REGISTERED NUMBER: 04780007 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021 |
FOR |
CASTLEGATE 263 LIMITED |
REGISTERED NUMBER: 04780007 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021 |
FOR |
CASTLEGATE 263 LIMITED |
CASTLEGATE 263 LIMITED (REGISTERED NUMBER: 04780007) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
for the Year Ended 31 October 2021 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 4 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
CASTLEGATE 263 LIMITED |
COMPANY INFORMATION |
for the Year Ended 31 October 2021 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Statutory Auditors |
42-44 Nottingham Road |
Mansfield |
Nottinghamshire |
NG18 1BL |
CASTLEGATE 263 LIMITED (REGISTERED NUMBER: 04780007) |
GROUP STRATEGIC REPORT |
for the Year Ended 31 October 2021 |
The director presents his strategic report of the company and the group for the year ended 31 October 2021. |
The group is principally engaged in the manufacture, sale and distribution of windows, and standard, French, patio, bi-fold, composite and FD30S fire doors. |
REVIEW OF BUSINESS |
The results for the year and financial position of the group are shown in the annexed financial statements. |
The group returned to profitability in the year to 31 October 2021, growing revenues despite the covid 19 pandemic. |
Revenue reported for the year of £18.2m increased in comparison to 2020 (£12.2m). Profits have resulted due to a |
variety of measures including increase in margin. Pre-tax profits for the year are £1,405,725 (2020: profit £288,836). Gross margin has increased from 25% in 2020 to 30% in 2021. |
The group retains a strong balance sheet and is continuing to trade successfully in the current year. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The director considers the principal risks and uncertainties faced by the group to be as follows: |
Global raw material supplies shortages jeopardising fulfilment of sales orders; |
Because of the supply chain threats, supplier surcharges threaten profit margins; |
Re-occurrence of the pandemic. |
ECONOMIC RISK |
The group continues to seek out new product, and improved product to ensure the volume of trade is maintained, and continues to employ high standard staff to continue to supply high quality products to give customer satisfaction, itself protecting the group against economic risk as far as it is able to do. |
COMPETITION AND SUPPLY RISK |
The group has faced reduced competition in their market which has added to turnover and profitability, with fewer |
operating in our sector. The risk of price competition has been greatly ameliorated, and there is a continuing trend |
towards increased profitability. The group considers that there is no significant risk to supply chains in this sector |
because of global changes, or Brexit |
FINANCIAL RISK |
The group has budgetary and financial reporting procedures, supported by appropriate key performance indicators to manage credit, liquidity and other financial risk. |
The group uses various financial instruments, which include sales invoice financing, hire purchase contracts, and cash to finance its activities. The main purpose of these financial instruments is to raise finance for the group's operations. No transactions of a speculative nature are undertaken. The main risks arising from the group's financial instruments are credit risk and liquidity risk. The directors review and agree policies for managing each of these risks and they are summarised below. |
LIQUIDITY RISK |
The group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. |
CREDIT RISK |
The group's principal financial assets are cash and trade debtors. The credit risk associated with the cash is limited as the counterparties have high credit ratings assigned by international credit-rating agencies. The principal credit risk arises therefore from trade debtors. In order to manage credit risk the director sets limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed by the commercial manager, credit controller and the director on a regular basis in conjunction with debt ageing and collection. |
CASTLEGATE 263 LIMITED (REGISTERED NUMBER: 04780007) |
GROUP STRATEGIC REPORT |
for the Year Ended 31 October 2021 |
The group monitors its performance by reviewing profit before taxation. The group continues to emerge strengthened from recent challenging periods. |
ON BEHALF OF THE BOARD: |
CASTLEGATE 263 LIMITED (REGISTERED NUMBER: 04780007) |
REPORT OF THE DIRECTOR |
for the Year Ended 31 October 2021 |
The director presents his report with the financial statements of the company and the group for the year ended 31 October 2021. |
DIVIDENDS |
A dividend of £220,000 was voted during the year. |
DIRECTOR |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is 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 director is required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is 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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Beeley Hawley & Co. Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CASTLEGATE 263 LIMITED |
