Company registration number 10612442 (England and Wales)
CLARKE AND PULMAN HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
CLARKE AND PULMAN HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr G A Clarke
Miss R S Clarke
Mr T A Clarke
Company number
10612442
Registered office
Langley Place
Burscough Industrial Estate
Burscough
Auditor
Barlow Andrews LLP
Carlyle House
78 Chorley New Road
Bolton
CLARKE AND PULMAN HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 21
CLARKE AND PULMAN 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 key performance indicators for the company are as follows:
2023
2022
£
£
Turnover
410,129
447,840
Profit before taxation
311,783
278,714
Net current liabilities
959,713
1,242,353
In Clarke and Pulman Holdings Limited there has been a decrease in rental income. This is due to the sale of Barkers yard within the year, meaning no rental income is being collected from this site.
The balance sheet remain strong, although the company is in a net current liabilities position, a large part of the creditors due within one year is in regard to amounts owed to group undertakings.
Principal risks and uncertainties
As the holding company of a trading subsidiary that deals mainly in tractor sales, the principal risks that impact the company are those that impact the main trading subsidiary. If there was to be an issue in the main trading subsidiary, Clarke and Pulman Limited, this would potentially have repercussions across the group, possibly having a knock on effect with Clarke and Pulman Holdings Limited.
Clarke and Pulman Limited trades within the agricultural sector.
Agriculture is, however, one of the few industries the banking sector has continued to support throughout the pandemic, and with the current economic uncertainty, we are positive this will remain unchanged.
We manage risk by the full-service offering provided by the Group. Over the last few years, the Group has invested in staff development and structure to maximise the returns from customers in all areas of the business. When one area of the business is experiencing a reduction in sales, this is offset by increases in other areas.
The continued growth at the Garstang depot also manages this risk as it has diversified the customer base across a wider range of market sectors.
Mr G A Clarke
Director
26 September 2024
CLARKE AND PULMAN HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
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 holding and investment asset company.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £28,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr G A Clarke
Miss R S Clarke
Mr T A Clarke
Future developments
The Company will continue to monitor rental charges, ensuring they are in line with market expectations.
Auditor
The auditor, Barlow Andrews LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr G A Clarke
Director
26 September 2024
CLARKE AND PULMAN HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and 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.
CLARKE AND PULMAN HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CLARKE AND PULMAN HOLDINGS LIMITED
- 4 -
Opinion
We have audited the financial statements of Clarke and Pulman Holdings Limited (the 'company') for the year 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:
give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
CLARKE AND PULMAN HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CLARKE AND PULMAN HOLDINGS LIMITED (CONTINUED)
- 5 -
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 or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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.
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.
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of holding and property investment companies;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and taxation legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
CLARKE AND PULMAN HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CLARKE AND PULMAN HOLDINGS LIMITED (CONTINUED)
- 6 -
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions; and
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or 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.
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
Christopher Harland
Senior Statutory Auditor
For and on behalf of Barlow Andrews LLP
26 September 2024
Chartered Accountants
Statutory Auditor
Carlyle House
78 Chorley New Road
Bolton
CLARKE AND PULMAN HOLDINGS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
410,129
447,840
Administrative expenses
(345,812)
(315,786)
Other operating income
10,000
Operating profit
4
74,317
132,054
Interest receivable and similar income
18,000
41,000
Interest payable and similar expenses
6
(66,429)
(68,340)
Fair value gains and losses on investment properties
10
285,895
174,000
Profit before taxation
311,783
278,714
Tax on profit
7
(72,086)
(53,169)
Profit for the financial year
239,697
225,545
The profit and loss account has been prepared on the basis that all operations are continuing operations.
CLARKE AND PULMAN HOLDINGS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
9
865,601
658,032
Investment property
10
1,860,000
2,521,395
Investments
11
209,397
209,397
2,934,998
3,388,824
Current assets
Debtors
13
111,190
121,819
Cash at bank and in hand
16,550
127,740
121,819
Creditors: amounts falling due within one year
14
(1,087,453)
(1,364,172)
Net current liabilities
(959,713)
(1,242,353)
Total assets less current liabilities
1,975,285
2,146,471
Creditors: amounts falling due after more than one year
15
(876,360)
(1,298,107)
Provisions for liabilities
Deferred tax liability
18
(269,919)
(231,055)
(269,919)
(231,055)
Net assets
829,006
617,309
Capital and reserves
Called up share capital
20
600
600
Other reserves
21
417,230
202,808
Profit and loss reserves
411,176
413,901
Total equity
829,006
617,309
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 26 September 2024 and are signed on its behalf by:
Mr G A Clarke
Director
Company registration number 10612442 (England and Wales)
CLARKE AND PULMAN HOLDINGS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Share capital
Other reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
600
202,808
254,356
457,764
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
225,545
225,545
Dividends
8
-
-
(66,000)
(66,000)
Balance at 31 December 2022
600
202,808
413,901
617,309
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
239,697
239,697
Dividends
8
-
-
(28,000)
(28,000)
Transfer of increase in investment property, net of deferred taxation
-
214,422
(214,422)
-
Balance at 31 December 2023
600
417,230
411,176
829,006
CLARKE AND PULMAN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
1
Accounting policies
Company information
Clarke and Pulman Holdings Limited is a private company limited by shares incorporated in England and Wales. The registered office is Langley Place, Burscough Industrial Estate, Burscough.
