Company registration number 12497445 (England and Wales)
CLARKE AND PULMAN HOLDINGS GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
CLARKE AND PULMAN HOLDINGS GROUP LIMITED
COMPANY INFORMATION
Directors
Mr G A Clarke
Miss R S Clarke
Mr T A Clarke
Company number
12497445
Registered office
Langley Place
Burscough Industrial Estate
Burscough
Auditor
Barlow Andrews LLP
Carlyle House
78 Chorley New Road
Bolton
CLARKE AND PULMAN HOLDINGS GROUP LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 30
CLARKE AND PULMAN HOLDINGS GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
At Clarke and Pulman we constantly strive to improve our performance and to increase profits. Our aim is to increase our market share within our area without compromising profit margins, customer service and maintaining cash flow within the business.
Fair review of the business and key performance indicators
The group experienced supply issues throughout most of 2022 with normal supply levels returning in quarter 4. The group have therefore seen improvements in this area in 2023. Throughout these difficulties, the group maintained its position within the agricultural market.
There has been an increase in gross margin from 7.0% to 8.7%, which is a positive increase. We are also satisfied with the overall increase in turnover of 12.4% from the prior year.
Our balance sheet remains strong with net current assets in excess of £1.9 million.
Principal risks and uncertainties
Agriculture is one of the few industries the banking sector continued to support throughout the pandemic.
The group maintains a strong relationship with their bankers, Virgin Money.
The weather is a key uncertainty our business faces. A large percentage of our customers rely on the weather to produce crops to sell and to feed their animals.
This risk is managed 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.
Future Developments
The group will continue to increase market share by organic growth, maximising spend per customer through customer service and range of services offered.
Mr G A Clarke
Director
26 September 2024
CLARKE AND PULMAN HOLDINGS GROUP 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 is that of a holding company.
The subsidiary undertakings are as follows;
Clarke and Pulman Holdings Limited - Holding and investment asset company
Clarke and Pulman Limited - Tractor dealership
Garstang Tyre Services Limited - Supply and fitting of vehicle tyres
Rufford's Stores Limited - Clothing retailer
Clarke and Pulman (Burscough) Limited - Dormant
Ramages Limited - DIY Store
Burscough New Co Limited - Dormant
Clarke JCB Limited - Dormant
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £18,000. 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
Auditor
The auditor, Barlow Andrews LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Matters of strategic importance
The truegroup 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. It has done so in respect of future developments.
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 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 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.
CLARKE AND PULMAN HOLDINGS GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
On behalf of the board
Mr G A Clarke
Director
26 September 2024
CLARKE AND PULMAN HOLDINGS GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
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.
CLARKE AND PULMAN HOLDINGS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CLARKE AND PULMAN HOLDINGS GROUP LIMITED
- 5 -
Opinion
We have audited the financial statements of Clarke and Pulman Holdings Group 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 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 group's and the parent company's affairs as at 31 December 2023 and of the group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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.
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 GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CLARKE AND PULMAN HOLDINGS GROUP 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 their 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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 parent 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 group through discussions with directors and other management;
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 group;
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.
We assessed the susceptibility of the group’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.
CLARKE AND PULMAN HOLDINGS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CLARKE AND PULMAN HOLDINGS GROUP LIMITED
- 7 -
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 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.
Christopher Harland
For and on behalf of
26 September 2024
Barlow Andrews LLP
Chartered Accountants
Statutory Auditor
Carlyle House
78 Chorley New Road
Bolton
BL1 4BY
CLARKE AND PULMAN HOLDINGS GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
33,904,046
30,156,528
Cost of sales
(30,964,133)
(28,042,255)
Gross profit
2,939,913
2,114,273
Administrative expenses
(2,201,255)
(1,993,175)
Other operating income
414,294
463,505
Operating profit
4
1,152,952
584,603
Interest payable and similar expenses
7
(615,500)
(221,924)
Other gains
26
-
178,964
Fair value gains and losses on investment properties
12
174,000
Profit before taxation
537,452
715,643
Tax on profit
8
(278,962)
(152,316)
Profit for the financial year
24
258,490
563,327
Other comprehensive income
Revaluation of tangible fixed assets
285,895
Tax relating to other comprehensive income
(71,473)
Total comprehensive income for the year
472,912
563,327
Profit for the financial year is all attributable to the owner of the parent company.
Total comprehensive income for the year is all attributable to the owner of the parent company.
