REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
FOR |
CROWN JEWELS CONSULTANTS LTD |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
FOR |
CROWN JEWELS CONSULTANTS LTD |
CROWN JEWELS CONSULTANTS LTD (REGISTERED NUMBER: 03899913) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Statement of Comprehensive Income | 9 |
Statement of Financial Position | 10 |
Statement of Changes in Equity | 11 |
Statement of Cash Flows | 12 |
Notes to the Statement of Cash Flows | 13 |
Notes to the Financial Statements | 14 |
CROWN JEWELS CONSULTANTS LTD |
COMPANY INFORMATION |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
Chartered Accountants |
Eighth Floor, 6 New Street Square |
New Fetter Lane |
London |
EC4A 3AQ |
BANKERS: |
1-3 Bishopsgate |
London |
EC2N 3AQ |
CROWN JEWELS CONSULTANTS LTD (REGISTERED NUMBER: 03899913) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
The directors present their strategic report for the year ended 29 February 2024. |
Crown Jewels Consultants Ltd ("CJC" or "the company") has reached 25 years of trading, which is a great achievement for a self-funded company. The longevity of CJC can be largely credited to the loyal and dedicated staff who have been with us for 20 plus years. The testament to this is also endorsed by our very low attrition rate which is below 3%. |
We are now in the final quarter of our first year of the renewal of contract with our largest client. This contract is proving beneficial for us and our client and discussions are underway to provide more lines of services to the client. |
Our partnerships with cloud providers continue to grow and is endorsing CJC's name due to our knowledge and expertise in Market Data. |
The predictions that major financial institutions would relocate from Hong Kong to elsewhere in the Far East have proved correct and we have recently opened a new office in Tokyo, Japan which we hope will prove beneficial for us. It will also enhance our 24/7/365 follow the sun support model. |
The new management team within our commercial management business has boosted revenues and contributed to the profits and growth in the business. |
The academy scheme, which we set up a few years ago to attract new entrants to the world of Market Data and ensure a large pool of talent and expertise, is well established now and attracting substantial third party and client interest and generating revenue for the company too. |
REVIEW OF BUSINESS |
Company turnover increased by 5.7% from £16,236k to £17,167k and the gross profit percentage reduced by 2.8% from 49.2% to 46.4%, principally due to inflationary pressure. |
The company's net profit before tax, ignoring one-off items such as government grants, decreased by 5.1% in the year with higher overall costs. |
The company is maintaining a healthy balance sheet with excellent liquidity and net assets up by 22.2%. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Market risk |
Several business initiatives that were implemented in previous years have come to fruition, and this has helped us avoid any major risk by staying ahead of the curve and leading the way in Market data and IT services within our industry. |
The value added of CJC's development skills is also helping with risk management, as a result of which the big fear of AI taking over the world is laid to rest with our involvement in this technology. |
We have embraced the hybrid working system of home and office working and this has helped with people's mental health and by being flexible and keeping attrition low within the organisation. |
Treasury operations and financial instruments |
The company's principal financial instruments include financial assets and liabilities such as trade debtors and trade creditors arising directly from operations. |
Liquidity risk |
The company manages its cash in order to ensure that at any point the company has sufficient liquid resources to meet the operating needs of the business. The company has improved its strong balance sheet and has very healthy bank reserves. |
Foreign exchange risk |
The company transacts in foreign currencies which enhances the risk of significant gains and losses arising in currency fluctuations. The directors monitor movements in foreign currencies and consider options to minimise this risk. With our major client now being a UK company, we are converting our pricing structures back to GBP instead of USD so this will lower any foreign exchange risk to which we may be exposed. |
CROWN JEWELS CONSULTANTS LTD (REGISTERED NUMBER: 03899913) |
STRATEGIC REPORT (continued) |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
IMPORTANT EVENTS AFTER THE YEAR END |
