Company registration number 10938351 (England and Wales)
CLAYBROOK STUDIO LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
CLAYBROOK STUDIO LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 11
CLAYBROOK STUDIO LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
4,504
6,024
Tangible assets
4
210,649
189,305
215,153
195,329
Current assets
Stocks
1,558,177
1,541,594
Debtors
5
932,146
1,029,360
Cash at bank and in hand
380,860
219,372
2,871,183
2,790,326
Creditors: amounts falling due within one year
6
(1,366,735)
(1,335,653)
Net current assets
1,504,448
1,454,673
Total assets less current liabilities
1,719,601
1,650,002
Creditors: amounts falling due after more than one year
7
(2,800,000)
(2,800,000)
Provisions for liabilities
8
(20,000)
(20,000)
Net liabilities
(1,100,399)
(1,169,998)
Capital and reserves
Called up share capital
11
1,000,000
1,000,000
Profit and loss reserves
(2,100,399)
(2,169,998)
Total equity
(1,100,399)
(1,169,998)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on
2 April 2024 and are signed on its behalf by:
2024-04-02
Mr A Manders
Director
Company registration number 10938351 (England and Wales)
CLAYBROOK STUDIO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
Claybrook Studio Limited is a private company limited by shares incorporated in England and Wales. The registered office is 123 Curtain Road, Shoreditch, London, EC2A 3BX.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements 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
Going concern
At 31 December 2023 the company had cash at bank of £380,860. Arnhold and Co. Limited, the company's immediate parent undertaking, has provided a loan facility of £2,800,000 with an additional £300,000 available to give further cash headroom if needed. The directors have reviewed forecasts for the period ended 31 December 2024 and beyond and consider the company to remain a going concern with no impact on the carrying value of the company's assets.true
Arnhold and Co Limited, has also provided a support letter to the directors confirming that it will provide continued financial support to the company in the event that the cash headroom proves to be insufficient.
As a consequence of the matters outlined above, the directors have a reasonable expectation that the company has adequate resources to meet its obligations and continue in operational existence for the foreseeable future and therefore have prepared these accounts on the going concern basis and consider that this is appropriate.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT and other sales related taxes.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer on dispatch of the goods, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.5
Intangible fixed assets other than goodwill
Intangible assets are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
CLAYBROOK STUDIO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
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:
Software
4 years on cost
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost 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:
Leasehold improvements
7 years on cost
Plant and machinery
5 years on cost
Fixtures and fittings
3 - 5 years on cost
Office equipment
3 - 7 years on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.7
Impairment of fixed assets
At each reporting period end date, the company 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).
Recoverable amount is the higher of fair value less costs to sell and value in use
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset 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.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition and is valued on a first in first out basis.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.9
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
CLAYBROOK STUDIO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including trade creditors, other creditors, group creditors and bank loans 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.
1.11
Equity instruments
Equity instruments 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.
1.12
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.
CLAYBROOK STUDIO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
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 profit and loss account, 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 when the company has 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.
1.13
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.14
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.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. The pension scheme assets are held separately in an independently administered fund.
1.16
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.
1.17
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
CLAYBROOK STUDIO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -
1.18
Equity-settled share-based payments are issued to certain employees of the Company. These are measured at fair value at the date of grant. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, where considered material, and is based on the estimate of shares that will eventually vest.
The fair value is measured by use of the Black-Scholes option pricing model. The expected life used in the model has been adjusted based on management's best estimate, for the effect of non-transferability, exercise restrictions and behavioural considerations.
