Registered Number:
UNAUDITED
DIRECTORS' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2021
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COMPANY INFORMATION
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CONTENTS
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STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2021
The directors are pleased with the results for the company for the year.
The company is in a strong position at the year end, with healthy levels of net current assets, net assets and cash at bank. It is the view of the directors that the market value of the freehold assets is greatly in excess of the carrying value in the accounts.
The directors are acutely aware of the impact that Covid-19 has had on the global economy. Whilst the nature of the company's activities mean that it is less affected by the virus than some other companies, the directors acknowledge that inherent risks and uncertainties remain ongoing and they continue to actively manage these to mitigate the effects wherever possible.
This report was approved by the board on 23 June 2021
and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2021
The directors present their report and the financial statements for the year ended 28 February 2021.
Principal activity
The principal activity of the company remains that of a holding company.
The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the 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 Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the directors are required to:
∙
select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙
make judgments and accounting estimates that are reasonable and prudent;
∙
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 Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In preparing the financial statements, the directors have taken advantage of the special provisions for small companies under part 15 of the Companies Act 2006 in respect of the right to take exemptions from both preparing consolidated accounts and preparing a Statement of Cash Flows.
The profit for the year, after taxation, amounted to £
601,242
(2020 -
£
113,652
)
. The results of the current year include dividends received that were not recurrent in the prior year.
During the year the company paid dividends of £637,520 (2020 - £227,420).
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CASTLEWOOD HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2021
The directors who served during the year were:
An indemnity policy with respect to the directors was in place throughout the year.
This report was approved by the board on
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CHARTERED ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF CASTLEWOOD HOLDINGS LIMITED
FOR THE YEAR ENDED 28 FEBRUARY 2021
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Castlewood Holdings Limited for the year ended 28 February 2021 which comprise the Statement of Comprehensive Income (including the Profit and Loss Account), the Balance Sheet, the Statement of Changes in Equity and the related notes from the Company's accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at
http://www.icaew.com/en/
members/regulations-standards-and-guidance/
.
This report is made solely to the Board of Directors of Castlewood Holdings Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely
to prepare for your approval the financial statements of Castlewood Holdings Limited and state those matters that we have agreed to state to the Board of Directors of Castlewood Holdings Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Castlewood Holdings Limited and its Board of Directors, as a body, for our work or for this report.
It is your duty to ensure that Castlewood Holdings Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Castlewood Holdings Limited. You consider that Castlewood Holdings Limited is exempt from the statutory audit requirement for the year.
Chartered Accountants
Fitzroy House
Crown Street
Suffolk
IP1 3LG
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STATEMENT OF COMPREHENSIVE INCOME (INCLUDING THE PROFIT AND LOSS ACCOUNT)
FOR THE YEAR ENDED 28 FEBRUARY 2021
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BALANCE SHEET
AS AT
28 FEBRUARY 2021
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BALANCE SHEET
(CONTINUED)
AS AT
28 FEBRUARY 2021
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 10 to 22 form part of these financial statements.
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
28 FEBRUARY 2021
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
29 FEBRUARY 2020
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2021
Castlewood Holdings Limited is a company limited by share capital, registered in England and Wales, registration number 01526264. The registered office is The Sawmill, Wix Nr Manningtree, Colchester, Essex, CO11 2RS.
2.
Accounting policies
The financial statements have been drawn up on a going concern basis.The financial statements have been prepared under the historical cost convention as modified by the revaluation of property and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland, the Companies Act 2006 and FRC Abstracts.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies. This is explained further in note 3. The financial statements are prepared in Sterling and are rounded to the nearest £1. The following principal accounting policies have been applied:
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 management to exercise judgment in applying the Company's accounting policies (see note 3).
The financial statements are prepared on a going concern basis.
The following principal accounting policies have been applied:
Investments in Associates and Joint Ventures are held at cost less impairment.
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2021
2.
