Company Registration No. 01049582 (England and Wales)
CLIFFORDS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
PAGES FOR FILING WITH REGISTRAR
CLIFFORDS LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
CLIFFORDS LIMITED
BALANCE SHEET
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
951,120
934,616
Investment properties
5
80,000
80,000
Investments
6
8,828
8,828
1,039,948
1,023,444
Current assets
Debtors falling due after more than one year
7
943,399
Debtors falling due within one year
7
3,719,631
3,736,193
Cash at bank and in hand
11,417
53,827
3,731,048
4,733,419
Creditors: amounts falling due within one year
8
(318,800)
(1,188,654)
Net current assets
3,412,248
3,544,765
Total assets less current liabilities
4,452,196
4,568,209
Creditors: amounts falling due after more than one year
9
(40,225)
(72,134)
Provisions for liabilities
(41,000)
Net assets
4,411,971
4,455,075
Capital and reserves
Called up share capital
10,640
10,640
Share premium account
320,544
320,544
Profit and loss reserves
4,080,787
4,123,891
Total equity
4,411,971
4,455,075
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 2023 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.
CLIFFORDS LIMITED
BALANCE SHEET (CONTINUED)
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 17 October 2023 and are signed on its behalf by:
SW Orrin
Director
Company Registration No. 01049582
CLIFFORDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 3 -
1
Accounting policies
Company information
Cliffords Limited is a private company limited by shares incorporated in England and Wales. The registered office is 3 Pratts Farm Cottages, Pratts Farm Lane, Little Waltham, Chelmsford, Essex, CM3 3PR.
1.1
Accounting convention
These financial statements have been prepared in accordance with 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 disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold and investment property at fair value. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
1.2
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.
Freehold land and buildings comprises operational assets. All properties are included at their estimated fair value, which is deemed to be its open market value at the period end. The open market values have been estimated by their Directors based on a mixture of professional valuations prepared in previous years and an assessment of the property market during the period.
Other tangible assets are stated at cost or valuation less depreciation. Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected useful life, as follows:
Freehold land and buildings
Nil on freehold land and buildings
Plant and machinery
6% - 33% on cost
Motor vehicles
25% - 33% on cost
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 the profit and loss.
1.3
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. All properties are included at their estimated fair value which is deemed to be its open market value at the period end.
Investment property is held at fair value in accordance with FRS102 Section 1A. The investment property was last professionally valued by independent Chartered Surveyors in 2016, The directors have considered the carrying value of this property as at 30 June 2023 and have concluded that although value will have increased since their last external valuation date, they do not believe the cost of a full valuation is justifiable at the current time, and any movement in the valuation would not be materially different.
Changes in fair value are recognised in profit or loss. Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.
CLIFFORDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 4 -
1.4
Fixed asset investments
Interests in subsidiaries 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 the profit and loss account.
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.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
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.
CLIFFORDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 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.
1.7
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 taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.
1.8
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.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
CLIFFORDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 6 -
1.10
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
1.11
Management fees receivable
Key management staff and directors of the former Cliffords Limited Group, now split their time between a number of the demerged companies, which all remain under common control.
The related employment costs are initially borne by this company, then re-charged to each of the relevant companies, on an estimated time spent basis, by way of a Management Charge. These financial statements include the total amount receivable from the demerged companies in respect of these recharges which are treated as other income in the profit and loss account.
1.12
Exceptional income relates to income that derives from events or transactions that fall within the normal activities of the company but which, individually, or if of a similar type, in aggregate, are excluded by virtue of their size and nature in order to reflect the directors view of the performance of the company.
In the previous financial year, exceptional income relates to amounts received following a claim for financial loss against, former bankers.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Valuation of investment property
Investment property is held at fair value in accordance with FRS102 Section 1A. The investment property was last professionally valued by independent Chartered Surveyors in 2016, The directors have considered the carrying value of this property as at 30 June 2023 and have concluded that although value will have increased since their last external valuation date, they do not believe the cost of a full valuation is justifiable at the current time, and any movement in the valuation would not be materially different.
CLIFFORDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 7 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
8
10
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost or valuation
At 1 July 2022
804,908
168,469
973,377
Additions
66,090
66,090
At 30 June 2023
804,908
234,559
1,039,467
Depreciation and impairment
At 1 July 2022
38,761
38,761
Depreciation charged in the year
49,586
49,586
At 30 June 2023
88,347
88,347
Carrying amount
At 30 June 2023
804,908
146,212
951,120
At 30 June 2022
804,908
129,708
934,616
The company's freehold land and buildings were professionally valued on a fair value basis, also deemed to be open market value by Christie & Co, a member of the Royal Institute of Chartered Surveyors (RICS) on 19 September 2016. The directors have considered the carrying value of the freehold land and buildings at the balance sheet date and do not believe it to be materially difference from this valuation.
5
Investment property
2023
£
Fair value
At 1 July 2022 and 30 June 2023
80,000
The directors have considered the carrying value of the investment property as at 30 June 2023 and have concluded that although this will have increased since their valuation date, they do not believe the cost of a full valuation is justifiable at the current time, and any movement in the valuation would not be materially different.
CLIFFORDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 8 -
6
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
8,828
8,828
7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,208,132
Amounts owed by group undertakings
566,227
60,059
Other debtors
1,937,272
3,676,134
3,711,631
3,736,193
Deferred tax asset
8,000
3,719,631
3,736,193
2023
2022
Amounts falling due after more than one year:
£
£
Trade debtors
943,399
Total debtors
3,719,631
4,679,592
8
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
31,454
66,512
Corporation tax
118,501
Other taxation and social security
116,999
133,884
Other creditors
51,846
988,258
318,800
1,188,654
9
Creditors: amounts falling due after more than one year
2023
2022
£
£
Obligations under finance leases
40,225
72,134