Company registration number 14255319 (England and Wales)
TARPEY CERAMICS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
TARPEY CERAMICS LIMITED
COMPANY INFORMATION
Directors
J Steen
(Appointed 25 July 2022)
P Lewis
(Appointed 4 January 2024)
Company number
14255319
Registered office
Morvern House
Ormonde Drive
Denby
Ripley
Derbyshire
DE5 8LE
Auditor
UHY Hacker Young
14 Park Row
Nottingham
NG1 6GR
TARPEY CERAMICS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Statement of comprehensive income
8
Balance sheet
9 - 10
Statement of changes in equity
11
Notes to the financial statements
12 - 23
TARPEY CERAMICS LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 1 -

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

Review of the business

The company entered the ceramic core manufacturing market in January 2023. The first year of any start up business is always challenging but the group is starting to see the benefit of the investment made in a modern ceramic core manufacturing facility. The company enters 2024 in a strong position having introduced and developed many new products in the year. We expect the company be profitable by the end of 2024. EBITDA for the period is a loss of £365,810.

Principal risks and uncertainties

The principal risks to the business are those associated with the UK economy of constrained capacity causing some supply chain issues, increased labour costs and high interest rates. It has been a challenging environment to recruit the necessary staff to meet increasing demand. However, the company has been successful in its recruitment campaigns and is meeting our customers’ requirements. Strong cash generation in 2023 is reducing debt and therefore the impact of interest rate increases.

Key performance indicators

The group considers EBITDA, the order book and the cash position to be the Key Performance Indicators (KPIs). EBITDA has shown considerable improvement in the period. With a strong order book this trend is forecast to continue into 2025.

 

On behalf of the board

P Lewis
Director
24 September 2024
TARPEY CERAMICS LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 2 -

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

Principal activities

The principal activity of the company continued to be that of precision engineering of ceramic core bodies.

Results and dividends

The results for the period are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

J Steen
(Appointed 25 July 2022)
N France
(Appointed 25 July 2022 and resigned 2 February 2024)
P Lewis
(Appointed 4 January 2024)
Financial instruments
Liquidity risk

The company monitors its cash flow on a daily basis as part of its normal control procedures.

Interest rate risk

The company is exposed to interest rate risk as a result of the finance lease obligations and bank loans in place which are reviewed regularly and kept to a minimum.

Foreign currency risk

The company is exposed to foreign exchange risk as a result of trading in foreign currencies. To mitigate this risk the company has bank accounts in currencies other than GBP.

Credit risk

The company's principal financial assets are bank balances and trade debtors. The company’s credit risk is primarily attributable to its trade debtors. The company undertakes credit checks and monitoring as appropriate and has no significant concentration of uninsured credit risk.

Auditor

The auditor, UHY Hacker Young, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

TARPEY CERAMICS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 3 -
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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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

Statement of disclosure to auditor

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

Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
P Lewis
Director
24 September 2024
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TARPEY CERAMICS LIMITED
- 4 -
Opinion

We have audited the financial statements of Tarpey Ceramics Limited (the 'company') for the period ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The 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:

Basis for opinion

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

Conclusions relating to going concern

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

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TARPEY CERAMICS LIMITED (CONTINUED)
- 5 -

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:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and 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:

 

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 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.

INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TARPEY CERAMICS LIMITED (CONTINUED)
- 6 -
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.

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

Based on our understanding of the Company and the industry in which it operates we assessed the risks of the Company acting contrary to complying with laws and regulations, including fraud, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the Financial Statements, such as the Companies Act 2006. We evaluated management’s opportunities for fraudulent manipulation of the Financial Statements (including the risk of override of controls), and determined that the principal risks were related to inflated revenue and profit.

Audit procedures performed included:

 

There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the Financial Statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in 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.

INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TARPEY CERAMICS LIMITED (CONTINUED)
- 7 -
Andrew Timms
Senior Statutory Auditor
For and on behalf of UHY Hacker Young
26 September 2024
TARPEY CERAMICS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 8 -
Period
ended
31 December
2023
Notes
£
Turnover
3
730,838
Cost of sales
(589,238)
Gross profit
141,600
Administrative expenses
(653,368)
Operating loss
4
(511,768)
Interest receivable and similar income
6
46
Interest payable and similar expenses
7
(57,707)
Loss before taxation
(569,429)
Tax on loss
8
114,895
Loss for the financial period
(454,534)

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

TARPEY CERAMICS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
Notes
£
£
Fixed assets
Intangible assets
9
166,439
Tangible assets
10
1,657,551
1,823,990
Current assets
Stocks
11
15,155
Debtors
12
467,110
Cash at bank and in hand
28,527
510,792
Creditors: amounts falling due within one year
13
(1,374,885)
Net current liabilities
(864,093)
Total assets less current liabilities
959,897
Creditors: amounts falling due after more than one year
14
(783,863)
Provisions for liabilities
Deferred tax liability
16
30,567
(30,567)
Net assets
145,467
Capital and reserves
Called up share capital
17
100
Share premium account
18
599,901
Profit and loss reserves
18
(454,534)
Total equity
145,467

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

TARPEY CERAMICS LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
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:
P Lewis
Director
Company registration number 14255319 (England and Wales)
TARPEY CERAMICS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 25 July 2022
-
0
-
0
-
0
-
Period ended 31 December 2023:
Issue of share capital
17
100
599,901
-
600,001
Loss and total comprehensive income
-
-
(454,534)
(454,534)
Balance at 31 December 2023
100
599,901
(454,534)
145,467
TARPEY CERAMICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information

Tarpey Ceramics Limited is a private company limited by shares incorporated in England and Wales. The registered office is Morvern House, Ormonde Drive, Denby, Ripley, Derbyshire, DE5 8LE.

1.1
Reporting period

The company was incorporated on 25 July 2022 therefore the current period represents the first period of account from incorporation to the reporting date of 31 December 2023. There is no comparative period as a result.

1.2
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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

This 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:

 

 

Tarpey Ceramics Limited is a subsidiary of Morvern Group Limited and the results of Tarpey Ceramics Limited are included in the consolidated financial statements of Morvern Group Limited which are available from its registered office, Morvern House, Ormonde House, Denby, Ripley, Derbyshire, DE5 8LE.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

TARPEY CERAMICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.3
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. The company has the support of group to ensure resources are available as and when required.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

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

1.5
Intangible fixed assets other than goodwill

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

 

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

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

Development costs
1-2 years
1.6
Tangible fixed assets

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

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

Leasehold land and buildings
10 years
Plant and equipment
4 to 10 years
Fixtures, fittings and equipment
4 to 5 years

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

TARPEY CERAMICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, 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.

1.10
Financial instruments

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

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

TARPEY CERAMICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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.

1.11
Equity instruments

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

1.12
Taxation

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

Current tax

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

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.

 

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 .

TARPEY CERAMICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.13
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.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

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

 

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

TARPEY CERAMICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 17 -
3
Turnover and other revenue
2023
£
Turnover analysed by geographical market
UK
482,803
Europe
248,035
730,838
2023
£
Other revenue
Interest income
46
4
Operating loss
2023
Operating loss for the period is stated after charging/(crediting):
£
Research and development costs
(166,439)
Depreciation of owned tangible fixed assets
145,958
Operating lease charges
116,915
5
Employees

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

2023
Number
Management
2

Their aggregate remuneration comprised:

2023
£
Wages and salaries
675,715
TARPEY CERAMICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 18 -
6
Interest receivable and similar income
2023
£
Interest income
Interest on bank deposits
46
7
Interest payable and similar expenses
2023
£
Interest on bank overdrafts and loans
21
Interest on finance leases and hire purchase contracts
57,686
57,707
TARPEY CERAMICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 19 -
8
Taxation
2023
£
Current tax
UK corporation tax on profits for the current period
(145,462)
Deferred tax
Origination and reversal of timing differences
30,567
Total tax credit
(114,895)

The 22.14% rate used in these accounts is a hybrid rate due to the main rate of Corporation Tax having increased from 19.00% to 25.00% from 1 April 2023. The differences are explained below:

The actual (credit)/charge for the period can be reconciled to the expected credit for the period based on the profit or loss and the standard rate of tax as follows:

2023
£
Loss before taxation
(569,429)
Expected tax credit based on the standard rate of corporation tax in the UK of 22.14%
(126,072)
Tax effect of expenses that are not deductible in determining taxable profit
(13)
Effect of change in corporation tax rate
3,493
Permanent capital allowances in excess of depreciation
(63)
Research and development tax credit
7,760
Taxation credit for the period
(114,895)
TARPEY CERAMICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 20 -
9
Intangible fixed assets
Development costs
£
Cost
At 25 July 2022
-
0
Additions
166,439
At 31 December 2023
166,439
Amortisation and impairment
At 25 July 2022 and 31 December 2023
-
0
Carrying amount
At 31 December 2023
166,439
10
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures, fittings and equipment
Total
£
£
£
£
Cost
At 25 July 2022
-
0
-
0
-
0
-
0
Additions
232,589
1,503,873
67,047
1,803,509
At 31 December 2023
232,589
1,503,873
67,047
1,803,509
Depreciation and impairment
At 25 July 2022
-
0
-
0
-
0
-
0
Depreciation charged in the period
22,555
111,307
12,096
145,958
At 31 December 2023
22,555
111,307
12,096
145,958
Carrying amount
At 31 December 2023
210,034
1,392,566
54,951
1,657,551
11
Stocks
2023
£
Raw materials and consumables
15,155
TARPEY CERAMICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 21 -
12
Debtors
2023
Amounts falling due within one year:
£
Trade debtors
229,323
Corporation tax recoverable
145,462
Other debtors
86,507
Prepayments and accrued income
5,818
467,110

The trade debtors balance includes £229,323 which is covered by an invoice discounting arrangement. These assets have not been derecognised from the balance sheet because the company remains ultimately responsible for any unpaid balances, so the directors consider significant risks to have been retained.

 

Included within other debtors an invoice discounting facility of £35,362 which is secured by way of a fixed and floating charge over the assets of the company.

13
Creditors: amounts falling due within one year
2023
Notes
£
Obligations under finance leases
15
254,085
Trade creditors
33,793
Amounts owed to group undertakings
1,047,067
Accruals and deferred income
39,940
1,374,885

The obligations under finance leases are secured on the assets to which they relate.

14
Creditors: amounts falling due after more than one year
2023
Notes
£
Obligations under finance leases
15
783,863
TARPEY CERAMICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 22 -
15
Finance lease obligations
2023
Future minimum lease payments due under finance leases:
£
Within one year
294,611
In two to five years
915,011
1,209,622
Less: future finance charges
(171,674)
1,037,948
16
Deferred taxation

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

Liabilities
2023
Balances:
£
Accelerated capital allowances
129,133
Tax losses
(98,566)
30,567
2023
Movements in the period:
£
Liability at 25 July 2022
-
Charge to profit or loss
30,567
Liability at 31 December 2023
30,567
17
Share capital
2023
2023
Ordinary share capital
Number
£
Issued and fully paid
A1 ordinary shares of £1 each
60
60
A2 ordinary shares of £1 each
40
40
100
100
TARPEY CERAMICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
17
Share capital
(Continued)
- 23 -

The holders of A1 ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company.

 

The holders of A2 ordinary shares rank pari passu with holders of A1 ordinary shares.

18
Reserves
Share premium

Includes the premium on issue of equity shares, net of any issue costs.

Profit and loss reserves

This compromises the loss for the period as set out in the company statement of changes in equity.

19
Related party transactions

During the period, the company made purchases of £75,115 (2022 - £nil), received sales transferred of £69,919 and recharged costs of £2,489,755 (2022 - £nil) from a company under common control.

 

As at the period end, the company had amounts owed to a company under common control of £1,047,067 (2022 - £nil).

20
Ultimate controlling party

Morvern Group Limited is the ultimate and immediate parent company, by virtue of owning the majority of the allotted share capital of the company.

 

The company is controlled by the directors.

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