The directors consider that the fair value of the share-based payments issued by the Company is not material to the financial statements and therefore no expenses have been recognised and no share based-payments disclosure has been presented.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
30
24
3
Intangible fixed assets
Other
£
Cost
At 1 January 2023 and 31 December 2023
90,668
Amortisation and impairment
At 1 January 2023
84,644
Amortisation charged for the year
1,520
At 31 December 2023
86,164
Carrying amount
At 31 December 2023
4,504
At 31 December 2022
6,024
CLAYBROOK STUDIO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
4
Tangible fixed assets
Leasehold improvements
Plant and machinery
Fixtures and fittings
Office equipment
Total
£
£
£
£
£
Cost
At 1 January 2023
97,816
116,617
190,587
65,013
470,033
Additions
53,779
41,506
5,141
100,426
Disposals
(24,365)
(24,365)
At 31 December 2023
97,816
146,031
232,093
70,154
546,094
Depreciation and impairment
At 1 January 2023
55,389
59,672
116,678
48,989
280,728
Depreciation charged in the year
14,266
20,284
35,882
8,650
79,082
Eliminated in respect of disposals
(24,365)
(24,365)
At 31 December 2023
69,655
55,591
152,560
57,639
335,445
Carrying amount
At 31 December 2023
28,161
90,440
79,533
12,515
210,649
At 31 December 2022
42,427
56,945
73,909
16,024
189,305
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
8,491
43,883
Other debtors
11,885
12,702
Prepayments and accrued income
219,370
248,375
239,746
304,960
2023
2022
Amounts falling due after more than one year:
£
£
Other debtors
32,400
32,400
Deferred tax asset (note 9)
660,000
692,000
692,400
724,400
Total debtors
932,146
1,029,360
CLAYBROOK STUDIO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
806,293
798,563
Amounts owed to group undertakings
20,083
23,670
Taxation and social security
243,628
184,217
Other creditors
12,078
11,957
Accruals and deferred income
284,653
317,246
1,366,735
1,335,653
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
2,800,000
2,800,000
The loan of £2,8000,000 is from Arnhold and Co. Limited, the immediate parent company, and bears interest of 2% above LIBOR per annum, but only when the company has operating profits. The loan is only repayable with the agreement of A shareholders and B1 shareholders. During the year the interest cost on this loan was £185,192 (2022 - £97,048).
8
Provisions for liabilities
2023
2022
£
£
20,000
20,000
A provision of £20,000 has been recognised for the expected costs in relation to restoring the rented property back to its original condition under the dilapidation clauses in the lease agreement.
9
Deferred taxation
The following deferred tax asset is recognised by the company and movements thereon:
Assets
Assets
2023
2022
Balances:
£
£
Accelerated capital allowances
(45,000)
(36,000)
Tax losses
705,000
728,000
660,000
692,000
CLAYBROOK STUDIO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Deferred taxation
(Continued)
- 9 -
2023
Movements in the year:
£
Asset at 1 January 2023
(692,000)
Charge to profit or loss
32,000
Asset at 31 December 2023
(660,000)
The deferred tax asset set out above relates to the utilisation of tax losses against future expected profits. This balance is offset by accelerated capital allowances.
10
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
21,630
18,890
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
A pension liability of £5,532 (2022 - £3,988) is outstanding at the year end and is included in accruals and deferred income.
11
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A shares of £1 each
700,000
700,000
700,000
700,000
B1 shares of £1 each
150,000
150,000
150,000
150,000
B2 Shares of £1 each
80,000
80,000
80,000
80,000
B3 Shares of £1 each
70,000
70,000
70,000
70,000
1,000,000
1,000,000
1,000,000
1,000,000
CLAYBROOK STUDIO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Called up share capital
(Continued)
- 10 -
Dividends and liquidation rights are payable dependent on the aggregate dividends paid to date. Set percentages are in place based on the historical dividends paid to date as follows:
Aggregate dividends paid to date Aggregate dividends paid to date are less than or equal to £10 are more than £10 million but Ordinary Million less than or equal to £20million
A 54.1% 58.6% B1 20.5% 17.0% B2 9.2% 8.2% B3 6.3% 6.3% C 9.9% 9.9%
If aggregate dividends paid to date are greater than £20 million, dividends will be payable based pro rata amongst the holders shares as if they constituted one and the same class.
To the extent that B3 shares and/or C shares authorised remain unissued, the proportionate entitlement of the respective shareholders holding A shares, B1 shares, B2 shares and if relevant B3 shares and C Shares shall all be adjusted proportionately.
