REGISTERED NUMBER: 09909630 (England and Wales) |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
CALLAN METHOD GROUP LIMITED |
REGISTERED NUMBER: 09909630 (England and Wales) |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
CALLAN METHOD GROUP LIMITED |
CALLAN METHOD GROUP LIMITED (REGISTERED NUMBER: 09909630) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Report of the Directors | 2 |
Consolidated Income Statement | 3 |
Consolidated Balance Sheet | 4 |
Company Balance Sheet | 6 |
Notes to the Consolidated Financial Statements | 8 |
CALLAN METHOD GROUP LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
ACCOUNTANTS: |
Chartered Accountants |
Russell House |
140 High Street |
Edgware |
HA8 7LW |
CALLAN METHOD GROUP LIMITED (REGISTERED NUMBER: 09909630) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
During 2023 the group continued to recover from the impact of the COVID pandemic, as its customer base of independent language schools continued to re-open and grow their physical premises while retaining some online students. The vast majority of pre-COVID customers have now re-opened. |
The directors attribute the group's business resilience to the diversity of its customer base in terms of geography and offline/online split, together with the flexibility of the group's cost base. |
The group undertook significant investment in its core product during 2023; the 12-Stage General English course was rewritten to update vocabulary and usage, and to align the structure more closely with the language competency framework which underpins most international examination standards. Several additional features and service offerings have also been introduced to support the course. This new edition project was the focus of a considerable amount of the group's resources including the product development, IT and customer relations teams. |
Despite this investment, Callan Method Organisation's turnover increased year on year and the group achieved both a positive operating profit and positive cash generation. The group has redeemed a further £110,000 of preference shares in the year thereby continuing to strengthen the Balance Sheet of the group. The core product has been strengthened and is now completely up-to-date. |
The prioritisation of IT and other resources into the new edition project, meant that Callan Online's growth ambitions had to be postponed. However, the cost base remains flexible, and margins have been maintained. |
DIRECTORS |
The directors during the year under review were: |
R J Case |
B E Case |
C Dukes |
H S Winetroube |
This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. |
ON BEHALF OF THE BOARD: |
CALLAN METHOD GROUP LIMITED (REGISTERED NUMBER: 09909630) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
TURNOVER | 1,486,810 | 1,441,914 |
Cost of sales | (694,861 | ) | (640,145 | ) |
GROSS PROFIT | 791,949 | 801,769 |
Administrative expenses | (721,115 | ) | (769,205 | ) |
OPERATING PROFIT | 4 | 70,834 | 32,564 |
Interest receivable and similar income | 2,262 | 771 |
73,096 | 33,335 |
Amounts written off investments | - | 11,473 |
73,096 | 44,808 |
Interest payable and similar expenses | 5 | (740 | ) | (989 | ) |
PROFIT BEFORE TAXATION | 72,356 | 43,819 |
Tax on profit | 6 | (6,984 | ) | (6,697 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 65,372 | 37,122 |
CALLAN METHOD GROUP LIMITED (REGISTERED NUMBER: 09909630) |
CONSOLIDATED BALANCE SHEET |
31 DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 8 | 447,591 | 477,430 |
Tangible assets | 9 | 7,995 | 7,574 |
Investments | 10 | - | - |
455,586 | 485,004 |
CURRENT ASSETS |
Stocks | 154,647 | 139,818 |
Debtors | 11 | 110,548 | 149,510 |
Cash at bank and in hand | 105,339 | 156,745 |
370,534 | 446,073 |
CREDITORS |
Amounts falling due within one year | 12 | (182,736 | ) | (212,317 | ) |
NET CURRENT ASSETS | 187,798 | 233,756 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 643,384 | 718,760 |
CREDITORS |
Amounts falling due after more than one year |
13 |
(14,167 |
) |
(24,167 |
) |
NET ASSETS | 629,217 | 694,593 |
CAPITAL AND RESERVES |
Called up share capital | 15 | 345,000 | 455,000 |
Retained earnings | 16 | 284,217 | 239,593 |
SHAREHOLDERS' FUNDS | 629,217 | 694,593 |
The company and the group are entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2023. |
The members have not required the company and the group to obtain an audit of its financial statements for the year ended 31 December 2023 in accordance with Section 476 of the Companies Act 2006. |
The directors acknowledge their responsibilities for: |
(a) | ensuring that the group keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company and the group as at the end of each financial year and of the group's profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company and the group. |
CALLAN METHOD GROUP LIMITED (REGISTERED NUMBER: 09909630) |
CONSOLIDATED BALANCE SHEET - continued |
31 DECEMBER 2023 |
The financial statements have been prepared 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 4 September 2024 and were signed on its behalf by: |
H S Winetroube - Director |
CALLAN METHOD GROUP LIMITED (REGISTERED NUMBER: 09909630) |
COMPANY BALANCE SHEET |
31 DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Debtors | 11 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 12 | ( |
) | ( |
) |
NET CURRENT (LIABILITIES)/ASSETS | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 15 |