We are planning a greater involvement in AI technology, not to replace jobs but to enhance services. |
We are looking to create self-service portals which will enable our customers to avail of a one stop shop in the delivery of their requirements, especially cloud services. |
We are continuing to grow and enhance the academy scheme and plan to turn it into a business stream. |
ON BEHALF OF THE BOARD: |
CROWN JEWELS CONSULTANTS LTD (REGISTERED NUMBER: 03899913) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
The directors present their report with the financial statements of the company for the year ended 29 February 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of software consultancy and supply. |
DIVIDENDS |
The total distribution of dividends for the year ended 29 February 2024 was £261,404 (2023: £244,471). Further dividends of £197,202 have been paid after the year end. |
RESEARCH AND DEVELOPMENT |
The company is incurring non-qualifying research and development costs developing a product to complement its services. |
FUTURE DEVELOPMENTS |
Future developments are included in the Strategic Report. |
DIRECTORS |
Other changes in directors holding office are as follows: |
DISCLOSURE IN THE STRATEGIC REPORT |
As permitted by s414c(11) of the Companies Act 2006, the directors have elected to disclose information, required to be in the directors' report by Schedule 7 of the "Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008", in the strategic report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
Each of the persons who are directors at the time when this directors' report is approved has confirmed that: |
- | so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware, |
and |
- | the director has taken all the steps that ought to have been taken as a director in order to be aware of any |
relevant audit information and to establish that the company's auditor is aware of that information. |
CROWN JEWELS CONSULTANTS LTD (REGISTERED NUMBER: 03899913) |
REPORT OF THE DIRECTORS (continued) |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
AUDITORS |
The auditors, Rawlinson & Hunter Audit LLP, will be proposed for re-appointment. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CROWN JEWELS CONSULTANTS LTD |
Opinion |
We have audited the financial statements of Crown Jewels Consultants Ltd ("the company") for the year ended 29 February 2024, which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows and Notes to the Financial Statements, including a summary of significant accounting polices. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 "Financial Reporting Standard applicable in the UK" (United Kingdom Generally Accepted Accounting Practice). |
_ |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 29 February 2024 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 United Kingdom, including the Financial Reporting Council'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 Strategic Report, Report of the Directors and Financial Statements other than the financial statements and our Auditor's report thereon. The directors are responsible for the other information contained within the Strategic Report, Report of the Directors and Financial Statements. 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 the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CROWN JEWELS CONSULTANTS LTD |
(continued) |
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 Report of the Directors. |
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received |
from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of 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 statement of Directors' responsibilities set out on page 4, 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. |
Auditors' 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. |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. |
Based on our understanding of the company, we identified that the principal risks of non-compliance with laws and regulations related to breaches of UK regulations. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to inflate revenue and management bias in accounting estimates and judgemental areas of the financial statements. |
We designed our audit procedures to respond to identified risks, including non-compliance with laws and regulations (irregularities) that are material to the financial statements. Some of the specific procedures performed to detect irregularities, including fraud are detailed below: |
- | the review of control accounts and journal entries for large, unusual or unauthorised entries; |
- | the analytical review of the detailed profit and loss account for variances that are either unexpected or |
