Company registration number 09845137 (England and Wales)
CAPITAL & CENTRIC (CINNAMON) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
CAPITAL & CENTRIC (CINNAMON) LIMITED
COMPANY INFORMATION
Directors
Mr A Higgins
Mr T Heatley
Mr R Mathias
Mr D Speakman
Company number
09845137
Registered office
1st Floor
Neptune Mill
64 Chapeltown Street
Manchester
M1 2WQ
Auditor
Lopian Gross Barnett & Co
1st Floor, Cloister House
Riverside
New Bailey Street
Manchester
M3 5FS
Business address
1st Floor
Neptune Mill
64 Chapeltown Street
Manchester
M1 2WQ
CAPITAL & CENTRIC (CINNAMON) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 25
CAPITAL & CENTRIC (CINNAMON) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Review of the business
The Group’s trading activity is driven from the sale of residential flats following the completion of the Group’s property development projects; Cinnamon 1 and Cinnamon 2.
The Group’s performance for the year has been as expected as most of the flats were sold in prior years and the majority of the remaining flats were sold in 2023. This has resulted in reduced turnover compared to the prior year, £24m in 2022 and £8m in 2023.
The group has also seen a decrease in profit before tax compared to that of the year before with profit before tax of £514,699 in 2023 compared to £1,415,387 in 2022.
There has been a significant decrease in finance costs as interest bearing external finance arrangements were satisfied during 2022.
The group has been performing well and meeting the expectations of management. Both projects have, however, reached their maturity phase with the vast majority of their units being sold. Consequently, performance is anticipated to decline in the next financial year given the finite nature of property development projects.
Principal risks and uncertainties
The directors closely monitor the performance and financial risks of the group by reviewing monthly management accounts and forecasts. Decisions are then made and acted upon as necessary.
The principal risk the company faces is a downturn in demand for residential housing in the Manchester city centre area. However, current conditions in the Manchester housing market are strong and this is deemed to be quite a low risk.
Mr A Higgins
Director
9 June 2025
CAPITAL & CENTRIC (CINNAMON) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company and group continued to be that of property development.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
The prior period adjustment relates to a change in the interest expense.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr A Higgins
Mr T Heatley
Mr R Mathias
Mr D Speakman
Auditor
Lopian Gross Barnett & Co were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr A Higgins
Director
9 June 2025
CAPITAL & CENTRIC (CINNAMON) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and 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 then 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;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and 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 company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
CAPITAL & CENTRIC (CINNAMON) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CAPITAL & CENTRIC (CINNAMON) LIMITED
- 4 -
Opinion
We have audited the financial statements of Capital & Centric (Cinnamon) Limited (the 'parent company') and it's subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cashflows, the company statement of cashflows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion 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 December 2023 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.
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 and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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 directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
CAPITAL & CENTRIC (CINNAMON) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CAPITAL & CENTRIC (CINNAMON) LIMITED
- 5 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the 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 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 directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.
CAPITAL & CENTRIC (CINNAMON) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CAPITAL & CENTRIC (CINNAMON) LIMITED
- 6 -
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
• We obtained an understanding of laws and regulations that affect the entity, focusing on those that had a direct
effect on the financial statements or that had a fundamental effect on its operations.
• Where considered necessary we enquired of the those charged with governance, reviewed correspondence and
reviewed meeting minutes for evidence of non-compliance with relevant laws and regulations.
• We gained an understanding of the controls environment which includes the controls in place to prevent and
detect fraud. We enquired of the those charged with governance about any incidences of fraud that had taken place
during the accounting period.
• The risk of fraud and non-compliance with laws and regulations and fraud was discussed within the audit team and
tests were planned and performed to address these risks.
• We reviewed financial statements disclosures to assess compliance with relevant laws and regulations.
• We enquired of those charged with governance about actual and potential litigation and claims.
• We performed analytical procedures to identify any unusual or unexpected relationships that might indicate risks of
material misstatement due to fraud.
• In addressing the risk of fraud due to management override of internal controls we tested the appropriateness of
journal entries and assessed whether the judgements made in making accounting estimates were indicative of a
potential bias.
Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some
material misstatements in the financial statements, even though we have properly planned and performed our audit
in accordance with auditing standards. For example, as with any audit, there remained a higher risk of nondetection
of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and
cannot be expected to detect all fraud and non-compliance with laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
CAPITAL & CENTRIC (CINNAMON) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CAPITAL & CENTRIC (CINNAMON) LIMITED
- 7 -
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.
