CURTEIS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Company Registration No. 01922528 (England and Wales)
CURTEIS LIMITED
COMPANY INFORMATION
Directors
Mr H M T Curteis
Mrs C L Davies
Mr S P Davies
Company number
01922528
Registered office
Caia Lane
Ellesmere
Shropshire
SY12 9EG
Auditor
DSG Audit
Castle Chambers
43 Castle Street
Liverpool
L2 9TL
CURTEIS LIMITED
CONTENTS
Page
Directors' report
1 - 2
Directors' responsibilities statement
3
Strategic report
4 - 5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 26
CURTEIS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

The directors present their annual report and financial statements for the year ended 30 June 2024.

Principal activities

The principal activity of the company is the manufacture and distribution of chain and other jewellery products.

Results and dividends

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

Ordinary dividends were paid amounting to £55,500. The directors do not recommend payment of a final 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 H M T Curteis
Mrs C L Davies
Mr S P Davies
Financial instruments
Liquidity risk

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

Interest rate risk

The company is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans.

Foreign currency risk

The company’s principal foreign currency exposures arise from trading with overseas companies. Company policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling.

Credit risk

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

 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Commodity risk

The company is exposed to the risk of changes in market prices of precious metals, namely gold, silver, platinum and palladium. This risk is mitigated by holding levels of metal borrowings which are deemed appropriate by the directors.

 

Other risk and uncertainties facing the business include the overall economic climate, the implications of Brexit , fluctuation in raw material pricing and competition in the market place.

Future developments

The company will pursue its existing activities and continue to seek business opportunities in both the UK and overseas.

CURTEIS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Auditor

DSG resigned as auditor on 11 September 2024. DSG Audit were appointed on 11 September 2024 to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

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 H M T Curteis
Director
11 October 2024
CURTEIS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 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.

CURTEIS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -

The directors present the strategic report for the year ended 30 June 2024.

Fair review of the business

As shown in the company’s statement of comprehensive income, revenue for the year increased by £2,321,860 to £16,392,653 (2023: £14,070,793). Profit before tax also decreased by £394,383 to £973,080.

 

The figures from the UK Assay Offices show that over the last twelve months the total number of gold articles hallmarked compared with the previous year was down by 5.2% and silver articles by 6.2%. For Curteis Limited the weight of gold items (not number of items) decreased by 4.1% and silver was down by 5.7% against 2023.

The business remains committed to growing sales and profitability into the future by the development and marketing of its product range and maintaining high levels of customer service.

Principal risks and uncertainties

There are a number of risks and uncertainties that can impact on the performance of Curteis Limited, some of which are beyond the control the company. The company monitors market trends and risks on an ongoing basis and takes corrective action as and when required.

Fluctuations in the price and supply of key raw materials, in particular metal prices, affect the profitability of the business. Purchasing policies and practices mitigate, where practicable, these risks.

Competitive pressure in all the markets it operates in are an ongoing risk to the company which could result in losing market share to its main competitors. To manage this risk the company maintains strong relationships with its customers with high levels of customer service and product quality, range and value.

Key performance indicators

The directors consider the key performance indicators to be:

 

Turnover and gross profit margin

The company’s turnover for the year was £16.4m an increase of 16.5% on the previous year of £14.1m. However , included within sales this year is an amount of £2.2m being the sale of silver bars back to our bullion supplier. This was done to reduce our borrowing position with the onset of increased interest charges. The turnover , excluding the sale of silver bars, was £14.2m , a marginal increase on 2023.

 

The company’s margin decreased to 16.8% from 21.2%. Excluding the sale of silver bars , which achieved a margin of circa 10% , like for like trading on normal trading sales was slightly down at circa 18% due to a number of significant cost increases, in particular wages, depreciation and energy costs.

 

Profit before tax

The company maintains strong controls over fixed costs and other overheads. The business continues to invest in manufacturing capability, quality, marketing and research and development to enable it to achieve its profitability targets. Profit before tax decreased by £394,383 to £973,080 in the period as a result of the reduced margin and significant cost increases in the period.

 

Cash and liquidity

The cash balance at the year end was £6,714 (2023: £24,068). The company operates within its banking facilities and maintains strong cash control which has enabled it to meet its obligations to suppliers and other creditors as they fall due.