Opinion |
We have audited the financial statements of Castlegate 263 Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2021 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, 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). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 October 2021 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent 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. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements 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 financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements 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 determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CASTLEGATE 263 LIMITED |
Matters on which we are required to report by exception |
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, we have not identified material misstatements in the Group Strategic Report or the Report of the Director. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the director is 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 director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Based on our understanding of the company and industry, we identify the key laws and regulations affecting the company, we identified the principal risk of fraud or non-compliance with laws and regulations related to:- |
- management bias in respect of accounting estimates and judgements made; |
- management override of control; |
- posting of unusual journals or transactions |
We focused on those areas that could give rise to a material misstatement in the company financial statements. Our procedures included, but were not limited to: |
- Enquiry of management and those charged with governance around actual and potential litigation and claims, |
including non-compliance with laws and regulations and fraud; |
- Reviewing minutes of meetings of those charged with governance where available; |
- Reviewing legal expenditure in the year to identify instances of non-compliance with laws and regulations and |
fraud; |
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with |
applicable laws and regulations; |
- Performing audit wok over the risk of management override of controls, including where appropriate testing of |
journal entries, reviewing individual account balances over the year and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing |
accounting estimates for bias. |
It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CASTLEGATE 263 LIMITED |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulations.This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we are less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Accountants |
Statutory Auditors |
42-44 Nottingham Road |
Mansfield |
Nottinghamshire |
NG18 1BL |
CASTLEGATE 263 LIMITED (REGISTERED NUMBER: 04780007) |
CONSOLIDATED |
INCOME STATEMENT |
for the Year Ended 31 October 2021 |
2021 | 2020 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 | 18,162,555 | 12,218,301 |
Cost of sales | 12,645,660 | 9,128,700 |
GROSS PROFIT | 5,516,895 | 3,089,601 |
Distribution costs | 1,247,031 | 848,585 |
Administrative expenses | 2,916,337 | 2,462,362 |
4,163,368 | 3,310,947 |
1,353,527 | (221,346 | ) |
Other operating income | 110,910 | 534,943 |
OPERATING PROFIT | 6 | 1,464,437 | 313,597 |
Interest payable and similar expenses | 7 | 58,712 | 24,734 |
PROFIT BEFORE TAXATION | 1,405,725 | 288,863 |
Tax on profit | 8 | 293,300 | 58,657 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,112,425 | 230,206 |
CASTLEGATE 263 LIMITED (REGISTERED NUMBER: 04780007) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
for the Year Ended 31 October 2021 |
2021 | 2020 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,112,425 | 230,206 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,112,425 |
230,206 |
Total comprehensive income attributable to: |
Owners of the parent | 1,112,425 | 230,206 |
CASTLEGATE 263 LIMITED (REGISTERED NUMBER: 04780007) |
CONSOLIDATED BALANCE SHEET |
31 October 2021 |
2021 | 2020 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 | 838,007 | 937,726 |
Investments | 12 | - | - |
838,007 | 937,726 |
CURRENT ASSETS |
Stocks | 13 | 912,986 | 601,420 |
Debtors | 14 | 1,187,888 | 1,078,941 |
Cash at bank and in hand | 1,874,811 | 820,161 |
3,975,685 | 2,500,522 |
CREDITORS |
Amounts falling due within one year | 15 | 3,207,210 | 2,642,178 |
NET CURRENT ASSETS/(LIABILITIES) | 768,475 | (141,656 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
1,606,482 |
796,070 |
CREDITORS |
Amounts falling due after more than one year |
16 |
(77,913 |
) |
(184,206 |
) |
PROVISIONS FOR LIABILITIES | 20 | (136,957 | ) | (112,677 | ) |
NET ASSETS | 1,391,612 | 499,187 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 11,000 | 11,000 |
Retained earnings | 22 | 1,380,612 | 488,187 |
