Company registration number 02360917 (England and Wales)
CARPENTER BOX LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
CARPENTER BOX LIMITED
COMPANY INFORMATION
Directors
J Billings
K Blake
R Dowling
S Noakes
C Eve
A Edwards
N Keeley
A Summers
G Evans
R Thompson
P Reading
S Fitzgerald
D Crowter
D Hobbs
S Uwins
C Reeves
R Pearce
R Lee
(Appointed 18 April 2023)
Secretary
J Billings
Company number
02360917
Registered office and business address
Amelia House
Crescent Road
Worthing
West Sussex
BN11 1RL
Auditors
Beak Kemmenoe
1-3 Manor Road
Chatham
Kent
ME4 6AE
CARPENTER BOX LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
4 - 5
Directors' responsibilities statement
3
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10 - 11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 27
CARPENTER BOX 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

Results and performance:

The turnover from continuing operations was £14.0m, an increase of 9.04% on the prior year. The gross profit margin was comparable to the prior year at 36.25% (2022 - 36.04%).

 

The balance sheet shows the company remains in a strong financial position with net assets amounting to £6.2m (£5.8m as at 31 March 2022).

 

The financial position of the company at the year end is shown on page 10.

 

The directors remain satisfied with the trading performance of the company throughout the year and expect the company to continue to report acceptable revenue growth and profits in the forthcoming year.

Principal risks and uncertainties

The company is exposed to risks that may affect the future performance and development of the business, including both regulatory and compliance risks.  Internal controls and procedures exist in order to mitigate these risks so that the business can adapt effectively to any future changes in regulations and ensure that client service is maintained at a high level.

 

Other economic risks exist including the effect of rising inflation and the cost of living as well as the wider impact of the war in Ukraine. 

 

The directors will continue to monitor the various risks, however with a strong balance sheet and suitable funding facilities in place the directors are confident that all foreseeable risks can be mitigated as far as possible.

Development and performance

The key focus of the business continues to be to deliver a best in class service to enable our clients to succeed in their aims. We achieve this by listening to our clients, continuously improving the way we do things, and by working collaboratively as a team. Our focus is always on client service, with open and honest relationships.

 

An equally important focus is that we put our team at the centre of our thinking. We provide competitive study packages for trainee accountants with a strong emphasis on providing support and training. We also provide all of our professional and support staff with technical and soft skill training to enable them to fully develop their potential so that they can achieve all they want to achieve and help the business to provide a high quality service to all our clients. During the year we have continued to enhance our packages so we pay our team well and attract the highest level candidates for future vacancies.

 

In addition, we have continued to invest in technology and our offices to ensure we remain efficient in our processes and provide our staff with modern and attractive office environments. Since the year end we have continued with expansions and new locations, including a new larger Brighton office and continued expansion to the West, in Chichester and Portsmouth.

Key performance indicators

The main key performance indicators of the business are the turnover and the gross profit percentage as disclosed above in the review of the business.  Additional KPI’s are used internally within the business however the directors are of the opinion that no further inclusion of financial and non-financial indicators is necessary to provide an understanding of the performance, development or financial position of the company’s business.   

 

CARPENTER BOX LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -

On behalf of the board

A Edwards
Director
10 November 2023
CARPENTER BOX LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

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 company and of the profit or loss of the company 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 company’s transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

CARPENTER BOX LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -

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

Principal activities

The principal activity of the company was that of a firm of Chartered Accountants and Chartered Tax Advisors.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £1,192,621. The directors do not recommend payment of a further dividend for the year ended 31 March 2023.

Directors

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

J Billings
K Blake
R Dowling
S Noakes
C Eve
A Edwards
N Keeley
A Summers
G Evans
R Thompson
P Reading
S Fitzgerald
D Crowter
D Hobbs
S Uwins
C Reeves
A Davies
(Resigned 31 July 2023)
R Pearce
R Lee
(Appointed 18 April 2023)
Financial instruments

Liquidity risk

The company maintains sufficient cash to meet its obligations as and when they become due. The directors are committed to ensuring the continued success of the business and providing support in the form of working capital.

Interest rate risk

The company is exposed to interest rate risk on its variable rate borrowing and cash flow interest rate risk on bank overdraft facilities. The company manages this in part by preparing monthly cash reconciliations that prudently provide for known future expenditure.

Credit risk

Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Inflation risk

The company is exposed to inflation risk as a result of the cost of living crisis. The company prepares a budget at the start of each financial year. Costs are regularly reviewed against budget to monitor spend through out the year.

CARPENTER BOX LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -
Post reporting date events

The post reporting date events are set out in note 24 to the financial statements.

Auditor

Beak Kemmenoe were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

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 company’s auditor 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 company’s auditor is aware of that information.

 

On behalf of the board
A Edwards
Director
10 November 2023
CARPENTER BOX LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CARPENTER BOX LIMITED
- 6 -
Opinion

We have audited the financial statements of Carpenter Box Limited (the 'company') for the year ended 31 March 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 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 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Directors' Report, but does not include the financial statements and our Report of the Auditors thereon.

 

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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:

CARPENTER BOX LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CARPENTER BOX LIMITED
- 7 -
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 Strategic Report or the Report of the Directors.

 

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

 

Responsibilities of directors

As explained more fully in the Statement of Directors Responsibilities set out on page 5, 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 determine 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.

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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

 

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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 business 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 the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment and health and safety legislation;

- We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; 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.

 

CARPENTER BOX LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CARPENTER BOX LIMITED
- 8 -

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

- Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

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; and

- Enquiring of management as to actual and potential litigation and claims;

 

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

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

Ronald Price FCA (Senior Statutory Auditor)
For and on behalf of Beak Kemmenoe
10 November 2023
Chartered Accountants
Statutory Auditor
1-3 Manor Road, Chatham, Kent, ME4 6AE
CARPENTER BOX LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
Year
Year
ended
ended
31 March
31 March
2023
2022
Notes
£
£
Turnover
3
13,995,430
12,798,632
Cost of sales
(8,921,413)
(8,186,000)
Gross profit
5,074,017
4,612,632
Administrative expenses
(3,361,453)
(3,037,276)
Other operating income
296,063
182,905
Operating profit
4
2,008,627
1,758,261
Interest receivable and similar income
7
2,537
7,514
Interest payable and similar expenses
8
(23,545)
(21,804)
Amounts written off investments
9
(14,103)
-
Profit before taxation
1,973,516
1,743,971
Taxation
10
(423,236)
(382,944)
Profit for the financial year
1,550,280
1,361,027

The profit and loss account has been prepared on the basis that all operations are continuing operations.

CARPENTER BOX LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
13
2,356,544
2,624,251
Other intangible assets
13
1,955
-
0
Total intangible assets
2,358,499
2,624,251
Tangible assets
14
415,504
423,969
Investments
15
-
0
14,103
2,774,003
3,062,323
Current assets
Stocks
16
4,000
2,000
Debtors
17
4,673,824
4,223,824
Cash at bank and in hand
877,738
799,792
5,555,562
5,025,616
Creditors: amounts falling due within one year
18
(1,840,551)
(1,855,184)
Net current assets
3,715,011
3,170,432
Total assets less current liabilities
6,489,014
6,232,755
Creditors: amounts falling due after more than one year
19
(241,667)
(341,667)
Provisions for liabilities
(70,000)
(71,400)
Net assets
6,177,347
5,819,688
Capital and reserves
Called up share capital
22
3,000
3,000
Other reserves
1,022,876
1,113,121
Profit and loss reserves
5,151,471
4,703,567
Total equity
6,177,347
5,819,688
CARPENTER BOX LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2023
31 March 2023
- 11 -
The financial statements were approved by the board of directors and authorised for issue on 10 November 2023 and are signed on its behalf by:
J Billings
A  Edwards
Director
Director
Company Registration No. 02360917
CARPENTER BOX LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
Share capital
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2021
3,000
1,203,366
5,027,089
6,233,455
Period ended 31 March 2022:
Profit and total comprehensive income for the period
-
-
1,361,027
1,361,027
Dividends
11
-
-
(1,774,794)
(1,774,794)
Other movements
-
(90,245)
90,245
-
Balance at 31 March 2022
3,000
1,113,121
4,703,567
5,819,688
Period ended 31 March 2023:
Profit and total comprehensive income for the period
-
-
1,550,280
1,550,280
Dividends
11
-
-
(1,192,621)
(1,192,621)
Other movements
23
-
(90,245)
90,245
-
Balance at 31 March 2023
3,000
1,022,876
5,151,471
6,177,347
CARPENTER BOX LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
1,800,578
1,953,820
Interest paid
(23,545)
(21,804)
Income taxes paid
(330,687)
(654,563)
Net cash inflow from operating activities
1,446,346
1,277,453
Investing activities
Purchase of intangible assets
(2,829)
(45,101)
Proceeds from disposal of intangibles
52,502
-
0
Purchase of tangible fixed assets
(130,401)
(253,228)
Proceeds from disposal of tangible fixed assets
2,412
3,731
Proceeds from disposal of subsidiaries
-
0
50
Interest received
2,537
7,514
Net cash used in investing activities
(75,779)
(287,034)
Financing activities
Repayment of bank loans
(100,000)
(58,333)
Dividends paid
(1,192,621)
(1,774,794)
Net cash used in financing activities
(1,292,621)
(1,833,127)
Net increase/(decrease) in cash and cash equivalents
77,946
(842,708)
Cash and cash equivalents at beginning of year
799,792
1,642,500
Cash and cash equivalents at end of year
877,738
799,792
CARPENTER BOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
1
Accounting policies
Company information

Carpenter Box Limited is a private company limited by shares incorporated in England and Wales. The registered office is Amelia House, Crescent Road, Worthing, West Sussex, BN11 1RL.

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 £1.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and at least twelve months from the approval of the Financial Statements. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

 

1.3
Turnover

Turnover represents revenue earned under a wide variety of contracts to provide professional services. Revenue is recognised as earned when, and to the extent that, the firm obtains the right to consideration in exchange for its performance under these contracts. It is measured at the fair value of the right to consideration, which represents amounts chargeable to clients, including expenses and disbursements but excluding value added tax.

 

Turnover is recognised as contract activity progresses so that for incomplete contracts it reflects the partial performance of the contractual obligations. For such contracts the amount of revenue reflects the accrual of the right to consideration by reference to the value of work performed. Revenue not billed to clients is included in debtors and payments on account in excess of the relevant amount of revenue are included in creditors.

 

Turnover that is contingent on events outside the control of the firm is recognised when the contingent event occurs.

 

Commission income is included in the accounts on an accruals basis.

1.4
Intangible fixed assets - goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Acquired goodwill is written off in equal annual instalments over its estimated useful economic life, which ranges from 5 - 20 years. Where goodwill is written off over a period of greater than 10 years this has been completed based on historical information and includes the estimated length of an average client relationship. See also note 2 of the financial statements.

CARPENTER BOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 15 -
1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Website
20% pa straight line
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:

Short leasehold
over the term of the lease
Fixtures, fittings & equipment
20% pa on a diminishing balance basis / 25% pa straight line on computer equipment / transferred assets are depreciated on either the original net book value for diminishing balance or original cost for straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.7
Stocks

Stocks are stated at the lower of cost and net realisable value and include supplies of stationery and consumables.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

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.

CARPENTER BOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -
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 company 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.

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.

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 company’s contractual obligations expire or are discharged or cancelled.

CARPENTER BOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -
1.10
Equity instruments

Equity instruments, including share capital issued by the company 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 company.

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 profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.

1.12
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.

1.13
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 leases asset are consumed.

1.14
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions have been met and the grants will be received.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

CARPENTER BOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 18 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Amounts recoverable on long term contracts

The amounts recoverable on long term contracts reflects the valuation of unbilled fees for client work. Estimation for the percentage completion and anticipated recoverability of the assignments is based on historical experience and is reviewed on an ongoing basis. The directors acknowledge the risk that the estimates may differ from the actual results.

 

The amounts recoverable on long term contracts in the financial statements amounts to £1,257,594 (2022: £1,303,836) and these are included within debtors as shown in note 17.

Goodwill

The valuation of goodwill uses estimates and judgement in respect of the longevity and profitability of client relationships, anticipated future revenues and returns on working capital.

Useful lives and depreciation methods

The useful lives and depreciation methods in respect of tangible fixed assets are set out in the accounting policies. These estimates are a best estimate based on past experience and expected performance. These are reviewed regularly to ensure they continue to be appropriate.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Rendering of services
13,995,430
12,798,632
2023
2022
£
£
Other revenue
Interest income
2,537
7,514
Grants received
-
8,545
Other amounts receivable from connected companies
78,742
-
Tax Investigation Service income
208,500
170,471
MTD bridging software income
-
1,791
Sundry income
8,821
2,098

The total turnover of the company has been derived from its principal activity wholly undertaken in the United Kingdom.

CARPENTER BOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 19 -
4
Operating profit
2023
2022
Operating profit for the period is stated after charging/(crediting):
£
£
Government grants
-
(8,545)
Fees payable to the company's auditor for the audit of the company's financial statements
8,500
12,000
Depreciation of owned tangible fixed assets
134,798
123,673
Loss on disposal of tangible fixed assets
1,656
11,005
Amortisation of intangible assets
246,506
292,620
Profit on disposal of intangible assets
(30,427)
-
Operating lease charges
155,920
92,175
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was 18 (2022 - 18).

2023
2022
Number
Number
Directors
18
18

Their aggregate remuneration comprised:

2023
2022
£
£
Social security costs
531
-
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
3,652
-
0
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
-
0
7,514
Other interest income
2,537
-
0
Total income
2,537
7,514
CARPENTER BOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
7
Interest receivable and similar income
(Continued)
- 20 -
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
2,537
7,514
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
23,545
21,804
9
Amounts written off investments
2023
2022
£
£
Other gains and losses
(14,103)
-
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
424,636
360,944
Deferred tax
Origination and reversal of timing differences
(1,400)
22,000
Total tax charge
423,236
382,944
CARPENTER BOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
10
Taxation
(Continued)
- 21 -

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
1,973,516
1,743,971
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
374,968
331,354
Tax effect of expenses that are not deductible in determining taxable profit
8,738
6,587
Permanent capital allowances in excess of depreciation
(6,020)
(33,062)
Depreciation on assets not qualifying for tax allowances
628
500
Amortisation on assets not qualifying for tax allowances
46,836
55,598
Other permanent differences
(514)
(33)
Deferred tax adjustments in respect of prior years
(1,400)
22,000
Taxation charge for the period
423,236
382,944
11
Dividends
2023
2022
£
£
Final paid
1,192,621
1,774,794
12
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
Notes
£
£
In respect of:
Fixed asset investments
15
14,103
-
Recognised in:
Amounts written off investments
14,103
-

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

CARPENTER BOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 22 -
13
Intangible fixed assets
Goodwill
Website
Total
£
£
£
Cost
At 1 April 2022
4,951,084
-
0
4,951,084
Additions
385
2,444
2,829
Disposals
(39,376)
-
0
(39,376)
At 31 March 2023
4,912,093
2,444
4,914,537
Amortisation and impairment
At 1 April 2022
2,326,833
-
0
2,326,833
Amortisation charged for the year
246,017
489
246,506
Eliminated on disposal
(17,301)
-
0
(17,301)
At 31 March 2023
2,555,549
489
2,556,038
Carrying amount
At 31 March 2023
2,356,544
1,955
2,358,499
At 31 March 2022
2,624,251
-
0
2,624,251
14
Tangible fixed assets
Short leasehold
Fixtures, fittings & equipment
Total
£
£
£
Cost
At 1 April 2022
96,405
779,746
876,151
Additions
-
0
130,401
130,401
Disposals
-
0
(86,613)
(86,613)
At 31 March 2023
96,405
823,534
919,939
Depreciation and impairment
At 1 April 2022
46,104
406,078
452,182
Depreciation charged in the year
7,009
127,789
134,798
Eliminated in respect of disposals
-
0
(82,545)
(82,545)
At 31 March 2023
53,113
451,322
504,435
Carrying amount
At 31 March 2023
43,292
372,212
415,504
At 31 March 2022
50,301
373,668
423,969
CARPENTER BOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
15
Fixed asset investments
2023
2022
£
£
Unlisted investments
-
0
14,103
Movements in fixed asset investments
Investments other than loans
£
Cost or valuation
At 1 April 2022 & 31 March 2023
14,103
Impairment
At 1 April 2022
-
Impairment losses
14,103
At 31 March 2023
14,103
Carrying amount
At 31 March 2023
-
At 31 March 2022
14,103
16
Stocks
2023
2022
£
£
Stationery and consumables
4,000
2,000
17
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,984,568
2,635,088
Gross amounts owed by contract customers
1,257,594
1,303,836
Other debtors
138,877
13,511
Prepayments and accrued income
292,785
271,389
4,673,824
4,223,824
CARPENTER BOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 24 -
18
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
20
100,000
100,000
Trade creditors
63,260
66,169
Gross amounts owed to contract customers
-
0
682
Corporation tax
224,893
130,944
Other taxation and social security
251,365
241,672
Deferred income
102,890
146,106
Other creditors
707,128
795,916
Accruals and deferred income
391,015
373,695
1,840,551
1,855,184
19
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
20
241,667
341,667
20
Loans and overdrafts
2023
2022
£
£
Bank loans
341,667
441,667
Payable within one year
100,000
100,000
Payable after one year
241,667
341,667

The bank loan is secured with a fixed and floating charge over the Company's assets. The bank loan incurs interest at a rate of 3.99% above the Bank of England base rate and is fully repayable within five years.

21
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
70,000
71,400
CARPENTER BOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
21
Deferred taxation
(Continued)
- 25 -
2023
Movements in the year:
£
Liability at 1 April 2022
71,400
Credit to profit or loss
(1,400)
Liability at 31 March 2023
70,000

Deferred tax liabilities are expected to reverse over the useful lives of the related fixed assets.

22
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of 1p each
200,000
200,000
2,000
2,000
B Ordinary shares of 1p each
100,000
100,000
1,000
1,000
300,000
300,000
3,000
3,000

Ordinary A shares have attached to them full voting rights. They are not entitled to receive dividends. On a winding up the holders shall be entitled to participate only in the sum of 1p per share.

Ordinary B shares have no voting rights. They have full dividend and capital distribution rights (including on winding up).

23
Other reserves
2023
2022
£
£
At the beginning of the year
1,113,121
1,203,366
Other movements
(90,245)
(90,245)
At the end of the year
1,022,876
1,113,121

The other reserve represents the increase in value of the investment in Carpenter Box LLP at the date of disposal. The movement of £90,245 (2022: £90,245) in other reserves relates to the apportioned amount of goodwill that has been amortised.

24
Events after the reporting date

Following the balance sheet date, dividends amounting to £557,333 have been proposed.

 

Since the balance sheet date, the company has exchanged contracts to acquire an accountancy business for c£1.4m.

CARPENTER BOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 26 -
25
Operating lease commitments
Lessee

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

2023
2022
£
£
Within one year
131,288
84,775
Between two and five years
161,354
29,780
In over five years
-
0
373
292,642
114,928
26
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

The company has been charged management and administrative fees by Carpenter Box LLP, a limited liability partnership which has joint management control. These amounts are included in cost of sales amounting to £8,304,104 (2022: £7,543,804) and in overheads amounting to £1,158,123 (2022: £1,099,430). At the Balance Sheet date there were amounts owed to Carpenter Box LLP totalling £690,884 (2022: £766,427) and these are included within other creditors.

 

In addition Carpenter Box LLP owns 50% of the Ordinary B shares of the company and is entitled to receive dividends on these shares.

27
Ultimate controlling party

The company is controlled by the directors.

CARPENTER BOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 27 -
28
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
1,550,280
1,361,027
Adjustments for:
Taxation charged
423,236
382,944
Finance costs
23,545
21,804
Investment income
(2,537)
(7,514)
Loss on disposal of tangible fixed assets
1,656
11,005
Gain on disposal of intangible assets
(30,427)
-
Amortisation and impairment of intangible assets
246,506
292,620
Depreciation and impairment of tangible fixed assets
134,798
123,673
Other gains and losses
14,103
-
Movements in working capital:
Increase in stocks
(2,000)
(2,000)
Increase in debtors
(450,000)
(233,447)
Decrease in creditors
(65,366)
(13,383)
(Decrease)/increase in deferred income
(43,216)
17,091
Cash generated from operations
1,800,578
1,953,820
29
Analysis of changes in net funds
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
799,792
77,946
877,738
Borrowings excluding overdrafts
(441,667)
100,000
(341,667)
358,125
177,946
536,071
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