Company registration number 11567444 (England and Wales)
CURVE CAPITAL HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
CURVE CAPITAL HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr R J Slingsby
Mr J G Sykes
Mr J M Heaphy
Ms C M Lee
Company number
11567444
Registered office
White Leys
Broadstone Lane
Ticknall
Derby
DE73 7LD
Auditor
HSKSG Audit
3rd Floor
Butt Dyke House
33 Park Row
Nottingham
NG1 6EE
CURVE CAPITAL HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Income statement
8
Group statement of comprehensive income
9
Group statement of financial position
10
Company statement of financial position
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 31
CURVE CAPITAL HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The directors present the strategic report for the year ended 31 March 2023.

Review of the business

The principal activity of the group is the provision of specialist residential support and care for adults with learning disabilities and complex needs. Care is provided to service users from within eight homes across four registered locations in South and West Yorkshire with a total current capacity of 64 beds.

 

The ethos of the business is based on the principle that the service users are the priority and that the provision of high-quality care and support is key in enabling them and supporting them to develop to lead as an independent and normal life as possible. This approach has proved successful with high occupancy rates, good CQC ratings and excellent relationships with commissioning bodies.

 

The ongoing strategy is to develop from this sound base with a controlled expansion plan, increasing capacity in carefully selected locations working closely with the local authorities in conjunction with exploring entry into supported living to offer certain service users their next stage of independence.

 

Covid 19 still has an impact on the business and the directors would like to acknowledge the efforts of all staff in ensuring that levels of care are maintained, and service users are kept as safe as possible during ongoing outbreaks. As a provider we ensure we comply with all current guidance issued by Gov.uk and local prevention guidance teams (IPC).

 

The group was established on 28 January 2019 when Ivy Cottage (Ackton) Limited was acquired by Curve Capital Holdings Limited. Debt finance was secured by the group to facilitate the acquisition. Servicing and repayment of the debt is dependent on the profit and cash flows generated by Ivy Cottage (Ackton) Limited.

 

Principal risks and uncertainties

Finance and Operational Risk

 

The delivery of high-quality care is dependent on the funding of appropriate care packages with local authorities and other government bodies that may be subject to additional financial constraint as a consequence of fiscal policies implemented by Central Government to manage the budget deficit.

 

Operationally, the Covid-19 pandemic presented a much-reduced risk. Inflationary pressures particularly in relation to wage rates and utility costs have impacted on the cost base of the company. Shortage of labour continues to present operational challenges which are being managed effectively.

 

Legislative and regulatory risk

 

The market is governed by quality standards and all of the group's services are monitored by the Care Quality Commission (CQC), specialist departments and local authorities. Failure to meet the necessary standards could put the business at significant risk. The group has systems in place to monitor standards in each of the care locations which include regular internal and external quality audits.

 

Labour and recruitment

 

Securing high quality staff is critical to the delivery of care and there have been significant challenges in increasing staff numbers due to competitive pressures in the employment market, Brexit factors and the legacy impact of the Covid-19 pandemic on the attractiveness of the sector for prospective employees. This has resulted in a higher than anticipated use of temporary agency staff. The group strives to be proactive and creative in its strategy to recruit and retain staff. We remunerate our staff members at rates higher than the national living wage, increasing hourly rates for weekend and night working. We have expanded our internal HR team to support staff to invest further in training and to increase recruitment.

 

CURVE CAPITAL HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
Development and performance

The results of the business are set out within these accounts.

 

Turnover has increased in the current year to £7,224,741 (2022: £6,768,330) due to a combination of fee uplifts to cover additional costs relating to the national minimum wage as well as the higher care needs of existing and new service users.

 

The group reviews profit performance of the business using the EBITDA measure (Earnings Before Interest, Tax, Depreciation and Amortisation). EBITDA for the current year was £2,026,604 (2022: £2,124,818).

 

The group has acquired a new site and has obtained planning permission to develop a six-bedroom residential facility in a new location. Extensive investment has been undertaken to create a high-quality facility and an application for CQC registration has been submitted. It is anticipated to be operational in the early part of next year with full occupancy achieved by mid-2024 increasing the total capacity of the organisation to 70 beds.