considered not to be in accordance with our understanding of the business during the year; |
- | reviewing agreements between the company and its customers and ensuring revenue recognition was |
based on timing of service being provided rather than invoicing structure; |
- | obtaining and reviewing for completeness a list of entities and persons considered to be related parties (as |
defined by Financial Reporting Standard 102) and reviewing the ledgers of the company for previously |
unreported related party transactions; and |
- | review of transactions and journals for any indication of fraud or management override. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CROWN JEWELS CONSULTANTS LTD |
(continued) |
Use of our report |
This report is made solely to the company's directors, 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 directors 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 directors, as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditor |
Chartered Accountants |
Eighth Floor, 6 New Street Square |
New Fetter Lane |
London |
EC4A 3AQ |
CROWN JEWELS CONSULTANTS LTD (REGISTERED NUMBER: 03899913) |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
2024 | 2023 Restated * |
Notes | £ | £ |
REVENUE | 4 |
Cost of sales | ( | ) | ( | ) |
GROSS PROFIT |
Administrative expenses | ( | ) | ( | ) |
2,548,121 | 2,730,314 |
Other operating income | 5 |
OPERATING PROFIT | 7 |
Interest receivable and similar income |
2,606,984 | 2,777,239 |
Interest payable and similar expenses | 8 | ( | ) | ( | ) |
PROFIT BEFORE TAXATION |
Tax on profit | 9 | ( | ) | ( | ) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
* £984,176 of Administrative expenses in 2023 have been re-classified as Cost of sales to reflect the nature of the expenses. |
CROWN JEWELS CONSULTANTS LTD (REGISTERED NUMBER: 03899913) |
STATEMENT OF FINANCIAL POSITION |
29 FEBRUARY 2024 |
2024 | 2023 |
Notes | £ | £ |
FIXED ASSETS |
Property, plant and equipment | 11 |
CURRENT ASSETS |
Debtors | 12 |
Prepayments and accrued income |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 13 | ( | ) | ( | ) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 15 | ( | ) | ( | ) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 16 |
Capital redemption reserve | 17 |
Share option reserve | 17 |
Retained earnings | 17 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
CROWN JEWELS CONSULTANTS LTD (REGISTERED NUMBER: 03899913) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
Called up | Capital | Share |
share | Retained | redemption | option | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 March 2022 |
Changes in equity |
Purchase of own shares | (1,050 | ) | (915,504 | ) | 1,050 | - | (915,504 | ) |
Dividends | - | ( | ) | - | - | ( | ) |
Total comprehensive income | - |
Distribution relating to |
director's loan | - | (40,718 | ) | - | - | (40,718 | ) |
Share based payment charge | - | - | - | 28,219 | 28,219 |
Balance at 28 February 2023 |
Changes in equity |
Purchase of own shares | (1,052 | ) | (917,248 | ) | 1,052 | - | (917,248 | ) |
Dividends | - | ( | ) | - | - | ( | ) |
Total comprehensive income | - |
Distribution relating to |
director's loan | - | (19,478 | ) | - | - | (19,478 | ) |
Share based payment charge | - | - | - | 12,015 | 12,015 |
Balance at 29 February 2024 |
CROWN JEWELS CONSULTANTS LTD (REGISTERED NUMBER: 03899913) |
STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( | ) | ( | ) |
Tax paid | ( | ) | ( | ) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( | ) | ( | ) |
Interest received |
Net cash from investing activities | ( | ) | ( | ) |
Cash flows from financing activities |
Loan repayments in year | ( | ) |
Amount withdrawn by directors | - | (500,000 | ) |
Share buyback | ( | ) | ( | ) |
Equity dividends paid | ( | ) | ( | ) |
Net cash from financing activities | ( | ) | ( | ) |
Decrease in cash and cash equivalents | ( | ) | ( | ) |
Cash and cash equivalents at beginning of year | 2 | 3,600,591 |
Cash and cash equivalents at end of year | 3 | 3,172,313 | 3,543,450 |
CROWN JEWELS CONSULTANTS LTD (REGISTERED NUMBER: 03899913) |
NOTES TO THE STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
1. | RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit for the financial year |
Depreciation charges |
Share based payment charge | 12,015 | 28,219 |
Finance costs | 2,747 | 23,035 |
Dividend and interest income | (35,096 | ) | (11,890 | ) |
Taxation |
2,740,142 | 2,890,961 |
Increase in trade and other debtors | ( | ) | ( | ) |
(Decrease)/increase in trade and other creditors | ( | ) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 29 February 2024 |