Shareholder equity

Shareholders’ equity increased by £671,687 to £11,292,889. This was after dividends of £55,500 were paid in the year.

 

Employees

Average headcount for 2024 was 85 (2023: 84). The company continues to invest in its strategies for the training, development and retention of employees.

On behalf of the board

CURTEIS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 5 -
Mr H M T Curteis
Director
11 October 2024
CURTEIS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CURTEIS LIMITED
- 6 -
Opinion

We have audited the financial statements of Curteis Limited (the 'company') for the year ended 30 June 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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:

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:

CURTEIS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CURTEIS LIMITED (CONTINUED)
- 7 -
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.

CURTEIS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CURTEIS LIMITED (CONTINUED)
- 8 -
Capability of the audit in detecting irregularities, including fraud

Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity. The following laws and regulations were identified as being of significance to the entity:

 

 

 

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of journal entries; reviewing post year end payments for evidence of claims pay outs and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

 

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

 

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

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Jean Ellis BA FCA CTA
Senior Statutory Auditor
For and on behalf of DSG Audit
11 October 2024
Chartered Accountants
Statutory Auditor
Castle Chambers
43 Castle Street
Liverpool
L2 9TL
CURTEIS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
16,392,653
14,070,793
Cost of sales
(13,664,137)
(11,065,574)
Gross profit
2,728,516
3,005,219
Administrative expenses
(1,546,284)
(1,428,002)
Other operating income
3,480
3,480
Operating profit
4
1,185,712
1,580,697
Interest payable and similar expenses
7
(212,632)
(213,234)
Profit before taxation
973,080
1,367,463
Tax on profit
8
(245,893)
(310,876)
Profit for the financial year
727,187
1,056,587
CURTEIS LIMITED
BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
1,466,033
1,419,048
Investment property
11
240,000
240,000
1,706,033
1,659,048
Current assets
Stocks
12
12,067,637
13,576,035
Debtors
13
2,522,707
1,987,335
Cash at bank and in hand
6,714
24,068
14,597,058
15,587,438
Creditors: amounts falling due within one year
14
(4,134,637)
(6,166,010)
Net current assets
10,462,421
9,421,428
Total assets less current liabilities
12,168,454
11,080,476
Provisions for liabilities
Provisions
16
547,681
135,450
Deferred tax liability
17
327,884
323,824
(875,565)
(459,274)
Net assets
11,292,889
10,621,202
Capital and reserves
Called up share capital
19
100
100
Profit and loss reserves
20
11,292,789
10,621,102
Total equity
11,292,889
10,621,202

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 11 October 2024 and are signed on its behalf by:
Mr H M T Curteis
Director
Company registration number 01922528 (England and Wales)
CURTEIS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2022
100
9,619,515
9,619,615
Year ended 30 June 2023:
Profit and total comprehensive income
-
1,056,587
1,056,587
Dividends
9
-
(55,000)
(55,000)
Balance at 30 June 2023
100
10,621,102
10,621,202
Year ended 30 June 2024:
Profit and total comprehensive income
-
727,187
727,187
Dividends
9
-
(55,500)
(55,500)
Balance at 30 June 2024
100
11,292,789
11,292,889
CURTEIS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
2,330,102
736,923
Interest paid
(212,632)
(213,234)
Income taxes paid
(151,946)
(243,103)
Net cash inflow from operating activities
1,965,524
280,586
Investing activities
Purchase of tangible fixed assets
(254,640)
(817,182)
Net cash used in investing activities
(254,640)
(817,182)
Financing activities
Dividends paid
(55,500)
(55,000)
Net cash used in financing activities
(55,500)
(55,000)
Net increase/(decrease) in cash and cash equivalents
1,655,384
(591,596)
Cash and cash equivalents at beginning of year
(4,738,409)
(4,146,813)
Cash and cash equivalents at end of year
(3,083,025)
(4,738,409)
Relating to:
Cash at bank and in hand
6,714
24,068
Bank overdrafts included in creditors payable within one year
(3,089,739)
(4,762,477)
CURTEIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
1
Accounting policies
Company information

Curteis Limited is a private company limited by shares incorporated in England and Wales. The registered office is Caia Lane, Ellesmere, Shropshire, SY12 9EG.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention, modified to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

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. 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 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.

