Okay so here goes my attempt at analysis of Hinch’s latest annual accounts. Full disclaimer - I am not an accountant but have some familiarity with accounts from an old job I had. However, I used to look at large business accounts which have much more information than this so a lot of what I will say are informed assumptions rather than absolute facts. Also I’m pretty rusty so please correct me where I am wrong.
Firstly, Hinch is exempt from providing full audited accounts and to be fair, much bigger operations than hers won’t meet the criteria. This means we only have a short balance sheet which is a snapshot in time of her assets and liabilities. However, we can still make some conclusions from what we’ve been presented with here.
The first number that is interesting is the debtors figure of £588k which is a lot more than she had last year (£206k). Debtors are people who owe her money for the “work” she does for them. So she might do an ad, invoice it and they will have a certain amount of time to pay. This figure may have risen compared to last year for a number of reasons but the two mostly likely in my opinion are: 1. Increased revenue/turnover, so she naturally carries a higher figure as she is doing more “work” and/or 2. Tesco don’t pay her quickly. Supermarkets are notorious for not paying suppliers quickly and it could be that Hinch’s commission or whatever it is she gets from them is slow to come in.
The next interesting figure is cash at bank and in hand which is just a few grand short of a disgusting £3m. I think you can all figure out what that means but what is interesting is how it hasn’t increased much compared to last year £2.1m. Now don’t get me wrong, I absolutely believe £900k to be a
tit tonne of money for a woman who sits on her arse all day, but I thought it might be more.
However, as has been widely reported her profit for the year is £1.5m which you can calculate from the difference between the profit and loss reserves between 2021 and 2020. So why didn’t the £1.5m of profit turn into closer to £1.5m of cash? Well, her debtors not paying her quickly is one, but also she’s paid down some liabilities/debts to the tune of about £300k in the last year.
All in all a bit boring to be honest, and most notably there doesn’t *appear* to be a huge amount of cash taken out of the business which is what I was expecting to see as we await for the farmhouse reveal. However, don’t forget that these accounts were the state of play on 5 April 2021, so a lot could have changed since then.
Next year’s accounts will in theory be more interesting - what impact (if any) her “maternity leave” had and also how much cash she will need to take out to pay for Hinch Farm. So, hold on to your seats, you only need to wait another year for a more riveting update.
TL;DR: she made a stupid amount of money for doing
duck all.
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