Caseware UK (AP4) 2022.0.179 2022.0.179 2023-04-302023-04-30413605702415533064falsetrue2022-05-01false33 323928 2022-05-01 2023-04-30 323928 2021-05-01 2022-04-30 323928 2023-04-30 323928 2022-04-30 323928 2021-05-01 323928 1 2022-05-01 2023-04-30 323928 1 2021-05-01 2022-04-30 323928 2 2022-05-01 2023-04-30 323928 2 2021-05-01 2022-04-30 323928 3 2022-05-01 2023-04-30 323928 3 2021-05-01 2022-04-30 323928 4 2022-05-01 2023-04-30 323928 4 2021-05-01 2022-04-30 323928 9 2022-05-01 2023-04-30 323928 d:CompanySecretary1 2022-05-01 2023-04-30 323928 d:Director1 2022-05-01 2023-04-30 323928 d:Director2 2022-05-01 2023-04-30 323928 d:Director3 2022-05-01 2023-04-30 323928 d:Director4 2022-05-01 2023-04-30 323928 d:RegisteredOffice 2022-05-01 2023-04-30 323928 e:FurnitureFittings 2022-05-01 2023-04-30 323928 e:FurnitureFittings 2022-04-30 323928 e:FurnitureFittings e:OwnedOrFreeholdAssets 2022-05-01 2023-04-30 323928 e:FreeholdInvestmentProperty 2022-05-01 2023-04-30 323928 e:FreeholdInvestmentProperty 2023-04-30 323928 e:FreeholdInvestmentProperty 2022-04-30 323928 e:FreeholdInvestmentProperty 2 2022-05-01 2023-04-30 323928 e:LeaseholdInvestmentProperty 2022-05-01 2023-04-30 323928 e:LeaseholdInvestmentProperty 2023-04-30 323928 e:LeaseholdInvestmentProperty 2022-04-30 323928 e:LeaseholdInvestmentProperty 2 2022-05-01 2023-04-30 323928 e:CurrentFinancialInstruments 2023-04-30 323928 e:CurrentFinancialInstruments 2022-04-30 323928 e:CurrentFinancialInstruments e:WithinOneYear 2023-04-30 323928 e:CurrentFinancialInstruments e:WithinOneYear 2022-04-30 323928 e:UKTax 2022-05-01 2023-04-30 323928 e:UKTax 2021-05-01 2022-04-30 323928 e:ShareCapital 2022-05-01 2023-04-30 323928 e:ShareCapital 2023-04-30 323928 e:ShareCapital 2021-05-01 2022-04-30 323928 e:ShareCapital 2022-04-30 323928 e:ShareCapital 2021-05-01 323928 e:InvestmentPropertiesRevaluationReserve 2022-05-01 2023-04-30 323928 e:InvestmentPropertiesRevaluationReserve 2023-04-30 323928 e:InvestmentPropertiesRevaluationReserve 1 2022-05-01 2023-04-30 323928 e:InvestmentPropertiesRevaluationReserve 2 2022-05-01 2023-04-30 323928 e:InvestmentPropertiesRevaluationReserve 3 2022-05-01 2023-04-30 323928 e:InvestmentPropertiesRevaluationReserve 2021-05-01 2022-04-30 323928 e:InvestmentPropertiesRevaluationReserve 2022-04-30 323928 e:InvestmentPropertiesRevaluationReserve 2021-05-01 323928 e:InvestmentPropertiesRevaluationReserve 1 2021-05-01 2022-04-30 323928 e:InvestmentPropertiesRevaluationReserve 2 2021-05-01 2022-04-30 323928 e:InvestmentPropertiesRevaluationReserve 3 2021-05-01 2022-04-30 323928 e:RetainedEarningsAccumulatedLosses 2022-05-01 2023-04-30 323928 e:RetainedEarningsAccumulatedLosses 2023-04-30 323928 e:RetainedEarningsAccumulatedLosses 1 2022-05-01 2023-04-30 323928 e:RetainedEarningsAccumulatedLosses 2 2022-05-01 2023-04-30 323928 e:RetainedEarningsAccumulatedLosses 3 2022-05-01 2023-04-30 323928 e:RetainedEarningsAccumulatedLosses 2021-05-01 2022-04-30 323928 e:RetainedEarningsAccumulatedLosses 2022-04-30 323928 e:RetainedEarningsAccumulatedLosses 2021-05-01 323928 e:RetainedEarningsAccumulatedLosses 1 2021-05-01 2022-04-30 323928 e:RetainedEarningsAccumulatedLosses 2 2021-05-01 2022-04-30 323928 e:RetainedEarningsAccumulatedLosses 3 2021-05-01 2022-04-30 323928 d:FRS102 2022-05-01 2023-04-30 323928 d:Audited 2022-05-01 2023-04-30 323928 d:FullAccounts 2022-05-01 2023-04-30 323928 d:PrivateLimitedCompanyLtd 2022-05-01 2023-04-30 323928 e:FurnitureFittings e:PriorPeriodIncreaseDecrease 2022-05-01 2023-04-30 323928 2 2022-05-01 2023-04-30 323928 6 2022-05-01 2023-04-30 323928 e:AcceleratedTaxDepreciationDeferredTax 2023-04-30 323928 e:AcceleratedTaxDepreciationDeferredTax 2022-04-30 323928 e:TaxLossesCarry-forwardsDeferredTax 2023-04-30 323928 e:TaxLossesCarry-forwardsDeferredTax 2022-04-30 iso4217:GBP xbrli:pure