 

This is consistent with the strategy to offer smaller facilities embedded within the local community. Further suitable locations have already been identified and strategic conversations are occurring with relevant authorities to ensure demand.

 

Key performance indicators

The directors monitor the progress of the business by reference to key performance indicators which include occupancy, CQC ratings, turnover and EBITDA as referenced above.

 

Occupancy levels are measured on a monthly basis. The average occupancy during the year under review was 98.1% (2022: 98,2%).

 

Direct wage costs (including temporary staff costs) as a proportion of weekly fees and contributions to care is also taken as a key measure. This increased to 60.35% in the current year (2022: 58.14%) and such a significant proportion reflects the staff numbers needed to meet and maintain the quality of care required and to support the development of the business.

 

The group operates in a regulated environment and, as a consequence, the relevant CQC ratings represent a key performance indicator. All locations are rated overall "good”.

 

The group has clear action plans in place to maintain and enhance the quality of provision across all locations.

 

Cash balances total £1,915,592 at the year end (2022: £2,302,099). The group has comfortably met all loan and interest payments during the period under review and has used retained cash resources to purchase and develop the bungalow.

 

The directors monitor historic and projected cash flows very closely to ensure that necessary reserves are maintained and future cash generated to meet interest and loan repayments.

 

On behalf of the board

Mr R J Slingsby
Director
12 October 2023
CURVE CAPITAL HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2023.

Principal activities

The principal activity of the group in the year under review was that of the provision specialist residential support and care for adults with learning disabilities and complex needs.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £300,000. The directors do not recommend payment of a further dividend.

No preference dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr R J Slingsby
Mr J G Sykes
Mr J M Heaphy
Ms C M Lee
Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have 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 directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

CURVE CAPITAL HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr R J Slingsby
Director
12 October 2023
2023-10-12
CURVE CAPITAL HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CURVE CAPITAL HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of Curve Capital Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the group income statement, the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company 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 directors' 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 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 directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

CURVE CAPITAL HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CURVE CAPITAL HOLDINGS LIMITED
- 6 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are 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 directors determine is 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 directors are responsible for assessing 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 directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 an auditor's report 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.

We considered the nature of the group's business and its control environment. We also enquired of management about their identification and assessment of the risks of irregularities.

 

We obtained an understanding of the legal and regulatory framework in which the group operates and identified key laws and regulations that:

 

- Had a direct effect on the determination of material amounts and disclosures in the financial statements, which included the Companies Act 2006, tax legislation and payroll legislation; and

 

- Did not have a direct effect on the financial statements but compliance with which may be fundamental to the group's ability to operate.

 

We discussed among the audit engagement team the opportunities and incentives that may exist within the organisation for fraud and how / where fraud might occur in the financial statements.

CURVE CAPITAL HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CURVE CAPITAL HOLDINGS LIMITED
- 7 -

In common with all audits under ISA's (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of accounting adjustments and journal entries, assessed whether accounting estimates were reasonable and accurate and reviewed the accounting records for any significant and unusual transactions.

 

In addition, our procedures to respond to the risks identified included:

- Reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provision of relevant laws and regulations described as having a direct effect on the financial statements;

- Performing analytical procedures to identify any unusual or unexpected variances that may indicate risks of material misstatement due to fraud;

- Enquiring of management about any instances of non-compliance with laws and regulations and any instances of known or suspected fraud; and

- Reviewing the latest available Care Quality Commission inspection reports for all registered homes operated by the subsidiary.

 

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 regulation. 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 will be 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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 an auditor's report 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.