1.4
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:

Improvements to leasehold land and buildings
4% straight line
Plant and machinery
6.67% straight line
Fixtures, fittings & equipment
20% straight line
Motor vehicles
25% straight line

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

1.5
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.

CURTEIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

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

 

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

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Stocks

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

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.

1.8
Cash and cash equivalents

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

1.9
Financial instruments

The 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.

CURTEIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
Basic financial assets

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

Other financial assets

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

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the 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 are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

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

CURTEIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

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

Derecognition of financial liabilities

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

1.10
Equity instruments

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

1.11
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The 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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

CURTEIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 17 -
1.12
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.13
Employee benefits

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

 

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

 

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

1.14
Retirement benefits

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

1.15
Leases

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

1.16
Foreign exchange

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

CURTEIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
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. The directors consider that there are no key sources of estimation uncertainty.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Stock provision

The company has recognised provisions for the impairment of stock. The judgements, estimates and associated assumptions necessary to calculate these provisions are based on historical experience and other reasonable factors. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment in the profit and loss account. The provision is based on the assessment of stock value, ageing, quantities on hand and useage.

Agent compensation

The company uses agents who may be entitled to compensation at the cessation of their contract. The company has estimated the future liability for such charges based on professional advice sought, historical experience and other reasonable factors.

3
Turnover

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

2024
2023
£
£
Turnover analysed by class of business
Sale of goods
16,392,653
14,070,793
2024
2023
£
£
Turnover analysed by geographical market
UK
15,322,405
13,129,333
Other
1,070,248
941,460
16,392,653
14,070,793
CURTEIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Exchange losses
7,357
5,262
Fees payable to the company's auditor for the audit of the company's financial statements
14,185
15,125
Depreciation of owned tangible fixed assets
207,655
137,933
Operating lease charges
29,220
27,298
5
Employees

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

2024
2023
Number
Number
Production
62
61
Administration
23
23
Total
85
84

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,935,701
1,768,068
Social security costs
156,193
141,329
Pension costs
89,457
73,229
2,181,351
1,982,626
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
113,980
104,216
Company pension contributions to defined contribution schemes
5,026
4,587
119,006
108,803

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).

CURTEIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
212,632
213,234
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
241,833
151,946
Adjustments in respect of prior periods
-
0
836
Total current tax
241,833
152,782
Deferred tax
Origination and reversal of timing differences
4,060
158,094
Total tax charge
245,893
310,876

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:

2024
2023
£
£
Profit before taxation
973,080
1,367,463
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
243,270
259,818
Tax effect of expenses that are not deductible in determining taxable profit
(2,919)
519
Effect of change in corporation tax rate
-
0
11,090
Permanent capital allowances in excess of depreciation
1,482
(119,481)
Under/(over) provided in prior years
-
0
836
Deferred tax charge
4,060
158,094
Taxation charge for the year
245,893
310,876
9
Dividends
2024
2023
£
£
Interim paid
55,500
55,000
CURTEIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
10
Tangible fixed assets
Improvements to leasehold land and buildings
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 July 2023
668,338
3,650,204
144,185
13,550
4,476,277
Additions
-
0
163,701
15,648
75,291
254,640
At 30 June 2024
668,338
3,813,905
159,833
88,841
4,730,917
Depreciation and impairment
At 1 July 2023
558,105
2,392,541
97,983
8,600
3,057,229
Depreciation charged in the year
26,734
132,603
30,291
18,027
207,655
At 30 June 2024
584,839
2,525,144
128,274
26,627
3,264,884
Carrying amount
At 30 June 2024
83,499
1,288,761
31,559
62,214
1,466,033
At 30 June 2023
110,233
1,257,663
46,202
4,950
1,419,048
11
Investment property
2024
£
Fair value
At 1 July 2023 and 30 June 2024
240,000

The investment property was revalued on an open market basis by Roger Parry and Partners, a firm of independent Chartered Surveyors, in May 2016. The directors have reviewed this valuation and are satisfied that it remains appropriate at the year end.