Registered number: 323928










CASTLE LANE SECURITIES LIMITED










DIRECTORS' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2023



 
CASTLE LANE SECURITIES LIMITED
 

COMPANY INFORMATION


DIRECTORS
Mark Pears CBE 
Sir Trevor Pears CMG 
David Pears 
WPG Registrars Limited 




COMPANY SECRETARY
William Bennett



REGISTERED NUMBER
323928



REGISTERED OFFICE
Ground Floor
30 City Road

London

EC1Y 2AB




INDEPENDENT AUDITORS
Gravita II LLP
Chartered Accountants & Statutory Auditor

Ground Floor

30 City Road

London

EC1Y 2AB





 
CASTLE LANE SECURITIES LIMITED
 

CONTENTS



Page
Directors' Report
1 - 2
Independent Auditors' Report
3 - 6
Statement of Comprehensive Income
7
Statement of Financial Position
8
Statement of Changes in Equity
9 - 10
Notes to the Financial Statements
11 - 20


 
CASTLE LANE SECURITIES LIMITED
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2023

The directors present their report and the financial statements for the year ended 30 April 2023.

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

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

PRINCIPAL ACTIVITY

The principal activity of the company is property investment.

DIRECTORS

The directors who served during the year were:

Mark Pears CBE 
Sir Trevor Pears CMG 
David Pears 
WPG Registrars Limited 

DISCLOSURE OF INFORMATION TO AUDITORS

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Page 1

 
CASTLE LANE SECURITIES LIMITED
 

DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023


SMALL COMPANIES NOTE

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the board on 7 November 2023 and signed on its behalf.
 





William Bennett
Secretary

Page 2

 
CASTLE LANE SECURITIES LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CASTLE LANE SECURITIES LIMITED
 


OPINION

We have audited the financial statements of Castle Lane Securities Limited (the 'Company') for the year ended 30 April 2023, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity,  and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the Company's affairs as at 30 April 2023 and of its loss for the  year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

BASIS FOR OPINION

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 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. However, because not all future events or conditions can be predicted this statement is not a guarantee as to the company's ability to continue as a going concern.

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 Auditors' 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.
Page 3

 
CASTLE LANE SECURITIES LIMITED
 

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CASTLE LANE SECURITIES LIMITED (CONTINUED)

OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the  Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the  Directors' report has been prepared in accordance with applicable legal requirements.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in 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:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' report and from the requirement to prepare a Strategic report.

