|
Registered number: 00917458
CASTLEBROOK HOLDINGS LIMITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 31 MARCH 2023
|
|
CASTLEBROOK HOLDINGS LIMITED
REGISTERED NUMBER: 00917458
BALANCE SHEET
AS AT 31 MARCH 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creditors: amounts falling due within one year
|
|
|
|
|
|
Net current assets/(liabilities)
|
|
|
|
|
|
Total assets less current liabilities
|
|
|
|
|
|
Creditors: amounts falling due after more than one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 1
|
|
CASTLEBROOK HOLDINGS LIMITED
REGISTERED NUMBER: 00917458
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2023
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 3 to 10 form part of these financial statements.
Page 2
|
|
CASTLEBROOK HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
The company is a private company limited by shares incorporated in England and Wales. The company registered number is 00917458. The company's registered office is Causeway House, 1 Dane Street, Bishops Stortford, Hertfordshire, CM23 3BT and its trading address is 64 Highgate High Street, London, N6 5HX. This company is part of a group.
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 Section 1A of 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 management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
|
|
|
EXEMPTION FROM PREPARING CONSOLIDATED FINANCIAL STATEMENTS
|
The Company, and the Group headed by it, qualify as small as set out in section 383 of the Companies Act 2006 and the parent and Group are considered eligible for the exemption to prepare consolidated accounts.
The Company has made a loss in the year due to a devaluation of investment properties. The company exists in a period of high inflation, rising interest rates and as such it is a challenging environment in which the company operates.
The Company has a strong net asset position both at and post 31 March 2023. The assets are predominantly fixed, with Investment properties and Listed Investments contributing to a high percentage of the Company’s assets. The directors have historically retained cash within the business with growth in mind through acquisition, however, and particularly during recent times, we have been disciplined in retaining cash in the business to give us the flexibility and adaptability to deal with any unknowns. This liquidity has been a strength, as is our ongoing strategy highlighted regularly to the Bank. This policy has helped the continued relationship with the Bank and will aid in any future refinancing discussions. Cash balances and proceeds from sales held at the year-end were £6,086,167. The financial statements have therefore been prepared on the going concern basis assuming that the bank will remain supportive and the financial statements do not include any amendments or disclosures that would be required if this was not the case.
The Directors continue to maintain a "hands on" approach to ensure maintenance of capital values and the rigorous collection of rent and, if any, arrears. We have reviewed forecasted cash flow for the twelve months from the date that the financial statements have been approved and have sufficient comfort that the Company can meet liabilities as they fall due.
Turnover represents rental income and service charges receivable during the year from investment properties.
Rental income and service charges from investment properties is accrued on a time apportioned basis under the term of the lease.
Page 3
|
|
CASTLEBROOK HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.ACCOUNTING POLICIES (CONTINUED)
|
|
|
OPERATING LEASES: THE COMPANY AS LESSOR
|
Rental income from operating leases is credited to profit or loss on a straight-line basis over the lease term.
Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight-line basis, unless another systematic basis is representative of the time pattern over which the lessor's benefit from the leased asset is diminished.
Interest income is recognised in the Statement of Income and Retained Earnings using the effective interest method.
Finance costs are charged to Statement of Income and Retained Earnings 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 Statement of Income and Retained Earnings in the year in which they are incurred.
|
|
|
CURRENT AND DEFERRED TAXATION
|
Tax is recognised in profit or loss 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 balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet 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; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
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 balance sheet date.
Investment property is carried at fair value determined annually and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Statement of Income and Retained Earnings.
Page 4
|
|
CASTLEBROOK HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.ACCOUNTING POLICIES (CONTINUED)
Investments in subsidiaries are measured at cost less accumulated impairment.
Investments in listed company shares are remeasured to market value at each Balance Sheet date. Gains and losses on remeasurement are recognised in the Statement of Income and Retained Earnings.
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.
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.
The Company 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 ordinary shares.
Included within the accounts is a significant accounting estimate in respect of the value of the Investment Properties. These properties have been externally valued by Knight Frank LLP.
