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Strategic Report, Report of the Directors and |
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Financial Statements for the Year Ended 30 September 2020 |
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Cartwright King Limited |
REGISTERED NUMBER:
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Strategic Report, Report of the Directors and |
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Financial Statements for the Year Ended 30 September 2020 |
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for |
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Cartwright King Limited |
Cartwright King Limited (Registered number: 10143062) |
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Contents of the Financial Statements |
for the Year Ended 30 September 2020 |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 4 |
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Report of the Independent Auditors | 6 |
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Income Statement | 8 |
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Other Comprehensive Income | 9 |
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Balance Sheet | 10 |
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Statement of Changes in Equity | 11 |
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Cash Flow Statement | 12 |
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Notes to the Cash Flow Statement | 13 |
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Notes to the Financial Statements | 15 |
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Cartwright King Limited |
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Company Information |
for the Year Ended 30 September 2020 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Pinnacle House |
1 Pinnacle Way |
Derby |
Derbyshire |
DE24 8ZS |
Cartwright King Limited (Registered number: 10143062) |
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Strategic Report |
for the Year Ended 30 September 2020 |
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The directors present their strategic report for the year ended 30 September 2020. |
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REVIEW OF BUSINESS |
During the first half of the financial year, trading performance was in line with directors' expectations but the second half was very considerably affected by the COVID-19 pandemic because it resulted in a very substantial reduction in expected fee income. |
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Whilst a reduction in overhead costs of just over £1M was achieved and the company's cost reduction measures continued during the year, the extent of the reduction in income resulted in the company making a net loss. |
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The impact of Covid has been a considerable challenge for all businesses within the sector, but the directors are confident that the changes to systems and personnel made by the Senior Management Team easing of the UK lockdown restrictions will ensure a return to pre-pandemic levels of profitability within a reasonable period of time. The company has traded positively since the September year end and turnover is returning to previous levels. |
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Government sourced public funding contracts are a major source of income for the company and, whilst the rates of pay in some sectors may be lower than in other areas of the profession, these contracts provide a reliable and sufficient source of income for the business model. |
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The company re-financed its bank borrowing during the year converting the majority of its loans to long term debt which leaves the company in a more stable position. The company's management continue to ensure costs and staff utilisation are constantly monitored to promote the company in moving forward successfully. |
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The directors are confident that the business can overcome the wholly exceptional conditions created by the COVID-19 pandemic and remain committed to the established strategies and to grow the firm's services within those existing markets. |
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Cartwright King Limited (Registered number: 10143062) |
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Strategic Report |
for the Year Ended 30 September 2020 |
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PRINCIPAL RISKS AND UNCERTAINTIES |
The outlook for 2020/21 remains relatively positive. In 2018 the company renewed and expanded the Legal Aid Agency civil contracts for 5 years, giving a secure opportunity for fresh expansion and the momentum for increasing the income received from outside the public sector. |
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The trading performance to date in the year to 30th September 2020 had been in line with the directors expectations, until the outbreak of the current COVID-19 pandemic that has gripped the country. This ultimately gave rise to poor performance during the year. However, following the year end, as restrictions have eased, the trading performance has returned to more normal levels. |
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Although the directors are satisfied that there are no specific significant risks to the business outside those normally associated with the very competitive nature of the legal services industry, they do recognise that there are some significant risks and uncertainties in relation to the wider economic market in the UK. |
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There is some uncertainty within the UK in relation to its exit from the European Union. Although this is a principal risk and there is an element of associated uncertainty, the directors believe that the company is well placed to overcome any negative impact of this, and therefore it is not viewed as a material uncertainty. |
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The UK, alongside the wider global economy, are currently battling with the COVID-19 pandemic. The various steps taken by the UK government in order to control the spread of the virus had resulted in a significant impact on the company's working arrangement and severely impacted the company's trading activity. |
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Although restrictions are beginning to ease, this remains a principal risk to the business and does give rise to a material uncertainty. The most significant factors causing the uncertainty are the current travel restrictions within the UK, when these will be lifted and when normal trading can recommence fully. However, based on the ability of staff to carry out significant aspects of work from home, and the utilisation of various support schemes implemented by the UK government in order to support businesses, the directors believe this has significantly mitigated the impact the pandemic will have on the company. |
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Despite this, the UK wide travel restrictions and social distancing measures in place, are having an effect on the business. Significant uncertainty in respect to these measures remains and dependant on the length of time these measures are in place, will depend on the level of impact they have on the company over the longer term. |
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ON BEHALF OF THE BOARD: |
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15 June 2021 |
Cartwright King Limited (Registered number: 10143062) |
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Report of the Directors |
for the Year Ended 30 September 2020 |
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The directors present their report with the financial statements of the company for the year ended 30 September 2020. |
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PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of a Solicitors firm. |
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DIVIDENDS |
Interim dividends per share were paid during the year as follows: |
Ordinary A1 £1 | - | £ |
Ordinary A2 £1 | - | £ |
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The total distribution of dividends for the year ended 30 September 2020 will be £
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EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 October 2019 to the date of this report. |
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DISCLOSURE IN THE STRATEGIC REPORT |
Review of the Business |
The review of the development and performance of the business of the company during the year and the future outlook of the company is set out in the Strategic Report. |
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Principal Risks and Uncertainties |
The review of the principal risks and uncertainties are set out in the Strategic Report. |
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STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
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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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements 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. |
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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 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. |
Cartwright King Limited (Registered number: 10143062) |
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Report of the Directors |
for the Year Ended 30 September 2020 |
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
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ON BEHALF OF THE BOARD: |
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Report of the Independent Auditors to the Members of |
Cartwright King Limited |
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Opinion |
We have audited the financial statements of Cartwright King Limited (the 'company') for the year ended 30 September 2020 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
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In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 30 September 2020 and of its loss 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. |
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Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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. |
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Conclusions relating to going concern |
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: |
- | the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or |
- | the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
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Emphasis of matter |
(i) Going concern |
In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the disclosures made in the Strategic Report, note 2, note 22 and note 23 to the financial statements, concerning the company's ability to continue to trade as a going concern. |
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The current COVID-19 pandemic in the UK and around the world, gives rise to a material uncertainty which may cast significant doubt about the company's ability to continue to trade as a going concern. The directors believe that despite the poor results shown in the year the company has been able to mitigate any risk relating to the pandemic, based on swift actions taken by management at the outset, the ability of staff to work from home and the utilisation of various government support schemes available to the business, in order to be able to continue to trade as a going concern. |
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The financial statements do not include any adjustments that would result if the company was unable to continue as a going concern. |
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Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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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. |
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In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Report of the Independent Auditors to the Members of |
Cartwright King Limited |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
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Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
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We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the 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. |
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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
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In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
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Auditors' 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 a Report of the Auditors 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. |
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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 Report of the Auditors. |
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Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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. |
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for and on behalf of
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Pinnacle House |
1 Pinnacle Way |
Derby |
Derbyshire |
DE24 8ZS |
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Cartwright King Limited (Registered number: 10143062) |
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Income Statement |
for the Year Ended 30 September 2020 |
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2020 | 2019 |
Notes | £ | £ |
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TURNOVER |
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Cost of sales |
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GROSS PROFIT |
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Administrative expenses |
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(1,082,275 | ) | 446,751 |
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Other operating income |
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OPERATING (LOSS)/PROFIT | 4 | ( |
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Interest receivable and similar income |
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(622,067 | ) | 449,033 |
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Interest payable and similar expenses | 5 |
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(LOSS)/PROFIT BEFORE TAXATION | ( |
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Tax on (loss)/profit | 6 | ( |
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(LOSS)/PROFIT FOR THE FINANCIAL
YEAR |
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Cartwright King Limited (Registered number: 10143062) |
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Other Comprehensive Income |
for the Year Ended 30 September 2020 |
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2020 | 2019 |
Notes | £ | £ |
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(LOSS)/PROFIT FOR THE YEAR | ( |
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OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR |
( |
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Cartwright King Limited (Registered number: 10143062) |
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Balance Sheet |
30 September 2020 |
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2020 | 2019 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 8 |
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Investments | 9 |
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CURRENT ASSETS |
Work in progress | 10 |
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Debtors | 11 |
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Cash in hand |
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CREDITORS |
Amounts falling due within one year | 12 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one year | 13 |
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NET (LIABILITIES)/ASSETS | ( |
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CAPITAL AND RESERVES |
Called up share capital | 17 |
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Retained earnings | 18 | ( |
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SHAREHOLDERS' FUNDS | ( |
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The financial statements were approved by the Board of Directors and authorised for issue on
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Cartwright King Limited (Registered number: 10143062) |
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Statement of Changes in Equity |
for the Year Ended 30 September 2020 |
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Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
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Balance at 1 October 2018 |
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Changes in equity |
Dividends | - | ( |
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Total comprehensive income | - |
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Balance at 30 September 2019 |
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Changes in equity |
Dividends | - | ( |
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Total comprehensive income | - | ( |
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Balance at 30 September 2020 |
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( |
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Cartwright King Limited (Registered number: 10143062) |
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Cash Flow Statement |
for the Year Ended 30 September 2020 |
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2020 | 2019 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
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Interest paid | ( |
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Tax paid | ( |
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Net cash from operating activities |
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Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
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Interest received |
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Net cash from investing activities | ( |
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Cash flows from financing activities |
Loan repayments in year |
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( |
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Capital repayments in year | ( |
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Amount introduced by directors | 1,445 | 145,941 |
Amount withdrawn by directors | 6,646 | (25,807 | ) |
Equity dividends paid | ( |
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Net cash from financing activities |
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Increase in cash and cash equivalents |
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Cash and cash equivalents at beginning of
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2 |
(2,049,078 |
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(2,127,858 |
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Cash and cash equivalents at end of year | 2 | ( |
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Cartwright King Limited (Registered number: 10143062) |
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Notes to the Cash Flow Statement |
for the Year Ended 30 September 2020 |
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1. |
RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS |
2020 | 2019 |
£ | £ |
(Loss)/profit before taxation | ( |
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Depreciation charges |
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Fixed asset investment impairment | - | 20,000 |
Government grants | ( |
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Finance costs | 150,054 | 208,738 |
Finance income | (444 | ) | (2,282 | ) |
(536,462 | ) | 593,710 |
Decrease in work in progress |
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Decrease in trade and other debtors |
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(Decrease)/increase in trade and other creditors | ( |
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Cash generated from operations |
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2. | CASH AND CASH EQUIVALENTS |
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The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
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Year ended 30 September 2020 |
30.9.20 | 1.10.19 |
£ | £ |
Cash and cash equivalents | 1,900 | 2,000 |
Bank overdrafts | ( |
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(872,652 | ) | (2,049,078 | ) |
Year ended 30 September 2019 |
30.9.19 | 1.10.18 |
£ | £ |
Cash and cash equivalents | 2,000 | 2,300 |
Bank overdrafts | ( |
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(2,049,078 | ) | (2,127,858 | ) |
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Cartwright King Limited (Registered number: 10143062) |
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Notes to the Cash Flow Statement |
for the Year Ended 30 September 2020 |
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3. | ANALYSIS OF CHANGES IN NET DEBT |
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At 1.10.19 | Cash flow | At 30.9.20 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 2,000 | (100 | ) | 1,900 |
Bank overdrafts | (2,051,078 | ) | 1,176,526 | (874,552 | ) |
(2,049,078 | ) |
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(872,652 | ) |
Debt |
