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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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CARPENTERS GROUP LIMITED
COMPANY INFORMATION
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CARPENTERS GROUP LIMITED
CONTENTS
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CARPENTERS GROUP LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors present the strategic report of Carpenters Group Limited (“the Group”) for the year ended 31 December 2024.
The Group comprises of Mondrian Limited and its subsidiary, SARL Carpenters Workshop Gallery, and SARL Artist Proof and its subsidiary. The consolidated financial statements of the Group have been prepared using acquisition accounting principles allowed under FRS 102. The carrying value of the assets and liabilities of the parties to the combination were adjusted to their fair value on consolidation. Any difference between the cost of the investment and the nominal value of the share capital acquired is recognised as goodwill.
Principle activities
The Carpenters Group of companies operates as an art dealer specialising in contemporary collectible design. The Company is the investment holding company of the Group and doesn’t trade on its own account. The Group includes Mondrian Limited and Carpenters Workshop Gallery LLC operating as an art dealership in the UK and USA respectively. SARL Carpenters Workshop Gallery operates as an art dealership in France, and SARL Artist Proof, Summer is an Attitude SAS, operating as an art manufacturer and logistics support to the Group.
The Group has been a successful business for many years primarily operating from its London, Paris, New York and Los Angeles galleries and specialist art fairs, catering to a niche client base with additional eCommerce sales.
The Group has invested in a new Gallery space, in Notting Hill London which opened in Spring 2023 and was fully operational in 2024. Global economy, financial markets, and the impact of inflation Global markets are influenced over time by the overall strength and stability of the global economy and the financial markets, although this correlation may not be immediately evident. The willingness of potential buyers and sellers to purchase and sell in the wake of economic uncertainty may be influenced. Clients may in the future have less capacity for discretionary purchases and may reduce their purchases as a result of various factors, including inflation (such a recent inflationary pressure), higher tax rates, reduced access to credit, changes in government economic policy, recent global economic uncertainty, lower consumer confidence and demand for discretionary goods, geopolitical events such as recent international trade disputes and the ongoing war in Ukraine (see below). Eastern European conflict The Russian invasion of Ukraine on 24 February 2022 and the ongoing conflict have not directly impacted the operations of the Group. The Group does not conduct business in the region. All sanctions imposed as a result of the conflict are being monitored on an ongoing basis and full compliance with those sanctions is being diligently ensured.
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CARPENTERS GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
*Operating profit before interest, tax, depreciation, and amortisation.
Revenue decreased marginly to €48.36m solely due to the timing of goods shipments, with deliveries scheduled in 2025.
A comprehensive data clean-up exercise was completed during the year along with integrating the international financial reporting function which resulted in amendments to certain prior year figures. These adjustments, which are set out in note to the financial statements, improve accuracy and consistency of reporting and have no impact on the Group's underlying performance for the financial year ended 31 December 2024 Gross profit margin decreased by 1.96% and gross profit decreased by 4.35% to €21.6m, consistent with the overall revenue slight decline and influenced partly by revenue mix. Operating loss improved by €2.30m to €0.11m primarily driven by reduced administrative expenses through strong cost control while maintaining disciplined investment in key value-driven initiatives. EBITDA increased by 115% to €5.14m driven mainly by lower administrative expenses although partially offset by a slight decline in revenue.
The management of the business and the execution of the Group’s strategy are subject to several risks. The key business risks and uncertainties affecting the Group as set out below are considered by Senior Management with appropriate procedures and mitigating actions implemented to control them.
Suppliers, input products and supply chain Carpenters Workshop Gallery products have a high reputation for style and quality that are dependent upon reputable designers and artists as well as the raw materials used in each design. The Group could be adversely affected by a fall in the production capacity of these artists, increases in raw material costs or logistics delays resulting from the exit of Britain from the European Union. The Group sources products from various artists and suppliers who can match the Group’s standards. The Group is not dependent upon one single artist and each is subject to at least an annual review of their products and the price paid for them. Where products are sourced in a currency other than UK £ then the Group will consider the impact of currency movements and determine whether any simple hedging of currency exposure or locking in of contracts/prices is warranted. Employees The Group’s employees deliver the service our clients expect from the sales process through to delivery and installation. A material decline in customer service standards could adversely affect the Group and its ability to grow sales. The Group has invested in training processes and management disciplines to maintain the expected service levels. In light of the current environment, the Group is doing its utmost best to retain and incentivise its employees.