29.2.24 | 1.3.23 |
£ | £ |
Cash and cash equivalents | 3,172,313 | 3,543,450 |
Year ended 28 February 2023 |
28.2.23 | 1.3.22 |
£ | £ |
Cash and cash equivalents | 3,543,450 | 3,600,591 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.3.23 | Cash flow | At 29.2.24 |
£ | £ | £ |
Net cash |
Cash at bank | 3,543,450 | (371,137 | ) | 3,172,313 |
3,543,450 | ( | ) | 3,172,313 |
Total | 3,543,450 | (371,137 | ) | 3,172,313 |
CROWN JEWELS CONSULTANTS LTD (REGISTERED NUMBER: 03899913) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
1. | STATUTORY INFORMATION |
Crown Jewels Consultants Ltd is a private company, limited by shares, incorporated in England and Wales. The company's registered number and registered office address can be found on the Information page. |
The presentation currency of the financial statements is GB Pound Sterling (£), which is the company's functional currency. |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared on the historical cost basis except for the modification to a fair value basis for certain financial instruments as specified in the accounting policies below. |
The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. |
Significant judgements and estimates |
The preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgement and estimates have been made include: |
Judgements |
The method of allocating income and costs to the foreign branches which impacts the tax charges in each branch and the company. Income allocation is based on specific contracts/customers based in that jurisdiction and an allocation of income from global contracts based on payroll costs in the relevant branch. Costs are actual costs arising in the particular jurisdiction. |
Turnover |
Revenue represents amounts receivable from the provision of consultancy services and application support, net of VAT and discounts. |
Revenue from services undertaken on a time basis is recognised when the services are undertaken. Where revenue relates to fixed price service contract, revenue is recognised ratably over the term of the contract. |
CROWN JEWELS CONSULTANTS LTD (REGISTERED NUMBER: 03899913) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
3. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. |
Depreciation is calculated to write down the cost less estimated residual value of all tangible fixed assets over their expected useful lives, using the straight-line method. |
The rates applicable are: |
- Plant and machinery 4 years |
- Fixtures and fittings 5 years |
- Computer equipment 4 years |
Impairment of Assets |
At each reporting date, fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount. |
If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment been recognised for the asset in prior years. |
All impairment losses or reversals of impairment losses are recognised immediately in profit or loss. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
CROWN JEWELS CONSULTANTS LTD (REGISTERED NUMBER: 03899913) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
3. | ACCOUNTING POLICIES - continued |
Foreign currency translation of transactions and balances |
Transactions in currencies other than the functional currency are recognised at the date of the transaction. At the end of each month, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated. |
Exchange differences are recognised in profit or loss in the period in which they arise. |
Pension costs and other post-retirement benefits |
The company operates a UK statutory workplace pension scheme and also makes contributions to certain employees' personal pension schemes which are recognised as an expense in the period in which they are incurred. The company makes contributions to pension schemes for Hong Kong, Singapore and US employees. Retirement benefits under the above money purchase schemes are accruing. |
Leased Assets |
Leases which do not transfer substantially all risks and rewards of ownership to the company are classified as operating leases. Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term. |
In the event that lease incentives are received to enter into operating leases, such incentives are recognized as a liability. The aggregate benefit of incentives are recognised as a reduction of rental expenses on a straight-line basis, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed. |
Going Concern |