Retained earnings | 16 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 21,210 | 35,231 |
The directors acknowledge their responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
CALLAN METHOD GROUP LIMITED (REGISTERED NUMBER: 09909630) |
COMPANY BALANCE SHEET - continued |
31 DECEMBER 2023 |
The financial statements were approved by the Board of Directors and authorised for issue on |
CALLAN METHOD GROUP LIMITED (REGISTERED NUMBER: 09909630) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
Callan Method Group Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Goodwill |
Tangible fixed assets |
Fixtures and fittings | - |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
CALLAN METHOD GROUP LIMITED (REGISTERED NUMBER: 09909630) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Investments |
Financial assets, other than investments, are initially measured at transaction price (including transaction costs) and subsequently held at cost, less any impairment. |
Financial liabilities and equity |
Financial liabilities and equity are classified according to the substance of the financial instrument's contractual |
obligations, rather than the financial instrument's legal form. Financial liabilities are initially measured at |
transaction price (including transaction costs) and subsequently held at amortised cost. |
Parent company disclosure exemptions |
In preparing the separate financial statements of the parent company, advantage has been taken of the following disclosure exemptions available in FRS 102: |
No cash flow statement has been presented for the parent company; and |
The following principal accounting policies have been applied: |
Basis of consolidation |
The consolidated financial statements present the result of Callan Method Group Limited and its subsidiaries as if they formed a single entity. Intercompany transactions and balances bet ween 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 value 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. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
31.12.23 | 31.12.22 |
£ | £ |
Depreciation - owned assets | 1,998 | 1,894 |
Goodwill amortisation | 29,839 | 29,839 |
CALLAN METHOD GROUP LIMITED (REGISTERED NUMBER: 09909630) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.23 | 31.12.22 |
£ | £ |
Bank interest | 740 | 989 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Current tax: |
UK corporation tax | 12,345 | 6,697 |
Over/Under provision | (5,361 | ) | - |
Tax on profit | 6,984 | 6,697 |
7. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
8. | INTANGIBLE FIXED ASSETS |
Group |
Patents |
and | Development |
Goodwill | licences | costs | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 |
and 31 December 2023 | 596,785 | 1 | 200,526 | 797,312 |
AMORTISATION |
At 1 January 2023 | 119,356 | - | 200,526 | 319,882 |
Amortisation for year | 29,839 | - | - | 29,839 |
At 31 December 2023 | 149,195 | - | 200,526 | 349,721 |
NET BOOK VALUE |
At 31 December 2023 | 447,590 | 1 | - | 447,591 |
At 31 December 2022 | 477,429 | 1 | - | 477,430 |
CALLAN METHOD GROUP LIMITED (REGISTERED NUMBER: 09909630) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
9. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
and |
fittings |
£ |
COST |
At 1 January 2023 | 17,436 |
Additions | 2,419 |
At 31 December 2023 | 19,855 |
DEPRECIATION |
At 1 January 2023 | 9,862 |
Charge for year | 1,998 |
At 31 December 2023 | 11,860 |
NET BOOK VALUE |
At 31 December 2023 | 7,995 |
At 31 December 2022 | 7,574 |
10. | FIXED ASSET INVESTMENTS |
Company |
Other |
investments |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
CALLAN METHOD GROUP LIMITED (REGISTERED NUMBER: 09909630) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
10. | FIXED ASSET INVESTMENTS - continued |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Trade debtors | 62,797 | 94,122 |
Amounts owed by group undertakings | - | - |
Other debtors | 47,751 | 55,388 |
110,548 | 149,510 |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 14) | 10,000 | 10,000 |
Trade creditors | 42,826 | 55,733 |
Amounts owed to group undertakings | - | - |
Taxation and social security | 24,606 | 20,461 |
Other creditors | 105,304 | 126,123 |
182,736 | 212,317 |
CALLAN METHOD GROUP LIMITED (REGISTERED NUMBER: 09909630) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
31.12.23 | 31.12.22 |
£ | £ |
Bank loans (see note 14) | 14,167 | 24,167 |
14. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
31.12.23 | 31.12.22 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 10,000 | 10,000 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 10,000 | 10,000 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 4,167 | 14,167 |
15. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.23 | 31.12.22 |
value: | £ | £ |
Ordinary | 1 | 125,000 | 125,000 |
Preference A shares | 1 | 220,000 | 330,000 |
345,000 | 455,000 |
16. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 January 2023 | 239,593 |
Profit for the year | 65,372 |
Dividends | (20,748 | ) |
At 31 December 2023 | 284,217 |
CALLAN METHOD GROUP LIMITED (REGISTERED NUMBER: 09909630) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
16. | RESERVES - continued |
Company |
Retained |
earnings |
£ |
At 1 January 2023 |
Profit for the year |
Dividends | ( |
) |
At 31 December 2023 |
17. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |