Cartwright Group Limited |
Notes to the Accounts |
for the year ended 31 July 2024 |
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1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the rendering of services and is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
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Intangible fixed assets |
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Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. In view of the nature of technology any additions/replacements to Computers/IT is now written off as and when it is incurred, direct to profit and loss account. |
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Plant and machinery |
100% straight line |
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Investments |
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Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
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Leased assets |
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate. |
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2 |
Employees |
2024 |
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2023 |
Number |
Number |
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Average number of persons employed by the company |
43 |
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40 |
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3 |
Intangible fixed assets |
£ |
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Goodwill: |
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Cost |
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At 1 August 2023 |
1,300,081 |
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At 31 July 2024 |
1,300,081 |
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Amortisation |
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At 1 August 2023 |
1,300,081 |
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At 31 July 2024 |
1,300,081 |
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Net book value |
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At 31 July 2024 |
- |
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Goodwill represents value of investment by Cartwright Consulting Ltd (CCL) to acquire 100% shares in Barnes & Sherwood Ltd (B&S) for £946,780 and negative profit and loss account reserves of CCL of £200,346 and negative profit and loss account reserves of B&S of £68,481 resulting in a total figure of £1,215,610 plus CCL CT overpayment of £84,471 which was capitalised in 2016 accounts. |
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4 |
Tangible fixed assets |
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Plant and machinery etc |
£ |
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Cost |
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At 1 August 2023 |
241,237 |
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Additions |
18,566 |
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At 31 July 2024 |
259,803 |
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Depreciation |
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At 1 August 2023 |
241,237 |
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Charge for the year |
18,566 |
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At 31 July 2024 |
259,803 |
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Net book value |
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At 31 July 2024 |
- |
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5 |
Debtors |
2024 |
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2023 |
£ |
£ |
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Trade debtors |
725,522 |
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700,011 |
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Other debtors |
54,825 |
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39,389 |
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780,347 |
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739,400 |
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6 |
Creditors: amounts falling due within one year |
2024 |
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2023 |
£ |
£ |
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Trade creditors |
31,904 |
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74,959 |
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Amounts owed to related companies |
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924,404 |
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74,687 |
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Taxation and social security costs |
132,319 |
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90,823 |
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Other creditors and accruals |
1,907,744 |
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2,238,550 |
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2,996,371 |
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2,479,019 |
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7 |
Creditors: amounts falling due after one year |
2024 |
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2023 |
£ |
£ |
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Other creditors |
3,105,027 |
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3,030,777 |
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8 |
Other financial commitments |
2024 |
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2023 |
£ |
£ |
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Total future minimum payments under non-cancellable operating leases |
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82,254 |
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164,508 |
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9 |
Contingent liabilities |
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HMRC is enquiring into the Employee Benefit Trusts set up by the company and they have issued Accelerated Payment Notices. The directors have formed a view, after taking advice, that legal precedent is in the company’s favour and that it will be concluded that no additional taxation liabilities will arise to the company in respect of the Employee Benefit Trust contributions. However from a prudent point of view, for the 2010/11 EBT, company has made adequate provision of the tax liability in year end 31 July 2019 accounts and deferred tax asset in respect of this liability has not been recognised in accounts. This liability has been carried forward in year ended 31 July 2024 accounts. |
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10 |
Related party transactions |
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Loan of £1,650,000 is due to Calamero Ltd (loan given in Oct 2010), which is owned by Cartwright Group Employees Benefit Trusts of which Mr Cartwright is a beneficiary. Interest is payable at 4.50% i.e. £74,250 (2023-£74,250) and at year end £816,250 (2023-£742,500) was due for the interest charge. Cartwright Group Ltd (CGL) where Mr I Cartwright is a director and majority shareholder has charged £635,714 (2023-£923,364) for services provided on an arms length basis to Cartwright Benefit Consultants Ltd (CBC) where Mr I Cartwright is a director and Mrs Eileen Cartwright, (ex-spouse of Mr I Cartwright) is a sole shareholder. At year end, amount due to CBC was £553,960 (2023 £76,636) and this is reflected under creditors as amount owed to related companies. Cartwright Group Ltd (CGL) where Mr I Cartwright is a director and majority shareholder has charged £nil (2023-£1,949) for services provided on an arms length basis to Cartwright Financial Solutions Ltd (CBS) where Mrs Eileen Cartwright, (ex-spouse of Mr I Cartwright) is a sole shareholder. Cartwright Financial Solutions Ltd (CFS), where Mrs Eileen Cartwright, (ex-spouse of Mr I Cartwright) is a sole shareholder has charged £37,944 (2023-nil) for services provided on an arms length basis to Cartwright Group Ltd (CGL). shareholder. At year end, amount due to CFS was £370,444 (2023 £1,949 due from) and this is reflected under creditors as amount owed to related companies. |
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11 |
Controlling party |
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The ultimate controlling party is Mr Ian Cartwright in view of his majority holding of shares. |
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12 |
Other information |
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Cartwright Group Limited is a private company limited by shares and incorporated in England. Its registered office is: |
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250 Fowler Avenue |
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Farnborough Business Park |
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Farnborough |
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England |
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GU14 7JP |