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, modified 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:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Clarke and Pulman Holdings Group Limited. These consolidated financial statements are available from its registered office, Langley Place, Burscough Industrial Estate Ormskirk, Lancashire.
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.
1.2
Prior period error
A property previously included in the financial statements as a tangible fixed asset has been reclassified as an investment property. This is due to the fact that the property is rented to a subsidiary undertaking and included within the financial statements at valuation. There has been no impact on the comparative statement of comprehensive income and no overall impact on total equity.
1.3
Going concern
The company depends on subsidiary undertaking, Clarke and Pulman Limited to meet its day to day working capital requirements. 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.true
CLARKE AND PULMAN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 11 -
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT.
Turnover represents income derived from rental charges. Income that is invoiced in advance or arrears is apportioned so that only that relating to the period of the financial statements is included in turnover.
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:
Plant and equipment
12.5% Straight line
Fixtures and fittings
15% Straight line
Motor vehicles
12.5% Straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.7
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.8
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
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.
CLARKE AND PULMAN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
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.
1.9
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and relate wholly to bank balances.
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, amounts owed by group undertakings and cash and bank balances, are measured at transaction price. Financial assets classified as receivable within one year are not amortised.
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 company 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 company after deducting all of its liabilities.
CLARKE AND PULMAN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
Basic financial 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.
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
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.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
CLARKE AND PULMAN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.15
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.
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.
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Rental income
410,129
447,840
2023
2022
£
£
Other revenue
Dividends received
18,000
41,000
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
9,275
8,620
Depreciation of owned tangible fixed assets
25,479
17,940
Depreciation of tangible fixed assets held under finance leases
103,491
100,591
(Profit)/loss on disposal of tangible fixed assets
(11,464)
14,339
CLARKE AND PULMAN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Directors
3
3
Other staff
4
3
Total
7
6
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
104,686
129,917
Social security costs
9,861
6,923
Pension costs
2,462
1,461
117,009
138,301
Included in the prior year wages and salaries cost is £53,259 which represents a recharge from a subsidiary undertaking. From 1 May 2022 the company maintained their own payroll system.
6
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
42,887
48,527
Interest on finance leases and hire purchase contracts
23,542
19,813
66,429
68,340
7
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
33,222
9,098
Deferred tax
Origination and reversal of timing differences
38,864
44,071
Total tax charge
72,086
53,169
CLARKE AND PULMAN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Taxation
(Continued)
- 16 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
311,783
278,714
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
73,333
52,956
Tax effect of expenses that are not deductible in determining taxable profit
297
(7,790)
Effect of revaluations of investments
(67,244)
(33,060)
Gain on capital disposal
80,061
41,063
Differences between capital allowances and depreciation
(14,361)
Taxation charge for the year
72,086
53,169
8
Dividends
2023
2022
£
£
Final paid
28,000
66,000
9
Tangible fixed assets
As restated
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost or valuation
At 1 January 2023
129,195
96,289
654,645
880,129
Additions
17,000
435,873
452,873
Disposals
(161,289)
(161,289)
At 31 December 2023
146,195
96,289
929,229
1,171,713
Depreciation and impairment
At 1 January 2023
8,338
49,247
164,512
222,097
Depreciation charged in the year
17,920
14,443
96,607
128,970
Eliminated in respect of disposals
(44,955)
(44,955)
At 31 December 2023
26,258
63,690
216,164
306,112
Carrying amount
At 31 December 2023
119,937
32,599
713,065
865,601
At 31 December 2022
120,857
47,042
490,133
658,032
CLARKE AND PULMAN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Tangible fixed assets
As restated
(Continued)
- 17 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2023
2022
£
£
Fixtures and fittings
35,201
25,542
Motor vehicles
666,430
479,198
701,631
504,740
10
Investment property
As restated
2023
£
Fair value
At 1 January 2023
2,521,395
Additions through external acquisition
32,710
Disposals
(980,000)
Net gains or losses through fair value adjustments
285,895
At 31 December 2023
1,860,000
The remaining investment property with a carrying value of £1,860,000 was revalued in October 2023 by Vas Valuation Group, independent valuers not connected with the company, on the basis of market value. The valuation conforms to International Valuation Standards. The directors consider this valuation appropriate in assessment of the fair value at 31 December 2023.