SHAREHOLDERS' FUNDS | 1,391,612 | 499,187 |
The financial statements were approved by the director and authorised for issue on 8 August 2022 and were signed by: |
D Thorpe - Director |
CASTLEGATE 263 LIMITED (REGISTERED NUMBER: 04780007) |
COMPANY BALANCE SHEET |
31 October 2021 |
2021 | 2020 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 |
Investments | 12 |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 190,394 | 28,300 |
The financial statements were approved by the director and authorised for issue on |
CASTLEGATE 263 LIMITED (REGISTERED NUMBER: 04780007) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 31 October 2021 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 November 2019 | 11,000 | 257,981 | 268,981 |
Changes in equity |
Total comprehensive income | - | 230,206 | 230,206 |
Balance at 31 October 2020 | 11,000 | 488,187 | 499,187 |
Changes in equity |
Dividends | - | (220,000 | ) | (220,000 | ) |
Total comprehensive income | - | 1,112,425 | 1,112,425 |
Balance at 31 October 2021 | 11,000 | 1,380,612 | 1,391,612 |
CASTLEGATE 263 LIMITED (REGISTERED NUMBER: 04780007) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 31 October 2021 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 November 2019 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 October 2020 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 October 2021 |
CASTLEGATE 263 LIMITED (REGISTERED NUMBER: 04780007) |
CONSOLIDATED CASH FLOW STATEMENT |
for the Year Ended 31 October 2021 |
2021 | 2020 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,485,717 | 718,971 |
Interest paid | (41,046 | ) | (6,000 | ) |
Interest element of hire purchase payments paid |
(17,666 |
) |
(18,734 |
) |
Tax paid | (5,694 | ) | - |
Net cash from operating activities | 1,421,311 | 694,237 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (213,949 | ) | (152,258 | ) |
Sale of tangible fixed assets | 39,999 | 2,208 |
Net cash from investing activities | (173,950 | ) | (150,050 | ) |
Cash flows from financing activities |
New loans in year | 50,000 | - |
Loan repayments in year | (6,500 | ) | (28,300 | ) |
Other loans | 4,529 | - |
Capital repayments in year | (133,111 | ) | (105,803 | ) |
Amount introduced by directors | 112,371 | - |
Amount withdrawn by directors | - | (2,371 | ) |
Equity dividends paid | (220,000 | ) | - |
Net cash from financing activities | (192,711 | ) | (136,474 | ) |
Increase in cash and cash equivalents | 1,054,650 | 407,713 |
Cash and cash equivalents at beginning of year |
2 |
820,161 |
412,448 |
Cash and cash equivalents at end of year | 2 | 1,874,811 | 820,161 |
CASTLEGATE 263 LIMITED (REGISTERED NUMBER: 04780007) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the Year Ended 31 October 2021 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2021 | 2020 |
£ | £ |
Profit before taxation | 1,405,725 | 288,863 |
Depreciation charges | 223,219 | 189,080 |
Loss on disposal of fixed assets | 50,450 | 5,827 |
Finance costs | 58,712 | 24,734 |
1,738,106 | 508,504 |
(Increase)/decrease in stocks | (311,566 | ) | 4,796 |
(Increase)/decrease in trade and other debtors | (106,789 | ) | 64,827 |
Increase in trade and other creditors | 165,966 | 140,844 |
Cash generated from operations | 1,485,717 | 718,971 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 October 2021 |
31.10.21 | 1.11.20 |
£ | £ |
Cash and cash equivalents | 1,874,811 | 820,161 |
Year ended 31 October 2020 |
31.10.20 | 1.11.19 |
£ | £ |
Cash and cash equivalents | 820,161 | 412,448 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.11.20 | Cash flow | At 31.10.21 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 820,161 | 1,054,650 | 1,874,811 |
820,161 | 1,054,650 | 1,874,811 |
Debt |
Finance leases | (317,313 | ) | 133,111 | (184,202 | ) |
Debts falling due within 1 year | (6,500 | ) | (43,500 | ) | (50,000 | ) |
(323,813 | ) | 89,611 | (234,202 | ) |
Total | 496,348 | 1,144,261 | 1,640,609 |
CASTLEGATE 263 LIMITED (REGISTERED NUMBER: 04780007) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
for the Year Ended 31 October 2021 |
1. | STATUTORY INFORMATION |
Castlegate 263 Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements are prepared in Sterling which is the functional currency of the group. |
Basis of consolidation |
The financial statements consolidate the accounts of Castlegate 263 Limited and its subsidiary undertaking ('subsidiary'). The basis of consolidation only includes those subsidiaries which are considered to be material to the group. As a result it has been considered to exclude those results of Pace Fitness Centre Limited. Please refer further to note 12 for further details. |
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the balance sheet, 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 profit and loss account from the date on which control is obtained. They are deconsolidated from the date control ceases. |
Significant judgements and estimates |