After reviewing the company's management accounts to the date of the signing of these accounts and the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.The majority of the company's revenue is generated from its contract with the London Stock Exchange Group, which was renewed on 12 April 2024. The directors also believe that the company is very well placed competitively due to its niche knowledge and expertise, which places the business in a strong position to grow its other existing sources of income. Potential opportunities to move into new geographical markets are also being explored and the company's financial position is currently very healthy with cash reserves of around £3.2m. The directors therefore continue to adopt the going concern basis in preparing these financial statements. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. |
Debtors |
Short term debtors are measured at the undiscounted amount of cash or other consideration expected to be received, less any impairment. If the arrangement constitutes a financing transaction, for example receipt is allowed to be deferred beyond normal commercial terms or financed at an interest rate other than at market rate, the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar type of debt. |
CROWN JEWELS CONSULTANTS LTD (REGISTERED NUMBER: 03899913) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
3. | ACCOUNTING POLICIES - continued |
Creditors |
Short term trade creditors are measured at the transaction price. Other financial liabilities, including loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
Long term creditors are identified and classified separately from short term creditors only where the company has an unconditional right at the end of the accounting period to defer settlement of the creditor for at least one year. |
Provisions for Liabilities |
Provisions are recognised when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that the company will be required to settle the 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 end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. |
Employee Benefits |
The company has provided for annual leave accrued by employees as a result of services rendered in the current period, and which employees are entitled to carry forward and use within the next twelve months. The provision is measured at the salary cost payable for the period of absence. |
The costs of short-term employee benefits are recognised as a liability and an expense. |
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. |
Share based payments |
The company provides share-based payments to certain employees under an Enterprise Management Incentive scheme. Details are outlined in Note 22. |
The total expected expense is based on the fair value of the options on the grant date, calculated using a valuation model, and is recognised on a straight line basis over the expected vesting period in the profit and loss account with a corresponding credit to equity. |
4. | REVENUE |
The revenue and profit before taxation are attributable to services provided by the company. |
An analysis of revenue by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom | 10,258,725 | 10,066,522 |
United States of America | 3,660,969 | 3,355,353 |
Asia | 3,247,576 | 2,814,661 |
17,167,270 | 16,236,536 |
CROWN JEWELS CONSULTANTS LTD (REGISTERED NUMBER: 03899913) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
5. | OTHER OPERATING INCOME |
2024 | 2023 |
£ | £ |
Sundry receipts | 216 | 1,104 |
Government grants |
23,767 | 35,035 |
6. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 8,543,275 | 8,592,682 |
Social security costs | 973,427 | 802,364 |
Other pension costs | 227,696 | 231,128 |
9,744,398 | 9,626,184 |
The average number of employees during the year was a follows: |
2024 | 2023 |
Directors | 2 | 2 |
Employees: |
Operations | 69 | 62 |
Engineering | 20 | 19 |
Sales & Marketing | 3 | 5 |
Administration | 20 | 20 |
Total | 114 | 108 |
2024 | 2023 |
£ | £ |
Directors' remuneration | 102,681 | 16,120 |
Directors' pension contributions to money purchase schemes | 490 | 96,560 |
During the year, there were no retirement benefits accruing to the company directors in respect of defined contribution schemes (2023 : £Nil). |
7. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Depreciation - owned assets |
Auditors' remuneration |
Share-based payments |
Operating lease rental costs |
Foreign exchange differences | ( | ) |
CROWN JEWELS CONSULTANTS LTD (REGISTERED NUMBER: 03899913) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank loan interest |
Interest payable to HMRC |
Interest and penalties on US tax |
Penalties |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax |
Hong Kong corporation tax | 138,948 | 17,089 |
USA corporation tax | 308,989 | 304,059 |
Singapore corporation tax | 15,933 | 38,328 |
Total current tax |
Deferred tax | ( | ) |
Tax on profit |