12
Stocks
2024
2023
£
£
Raw materials and consumables
3,682,491
5,210,950
Work in progress
1,009,521
774,977
Finished goods and goods for resale
7,375,625
7,590,108
12,067,637
13,576,035

Inventories are stated after provisions for impairment of £246,159 (2023: £384,802).

CURTEIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,382,962
1,875,421
Other debtors
40,664
-
0
Prepayments and accrued income
99,081
111,914
2,522,707
1,987,335

Trade debtors are stated after provisions for impairment of £44,882 (2023: £35,916).

14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans, overdrafts and metal borrowings
15
3,089,739
4,762,477
Trade creditors
277,730
457,323
Corporation tax
241,833
151,946
Other taxation and social security
208,758
133,814
Other creditors
60,968
242,683
Accruals and deferred income
255,609
417,767
4,134,637
6,166,010
15
Loans and overdrafts
2024
2023
£
£
Bank loans, overdrafts and metal borrowings
3,089,739
4,762,477
Payable within one year
3,089,739
4,762,477

Bank loans, overdrafts and metal borrowings are secured by way of a fixed and floating charge over the assets of the company.

16
Provisions for liabilities
2024
2023
£
£
Dilapidations
127,431
135,450
Agent Compensation
420,250
-
547,681
135,450
CURTEIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
16
Provisions for liabilities
(Continued)
- 23 -
Movements on provisions:
Dilapidations
Agent Compensation
Total
£
£
£
At 1 July 2023
135,450
-
135,450
Additional provisions in the year
-
394,250
394,250
Utilisation of provision
(8,019)
-
(8,019)
Transfer from accruals
-
26,000
26,000
At 30 June 2024
127,431
420,250
547,681

The dilapidations provision relates to leased premises which is payable on the earlier of the surrender of the lease or when the work has been completed.

 

The agent compensation provision relates to estimated payments due to agents on termination of their contracts.

17
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Balances:
£
£
ACAs
329,559
325,476
Other short term timing differences
(1,675)
(1,652)
327,884
323,824
2024
Movements in the year:
£
Liability at 1 July 2023
323,824
Charge to profit or loss
4,060
Liability at 30 June 2024
327,884

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances and other short term timing differences that are expected to mature within the same period.

CURTEIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 24 -
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
89,457
73,229

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.

19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary-A shares of £1 each
50
50
50
50
Ordinary-B Shares of £1 each
50
50
50
50
100
100
100
100
20
Profit and loss reserves

The profit and loss reserves include an amount of £150,000 (2023: £150,000) that is not distributable.

21
Operating lease commitments
Lessee

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

2024
2023
£
£
Within one year
-
0
3,287
22
Capital commitments

Amounts contracted for but not provided in the financial statements:

2024
2023
£
£
Acquisition of tangible fixed assets
-
41,682
CURTEIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 25 -
23
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
130,738
119,758
Other information

During the year £55,000 (2023: £55,000) was charged by Mr H M T Curteis, director, in respect of rent due on the factory, occupied by the factory, which is owned by him.

24
Directors' transactions

Dividends totalling £55,500 (2023 - £55,000) were paid in the year in respect of shares held by the company's directors.

At 30 June 2024 a balance of £60,968 (2023: £242,683) was due to Mr H M T Curteis.

25
Ultimate controlling party

The ultimate controlling parties are Mr and Mrs H M T Curteis who own 100% of the issued share capital.

26
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
727,187
1,056,587
Adjustments for:
Taxation charged
245,893
310,876
Finance costs
212,632
213,234
Depreciation and impairment of tangible fixed assets
207,655
137,933
Increase/(decrease) in provisions
412,231
(39,430)
Movements in working capital:
Decrease/(increase) in stocks
1,508,398
(1,302,525)
(Increase)/decrease in debtors
(535,372)
446,147
Decrease in creditors
(448,522)
(85,899)
Cash generated from operations
2,330,102
736,923
CURTEIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 26 -
27
Analysis of changes in net debt
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
24,068
(17,354)
6,714
Bank overdrafts
(4,762,477)
1,672,738
(3,089,739)
(4,738,409)
1,655,384
(3,083,025)
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