The group makes estimates and assumptions concerning the future. The director is also required to exercise judgement in the process of applying the group's accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
The estimates and assumptions that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. |
In preparing these financial statements, the director has made the following judgements: |
Impairment of non-current assets |
The group assesses the impairment of leasehold alterations, plant and machinery, motor vehicles and fixtures and fittings, subject to depreciation whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors considered important that could trigger an impairment review include the following: |
• significant underperformance relative to historical or projected future operating results; |
• significant changes in the manner of the use of the acquired assets or the strategy for the overall business; |
and |
• significant negative industry or economic trends. |
Carrying value of stocks |
The director reviews the market value of and demand for the group's stocks on a periodic basis to ensure |
stock is recorded in the financial statements at the lower of cost and net realisable value. Any provision for |
impairment is recorded against the carrying value of stocks. The director uses his knowledge of market |
conditions, historical experiences and estimates of future events to assess future demand for the group's |
products and achievable selling prices. |
CASTLEGATE 263 LIMITED (REGISTERED NUMBER: 04780007) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 October 2021 |
2. | ACCOUNTING POLICIES - continued |
Recoverability of trade debtors |
Trade debtors are recognised to the extent that they are judged recoverable. The director performs reviews to estimate the level of reserves required for irrecoverable debt. Provisions are made specifically against invoices where recoverability is uncertain. |
The director makes allowances for doubtful debts based on an assessment of recoverability of debtors. |
Allowances are applied to debtors where events or changes in circumstances indicate that the carrying amounts may not be recoverable. The director specifically analyses historical bad debts, customer creditworthiness, current economic trends and changes in customer payment terms when making a judgement to evaluate the adequacy of the provision for doubtful debts. Where the expectation is different from the original estimate, such difference will impact the carrying value of debtors and the charge in the profit and loss account. |
Turnover |
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the group and |
the turnover can be reliably measured. Turnover 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 turnover is recognised: |
Sale of goods |
Turnover from the sale of goods is recognised when all of the following conditions are satisfied: |
• The group has transferred the significant risks and rewards of ownership to the buyer; |
• The group retains neither continuing managerial involvement to the degree usually associated with |
ownership nor effective control over the goods sold; |
• The amount of turnover can be measured reliably; |
• It is probable that the group will receive the consideration due under the transaction; and |
• The costs incurred or to be incurred in respect of the transaction can be measured reliably. |
The whole of the turnover is attributable to the principal activity of the group. |
All turnover arose within the United Kingdom. |
Tangible fixed assets |
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 to for it to be capable of operating in the manner intended by the directors. |
Repairs and maintenance are charged to the profit and loss account during the period in which they are incurred. |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful |
life or, if held under a finance lease, over the lease term, whichever is the shorter. |
Depreciation is provided on the following basis: |
Improvements to property | - | 10% | Straight line |
Plant and machinery | - | 20% | Reducing balance |
Fixtures and fittings | - | 15% | Reducing balance |
Motor vehicles | - | 25% | 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 profit and loss account. |
CASTLEGATE 263 LIMITED (REGISTERED NUMBER: 04780007) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 October 2021 |
2. | ACCOUNTING POLICIES - continued |
At each balance sheet date, the director reviews the carrying amounts of its tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss. Where it is not possible to estimate the recoverable amount of the asset, the director estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
If the recoverable amount of an asset is estimated to be less than the carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately in the profit and loss account. |
Stocks |
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to |
complete and sell. Cost is based on the cost of purchase on an average cost basis. |