UK corporation tax has been charged at 24% (2023 - 19%). |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | - | ( | ) |
Depreciation in excess of capital allowances | - |
Impact of overseas tax rates | (156,649 | ) | (9,721 | ) |
Increase in deferred tax rate | - | 9,853 |
Marginal relief on UK tax | (26,589 | ) | - |
Total tax charge | 503,450 | 529,684 |
CROWN JEWELS CONSULTANTS LTD (REGISTERED NUMBER: 03899913) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
9. | TAXATION - continued |
Current tax is recognised for the amount of tax payable in respect of the taxable profit for the current or past reporting periods using tax rates and laws that have been enacted or substantively enacted by the reporting date. |
Factors that may affect future tax charges: |
In the Spring Budget 2021, the UK Government announced that from 1 April 2023 the corporation tax rate would increase to 25% for companies with profits of over £250,000. A small profits rate will also be introduced for companies with profits of £50,000 or less so that they will continue to pay corporation tax at 19%. From this date companies with profits between £50,000 and £250,000 will pay tax at the main rate reduced by a marginal relief providing a gradual increase in the effective corporation tax rate. This new law was substantively enacted on 24 May 2021and is applicable to the year under review. Deferred taxes at the balance sheet date have been measured using these enacted tax rates and reflected in these financial statements. |
During the year beginning 1 March 2024, the net reversal of deferred tax assets and liabilities on the UK corporation tax for the year is not expected to be significant, due to foreign branch profits being taxed in their respective jurisdictions. |
10. | DIVIDENDS |
2024 | 2023 |
£ | £ |
"G" Ordinary non-voting shares of £1 each |
Interim div share type G | 261,404 | 244,471 |
Further dividends of £197,202 have been paid after the year end. |
11. | PROPERTY, PLANT AND EQUIPMENT |
Fixtures |
Plant and | and | Computer |
machinery | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 March 2023 |
Additions |
At 29 February 2024 |
DEPRECIATION |
At 1 March 2023 |
Charge for year |
At 29 February 2024 |
NET BOOK VALUE |
At 29 February 2024 |
At 28 February 2023 |
CROWN JEWELS CONSULTANTS LTD (REGISTERED NUMBER: 03899913) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
12. | DEBTORS |
2024 | 2023 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Accrued income |
Other debtors |
Sundry debtors | (95 | ) | 14,523 |
Directors' current accounts | 472,249 | 186,916 |
Tax |
Amounts falling due after more than one year: |
Directors' loan accounts | - | 280,846 |
Aggregate amounts |
Refer to Note 19 for the full capital value of the director's loan of £472,249. |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade creditors |
Tax |
Social security and other taxes |
Pension - UK | 15,059 | - |
Pension - HK | - | 3,875 |
VAT | 519,668 | 432,991 |
Other creditors |
Deferred income |
Accrued expenses |
14. | LEASING COMMITMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
15. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax | 39,914 | 43,947 |
CROWN JEWELS CONSULTANTS LTD (REGISTERED NUMBER: 03899913) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
15. | PROVISIONS FOR LIABILITIES - continued |
Deferred |
tax |
£ |
Balance at 1 March 2023 |
Share based payments | (2,435 | ) |
Accelerated capital allowances | (1,598 | ) |
Balance at 29 February 2024 |
The deferred taxation provision principally relates to accelerated capital allowances. |
16. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
"A" Ordinary voting | £1 | 3,889 | 4,938 |
(2023 - 4,938 ) |
"B" Ordinary non-voting | £1 | 2 | 2 |
NIL | "C" Ordinary non-voting | £1 | - | 1 |
(2023 - 1 ) |
"D" Ordinary non-voting | £1 | 1 | 1 |
NIL | "E" Ordinary non-voting | £1 | - | 2 |
(2023 - 2 ) |
2 | "G" Ordinary non-voting | £1 | 2 | 2 |
3,894 | 4,946 |
On 28 April 2023, 1,049 " A" shares, 1 "C" share and 2 "E" shares were purchased by the company and cancelled. These shares were acquired for a consideration of £917,248 and stamp duty of £4,590 was paid. The shareholders had approved a resolution to purchase these shares. These shares were acquired in order to buy back the shares of a minority shareholder in the company. |
The "B", "D", and "G" Ordinary non-voting shares shall not entitle the holders to receive notice of or attend or vote at any General Meeting of the Company. |
Any dividend payable on any class of share may be decided at the discretion of the company, may vary from time to time and may be payable on one class of share only or any classes of shares as may be. |
