Company Registration No. 05547907 (England and Wales)
POINT BLANK HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
POINT BLANK HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr R A Cowan
Mr M J Brookes
Ms T A Oberman
Mrs D Brookes
Secretary
Mr M J Brookes
Company number
05547907
Registered office
c/o Jack Ross Chartered Accountants
Barnfield House
The Approach
Blackfriars Road
Manchester
M3 7BX
Auditor
PM+M Solutions for Business LLP
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
Business address
23/28 Penn Street
London
N1 5DL
POINT BLANK HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 30
POINT BLANK HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Fair review of the business

The directors of the group are pleased with the results for the year ended 31 December 2023 which illustrate manageable growth in line with the forecast and continuing financial stability. The administrative expenses are also below the budgeted expenses showing the business continues to control expenditure effectively. The award from the Office for Students (OfS) of specialist arts funding has provided meaningful support to the School as it prepares for the future.

Principal risks and uncertainties

A subsidiary of the group (Point Blank Limited) has a Collegiate agreement in place with Middlesex University. Students receive a Middlesex award on successful completion of their course.

 

The majority of the group's revenue is generated from London and online and is secured before each term start (October, January, April and June) by virtue of the recruitment process. Most students have contracts in place by the start of each academic term.

 

The principal risk in the business is student achievement and retention rates. If these were to fall significantly, this could result in a decline in student numbers and potential losses could be incurred. This risk is managed by the delivery of focused student support and engagement across the schools, managed through use of the Virtual Learning Environment (VLE).

 

The retention and achievement rates are strong and are measured on a regular basis and reviewed by both the School Managers and the Directors. This process is also supported by both Quality Assurance and Student Support teams, who also review the information and follow up and resolve issues as they occur.

 

Point Blank Limited became an Approved (Fee Cap) provider in July 2020. The School has continually invested in key areas of staffing in order to fulfil its obligations under its Access and Participation Plan (APP) which sits at the centre of the Approved (Fee Cap) application.

 

OfS grant funding became applicable from July 2020 and so 2023 is the third full year of reporting the grant for 22/23. The grant is key in enabling the School to fund the resources needed to expand all areas of student support, e.g. in recruitment of new members of staff in key roles such as teaching, widening participation management and student liaison. This has contributed to the School's ability to meet the commitment to enrol students from diverse backgrounds who may need additional support, both financially and otherwise, to seek a successful career in the music industry.

 

The major risk to the School is stagnation in student numbers. The School will complete the expansion of its campus, a project that began in 2023, in the next financial year. This expansion will allow the School to cater to an increased number of students whilst providing world class facilities. The School has a growth mindset and is therefore investing in growth which we expect to see come to further fruition in the coming years.

 

There still continues to be a risk to the number of international student numbers resulting from Brexit, as it is now more difficult for international students applying for visas.

Development and performance

The principal activity of the company is that of a holding company and the principal activity of the group is the provision of higher education courses in music. With focus on continued expansion and development of both the London and Online schools.

POINT BLANK HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Key performance indicators

The group's key financial and other performance indicators during the year were as follows:

 

 

              2023     2022        Variance

Turnover         £11,637k     £10,230k     +13.8%

Gross profit margin     49.7%     46.0%         +3.7%

EBITDA             £3,897k     £2,838k        +37.3%

On behalf of the board

Mr R A Cowan
Director
24 September 2024
POINT BLANK HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Principal activities

The principal activity of the company continued to be that of a non-trading holding company.

 

The principal activity of the group is the provision of higher education courses in music.

Directors

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

Mr R A Cowan
Mr M J Brookes
Ms T A Oberman
Mrs D Brookes
Results and dividends

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

Ordinary dividends were paid amounting to £1,022,000 (2022: £1,121,100). The directors do not recommend payment of a further dividend.

Financial instruments

The Group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the Group has sufficient liquid resources to meet the operating needs of the businesses.