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is |
reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the profit and loss account. |
Financial instruments |
The group only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities such as trade and other debtors and creditors and loans from related parties. |
All financial assets and liabilities are initially measured at transaction price and subsequently measured at amortised cost. |
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, which is an approximation of the amount that the group would receive for the asset if it were to be sold at the balance sheet date. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
CASTLEGATE 263 LIMITED (REGISTERED NUMBER: 04780007) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 October 2021 |
2. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension plan for its employees. A defined contribution plan is a |
pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. |
The contributions are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds. |
Dividends |
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. |
3. | TURNOVER |
The whole of the turnover is attributable to the principal activity of the company. |
All turnover arose in the United Kingdom. |
4. | EMPLOYEES AND DIRECTORS |
2021 | 2020 |
£ | £ |
Wages and salaries | 3,600,238 | 3,031,437 |
Social security costs | 275,880 | 230,100 |
Other pension costs | 136,078 | 132,619 |
4,012,196 | 3,394,156 |
The average number of employees during the year was as follows: |
2021 | 2020 |
Production | 112 | 116 |
Administration | 27 | 24 |
5. | DIRECTORS' EMOLUMENTS |
2021 | 2020 |
£ | £ |
Director's remuneration | 206,172 | 130,247 |
CASTLEGATE 263 LIMITED (REGISTERED NUMBER: 04780007) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 October 2021 |
5. | DIRECTORS' EMOLUMENTS - continued |
Information regarding the highest paid director for the year ended 31 October 2021 is as follows: |
2021 |
£ |
Emoluments etc | 206,172 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2021 | 2020 |
£ | £ |
Other operating leases | 31,379 | 22,230 |
Depreciation - owned assets | 134,203 | 110,248 |
Depreciation - assets on hire purchase contracts | 89,016 | 78,832 |
Loss on disposal of fixed assets | 50,450 | 5,827 |
Auditors' remuneration | 16,810 | 15,750 |
Foreign exchange differences | (2,446 | ) | 1,888 |
Land and building operating lease rentals | 491,758 | 456,474 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2021 | 2020 |
£ | £ |
Other interest | 41,046 | 6,000 |
Interest expense on borrowings | 17,666 | 18,734 |
58,712 | 24,734 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2021 | 2020 |
£ | £ |
Current tax: |
UK corporation tax | 269,020 | - |
Deferred tax | 24,280 | 58,657 |
Tax on profit | 293,300 | 58,657 |
9. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
10. | DIVIDENDS |
2021 | 2020 |
£ | £ |
Ordinary shares of £1 each |
Final | 220,000 | - |
CASTLEGATE 263 LIMITED (REGISTERED NUMBER: 04780007) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 October 2021 |
11. | TANGIBLE FIXED ASSETS |
Group |
Improvements | Fixtures |
to | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 November 2020 | 602,465 | 2,922,210 | 444,686 | 181,392 | 4,150,753 |
Additions | - | 203,107 | 10,842 | - | 213,949 |
Disposals | - | (388,780 | ) | (369,925 | ) | - | (758,705 | ) |
At 31 October 2021 | 602,465 | 2,736,537 | 85,603 | 181,392 | 3,605,997 |
DEPRECIATION |
At 1 November 2020 | 526,293 | 2,279,258 | 301,302 | 106,174 | 3,213,027 |
Charge for year | 11,550 | 159,687 | 32,207 | 19,775 | 223,219 |
Eliminated on disposal | - | (373,664 | ) | (294,592 | ) | - | (668,256 | ) |
At 31 October 2021 | 537,843 | 2,065,281 | 38,917 | 125,949 | 2,767,990 |
NET BOOK VALUE |
At 31 October 2021 | 64,622 | 671,256 | 46,686 | 55,443 | 838,007 |
At 31 October 2020 | 76,172 | 642,952 | 143,384 | 75,218 | 937,726 |
The net value of assets held under finance leases or hire purchase contracts, included above, are as follows: |
2021 | 2020 |
£ | £ |
Plant and machinery | 239,763 | 309,004 |
Motor vehicles | 55,443 | 75,218 |
295,206 | 384,222 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 November 2020 |
and 31 October 2021 |
NET BOOK VALUE |
At 31 October 2021 |
At 31 October 2020 |
CASTLEGATE 263 LIMITED (REGISTERED NUMBER: 04780007) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 October 2021 |
12. | FIXED ASSET INVESTMENTS - continued |
Subsidiary undertakings |
The following were subsidiary undertakings of the company during the year: |
Name | Class of | Holding | Principal activity |
shares |
Future Products Limited | Ordinary | 100% | UPVC double glazing manufacturers |
Pace Fitness Centre Limited * | Ordinary | 100% | Provision of health and fitness facilities |
Both of the above companies share the same registered address as Castlegate 263 Limited. Details can be found on the company information page. |
