Company registration number 07335576 (England and Wales)
CITRINE NETWORK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
CITRINE NETWORK LIMITED
COMPANY INFORMATION
Directors
Mr S S Dhillon
Mrs B K Dhillon
Company number
07335576
Registered office
28-34
Albert Street
Birmingham
West Midlands
B4 7UD
Auditor
Ormerod Rutter Limited
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
Bankers
HSBC Bank Plc
34 Poplar Road
Solihull
West Midlands
B91 3AF
CITRINE NETWORK LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 20
CITRINE NETWORK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present the strategic report for the year ended 31 March 2024.
Review of business
The company operates as the parent entity of a group.
The financial results of the company are detailed in the annexed financial statements.
Post year end on 27 September 2024 subsidiary companies J T Retail Limited, Nexus Two Limited, Talk Talk Mobile Phones Limited and Talk Talk Mobile Phones Services Limited, were sold to third parties. On the basis that no audited financial information is available for these entities, no audited consolidated group financial statements could be prepared for the year ended 31 March 2024.
Principal risks and uncertainties
The directors consider that the principal risks and uncertainties facing the company are those relating to competition within the industry sector and the current economic environment. All of these risks are monitored regularly by the directors to ensure that they are minimised.
There is significant doubt over the future trading of the subsidiary entities disclosed in note 17 of the financial statements. Following the closure of all O2 retail stores within the group in January 2024, the financial statements of these entities will be prepared on a basis other than the going concern basis.
This parent entity as a standalone company will continue to trade into 2025 and beyond, so the financial statements have been prepared on a going concern basis.
Key performance indicators
The directors do not consider there to be any specific key performance indicators as the company operates as a holding company only.
Mr S S Dhillon
Director
21 January 2025
CITRINE NETWORK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activity of the company continued to be that of a holding company.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr S S Dhillon
Mrs B K Dhillon
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £887,000. The directors do not recommend payment of a final dividend.
Auditor
In accordance with the company's articles, a resolution proposing that Ormerod Rutter Limited be reappointed as auditor of the company will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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.
CITRINE NETWORK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
On behalf of the board
Mr S S Dhillon
Director
21 January 2025
CITRINE NETWORK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CITRINE NETWORK LIMITED
- 4 -
Qualified opinion on financial statements
We have audited the financial statements of Citrine Network Limited (the 'company') for the year ended 31 March 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, except for the effects of the matter described in the "Basis for qualified opinion" paragraph, the financial statements:
give a true and fair view of the state of the company's affairs as at 31 March 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 qualified opinion
Four of Citrine Network Limited's subsidiary companies were sold on 27 September 2024, as disclosed in note 17 of the financial statements. As far as we are aware, at the date of signing the Audit Report of the company, the financial statements of the subsidiary entities sold have not been subject to audit and have not been filed at Companies House. On this basis, Citrine Network Limited could not prepare audited consolidated group financial statements, which included the disposed subsidiaries, as required for the year ended 31 March 2024. Therefore we have no alternative but to issue a qualified audit opinion for the financial statements of Citrine Network Limited as an entity on the basis they are not consolidated.
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 qualified opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
As described in the "Basis for qualified opinion" section of our report, our audit opinion is qualified due to the company not preparing group consolidated financial statements for the year ended 31 March 2024.
CITRINE NETWORK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CITRINE NETWORK LIMITED (CONTINUED)
- 5 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
Except for the matter described in the "Basis for qualified opinion" section of our report, in the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
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 the principle risks of non-compliance with laws and regulations including those that have a direct impact on the preparation of financial statements such as the Companies Act 2006, and the extent to which non-compliance might have a material effect on the financial statements. Audit procedures performed included discussions with management, testing of journals, designing and performing audit procedures and challenging assumptions and judgements made by management.
There are inherent limitations in the audit procedures described above. We are likely to become aware of instances of non-compliance with laws and regulations which are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, intentional misstatement or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
CITRINE NETWORK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CITRINE NETWORK LIMITED (CONTINUED)
- 6 -
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.