If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
2023
2022
£
£
Cost
1,313,970
1,915,273
Accumulated depreciation
-
-
Carrying amount
1,313,970
1,915,273
11
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
12
209,397
209,397
CLARKE AND PULMAN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
12
Subsidiaries
Details of the company's subsidiaries at 31 December 2023 are as follows:
Name of undertaking
Address
Class of
% Held
shares held
Direct
Clarke and Pulman (Burscough) Limited
1
Ordinary
100.00
Clarke and Pulman Limited
1
Ordinary
100.00
Garstang Tyre Services Limited
1
Ordinary
100.00
Rufford's Stores Limited
1
Ordinary
100.00
Ramages Limited
2
Ordinary
100.00
Burscough New Co Limited
1
Ordinary
100.00
Registered office addresses (all UK unless otherwise indicated):
1
Langley Place, Burscough Industrial Estate, Ormskirk
2
43 Liverpool Road North, Burscough
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,878
7,860
Amounts owed by group undertakings
108,229
113,959
Other debtors
1,083
111,190
121,819
14
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
16
27,481
75,858
Obligations under finance leases
17
171,672
129,497
Trade creditors
29,327
10,551
Amounts owed to group undertakings
512,128
990,218
Corporation tax
39,320
17,947
Other taxation and social security
187,268
3,925
Other creditors
111,657
127,576
Accruals and deferred income
8,600
8,600
1,087,453
1,364,172
Obligations under finance leases are secured on the assets which they relate to. The finance leases contracts primarily relate to motor vehicles and vans used in the company's business. The majority of the contracts include a small option to purchase fee at the end of the contract. Interest is charged on the hire purchase contracts at varying rates.
Bank loans are secured via a fixed asset and floating charge over the property of the company and group.
CLARKE AND PULMAN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
15
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
16
489,863
1,052,586
Obligations under finance leases
17
386,497
245,521
876,360
1,298,107
Obligations under finance leases are secured on the assets which they relate to. The finance leases contracts primarily relate to motor vehicles and vans used in the company's business. The majority of the contracts include a small option to purchase fee at the end of the contract. Interest is charged on the hire purchase contracts at varying rates.
Bank loans are secured via a fixed asset and floating charge over the property of the company and group.
16
Loans and overdrafts
2023
2022
£
£
Bank loans
517,344
1,119,436
Bank overdrafts
9,008
517,344
1,128,444
Payable within one year
27,481
75,858
Payable after one year
489,863
1,052,586
The long-term loans are secured by a legal first charge over 119 Garstang Road and by a fixed and floating charge over the assets of the company.
There is one bank loan remaining within the financial statements, two loans having been repaid in the current year. The final loan is being repaid on a monthly basis and is subject to variable interest rates. The loan is due to mature at 1 April 2027.
17
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
171,672
129,497
In two to five years
386,497
245,521
558,169
375,018
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
CLARKE AND PULMAN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
18
Deferred taxation
The following are the major deferred tax liabilities recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
141,138
87,250
Revaluations
128,781
143,805
269,919
231,055
2023
Movements in the year:
£
Liability at 1 January 2023
231,055
Charge to profit or loss
38,864
Liability at 31 December 2023
269,919
The deferred tax liability in regard to the accelerated capital allowances set out above, is expected to reverse over the useful economic life of the assets. In relation to the deferred tax liability on the investment property revaluations, the deferred tax will reverse on the sale of the property.
19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
2,462
1,461
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
20
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
60,000
60,000
600
600
The ordinary shares have full rights in the company with respect to voting, dividends and distributions.
21
Non-distributable profits reserve
Other reserves represents the cumulative revaluation gains in respect of the investment property, net of deferred taxation. This balance is not distributable.
CLARKE AND PULMAN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
22
Financial commitments, guarantees and contingent liabilities
The company has given a cross guarantee in respect of loan facilities provided to Clarke and Pulman Limited.
The company has also received a cross guarantee from Clarke and Pulman Limited in respect of its own loan facilities.
The amount outstanding under these facilities at 31 December 2023, excluding the amount included in creditors in this company, was £847,104.
23
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
At 31 December 2023 Clarke and Pulman Holdings Limited owed a company connected through common directorship £110,509 (2022: £124,695). There is no fixed date for repayment and no interest is being charged on the loan.
24
Ultimate controlling party
Clarke and Pulman Holdings Limited is a wholly owned subsidiary of Clarke and Pulman Holdings Group Limited. The results of Clarke and Pulman Holdings Limited are included in the consolidated financial statements of Clarke and Pulman Holdings Group Limited which are available from Langley Place, Burscough Industrial Estate, Ormskirk, Lancashire.
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