Jason Selig BA ACA CTA DChA (Senior Statutory Auditor)
For and on behalf of Lopian Gross Barnett & Co
9 June 2025
Chartered Accountants
Statutory Auditor
1st Floor, Cloister House
Riverside
New Bailey Street
Manchester
M3 5FS
CAPITAL & CENTRIC (CINNAMON) LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
as restated
Notes
£
£
Turnover
3
8,219,627
23,977,881
Cost of sales
(6,796,356)
(20,401,827)
Gross profit
1,423,271
3,576,054
Administrative expenses
(1,022,078)
(1,321,905)
Other operating income
113,745
82,768
Operating profit
4
514,938
2,336,917
Interest payable and similar expenses
7
(239)
(921,530)
Profit before taxation
514,699
1,415,387
Tax on profit
8
(114,800)
(373,831)
Profit for the financial year
399,899
1,041,556
Profit for the financial year is all attributable to the owners of the parent company.
CAPITAL & CENTRIC (CINNAMON) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
as restated
£
£
Profit for the year
399,899
1,041,556
Other comprehensive income
-
-
Cash flow hedges gain arising in the year
Total comprehensive income for the year
399,899
1,041,556
Total comprehensive income for the year is all attributable to the owners of the parent company.
CAPITAL & CENTRIC (CINNAMON) LIMITED
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
as restated
Notes
£
£
£
£
Current assets
Stocks
11
2,265,308
8,603,390
Debtors
12
221,401
300,340
Cash at bank and in hand
244,889
1,087,279
2,731,598
9,991,009
Creditors: amounts falling due within one year
13
(1,305,264)
(8,964,574)
Net current assets
1,426,334
1,026,435
Capital and reserves
Called up share capital
15
200
200
Profit and loss reserves
1,426,134
1,026,235
Total equity
1,426,334
1,026,435
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved by the board of directors and authorised for issue on 9 June 2025 and are signed on its behalf by:
09 June 2025
Mr A Higgins
Director
Company registration number 09845137 (England and Wales)
CAPITAL & CENTRIC (CINNAMON) LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Investments
9
200
200
Current assets
Debtors
12
3,092,196
7,627,138
Cash at bank and in hand
45,209
26,948
3,137,405
7,654,086
Creditors: amounts falling due within one year
13
(3,087,617)
(7,652,019)
Net current assets
49,788
2,067
Net assets
49,988
2,267
Capital and reserves
Called up share capital
15
200
200
Profit and loss reserves
49,788
2,067
Total equity
49,988
2,267
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £47,721 (2022 : £8,533 loss).
The financial statements were approved by the board of directors and authorised for issue on 9 June 2025 and are signed on its behalf by:
09 June 2025
Mr A Higgins
Director
Company registration number 09845137 (England and Wales)
CAPITAL & CENTRIC (CINNAMON) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
As restated for the period ended 31 December 2022:
Balance at 1 January 2022
200
(15,321)
(15,121)
Year ended 31 December 2022:
Profit and total comprehensive income
-
1,041,556
1,041,556
Balance at 31 December 2022
200
1,026,235
1,026,435
Year ended 31 December 2023:
Profit and total comprehensive income
-
399,899
399,899
Balance at 31 December 2023
200
1,426,134
1,426,334
CAPITAL & CENTRIC (CINNAMON) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
As restated for the period ended 31 December 2022:
Balance at 1 January 2022
200
10,600
10,800
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
(8,533)
(8,533)
Balance at 31 December 2022
200
2,067
2,267
Year ended 31 December 2023:
Profit and total comprehensive income
-
47,721
47,721
Balance at 31 December 2023
200
49,788
49,988
CAPITAL & CENTRIC (CINNAMON) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
18
(464,449)
16,226,138
Interest paid
(239)
(921,530)
Income taxes paid
(377,702)
Net cash (outflow)/inflow from operating activities
(842,390)
15,304,608
Financing activities
Repayment of borrowings
-
(14,513,082)
Net cash used in financing activities
-
(14,513,082)
Net (decrease)/increase in cash and cash equivalents
(842,390)
791,526
Cash and cash equivalents at beginning of year
1,087,279
295,753
Cash and cash equivalents at end of year
244,889
1,087,279
CAPITAL & CENTRIC (CINNAMON) LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
19
18,261
590,910
Interest paid
(586,686)
Net cash inflow from operating activities
18,261
4,224
Net increase in cash and cash equivalents
18,261
4,224
Cash and cash equivalents at beginning of year
26,948
22,724
Cash and cash equivalents at end of year
45,209
26,948
CAPITAL & CENTRIC (CINNAMON) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information
Capital & Centric (Cinnamon) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 1st Floor, Neptune Mill, 64 Chapeltown Street, Manchester, M1 2WQ.
The group consists of Capital & Centric (Cinnamon) Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, The principal accounting policies adopted are set out below.
1.2
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Capital & Centric (Cinnamon) Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
1.3
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.5
Fixed asset investments
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
CAPITAL & CENTRIC (CINNAMON) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.
1.8
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
CAPITAL & CENTRIC (CINNAMON) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
CAPITAL & CENTRIC (CINNAMON) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sales of residential flats
8,219,627
23,977,881
2023
2022
£
£
Other revenue
Commissions received
6,041
11,694
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging:
Depreciation of owned tangible fixed assets
-
277
Operating lease charges
56,704
46,217
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
10,000
6,250
Audit of the financial statements of the company's subsidiaries
20,000
18,750
30,000
25,000
CAPITAL & CENTRIC (CINNAMON) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
1
1
Their aggregate remuneration comprised:
Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
39,538
38,513
Social security costs
4,201
4,286
-
-
Pension costs
999
741
44,738
43,540
7
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
-
334,533
Other interest on financial liabilities
-
586,686
-
921,219
Other finance costs:
Other interest
239
311
Total finance costs
239
921,530
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
244,250
373,831
Adjustments in respect of prior periods
(129,450)
Total current tax
114,800
373,831
CAPITAL & CENTRIC (CINNAMON) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Taxation
(Continued)
- 21 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
514,699
1,415,387
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
120,954
268,924
Tax effect of expenses that are not deductible in determining taxable profit
77,684
111,523
Tax effect of utilisation of tax losses not previously recognised
(8,290)
Adjustments in respect of prior years
(124,474)
Effect of change in corporation tax rate
35,494
-
Group relief
(2,534)
Group consolidation adjustments
5,142
4,208
Taxation charge
114,800
373,831
9
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
10
200
200
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
200
Carrying amount
At 31 December 2023
200
At 31 December 2022
200
10
Subsidiaries
Details of the company's subsidiaries at 31 December 2023 are as follows:
CAPITAL & CENTRIC (CINNAMON) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Subsidiaries
(Continued)
- 22 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Capital & Centric (Cinnamon 1) Ltd
UK
Ordinary
100.00
-
Capital & Centric (Cinnamon 2) Ltd
UK
Ordinary
100.00
-
Avora Construction Ltd
UK
Ordinary
0
100.00
11
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Work in progress
2,265,308
8,603,390
-
-
12
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
6,897
22,763
Corporation tax recoverable
129,450
Amounts owed by connected companies
7,500
-
3,059,067
7,608,081
Other debtors
31,789
213,571
18,000
18,000
Prepayments and accrued income
45,765
64,006
15,129
1,057
221,401
300,340
3,092,196
7,627,138
Included within Other debtors is a loan issued to Capital & Centric (Nineteen) Limited of £18,000, which is repayable on demand.
13
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade creditors
132,577
303,418
24,136
12,000
Amounts owed to connected companies
195,513
7,595,161
3,011,782
7,597,216
Corporation tax payable
244,250
377,702
14,677
Other taxation and social security
16,596
16,336
15,737
15,266
Other creditors
12,819
39,223
11,285
11,287
Accruals and deferred income
703,509
632,734
10,000
16,250
1,305,264
8,964,574
3,087,617
7,652,019
CAPITAL & CENTRIC (CINNAMON) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
14
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
999
741
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
15
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
110
110
110
110
Ordinary B shares of £1 each
90
90
90
90
200
200
200
200
16
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases of £56,704 per annum for the next 991 years.
17
Related party transactions
There were no related party transactions outside the course of normal business that require disclosure.
18
Cash (absorbed by)/generated from group operations
2023
2022
£
£
Profit after taxation
399,899
1,041,556
Adjustments for:
Taxation charged
114,800
373,831
Finance costs
239
921,530
Depreciation and impairment of tangible fixed assets
-
277
Movements in working capital:
Decrease in stocks
6,338,082
17,325,039
Decrease in debtors
208,389
549,465
Decrease in creditors
(7,525,858)
(3,985,560)
Cash (absorbed by)/generated from operations
(464,449)
16,226,138
CAPITAL & CENTRIC (CINNAMON) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
19
Cash generated from operations - company
2023
2022
£
£
Profit/(loss) after taxation
47,721
(8,533)
Adjustments for:
Taxation charged
14,677
Finance costs
586,686
Movements in working capital:
Decrease in debtors
4,534,942
3,551,703
Decrease in creditors
(4,579,079)
(3,538,946)
Cash generated from operations
18,261
590,910
20
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
1,087,279
(842,390)
244,889
21
Analysis of changes in net funds - company
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
26,948
18,261
45,209
22
Prior period adjustment
Reconciliation of changes in equity - group
1 January
31 December
2022
2022
£
£
Adjustments to prior year
Interest charge
-
(586,686)
Equity as previously reported
(15,121)
1,613,121
Equity as adjusted
(15,121)
1,026,435
Analysis of the effect upon equity
Profit and loss reserves
-
(586,686)
CAPITAL & CENTRIC (CINNAMON) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
22
Prior period adjustment
(Continued)
- 25 -
Reconciliation of changes in profit for the previous financial period
2022
£
Adjustments to prior year
Interest charge
(586,686)
Profit as previously reported
1,628,242
Profit as adjusted
1,041,556
Reconciliation of changes in equity - company
The prior period adjustments do not give rise to any effect upon equity.
Reconciliation of changes in loss for the previous financial period
2022
£
Adjustments to prior year
Total adjustments
-
Loss as previously reported
(8,533)
Loss as adjusted
(8,533)
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