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Registered number: 06508131









CASTLEPEARL LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
CASTLEPEARL LIMITED
 
 
COMPANY INFORMATION


Directors
K K Shah 
A Shah 
S K Shah 




Registered number
06508131



Registered office
Unit 14a
Brunswick Industrial Park

Brunswick Way

London

N11 1JL




Independent auditor
Adler Shine LLP
Chartered Accountants & Statutory Auditor

Aston House

Cornwall Avenue

London

N3 1LF





 
CASTLEPEARL LIMITED
 

CONTENTS



Page
Group strategic report
 
1
Directors' report
 
2 - 3
Independent auditor's report
 
4 - 7
Consolidated statement of comprehensive income
 
8
Consolidated balance sheet
 
9 - 10
Company balance sheet
 
11 - 12
Consolidated statement of changes in equity
 
13 - 14
Company statement of changes in equity
 
15 - 16
Consolidated statement of cash flows
 
17 - 18
Notes to the financial statements
 
19 - 40


 
CASTLEPEARL LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The Group's principal activities during the year continued to be the purchasing and selling of motor vehicle parts to trade customers, as well as having an e-commerce presence. The Group has also invested in commercial and residential properties.

Business review
 
The directors are pleased to report a profit for the year considering the difficult trading conditions in respect to industry competition and the uncertain economic and financial climate.  

Principal risks and uncertainties
 
The Group is subject to a number of risks, key risks being competition and interest rate.
Competition risk is a daily occurrence which we carefully manage. Recently larger motor factors have had large injections of cash by private equity firms, their sole plan is to gain market share by under cutting smaller factors out of business. Directors believe they are managing this well by having open discussions with trade customers and working with them to gain trust and formulate a pricing structure.  
In regard to interest rate risk, the Group uses various financial instruments to ensure continued cash flow, adequate to underpin the continued trading and further development of the business. The existence of financial instruments exposes the Group to several financial risks. For example, the covenant headroom from the debt financing.

Financial key performance indicators
 
The Group's key financial and other performance indicators during the period were as follows:
    
Unit               2022    2022
Turnover   £'000    8,868    7,440
Gross Profit              £'000    4,279    3,772
Gross Margin  %    48.2    50.7

Other key performance indicators
 
The business relies on the Group’s relations with its trade customers. We believe our success is thanks to the team we have; who ensure we get the right product to the customer first time; this is beneficial to the customer as it means they are not wasting their time waiting for a replacement part.  


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





A Shah
Director

Date: 10 September 2024

Page 1

 
CASTLEPEARL LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The Directors present their report and the financial statements for the year ended 31 December 2023.

Directors' responsibilities statement

The Directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 the Group and of the profit or loss of the Group for that period.

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


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

make judgements 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 Group 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 the Group 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Directors

The Directors who served during the year were:

K K Shah 
A Shah 
S K Shah 

Disclosure of information to auditor

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 and the Group's auditor is 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 and the Group's auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Page 2

 
CASTLEPEARL LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Auditor

The auditor, Adler Shine LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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





A Shah
Director

Date: 10 September 2024

Page 3

 
CASTLEPEARL LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CASTLEPEARL LIMITED
 

Opinion


We have audited the financial statements of Castlepearl Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Consolidated statement of comprehensive income, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 Group's and of the parent Company's affairs as at 31 December 2023 and of the Group's profit 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group 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 Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.


Page 4

 
CASTLEPEARL LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CASTLEPEARL LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's report thereon. The Directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion 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 Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the Directors' report have 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.


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


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company 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.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 2, 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 Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 5

 
CASTLEPEARL LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CASTLEPEARL LIMITED (CONTINUED)


Auditor's responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group 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:

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, and then design and perform audit procedures responsive to those risks, including obtaining audit
evidence that is sufficient and appropriate to provide a basis for our opinion.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have:
• considered the nature of the industry and sectors, control environment and business performance;
• made enquires of management about their own identification and assessment of the risk of irregularities;
• performed audit work over the risk of management override of controls, including testing of journal entries
  and other adjustments for appropriateness, and reviewing accounting estimates for bias;
• undertaken appropriate sample based testing of bank transactions;
• identified and evaluated compliance with relevant laws and regulations and made enquiries of any instances
  of non-compliance;
• discussed matters among the audit engagement team regarding how and where fraud might occur in the
   financial statements and potential indicators of fraud.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities 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 Auditor's report.


Page 6

 
CASTLEPEARL LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CASTLEPEARL LIMITED (CONTINUED)


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 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.






Alexander Chrysaphiades FCA (Senior statutory auditor)
  
for and on behalf of
Adler Shine LLP
 
Chartered Accountants
Statutory Auditor
  
Aston House
Cornwall Avenue
London
N3 1LF

10 September 2024
Page 7

 
CASTLEPEARL LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

As restated
2023
2022
Note
£
£

  

Turnover
 4 
8,868,084
7,439,517

Cost of sales
  
(4,589,579)
(3,657,520)

Gross profit
  
4,278,505
3,781,997

Administrative expenses
  
(3,494,877)
(2,701,398)

Other operating income
 5 
75,500
78,834

Fair value movements
  
(65,000)
-

Operating profit
  
794,128
1,159,433

Interest receivable and similar income
 9 
2,257
668

Interest payable and similar expenses
 10 
(462,563)
(168,508)

Profit before taxation
  
333,822
991,593

Tax on profit
 11 
(57,971)
(214,552)

Profit for the financial year
  
275,851
777,041

Profit for the year attributable to:
  

Owners of the parent Company
  
275,851
777,041

  
275,851
777,041

There were no recognised gains and losses for 2023 or 2022 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 19 to 40 form part of these financial statements.

Page 8

 
CASTLEPEARL LIMITED
REGISTERED NUMBER: 06508131

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2023

As restated
2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 13 
493,748
-

Tangible assets
 14 
4,860,995
4,817,654

Investment property
 16 
3,838,570
3,903,570

  
9,193,313
8,721,224

Current assets
  

Stocks
 17 
1,654,103
1,696,106

Debtors: amounts falling due within one year
 18 
809,752
740,686

Cash at bank and in hand
 19 
82,714
104,430

  
2,546,569
2,541,222

Creditors: amounts falling due within one year
 20 
(1,796,031)
(1,206,410)

Net current assets
  
 
 
750,538
 
 
1,334,812

Total assets less current liabilities
  
9,943,851
10,056,036

Creditors: amounts falling due after more than one year
 21 
(5,723,900)
(5,840,609)

Provisions for liabilities
  

Deferred taxation
 25 
(749,795)
(779,122)

  
 
 
(749,795)
 
 
(779,122)

Net assets
  
3,470,156
3,436,305


Capital and reserves
  

Called up share capital 
 26 
135
135

Revaluation reserve
 27 
1,904,235
1,904,235

Capital redemption reserve
 27 
3,045
3,045

Investment property reserve
 27 
135,093
183,843

Profit and loss account
 27 
1,427,648
1,345,047

Equity attributable to owners of the parent Company
  
3,470,156
3,436,305

  
3,470,156
3,436,305


Page 9

 
CASTLEPEARL LIMITED
REGISTERED NUMBER: 06508131
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 10 September 2024.




A Shah
Director

The notes on pages 19 to 40 form part of these financial statements.

Page 10

 
CASTLEPEARL LIMITED
REGISTERED NUMBER: 06508131

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Investments
 15 
1,818,000
1,818,000

  
1,818,000
1,818,000

Current assets
  

Cash at bank and in hand
 19 
8
497

  
8
497

Creditors: amounts falling due within one year
 20 
(1,201,145)
(1,201,634)

Net current liabilities
  
 
 
(1,201,137)
 
 
(1,201,137)

Total assets less current liabilities
  
616,863
616,863

  

  

Net assets excluding pension asset
  
616,863
616,863

Net assets
  
616,863
616,863


Capital and reserves
  

Called up share capital 
 26 
135
135

Capital redemption reserve
 27 
45
45

Profit and loss account brought forward
  
616,683
619,795

Profit for the year
  
242,000
176,888

Other changes in the profit and loss account

  

(242,000)
(180,000)

Profit and loss account carried forward
  
616,683
616,683

  
616,863
616,863


Page 11

 
CASTLEPEARL LIMITED
REGISTERED NUMBER: 06508131
    
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 10 September 2024.


A Shah
Director

The notes on pages 19 to 40 form part of these financial statements.

Page 12

 

 
CASTLEPEARL LIMITED


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023



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


£
£
£
£
£
£


At 1 January 2023 (as previously stated)
135
3,045
1,816,221
365,607
1,491,099
3,676,107


Prior year adjustment - correction of error
-
-
88,014
(181,764)
(146,052)
(239,802)


At 1 January 2023 (as restated)
135
3,045
1,904,235
183,843
1,345,047
3,436,305



Comprehensive income for the year


Profit for the year
-
-
-
-
275,851
275,851

Total comprehensive income for the year
-
-
-
-
275,851
275,851



Contributions by and distributions to owners


Dividends: Equity capital
-
-
-
-
(242,000)
(242,000)


Transfer between reserves
-
-
-
(48,750)
48,750
-



Total transactions with owners
-
-
-
(48,750)
(193,250)
(242,000)



At 31 December 2023
135
3,045
1,904,235
135,093
1,427,648
3,470,156



The notes on pages 19 to 40 form part of these financial statements.

Page 13

 

 
CASTLEPEARL LIMITED


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022



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


£
£
£
£
£
£


At 1 January 2022 (as previously stated)
135
3,045
1,816,221
365,607
869,716
3,054,724


Prior year adjustment - correction of error
-
-
88,014
(181,764)
(121,710)
(215,460)


At 1 January 2022 (as restated)
135
3,045
1,904,235
183,843
748,006
2,839,264



Comprehensive income for the year


Profit for the year (as restated)
-
-
-
-
777,041
777,041

Total comprehensive income for the year
-
-
-
-
777,041
777,041



Contributions by and distributions to owners


Dividends: Equity capital
-
-
-
-
(180,000)
(180,000)



Total transactions with owners
-
-
-
-
(180,000)
(180,000)



At 31 December 2022
135
3,045
1,904,235
183,843
1,345,047
3,436,305



The notes on pages 19 to 40 form part of these financial statements.

Page 14

 
CASTLEPEARL LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£

At 1 January 2023
135
45
616,683
616,863


Comprehensive income for the year

Profit for the year
-
-
242,000
242,000
Total comprehensive income for the year
-
-
242,000
242,000


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(242,000)
(242,000)


Total transactions with owners
-
-
(242,000)
(242,000)


At 31 December 2023
135
45
616,683
616,863


The notes on pages 19 to 40 form part of these financial statements.

Page 15

 
CASTLEPEARL LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£

At 1 January 2022
135
45
619,795
619,975


Comprehensive income for the year

Profit for the year
-
-
176,888
176,888
Total comprehensive income for the year
-
-
176,888
176,888


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(180,000)
(180,000)


Total transactions with owners
-
-
(180,000)
(180,000)


At 31 December 2022
135
45
616,683
616,863


The notes on pages 19 to 40 form part of these financial statements.

Page 16

 
CASTLEPEARL LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
275,851
777,041

Adjustments for:

Amortisation of intangible assets
6,250
-

Depreciation of tangible assets
229,805
186,955

Loss on disposal of tangible assets
(10,525)
-

Interest paid
462,563
168,508

Interest received
(2,257)
(668)

Taxation charge
57,971
214,552

Decrease/(increase) in stocks
42,003
(418,168)

(Increase) in debtors
(48,198)
(185,074)

(Increase)/decrease in amounts owed by groups
(28,538)
-

Increase/(decrease) in creditors
449,258
(84,134)

Increase in amounts owed to groups
28,304
-

Net fair value losses recognised in P&L
65,000
-

Corporation tax (paid)
(203,312)
(392,795)

Net cash generated from operating activities

1,324,175
266,217


Cash flows from investing activities

Purchase of intangible fixed assets
(499,998)
-

Purchase of tangible fixed assets
(337,222)
(182,202)

Sale of tangible fixed assets
74,600
-

Purchase of investment properties
-
(3,373,570)

Interest received
2,257
668

Net cash from investing activities

(760,363)
(3,555,104)

Cash flows from financing activities

New secured loans
-
6,015,896

Repayment of loans
(197,740)
(2,896,512)

Repayment of/new finance leases
171,808
48,947

Dividends paid
(242,000)
(180,000)

Interest paid
(462,563)
(168,508)

Net cash used in financing activities
(730,495)
2,819,823

Net (decrease) in cash and cash equivalents
(166,683)
(469,064)

Cash and cash equivalents at beginning of year
8,471
477,535
Page 17

 
CASTLEPEARL LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


2023
2022

£
£


Cash and cash equivalents at the end of year
(158,212)
8,471


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
82,714
104,430

Bank overdrafts
(240,926)
(95,959)

(158,212)
8,471


Page 18

 
CASTLEPEARL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Castlepearl Limited is a private company limited by shares registered in England and Wales (company registration no. 06508131). The address of the registered office is given in the company information on the first page of these financial statements.

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 Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The financial statements are prepared in Pounds Sterling, which is the functional currency of the Group, 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 Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 January 2015.

Page 19

 
CASTLEPEARL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.4

Operating leases: the Group as lessor

Rental income from operating leases is credited to profit or loss on a straight-line basis over the lease term.

 
2.5

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.6

Interest income

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

 
2.7

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.

 
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 20

 
CASTLEPEARL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.9

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Group in independently administered funds.

 
2.10

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 balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet 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;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

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 balance sheet date.

Page 21

 
CASTLEPEARL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.11

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated statement of comprehensive income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.12

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.

Investment property rented to other group entities and accounted for under the cost model is stated at historical cost less accumulated depreciation and any accumulated impairment losses.

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

Depreciation is provided on the following basis:

Freehold property
-
Straight line over 50 years
Motor vehicles
-
25% reducing balance
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.

Page 22

 
CASTLEPEARL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.13

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.14

Investment property

Investment property is carried at fair value determined annually by external valuers 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 profit or loss.

 
2.15

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.16

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.17

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.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.18

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 23

 
CASTLEPEARL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.19

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.20

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Group's Balance sheet when the Group 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.
Page 24

 
CASTLEPEARL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.20
Financial instruments (continued)


Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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

 
2.21

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.

Page 25

 
CASTLEPEARL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In the application of the Group's accounting policies, which are described above, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The Directors consider the critical accounting policies where judgements and estimations have been applied relate to:
Tangible fixed assets 
Judgements have been made in relation to the lives of tangible fixed assets, in particular the valuation and the useful economic life and residual values. The Directors have concluded that the asset values and residual values are appropriate.
Property valuations
Investment properties are recognised at cost, and subsequently at fair value at each reporting date, with changes in fair value recognised in profit or loss. There is judgement involved in assessing the value of each property.
Stocks
Stocks are recognised at cost, and subsequently at the lower of the cost and net realisable value. There is judgement involved in assessing the level of inventory provision required in respect of slow-moving inventory.


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Sales
8,868,084
7,439,517

8,868,084
7,439,517


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
8,858,793
7,082,890

Rest of the world
9,291
356,627

8,868,084
7,439,517


Page 26

 
CASTLEPEARL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Other operating income

2023
2022
£
£

Net rents receivable
75,500
78,834



6.


Auditor's remuneration

During the year, the Group obtained the following services from the Company's auditor:


2023
2022
£
£

Fees payable to the Company's auditor for the audit of the consolidated and parent Company's financial statements
32,000
32,000


7.


Employees

Staff costs, including Directors' remuneration, were as follows:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
1,987,319
1,490,401
14,163
-


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


        2023
        2022
            No.
            No.







Directors
3
3



Employees
64
57

67
60

The Company has no employees other than the Directors, who did not receive any remuneration (2022 - £NIL)
Page 27

 
CASTLEPEARL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
14,163
-

14,163
-



9.


Interest receivable

2023
2022
£
£


Other interest receivable
2,257
668


10.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
462,563
168,508


11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
87,298
183,301

Adjustments in respect of previous periods
-
354


Total current tax
87,298
183,655

Deferred tax


Origination and reversal of timing differences
(29,327)
30,897

Total deferred tax
(29,327)
30,897


Taxation on profit on ordinary activities
57,971
214,552
Page 28

 
CASTLEPEARL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
11.Taxation (continued)


Factors affecting tax 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 25% (2022 - 19%). The differences are explained below:

As restated
2023
2022
£
£


Profit on ordinary activities before tax
333,822
991,593


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
83,455
188,403

Effects of:


Non-tax deductible amortisation of goodwill and impairment
1,563
-

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
3,619
3,603

Capital allowances for year in excess of depreciation
(30,032)
(8,705)

Adjustments to tax charge in respect of prior periods
-
354

Short term timing difference leading to an increase (decrease) in taxation
(29,327)
30,897

Book profit on chargeable assets
18,650
-

Changes in provisions leading to an increase (decrease) in the tax charge
16,250
-

Marginal relief
(6,207)
-

Total tax charge for the year
57,971
214,552


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

The main UK corporation tax rate is to change from 19% to 25% with effect from 1 April 2023. The deferred tax liability arising has been calculated using 25%.


12.


Dividends

2023
2022
£
£


Dividends paid on equity capital
242,000
180,000

Page 29

 
CASTLEPEARL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Intangible assets

Group and Company





Goodwill

£



Cost


At 1 January 2023
37,000


Additions
499,998



At 31 December 2023

536,998



Amortisation


At 1 January 2023
37,000


Charge for the year on owned assets
6,250



At 31 December 2023

43,250



Net book value



At 31 December 2023
493,748



At 31 December 2022
-



Page 30

 
CASTLEPEARL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Tangible fixed assets

Group






Freehold property
Motor vehicles
Fixtures & fittings
Total

£
£
£
£



Cost or valuation


At 1 January 2023 (as previously stated)
4,280,000
412,940
930,347
5,623,287


Prior Year Adjustment
925,000
-
-
925,000


At 1 January 2023 (as restated)
5,205,000
412,940
930,347
6,548,287


Additions
-
331,920
5,302
337,222


Disposals
-
(64,075)
-
(64,075)



At 31 December 2023

5,205,000
680,785
935,649
6,821,434



Depreciation


At 1 January 2023 (as previously stated)
610,079
235,626
738,876
1,584,581


Prior Year Adjustment
146,052
-
-
146,052


At 1 January 2023 (as restated)
756,131
235,626
738,876
1,730,633


Charge for the year on owned assets
131,679
63,974
27,436
223,089


Charge for the year on financed assets
-
6,717
-
6,717



At 31 December 2023

887,810
306,317
766,312
1,960,439



Net book value



At 31 December 2023
4,317,190
374,468
169,337
4,860,995



At 31 December 2022 (as restated)
4,448,869
177,314
191,471
4,817,654

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Motor vehicles
222,381
53,179

Page 31

 
CASTLEPEARL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Cost or valuation at 31 December 2023 is as follows:

Freehold property
£


At cost
3,652,329
At valuation:

Prior periods
1,552,671



5,205,000

If the freehold properties had not been included at valuation they would have been included under the historical cost convention as follows:

As restated
2023
2022
£
£

Group


Cost
3,652,329
3,652,329

Accumulated depreciation
(1,357,461)
(1,253,361)

Net book value
2,294,868
2,398,968


15.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2023
1,818,000



At 31 December 2023
1,818,000





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Class of shares

Holding

Headbuild Limited
Ordinary
100%
Pearlcastle Limited
Ordinary
100%

Page 32

 
CASTLEPEARL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Investment property

Group


Freehold investment property

£



Valuation


At 1 January 2023 (as previously stated)
4,953,570


Prior year adjustment
(1,050,000)


At 1 January 2023 (as restated)
3,903,570


Surplus on revaluation
(65,000)



At 31 December 2023
3,838,570

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

2023
2022
£
£

Revaluation reserves


At 1 January 2023
365,607
365,607

At 31 December 2023
365,607
365,607



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

As restated
2023
2022
£
£


Historic cost
3,658,446
3,658,446

Accumulated depreciation and impairments
(191,918)
(118,749)

3,466,528
3,539,697

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


Page 33

 
CASTLEPEARL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Stocks

Group
Group
2023
2022
£
£

Finished goods and goods for resale
1,654,103
1,696,106

1,654,103
1,696,106


The difference between purchase price or production cost of stocks and their replacement cost is not material.


18.


Debtors

Group
Group
2023
2022
£
£


Trade debtors
673,842
622,536

Amounts owed by group undertakings
28,538
-

Other debtors
39,344
47,014

Prepayments and accrued income
68,028
71,136

809,752
740,686



19.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
82,714
104,430
8
497

Less: bank overdrafts
(240,926)
(95,959)
-
-

(158,212)
8,471
8
497


Page 34

 
CASTLEPEARL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank overdrafts
240,926
95,959
-
-

Bank loans
193,912
196,637
-
-

Trade creditors
706,090
496,691
-
-

Amounts owed to group undertakings
28,304
-
1,192,645
1,193,134

Corporation tax
14,617
138,302
-
-

Other taxation and social security
211,024
186,668
-
-

Obligations under finance lease and hire purchase contracts
114,640
21,138
-
-

Other creditors
217,452
17,450
8,500
8,500

Accruals and deferred income
69,066
53,565
-
-

1,796,031
1,206,410
1,201,145
1,201,634


The bank overdraft is secured by a guarantee supported by a debenture creating a fixed and floating charge over the assets of the Group.


21.


Creditors: Amounts falling due after more than one year

Group
Group
2023
2022
£
£

Bank loans
5,616,158
5,811,173

Net obligations under finance leases and hire purchase contracts
107,742
29,436

5,723,900
5,840,609




Page 35

 
CASTLEPEARL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

22.


Loans


Analysis of the maturity of loans is given below:


Group
Group
2023
2022
£
£

Amounts falling due within one year

Bank loans
193,912
196,637

Amounts falling due 1-2 years

Bank loans
188,991
289,191

Amounts falling due 2-5 years

Bank loans
5,427,167
5,521,982


5,810,070
6,007,810


Bank loans are secured by a first legal charge over the Group's freehold and investment properties. Interest is payable at a margin of 3.1% above the Bank of England rate.


23.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2023
2022
£
£

Within one year
116,601
21,138

Between 1-5 years
107,742
18,171

Over 5 years
-
11,265

224,343
50,574

Leases are secured over the assets to which they relate.

Page 36

 
CASTLEPEARL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

24.


Financial instruments

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Financial assets

Financial assets measured at fair value through profit or loss
82,714
104,430
8
497




Financial assets measured at fair value through profit or loss comprise cash at bank and in hand.


Financial assets measured at amortised cost comprise of trade and other receivables and amounts owed by group undertakings.


Financial liabilities measured at amortised cost comprise of trade and other payables, accrued expenses, obligations under finance leases and bank overdrafts and loans. 

Page 37

 
CASTLEPEARL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

25.


Deferred taxation


Group



2023
2022


£

£






At beginning of year
(779,122)
(779,475)


Charged to profit or loss
29,327
(30,897)


Arising on business combinations
-
31,250



At end of year
(749,795)
(779,122)

Company


2023
2022






At end of year
-
-
The provision for deferred taxation is made up as follows:

Group
Group
2023
2022
£
£

Accelerated capital allowances
(70,021)
(83,098)

Investment property revaluation
(45,030)
(61,280)

Freehold property revaluation
(634,744)
(634,744)


26.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



135 (2022 - 135) Ordinary Shares shares of £1.00 each
135
135


Page 38

 
CASTLEPEARL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

27.


Reserves

Revaluation reserve

The revaluation reserve is the amount arising on the revaluation of freehold property, being the difference between the amount of the asset determined under the historical cost convention and the amount determined by the fair value of the asset, net of associated deferred tax. The revaluation reserve is a non-distributable reserve.

Capital redemption reserve

The capital redemption reserve represents shares transferred following the redemption or purchase of the Group's own shares.

Investment property revaluation reserve

The revaluation reserve is the amount arising on the revaluation of investment property, being the difference between the amount of the asset determined under the historical cost convention and the amount determined by the fair value of the asset, net of associated deferred tax. The Investment property revaluation reserve is a non-distributable reserve and forms part of the Group's retained earnings.

Profit & loss account

The profit and loss account is represented by retained earnings.


28.


Prior year adjustment

A property was previously included as Investment property, carried at fair value. The property is used by the group and ought to have been recognised within Tangible fixed assets at cost and depreciated. As such, the property has been reclassified to Tangible fixed assets. 
The impact to the financial statements as a result of the transfer is as follows:
1. Investment property at carrying value of £1,050,000 has been reclassified as Tangible fixed assets of £925,000. The difference of £125,000, being revaluation gains since 2017, as set out below.
2. Revaluation gains of £125,000 and associated deferred tax liabilities of £31,250 have been reversed;
3. £88,014 of revaluations gains (net of deferred tax) arising prior to 2017, that could be considered as part of deemed cost on transition to FRS102 have been transferred from Investment property revaluation reserve to Revaluation reserve
4. Recognition of acculumulated depreciation of £146,052, including a charge to the Profit & loss account in 2022 of £24,342 resulting in a restated profit for the year of £85,203 (previously £109,545).


29.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £49,258 (2022 - £38,939). No contributions were payable to the fund at either balance sheet date.

Page 39

 
CASTLEPEARL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

30.


Commitments under operating leases

At 31 December 2023 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2023
2022
£
£

Land and buildings

Not later than 1 year
125,292
72,492

Later than 1 year and not later than 5 years
461,460
362,460

Later than 5 years
187,271
332,255

774,023
767,207
Group
Group
2023
2022
£
£

Other operating leases

Not later than 1 year
5,824
5,824

Later than 1 year and not later than 5 years
303
6,143

6,127
11,967


31.


Related party transactions

During the year the Group paid dividends of £242,000 (2022 - £180,000) to its shareholders. 


32.


Controlling party

There was no overall controlling party throughout the year.

 
Page 40