Company Registration No. 03654866 (England and Wales)
CARTLIDGE MORLAND LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2020
PAGES FOR FILING WITH REGISTRAR
CARTLIDGE MORLAND LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 5
CARTLIDGE MORLAND LIMITED
BALANCE SHEET
AS AT 31 JULY 2020
31 July 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Intangible assets
3
1,022,186
1,189,510
Current assets
Cash at bank and in hand
42,186
25,134
Creditors: amounts falling due within one year
4
(263,060)
(336,900)
Net current liabilities
(220,874)
(311,766)
Total assets less current liabilities
801,312
877,744
Creditors: amounts falling due after more than one year
5, 8
(204,017)
(312,871)
Net assets
597,295
564,873
Capital and reserves
Called up share capital
6
15,203
15,203
Profit and loss reserves
582,092
549,670
Total equity
597,295
564,873
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 27 April 2021 and are signed on its behalf by:
A A Cartlidge
Director
Company Registration No. 03654866
CARTLIDGE MORLAND LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2020
- 2 -
1
Accounting policies
Company information
Cartlidge Morland Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Colingham House, 6-12 Gladstone Road, Wimbledon, London, SW19 1QT.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
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
Turnover
Turnover represents the amounts (excluding attributable VAT) derived from commissions and the provision of services to clients during the period.
Initial commission is recognised at the inception of the related policy, trail and renewal revenue is recognised as the right to consideration arises once target dates are passed. Work-in-progress on consultancy services is invoiced to clients at the end of each month so that there are no material amounts of work-in-progress outstanding at the year-end.
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1.3
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated
amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.4
Cash at bank and in hand
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. Bank overdrafts are shown within borrowings in current liabilities.
CARTLIDGE MORLAND LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2020
1
Accounting policies
(Continued)
- 3 -
1.5
Financial instruments
The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
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.
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 company after deducting all of its liabilities.
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
paymen
ts 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. A
m
ounts 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.
1.6
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.7
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
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
CARTLIDGE MORLAND LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2020
- 4 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Total
4
4
3
Intangible fixed assets
Goodwill
£
Cost
At 1 August 2019 and 31 July 2020
1,695,580
Amortisation and impairment
At 1 August 2019
506,070
Amortisation charged for the year
167,324
At 31 July 2020
673,394
Carrying amount
At 31 July 2020
1,022,186
At 31 July 2019
1,189,510
4
Creditors: amounts falling due within one year
2020
2019
£
£
Trade creditors
3,025
2,011
Corporation tax
113,968
155,390
Other creditors
146,067
179,499
263,060
336,900
Other creditors relates to deferred consideration which is being repaid at a rate of £13,333 per month. The instalments due within 12 months are included in other creditors.
CARTLIDGE MORLAND LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2020
- 5 -
5
Creditors: amounts falling due after more than one year
2020
2019
£
£
Other creditors
133,333
Loan from The Cartlidge Morland Partnership
204,017
179,538
204,017
312,871
6
Called up share capital
2020
2019
£
£
Ordinary share capital
Issued and fully paid
11,750 Ordinary A of £1 each
11,750
11,750
1,350 Ordinary B of £1 each
1,350
1,350
1,886 Ordinary C of £1 each
1,886
1,886
217 Ordinary D of £1 each
217
217
15,203
15,203
7
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Philip Allsop.
The auditor was BHP LLP.
8
Related party transactions
A A Cartlidge, C P Morland and J V Nurse are partners in The Cartlidge Morland Partnership. At the year end the company owed £204,017 (2019: £179,538) to The Cartlidge Morland Partnership. During the year the company charged management fees to The Cartlidge Morland Partnership of £96,079 and paid management fees of £265,078 (2019: £86,650 and £nil). The partners have confirmed that repayment of the loan of £204,017 will not be required within 12 months.