12
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Karen Staley FCA BSc (Hons)
Statutory Auditor:
Geens Limited
Date of audit report:
2 April 2024
13
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
944,888
575,966
14
Related party transactions
CLAYBROOK STUDIO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Related party transactions
(Continued)
- 11 -
The company purchased goods from their immediate parent undertaking totalling £129,599 (2022: £171,339). There was £7,883 (2022: £21,687) of short term liabilities due to the parent company at the end of the year and a £2,800,000 loan (2022: 2,800,000). Interest payable on this loan was £185,192 in the year 2022: £97,048). The company sold goods to their immediate parent undertaking totalling £1,845 (2022: £6,062).
The company purchased goods and services from other companies within the group totalling £191,198 (2022: £129,382). There was £12,200 owed to these companies at the year end (2022 - £1,983).
15
Parent company
The directors consider the ultimate parent undertaking to be Arnhold Holdings Limited, a company incorporated in Hong Kong. The registered office of Arnhold Holdings Limited is 6th Floor Victoria Centre, 15 Watson Road, Hong Kong.
Arnhold Holdings Limited is the smallest and largest group in which the results of the company are consolidated. The consolidated financial statements of Arnhold Holdings Limited are available from its registered office.
The directors consider that the ultimate controlling parties are Michael John Green and Daniel George Green.
2023-12-312023-01-01false02 April 2024CCH SoftwareCCH Accounts Production 2023.300No description of principal activityThis audit opinion is unqualifiedMr A MandersMr D GreenMr G SimpsonMr R Whitakerfalse109383512023-01-012023-12-31109383512023-12-31109383512022-12-3110938351core:IntangibleAssetsOtherThanGoodwill2023-12-3110938351core:IntangibleAssetsOtherThanGoodwill2022-12-3110938351core:LeaseholdImprovements2023-12-3110938351core:PlantMachinery2023-12-3110938351core:FurnitureFittings2023-12-3110938351core:ComputerEquipment2023-12-3110938351core:LeaseholdImprovements2022-12-3110938351core:PlantMachinery2022-12-3110938351core:FurnitureFittings2022-12-3110938351core:ComputerEquipment2022-12-3110938351core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3110938351core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3110938351core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-3110938351core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3110938351core:CurrentFinancialInstruments2023-12-3110938351core:CurrentFinancialInstruments2022-12-3110938351core:ShareCapital2023-12-3110938351core:ShareCapital2022-12-3110938351core:RetainedEarningsAccumulatedLosses2023-12-3110938351core:RetainedEarningsAccumulatedLosses2022-12-3110938351core:ShareCapitalOrdinaryShares2023-12-3110938351core:ShareCapitalOrdinaryShares2022-12-3110938351bus:Director12023-01-012023-12-3110938351core:IntangibleAssetsOtherThanGoodwill2023-01-012023-12-3110938351core:ComputerSoftware2023-01-012023-12-3110938351core:LeaseholdImprovements2023-01-012023-12-3110938351core:PlantMachinery2023-01-012023-12-3110938351core:FurnitureFittings2023-01-012023-12-3110938351core:ComputerEquipment2023-01-012023-12-31109383512022-01-012022-12-3110938351core:IntangibleAssetsOtherThanGoodwill2022-12-3110938351core:LeaseholdImprovements2022-12-3110938351core:PlantMachinery2022-12-3110938351core:FurnitureFittings2022-12-3110938351core:ComputerEquipment2022-12-31109383512022-12-3110938351core:Non-currentFinancialInstruments2023-12-3110938351core:Non-currentFinancialInstruments2022-12-3110938351bus:PrivateLimitedCompanyLtd2023-01-012023-12-3110938351bus:SmallCompaniesRegimeForAccounts2023-01-012023-12-3110938351bus:FRS1022023-01-012023-12-3110938351bus:Audited2023-01-012023-12-3110938351bus:Director22023-01-012023-12-3110938351bus:Director32023-01-012023-12-3110938351bus:Director42023-01-012023-12-3110938351bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP