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Registered Number:07328014














CASTLEGATE 624 LIMITED





ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

 
CASTLEGATE 624 LIMITED
 

COMPANY INFORMATION


Director
N J McGuirk 




Company secretary
N J McGuirk



Registered number
07328014



Registered office
Wildmere Road

Banbury

Oxfordshire

OX16 3JZ




Independent auditor
Anderson Anderson & Brown Audit LLP

Kingshill View

Prime Four Business Park

Kingswells

Aberdeen

AB15 8PU




Bankers
Lloyds Banking Group
25 Gresham Street

London

EC2V 7HN





 
CASTLEGATE 624 LIMITED
 

CONTENTS



Page
Group strategic report
1
Director's report
2
Director's responsibilities statement
3
Independent auditor's report
4 - 7
Consolidated profit and loss account
8
Consolidated statement of comprehensive income
9
Consolidated balance sheet
10 - 11
Company balance sheet
12
Consolidated statement of changes in equity
13
Company statement of changes in equity
14
Consolidated statement of cash flows
15 - 16
Consolidated analysis of net debt
16
Notes to the financial statements
17 - 35


 
CASTLEGATE 624 LIMITED
 

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024

Introduction
 
The principal activities of the Group are the design, manufacture and sale of lighting products through the
Dar, David Hunt and J&M Parker brands. In addition to this, the Group perform research and development activities in order to continually improve and innovate their products.

Business review
 
As shown on the Group's profit and loss account turnover in the year was £29.2m (2023 - £30.9m), with an operating profit of £1.3m (2023 - £1.1m). The profit is after incurring exceptional costs of £Nil (2023 - £0.4m). 
As shown on the Group's Balance Sheet, the financial position at the year end remained strong with net assets of £5.9m (2023 - £6.8m). 

Principal risks and uncertainties
 
Credit risk
The Group has exposure to credit risk from customer bad debt. The exposure is managed through a rigorous
credit control process.
Currency risk
The Group has exposure to foreign exchange markets, with fluctuations in key currencies impacting the
performance of the business. This exposure is managed by hedging forward contracts.
Economic risk
The state of the UK economy can impact the performance of the business. The Group primarily operates in the UK which is experiencing an uncertain economic outlook linked to continued turbulence from world events. Current UK economic policy will add significant costs from April 2025 and will impact the wider UK retail sector. Senior management will seek to mitigate this risk through restructure, purchasing and marketing strategies. 

Financial key performance indicators
 
The principal key performance indicators are to be those that communicate the financial performance of the
Group as a whole, these being sales and the gross margin percentage. 
Other key performance indicators
Additional key performance indicators include customer retention and efficiencies.


This report was approved by the board and signed on its behalf.



N J McGuirk
Director

Date: 25 February 2025

Page 1

 
CASTLEGATE 624 LIMITED
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 JUNE 2024


The director presents her report and the financial statements for the year ended 30 June 2024.

Results and dividends

The profit for the year, after taxation, amounted to £1.1m  (2023 - £0.7m).
The profit is after incurring exceptional costs of £NIL (2023 - £0.4m).
Dividends of £NIL (2023 - £0.04m) were paid during the year. 

Director

The director who served during the year was:

N J McGuirk 

Future developments

The director is confident of success and an increasing geographical presence over the next 12 months.

Disclosure of information to auditor

The director at the time when this Director's report is approved has confirmed that:
 
so far as she is aware, there is no relevant audit information of which the Company and the Group's auditor is unaware, and

she 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 and the Group's auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditor

The auditor, Anderson Anderson & Brown Audit LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





N J McGuirk
Director

Date: 25 February 2025

Page 2

 
CASTLEGATE 624 LIMITED
 

DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024

The director is responsible for preparing the Group strategic report, the Director's report and the consolidated financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless she is satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

In preparing these financial statements, the director is required to:

select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The director is 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 the Group and to enable her to ensure that the financial statements comply with the Companies Act 2006She is also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 3

 
CASTLEGATE 624 LIMITED
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CASTLEGATE 624 LIMITED
 

Opinion


We have audited the financial statements of Castlegate 624 Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 June 2024, which comprise the Consolidated profit and loss account, the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 30 June 2024 and of the Group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


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 Group 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


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


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


Page 4

 
CASTLEGATE 624 LIMITED
 

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CASTLEGATE 624 LIMITED (CONTINUED)

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 director is responsible for the other information contained within the Annual ReportOur 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.


Opinion 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 Group strategic report and the Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the Director's report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Director's report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of director's 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 Director's responsibilities statement set out on page 3, the director is 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 director determines 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 director is responsible for assessing the Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 5

 
CASTLEGATE 624 LIMITED
 

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CASTLEGATE 624 LIMITED (CONTINUED)

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 Group 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:

We obtained an understanding of the legal and regulatory frameworks within which the Group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. 
The laws and regulations we considered in this context were the Companies Act 2006 and UK Taxation legislation.

We identified the greatest risk of material impact on the financial statements from irregularities including fraud to be: 
Management override of controls to manipulate the Group's key performance indicators to meet targets
Timing and completeness of revenue recognition
Management judgement applied in calculating provisions
Compliance with relevant laws and regulations which directly impact the financial statements and those that the Group needs to comply with for the purpose of trading

Our audit procedures to respond to these risks included:

Testing of journal entries and other adjustments for appropriateness
Evaluating the business rationale of significant transactions outside the normal course of business
Reviewing judgements made by management in their calculation of accounting estimates for potential management bias
Enquiries of management about litigation and claims and inspection of relevant correspondence
Reviewing legal and professional fees to identify indications of actual or potential litigation, claims and any non-compliance with laws and regulations 
Analytical procedures to identify any unusual or unexpected trends or relationship;
Reviewing minutes of meetings of those charged with governance to identify any matters indicating actual or potential fraud;
Testing a sample of sales transactions to source documents and review of recognition around the year end

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 


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.


Page 6

 
CASTLEGATE 624 LIMITED
 

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CASTLEGATE 624 LIMITED (CONTINUED)

Use of our report
 

This report is made solely to the Group's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Group'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 Group and the Group's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Christopher Masson (Senior statutory auditor)
  
for and on behalf of
Anderson Anderson & Brown Audit LLP
 
Statutory Auditor
  
Kingshill View
Prime Four Business Park
Kingswells
Aberdeen
AB15 8PU

26 February 2025
Page 7

 
CASTLEGATE 624 LIMITED
 

CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2024

2024
2023
Note
£
£

  

Turnover
 4 
29,233,227
30,871,859

Cost of sales
  
(15,446,268)
(18,486,215)

Gross profit
  
13,786,959
12,385,644

Distribution costs
  
(2,324,837)
(2,540,453)

Administrative expenses
  
(10,150,610)
(8,359,235)

Exceptional administrative expenses
  
-
(423,660)

Operating profit
 5 
1,311,512
1,062,296

Interest receivable and similar income
 9 
3,560
41,828

Interest payable and similar expenses
 10 
(53,651)
(94,732)

Profit before tax
  
1,261,421
1,009,392

Tax on profit
 11 
(183,302)
(283,730)

Profit for the financial year
  
1,078,119
725,662

The notes on pages 17 to 35 form part of these financial statements.

Page 8

 
CASTLEGATE 624 LIMITED
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024

2024
2023
Note
£
£


Profit for the financial year

  

1,078,119
725,662

Other comprehensive income
  


Gains on cashflow hedges
  
61,319
(393,520)

Other comprehensive income for the year
  
61,319
(393,520)

Total comprehensive income for the year
  
1,139,438
332,142

  

The notes on pages 17 to 35 form part of these financial statements.

Page 9

 
CASTLEGATE 624 LIMITED
REGISTERED NUMBER:07328014

CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 15 
1,208,991
1,143,202

Tangible assets
 16 
456,170
2,230,940

  
1,665,161
3,374,142

Current assets
  

Stocks
 18 
6,707,167
6,094,705

Debtors: amounts falling due within one year
 19 
3,348,924
3,028,328

Cash at bank and in hand
  
599,900
697,973

  
10,655,991
9,821,006

Creditors: amounts falling due within one year
 20 
(5,263,739)
(5,113,137)

Net current assets
  
 
 
5,392,252
 
 
4,707,869

Total assets less current liabilities
  
7,057,413
8,082,011

Provisions for liabilities
  

Deferred taxation
 21 
(62,695)
(67,529)

Other provisions
 23 
(1,139,013)
(1,170,013)

  
 
 
(1,201,708)
 
 
(1,237,542)

Net assets
  
5,855,705
6,844,469

Page 10

 
CASTLEGATE 624 LIMITED
REGISTERED NUMBER:07328014

CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 30 JUNE 2024

2024
2023
Note
£
£

Capital and reserves
  

Called up share capital 
 22 
1,000
1,000

Revaluation reserve
  
1,787,789
1,787,789

Other reserves
  
16,221
(45,098)

Profit and loss account
  
4,050,695
5,100,778

Equity attributable to owners of the parent Company
  
5,855,705
6,844,469


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




N J McGuirk
Director

Date: 25 February 2025

The notes on pages 17 to 35 form part of these financial statements.

Page 11

 
CASTLEGATE 624 LIMITED
REGISTERED NUMBER:07328014

COMPANY BALANCE SHEET
AS AT 30 JUNE 2024

2024
2023
Note
£
£

Fixed assets
  

Investments
 17 
3,210,049
3,210,049

  
3,210,049
3,210,049

Current assets
  

Debtors: amounts falling due within one year
 19 
2,213
2,213

  
2,213
2,213

Creditors: amounts falling due within one year
 20 
(1,126,473)
(1,126,473)

Net current liabilities
  
 
 
(1,124,260)
 
 
(1,124,260)

Total assets less current liabilities
  
2,085,789
2,085,789

  

  

Net assets
  
2,085,789
2,085,789


Capital and reserves
  

Called up share capital 
 22 
1,000
1,000

Revaluation reserve
  
1,787,789
1,787,789

Profit and loss account
  
297,000
297,000

  
2,085,789
2,085,789


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


N J McGuirk
Director

Date: 25 February 2025

The notes on pages 17 to 35 form part of these financial statements.

Page 12

 
CASTLEGATE 624 LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024


Called up share capital
Revaluation reserve
Cash flow hedge reserve
Profit and loss account
Total equity

£
£
£
£
£


At 1 July 2022
1,000
1,787,789
348,422
7,151,685
9,288,896


Comprehensive income for the year

Profit for the year
-
-
-
725,662
725,662

EOT payment (Note 27)
-
-
-
(2,737,569)
(2,737,569)

Cash flow hedges - change in value of hedge instrument
-
-
(393,520)
-
(393,520)

Dividends: Equity capital
-
-
-
(39,000)
(39,000)



At 1 July 2023
1,000
1,787,789
(45,098)
5,100,778
6,844,469


Comprehensive income for the year

Profit for the year
-
-
-
1,078,119
1,078,119

EOT payment (Note 27)
-
-
-
(2,128,202)
(2,128,202)

Cash flow hedges - change in value of hedging instrument
-
-
61,319
-
61,319


At 30 June 2024
1,000
1,787,789
16,221
4,050,695
5,855,705


The notes on pages 17 to 35 form part of these financial statements.

Page 13

 
CASTLEGATE 624 LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024


Called up share capital
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£


At 1 July 2022
1,000
1,787,789
297,000
2,085,789


Comprehensive income for the year

Profit for the year
-
-
39,000
39,000

Dividends: Equity capital
-
-
(39,000)
(39,000)



At 1 July 2023
1,000
1,787,789
297,000
2,085,789


At 30 June 2024
1,000
1,787,789
297,000
2,085,789


The notes on pages 17 to 35 form part of these financial statements.

Page 14

 
CASTLEGATE 624 LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
1,078,119
725,662

Adjustments for:

Amortisation of intangible assets
251,473
219,747

Depreciation of tangible assets
130,050
167,941

Gain on disposal of tangible assets
(44,586)
-

Interest paid
53,651
94,732

Interest received
(3,560)
(41,828)

Taxation charge
183,302
283,730

(Increase)/decrease in stocks
(612,462)
1,674,927

(Increase)/decrease in debtors
(320,596)
620,892

Increase in creditors
18,828
452,865

(Decrease)/increase in provisions
(31,000)
340,000

Corporation tax (paid)
(320,036)
(189,650)

Non cash movement - change in value of cash flow hedge
61,319
(393,520)

Net cash generated from operating activities

444,502
3,955,498


Cash flows from investing activities

Purchase of intangible fixed assets
(317,262)
(58,971)

Purchase of tangible fixed assets
(60,693)
(145,382)

Sale of tangible fixed assets
1,750,000
-

Interest received
3,560
41,828

Net cash from investing activities

1,375,605
(162,525)
Page 15

 
CASTLEGATE 624 LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024


2024
2023

£
£



Cash flows from financing activities

Repayment of loans
-
(2,824,975)

Dividends paid
-
(39,000)

Interest paid
(53,651)
(94,732)

EOT Payment to Shareholders
(2,128,202)
(2,737,569)

Net cash used in financing activities
(2,181,853)
(5,696,276)

Net (decrease) in cash and cash equivalents
(361,746)
(1,903,303)

Cash and cash equivalents at beginning of year
697,973
2,601,276

Cash and cash equivalents at the end of year
336,227
697,973


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
599,900
697,973

Bank overdrafts
(263,673)
-

336,227
697,973



CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 JUNE 2024




At 1 July 2023
Cash flows
At 30 June 2024
£

£

£

Cash at bank and in hand

697,973

(98,073)

599,900

Bank overdrafts

-

(263,673)

(263,673)

Debt due within 1 year

(22,221)

(6,257)

(28,478)


675,752
(368,003)
307,749

The notes on pages 17 to 35 form part of these financial statements.

Page 16

 
CASTLEGATE 624 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

1.


General information

Castlegate 624 Limited is a private Company, limited by shares, incorporated in England and Wales. The registered office address is Wildmere Road, Banbury, Oxfordshire, OX16 3JZ.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and loss account in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated profit and loss account from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.3

Going concern

The financial statements have been prepared on a going concern basis. 
The director, having made due and careful enquiry and preparing forecasts, is of the opinion that the Group has adequate working capital to execute its operations over the next 12 months.  The financial projections take into account sensitivities around consumer demand, supplier cost increases and the ability to pass on such increases to their customers. The director therefore has made an informed judgement, at the time of approving the financial statements, that the Group has adequate resources to continue in operational existence for the foreseeable future. As a result, the director has continued to adopt the going concern basis of accounting in preparing the annual financial statements.

Page 17

 
CASTLEGATE 624 LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Group's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.6

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 18

 
CASTLEGATE 624 LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.7

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.8

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Group but are presented separately due to their size or incidence.

 
2.9

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.10

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.11

Hedge accounting

The Group has entered into foreign exchange forward contracts to manage its exposure to
exchange rate risk. These derivatives are measured at fair value at each balance sheet date. To the
extent the hedge is effective, movements in fair value are recognised in other comprehensive income
and presented in a seperate cash flow hedge reserve. Any ineffective portion of those movements
are recognised in profit or loss for the period. 

 
2.12

Intangible assets

Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Profit and loss account over its useful economic life of 20 years.
Software development costs
Software development costs are capitalised within intangible assets where they can be identified with a specific product or project anticipated to produce future benefits, and are amortised on the straight-line basis over the anticipated life of the benefits arising from the completed product or project, of 10 years. 
Deferred research and development costs are reviewed annually, and where future benefits are deemed to have ceased or to be in doubt, the balance of any related research and development is written off to profit or loss. 

Page 19

 
CASTLEGATE 624 LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.13

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, as follows.

Depreciation is provided on the following basis:

Freehold property
-
Not depreciated
Leasehold improvements
-
Over the term of the lease
Plant and machinery
-
10% straight line
Motor vehicles
-
20% straight line
Office equipment
-
20% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment

 
2.15

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value after making due
allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate
proportion of fixed and variable overheads.


  
2.16

Termination benefits

As termination benefits do not provide the Group with future economic benefits they shall be recognised as an expense in profit or loss immediately.
When a Company recognises termination benefits, the Company may also have to account for a curtailment of retirement benefits or other employee benefits.
An entity shall recognise termination benefits as a liability and an expense only when the entity is demonstrably committed either:
 
to terminate the employment of an employee or group of employees before the normal retirement date; or
to provide termination benefits as a result of an offer made in order to encourage voluntary redundancy.

An entity is demonstrably committed to a termination only when the entity has a detailed formal plan for the termination and is without realistic possibility of withdrawal from the plan.
 
Page 20

 
CASTLEGATE 624 LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.17

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Group's Balance sheet when the Group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
 
Page 21

 
CASTLEGATE 624 LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)


2.17
Financial instruments (continued)


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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.

Page 22

 
CASTLEGATE 624 LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

  
2.18

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss, as described below.
Non-financial assets
The recoverable amount of a non-financial asset is the higher of its fair value less costs to sell and its value in use. An asset is impaired where the estimated recoverable value of the asset has been reduced.
The recoverable amount of goodwill is derived from measurement of the present value of the future cashflows of the cash-generating units (“CGUs”) of which the goodwill is part. Any impairment loss is allocated first to the goodwill attached to that CGU, and thereafter to other assets within that CGU on a pro-rata basis.
Financial assets
Financial assets that are measured at cost or amortised cost are assessed at the end of each reporting period for objective evidence of impairment. The impairment loss is measured as the difference between a financial asset's carrying amount and the present value of estimated future cash flows, discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the related contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the Board’s best estimate of its value, with the latter being an approximation of the amount that the Group would receive for the asset if it were to be sold at the reporting date.

 
2.19

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Group in independently administered funds.

 
2.20

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 23

 
CASTLEGATE 624 LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.21

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


 
2.22

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

 
2.23

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.24

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.25

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 24

 
CASTLEGATE 624 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Group's accounting policies, the directors (or management) 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Stock provision
Key estimates are applied in establishing the value of stock held by the Company and in particular the level of stock provisions for slow moving stock. An assessment is performed at each reporting date and a stock provision is recognised when product lines are no longer being sold by major retailers or are slow moving for any other reason. These provisions are consistently applied year on year and will be based on a provision of between 25% and 100% depending on the specific product, the likelihood of selling the product and the expected reduction in selling price required to sell the volume of stock held. The net value of stock, after accounting for a stock provision, as at 30 June 2024 was £6.7m (2023 - £6.1m).  Refer to note 18. 
Dilapidations
Certain leases entered into by the Company include clauses obliging the Company to return the property
in the condition at the date of entry into the lease. The costs to bring the property back to that condition
cannot be confirmed until the Company leaves the property and accordingly estimates are prepared at
each reporting date. The Company has estimated the value of such dilapidations as at 30 June 2024 at
£1.1m (2023 - £1.2m). Refer to note 23.
Debtor provision
Key estimates are applied in establishing the value of potential bad debt held by the Company. An
assessment is performed at each reporting date. The net value of trade debtors, after taking allowance for a bad debt provision, as at 30 June 2024 was £2.5m (2023 - £2.1m). Refer to note 19.
 


4.


Turnover

The whole of the turnover is attributable to the Group's principal activity.

Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
26,656,070
28,245,170

Rest of Europe
2,190,146
2,479,552

Rest of the world
387,011
147,137

29,233,227
30,871,859


Page 25

 
CASTLEGATE 624 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Exchange differences
31,631
(229,403)

Other operating lease rentals
1,172,454
1,209,883


6.


Auditor's remuneration

2024
2023
£
£

Fees payable to the Group's auditor for the audit of the Group's annual financial statements
38,480
35,750


7.


Employees

Staff costs, including director's remuneration, were as follows:


Group
Group
2024
2023
£
£


Wages and salaries
5,997,745
5,507,720

Social security costs
611,474
527,159

Cost of defined contribution scheme
180,472
162,171

6,789,691
6,197,050


The average monthly number of employees, including the director, during the year was as follows:


        2024
        2023
            No.
            No.







Admin
71
81



Production/Despatch
98
86



Directors
1
1

170
168

Page 26

 
CASTLEGATE 624 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

8.


Director's remuneration

2024
2023
£
£

Director's emoluments
156,394
161,498

156,394
161,498



9.


Interest receivable

2024
2023
£
£


Bank interest receivable
3,560
41,828


10.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
53,651
94,732


11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
268,711
400,516

Adjustments in respect of previous periods
(80,575)
(51,247)


188,136
349,269


Total current tax
188,136
349,269

Deferred tax


Origination and reversal of timing differences
(22,974)
(79,808)

Adjustments in respect of prior periods
18,140
14,269

Total deferred tax
(4,834)
(65,539)


Taxation on profit on ordinary activities
183,302
283,730
Page 27

 
CASTLEGATE 624 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 20.5%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
1,261,421
1,009,392


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 20.5%)
315,355
206,925

Effects of:


Fixed asset differences
(24,495)
13,644

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
26,155
114,518

Adjustments to tax charge in respect of prior periods
(80,575)
(51,247)

Adjustments to tax charge in respect of prior periods - deferred tax
18,140
14,269

Remeasurement of deferred tax for change in tax rates
-
(14,379)

Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge
(82,425)
-

Chargeable gains
11,147
-

Total tax charge for the year
183,302
283,730


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


12.


Dividends

2024
2023
£
£


Dividends paid
-
39,000

Page 28

 
CASTLEGATE 624 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

13.


Exceptional items

2024
2023
£
£


Costs in relation to Employee Ownership Trust
-
92,216

Exceptional one-off employee payments
-
298,931

Redundancy payments
-
32,513

-
423,660


14.


Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and loss account in these financial statements. The profit after tax of the parent Company for the year was £NIL (2023 - £0.04m).


15.


Intangible assets

Group and Company





Development expenditure
Goodwill
Total

£
£
£



Cost


At 1 July 2023
2,005,471
616,000
2,621,471


Additions
317,262
-
317,262



At 30 June 2024

2,322,733
616,000
2,938,733



Amortisation


At 1 July 2023
936,020
542,249
1,478,269


Charge for the year on owned assets
222,173
29,300
251,473



At 30 June 2024

1,158,193
571,549
1,729,742



Net book value



At 30 June 2024
1,164,540
44,451
1,208,991



At 30 June 2023
1,069,451
73,751
1,143,202



Page 29

 
CASTLEGATE 624 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

16.


Tangible fixed assets

Group






Freehold property
Long-term leasehold property
Plant and machinery
Motor vehicles
Office equipment
Total

£
£
£
£
£
£



Cost or valuation


At 1 July 2023
1,705,414
861,618
1,343,155
193,158
2,343,418
6,446,763


Additions
-
15,025
-
15,000
30,668
60,693


Disposals
(1,705,414)
-
(16,242)
-
-
(1,721,656)



At 30 June 2024

-
876,643
1,326,913
208,158
2,374,086
4,785,800



Depreciation


At 1 July 2023
-
598,589
1,268,328
130,378
2,218,528
4,215,823


Charge for the year
-
53,537
15,748
7,772
52,992
130,049


Disposals
-
-
(16,242)
-
-
(16,242)



At 30 June 2024

-
652,126
1,267,834
138,150
2,271,520
4,329,630



Net book value



At 30 June 2024
-
224,517
59,079
70,008
102,566
456,170



At 30 June 2023
1,705,414
263,029
74,827
62,780
124,890
2,230,940

Page 30

 
CASTLEGATE 624 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

17.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 July 2023
3,210,049



At 30 June 2024
3,210,049





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Dar Lighting Limited
Wildmere Road, Banbury, Oxfordshire, OX16 3JZ
Design, manufacture and sale of lighting
Ordinary
100%
David Hunt Lighting Limited
Wildmere Road,Banbury, Oxfordshire, OX16 3JZ
Dormant
Ordinary
100%
Solus Lighting Limited
Wildmere Road,Banbury, Oxfordshire, OX16 3JZ
Dormant
Ordinary
100%
DAR Lighting (Ireland) Limited
Paramount Court, Corrig Road, Sandyford Business Park, Dublin 18
Dormant
Ordinary
100%

Där Lighting Limited is the only direct subsidiary of Castlegate 624 Limited. The other subsidiaries
listed above are subsidiaries of Där Lighting Limited.


18.


Stocks

Group
Group
2024
2023
£
£

Raw materials and consumables
211,092
247,207

Work in progress (goods to be sold)
88,131
95,622

Finished goods and goods for resale
6,407,944
5,751,876

6,707,167
6,094,705


The difference between purchase price or production cost of stocks and their replacement cost is not material.

Page 31

 
CASTLEGATE 624 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

19.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Trade debtors
2,526,731
2,137,104
-
-

Other debtors
21,434
5,213
2,213
2,213

Prepayments and accrued income
800,759
886,011
-
-

3,348,924
3,028,328
2,213
2,213


Other debtors include derivative financial assets representing foreign exchange forward contracts included at the year end market value of £0.02m (2023 - £Nil). All contracts are due to mature within a year.


20.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Bank overdrafts
263,673
-
-
-

Trade creditors
2,033,331
2,107,454
-
-

Amounts owed to group undertakings
-
-
1,126,473
1,126,473

Corporation tax
268,710
400,610
-
-

Other taxation and social security
657,760
601,257
-
-

Other creditors
466,171
412,023
-
-

Accruals and deferred income
1,574,094
1,591,793
-
-

5,263,739
5,113,137
1,126,473
1,126,473


Secured loans
Bank borrowings are secured, under the terms of an unlimited debenture dated 3 July 2013 from the Group in favour of Lloyds Bank. An omnibus guarantee exists in favour of Lloyds Bank between Där Lighting Limited, Castlegate 364 Limited, Solus Lighting Limited and David Hunt Lighting Limited. A fixed and floating charge over the company's assets is dated 14 April 2023. 
Borrowings under an invoice discounting facility included in Bank overdrafts are secured over certain trade debtor balances.
Other creditors
Other creditors include derivative financial liabilities representing foreign exchange forward contracts included at the year end market value of £Nil (2023 - £0.04m). All contracts are due to mature within 1 year. Refer to Note 19 for current year contracts.

Page 32

 
CASTLEGATE 624 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

21.


Deferred taxation


Group



2024
2023


£

£






At beginning of year
67,529
133,068


Charged to profit or loss
(4,834)
(65,539)



At end of year
62,695
67,529

Group
Group
2024
2023
£
£

Accelerated capital allowances
156,374
149,276

Other timing differences
(93,679)
(81,747)

62,695
67,529


22.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



95,000 (2023 - 95,000) A Ordinary shares of £0.01 each
950
950
5,000 (2023 - 5,000) B Ordinary shares of £0.01 each
50
50

1,000

1,000

A shares have full voting and distribution rights. B shares have restricted rights as set out in the Articles
of Association and are non-voting shares.


Page 33

 
CASTLEGATE 624 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

23.


Other provisions


Group



Dilapidation provision

£





At 1 July 2023
1,170,013


Utilised in year
(31,000)



At 30 June 2024
1,139,013

The Group has made a provision for expected dilapidations, being the best estimate for the expected cost of returning the buildings to their original condition at the end of the leases. 


24.


Pension commitments

The Group contributes to defined contribution pension schemes. The assets are held separately from those of the Group in independently administered funds. The pension cost charge represents contributions payable by the Group to the funds and amounted to £0.2m (2023 - £0.1m). Contributions totaling £0.03m (2023 - £0.02m) were payable to the fund at the year end and is included within other creditors.


25.


Commitments under operating leases

At 30 June 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2024
2023
£
£

Not later than 1 year
961,295
912,499

Later than 1 year and not later than 5 years
1,914,192
1,840,977

Later than 5 years
267,833
373,333

3,143,320
3,126,809

26.Other financial commitments

At 30 June 2024, the Group had forward exchange currency contract commitments of $3.9m (2023 - $6.9m).

Page 34

 
CASTLEGATE 624 LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

27.


Employee ownership trust

On 14th April 2023, the DAR Lighting Employee Ownership Trust (‘EOT’) purchased 90% of the ordinary share capital of the parent company, Castlegate 624 Limited, following which the Company is now an ‘employee owned’ company. The payments made as distributions to the EOT are shown as a deduction from reserves.


28.


Related party transactions

During the year the Group paid £0.1m (2023 - £0.1m) rent to a director's personal pension scheme.
The Company and Group have taken advantage of the exemption in FRS 102 Section 33.1A to not disclose transactions with wholly owned group entities.


Page 35