RESPONSIBILITIES OF DIRECTORS
 
As explained more fully in the Directors' responsibilities statement set out on page 1, 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 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 Company or to cease operations, or have no realistic alternative but to do so.

AUDITORS' RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.
Page 4

 
CASTLE LANE SECURITIES LIMITED
 

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CASTLE LANE SECURITIES LIMITED (CONTINUED)

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the property sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company including, but not limited to, the Companies Act 2006,  and taxation legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

understanding the business model as part of the control and business environment;
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations and;
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud.

To address the risk of fraud through management bias and override of controls, we:

performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims;
reviewing correspondence and enquiring with the company of actual and potential non-compliance with laws and regulations; and
reading the minutes of meetings of those charged with governance.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment by for example forgery, or intentional misrepresentations or through collusion. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.
Page 5

 
CASTLE LANE SECURITIES LIMITED
 

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CASTLE LANE SECURITIES LIMITED (CONTINUED)

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 Auditors' 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.





Ian Hughes ACA (Senior statutory auditor)
for and on behalf of
Gravita II LLP
Chartered Accountants
Statutory Auditor
Ground Floor
30 City Road
London
EC1Y 2AB
8 November 2023

Page 6

 
CASTLE LANE SECURITIES LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2023

2023
2022
Note
£
£

  

Turnover
  
8,565,240
7,903,625

Cost of sales
  
(3,704,152)
(3,276,165)

GROSS PROFIT
  
4,861,088
4,627,460

Administrative expenses
  
(1,152,121)
(866,041)

Profit on sale of investment properties
 3 
859,509
1,397,336

Fair value movements
 9,10 
(10,404,780)
19,830,480

OPERATING (LOSS)/PROFIT
  
(5,836,304)
24,989,235

Income from fixed assets investments
  
-
8

Interest receivable and similar income
  
2,716
26,743

Interest payable and similar charges
 6 
(642,899)
(144,331)

(LOSS)/PROFIT BEFORE TAX
  
(6,476,487)
24,871,655

Tax on (loss)/profit
 7 
2,650,305
(11,117,916)

(LOSS)/PROFIT FOR THE YEAR
  
(3,826,182)
13,753,739

TOTAL COMPREHENSIVE INCOME FOR THE YEAR
  
(3,826,182)
13,753,739

The notes on pages 11 to 20 form part of these financial statements.

Page 7

 
CASTLE LANE SECURITIES LIMITED
REGISTERED NUMBER:323928

STATEMENT OF FINANCIAL POSITION
AS AT 30 APRIL 2023

2023
2023
2022
2022
Note
£
£
£
£

FIXED ASSETS
  

Tangible assets
 8 
167,889
197,516

Investments
 9 
575
549

Investment property
 10 
206,802,851
207,766,532

  
206,971,315
207,964,597

CURRENT ASSETS
  

Debtors: amounts falling due within one year
 11 
2,031,683
1,538,641

Cash at bank and in hand
  
259,348
248,566

  
2,291,031
1,787,207

Creditors: amounts falling due within one year
 12 
(23,472,900)
(4,500,788)

NET CURRENT LIABILITIES
  
 
 
(21,181,869)
 
 
(2,713,581)

TOTAL ASSETS LESS CURRENT LIABILITIES
  
185,789,446
205,251,016

PROVISIONS FOR LIABILITIES
  

Deferred taxation
 13 
(27,695,465)
(30,330,853)

  
 
 
(27,695,465)
 
 
(30,330,853)

NET ASSETS
  
158,093,981
174,920,163


CAPITAL AND RESERVES
  

Called up share capital 
  
10,000
10,000

Investment property revaluation reserve
 14 
88,454,926
96,555,499

Profit and loss account
 14 
69,629,055
78,354,664

TOTAL EQUITY
  
158,093,981
174,920,163


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 were approved and authorised for issue by the board and were signed on its behalf on 7 November 2023.

David Pears
Director

The notes on pages 11 to 20 form part of these financial statements.