*As explained in note 2, the subsidiary has been excluded from the consolidation as it is immaterial to the group's operations. |
Pace Fitness Centre Limited was dissolved on 17 November 2020. No results were presented for the year to 31 October 2020 |
13. | STOCKS |
Group |
2021 | 2020 |
£ | £ |
Raw materials | 907,986 | 596,420 |
Work-in-progress | 5,000 | 5,000 |
912,986 | 601,420 |
Stock recognised in cost of sales during the year as an expense was £10,067,421 (2020: £6,932,974). |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2021 | 2020 |
£ | £ |
Trade debtors | 986,582 | 821,830 |
Amounts owed by group undertakings | 4,529 | - |
Other debtors | 9,696 | 7,800 |
Directors' loan accounts | - | 2,371 |
Prepayments | 187,081 | 246,940 |
1,187,888 | 1,078,941 |
An impairment loss of £30,080 (2020: £nil) was recognised in administrative expenses against trade debtors |
during the year |
CASTLEGATE 263 LIMITED (REGISTERED NUMBER: 04780007) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 October 2021 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2021 | 2020 | 2021 | 2020 |
£ | £ | £ | £ |
Debentures (see note 17) | - | 6,500 |
Bank loans and overdrafts (see note 17) | 50,000 | - |
Hire purchase contracts (see note 18) | 106,289 | 133,107 |
Trade creditors | 1,555,312 | 1,542,847 |
Amounts owed to group undertakings | 4,529 | - |
Tax | 269,020 | 5,694 |
Social security and other taxes | 560,398 | 505,978 |
Other creditors | 50,617 | 50,425 |
Directors' loan accounts | 112,000 | 2,000 | 112,000 | 2,000 |
Accruals and deferred income | 499,045 | 395,627 |
3,207,210 | 2,642,178 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2021 | 2020 |
£ | £ |
Hire purchase contracts (see note 18) | 77,913 | 184,206 |
17. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2021 | 2020 | 2021 | 2020 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Debentures | - | 6,500 | - | 6,500 |
Bank loans | 50,000 | - |
50,000 | 6,500 |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2021 | 2020 |
£ | £ |
Net obligations repayable: |
Within one year | 106,289 | 133,107 |
Between one and five years | 77,913 | 184,206 |
184,202 | 317,313 |
CASTLEGATE 263 LIMITED (REGISTERED NUMBER: 04780007) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 October 2021 |
18. | LEASING AGREEMENTS - continued |
Group |
Non-cancellable operating | leases |
2021 | 2020 |
£ | £ |
Within one year | 63,538 | 97,008 |
Between one and five years | 134,994 | 198,532 |
In more than five years | - | 40,000 |
198,532 | 335,540 |
Obligations under hire purchase contracts are secured over the assets to which they relate. |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2021 | 2020 |
£ | £ |
Hire purchase contracts | 184,202 | 317,313 |
20. | PROVISIONS FOR LIABILITIES |
Group |
2021 | 2020 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 136,957 | 144,004 |
Tax losses carried forward | - | (31,327 | ) |
136,957 | 112,677 |
Group |
Deferred |
tax |
£ |
Balance at 1 November 2020 | 112,677 |
Provided during year | 24,280 |
Balance at 31 October 2021 | 136,957 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | £ | £ |
Ordinary | £1 | 11,000 | 11,000 |
CASTLEGATE 263 LIMITED (REGISTERED NUMBER: 04780007) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 October 2021 |
22. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 November 2020 | 488,187 |
Profit for the year | 1,112,425 |
Dividends | (220,000 | ) |
At 31 October 2021 | 1,380,612 |
23. | OTHER FINANCIAL COMMITMENTS |
Fixed and floating charges over group assets was provided to RBS Invoice Financing Ltd on 28 January 2011, Lombard North Central plc on 5 December 2003 and National Westminster Bank plc on 17 November 2003. |
24. | RELATED PARTY DISCLOSURES |
During the year the group paid rent of £360,000 (2020: £360,000) to a director. A balance of £36,000 (2020: |
£36,406) was due to the company in respect of this charge at the year end. |
Total sales of £270,976 (2020: £641,062) were made to a company in which a director had a significant interest at the year end. The balance outstanding at 31 October 2021 was £5,048 (2020: £151,605) and was included within debtors. |
Total purchases of £12,327 (2020: £11,586) were made from a company in which a director had a significant |
interest at the year end. |
The director considers there to be no key management personnel, other than himself, who has the authority and responsibility for planning, directing and controlling the activities of the group. |
25. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is D H Thorpe, who owns the entire issued share capital of Castlegate 263 Limited. |
26. | PENSION COMMITMENTS |
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. |
The pension cost charge represents contributions payable by the company to the fund and amounted to £136,078 (2020: £132,319). |
Contributions totalling £4,243 (2020: £4,490) were payable to the fund at the balance sheet date and are included in other creditors. |