CLARKE AND PULMAN HOLDINGS GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
10
530,022
614,858
Tangible assets
11
4,395,183
3,724,895
Investment property
12
980,000
4,925,205
5,319,753
Current assets
Stocks
15
13,299,881
11,535,714
Debtors
16
4,962,256
7,500,827
Cash at bank and in hand
268,925
142,024
18,531,062
19,178,565
Creditors: amounts falling due within one year
17
(16,583,174)
(17,097,033)
Net current assets
1,947,888
2,081,532
Total assets less current liabilities
6,873,093
7,401,285
Creditors: amounts falling due after more than one year
18
(2,822,889)
(3,919,684)
Provisions for liabilities
Deferred tax liability
21
(573,388)
(459,697)
(573,388)
(459,697)
Net assets
3,476,816
3,021,904
Capital and reserves
Called up share capital
23
100
100
Share premium account
24
1,999,901
1,999,901
Revaluation reserve
24
214,422
Profit and loss reserves
24
1,262,393
1,021,903
Total equity
3,476,816
3,021,904
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
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:
26 September 2024
Mr G A Clarke
Director
Company registration number 12497445 (England and Wales)
CLARKE AND PULMAN HOLDINGS GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
13
3,729,698
3,729,698
Current assets
Debtors
16
1
1
Creditors: amounts falling due within one year
17
(470,096)
(420,096)
Net current liabilities
(470,095)
(420,095)
Total assets less current liabilities
3,259,603
3,309,603
Creditors: amounts falling due after more than one year
18
(1,253,092)
(1,296,397)
Net assets
2,006,511
2,013,206
Capital and reserves
Called up share capital
23
100
100
Share premium account
24
1,999,901
1,999,901
Profit and loss reserves
24
6,510
13,205
Total equity
2,006,511
2,013,206
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 £11,305 (2022: £49,673 profit).
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:
26 September 2024
Mr G A Clarke
Director
Company registration number 12497445 (England and Wales)
CLARKE AND PULMAN HOLDINGS GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
100
1,999,901
499,576
2,499,577
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
-
563,327
563,327
Dividends
9
-
-
-
(41,000)
(41,000)
Balance at 31 December 2022
100
1,999,901
1,021,903
3,021,904
Year ended 31 December 2023:
Profit for the year
-
-
-
258,490
258,490
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
285,895
-
285,895
Tax relating to other comprehensive income
-
-
(71,473)
(71,473)
Total comprehensive income
-
-
214,422
258,490
472,912
Dividends
9
-
-
-
(18,000)
(18,000)
Balance at 31 December 2023
100
1,999,901
214,422
1,262,393
3,476,816
CLARKE AND PULMAN HOLDINGS GROUP LIMITED
COMPANY 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
100
1,999,901
4,532
2,004,533
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
49,673
49,673
Dividends
9
-
-
(41,000)
(41,000)
Balance at 31 December 2022
100
1,999,901
13,205
2,013,206
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
11,305
11,305
Dividends
9
-
-
(18,000)
(18,000)
Balance at 31 December 2023
100
1,999,901
6,510
2,006,511
CLARKE AND PULMAN HOLDINGS GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
1,613,050
1,173,567
Interest paid
(598,805)
(205,597)
Income taxes paid
(179,200)
(135,440)
Net cash inflow from operating activities
835,045
832,530
Investing activities
Purchase of tangible fixed assets
(503,795)
(915,285)
Proceeds from disposal of tangible fixed assets
299,249
535,349
Purchase of investment property
-
(6,000)
Proceeds from disposal of investment property
980,000
-
Loans made to directors
(226,586)
-
Repayment of loans
-
37,381
Other gains
178,964
Net cash generated from/(used in) investing activities
548,868
(169,591)
Financing activities
Repayment of borrowings
(60,000)
(60,000)
Repayment of bank loans
(986,013)
(330,884)
Payment of finance leases obligations
(400,885)
(778,155)
Dividends paid to equity shareholders
(18,000)
(41,000)
Net cash used in financing activities
(1,464,898)
(1,210,039)
Net decrease in cash and cash equivalents
(80,985)
(547,100)
Cash and cash equivalents at beginning of year
(15,109)
531,991
Cash and cash equivalents at end of year
(96,094)
(15,109)
Relating to:
Cash at bank and in hand
268,925
142,024
Bank overdrafts included in creditors payable within one year
(365,019)
(157,133)
CLARKE AND PULMAN HOLDINGS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information
Clarke and Pulman Holdings Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Langley Place, Burscough Industrial Estate, Burscough.
The group consists of Clarke and Pulman Holdings Group Limited and all of its subsidiaries, which are detailed in note 14.
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 the revaluation of freehold properties. 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:
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.
For the year ended 31 December 2023, Rufford's Stores Limited (registered number 11721969), Garstang Tyre Services Limited (registered number 10615249) and Ramages Limited (registered number 07110583) are exempt from the requirement of an audit, by virtue of s479A of the Companies Act 2006, for their individual accounts as Clarke and Pulman Holdings Group Limited, the parent undertaking, has provided a guarantee to the relevant subsidiary under S479C in respect of the year ended 31 December 2023.
1.2
Business combinations
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. Investments in subsidiaries are accounted for at cost less impairment.
The group financial statements have been prepared in accordance with the principles of acquisition accounting. The profits of subsidiaries have been included in the financial statements from the period of acquisition. Subsidiaries are consolidated in the group's financial statements from the date that control commences until the date that control ceases.
CLARKE AND PULMAN HOLDINGS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Clarke and Pulman Holdings Group Limited together with all entities controlled by the parent company (its subsidiaries).
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 and balances are eliminated on consolidation.
1.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future.
The group meets its day to day working capital requirements through an overdraft facility which is repayable on demand. A detailed review of the cashflow across the group is completed on a regular basis to ensure there is sufficient cash to meet commitments in each company as they fall due.
The group is profitable and continues to be profitable post year end. As at the date of signing there is no evidence to suggest that any of the banking facilities will be withdrawn. The group is within their overdraft limit and are deemed to have sufficient liquidity to continue as a going concern.
Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.5
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. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
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 services is recognised by reference to the stage of completion when the stage of completion.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
1.7
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.
CLARKE AND PULMAN HOLDINGS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
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:
Freehold land and buildings
Not depreciated
Leasehold improvements
10% straight line
Plant and equipment
12.5% - 33.3% straight line or over the lease
Fixtures and fittings
15% straight line
Computers
15% straight line
Motor vehicles
12.5% - 25% straight line or over the life of the lease, 12.5% reducing balance
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.
Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.
Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and losses are recognised in profit or loss.
1.8
Investment property
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.
1.9
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.
1.10
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.
CLARKE AND PULMAN HOLDINGS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.11
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.12
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.13
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.
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.
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.
CLARKE AND PULMAN HOLDINGS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
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
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.14
Equity instruments
Equity instruments issued by the group 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 group.
1.15
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.
1.16
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.
1.17
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
CLARKE AND PULMAN HOLDINGS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.18
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 leased asset are consumed.
1.19
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 group’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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Stock impairment
The directors have reviewed the items included in stock at year end and have made a provision against the total stock balance for items where the estimated sales price less costs to sell is lower than the cost incurred to bring the items into stock.
As part of this the group has employed a provision against parts older than 19 months of 5%, which increases to 25% depending on age. This is to account for their lower net realisable value due to their age.
A provision has been applied to certain wholegoods on the basis of value. A 100% provision has been applied to items with a value < £1,000, and the provision rates decrease as the value of goods increases.
CLARKE AND PULMAN HOLDINGS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Wholegoods
28,816,411
25,472,918
Maintenance services
1,363,784
1,224,426
Parts
2,728,998
2,347,326
Retail store
881,011
864,082
Other
113,842
247,776
33,904,046
30,156,528
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
32,734,259
27,940,353
Rest of Europe
1,169,787
2,216,175
33,904,046
30,156,528
2023
2022
£
£
Other revenue
Commissions received
56,919
63,785
Fees receivable
347,375
399,720
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(198)
(333)
Fees payable to the group's auditor for the audit of the group's financial statements
35,430
28,840
Depreciation of owned tangible fixed assets
220,317
188,545
Depreciation of tangible fixed assets held under finance leases
137,257
119,968
(Profit)/loss on disposal of tangible fixed assets
(84,548)
2,878
Amortisation of intangible assets
84,836
96,352
Operating lease charges
108,354
51,154
CLARKE AND PULMAN HOLDINGS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
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
Directors
3
3
3
3
Administration staff
12
13
-
-
Sales staff
18
17
-
-
Workshop staff
20
19
-
-
Parts staff
11
12
-
-
Total
64
64
3
3
Their aggregate remuneration comprised:
Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
1,748,195
1,608,483
Social security costs
157,838
155,030
-
-
Pension costs
32,052
30,926
1,938,085
1,794,439
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
132,960
106,271
7
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
89,297
83,662
Other interest on financial liabilities
441,163
96,310
Interest on finance leases and hire purchase contracts
68,345
25,625
Unwinding of discount on provisions
16,695
16,327
Total finance costs
615,500
221,924
CLARKE AND PULMAN HOLDINGS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
211,331
60,863
Adjustments in respect of prior periods
25,413
Total current tax
236,744
60,863
Deferred tax
Origination and reversal of timing differences
42,218
91,453
Total tax charge
278,962
152,316
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
537,452
715,643
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
126,409
135,972
Tax effect of expenses that are not deductible in determining taxable profit
22,141
15,262
Unutilised tax losses carried forward
3,102
Permanent capital allowances in excess of depreciation
24,938
(17,813)
Effect of revaluations of investments
(33,060)
Under/(over) provided in prior years
25,413
Dividend income
-
7,790
Gain on capital disposal
80,061
41,063
Taxation charge
278,962
152,316
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2023
2022
£
£
Deferred tax arising on:
Revaluation of property
71,473
-
CLARKE AND PULMAN HOLDINGS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
9
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
18,000
41,000
10
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
848,359
Amortisation and impairment
At 1 January 2023
233,501
Amortisation charged for the year
84,836
At 31 December 2023
318,337
Carrying amount
At 31 December 2023
530,022
At 31 December 2022
614,858
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
CLARKE AND PULMAN HOLDINGS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
11
Tangible fixed assets
Group
Freehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost or valuation
At 1 January 2023
1,541,395
793,419
537,390
105,726
1,114
1,708,526
4,687,570
Additions
32,710
381,617
24,998
5,630
511,713
956,668
Disposals
(316,424)
(316,424)
Revaluation
285,895
285,895
At 31 December 2023
1,860,000
1,175,036
562,388
111,356
1,114
1,903,815
5,613,709
Depreciation and impairment
At 1 January 2023
198,829
253,115
53,345
1,114
456,272
962,675
Depreciation charged in the year
90,085
65,769
15,598
186,122
357,574
Eliminated in respect of disposals
(101,723)
(101,723)
At 31 December 2023
288,914
318,884
68,943
1,114
540,671
1,218,526
Carrying amount
At 31 December 2023
1,860,000
886,122
243,504
42,413
1,363,144
4,395,183
At 31 December 2022
1,541,395
594,590
284,275
52,381
1,252,254
3,724,895
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
CLARKE AND PULMAN HOLDINGS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
Land and buildings with a carrying amount of £1,860,000 were revalued in October 2023 by Vas Valuation Group, independent valuers not connected with the group, 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. The historic cost of the land and buildings is £1,313,970.
These land and buildings are held in the individual accounts of Clarke and Pulman Holdings Limited as investment property. On consolidation this property is reclassified as freehold land and buildings.
12
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 January 2023 and 31 December 2023
980,000
-
Disposals
(980,000)
-
At 31 December 2023
-
-
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
3,729,698
3,729,698
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
3,729,698
Carrying amount
At 31 December 2023
3,729,698
At 31 December 2022
3,729,698
14
Subsidiaries
Details of the company's subsidiaries at 31 December 2023 are as follows:
CLARKE AND PULMAN HOLDINGS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Subsidiaries
(Continued)
- 26 -
Name of undertaking
Address
Class of
% Held
shares held
Direct
Indirect
Clarke and Pulman Limited
1
Ordinary
-
100.00
Rufford's Stores Limited
1
Ordinary
-
100.00
Clarke and Pulman Holdings Limited
1
Ordinary
100.00
-
Garstang Tyre Services Limited
1
Ordinary
-
100.00
Clarke and Pulman (Burscough) Limited
1
Ordinary
-
100.00
Burscough New Co Limited
1
Ordinary
-
100.00
Ramages Limited
2
Ordinary
-
100.00
Clarke JCB Limited
1
Ordinary
-
100.00
Registered office addresses (all UK unless otherwise indicated):
1
Langley Place, Burscough Industrial Estate, Ormskirk, L40 8JS
2
43 Liverpool Road North, Burscough, L40 0SA
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
13,299,881
11,535,714
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,309,390
5,589,278
Other debtors
2,345,159
1,595,366
1
1
Prepayments and accrued income
307,707
316,183
4,962,256
7,500,827
1
1
CLARKE AND PULMAN HOLDINGS GROUP LIMITED
NOTES TO THE GROUP 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
655,925
512,849
Obligations under finance leases
20
225,761
248,475
Trade creditors
8,414,516
9,210,179
Amounts owed to group undertakings
410,096
360,096
Corporation tax payable
228,020
170,476
Other taxation and social security
90,146
352,538
-
-
Other creditors
2,774,401
2,203,589
60,000
60,000
Accruals and deferred income
4,194,405
4,398,927
16,583,174
17,097,033
470,096
420,096
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
730,668
1,651,871
Obligations under finance leases
20
448,318
373,616
Other borrowings
19
494,404
554,404
494,404
554,404
Other creditors
1,149,499
1,339,793
758,688
741,993
2,822,889
3,919,684
1,253,092
1,296,397
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
1,021,574
2,007,587
Bank overdrafts
365,019
157,133
Other loans
494,404
554,404
494,404
554,404
1,880,997
2,719,124
494,404
554,404
Payable within one year
655,925
512,849
Payable after one year
1,225,072
2,206,275
494,404
554,404
The long-term loans are secured by fixed and floating charges over the group's assets. The director, Mr G A Clarke, has also provided a personal guarantee of £500,000 in respect of bank liabilities.