Page 8

 
CASTLE LANE SECURITIES LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2023


Called up share capital
Investment property revaluation reserve
Profit and loss account
Total equity

£
£
£
£

At 1 May 2022
10,000
96,555,499
78,354,664
174,920,163


COMPREHENSIVE INCOME FOR THE YEAR

Loss for the year

-
-
(3,826,182)
(3,826,182)

-
-
-
-

Transfer realised gains to retained earnings
-
(1,114,465)
1,114,465
-

Deferred tax movements
-
2,635,388
(2,635,388)
-

Transfer revaluation during the year
-
(9,621,496)
9,621,496
-


OTHER RESERVE MOVEMENTS FOR THE YEAR
-
(8,100,573)
8,100,573
-


TOTAL COMPREHENSIVE INCOME FOR THE YEAR
-
(8,100,573)
4,274,391
(3,826,182)

Dividends: Equity capital
-
-
(13,000,000)
(13,000,000)


AT 30 APRIL 2023
10,000
88,454,926
69,629,055
158,093,981


The notes on pages 11 to 20 form part of these financial statements.



Page 9

 
CASTLE LANE SECURITIES LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2022


Called up share capital
Investment property revaluation reserve
Profit and loss account
Total equity

£
£
£
£

At 1 May 2021
10,000
88,057,261
73,099,163
161,166,424


COMPREHENSIVE INCOME FOR THE YEAR

Profit for the year

-
-
13,753,739
13,753,739

Transfer realised gains to retained earnings
-
(30,590)
30,590
-

Deferred tax movements
-
(10,876,079)
10,876,079
-

Transfer revaluation during the year
-
19,404,907
(19,404,907)
-


OTHER RESERVE MOVEMENTS FOR THE YEAR
-
8,498,238
(8,498,238)
-


TOTAL COMPREHENSIVE INCOME FOR THE YEAR
-
8,498,238
5,255,501
13,753,739


AT 30 APRIL 2022
10,000
96,555,499
78,354,664
174,920,163


The notes on pages 11 to 20 form part of these financial statements.



Page 10

 
CASTLE LANE SECURITIES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

1.


GENERAL INFORMATION

Castle Lane Securities Limited is a private company limited by shares incorporated in England and Wales. The registered office is Ground Floor, 30 City Road, London EC1Y 2AB.The principal place of business is Haskell House, 152 West End Lane, London, NW6 1SD.

2.ACCOUNTING POLICIES

 
2.1

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 other than where additional disclosure is required to show a true and fair view..

The company's functional and presentational currency is GBP and rounded to the nearest £1.

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.

The company is the parent undertaking of a small group with its own subsidiary being dormant and as such the company is taking exemption from the requirement to prepare group accounts as required by the Companies Act 2006. These financial statements therefore present information about the company as an individual undertaking and not about its group.

The following principal accounting policies have been applied:

  
2.2
GOING CONCERN

The financial statements have been prepared on a going concern basis even though the company has net current liabilities of £21,181,869 (2022 - £2,713,581). The validity of the going concern concept is dependent on the continuing support from creditors. The directors believe that the going concern concept is applicable as the company will be able to meet its debts as and when they fall due, as they are confident that the principal creditors will continue to provide support as required for a period of at least 12 months from the date of approval of the financial statements.

  
2.3
TURNOVER

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Turnover is measured as the fair value of the rents receivable.

  
2.4
PROPERTY TRANSACTIONS

Purchases and sales of properties are included on the basis of completions occurring during the year.

 
2.5

TANGIBLE FIXED ASSETS

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 11

 
CASTLE LANE SECURITIES LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

2.ACCOUNTING POLICIES (CONTINUED)


2.5
TANGIBLE FIXED ASSETS (CONTINUED)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Fixtures & fittings
-
15% reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.6

INVESTMENT PROPERTY

Investment property is carried at fair value determined annually by the directors 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 Income statement.

 
2.7

VALUATION OF INVESTMENTS

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in listed company shares are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in profit or loss for the period.

 
2.8

DEBTORS

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.

 
2.9

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.

Page 12

 
CASTLE LANE SECURITIES LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

2.ACCOUNTING POLICIES (CONTINUED)

 
2.10

FINANCIAL INSTRUMENTS

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 to related parties and investments in non - puttable ordinary shares. 

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an 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.

 
2.11

CREDITORS

Short term creditors are measured at the transaction price.

  
2.12
REPAIRS AND MAINTENANCE

All repairs, maintenance costs and renewals are written off as incurred.
Certain refurbishment costs which are part of major property refurbishment programmes may, depending on the nature of the works being undertaken, be capitalised in the statement of financial position as part of investment properties.

 
2.13

FINANCE COSTS

Finance costs are charged to profit or loss 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.

Page 13

 
CASTLE LANE SECURITIES LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

2.ACCOUNTING POLICIES (CONTINUED)

 
2.14

DIVIDENDS

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

 
2.15

INTEREST INCOME

Interest income is recognised in profit or loss using the effective interest method.

  
2.16

PROVISIONS FOR LIABILITIES

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Income Statement in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Statement of Financial Position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.

 
2.17

CURRENT AND DEFERRED TAXATION

The tax expense for the year comprises current and deferred tax. 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 reporting 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 reporting 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 reporting date.

Page 14

 
CASTLE LANE SECURITIES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

3.


PROFIT ON SALE OF INVESTMENT PROPERTIES

2023
2022
£
£


Sale of investment properties
5,272,719
2,460,514

Historical cost
(3,298,745)
(1,032,588)

1,973,974
1,427,926


Prior years fair value surplus realised
(1,114,465)
(30,590)

859,509
1,397,336



4.


AUDITORS' REMUNERATION

2023
2022
£
£



Fees payable to the Company's auditor and its associates for the audit of the Company's annual accounts
14,400
13,500


5.


EMPLOYEES

The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Directors
3
3


6.


INTEREST PAYABLE AND SIMILAR CHARGES

2023
2022
£
£


Loans from group undertakings
642,899
144,331

642,899
144,331

Page 15

 
CASTLE LANE SECURITIES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

7.


TAXATION


2023
2022
£
£

CORPORATION TAX


Current tax on (loss)/profit for the year
947,439
959,352

Adjustments in respect of previous periods
(962,356)
(720,519)


(14,917)
238,833


TOTAL CURRENT TAX
(14,917)
238,833

DEFERRED TAX


Origination and reversal of timing differences
(2,635,388)
10,876,079

Tax on surplus realised
-
3,004

TOTAL DEFERRED TAX
(2,635,388)
10,879,083


TAXATION ON (LOSS)/PROFIT ON ORDINARY ACTIVITIES
(2,650,305)
11,117,916

FACTORS AFFECTING TAX (CREDIT)/CHARGE FOR THE YEAR

The tax assessed for the year is lower than (2022 -higher than) the standard rate of corporation tax in the UK of 19.5% (2022 -19%). The differences are explained below:

2023
2022
£
£


(Loss)/profit on ordinary activities before tax
(6,476,487)
24,871,655


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19.5% (2022 -19%)
(1,262,915)
4,725,614

EFFECTS OF:


Capital allowances for year in excess of depreciation
4,912
1,529

Adjustments to tax charge in respect of prior periods
(962,356)
(720,519)

Short term timing difference leading to a (decrease)/increase in taxation
(2,635,388)
10,876,079

Book profit on chargeable assets
(167,604)
(265,494)

Capital gains
348,494
268,498

Changes in provisions leading to a decrease in the tax charge
(4,380)
-

Valuation losses/(gains) not taxable
2,028,932
(3,767,791)

TOTAL TAX (CREDIT)/CHARGE FOR THE YEAR
(2,650,305)
11,117,916

Page 16

 
CASTLE LANE SECURITIES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
 
7.TAXATION (CONTINUED)


FACTORS THAT MAY AFFECT FUTURE TAX CHARGES

There were no factors that may affect future tax charges.




8.


TANGIBLE FIXED ASSETS





Fixtures & fittings

£



COST OR VALUATION


At 1 May 2022
1,003,260



At 30 April 2023
1,003,260



DEPRECIATION


At 1 May 2022
805,744


Charge for the year on owned assets
29,627



At 30 April 2023
835,371



NET BOOK VALUE



At 30 April 2023
167,889



At 30 April 2022
197,516


9.


FIXED ASSET INVESTMENTS





Investments in subsidiary companies
Listed investments
Total

£
£
£



COST OR VALUATION


At 1 May 2022
49
500
549


Fair value movement
-
26
26



At 30 April 2023
49
526
575




Page 17

 
CASTLE LANE SECURITIES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

10.


INVESTMENT PROPERTY


Freehold investment property
Long term leasehold investment property
Total

£
£
£



VALUATION


At 1 May 2022
203,506,284
4,260,248
207,766,532


Additions at cost
13,050,012
804,323
13,854,335


Disposals
(3,988,769)
(424,441)
(4,413,210)


Fair value movement
(10,355,805)
(49,001)
(10,404,806)



AT 30 APRIL 2023
202,211,722
4,591,129
206,802,851

The 2023 valuations were made by the directors, on an open market value for existing use basis.



If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:

2023
2022
£
£


Historic cost
90,652,400
80,880,120

90,652,400
80,880,120

At the year end, the provision for diminution in value amounted to £1,407,559 (2022: £624,249).


11.


DEBTORS

2023
2022
£
£


Amounts owed by group undertakings
111,919
7,010

Other debtors
1,906,476
1,531,631

Prepayments and accrued income
13,288
-

2,031,683
1,538,641


Page 18

 
CASTLE LANE SECURITIES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

12.


CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023
2022
£
£

Amounts owed to group undertakings
19,529,522
1,113,269

Corporation tax
947,439
962,356

Other taxation and social security
305
1

Other creditors
1,216,754
1,071,179

Accruals and deferred income
1,778,880
1,353,983

23,472,900
4,500,788



13.


DEFERRED TAXATION




2023
2022


£

£






At beginning of year
30,330,853
19,454,774


(Released)/charged to profit or loss
(2,635,388)
10,876,079



AT END OF YEAR
27,695,465
30,330,853

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Tax on revaluation of investment properties
27,695,525
30,330,913

Tax on fair value movement of listed investments
(60)
(60)

27,695,465
30,330,853


14.


RESERVES

Investment property revaluation reserve

The investment property revaluation reserve includes all current and prior year movements.

Profit & loss account

The profit and loss account includes all current and prior year retained profits and losses.

Page 19

 
CASTLE LANE SECURITIES LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

15.


RELATED PARTY TRANSACTIONS

The company has taken advantage of the exemptions from disclosure available to subsidiary undertakings under FRS102  Section 1A, paragraph 1 AC.35 in connection with intra group transactions.
The company received estate agents services from a partnership in which the directors Mark Pears CBE,  Sir Trevor Pears CMG and David Pears have an interest, the cost of which amounted to £123,360 (2022- £117,840).
The company received management services from CHP Management Limited, a company in which the directors Mark Pears CBE, Sir Trevor Pears CMG  and David Pears have an interest, the cost of which amounted to £73,200 (2022 - £60,000).


16.


CONTROLLING PARTY

The company is a wholly owned subsidiary of The William Pears Group of Companies Limited. The company's ultimate holding company is William Pears Group Limited, a company incorporated in England. The registered office is Ground Floor, 30 City Road, London EC1Y 2AB. 


17.
BANKING ARRANGEMENTS

The company, in common with certain family connected companies, participates in a group banking arrangement in respect of overdraft and loan facilities.  Companies participating in this arrangement have a joint and several liability to the bank for the total group indebtedness.  The total amount outstanding at 30 April 2023 was £Nil (2022 - £Nil).  The directors do not consider that the bank will ever need recourse to this company, each family connected company having ample resources to meet its own liabilities.


Page 20