Housing Hand Limited
Unaudited Financial Statements
For the year ended 30 June 2022
For Filing with Registrar
Company Registration No. 08408808 (England and Wales)
Housing Hand Limited
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 10
Housing Hand Limited
Balance Sheet
As at 30 June 2022
Page 1
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
4
70,135
251,767
Tangible assets
5
5,163
9,129
Investments
6
1
1
75,299
260,897
Current assets
Debtors
8
1,354,836
1,383,019
Cash at bank and in hand
32,550
60,061
1,387,386
1,443,080
Creditors: amounts falling due within one year
9
(1,350,645)
(991,558)
Net current assets
36,741
451,522
Total assets less current liabilities
112,040
712,419
Creditors: amounts falling due after more than one year
10
(423,840)
(180,167)
Net (liabilities)/assets
(311,800)
532,252
Capital and reserves
Called up share capital
12
191
191
Share premium account
211,287
211,287
Profit and loss reserves
(523,278)
320,774
Total equity
(311,800)
532,252
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 30 June 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
Housing Hand Limited
Balance Sheet (Continued)
As at 30 June 2022
Page 2
The financial statements were approved by the board of directors and authorised for issue on 30 June 2023 and are signed on its behalf by:
G Hayward
Director
Company Registration No. 08408808
Housing Hand Limited
Notes to the Financial Statements
For the year ended 30 June 2022
Page 3
1
Accounting policies
Company information
Housing Hand Limited is a private company limited by shares incorporated in England and Wales. The registered office is Centro House, 20-23 Mandela Street, Selous House G.01, London, United Kingdom, NW1 0DU.
1.1
Accounting convention
These financial statements have been prepared in accordance with Section 1A of 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 financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
The company suffered a net loss in the year of £true844,052 and at the balance sheet date had net liabilities of £311,800.
During the reporting period COVID-19 interrupted the continuity of guaranteed tenancies and despite the resultant financial and operating impact this was managed to allow for a continuous service to be provided throughout.
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents the invoiced value of goods and services provided.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Software
33% straight line
Housing Hand Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2022
1
Accounting policies
(Continued)
Page 4
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:
Computer equipment
33% straight line
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
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
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.
Housing Hand Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2022
1
Accounting policies
(Continued)
Page 5
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 payments 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. Amounts 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.
1.9
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.
1.10
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.
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.
Housing Hand Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2022
1
Accounting policies
(Continued)
Page 6
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
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 leases asset are consumed.
1.14
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Change in accounting policy
Revenue Recognition
The directors have currently taken a view driven by both the Tenant Fees Act (2019) and the announced, but yet to be enacted, Renters (Reform) Bill 2019-22 to realign contract start dates and revenues to a monthly basis.
Housing Hand Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2022
Page 7
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
28
30
4
Intangible fixed assets
Other
£
Cost
At 1 July 2021 and 30 June 2022
544,896
Amortisation and impairment
At 1 July 2021
293,129
Amortisation charged for the year
181,632
At 30 June 2022
474,761
Carrying amount
At 30 June 2022
70,135
At 30 June 2021
251,767
Housing Hand Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2022
Page 8
5
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 July 2021
31,648
Additions
2,055
At 30 June 2022
33,703
Depreciation and impairment
At 1 July 2021
22,519
Depreciation charged in the year
6,021
At 30 June 2022
28,540
Carrying amount
At 30 June 2022
5,163
At 30 June 2021
9,129
6
Fixed asset investments
2022
2021
£
£
Shares in group undertakings and participating interests
1
1
7
Subsidiaries
Details of the company's subsidiaries at 30 June 2022 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Only My Share Limited
UK
Ordinary
100.00
8
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
1,287,481
1,339,928
Amounts owed by group undertakings
2,330
Other debtors
67,355
40,761
1,354,836
1,383,019
Housing Hand Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2022
Page 9
9
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans and overdrafts
60,968
49,895
Trade creditors
98,386
154,654
Amounts owed to group undertakings
662
Corporation tax
32,586
Other taxation and social security
187,012
111,523
Other creditors
1,003,617
642,900
1,350,645
991,558
The bank loan is secured via a negative charge as well as a fixed and floating charge against all of the property or undertaking of the company.
10
Creditors: amounts falling due after more than one year
2022
2021
£
£
Bank loans and overdrafts
317,191
180,167
Other creditors
106,649
423,840
180,167
The bank loan is secured via a negative charge as well as a fixed and floating charge against all of the property or undertaking of the company.
11
Pension commitments
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions totaling £9,543 (2021 - £3,434) were payable to the fund at the balance sheet date and are included in creditors.
12
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
19,100
19,100
191
191
Post year end on 11 October 2022, 400 Growth Shares were allotted at a nominal value of £0.01.
Housing Hand Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2022
Page 10
13
Operating lease commitments
Lessee
At 30 June 2022 the company had future minimum lease payments due under non-cancellable operating lease for each of the following periods:
2022
2021
£
£
124,927
50,784
14
Related party transactions
At the end of the year, included in creditors is £662 due to (2021: £2,330 due from) Only My Share Limited. Only My Share Limited is subsidiary of Housing Hand Limited.