Save as aforesaid, the Class "A" Ordinary voting shares and the Class "B" to "G" Ordinary non-voting shares rank pari passu with each other in every respect. |
CROWN JEWELS CONSULTANTS LTD (REGISTERED NUMBER: 03899913) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
17. | RESERVES |
Capital | Share |
Retained | redemption | option |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
At 1 March 2023 | 4,120,288 |
Profit for the year | - | - |
Dividends | ( | ) | - | - | ( | ) |
Purchase of own shares | (917,248 | ) | 1,052 | - | (916,196 | ) |
Distribution relating to |
director's loan | (19,478 | ) | - | - | (19,478 | ) |
Share based payment charge | - | - | 12,015 | 12,015 |
At 29 February 2024 | 5,036,012 |
Capital Redemption Reserve |
The capital redemption reserve records the nominal value of shares repurchased by the company. |
Share Option Reserve |
Share based payment expenses passing through the profit and loss account are credited to the Share Option Reserve. |
18. | OTHER FINANCIAL COMMITMENTS |
Crown Jewels Consultants Ltd entered into a contract to purchase shares from 2 shareholders in 4 tranches. Clearance was obtained from HM Revenue & Customs under s1033 CTA 2010. |
The first 2 tranches took place in 2021 and in total, 1,052 "A" shares were purchased for £917,247.94 and subsequently cancelled. |
The next tranche took place in April 2022 when a further 1,050 "A" shares were purchased for £915,504.12. These shares have also been cancelled. |
The final tranche took place in April 2023 when 1,049 "A" shares, 1 "C" share and 2 "E" shares were purchased for £917,247.94. These shares have also been cancelled. |
19. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 29 February 2024 and 28 February 2023: |
2024 | 2023 |
£ | £ |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
CROWN JEWELS CONSULTANTS LTD (REGISTERED NUMBER: 03899913) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
19. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES - continued |
Refer to Note 12 for the present value of the above capital amount. |
The company made a loan of £250,000 to Mr P R Gow in October 2022 followed by an additional £250,000 in November 2022. Interest is being charged at the HMRC Beneficial loan rate. The loans are still outstanding at the Balance Sheet date and are repayable on demand. The loans have been discounted using a market rate of 7%. The difference between the interest received and the loan discount is £60,196.29 (2023: £40,718), and is included in the financial statements as a distribution relating to the director's loan as shown in the Statement of Changes in Equity. |
The director has repaid £225,000 of the loan after the Balance Sheet date in July 2024. |
20. | RELATED PARTY DISCLOSURES |
2024 | 2023 |
£ | £ |
Professional fees |
Amount due to related party |
During the year, a total of key management personnel compensation of £ |
21. | ULTIMATE CONTROLLING PARTY |
22. | SHARE-BASED PAYMENT TRANSACTIONS |
The company set up an Enterprise Management Incentive Share Option Plan in January 2020. A total of 566 share options were offered to certain senior employees. The options were granted with a fixed exercise price of £830 per share and are exercisable at the earlier of an exit or five years after the date of the grant. Employees are not entitled to dividends until the shares are exercised. Employees are required to remain in employment with the company until exercise otherwise the options lapse. On exercise of the options by the employees, the company issues new shares. There are 488 options that remain outstanding at the year end. |
The fair value of the share options granted during the year was determined using a model based on the Black-Scholes model which is considered to be the most appropriate generally accepted valuation method of measuring fair value. |
The total charge this year is £12,015 (2023: £28,219). |
CROWN JEWELS CONSULTANTS LTD (REGISTERED NUMBER: 03899913) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
23. | FINANCIAL INSTRUMENTS |
2024 | 2023 |
| £ £ |
Financial assets |
Financial assets measured at fair value through profit or loss (a) | 3,172,313 | 3,543,450 |
Financial assets that are debt instruments measured at amortised cost (b) | 4,247,056 | 3,890,558 |
7,419,369 | 7,434,008 |
Financial liabilities |
Financial liabilities measured at amortised cost (c) | 856,456 | 830,303 |
(a) consists of cash at bank and in hand |
(b) consists of trade debtors, accrued income, other debtors, sundry debtors and directors' current accounts |
(c) consists of trade creditors, pensions liabilities, other creditors and accrued expenses |