Philip Handley FCA (Senior Statutory Auditor)
For and on behalf of HSKSG Audit
12 October 2023
Chartered Accountants
Statutory Auditor
3rd Floor
Butt Dyke House
33 Park Row
Nottingham
NG1 6EE
CURVE CAPITAL HOLDINGS LIMITED
GROUP INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
7,224,741
6,768,330
Cost of sales
(154,756)
(148,153)
Gross profit
7,069,985
6,620,177
Administrative expenses
(5,583,515)
(5,102,551)
Other operating income
38,513
106,855
Operating profit
4
1,524,983
1,624,481
Interest receivable and similar income
8
7,238
486
Interest payable and similar expenses
9
(352,184)
(206,736)
Profit before taxation
1,180,037
1,418,231
Tax on profit
10
(315,187)
(393,833)
Profit for the financial year
26
864,850
1,024,398
Profit for the financial year is all attributable to the owners of the parent company.
CURVE CAPITAL HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
2023
2022
£
£
Profit for the year
864,850
1,024,398
Other comprehensive income
Fair value adjustment on loan notes
(19,899)
(30,389)
Total comprehensive income for the year
844,951
994,009
Total comprehensive income for the year is all attributable to the owners of the parent company.
CURVE CAPITAL HOLDINGS LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2023
31 March 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
2,549,665
2,976,614
Tangible assets
13
4,799,924
4,454,633
7,349,589
7,431,247
Current assets
Debtors
17
530,917
296,845
Cash at bank and in hand
1,915,592
2,302,094
2,446,509
2,598,939
Creditors: amounts falling due within one year
18
(1,535,283)
(1,664,945)
Net current assets
911,226
933,994
Total assets less current liabilities
8,260,815
8,365,241
Creditors: amounts falling due after more than one year
19
(4,578,196)
(5,234,949)
Provisions for liabilities
Deferred tax liability
21
132,883
125,507
(132,883)
(125,507)
Net assets
3,549,736
3,004,785
Capital and reserves
Called up share capital
23
320,000
320,000
Capital redemption reserve
24
25,000
25,000
Other reserves
9,146
29,045
Profit and loss reserves
26
3,195,590
2,630,740
Total equity
3,549,736
3,004,785

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 12 October 2023 and are signed on its behalf by:
12 October 2023
Mr R J Slingsby
Director
Company registration number 11567444 (England and Wales)
CURVE CAPITAL HOLDINGS LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2023
31 March 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
14
9,161,100
9,161,100
Current assets
Debtors
17
6,019
-
0
Cash at bank and in hand
1,257,665
2,215,410
1,263,684
2,215,410
Creditors: amounts falling due within one year
18
(5,420,548)
(5,800,123)
Net current liabilities
(4,156,864)
(3,584,713)
Total assets less current liabilities
5,004,236
5,576,387
Creditors: amounts falling due after more than one year
19
(4,578,196)
(5,234,949)
Net assets
426,040
341,438
Capital and reserves
Called up share capital
23
320,000
320,000
Capital redemption reserve
24
25,000
25,000
Other reserves
9,146
29,045
Profit and loss reserves
26
71,894
(32,607)
Total equity
426,040
341,438

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £404,501 (2022 - £68,670 profit).

These abbreviated accounts have been prepared in accordance with the special provisions in section 445(3) of the Companies Act 2006 relating to medium-sized companies.true