The properties have been valued using common industry methods of valuation for commercial property. The process uses transactional evidence of similar investment properties that have been recently sold, or are being marketed for sale, and fully reflect the current attitude of property investors, for assets of this nature. Each asset has been individually valued to take account of its use, location, quality of occupier, lease length and passing rent.
The valuations provided are at arm's length and undertaken by a recognised commercial property valuer. Accordingly, the directors believe the assessments to be accurate and market facing. They have been calculated to fully reflect the investment market, as 31st March 2023, and the aggregate valuation of the properties included within the accounts is £26,655,000.
|
|
The average monthly number of employees, including directors, during the year was 4 (2022 - 3).
|
Page 5
|
|
CASTLEBROOK HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
|
|
Investments in subsidiary companies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following was a subsidiary undertaking of the Company:
|
|
|
|
|
|
|
|
|
Castlebrook Properties Limited
|
|
|
|
Page 6
|
|
CASTLEBROOK HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
|
|
Freehold investment property
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The 2023 valuations were made by Knight Frank, on an open market value for existing use basis.
The deficit (surplus) on revaluation of £2,010,000 (2022 - (£5,436,000)) has been included within the Statement of Income and Retained Earnings.
|
|
If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prepayments and accrued income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 7
|
|
CASTLEBROOK HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
|
|
CASH AND CASH EQUIVALENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CREDITORS: Amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed to group undertakings
|
|
|
|
|
|
|
|
|
|
Other taxation and social security
|
|
|
|
|
|
|
|
|
|
Accruals and deferred income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CREDITORS: Amounts falling due after more than one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The bank loans of £18,197,063 (2022 - £25,147,320) are secured by legal charges over the assets of the company and that of a subsidiary company.
At 31 March 2022 the bank loan was shown as due in under one year as the loan was due to be refinanced during year ended 31 March 2023.
In the current year the Directors agreed the refinance with National Westminister Bank PLC. Throughout the year the Company continued to make quarterly repayments in addition to a one-off repayment of £6,082,937. The bank loan is now split between under and over one year in line with the terms of the refinance.
|
Page 8
|
|
CASTLEBROOK HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
|
|
|
Allotted, called up and fully paid
|
|
|
|
|
|
|
|
|
|
|
|
174 (2022 - 174) Ordinary shares of £1 each
|
|
|
Share premium account
The share premium account represents the amount above the nominal value received for shares sold, less transaction costs.
Profit and loss account
The profit and loss account represents cumulative profit and losses, net of dividends and other adjustments.
Amounts included in the profit and loss account in respect of fair value movements on investment properties and listed investments are considered non distributable reserves.
|
|
RELATED PARTY TRANSACTIONS
|
|
|
Transactions with related parties during the year, were as follows:
During the year, a subsidiary company paid a management charge to Castlebrook Holdings Limited of
£nil (2022- £192,133). Expenditure was recharged from the subsidiary during the year totalling
£125,303 (2022 - £102,645). The amount due to the subsidiary company at the year end was £1,241,301
(2022 - £1,099,383).
During the year, the company operated a loan account with a company under common control.The amount owed to Castlebrook Holdings Limited at the year end was £79,239 (2022- £nil).
During the year the company repaid a loan to a director of £522,378 (2022 - £3,031) and the director
advanced £79,239 (2022 - £159,411). The balance due to a director as at 31 March 2023 was £nil
(2022- £443,910). This amount is included within other creditors due within one year. The loan was overdrawn during the year with the maximum overdrawn loan balance equal to £78,468. Interest of £771 has been charged on the loan at the HMRC approved rate of 2% and the balance is considered to be repayable on demand.
During the year, the company operated a loan account with a director. The amount owed by the company at the year end was £150,000 (2022- £nil).
|
|
|
POST BALANCE SHEET EVENTS
|
After the year end the Company has made two further loan repayments in addition to the agreed quarterly repayments. In June 2023 the Company repaid £2m and in August 2023 the Company repaid £3.5m.
Page 9
|
|
CASTLEBROOK HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
The auditors' report on the financial statements for the year ended 31 March 2023 was unqualified.
The audit report was signed on 27 September 2023 by Adam Norman (Senior Statutory Auditor) on behalf of Price Bailey LLP.
Page 10
|