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.

Research and development

The Group undertakes research and development activities in order to continually enhance and improve it's digital management systems and e-learning platform, the Virtual Learning Environment (VLE).

Auditor

PM+M Solutions for Business LLP were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

POINT BLANK HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

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

Strategic report

The group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.true

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company and group is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company and group is aware of that information.

On behalf of the board
Mr R A Cowan
Director
24 September 2024
POINT BLANK HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF POINT BLANK HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of Point Blank Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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.

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 report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

POINT BLANK HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF POINT BLANK HOLDINGS LIMITED
- 6 -
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 strategic report and the directors' report.

 

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

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 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 company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

Extent to which the audit was considered capable of detecting irregularities, including fraud
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.
POINT BLANK HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF POINT BLANK HOLDINGS LIMITED
- 7 -
Identifying and assessing potential risks related to irregularities

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 following:

 

 

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of commercial income, posting of unusual journals and complex transactions; and manipulating the Group's performance profit measures and other key performance indicators to meet remuneration targets and externally communicated targets. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

 

We also obtained an understanding of the legal and regulatory frameworks that the Group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, employment law, health and safety regulations, pension legislation and tax legislation.

POINT BLANK HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF POINT BLANK HOLDINGS LIMITED
- 8 -
Audit response to risks identified

Our procedures to respond to risks identified included the following:

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our Report

This report is made solely to the company’s members in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an 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 for our audit work, for this report, or for the opinions we have formed.

Christopher Johnson FCA (Senior Statutory Auditor)
Date:
for and on behalf of PM+M Solutions for Business LLP
24 September 2024
Chartered Accountants
Statutory Auditor
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
POINT BLANK HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
2
11,636,915
10,229,583
Cost of sales
(5,851,800)
(5,519,230)
Gross profit
5,785,115
4,710,353
Administrative expenses
(3,758,129)
(3,269,070)
Other operating income
1,574,528
1,099,759
Operating profit
3
3,601,514
2,541,042
Interest receivable and similar income
7
51,192
25,241
Interest payable and similar expenses
8
(634)
-
0
Amounts written off investments
9
49,266
(65,071)
Profit before taxation
3,701,338
2,501,212
Taxation
10
(921,082)
(591,419)
Profit for the financial year
2,780,256
1,909,793
Other comprehensive income
Currency translation differences
25,596
(38,985)
Total comprehensive income for the year
2,805,852
1,870,808
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

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

POINT BLANK HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
6,886,921
3,422,571
Investments
13
574,738
525,454
7,461,659
3,948,025
Current assets
Debtors
16
1,265,515
1,328,744
Cash at bank and in hand
4,557,144
3,971,416
5,822,659
5,300,160
Creditors: amounts falling due within one year
17
(4,292,670)
(2,925,261)
Net current assets
1,529,989
2,374,899
Total assets less current liabilities
8,991,648
6,322,924
Creditors: amounts falling due after more than one year
18
(368,439)
-
Provisions for liabilities
20
(674,831)
(249,330)
Accruals and Deferred income
21
(449,442)
(358,510)
Net assets
7,498,936
5,715,084
Capital and reserves
Called up share capital
23
127
127
Share premium account
74,975
74,975
Profit and loss reserves
7,423,834
5,639,982
Total equity
7,498,936
5,715,084
The financial statements were approved by the board of directors and authorised for issue on 24 September 2024 and are signed on its behalf by:
24 September 2024
Mr R A Cowan
Director
POINT BLANK HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
13
1,100,377
377
Current assets
Cash at bank and in hand
183,499
507,453
Creditors: amounts falling due within one year
17
(1,093,657)
(274,656)
Net current (liabilities)/assets
(910,158)
232,797
Total assets less current liabilities
190,219
233,174
Accruals and Deferred income
21
(10,500)
(10,380)
Net assets
179,719
222,794
Capital and reserves
Called up share capital
23
127
127
Share premium account
74,975
74,975
Profit and loss reserves
104,617
147,692
Total equity
179,719
222,794

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £978,925 (2022 - £1,098,339 profit).