The financial statements were approved by the board of directors and authorised for issue on 12 October 2023 and are signed on its behalf by:
12 October 2023
Mr R J Slingsby
Director
Company registration number 11567444 (England and Wales)
CURVE CAPITAL HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
Share capital
Capital redemption reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2021
320,000
25,000
59,434
1,756,342
2,160,776
Year ended 31 March 2022:
Profit for the year
-
-
-
1,024,398
1,024,398
Other comprehensive income:
Fair value adjustment on loan notes
-
-
-
(30,389)
(30,389)
Total comprehensive income for the year
-
-
-
994,009
994,009
Dividends
11
-
-
-
(150,000)
(150,000)
Transfers
-
-
-
30,389
30,389
Fair value adjustment on loan notes
-
-
(30,389)
-
(30,389)
Balance at 31 March 2022
320,000
25,000
29,045
2,630,740
3,004,785
Year ended 31 March 2023:
Profit for the year
-
-
-
864,850
864,850
Other comprehensive income:
Fair value adjustment on loan notes
-
-
-
(19,899)
(19,899)
Total comprehensive income for the year
-
-
-
844,951
844,951
Dividends
11
-
-
-
(300,000)
(300,000)
Transfers
-
-
-
19,899
19,899
Fair value adjustment on loan notes
-
-
(19,899)
-
(19,899)
Balance at 31 March 2023
320,000
25,000
9,146
3,195,590
3,549,736
CURVE CAPITAL HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
Share capital
Capital redemption reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2021
320,000
25,000
59,434
48,723
453,157
Year ended 31 March 2022:
Profit for the year
-
-
-
68,670
68,670
Other comprehensive income:
Fair value adjustment on loan notes
-
-
-
(30,389)
(30,389)
Total comprehensive income for the year
-
-
-
38,281
38,281
Dividends
11
-
-
-
(150,000)
(150,000)
Transfers
-
-
-
30,389
30,389
Fair value adjustment on loan notes
-
-
(30,389)
-
(30,389)
Balance at 31 March 2022
320,000
25,000
29,045
(32,607)
341,438
Year ended 31 March 2023:
Profit for the year
-
-
-
404,501
404,501
Other comprehensive income:
Fair value adjustment on loan notes
-
-
-
(19,899)
(19,899)
Total comprehensive income for the year
-
-
-
384,602
384,602
Dividends
11
-
-
-
(300,000)
(300,000)
Transfers
-
-
-
19,899
19,899
Fair value adjustment on loan notes
-
-
(19,899)
-
(19,899)
Balance at 31 March 2023
320,000
25,000
9,146
71,894
426,040
CURVE CAPITAL HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
1,735,304
2,111,179
Interest paid
(247,179)
(147,108)
Income taxes paid
(336,902)
(325,463)
Net cash inflow from operating activities
1,151,223
1,638,608
Investing activities
Purchase of tangible fixed assets
(419,963)
(34,650)
Proceeds from disposal of tangible fixed assets
-
3,888
Interest received
7,238
486
Net cash used in investing activities
(412,725)
(30,276)
Financing activities
Repayment of borrowings
(450,000)
(450,000)
Proceeds from new bank loans
4,950,000
-
Repayment of bank loans
(5,325,000)
(450,000)
Dividends paid to equity shareholders
(300,000)
(150,000)
Net cash used in financing activities
(1,125,000)
(1,050,000)
Net (decrease)/increase in cash and cash equivalents
(386,502)
558,332
Cash and cash equivalents at beginning of year
2,302,094
1,743,762
Cash and cash equivalents at end of year
1,915,592
2,302,094
CURVE CAPITAL HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
32
(342,442)
1,798,141
Interest paid
(247,179)
(146,681)
Net cash (outflow)/inflow from operating activities
(589,621)
1,651,460
Investing activities
Interest received
6,876
23
Dividends received
750,000
275,000
Net cash generated from investing activities
756,876
275,023
Financing activities
Repayment of borrowings
(450,000)
(450,000)
Proceeds from new bank loans
4,950,000
-
Repayment of bank loans
(5,325,000)
(449,998)
Dividends paid to equity shareholders
(300,000)
(150,000)
Net cash used in financing activities
(1,125,000)
(1,049,998)
Net (decrease)/increase in cash and cash equivalents
(957,745)
876,485
Cash and cash equivalents at beginning of year
2,215,410
1,338,925
Cash and cash equivalents at end of year
1,257,665
2,215,410
CURVE CAPITAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 16 -
1
Accounting policies
Company information

Curve Capital Holdings Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

 

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.

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. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Curve Capital Holdings Limited together with a subsidiary, Ivy Cottage (Ackton) Ltd. The registered office for Ivy Cottage (Ackton) Ltd is Littleworth Lane, Lundwood, Barnsley, South Yorkshire, S71 5RG.

 

All financial statements are made up to 31 March 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

 

The acquisition method of accounting is used to account for business combinations by the group, following the acquisition of the entire share capital of Ivy Cottage (Ackton) Ltd on 28 January 2019.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

The group recognises turnover when:

 

- The amount of revenue can be reliably measured;

- it is probable that future economic benefits will flow into the entity; and

- specific criteria have been met for each of the group's activities.

