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Registration number: 09192805

Carbide Properties Limited

Annual Report and Consolidated Financial Statements

for the Period from 1 March 2023 to 31 August 2024

 

Carbide Properties Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4 to 5

Statement of Directors' Responsibilities

6

Independent Auditor's Report

7 to 10

Consolidated Profit and Loss Account and Statement of Retained Earnings

11

Consolidated Balance Sheet

12

Balance Sheet

13

Consolidated Statement of Cash Flows

14 to 15

Notes to the Financial Statements

16 to 40

 

Carbide Properties Limited

Company Information

Directors

D. J. Sear-Mayes

J. D. Penman

Registered office

Gateway House
4 Penman Way
Grove Park
Leicester
LE19 1SY

Auditors

Robert Whowell & Partners LLP Westwood House
78 Loughborough Road
Quorn
Loughborough
Leicestershire
LE12 8DX

 

Carbide Properties Limited

Strategic Report for the period from 1 March 2023 to 31 August 2024

The directors present their strategic report for the period from 1 March 2023 to 31 August 2024.

Principal activity

The principal activity of the group is property development.

Fair review of the business

The directors continue to successfully invest in commercial property development and seek new development opportunities.

The company year end was extended by six months and therefore the group presents an eighteen month period in these financial statements. During this period the group maintained an expected gross profit margin of 15%. Even though turnover and gross profit are relatively low compared to the previous twelve month period, the directors are satisfied with the performance and a stable net asset position.

The group's key financial and other performance indicators during the period were as follows:

Financial KPIs

Unit

2024

2023

Turnover

£'000

51,355

50,602

Gross profit

£'000

7,609

7,584

Gross profit

%

15

15

Profit before tax

£'000

3,082

4,040

Net assets

£'000

18,386

18,093

Principal risks and uncertainties

The management of the business and the nature of the group's strategies are subject to a number of risks.

The directors have set out below the principal risks facing the business. The directors are of the opinion that a thorough risk management process is adopted which involves the formal review of all risks identified below. Where possible, processes are in place to monitor and mitigate such risks.

The principal risks are the economic downturn due to market uncertainties; the impact of this has had serious consequences on the economic conditions and consequently commercial decision making. The directors mitigate these risks by constantly monitoring the market, costs, strategies and pricing.

Section 172(1) statement

The directors will continue to operate the business efficiently and in line with their regulatory duties.

The employees are fundamental to the delivery of the group strategy, with their safety, health and well-being as one of the primary considerations in the way we do business. The group aims to be a responsible employer in its approach to pay and benefits.

 

Carbide Properties Limited

Strategic Report for the period from 1 March 2023 to 31 August 2024

The group's duty is to provide a quality product which meets and exceeds the customers' expectations. The strategy was informed by engagement with customers, enabling the group to gain an understanding of their views and priorities. The directors aim to act responsibly and fairly in how we engage with our suppliers who are integral to the successful delivery of our plan.

The directors' strategy considers the impact of the group's operations on the local community and environment and our wider social responsibilities.

The directors' intention is to behave responsibly and ensure the business is operated in an ethical manner.

The directors' purpose is to behave responsibly toward our shareholders and treat them fairly, so they too may benefit from the successful delivery of our strategy.

The directors of the group consider, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the group for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172 (1) (a-f) of the Companies Act 2006) in the decisions taken during the year.

Engagement with employees

We recognise that our employees are key to the success of our business and engaging with them is of critical importance in maintaining strong business delivery in times of change. We strive to maintain strong communication between all levels of our employees. We regularly engage with the employees through a range of formal and informal channels.

The directors consider effective engagement a key element of its understanding of the company's ability to create value. Employee views can help inform the Board on matters such as operational effectiveness, culture, risk identification and strategy development and delivery. The Board considers the current employee engagement approach to be effective.

Engagement with suppliers, customers and other relationships

Delivering our strategy requires strong mutually beneficial relationships with both our suppliers and customers. The company seeks to promote the high level of and application of certain general principles in such relationships, and these shared beliefs help to underpin the relationship. The ability to promote these principles effectively is an important factor in the decision to enter into or remain in such relationships.

Approved and authorised by the Board on 23 May 2025 and signed on its behalf by:
 

.........................................
D. J. Sear-Mayes
Director

 

Carbide Properties Limited

Directors' Report for the Period from 1 March 2023 to 31 August 2024

The directors present their report and the for the period from 1 March 2023 to 31 August 2024.

Directors of the group

The directors who held office during the period were as follows:

D. J. Sear-Mayes

J. D. Penman

Financial instruments

Objectives and policies

The group uses various financial instruments which include bank balances, capital loans, bank loans and connected party loans that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the group's operations. Their existence exposes the group to a number of financial risks.

The main risks arising from the financial instruments are interest rate risk, liquidity risk and cash flow risk. The directors review and agree policies for managing each of these risks which are summarised below. These policies have remained unchanged from previous years.

Price risk, credit risk, liquidity risk and cash flow risk

Interest rate risk; the group finances its operations through a mixture of borrowings and retained earnings. The group's exposure to interest rate fluctuations on its borrowings is managed by the use of fixed and floating facilities. The group policy throughout the year has been to achieve its objective through the day to day involvement of management in business decisions rather than through setting maximum or minimum policies for the level of fixed interest rate borrowings.

Liquidity and cash flow risk; the group seeks to manage risk by ensuring sufficient liquidity is available to meet forseeable needs and to invest cash assets safely and profitably.

Environmental matters

The group has emphasised waste reduction and energy efficiency, particular in respect of all property developments. The group is not required to disclose greenhouse gas emissions, energy consumption and energy efficiency as the consumption is less than 40,000 kWh of energy per annum.

Future developments

The group continues to seek development opportunities throughout the UK.

 

Carbide Properties Limited

Directors' Report for the Period from 1 March 2023 to 31 August 2024

Going concern

The directors have considered the future operating profits, cash flows and facilities available to the group, including the impact on the cost of living crisis.

The impact of the cost of living crisis to economic activity and the resulting uncertainty may have an impact on the group's ability to deliver forecasts, support projects and in the highly unlikely event, fail to secure additional or renewed funding where necessary.

The directors have concluded the group has adequate resources and the necessary means to continue as a going concern in the normal course of business for the forseeable future. For these reasons, they continue to adopt the going concern basis of accounting in preparing these financial statements.

A non adjusting post balance sheet event occured on 17 December 2024 where the parent company and the group were acquired by an Employee Ownership Trust, governed by Carbide Properties Trustee Limited.

Disclosure of information to the auditor

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Approved and authorised by the Board on 23 May 2025 and signed on its behalf by:
 

.........................................
D. J. Sear-Mayes
Director

 

Carbide Properties Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements 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; and

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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Carbide Properties Limited

Independent Auditor's Report to the Members of Carbide Properties Limited

Opinion

We have audited the financial statements of Carbide Properties Limited (the 'parent company') and its subsidiaries (the 'group') for the period from 1 March 2023 to 31 August 2024, which comprise the Consolidated Profit and Loss Account and Statement of Retained Earnings, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the group's and the parent company's affairs as at 31 August 2024 and of the group's profit for the period 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 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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

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

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

 

Carbide Properties Limited

Independent Auditor's Report to the Members of Carbide Properties Limited

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Strategic Report and Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

We have nothing to report in respect of the following matters where 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 directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 6], 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.

 

Carbide Properties Limited

Independent Auditor's Report to the Members of Carbide Properties Limited

Auditor Responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:

enquiring of management, including obtaining and reviewing supporting documentation, concerning the group and parent company's policies and procedures relating to: identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; detecting and responding to the risks of fraud and whether they had knowledge of any actual, suspected or alleged fraud; and the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.

we obtained an understanding of the legal and regulatory frameworks applicable to the group and parent company based on our understanding of sector experience and discussions with management. The most significant considerations for the group and parent company are the Companies Act 2006, Corporate and VAT legislation, Employment Taxes, Health and Safety and the Bribery Act 2010.

discussing amongst the engagement team, who also undertook the audit testing on significant components, to assess how and where fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion, we identified potential for fraud in the following areas: management override of control; and revenue recognition, specifically the manipulation of revenue using fraudulent journals.

we tested the appropriateness of accounting journals and other adjustments made in the preparation of the financial statements.

we reviewed the group and parent company's accounting policies for non-compliance with relevant standards. Our work also included considering significant accounting estimates for evidence of misstatement or possible bias and testing any significant transactions that appeared to be outside the normal course of business.

we critically assessed the appropriateness and tested the application of the revenue policies.

 

Carbide Properties Limited

Independent Auditor's Report to the Members of Carbide Properties Limited

 

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that 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, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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

Use of our report

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

..................................................................................
Paul Johnson FCA (Senior Statutory Auditor)
For and on behalf of Robert Whowell & Partners LLP, Statutory Auditor
 Westwood House
78 Loughborough Road
Quorn
Loughborough
Leicestershire
LE12 8DX

23 May 2025

 

Carbide Properties Limited

Consolidated Profit and Loss Account and Statement of Retained Earnings for the Period from 1 March 2023 to 31 August 2024

Note

1 March 2023
to 31 August
2024
£

Year ended
28 February
2023
£

Turnover

3

51,355,139

50,602,167

Cost of sales

 

(43,746,204)

(43,017,670)

Gross profit

 

7,608,935

7,584,497

Administrative expenses

 

(4,537,441)

(3,619,017)

Operating profit

4

3,071,494

3,965,480

Other interest receivable and similar income

5

37,609

91,955

Interest payable and similar charges

6

(27,453)

(17,692)

 

10,156

74,263

Profit before tax

 

3,081,650

4,039,743

Taxation

10

(838,173)

(788,804)

Profit for the financial period

 

2,243,477

3,250,939

Profit/(loss) attributable to:

 

Owners of the company

 

2,243,477

3,250,939

Retained earnings brought forward

 

18,092,502

15,241,563

Dividends paid

 

(1,950,000)

(400,000)

Retained earnings carried forward

 

18,385,979

18,092,502

 

Carbide Properties Limited

(Registration number: 09192805)
Consolidated Balance Sheet as at 31 August 2024

Note

31 August
2024
£

28 February
2023
£

Fixed assets

 

Intangible assets

11

-

92,688

Tangible assets

12

411,040

147,833

Investments

13

700

600

 

411,740

241,121

Current assets

 

Stocks

14

14,516,841

9,200,669

Debtors

15

9,873,600

22,403,622

Cash at bank and in hand

16

7,279,583

8,013,098

 

31,670,024

39,617,389

Creditors: Amounts falling due within one year

17

(13,657,658)

(21,742,575)

Net current assets

 

18,012,366

17,874,814

Total assets less current liabilities

 

18,424,106

18,115,935

Creditors: Amounts falling due after more than one year

17

(7,420)

(23,333)

Provisions for liabilities

18

(30,607)

-

Net assets

 

18,386,079

18,092,602

Capital and reserves

 

Called up share capital

20

100

100

Retained earnings

21

18,385,979

18,092,502

Equity attributable to owners of the company

 

18,386,079

18,092,602

Shareholders' funds

 

18,386,079

18,092,602

Approved and authorised by the Board on 23 May 2025 and signed on its behalf by:
 

.........................................
D. J. Sear-Mayes
Director

 

Carbide Properties Limited

(Registration number: 09192805)
Balance Sheet as at 31 August 2024

Note

31 August
2024
£

28 February
2023
£

Fixed assets

 

Intangible assets

11

-

92,688

Tangible assets

12

411,040

147,833

Investments

13

2,502

902,792

 

413,542

1,143,313

Current assets

 

Stocks

14

1,058,476

2,587,587

Debtors

15

15,503,403

23,149,309

Cash at bank and in hand

16

546,134

4,791,477

 

17,108,013

30,528,373

Creditors: Amounts falling due within one year

17

(2,704,219)

(19,307,898)

Net current assets

 

14,403,794

11,220,475

Total assets less current liabilities

 

14,817,336

12,363,788

Creditors: Amounts falling due after more than one year

17

(7,420)

(23,333)

Provisions for liabilities

18

(30,607)

-

Net assets

 

14,779,309

12,340,455

Capital and reserves

 

Called up share capital

20

100

100

Retained earnings

21

14,779,209

12,340,355

Shareholders' funds

 

14,779,309

12,340,455

The company made a profit after tax for the financial period of £4,388,854 (2023 - profit of £2,989,076).

Approved and authorised by the Board on 23 May 2025 and signed on its behalf by:
 

.........................................
D. J. Sear-Mayes
Director

 

Carbide Properties Limited

Consolidated Statement of Cash Flows for the Period from 1 March 2023 to 31 August 2024

Note

1 March 2023
to 31 August
2024
£

Year ended
28 February
2023
£

Cash flows from operating activities

Profit for the period

 

2,243,477

3,250,939

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

216,207

125,928

Profit on disposal of tangible assets

-

(500)

Finance income

5

(37,609)

(91,955)

Finance costs

6

27,453

17,692

Income tax expense

10

838,173

788,804

 

3,287,701

4,090,908

Working capital adjustments

 

(Increase)/decrease in stocks

14

(5,316,172)

5,945,312

Decrease/(increase) in debtors

15

12,530,022

(8,878,819)

Decrease in creditors

17

(11,997,311)

(43,186)

Cash generated from operations

 

(1,495,760)

1,114,215

Income taxes paid

10

(1,045,622)

(913,506)

Net cash flow from operating activities

 

(2,541,382)

200,709

Cash flows from investing activities

 

Interest received

5

37,609

91,955

Acquisitions of tangible assets

12

(386,726)

(99,143)

Proceeds from sale of tangible assets

 

-

11,289

Investment additions

 

(100)

(200)

Net cash flows from investing activities

 

(349,217)

3,901

Cash flows from financing activities

 

Interest paid

6

(27,453)

(17,692)

Bank borrowing repayments

 

(15,913)

(10,000)

New loans

 

4,150,450

1,008,259

Dividends paid

(1,950,000)

(400,000)

Net cash flows from financing activities

 

2,157,084

580,567

Net (decrease)/increase in cash and cash equivalents

 

(733,515)

785,177

 

Carbide Properties Limited

Consolidated Statement of Cash Flows for the Period from 1 March 2023 to 31 August 2024

Note

1 March 2023
to 31 August
2024
£

Year ended
28 February
2023
£

Opening cash and cash equivalents

16

8,013,098

7,227,921

Closing cash and cash equivalents

16

7,279,583

8,013,098

 

Carbide Properties Limited

Notes to the Financial Statements for the Period from 1 March 2023 to 31 August 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Gateway House
4 Penman Way
Grove Park
Leicester
LE19 1SY

These financial statements were authorised for issue by the Board on 23 May 2025.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention.

 

Carbide Properties Limited

Notes to the Financial Statements for the Period from 1 March 2023 to 31 August 2024

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 August 2024.

A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the profit and loss account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Disclosure of long or short period

The company year end was extended by six months from 28 February to 31 August 2024.

Judgements

Going concern; the directors have used a degree of judgement in forecasting results beyond the immediate future which are in many cases contingent on the approvals of third parties in connection with planned property developments.

 

Carbide Properties Limited

Notes to the Financial Statements for the Period from 1 March 2023 to 31 August 2024

Key sources of estimation uncertainty

Estimates are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Although these estimates are managment's best knowledge of the amount, events or actions, actual amounts may ultimately differ from those estimates.

Long term contracts; recognised profits and turnover. The directors have used the input method on percentage of completion for recognition of long term contracts. In making these assessments there is a degree of inherent uncertainty.

Long term contracts; work in progress. The directors have used the input method on percentage of completion for recognition of long term contracts. In making these assessments there is a degree of inherent uncertainty. The carrying amount is £14,516,841 (2023 -£6,950,269).

Long term contracts; amounts recoverable. The directors have used the input method on percentage of completion for recognition of long term contracts. In making these assessments there is a degree of inherent uncertainty. The carrying amount is £Nil (2023 -£14,736,731).

Long term contracts; payments on account. The directors have used the input method on percentage of completion for recognition of long term contracts. In making these assessments there is a degree of inherent uncertainty. The carrying amount is £159,039 (2023 -£268,014).

Long term contracts; forseeable losses. The directors have assessed the future likely outcome of specific contracts. In making these assessments there is a degree of inherent uncertainty. These are included in trade creditors. The carrying amount is £475,401 (2023 -£2,648,686).

Long term contracts; costs to be completed. The directors have used the input method on percentage of completion for recognition of long term contracts. In making these assessments there is a degree of inherent uncertainty. These are included in trade creditors. The carrying amount is £150,335 (2023 -£8,442,418).

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of commercial developments in the ordinary course of the group’s activities. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the group.

The group recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the group's activities.

 

Carbide Properties Limited

Notes to the Financial Statements for the Period from 1 March 2023 to 31 August 2024

Contract revenue recognition

Turnover and profits on long term contracts are recognised in proportion to the stage of completion reached when the outcome of the contract can be assessed with reasonable certainty. The directors have used the input method on percentage of completion for recognition of long term contract turnover.

This is recognised when all of the following conditions are satisfied:
- the amount of turnover can be measured reliably;
- it is probable that the group will receive the consideration due under the contract;
- the stage of completion of the contract at the end of the reporting period can be measured reliably; and
- the costs incurred and the costs to complete the contract can be measured reliably.

The accounting treatments are:
- amounts recoverable on contracts are included within debtors;
- amounts invoiced in excess of amounts recoverable on contracts are included within creditors;
- forseeable losses are included within creditors;
- costs to complete are included within creditors;
- costs, net of amounts transferred to cost of sales, are included within work in progress.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when 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.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

 

Carbide Properties Limited

Notes to the Financial Statements for the Period from 1 March 2023 to 31 August 2024

Depreciation

Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Furniture, fittings and equipment

Five years straight line

Motor vehicles

Three years straight line

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

Seven years straight line

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in the profit and loss account. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

 

Carbide Properties Limited

Notes to the Financial Statements for the Period from 1 March 2023 to 31 August 2024

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the debtor.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

Contract work in progress comprises costs incurred less costs recognised as contract expenses.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges. Where interest is incurred on borrowings that relate to specific developments, interest is capitalised within contract work in progress.

Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

 

Carbide Properties Limited

Notes to the Financial Statements for the Period from 1 March 2023 to 31 August 2024

Dividends

Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Turnover

The analysis of the group's Turnover for the period from continuing operations is as follows:

1 March 2023
to 31 August
2024
£

Year ended
28 February
2023
£

Commercial property developments

51,355,139

50,602,167

The amount of contract revenue recognised as turnover in the period was £51,355,139 (2023 - £50,602,167). The directors have used the input method on percentage of completion for recognition of long term contract turnover and contracts in progress.

4

Operating profit

Arrived at after charging/(crediting):

1 March 2023
to 31 August
2024
£

Year ended
28 February
2023
£

Depreciation

123,519

40,369

Amortisation

92,688

85,559

Profit on disposal of property, plant and equipment

-

(500)

 

Carbide Properties Limited

Notes to the Financial Statements for the Period from 1 March 2023 to 31 August 2024

5

Other interest receivable and similar income

1 March 2023
to 31 August
2024
£

Year ended
28 February
2023
£

Other finance income

37,609

91,955

6

Interest payable and similar expenses

1 March 2023
to 31 August
2024
£

Year ended
28 February
2023
£

Interest on bank overdrafts and borrowings

-

280

Interest expense on other finance liabilities

27,453

17,412

27,453

17,692

7

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

1 March 2023
to 31 August
2024
£

Year ended
28 February
2023
£

Wages and salaries

1,781,089

2,078,533

Social security costs

251,565

197,011

Pension costs, defined contribution scheme

26,077

99,829

Other employee expense

5,861

4,156

2,064,592

2,379,529

The average number of persons employed by the group (including directors) during the period, analysed by category was as follows:

1 March 2023
to 31 August
2024
No.

Year ended
28 February
2023
No.

Administration and support

11

13

11

13

 

Carbide Properties Limited

Notes to the Financial Statements for the Period from 1 March 2023 to 31 August 2024

8

Directors' remuneration

The directors' remuneration for the period was as follows:

1 March 2023
to 31 August
2024
£

Year ended
28 February
2023
£

Remuneration

370,986

948,872

Contributions paid to money purchase schemes

9,981

89,321

380,967

1,038,193

During the period the number of directors who were receiving benefits and share incentives was as follows:

1 March 2023
to 31 August
2024
No.

Year ended
28 February
2023
No.

Accruing benefits under money purchase pension scheme

1

1

In respect of the highest paid director:

1 March 2023
to 31 August
2024
£

Year ended
28 February
2023
£

Remuneration

335,715

922,000

Company contributions to money purchase pension schemes

9,981

89,321

9

Auditors' remuneration

1 March 2023
to 31 August
2024
£

Year ended
28 February
2023
£

Audit of these financial statements

55,000

57,500


 

 

Carbide Properties Limited

Notes to the Financial Statements for the Period from 1 March 2023 to 31 August 2024

10

Taxation

Tax charged/(credited) in the consolidated profit and loss account

1 March 2023
to 31 August
2024
£

Year ended
28 February
2023
£

Current taxation

UK corporation tax

807,566

788,804

Deferred taxation

Arising from origination and reversal of timing differences

30,607

-

Tax expense in the income statement

838,173

788,804

The tax on profit before tax for the period is higher than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of 24.6% (2023 - 19%).

The differences are reconciled below:

1 March 2023
to 31 August
2024
£

Year ended
28 February
2023
£

Profit before tax

3,081,650

4,039,743

Corporation tax at standard rate

758,086

767,551

Tax increase from effect of capital allowances and depreciation

28,102

11,109

Effect of expense not deductible in determining taxable profit

20,475

10,093

Effect of tax losses

903

51

Deferred tax expense

30,607

-

Total tax charge

838,173

788,804

On 1 April 2023 the rate of corporation tax in the United Kingdom increased from 19% to 25%.

 

Carbide Properties Limited

Notes to the Financial Statements for the Period from 1 March 2023 to 31 August 2024

Deferred tax

Group

Deferred tax assets and liabilities

2024

Asset
£

Liability
£

Accelerated tax depreciation

-

30,607

-

30,607

Company

Deferred tax assets and liabilities

2024

Asset
£

Liability
£

Accelerated tax depreciation

-

30,607

-

30,607

11

Intangible assets

Group

Goodwill
 £

Total
£

Cost or valuation

At 1 March 2023

598,911

598,911

At 31 August 2024

598,911

598,911

Amortisation

At 1 March 2023

506,223

506,223

Amortisation charge

92,688

92,688

At 31 August 2024

598,911

598,911

Carrying amount

At 31 August 2024

-

-

At 28 February 2023

92,688

92,688

 

Carbide Properties Limited

Notes to the Financial Statements for the Period from 1 March 2023 to 31 August 2024

Company

Goodwill
 £

Total
£

Cost or valuation

At 1 March 2023

598,911

598,911

At 31 August 2024

598,911

598,911

Amortisation

At 1 March 2023

506,223

506,223

Amortisation charge

92,688

92,688

At 31 August 2024

598,911

598,911

Carrying amount

At 31 August 2024

-

-

At 28 February 2023

92,688

92,688

12

Tangible assets

Group

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 March 2023

184,200

-

184,200

Additions

4,006

382,720

386,726

At 31 August 2024

188,206

382,720

570,926

Depreciation

At 1 March 2023

36,367

-

36,367

Charge for the period

56,370

67,149

123,519

At 31 August 2024

92,737

67,149

159,886

Carrying amount

At 31 August 2024

95,469

315,571

411,040

At 28 February 2023

147,833

-

147,833

 

Carbide Properties Limited

Notes to the Financial Statements for the Period from 1 March 2023 to 31 August 2024

Company

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 March 2023

184,200

-

184,200

Additions

4,006

382,720

386,726

At 31 August 2024

188,206

382,720

570,926

Depreciation

At 1 March 2023

36,367

-

36,367

Charge for the period

56,370

67,149

123,519

At 31 August 2024

92,737

67,149

159,886

Carrying amount

At 31 August 2024

95,469

315,571

411,040

At 28 February 2023

147,833

-

147,833

13

Investments

Group

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the group holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

2024

2023

Subsidiary undertakings

Tungsten Properties Limited*

Gateway House, 4 Penman Way, Grove Park, Leicester, LE19 1SY

Ordinary

100%

100%

Carbide Fortwell RCF Limited*

Gateway House, 4 Penman Way, Grove Park, Leicester, LE19 1SY

Ordinary

100%

100%

 

Carbide Properties Limited

Notes to the Financial Statements for the Period from 1 March 2023 to 31 August 2024

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

Tungsten MW Witney Limited*

Gateway House, 4 Penman Way, Grove Park, Leicester, LE19 1SY

Ordinary

100%

100%

Tungsten Witham (1) Limited*

Gateway House, 4 Penman Way, Grove Park, Leicester, LE19 1SY

Ordinary

100%

100%

Tungsten Lutterworth (1) Limited*

Gateway House, 4 Penman Way, Grove Park, Leicester, LE19 1SY

Ordinary

100%

100%

Tungsten Oakham (1) Limited

Gateway House, 4 Penman Way, Grove Park, Leicester, LE19 1SY

Ordinary

100%

100%

Carbide Witney Fortwell Limited

Gateway House, 4 Penman Way, Grove Park, Leicester, LE19 1SY

Ordinary

100%

100%

Tungsten Birkenhead Limited*

Gateway House, 4 Penman Way, Grove Park, Leicester, LE19 1SY

Ordinary

100%

100%

Tungsten Worksop Limited*

Gateway House, 4 Penman Way, Grove Park, Leicester, LE19 1SY

Ordinary

100%

100%

Tungsten Cirencester Limited

Gateway House, 4 Penman Way, Grove Park, Leicester, LE19 1SY

Ordinary

100%

100%

Tungsten Colchester Limited*

Gateway House, 4 Penman Way, Grove Park, Leicester, LE19 1SY

Ordinary

100%

100%

Tungsten Nuneaton Limited*

Gateway House, 4 Penman Way, Grove Park, Leicester, LE19 1SY

Ordinary

100%

100%

Tungsten Bredbury Limited*

Gateway House, 4 Penman Way, Grove Park, Leicester, LE19 1SY

Ordinary

100%

100%

 

Carbide Properties Limited

Notes to the Financial Statements for the Period from 1 March 2023 to 31 August 2024

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

Tungsten Dev Co 6 Limited*

Gateway House, 4 Penman Way, Grove Park, Leicester, LE19 1SY

Ordinary

100%

100%

Tungsten Dev Co 8 Limited*

Gateway House, 4 Penman Way, Grove Park, Leicester, LE19 1SY

Ordinary

100%

100%

Tungsten Asset Management Limited*

Gateway House, 4 Penman Way, Grove Park, Leicester, LE19 1SY

Ordinary

100%

100%

Carbide Court Management Limited

Unit D, Carbide Court, Finch Way, Nuneaton, CV11 6WH

Ordinary

100%

100%

Tungsten Court Management Limited

5 Armston Road, Quorn, Loughborough, Leicestershire, LE12 8QP

Ordinary

100%

100%

Tungsten Dev Co 3 Limited*

Gateway House, 4 Penman Way, Grove Park, Leicester, LE19 1SY

Ordinary

100%

0%

Tungsten Dev Co 5 Limited*

Gateway House, 4 Penman Way, Grove Park, Leicester, LE19 1SY

Ordinary

100%

0%

Tungsten Holdco 1 Limited

Gateway House, 4 Penman Way, Grove Park, Leicester, LE19 1SY

Ordinary

100%

0%

Tungsten Dev Co 7 Limited*

Gateway House, 4 Penman Way, Grove Park, Leicester, LE19 1SY

Ordinary

100%

100%

* indicates direct investment of the company

 

Carbide Properties Limited

Notes to the Financial Statements for the Period from 1 March 2023 to 31 August 2024

Subsidiary undertakings

Tungsten Properties Limited

The principal activity of Tungsten Properties Limited is property development.

Carbide Fortwell RCF Limited

The principal activity of Carbide Fortwell RCF Limited is property development.

Tungsten MW Witney Limited

The principal activity of Tungsten MW Witney Limited is property development.

Tungsten Witham (1) Limited

The principal activity of Tungsten Witham (1) Limited is property development.

Tungsten Lutterworth (1) Limited

The principal activity of Tungsten Lutterworth (1) Limited is property development.

Tungsten Oakham (1) Limited

The principal activity of Tungsten Oakham (1) Limited is property development.

Carbide Witney Fortwell Limited

The principal activity of Carbide Witney Fortwell Limited is property development.

Tungsten Birkenhead Limited

The principal activity of Tungsten Birkenhead Limited is property development.

Tungsten Worksop Limited

The principal activity of Tungsten Worksop Limited is property development.

Tungsten Cirencester Limited

The principal activity of Tungsten Cirencester Limited is property development.

Tungsten Colchester Limited

The principal activity of Tungsten Colchester Limited is property development.

Tungsten Nuneaton Limited

The principal activity of Tungsten Nuneaton Limited is property development.

Tungsten Bredbury Limited

The principal activity of Tungsten Bredbury Limited is property development.

 

Carbide Properties Limited

Notes to the Financial Statements for the Period from 1 March 2023 to 31 August 2024

Tungsten Dev Co 6 Limited

The principal activity of Tungsten Dev Co 6 Limited is dormant and therefore not consolidated.

Tungsten Dev Co 8 Limited

The principal activity of Tungsten Dev Co 8 Limited is dormant and therefore not consolidated.

Tungsten Asset Management Limited

The principal activity of Tungsten Asset Management Limited is dormant and therefore not consolidated.

Carbide Court Management Limited

The principal activity of Carbide Court Management Limited is dormant and therefore not consolidated.

Tungsten Court Management Limited

The principal activity of Tungsten Court Management Limited is dormant and therefore not consolidated.

Tungsten Dev Co 3 Limited

The principal activity of Tungsten Dev Co 3 Limited is property development.

Tungsten Dev Co 5 Limited

The principal activity of Tungsten Dev Co 5 Limited is dormant and therefore not consolidated.

Tungsten Holdco 1 Limited

The principal activity of Tungsten Holdco 1 Limited is property deveopment.

Tungsten Dev Co 7 Limited

The principal activity of Tungsten Dev Co 7 Limited is Dormant and therefore not consolidated

 

Carbide Properties Limited

Notes to the Financial Statements for the Period from 1 March 2023 to 31 August 2024

For the period ending 31 August 2024 the following subsidiaries were entitled to exemption from audit under section 479A of the Companies Act 2006 relating to subsidiary companies:

Tungsten Properties Limited

Carbide Fortwell RCF Limited

Tungsten MW Witney Limited

Tungsten Witham (1) Limited

Tungsten Lutterworth (1) Limited

Tungsten Oakham (1) Limited

Carbide Witney Fortwell Limited

Tungsten Birkenhead Limited

Tungsten Worksop Limited

Tungsten Cirencester Limited

Tungsten Dev Co 3 Limited

Tungsten Colchester Limited

Tungsten Nuneaton Limited

Tungsten Holdco 1 Limited

Tungsten Bredbury Limited

Company

31 August
2024
£

28 February
2023
£

Investments in subsidiaries

2,502

902,792

Subsidiaries

£

Cost or valuation

At 1 March 2023

902,792

Additions

200

Disposals

(900,490)

At 31 August 2024

2,502

Provision

Carrying amount

At 31 August 2024

2,502

At 28 February 2023

902,792

 

Carbide Properties Limited

Notes to the Financial Statements for the Period from 1 March 2023 to 31 August 2024

14

Stocks

 

Group

Company

31 August
2024
£

28 February
2023
£

31 August
2024
£

28 February
2023
£

Long term contract balances

14,516,841

6,950,269

1,058,476

2,587,587

Stock

-

2,250,400

-

-

14,516,841

9,200,669

1,058,476

2,587,587

15

Debtors

   

Group

Company

Current

Note

31 August
2024
£

28 February
2023
£

31 August
2024
£

28 February
2023
£

Trade debtors

 

2,331,879

1,608,250

952,668

1,177,591

Amounts recoverable on contracts

 

-

14,736,731

-

14,736,731

Amounts owed by related parties

26

2,650,000

5,850,973

7,469,993

7,049,764

Other debtors and prepayments

 

4,891,721

207,668

7,080,742

185,223

   

9,873,600

22,403,622

15,503,403

23,149,309

16

Cash and cash equivalents

 

Group

Company

31 August
2024
£

28 February
2023
£

31 August
2024
£

28 February
2023
£

Cash at bank

7,279,583

8,013,098

546,134

4,791,477

 

Carbide Properties Limited

Notes to the Financial Statements for the Period from 1 March 2023 to 31 August 2024

17

Creditors

   

Group

Company

Note

31 August
2024
£

28 February
2023
£

31 August
2024
£

28 February
2023
£

Due within one year

 

Loans and borrowings

22

8,141,250

3,990,800

10,000

2,291,616

Trade creditors

 

1,296,821

14,978,342

921,890

14,600,725

Social security and other taxes

 

1,060,570

239,498

42,771

199,545

Other creditors and accruals

 

2,192,412

1,220,299

1,603,702

1,220,399

Corporate tax liability

10

807,566

1,045,622

98,804

727,599

Amounts invoiced in excess of amounts recoverable on contracts

 

159,039

268,014

27,052

268,014

 

13,657,658

21,742,575

2,704,219

19,307,898

Due after one year

 

Loans and borrowings

22

7,420

23,333

7,420

23,333

18

Provisions for liabilities

Group

Deferred tax
£

Total
£

Additional provisions

30,607

30,607

At 31 August 2024

30,607

30,607

Company

Deferred tax
£

Total
£

Additional provisions

30,607

30,607

At 31 August 2024

30,607

30,607

 

Carbide Properties Limited

Notes to the Financial Statements for the Period from 1 March 2023 to 31 August 2024

19

Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the group to the scheme and amounted to £26,077 (2023 - £99,829).

20

Share capital

Allotted, called up and fully paid shares

31 August
2024

28 February
2023

No.

£

No.

£

Ordinary shares of £1 each

100

100

100

100

       

Rights, preferences and restrictions

Ordinary have the following rights, preferences and restrictions:
These have no restrictions on dividends and the repayment of capital.

21

Reserves

Group

Share capital

There is a single class of ordinary shares. All the shares hold full voting rights and there are no restrictions on the distribution of dividends and the repayment of capital.

Profit and loss account

This represents accumulated comprehensive income for the period and prior periods.

Company

Share capital

There is a single class of ordinary shares. All the shares hold full voting rights and there are no restrictions on the distribution of dividends and the repayment of capital.

Profit and loss account

This represents accumulated comprehensive income for the period and prior periods.

 

Carbide Properties Limited

Notes to the Financial Statements for the Period from 1 March 2023 to 31 August 2024

22

Loans and borrowings

Non-current loans and borrowings

 

Group

Company

31 August
2024
£

28 February
2023
£

31 August
2024
£

28 February
2023
£

Bank borrowings

7,420

23,333

7,420

23,333

Current loans and borrowings

 

Group

Company

31 August
2024
£

28 February
2023
£

31 August
2024
£

28 February
2023
£

Bank borrowings

10,000

10,000

10,000

10,000

Other borrowings

8,131,250

3,980,800

-

2,281,616

8,141,250

3,990,800

10,000

2,291,616

Group

Bank borrowings

The bounce back loan is denominated in pounds sterling with an interest rate of 2.5%, and the final instalment is due on 30 June 2026. The carrying amount at period end is £17,420 (2023 - £33,333).

Other borrowings

MW Investor loan is denominated in pounds sterling with an interest rate of 8.0%. The carrying amount at year end is £8,131,250 (2023 - £3,980,800).

The loan is secured against the related developments and repayable on demand.

Company

Bank borrowings

The bounce back loan is denominated in pounds sterling with an interest rate of 2.5%, and the final instalment is due on 30 June 2026. The carrying amount at period end is £17,420 (2023 - £33,333).

 

Carbide Properties Limited

Notes to the Financial Statements for the Period from 1 March 2023 to 31 August 2024

23

Obligations under leases and hire purchase contracts

Group and Company

Operating leases

The total of future minimum lease payments is as follows:

31 August
2024
£

28 February
2023
£

Not later than one year

101,093

101,093

Later than one year and not later than five years

42,122

193,762

143,215

294,855

The amount of non-cancellable operating lease payments recognised as an expense during the period was £116,375 (2023 - £66,059).

24

Contingent liabilities

Company

Under S479C of the Companies Act 2006, the company has agreed to guarantee the liabilities of the subsidiaries listed on pages 30 and 33. These liabilites total £10,953,439 (2023 - £2,434,677)

25

Analysis of changes in net debt

Group

At 1 March 2023
£

Financing cash flows
£

At 31 August 2024
£

Cash and cash equivalents

Cash

8,013,098

(733,515)

7,279,583

Borrowings

Long term borrowings

(23,333)

15,913

(7,420)

Short term borrowings

(3,990,800)

(4,150,450)

(8,141,250)

(4,014,133)

(4,134,537)

(8,148,670)

Net cash/(debt)

3,998,965

(4,868,052)

(869,087)

 

Carbide Properties Limited

Notes to the Financial Statements for the Period from 1 March 2023 to 31 August 2024

26

Related party transactions

Group and company

Transactions with directors

2024

At 1 March 2023
£

Advances to director
£

Repayments by director
£

At 31 August 2024
£

J. D. Penman

Director's loan

950,973

1,349,027

(975,000)

1,325,000

-

-

-

-

950,973

1,349,027

(975,000)

1,325,000

D. J. Sear-Mayes

Director's loan

900,000

1,400,000

(975,000)

1,325,000

-

-

-

-

900,000

1,400,000

(975,000)

1,325,000

2023

At 1 March 2022
£

Advances to director
£

Repayments by director
£

At 28 February 2023
£

J. D. Penman

Director's loan

233,036

1,117,937

(400,000)

950,973

233,036

1,117,937

(400,000)

950,973

D. J. Sear-Mayes

Director's loan

200,000

1,100,000

(400,000)

900,000

200,000

1,100,000

(400,000)

900,000

The group authorised unsecured, interest free loans to the directors totalling £2,650,000. These loans were still outstanding at the period end.

 

Carbide Properties Limited

Notes to the Financial Statements for the Period from 1 March 2023 to 31 August 2024

Summary of transactions with other related parties

The company has taken advantage of the exemption in FRS102 "Related Party Disclosures" not to disclose transactions between the company and other companies within the group which are wholly owned.

Income totalling £1,298,947 from related parties by virtue of being controlled by one of the directors (2023 - £559,043).

Purchases totalling £334,992 from related parties connected to the directors (2023 - £2,171).

The directors provided consultancy services totalling £1,200,000 (2023 - £323,000).

Family members related to the directors received dividends of £1,950,000 (2023 - £400,000).

27

Non adjusting events after the financial period

On 17 December 2024, the parent company and the group were acquired by an Employee Ownership Trust, governed by Carbide Properties Trustee Limited.