CLARKE AND PULMAN HOLDINGS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
20
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
225,761
248,475
In two to five years
448,318
373,616
674,079
622,091
-
-
Finance lease payments represent rentals payable by the company or group 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 five years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
21
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
444,607
315,892
Revaluations
128,781
143,805
573,388
459,697
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
459,697
-
Charge to profit or loss
113,691
-
Liability at 31 December 2023
573,388
-
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. The deferred tax liability on the property revaluation will reverse on the sale of the property.
CLARKE AND PULMAN HOLDINGS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
32,052
30,926
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
The holders of ordinary shares are entitled to full voting rights and are entitled to one vote per share at meetings of the company. All ordinary shares rank equally with regard to the company's residual assets.
24
Reserves
Share premium
The share premium account includes any premiums received on the issue of share capital. Any transaction costs associated with the issuing of shares are deducted from the share premium.
Revaluation reserve
The cumulative revaluation gains in respect of land and buildings, net of deferred taxation.
Equity reserve
The profit and loss reserve includes all current retained profit less equity dividends paid.
25
Related party transactions
At the year end £483,842 (2022: £400,065) was owed to the group by companies under common control.
26
Directors' transactions
The director, G A Clarke, has provided a personal guarantee of £500,000 in respect of bank liabilities.
At the year end the directors owed the group £226,586 (2022: £NIL). This amount is interest free and repayable on demand.
During the prior year, a director repaid funds loaned to him by the group and in turn provided funds to the group. The resulting amount due to the director from the group of £178,964 was written off in the prior year, and included within other gains.
Dividends totalling £18,000 (2022: £41,000) were paid in the period in respect of shares held by the company's directors.
CLARKE AND PULMAN HOLDINGS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
27
Controlling party
The company is under the control of Mr G A Clarke, director.
28
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
258,490
563,327
Adjustments for:
Taxation charged
278,962
152,316
Finance costs
615,500
221,924
(Gain)/loss on disposal of tangible fixed assets
(84,548)
2,878
Fair value gain on investment properties
(174,000)
Amortisation and impairment of intangible assets
84,836
96,352
Depreciation and impairment of tangible fixed assets
357,574
308,513
Other gains and losses
-
(178,964)
Decrease in provisions
(16,695)
(16,327)
Movements in working capital:
Increase in stocks
(1,764,167)
(1,057,325)
Decrease/(increase) in debtors
2,519,295
(2,146,792)
(Decrease)/increase in creditors
(636,197)
3,401,665
Cash generated from operations
1,613,050
1,173,567
29
Analysis of changes in net debt - group
1 January 2023
Cash flows
New finance leases
31 December 2023
£
£
£
£
Cash at bank and in hand
142,024
126,901
-
268,925
Bank overdrafts
(157,133)
(207,886)
-
(365,019)
(15,109)
(80,985)
-
(96,094)
Borrowings excluding overdrafts
(2,561,991)
1,046,013
-
(1,515,978)
Obligations under finance leases
(622,091)
400,885
(452,873)
(674,079)
(3,199,191)
1,365,913
(452,873)
(2,286,151)
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.200Mr G A ClarkeMiss R S ClarkeMr T A 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