 

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

CURVE CAPITAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -
1.6
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:

Freehold land and buildings
1% on cost
Fixtures and fittings
25% on cost
Motor vehicles
25% 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 recognised in the income statement.

1.7
Fixed asset investments

In the parent company financial statements, investments in subsidiaries, are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

CURVE CAPITAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 18 -
1.9
Financial instruments

The group 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 group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 group after deducting all of its liabilities.

CURVE CAPITAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 19 -
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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the group 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 group.

1.11
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 income statement 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

CURVE CAPITAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 20 -
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 income statement, 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 if, and only if, there is 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.

1.12
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.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
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 leased asset are consumed.

1.15
Government grants

Income from government grants, whether 'capital' grants or 'revenue' grants are recognised when the company has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

CURVE CAPITAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Provision of services
7,224,741
6,768,330
2023
2022
£
£
Other revenue
Interest income
7,238
486
Grants received
38,513
106,778

Government grants relate to infection control grants and other grants following the COVID-19 pandemic.

4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
(38,513)
(106,778)
Depreciation of owned tangible fixed assets
74,672
74,502
Profit on disposal of tangible fixed assets
-
(1,149)
Amortisation of intangible assets
426,949
426,949
Operating lease charges
2,208
2,457
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
-
-
Audit of the financial statements of the company's subsidiaries
6,462
7,090
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
190
197
4
4
CURVE CAPITAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
6
Employees
(Continued)
- 22 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
3,287,471
3,357,218
-
0
-
0
Social security costs
264,353
300,475
-
-
Pension costs
60,005
62,615
-
0
-
0
3,611,829
3,720,308
-
0
-
0
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
245,464
247,538
Company pension contributions to defined contribution schemes
5,973
5,916
251,437
253,454
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
137,839
133,824
Company pension contributions to defined contribution schemes
2,201
2,201

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2022 - 3).

8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
6,876
23
Other interest income
362
463
Total income
7,238
486
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
6,876
23
CURVE CAPITAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
238,856
146,679
Other interest on financial liabilities
113,328
59,628
352,184
206,307
Other finance costs:
Other interest
-
429
Total finance costs
352,184
206,736
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
307,811
350,291
Adjustments in respect of prior periods
-
0
8,155
Total current tax
307,811
358,446
Deferred tax
Origination and reversal of timing differences
7,376
35,387
Total tax charge
315,187
393,833

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
1,180,037
1,418,231
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
224,207
269,464
Tax effect of expenses that are not deductible in determining taxable profit
(189)
1,361
Adjustments in respect of prior years
-
0
8,155
Effect of change in corporation tax rate
-
28,458
Permanent capital allowances in excess of depreciation
10,049
(218)
Amortisation on assets not qualifying for tax allowances
81,120
81,120
Timing differences
-
0
5,493
Taxation charge
315,187
393,833
CURVE CAPITAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 24 -
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
300,000
150,000
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 April 2022 and 31 March 2023
4,269,491
Amortisation and impairment
At 1 April 2022
1,292,877
Amortisation charged for the year
426,949
At 31 March 2023
1,719,826
Carrying amount
At 31 March 2023
2,549,665
At 31 March 2022
2,976,614
The company had no intangible fixed assets at 31 March 2023 or 31 March 2022.
13
Tangible fixed assets
Group
Freehold land and buildings
Assets under construction
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2022
4,754,283
-
0
438,000
52,309
5,244,592
Additions
369,268
34,070
16,625
-
0
419,963
At 31 March 2023
5,123,551
34,070
454,625
52,309
5,664,555
Depreciation and impairment
At 1 April 2022
364,335
-
0
396,867
28,757
789,959
Depreciation charged in the year
50,309
-
0
16,362
8,001
74,672
At 31 March 2023
414,644
-
0
413,229
36,758
864,631
Carrying amount
At 31 March 2023
4,708,907
34,070
41,396
15,551
4,799,924
At 31 March 2022
4,389,948
-
0
41,133
23,552
4,454,633
The company had no tangible fixed assets at 31 March 2023 or 31 March 2022.
CURVE CAPITAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
13
Tangible fixed assets
(Continued)
- 25 -

Included within the net book value of freehold land and buildings above is £175,092 (2022: £176,992 ) in respect of land.