Accounting policies (continued)
Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙
the amount of turnover can be measured reliably;
∙
it is probable that the Company 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.
Tangible fixed assets under the cost model are stated at historical cost or valuation less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
It is the Company's policy to account for its freeheld land and property which is rented by the Company to its subsidiary, Anglian Timber Limited, as a tangible fixed asset at historical cost less depreciation. The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.
Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
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 the Statement of Comprehensive Income.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2021
2.
Accounting policies (continued)
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities such as trade and other accounts receivable and payable and loans with related parties.
Short term debtors are measured at transaction price, less any impairment. Short term creditors are measured at the transaction price. Where amounts are wholly repayable on demand these are accounted for as falling due within one year.
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
The Company operates a defined contribution plan. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payments obligations.
The contributions are recognised as an expense in the Profit and Loss Account when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2021
2.
Accounting policies (continued)
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Statement of Comprehensive Income in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Balance Sheet.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
In preparing the financial statements, the company has taken the exemption from preparing a Statement of Cash Flows in accordance with the special provisions for small companies under part 15 of the Companies Act 2006.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2021
2.
Accounting policies (continued)
In preparing the financial statements, the company has taken the exemption from preparing consolidated financial statements in accordance with the special provisions for small companies under part 15 of the Companies Act 2006.
The main area requiring judgement over estimation concerns the depreciation rates provided for fixed assets.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2021
Staff costs, including directors' remuneration, totalled £121,143 (2020 - £198,830) and comprised wages and salaries of £83,000 (2020 - £160,000), social security costs of £6,603 (2020 - £17,315) and defined contribution pension scheme costs of £31,540 (2020 - £21,515).
During the year retirement benefits were accruing to 2 directors (2020 - 2) in respect of defined contribution pension schemes.
Key Management Personnel compensation is as disclosed in note 7, above.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2021
There were no factors that may significantly affect future tax charges.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2021
The net book value of land and buildings may be further analysed as follows: freehold of £1,328,428 (2020 - £1,341,844) and short leasehold of £Nil (2020 - £Nil). Included in freehold land and buildings is land valued at £293,317 which is not depreciated. The land and buildings of the main site were revalued to £448,095 in 1993 and the adjacent land was revalued to £250,000 in 1997. The directors have adopted the transitional arrangements and do not in future intend to update this valuation.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2021
12.
Tangible fixed assets (continued)
On a historical basis, freehold land and buildings would have been included as follows: cost of £417,332 (2020 - £417,332) and accumulated depreciation of £85,208 (2020 - £82,510) resulting in a net book value of £332,124 (2020 - £334,822).
Assets held for use in operating leases Included within fixed assets are assets held for use in operating leases, for which the company receives rental income. The gross amount of assets on which leases are held is £1,626,001 (2020 - £1,626,001) and the accumulated depreciation is £297,573,157 (2020 - £284,157). At 28 February 2021 the Company's future minimum lease payments to be received in respect of assets held for use in operating leases are as follows:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2021
Subsidiary undertaking (continued)
Castlewood Holdings Limited has a 50% owned joint venture in the name of Boxley Timber and Fencing Supplies limited. The investment in the joint venture company comprises 500 ordinary £1 shares representing 50% of share capital. The principal activity of the business is that of timber and fencing distributors. At the year end Castlewood Holdings Limited's share of the aggregate amount of capital and reserves was £174,207 (2020 - £124,424). The share of the retained profit for the year after dividends was £49,783 (2020 - £19,218).
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2021
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2021
The pension cost charge represents contributions payable by the Company and amounted to £31,540 (2020 - £21,515). There are no unpaid contributions outstanding at the year end (2020 - Nil).
The company is controlled by the Milner-Moore family.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2021
Under a group registration the Company is jointly and severally liable for value added tax due by other group companies.
The Company has entered into a loan guarantee on behalf of Boxley Timber & Fencing Supplies Limited, a joint venture company in which a 50% share is held. The guarantee covers a value of up to £165,000.
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