Company registration number 04637003 (England and Wales)
CLARKE AND PULMAN LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
CLARKE AND PULMAN LIMITED
COMPANY INFORMATION
Directors
Mr G A Clarke
Miss R S Clarke
Mr T A Clarke
Secretary
Mr G A Clarke
Company number
04637003
Registered office
Langley Place
Burscough Industrial Estate
Burscough
Auditor
Barlow Andrews LLP
Carlyle House
78 Chorley New Road
Bolton
CLARKE AND PULMAN 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 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 company experienced supply issues throughout most of 2022 with normal supply levels returning in quarter 4. The company have therefore seen improvements in this area in 2023. Throughout these difficulties, the company maintained its position within the agricultural market.

 

Wholegood sales have increased by 13.2% and parts sales have increased by 21.9%. This growth has been generated through an increase in trade in the United Kingdom. With an overall increase in turnover of 13.3% we are satisfied with this movement.

 

Administrative expenses have experienced a 15.2% increase. There has been a general increase in expenses across the board with wages and salaries, rent, motor running expenses and advertising expenditure all increasing. With inflation now beginning to settle we are hopeful that such significant increases will also begin to settle.

 

Our balance sheet remains strong with net current assets in excess of £3 million.

Principal risks and uncertainties

Agriculture is one of the few industries the banking sector has continued to support after the pandemic.

 

The company 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 company. Over the last few years, the company 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 company will continue to increase market share by organic growth, maximising spend per customer through customer service and range of services offered.

On behalf of the board

Mr G A Clarke
Director
26 September 2024
CLARKE AND PULMAN 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 tractor dealership.

Results and dividends

The results for the year are set out on page 7.

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 company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company'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 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 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:

 

 

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 LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CLARKE AND PULMAN LIMITED
- 4 -
Opinion

We have audited the financial statements of Clarke and Pulman 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:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

CLARKE AND PULMAN LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CLARKE AND PULMAN 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:

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.

 

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

 

To address the risk of fraud through management bias and override of controls, we:

 

CLARKE AND PULMAN LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CLARKE AND PULMAN LIMITED (CONTINUED)
- 6 -

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.

Use of our 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 LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
32,498,177
28,688,006
Cost of sales
(30,145,989)
(27,185,392)
Gross profit
2,352,188
1,502,614
Administrative expenses
(1,717,775)
(1,492,137)
Other operating income
404,294
465,039
Operating profit
4
1,038,707
475,516
Interest payable and similar expenses
7
(532,376)
(137,257)
Other gains
23
-
178,964
Profit before taxation
506,331
517,223
Tax on profit
8
(169,985)
(79,364)
Profit for the financial year
336,346
437,859

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

CLARKE AND PULMAN LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
10
33,336
43,336
Tangible assets
11
1,532,293
1,487,454
1,565,629
1,530,790
Current assets
Stocks
12
12,881,063
11,033,870
Debtors
13
6,213,037
9,069,299
Cash at bank and in hand
5,905
1,905
19,100,005
20,105,074
Creditors: amounts falling due within one year
14
(15,983,090)
(16,635,145)
Net current assets
3,116,915
3,469,929
Total assets less current liabilities
4,682,544
5,000,719
Creditors: amounts falling due after more than one year
15
(693,437)
(1,325,180)
Provisions for liabilities
Deferred tax liability
18
(214,360)
(219,138)
(214,360)
(219,138)
Net assets
3,774,747
3,456,401
Capital and reserves
Called up share capital
20
30,000
30,000
Profit and loss reserves
3,744,747
3,426,401
Total equity
3,774,747
3,456,401

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 04637003 (England and Wales)
CLARKE AND PULMAN LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
30,000
3,029,542
3,059,542
Year ended 31 December 2022:
Profit and total comprehensive income
-
437,859
437,859
Dividends
9
-
(41,000)
(41,000)
Balance at 31 December 2022
30,000
3,426,401
3,456,401
Year ended 31 December 2023:
Profit and total comprehensive income
-
336,346
336,346
Dividends
9
-
(18,000)
(18,000)
Balance at 31 December 2023
30,000
3,744,747
3,774,747
CLARKE AND PULMAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
1
Accounting policies
Company information

Clarke and Pulman 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. The principal accounting policies 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:

 

 

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.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

 

The company 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 company 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.

1.3
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.

CLARKE AND PULMAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 11 -

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 the provision of services is recognised by reference to the stage of completion.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses 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 ten years.

1.5
Tangible fixed assets

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

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

Leasehold improvements
10% Straight line
Plant and equipment
12.5% - 33.3% Straight line or over the term of the lease
Motor vehicles
12.5% - 25% Straight line or over the term of the lease

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
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

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.

1.7
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.

1.8
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.

CLARKE AND PULMAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
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 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.

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
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.

CLARKE AND PULMAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.10
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.

1.11
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.

1.12
Retirement benefits

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

1.13
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.

1.14
Foreign exchange

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

2
Judgements and key sources of estimation uncertainty

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

 

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

CLARKE AND PULMAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 14 -
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 the 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 company 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.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Wholegoods
28,816,411
25,472,918
Parts
2,241,849
1,839,496
Workshop
642,121
539,114
Warranty
721,663
685,312
Other
76,133
151,166
32,498,177
28,688,006
2023
2022
£
£
Other significant revenue
Commissions receivable
56,919
65,319
Fees receivable
347,375
399,720
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
31,328,390
26,471,831
Rest of Europe
1,169,787
2,216,175
32,498,177
28,688,006
CLARKE AND PULMAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(198)
(333)
Fees payable to the company's auditor for the audit of the company's financial statements
26,155
20,220
Depreciation of owned tangible fixed assets
185,873
166,822
Depreciation of tangible fixed assets held under finance leases
33,766
19,377
Profit on disposal of tangible fixed assets
(73,084)
(11,461)
Amortisation of intangible assets
10,000
10,000
Operating lease charges
172,002
125,464
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
Administration staff
8
10
Machinery sales representatives
10
10
Parts sales staff
7
8
Workshop staff
20
19
Total
48
50

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,409,103
1,253,522
Social security costs
128,971
129,639
Pension costs
25,463
25,059
1,563,537
1,408,220
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
132,960
106,270
CLARKE AND PULMAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
7
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
46,410
35,135
Other interest on financial liabilities
441,163
96,310
Interest on finance leases and hire purchase contracts
44,803
5,812
532,376
137,257
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
149,350
37,839
Adjustments in respect of prior periods
25,413
-
0
Total current tax
174,763
37,839
Deferred tax
Origination and reversal of timing differences
(4,778)
41,525
Total tax charge
169,985
79,364

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
506,331
517,223
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
119,089
98,272
Tax effect of expenses that are not deductible in determining taxable profit
10,328
6,645
Group relief
-
0
(6,409)
Permanent capital allowances in excess of depreciation
15,155
(19,144)
Under/(over) provided in prior years
25,413
-
0
Taxation charge for the year
169,985
79,364
9
Dividends
2023
2022
£
£
Final paid
18,000
41,000
CLARKE AND PULMAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
10
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
100,003
Amortisation and impairment
At 1 January 2023
56,667
Amortisation charged for the year
10,000
At 31 December 2023
66,667
Carrying amount
At 31 December 2023
33,336
At 31 December 2022
43,336
11
Tangible fixed assets
Leasehold improvements
Plant and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2023
790,619
374,200
1,053,881
2,218,700
Additions
281,707
5,298
75,840
362,845
Disposals
-
0
-
0
(155,135)
(155,135)
At 31 December 2023
1,072,326
379,498
974,586
2,426,410
Depreciation and impairment
At 1 January 2023
198,817
240,669
291,760
731,246
Depreciation charged in the year
86,774
43,350
89,515
219,639
Eliminated in respect of disposals
-
0
-
0
(56,768)
(56,768)
At 31 December 2023
285,591
284,019
324,507
894,117
Carrying amount
At 31 December 2023
786,735
95,479
650,079
1,532,293
At 31 December 2022
591,802
133,531
762,121
1,487,454

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
£
£
Motor vehicles
174,499
249,678
CLARKE AND PULMAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
12
Stocks
2023
2022
£
£
Finished goods and goods for resale
12,881,063
11,033,870
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,305,351
5,576,083
Amounts owed by group undertakings
1,081,687
1,458,504
Other debtors
2,518,407
1,718,529
Prepayments and accrued income
307,592
316,183
6,213,037
9,069,299
14
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
16
628,444
436,991
Obligations under finance leases
17
54,089
118,978
Trade creditors
8,219,733
9,072,786
Amounts owed to group undertakings
69,788
62,560
Corporation tax
159,830
123,981
Other taxation and social security
81,229
297,376
Other creditors
2,590,608
2,138,302
Accruals and deferred income
4,179,369
4,384,171
15,983,090
16,635,145

Obligations under finance leases are secured on the assets which they relate to. The finance lease contracts primarily relate to tractors which are subsequently included in fixed assets held for use in operating leases and also 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.

 

The bank loans are secured by a fixed and floating charge over the company's assets.

 

Included within other creditors there is a £2,478,521 (2022: £1,966,938) balance in relation to Lombard North Central PLC which is secured by a fixed charge over the related assets.

CLARKE AND PULMAN 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
240,805
599,285
Obligations under finance leases
17
61,821
128,095
Other creditors
390,811
597,800
693,437
1,325,180

Obligations under finance leases are secured on the assets which they relate to. The finance lease contracts primarily relate to tractors which are subsequently included in fixed assets held for use in operating leases and also 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.

 

The bank loans are secured by a fixed and floating charge over the company's assets.

 

 

16
Loans and overdrafts
2023
2022
£
£
Bank loans
504,230
888,151
Bank overdrafts
365,019
148,125
869,249
1,036,276
Payable within one year
628,444
436,991
Payable after one year
240,805
599,285

There are two bank loans included within the financial statements. The bank loans are denominated in sterling. The bank loans carry a fixed plus a margin interest rate.

 

The Coronavirus Business Interruption Loan is due to be repaid in full on 3 July 2025. The tailored business loan is due to expire on 1 April 2027.

 

The long-term loans are secured by fixed and floating charges over the company's assets.

17
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
54,089
118,978
In two to five years
61,821
128,095
115,910
247,073
CLARKE AND PULMAN 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 and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
214,360
219,138
2023
Movements in the year:
£
Liability at 1 January 2023
219,138
Credit to profit or loss
(4,778)
Liability at 31 December 2023
214,360

The deferred tax liability set out above is expected to reverse over the life of the fixed assets they relate to and accelerated capital allowances are expected to mature within the same period.

19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
25,463
25,059

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 £1 each
30,000
30,000
30,000
30,000

The ordinary shares have full rights in the company with respect to voting, dividends and distributions.

21
Financial commitments, guarantees and contingent liabilities

The company has given a cross guarantee in respect of loan facilities provided to Clarke and Pulman Holdings Limited.

 

The company has also received a cross guarantee from Clarke and Pulman Holdings 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 £519,453.

CLARKE AND PULMAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
22
Related party transactions

At the year end £685,079 (2022: £526,419) was owed to Clarke and Pulman Limited by companies under common control. No interest is being charged and there is no fixed date for repayment.

 

At the year end £39,988 (2022: £0) was owed by Clarke and Pulman Limited to companies under common control.

23
Directors' transactions

The director, G A Clarke, has provided a personal guarantee of £500,000 (2022: £500,000) in respect of bank liabilities.

 

The amount owed by G A Clarke to the company at the end of 2023 was £155,636 (2022: £0). During the prior year, G A Clarke repaid funds loaned to him by the company and in turn provided funds to the company. The resulting amount due to the director from the company of £178,964 was written off in the prior year, and included within other gains.

24
Ultimate controlling party

The immediate parent company is Clarke and Pulman Holdings Limited.

The company is included in the consolidated accounts of Clarke and Pulman Holdings Group Limited. The registered office of this company is Langley Place, Burscough Industrial Estate, Burscough, Lancashire, United Kingdom.

 

The ultimate controlling party is Mr G A Clarke, director, and majority shareholder of Clarke and Pulman Holdings Group Limited.

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