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CARPENTERS GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Product availability The Group’s operations are reliant on key relationships with artists and designers who create the products it sells. The Group could be adversely affected by these artists and designers being unable to manufacture products in a timely manner. The Group has contingent solutions in place for all key products. Market conditions & competition The Group operates within a niche market with new competitors entering the market as the demand for collectable design has grown considerably in recent years. The Group regularly reviews its products to ensure that innovation and design continue to attract clients and secure our position as market leaders. Brexit considerations Britain and the European Union have agreed and signed a Trade and Cooperation Agreement (“the agreement”). The agreement between Britain and the European Union contains no tariffs or quotas. Under the agreement, all imports of supplies from the EU must be declared to HMRC. We believe that this controlled departure from the EU will not have a direct impact on our supply chains. We are continually alert to the risk of significant declines in Sterling in recent years and leverage our trading partners within the Carpenters Group to hedge this risk. Currency risk The Group is exposed to translation and transaction foreign exchange risk due to trading in sterling, euro and US dollars. To mitigate this risk, the Group buys and sells currencies when rates are deemed favourable. Liquidity risk The Group seeks to manage risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. Interest rate risk The Group finances its operations through a mix of retained profits and bank facilities in place. The Group does not ordinarily enter into derivative transactions to hedge interest rates. The Group’s business model is regularly assessed by the Board of Directors in order to implement any strategic changes as necessary.
Our customer base is steadily expanding, with growth in all markets and geographical locations.
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CARPENTERS GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors act in a way that they considered to be most likely to promote the success of the Group and in doing so have regard, amongst other matters to:
• the likely consequences of any decision in the long term; • the interests of the Group’s employees; • the need to foster the Group’s business relationships with suppliers, clients and others; • the impact of the Group’s operations on the community and the environment; • the desirability of the Group maintaining a reputation for high standards of business conduct; and • the need to act fairly between members of the Group
This report was approved by the board on 19 September 2025 and signed on its behalf.
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CARPENTERS GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The directors who served during the year were:
The loss for the year, after taxation, amounted to €1,718,216 (2023 - loss (as restated) €3,181,485).
Aggregated dividends of €600,000 (2023: €300,000) were paid during the current and financial reporting period.
As of the date upon which this report was approved, the directors have not recommended payment of any further dividend in respect of the financial year ended 31 December 2024.
The Group will seek to minimise adverse impacts on the environment from its activities, whilst continuing to address health, safety and economic issues. The Group has complied with all applicable legislation and regulations.
In managing the Group's operations, the directors remain conscious of the environmental impact of our business and continue to support the operational team in reviewing and establishing sustainable processes and practices. The Group is actively working towards achieving B Corp certification, which recognizes businesses that meet rigorous standards of social and environmental performance, accountability, and transparency. Additionally, we have installed LED lighting in our gallery spaces and production facility in Mitry-Mory, and we are exploring further ways to reduce our environmental footprint while maintaining the highest efficiency standards. We also closely manage all building projects to ensure the use of sustainable materials.
The Group is focused on providing unique contemporary functional art to its clients. The Group are evolving their business to ensure a seamless client experience from order to delivery and are investing significantly in their logistics capabilities and the technology that underpins the processes.
The Group is an equal opportunity employer, we ensure fair consideration of applications from disabled individuals, assessing their skills and abilities. Training and career development opportunities for disabled employees mirror those for non-disabled individuals whenever possible. Equivalent training and employment opportunities are provided to employees who become disabled during their tenure.
As part of our employee engagement and communication efforts, we regularly hold global and regional town hall meetings, as well as management and steering committee sessions. During these meetings, employees are updated on key developments within the Group, major product launches, exhibitions and financial performance. These town halls are complemented by regular newsletters, which are contributed to by employees and provide updates from departments across the globe.
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CARPENTERS GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
In 2023, a Culture Committee was established to gather, review, and act on employee feedback. The committee's goal is to foster engagement by developing initiatives, such as creating employer-recognized groups aimed at improving overall employee satisfaction. Important changes and updates to employee benefits, such as the relocation of the UK back-office and the introduction of transportation allowances, are communicated through email and direct mail to ensure all employees are informed.
The Group’s key stakeholders include its employees, clients, suppliers and the environment.
How does the Board engage with Stakeholders The Board engages with stakeholders through both direct interactions and operational-level communication. Directors frequently connect directly with stakeholders to address specific issues, ensuring that concerns are addressed promptly. However, much of the stakeholder engagement occurs at the operational level, where teams handle day-to-day interactions. Given the international nature of our business, the Board takes the lead in stakeholder engagement for matters of group-wide significance. For example, decisions such as investing in a new gallery space are carefully considered due to their potential impact on the Group's reputation. This dual approach ensures that we remain responsive to stakeholder needs while aligning our strategic objectives with broader organizational goals. Engagement with clients Carpenters engages with its clients through a variety of channels, including networking events, its website, a B2B platform, and digital and social media platforms, all of which provide information about our galleries and the artworks available for sale. When clients visit Carpenters' galleries, they have the opportunity to meet with our team, view exhibitions, attend events, and enjoy our hospitality. The Group's success is largely driven by a select group of business partners and direct clients, who contribute significantly to our revenues, profitability, and cash flow. Our continued growth depends on our ability to cultivate and sustain strong relationships with these key clients, as well as on their financial stability. Engagement with suppliers Carpenters is committed to maintaining close relationships with key suppliers, particularly the artists, to ensure efficient and high-quality service delivery. Communication with our suppliers is managed by internal relationship holders who are closely connected to the relevant functions. These relationship holders provide updates on Company policies to suppliers and relay their insights and feedback to senior management.
The Group has not disclosed information in respect of greenhouse gas emissions, energy consumption and energy efficiency action as its energy consumption in the United Kingdom for the year is 40,000kWh or lower.
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CARPENTERS GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
There have been no significant events affecting the Group since the end of the reporting period.
The auditors, Nyman Libson Paul LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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CARPENTERS GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CARPENTERS GROUP LIMITED
We have audited the financial statements of Carpenters Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting 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).
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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 or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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CARPENTERS GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CARPENTERS GROUP LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group 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 Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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CARPENTERS GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CARPENTERS GROUP LIMITED (CONTINUED)
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 Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We gained an understanding of the legal and regulatory framework applicable to the Company and the industry in which it operates, and considered the risk of acts by the Company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, 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 or intentional misrepresentations, or through collusion. We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
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CARPENTERS GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CARPENTERS GROUP LIMITED (CONTINUED)
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 Auditors' 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.
for and on behalf of
Chartered Accountants
Statutory Auditors
124 Finchley Road
NW3 5JS
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CARPENTERS GROUP LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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CARPENTERS GROUP LIMITED
REGISTERED NUMBER: 12716426
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 19 to 41 form part of these financial statements.
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CARPENTERS GROUP LIMITED
REGISTERED NUMBER: 12716426
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 19 to 41 form part of these financial statements.
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CARPENTERS GROUP LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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CARPENTERS GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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CARPENTERS GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
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CARPENTERS GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2024
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CARPENTERS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Carpenters Group Limited ('the Company') is a private company limited by shares, incorporated under the UK Companies Act 2006 and domiciled in England.
The address of the Company's registered office and principal place of business is Ladbroke Hall, 79 Barlby Road, London, W10 6AZ. The nature of the Group's operations and its principal activities are set out in the strategic report on pages 1 to 4 of these financial statements.
1.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 2).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases. In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102.
The Directors have prepared cashflow projections for the Group covering a period of at least 12 months from the date of approval of these financial statements and the Directors consider the Group will be able to operate within its available facilities. Therefore, the Directors consider it appropriate to prepare the financial statements on a going concern basis.
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CARPENTERS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
1.Accounting policies (continued)
The Company's functional and presentational currency is Euros.
Foreign currencies are translated into the functional (and presentational) currency using the exchange rates prevailing at the date of the respective transaction or valuation where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at financial period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit and loss account as part of total comprehensive income. Changes in the fair value of forward foreign exchange contracts that economically hedge monetary assets and liabilities in foreign currencies, and for which no hedge accounting is applied, are recognised in profit or loss with the change in fair value of the forward foreign exchange contract recognised as a fair value movement within operating profit or loss and foreign exchange gains or losses relating to monetary items recognised within administrative expenditure On consolidation, the results of overseas operations are translated into Euros at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.
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CARPENTERS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
1.Accounting policies (continued)
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CARPENTERS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
1.Accounting policies (continued)
Goodwill
Other intangible assets
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years. Intangible assets are amortised over their useful life of three years.
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CARPENTERS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
1.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, as follows.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Holdings in unlisted company shares of subsidiary undertakings Such holdings are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at cost less provision for impairment at the reporting date. Holdings in unlisted company shares of associated undertakings Such holdings are a form of financial instrument. The Company accounts for its interests in associated undertakings using the equity method. Under this method, the Company recognises its investment in the associated undertaking at cost and subsequently adjusts this for its share of profits or losses, recognised in profit or loss within non-operating items, and accumulated provision for impairment. In the consolidated accounts, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate. The Consolidated Statement of Comprehensive Income includes the Group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the Group. In the Consolidated Balance Sheet, the interests in associated undertakings are shown as the Group's share of the identifiable net assets, including any unamortised premium paid on acquisition.
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CARPENTERS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
1.Accounting policies (continued)
Any premium on acquisition is dealt with in accordance with the goodwill policy. Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other
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CARPENTERS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
1.Accounting policies (continued)
consideration expected to be paid or received.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated Statement of Comprehensive Income. Investments in non-derivative instruments that are equity to the issuer are measured: - at fair value with changes recognised in the Consolidated Statement of Comprehensive Income if the shares are publicly traded or their fair value can otherwise be measured reliably; - at cost less impairment for all other investments. Significant judgments The Group did not make any significant judgements (apart from those involving estimations which are detailed below) that have a significant effect on the amounts recognised in the financial statements. Key sources of estimation uncertainty Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: The management makes an estimate of recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. The annual depreciation charge for the tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.
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CARPENTERS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Judgments in applying accounting policies (continued)
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss. There were no other key sources of estimation uncertainty.
Analysis of turnover by country of destination:
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CARPENTERS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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CARPENTERS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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CARPENTERS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 29
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CARPENTERS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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