 

Freehold land and buildings with a carrying amount of £4,708,907 (2022 - £4,389,948 ) have been pledged to secure borrowings of the company.

14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
9,161,100
9,161,100
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2022 and 31 March 2023
9,161,100
Carrying amount
At 31 March 2023
9,161,100
At 31 March 2022
9,161,100
15
Subsidiaries

Details of the company's subsidiaries at 31 March 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Ivy Cottage (Ackton) Ltd
Littleworth Lane, Lundwood, Barnsley, South Yorkshire, S71 5RG
Ordinary
100.00
16
Financial instruments
Group
Company
2023
2022
2023
2022
£
£
£
£
Carrying amount of financial liabilities
Measured at amortised cost
5,317,264
5,998,353
5,008,604
7,843,119
CURVE CAPITAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 26 -
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
473,899
241,755
-
0
-
0
Other debtors
-
0
256
-
0
-
0
Prepayments and accrued income
57,018
54,834
6,019
-
0
530,917
296,845
6,019
-
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
20
325,786
390,372
325,786
390,372
Other borrowings
20
440,854
419,611
440,854
419,611
Trade creditors
164,936
142,155
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
4,653,908
4,990,140
Corporation tax payable
118,798
147,889
-
0
-
0
Other taxation and social security
66,732
96,388
-
-
Other creditors
57,106
124,990
-
0
-
0
Accruals and deferred income
361,071
343,540
-
0
-
0
1,535,283
1,664,945
5,420,548
5,800,123
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
4,578,196
4,783,605
4,578,196
4,783,605
Other borrowings
20
-
0
451,344
-
0
451,344
4,578,196
5,234,949
4,578,196
5,234,949

The bank loan is repaid in monthly instalments of £37,500 and is due to be repaid in full by February 2028. The rate of interest applied to the loan is the aggregate of the base rate and a margin of 2.1%.

 

Other loans comprise loan notes that were issued on 28 January 2019. The company is due to repay the loan notes in four equal instalments commencing on the second anniversary of issue. No interest is accrued on the principal balance of £1,800,000 unless the company fails to make the schedules repayments. In this case, interest would be accrued at a rate of 3% above the Bank of England base rate from the date of the missed payment.

CURVE CAPITAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 27 -
20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
4,903,982
5,173,977
4,903,982
5,173,977
Other loans
440,854
870,955
440,854
870,955
5,344,836
6,044,932
5,344,836
6,044,932
Payable within one year
766,640
809,983
766,640
809,983
Payable after one year
4,578,196
5,234,949
4,578,196
5,234,949

HSBC Bank Plc (senior lender) holds a mortgage, fixed charge and floating charge over the assets of the company dated 28 January 2019. They also have security over cash deposits of £880 held in the deposit account.

 

John Frederick Taylor (junior lender) also holds a fixed and floating charge (subordinated to the senior

liabilities) over the assets of the company dated 28 January 2019.

21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
132,883
125,507
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 April 2022
125,507
-
Charge to profit or loss
7,376
-
Liability at 31 March 2023
132,883
-
CURVE CAPITAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 28 -
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
60,005
62,615

A defined contribution pension scheme is operated for all qualifying employees.

Contributions totalling £28,302 (2022: £33,132 ) were payable to the scheme at the end of the year and are included in creditors.

23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
200,000
200,000
200,000
200,000
Ordinary B shares of £1 each
25,000
25,000
25,000
25,000
225,000
225,000
225,000
225,000
2023
2022
2023
2022
Preference share capital
Number
Number
£
£
Issued and fully paid
Preference shares of £1 each
95,000
95,000
95,000
95,000
Preference shares classified as equity
95,000
95,000
Total equity share capital
320,000
320,000

The ordinary A and ordinary B shares carrying full voting rights whilst there are no voting rights attached to the preference shares.

 

Any profits resolved to be distributed as dividends will be distributed equally to holders of ordinary A and ordinary B shares as though they constituted a single class of share. No dividends may be declared or paid in respect of the preference shares.

 

In the event of a share sale the proceeds shall be distributed to the sellers of preference shares first equivalent to the issue price on each share plus £8 per share plus 5% per annum of the issue price. Any remaining proceeds will be distributed to ordinary A and ordinary B shares as if they were the same class.

 

In the event of a liquidation all shareholders will receive £9 per share as though they were the same class of share with any remaining balance being distributed to holders of ordinary A and ordinary B shares as if they were the same class.

 

In the event of a business sale any surplus assets will be distributed in the same manner as set out above in respect of a liquidation.

CURVE CAPITAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 29 -
24
Capital redemption reserve
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning and end of the year
25,000
25,000
25,000
25,000
25
2023
2022
Group and company
£
£
At the beginning of the year
29,045
59,434
Other movements
(19,899)
(30,389)
At the end of the year
9,146
29,045
26
Profit and loss reserves
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
2,630,740
1,756,342
(32,607)
48,723
Profit for the year
864,850
1,024,398
404,501
68,670
Dividends
(300,000)
(150,000)
(300,000)
(150,000)
Transfer to reserves
19,899
30,389
19,899
30,389
Fair value adjustment on loan notes
(19,899)
(30,389)
(19,899)
(30,389)
At the end of the year
3,195,590
2,630,740
71,894
(32,607)
27
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
2,163
1,622
-
-
Between two and five years
541
2,704
-
-
2,704
4,326
-
-
CURVE CAPITAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 30 -
28
Controlling party

The directors control the parent company by virtue of their controlling interest in the issued share

capital, although no one director has individual control of the company.

29
Analysis of changes in net debt - group
1 April 2022
Cash flows
Other non-cash changes
Market value movements
31 March 2023
£
£
£
£
£
Cash at bank and in hand
2,302,094
(386,502)
-
-
1,915,592
Borrowings excluding overdrafts
(6,044,932)
805,101
-
(105,005)
(5,344,836)
Fair value adjustment on loan notes
-
19,899
(19,899)
-
-
(3,742,838)
438,498
(19,899)
(105,005)
(3,429,244)
30
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
864,850
1,024,398
Adjustments for:
Taxation charged
315,187
393,833
Finance costs
352,184
206,736
Investment income
(7,238)
(486)
Gain on disposal of tangible fixed assets
-
(1,149)
Amortisation and impairment of intangible assets
426,949
426,949
Depreciation and impairment of tangible fixed assets
74,672
74,502
Movements in working capital:
Increase in debtors
(234,072)
(6,143)
Decrease in creditors
(57,228)
(7,461)
Cash generated from operations
1,735,304
2,111,179
31
Analysis of changes in net debt - company
1 April 2022
Cash flows
Other non-cash changes
Market value movements
31 March 2023
£
£
£
£
£
Cash at bank and in hand
2,215,410
(957,745)
-
-
1,257,665
Borrowings excluding overdrafts
(6,044,932)
805,101
-
(105,005)
(5,344,836)
Fair value adjustment on loan notes
-
19,899
(19,899)
-
-
(3,829,522)
(132,745)
(19,899)
(105,005)
(4,087,171)
CURVE CAPITAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 31 -
32
Cash (absorbed by)/generated from operations - company
2023
2022
£
£
Profit for the year after tax
404,501
68,670
Adjustments for:
Finance costs
352,184
206,307
Investment income
(756,876)
(275,023)
Movements in working capital:
Increase in debtors
(6,019)
-
(Decrease)/increase in creditors
(336,232)
1,798,187
Cash (absorbed by)/generated from operations
(342,442)
1,798,141
2023-03-312022-04-01falseCCH SoftwareCCH Accounts Production 2023.300Mr R J SlingsbyMr J G SykesMr J M HeaphyMs C M 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