Colm McGrory FCA
Senior Statutory Auditor
For and on behalf of Ormerod Rutter Limited
21 January 2025
Chartered Accountants
Statutory Auditor
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
CITRINE NETWORK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
77,375
87,250
Administrative expenses
(8,773)
(7,730)
Operating profit
4
68,602
79,520
Interest receivable and similar income
6
1,513,000
6,500,014
Interest payable and similar expenses
7
(390)
Amounts written off investments
8
-
(3,173,705)
Profit before taxation
1,581,212
3,405,829
Tax on profit
12
(17,053)
(15,111)
Profit for the financial year
1,564,159
3,390,718
The profit and loss account has been prepared on the basis that all operations are continuing operations.
CITRINE NETWORK LIMITED
BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
14
682,248
682,248
Investment property
15
230,440
230,440
Investments
16
35,302
5,096,717
947,990
6,009,405
Current assets
Debtors
18
16,681,060
12,027,033
Cash at bank and in hand
187,244
593,910
16,868,304
12,620,943
Creditors: amounts falling due within one year
19
(54,636)
(1,545,849)
Net current assets
16,813,668
11,075,094
Net assets
17,761,658
17,084,499
Capital and reserves
Called up share capital
20
35,100
35,100
Profit and loss reserves
21
17,726,558
17,049,399
Total equity
17,761,658
17,084,499
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 21 January 2025 and are signed on its behalf by:
Mr S S Dhillon
Director
Company registration number 07335576 (England and Wales)
CITRINE NETWORK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
35,100
15,028,681
15,063,781
Year ended 31 March 2023:
Profit and total comprehensive income
-
3,390,718
3,390,718
Dividends
13
-
(1,370,000)
(1,370,000)
Balance at 31 March 2023
35,100
17,049,399
17,084,499
Year ended 31 March 2024:
Profit and total comprehensive income
-
1,564,159
1,564,159
Dividends
13
-
(887,000)
(887,000)
Balance at 31 March 2024
35,100
17,726,558
17,761,658
CITRINE NETWORK LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
25
(6,094,082)
(5,035,434)
Interest paid
(390)
Income taxes refunded/(paid)
391
(20,246)
Net cash outflow from operating activities
(6,094,081)
(5,055,680)
Investing activities
Proceeds from disposal of subsidiaries
3,173,705
Proceeds from disposal of investments
5,061,415
(8,235,120)
Interest received
14
Dividends received
1,513,000
6,500,000
Net cash generated from investing activities
6,574,415
1,438,599
Financing activities
Dividends paid
(887,000)
(1,370,000)
Net cash used in financing activities
(887,000)
(1,370,000)
Net decrease in cash and cash equivalents
(406,666)
(4,987,081)
Cash and cash equivalents at beginning of year
593,910
5,580,991
Cash and cash equivalents at end of year
187,244
593,910
CITRINE NETWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
1
Accounting policies
Company information
Citrine Network Limited is a private company limited by shares incorporated in England and Wales. The registered office is 28-34, Albert Street, Birmingham, West Midlands, United Kingdom, B4 7UD.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
At the time of approving the financial statements, the directors have reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements. true
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
1.4
Tangible fixed assets
Tangible fixed assets are initially recorded at cost, and subsequently stated at cost less and accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent impairment loss.
Depreciation is calculated as to write off the cost or valuation of the asset, less its residual value, over the useful economic life of the asset.
Freehold land and buildings
Nil
Freehold property is not depreciated as it is the policy of the board to maintain the property in a good condition with costs being charge to profit and loss as they are incurred. The estimated residual value of the premises would result in any depreciation charge being of little significance.
1.5
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
CITRINE NETWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 12 -
1.6
Fixed asset investments
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
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.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors 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.
CITRINE NETWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
CITRINE NETWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
1.8
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 is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date between the company's taxable profits and the profits per the accounts, subject to the extent that it is regarded that there will be suitable taxable profits from which the future reversal of such timing differences can be deducted.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Rents receivable
77,375
87,250
2024
2023
£
£
Other revenue
Interest income
-
14
Dividends received
1,513,000
6,500,000
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
6,600
6,000
CITRINE NETWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
6,600
6,000
For other services
Taxation compliance services
230
230
All other non-audit services
790
645
1,020
875
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
14
Income from fixed asset investments
Income from shares in group undertakings
1,513,000
6,500,000
Total income
1,513,000
6,500,014
7
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Other interest
390
8
Amounts written off investments
2024
2023
£
£
Amounts written off investments in subsidiary undertakings
-
(3,173,705)
9
Employees
There were no staff costs for the year ended 31 March 2024, nor for the year ended 31 March 2023. The company did not employ any members of staff in the current or prior years.
10
Directors' remuneration
During the year directors received remuneration paid by subsidiary companies totalling £82,000 (2023: £71,211).
CITRINE NETWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
11
Impairments
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
2024
2023
Notes
£
£
In respect of:
Fixed asset investments
16
-
3,173,705
Recognised in:
Amounts written off investments
-
3,173,705
The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.
12
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
17,053
15,111
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
1,581,212
3,405,829
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
395,303
647,108
Tax effect of income not taxable in determining taxable profit
(378,250)
(1,235,000)
Amounts written off investments
603,003
Taxation charge for the year
17,053
15,111
13
Dividends
2024
2023
£
£
Interim paid
887,000
1,370,000
CITRINE NETWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
14
Tangible fixed assets
Freehold land and buildings
£
Cost
At 1 April 2023 and 31 March 2024
682,248
Depreciation and impairment
At 1 April 2023 and 31 March 2024
Carrying amount
At 31 March 2024
682,248
At 31 March 2023
682,248
15
Investment property
£
Fair value
At 1 April 2023 and 31 March 2024
230,440
Investment property comprises of land and buildings transferred from subsidiary company Talk Talk Mobile Phones Limited. The fair value of the investment property is based on the initial cost price of the premises in the books and records of the subsidiary, no formal valuation by third parties has taken place. The directors believe that cost price is still a true and fair reflection of the current value of the investment property.
CITRINE NETWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
16
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
17
35,302
35,302
Other investments
5,061,415
35,302
5,096,717
Movements in fixed asset investments
Shares in subsidiaries
Other
Total
£
£
£
Cost or valuation
At 1 April 2023
35,302
5,061,415
5,096,717
Disposals
-
(5,061,415)
(5,061,415)
At 31 March 2024
35,302
-
35,302
Carrying amount
At 31 March 2024
35,302
-
35,302
At 31 March 2023
35,302
5,061,415
5,096,717
17
Subsidiaries
Details of the company's subsidiaries at 31 March 2024 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
J T Retail Limited
England and Wales
Mobile phone retailing
Ordinary
100.00
MKJ Limited
England and Wales
Mobile phone retailing
Ordinary
100.00
Nexus Two Limited
England and Wales
Mobile phone retailing
Ordinary
100.00
Talk Talk Mobile Phones Limited
England and Wales
Mobile phone retailing
Ordinary
100.00
Talk Talk Mobile Phones Services Limited
England and Wales
Human resource services
Ordinary
100.00
On 27 September 2024 the company sold its investments in J T Retail Limited, Nexus Two Limited, Talk Talk Mobile Phones Limited and Talk Talk Mobile Phones Services Limited.
18
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
10,500
5,250
Amounts owed by group undertakings
407,834
878,200
Other debtors
16,262,726
11,143,583
16,681,060
12,027,033
CITRINE NETWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
19
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
276
230
Amounts owed to group undertakings
1,510,514
Corporation tax
32,555
15,111
Other taxation and social security
657
Other creditors
9,420
7,540
Accruals and deferred income
12,385
11,797
54,636
1,545,849
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A of £1 each
35,100
35,100
35,100
35,100
21
Profit and loss reserves
The profit and loss account includes all current and prior period retained profits, including dividends paid.
22
Related party transactions
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Other related parties
16,262,087
11,143,583
Other information
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' not to disclose related party transactions with wholly owned subsidiaries within the group.
23
Directors' transactions
Dividends totalling £887,000 (2023 - £1,370,000) were paid in the year in respect of shares held by the company's directors.
24
Ultimate controlling party
The ultimate controlling party is Mr S S Dhillon and Mrs B K Dhillon, by virtue of their shareholding in Citrine Network Limited.
CITRINE NETWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
25
Cash absorbed by operations
2024
2023
£
£
Profit for the year after tax
1,564,159
3,390,718
Adjustments for:
Taxation charged
17,053
15,111
Finance costs
390
Investment income
(1,513,000)
(6,500,014)
Other gains and losses
-
3,173,705
Movements in working capital:
Increase in debtors
(4,654,027)
(1,697,907)
Decrease in creditors
(1,508,657)
(3,417,047)
Cash absorbed by operations
(6,094,082)
(5,035,434)
26
Analysis of changes in net funds
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
593,910
(406,666)
187,244
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