The financial statements were approved by the board of directors and authorised for issue on 24 September 2024 and are signed on its behalf by:
24 September 2024
Mr R A Cowan
Director
Company Registration No. 05547907
POINT BLANK HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
127
74,975
4,890,274
4,965,376
Year ended 31 December 2022:
Profit for the year
-
-
1,909,793
1,909,793
Other comprehensive income:
Currency translation differences
-
-
(38,985)
(38,985)
Total comprehensive income for the year
-
-
1,870,808
1,870,808
Dividends
11
-
-
(1,121,100)
(1,121,100)
Balance at 31 December 2022
127
74,975
5,639,982
5,715,084
Year ended 31 December 2023:
Profit for the year
-
-
2,780,256
2,780,256
Other comprehensive income:
Currency translation differences on overseas subsidiaries
-
-
25,596
25,596
Total comprehensive income for the year
-
-
2,805,852
2,805,852
Dividends
11
-
-
(1,022,000)
(1,022,000)
Balance at 31 December 2023
127
74,975
7,423,834
7,498,936
POINT BLANK HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
127
74,975
170,453
245,555
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
1,098,339
1,098,339
Dividends
11
-
-
(1,121,100)
(1,121,100)
Balance at 31 December 2022
127
74,975
147,692
222,794
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
978,925
978,925
Dividends
11
-
-
(1,022,000)
(1,022,000)
Balance at 31 December 2023
127
74,975
104,617
179,719
POINT BLANK HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
5,985,320
2,668,578
Interest paid
(634)
-
0
Income taxes paid
(670,281)
(274,509)
Net cash inflow from operating activities
5,314,405
2,394,069
Investing activities
Purchase of tangible fixed assets
(3,782,567)
(1,011,872)
Proceeds on disposal of tangible fixed assets
428
39,176
Purchase of fixed asset investments
(18)
(24)
Proceeds from other investments and loans
-
457,639
Interest received
44,367
19,951
Dividends received
6,825
5,290
Net cash used in investing activities
(3,730,965)
(489,840)
Financing activities
Dividends paid to equity shareholders
(1,022,000)
(1,121,100)
Net cash used in financing activities
(1,022,000)
(1,121,100)
Net increase in cash and cash equivalents
561,440
783,129
Cash and cash equivalents at beginning of year
3,967,841
3,223,697
Effect of foreign exchange rates
25,596
(38,985)
Cash and cash equivalents at end of year
4,554,877
3,967,841
Relating to:
Cash at bank and in hand
4,557,144
3,971,416
Bank overdrafts included in creditors payable within one year
(2,267)
(3,575)
POINT BLANK HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information

Point Blank Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is c/o Jack Ross Chartered Accountants, Barnfield House, The Approach, Blackfriars Road, Manchester, M3 7BX.

 

The group consists of Point Blank Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

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

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

POINT BLANK HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -

The consolidated financial statements incorporate those of Point Blank Holdings Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Turnover represents the total invoice value, excluding value added tax, of sales made during the period, after adjusting for income relating to future courses.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually 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.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
5% / 20% / 2% straight line
Fixtures, fittings & equipment
3 years straight line / 25% reducing balance
Studio equipment
25% reducing balance

Assets in the course of construction of £3,448,654 are not depreciated. There are also fixtures and fittings of £266,608 and studio equipment of £354,488 which will be depreciated once the studio has been built.

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 recognised in the profit and loss account.

POINT BLANK HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.6
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.7
Impairment of fixed assets

At each reporting period end date, the group 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) 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. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
Cash and cash equivalents

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

1.9
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

POINT BLANK HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 group after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, 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.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

POINT BLANK HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Other financial liabilities

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.10
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax 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 if, and only if, there is 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.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

 

 

 

POINT BLANK HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to income 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 lease asset are consumed.

1.15
Government grants

Government grants are recognised in accordance with the accrual model within the Statement of Comprehensive Income when the School is entitled to the income on a systematic basis over the periods in which the School recognises the related costs for which the grant is intended to compensate.

1.16
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 are included in the profit and loss account for the period.

2
Turnover and other revenue

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

2023
2022
£
£
Turnover
Sale of Services
11,461,507
9,924,119
Sale of Equipment
23,452
39,765
Advertising
1,288
7,231
Franchise Income
147,804
253,001
Royalties Income
2,864
5,467
11,636,915
10,229,583
Other significant revenue
Interest income
44,367
19,951
Dividends received
6,825
5,290
Grants received
1,574,528
1,099,759
Turnover analysed by geographical market
2023
2022
£
£
United Kingdom
10,215,608
8,528,097
Europe
43,798
36,376
Rest of the World
1,377,509
1,665,110
11,636,915
10,229,583
POINT BLANK HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
3
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
66,665
(67,590)
Government grants
(1,574,528)
(1,099,759)
Depreciation of owned tangible fixed assets
295,097
291,130
(Profit)/loss on disposal of tangible fixed assets
(6)
5,721
Operating lease charges
324,620
357,948
4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
4,620
4,620
Audit of the financial statements of the company's subsidiaries
24,286
28,848
28,906
33,468
5
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Management
7
6
-
-
Admissions
13
20
-
-
Marketing
16
14
-
-
Education
141
126
-
-
Office
10
10
-
-
187
176
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
4,666,849
4,372,711
-
0
-
0
Social security costs
439,768
419,550
-
0
-
0
Pension costs
92,711
86,185
-
0
-
0
5,199,328
4,878,446
-
0
-
0
POINT BLANK HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
45,353
40,000
Company pension contributions to defined contribution schemes
8,000
6,990
53,353
46,990

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).

7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
44,349
1,058
Other interest income
18
18,893
Total interest revenue
44,367
19,951
Other income from investments
Dividends received
6,825
5,290
Total income
51,192
25,241

Investment income includes the following:

Interest on financial assets not measured at fair value through profit or loss
44,349
1,058
Dividends from financial assets measured at fair value through profit or loss
6,825
5,290
8
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Other interest
634
-
Total finance costs
634
-
0
9
Amounts written off investments
2023
2022
£
£
Fair value gains/(losses) on financial instruments
Change in value of financial assets held at fair value through profit or loss
49,266
(65,071)
POINT BLANK HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
491,382
468,296
Foreign current tax on profits for the current period
4,199
13,683
Total current tax
495,581
481,979
Deferred tax
Origination and reversal of timing differences
385,012
61,696
Changes in tax rates
40,489
47,744
Total deferred tax
425,501
109,440
Total tax charge
921,082
591,419

On 1 April 2023, the standard rate of corporation tax increased from 19% to 25% on profits in excess of £250,000. The effective rate of corporation tax used is a blend of the two rates based on the number of days each tax rate applied.

The actual charge for the year can be reconciled to the expected charge based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
3,701,338
2,501,212
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022 - 19.00%)
870,575
475,230
Tax effect of expenses that are not deductible in determining taxable profit
6,935
5,447
Tax effect of income not taxable in determining taxable profit
(216)
-
0
Gains not taxable
-
0
1,087
Effect of revaluations of investments
(11,588)
12,363
Effect of overseas tax rates
(5,274)
30,018
Dividend income
(1,605)
(1,005)
Deferred tax
425,501
109,440
Depreciation add back
42,594
35,008
Capital allowances
(371,047)
(45,279)
Other tax adjustments
(34,793)
(30,890)
Taxation charge for the year
921,082
591,419
POINT BLANK HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
11
Dividends
2023
2022
£
£
Final paid
1,022,000
1,121,100
12
Tangible fixed assets
Group
Leasehold land and buildings
Assets under construction
Fixtures, fittings & equipment
Studio equipment
Total
£
£
£
£
£
Cost
At 1 January 2023
3,040,400
269,139
646,985
817,072
4,773,596
Additions
12,794
3,179,515
298,506
291,752
3,782,567
Disposals
-
0
-
0
-
0
(428)
(428)
Exchange adjustments
(6,840)
-
0
(8,210)
(13,490)
(28,540)
At 31 December 2023
3,046,354
3,448,654
937,281
1,094,906
8,527,195
Depreciation and impairment
At 1 January 2023
589,611
-
0
325,688
435,726
1,351,025
Depreciation charged in the year
119,405
-
0
100,595
75,097
295,097
Eliminated in respect of disposals
-
0
-
0
-
0
(6)
(6)
Exchange adjustments
(908)
-
0
(1,538)
(3,396)
(5,842)
At 31 December 2023
708,108
-
0
424,745
507,421
1,640,274
Carrying amount
At 31 December 2023
2,338,246
3,448,654
512,536
587,485
6,886,921
At 31 December 2022
2,450,789
269,139
321,297
381,346
3,422,571
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
238,498
377
Loans to subsidiaries
14
-
0
-
0
861,879
-
0
Listed investments
574,738
525,454
-
0
-
0
574,738
525,454
1,100,377
377
Listed investments carrying amount
574,738
525,454
-
-
POINT BLANK HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Fixed asset investments
(Continued)
- 25 -
Fixed asset investments revalued

Fixed asset investments are valued with reference to market value.

Movements in fixed asset investments
Group
Investments other than loans
£
Cost or valuation
At 1 January 2023
525,454
Additions
18
Valuation changes
49,266
At 31 December 2023
574,738
Carrying amount
At 31 December 2023
574,738
At 31 December 2022
525,454
Movements in fixed asset investments
Company
Shares in group undertakings
Loans to group undertakings
Total
£
£
£
Cost or valuation
At 1 January 2023
377
-
377
Additions
238,121
861,879
1,100,000
At 31 December 2023
238,498
861,879
1,100,377
Carrying amount
At 31 December 2023
238,498
861,879
1,100,377
At 31 December 2022
377
-
377
POINT BLANK HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
14
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Point Blank Los Angeles Inc
United States of America
Training Courses in the Music Industry
Ordinary
100.00
Point Blank Limited
England & Wales
Training Courses in the Music Industry
Ordinary
100.00
Point Blank Music Limited
England & Wales
Music Publishing
Ordinary
100.00
Point Blank Properties Limited
England & Wales
Investment Property
Ordinary
100.00
Point Blank International Limited
England & Wales
Training Courses in the Music Industry
Ordinary
100.00

Point Blank Music Limited, Point Blank Properties Limited and Point Blank International Limited are exempt from the requirements of the Companies Act 2006 relating to the audit of subsidiary companies by virtue of Section 479A of that Act.

 

As at 31st December 2023, there are options over the share capital of Point Blank Los Angeles Inc.

15
Financial instruments
Group
Company
2023
2022
2023
2022
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
1,017,354
1,112,937
861,879
-
Equity instruments measured at cost less impairment
574,738
525,454
-
-
Carrying amount of financial liabilities
Measured at amortised cost
3,353,567
2,496,617
1,093,657
273,896
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
865,587
775,997
-
0
-
0
Other debtors
155,947
30,713
-
0
-
0
Prepayments and accrued income
243,981
522,034
-
0
-
0
1,265,515
1,328,744
-
-
POINT BLANK HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
2,267
3,575
-
0
-
0
Payments received on account
2,199,137
2,118,001
-
0
-
0
Trade creditors
1,094,458
268,195
-
0
960
Amounts due to group undertakings
-
0
-
0
1,093,657
272,936
Corporation tax payable
153,576
328,276
-
0
760
Other taxation and social security
113,131
100,368
-
-
Deferred income
21
672,396
-
0
-
0
-
0
Other creditors
57,705
106,846
-
0
-
0
4,292,670
2,925,261
1,093,657
274,656
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Deferred income
21
368,439
-
0
-
0
-
0
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank overdrafts
2,267
3,575
-
0
-
0
Payable within one year
2,267
3,575
-
0
-
0
20
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
674,831
249,330
The company has no deferred tax assets or liabilities.
POINT BLANK HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Deferred taxation
(Continued)
- 28 -
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
249,330
-
Charge to profit or loss
385,012
-
Effect of change in tax rate - profit or loss
40,489
-
Liability at 31 December 2023
674,831
-

The deferred tax liability set out above in relation to capital allowances is not expected to fully reverse within 12 months as it relates to accelerated capital allowances that are not expected to mature within the same period.

21
Accruals and Deferred income
Group
Company
2023
2022
2023
2022
£
£
£
£
Arising from government grants
1,040,835
-
-
-
Accruals
416,293
305,521
10,500
10,380
Deferred income
33,149
52,989
-
-
1,490,277
358,510
10,500
10,380

Deferred income is included in the financial statements as follows:

Current liabilities
672,396
-
0
-
0
-
0
Non-current liabilities
368,439
-
0
-
0
-
0
Shown as deferred income on the face of the balance sheet
449,442
358,510
10,500
10,380
1,490,277
358,510
10,500
10,380
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
92,711
86,185

The company operates a defined contribution retirement benefit scheme for all qualifying employees. The assets of the scheme are held separately from those of the company. The company contributes a specified percentage of payroll costs to the retirement benefit scheme to fund the benefits. The only obligation of the company with respect to the scheme is to make the specified contributions.

POINT BLANK HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
23
Share capital
Group and company
2023
2022
Ordinary share capital
£
£
Issued and fully paid
102 Ordinary 'A' shares of £1 each
102
102
25 Ordinary 'B' shares of £1 each
25
25
127
127
24
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
637,092
255,777
-
-
Between two and five years
2,219,622
653,505
-
-
In over five years
1,480,192
-
-
-
4,336,906
909,282
-
-
25
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2023
2022
2023
2022
£
£
£
£
Acquisition of tangible fixed assets
1,195,307
-
-
-
26
Related party transactions
Transactions with related parties

The only key management personnel are the directors and their remuneration is disclosed in note 6.

 

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

Included in other debtors is an amount owed from the directors of £487 (2022: £Nil). This loan is provided interest free, unsecured and repayable on demand.

POINT BLANK HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
26
Related party transactions
(Continued)
- 30 -

The company has taken advantage of the exemption in FRS 102 from disclosing related party transactions with fellow members of the group which are wholly owned subsidiaries.

27
Directors' transactions

Dividends totalling £1,022,000 (2022 - £1,121,100) were paid in the year in respect of shares held by the company's directors.

28
Ultimate controlling party

The ultimate controlling party is the director, Mr R Cowan, by virtue of his interest in the share capital of Point Blank Holdings Limited.

29
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
2,780,256
1,909,793
Adjustments for:
Taxation charged
921,082
591,419
Finance costs
634
-
0
Investment income
(51,192)
(25,241)
(Gain)/loss on disposal of tangible fixed assets
(6)
5,721
Depreciation and impairment of tangible fixed assets
295,097
291,130
Foreign exchange gains on cash equivalents
22,698
(4,894)
Amounts written back to/(off) investments
(49,266)
65,071
Increase in deferred income
90,932
6,122
Movements in working capital:
Decrease/(increase) in debtors
63,888
(443,875)
Increase in creditors
870,362
273,332
Increase in deferred income
1,040,835
-
Cash generated from operations
5,985,320
2,668,578
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