and service contracts and require assessments and judgements to be made on the recovery of precontract costs, variations in work scopes, claim recoveries, expected contract costs to complete and the progress on contract programmes. The group has appropriate control procedures in place to ensure estimates are calculated on a consistent basis.
Impairment of goodwill
Determining whether goodwill or other intangible assets are impaired generally requires an estimation of the value in use of the intangible assets or the cash-generating units to which goodwill has been calculated. Judgement is also required in determining the cash-generating units to which goodwill is allocated. The value in use calculation requires the directors to estimate the future cash flows expected to arise from the cash-generating unit and a suitable discount rate in order to calculate present value.
Analysis of turnover by country of destination:
Page 28
|
WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2018
|
|
|
The operating loss is stated after charging:
|
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Depreciation - owned assets
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|
Depreciation - assets on hire purchase contracts
|
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Other operating lease rentals
|
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|
Loss/(profit) on disposal of fixed assets
|
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|
Auditors' remuneration - audit of financial statements
|
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|
Auditors' remuneration - audit of subsidiary financial statements
|
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|
Auditors' remuneration - other compliance services
|
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|
Staff costs, including directors' remuneration, were as follows:
|
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Cost of defined contribution scheme
|
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|
The average monthly number of employees, including the directors, during the period was as follows:
|
Page 29
|
WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2018
|
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|
Company contributions to defined contribution pension schemes
|
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|
Compensation for loss of office as employee
|
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|
During the period retirement benefits were accruing to
3
directors
(2017:
3
)
in respect of defined contribution pension schemes.
|
|
The highest paid director received remuneration of £
465,133
(2017: £
121,563
)
.
|
|
The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £
19,256
(2017: £
36,468
)
.
|
|
Other interest receivable
|
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Interest payable and similar expenses
|
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Finance leases and hire purchase contracts
|
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Page 30
|
WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2018
|
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|
Current tax on loss/profit for the year
|
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|
Adjustments in respect of previous periods
|
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Origination and reversal of timing differences
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Taxation on loss/profit on ordinary activities
|
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|
Page 31
|
WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2018
10.
Taxation (continued)
|
Factors affecting tax charge for the period/year
|
|
The tax assessed for the period/year is higher than
(2017: higher than)
the standard rate of corporation tax in the UK of 19%
(2017:
20
%)
. The differences are explained below:
|
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Loss on ordinary activities before tax
|
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|
Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2017: 20%)
|
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Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
|
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|
Depreciation in excess of capital allowances
|
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|
Adjustments to tax charge in respect of prior periods
|
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|
Other timing differences leading to an increase (decrease) in taxation
|
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|
Tax losses carried forward
|
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|
Total tax charge for the period/year
|
|
|
|
During the period, dividends of £6,626 were paid from Hydrock NMC Limited.
During the period to 31 March 2018, dividends previously declared were waived and cancelled totalling £22,775 (2017: £148,964).
|
Page 32
|
WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2018
|
|
|
|
|
Amounts due from related undertakings written off
|
|
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|
Freehold property impairment
|
|
|
|
Loss on disposal of subsidiaries
|
|
|
|
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|
As per note 25, the Group acquired HRCP Limited which was purchased for £6,001 and had net assets of £479,834, generating negative goodwill of £473,833 which is amortised over 2 years.
|
Page 33
|
WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2018
|
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|
Charge for the period on owned assets
|
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Charge for the period on financed assets
|
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Page 34
|
WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2018
14.
Tangible fixed assets (continued)
|
The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
|
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Charge for the period on owned assets
|
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|
Charge for the period on financed assets
|
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Page 35
|
WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2018
14.
Tangible fixed assets (continued)
|
The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
|
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Page 36
|
WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2018
|
|
Investments in subsidiary companies
|
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The following were subsidiary undertakings of the Company:
|
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|
|
Hydrock Consultants Limited
|
Over Court Barns, Over Lane, Almondsbury, Bristol, BS32 4DF
|
Multi-disciplinary engineering consultants
|
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|
|
Over Court Barns, Over Lane, Almondsbury, Bristol, BS32 4DF
|
Engineering management consultancy services
|
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|
|
Over Court Barns, Over Lane, Almondsbury, Bristol, BS32 4DF
|
Hire of plant and machinery
|
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|
Hydrock Corporate Trustees One Limited
|
Over Court Barns, Over Lane, Almondsbury, Bristol, BS32 4DF
|
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|
|
Hydrock Corporate Trustees Two Limmited
|
Over Court Barns, Over Lane, Almondsbury, Bristol, BS32 4DF
|
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Page 37
|
WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2018
Subsidiary undertakings (continued)
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On 15 August 2018 the Company purchased the remaining 49% holding in Hydrock NMC Limited that it did not own for consideration of £365,050, of which £215,050 was deferred consideration over 2 years.
One of the Company’s subsidiaries, Hydrock Contracting Limited changed its name to QDS Contracting Limited on 5 February 2018. On 12 March 2018 QDS entered administration. The directors do not anticipate any recovery of the residual investment held in that company and have accordingly recognised a provision in full against the remaining carrying value of the investment in that company.
On 29 June 2018, the Company purchased an 89% holding in HRCP Limited, a company incorporated in the United Kingdom, for consideration amounting to £1.
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Page 38
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WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2018
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Amounts owed by group undertakings
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Prepayments and accrued income
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Cash and cash equivalents
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Page 39
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WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2018
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Creditors: amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Obligations under finance lease and hire purchase contracts
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Accruals and deferred income
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The bank loans and overdraft are secured by a fixed and floating charge over all current and future assets of the group companies. The bank loan is secured by a fixed charge over the group's freehold property.
Hire purchase contracts are secured on the assets to which they relate.
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Creditors: amounts falling due after more than one year
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Net obligations under finance leases and hire purchase contracts
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Amounts owed to group undertakings
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Page 40
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WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2018
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Hire purchase and finance leases
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Minimum lease payments under hire purchase fall due as follows:
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Financial assets measured at fair value through profit or loss
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Financial assets that are debt instruments measured at amortised cost
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Financial liabilities measured at amortised cost
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Financial assets measured at fair value through profit or loss comprise cash and cash equivalents.
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Financial assets that are debt instruments measured at amortised cost comprise trade debtors, other debtors and accrued income
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Financial liabilities measured at amortised cost comprise bank overdrafts, loans, hire purchase liabilities, other creditors and accruals.
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Page 41
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WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2018
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Charged to profit or loss
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Charged to profit or loss
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Accelerated capital allowances
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ALLOTTED, CALLED UP AND FULLY PAID
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23,500
(2017:
23,500
)
Ordinary
shares of £
1.00
each
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Page 42
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WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2018
Share premium account
Share premium represents the excess of proceeds received over the nominal value of new
share issued.
Other reserves
Share based payment
reserve
The share based payment reserve represents the fair value of shares granted by the EBT to employees in excess of the fair value of any consideration received.
Other reserve
On 20 April 2011 the company established the Hydrock Employee Benefit Trust 2011 ("EBT") to acquire shares in the company which are held for future issue to current and future employees.The other reserve relates to shares held by the EBT for which it has not unconditionally transferred the rights of ownership to any third party.
During the period the EBT acquired a total of 505 Ordinary B shares from former employees for a total consideration of £100,000. The EBT also agreed a discount to a deferred consideration for shares acquired in the prior year and accordingly reduced the cost of the shares held by the EBT by £600,000. On 22 September 2017 all 4,413 Ordinary shares held by the EBT were redesignated as Ordinary B shares.
QDS entered administration on 12 March 2018. At this time the EBT held 4,918 Ordinary shares (2017 - 4,413) of £1 each in the company at a cost of £2,168,744 (2017 - 2,668,744). Following on from this the directors recognised an impairment in the carrying value of the shares held by the EBT to reduce this to their nominal value of £4,918.
On 19 April 2018, the EBT unconditionally transferred the remaining shares it held in the company to various employees for nominal value which was deemed to be market value.
Merger Reserve
The merger reserve arose during the year ended 31 March 2009 on the business combination with Hydrock Consultants Limited, Hydrock Special Projects Limited and Structures One Limited. During the period the company released the elements of the reserve relating to Hydrock Special Projects Limited and Structures One Limited, offsetting this against the impairment of the investment to which they related.
Profit and loss account
Profit and loss account includes all current and prior period profits and losses.
Page 43
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WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2018
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The Company acquired 89% of the share capital of HRCP on 29 June 2018 for consideration amounting to £1. Additional legal and professional fees of £6,000 were incurred in respect of the investment in HRCP Limited.
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Recognised amounts of identifiable assets acquired and liabilities assumed
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Total identifiable net assets
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Total purchase consideration
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Directly attributable costs
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Total purchase consideration
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Cash outflow on acquisition
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Purchase consideration settled in cash, as above
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Net cash outflow on acquisition
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Page 44
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WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2018
In the current period the directors identified that the freehold land held by the company was over-valued and that the value of impairment to bring the carrying value down to open market value was material in both the current period and in respect of previous reporting periods. Accordingly, they have recognised this impairment charge, totalling £484,757, as a prior year adjustment. The impact of the prior year adjustment on comparative period balance sheets has been to reduce net assets at both 31 March 2017 and 31 March 2016 by £484,757.
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Commitments under operating leases
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At 30 September 2018 the Group and the Company had future minimum lease payments under non-cancellable operating leases as follows:
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Later than 1 year and not later than 5 years
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Page 45
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WILLOUGHBY 1000 LIMITED (FORMERLY HYDROCK GROUP LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2018
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Related party transactions
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On 20 April 2011 the company established the EBT to acquire shares in the company which are held for future issue to current and future employees.The other reserve relates to shares held by the EBT for which it has not unconditionally transferred the rights of ownership to any third party. During the period the EBT acquired a total of 505 Ordinary B shares from former employees for a total consideration of £100,000. The EBT also agreed a discount to a deferred consideration for shares acquired in the prior year and accordingly reduced the cost of the shares held by the EBT by £600,000. On 22 September 2017 all 4,413 Ordinary shares held by the EBT were redesignated as Ordinary B shares. QDS entered administration on 12 March 2018. At this time the EBT held 4,918 Ordinary shares (2017 - 4,413) of £1 each in the company at a cost of £2,168,744 (2017 - 2,668,744). Following on from this the directors recognised an impairment in the carrying value of the shares held by the EBT to reduce this to their nominal value. On 19 April 2018, the EBT unconditionally transferred the remaining shares it held in the company to various employees for nominal value which was deemed to be market value.
A total of £
22,775
of dividends declared to
directors
in prior years were waived and cancelled during the period (2017 - £148,964).
During the period the company sold the freehold property at its market value of £
300,000
to
Dr B McConnell, and Mrs J McConnell
. Dr B McConnell is a director of the company and a Mrs J McConnell is the wife of Dr B McConnell.
The Group paid rent totalling £
196,606
in rent to
Dr B McConnell and entities controlled by the director
.
Rent of £
117,000
was also paid to the
SSAD pension scheme which D B McConnell is a trustee and beneficiary
.
At the period end, the company was owed £nil by (2017 - £167,088 owed to) director, Dr B McConnell. The company was owed £nil by (2017 - £16,910 owed to) director, Dr M Hilton.
During the period the company incurred plant hire costs under parent company guarantees for work undertaken on behalf of its former subsidiary, QDS, totalling £800,000 (2017 - £nil), from HRCP Limited. At 30 September 2018 the company owed £
800,000
(2017 - £nil) in relation to this which is included within trade creditors.
HRCP Limited has common directors and is 89% owned by the Company.
During the period a total of key management personnel compensation of £
1,246,664
(2017 - £484,589) was paid.
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The company was ultimately controlled by Dr B McConnell at the start of the period. On 15 August 2018 the company was acquired by Hydrock Holdings Limited. From this date, the directors do not consider there to be any one individual controlling party.
Page 46
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