Finance leases | (3,082 | ) | 3,082 | - |
Debts falling due within 1 year | (633,048 | ) | 159,673 | (473,375 | ) |
Debts falling due after 1 year | (972,199 | ) | (1,564,940 | ) | (2,537,139 | ) |
(1,608,329 | ) | (1,402,185 | ) | (3,010,514 | ) |
Total | (3,657,407 | ) | (225,759 | ) | (3,883,166 | ) |
Cartwright King Limited (Registered number: 10143062) |
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Notes to the Financial Statements |
for the Year Ended 30 September 2020 |
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1. | STATUTORY INFORMATION |
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Cartwright King Limited is a
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The |
Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the use of fair values for certain financial instruments in accordance with the accounting policies set out below. |
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Going concern and material uncertainties |
The financial statements have been prepared on the going concern basis as the directors believe the group to be a going concern, based on swift actions taken by management at the outset of the pandemic, the ability of staff to work from home and the utilisation of various government support schemes available for business. However the COVID-19 pandemic does give rise to a material uncertainty which may cast significant doubt over the company's ability to trade as a going concern. |
Further information has been provided within the Strategic Report. |
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Preparation of consolidated financial statements |
The financial statements contain information about Cartwright King Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company has taken the option under Section 402 of the Companies Act 2006 not to prepare consolidated financial statements on the grounds that the subsidiary undertakings are not material for the purpose of giving a true and fair view. |
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Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
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Significant judgements and estimates |
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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. |
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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 reversed if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
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Judgements |
No significant judgements have been made by management in preparing these financial statements. |
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Key sources of estimation uncertainty |
No key sources of uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies. |
Cartwright King Limited (Registered number: 10143062) |
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Notes to the Financial Statements - continued |
for the Year Ended 30 September 2020 |
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2. | ACCOUNTING POLICIES - continued |
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Revenue recognition |
Fees receivable represent the fair value of services provided during the year on client assignments. Fair value reflects the amount expected to be recoverable from clients based on time spent, skills provided and expenses incurred, and excludes VAT. Fee income is recognised as contract activity progresses and the right to consideration is secured, except where the final outcome cannot be assessed with reasonable certainty. |
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Fee income in respect of contingent fee assignments is recognised in the period when the contingent event occurs and collectability of the fee is assured. |
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Unbilled fee income on individual assignments is included as work in progress. |
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Tangible fixed assets |
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Office equipment | - |
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Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost less impairment. |
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Work in progress |
Work in progress is valued in accordance with FRS5 and the guidance issued in UITF 40. Hence all unbilled/incomplete time has been valued at fair value and reflects the time spent and the skills and expertise that have been provided. |
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Financial instruments |
The company enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as trade and other debtors and creditors, loans from and to related parties and bank loans. |
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Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
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Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
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Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
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The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
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Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Cartwright King Limited (Registered number: 10143062) |
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Notes to the Financial Statements - continued |
for the Year Ended 30 September 2020 |
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2. | ACCOUNTING POLICIES - continued |
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Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
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Cash and cash equivalents |
Cash and cash equivalents comprise cash on hand and call deposits, and other short term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. |
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Trade debtors |
Trade debtors are amounts due for goods sold or services rendered in the ordinary course of business. |
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Trade debtors are recognised at the transaction price. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtor. |
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Trade creditors |
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. |
|
Trade creditors are recognised at the transaction price. |
|
Trade creditors are classified as current liabilities of the company. The company does not have an unconditional right, at the end of the reporting date, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities. |
|
3. | EMPLOYEES AND DIRECTORS |
2020 | 2019 |
£ | £ |
Wages and salaries |
|
|
Social security costs |
|
|
Other pension costs |
|
|
|
|
|
The average number of employees during the year was as follows: |
2020 | 2019 |
|
Fee earning and administration |
|
|
|
2020 | 2019 |
£ | £ |
Directors' remuneration |
|
|
Compensation to director for loss of office |
|
|
|
The number of directors to whom retirement benefits were accruing was as follows: |
|
Money purchase schemes |
|
|
Cartwright King Limited (Registered number: 10143062) |
|
Notes to the Financial Statements - continued |
for the Year Ended 30 September 2020 |
|
4. | OPERATING (LOSS)/PROFIT |
|
The operating loss (2019 - operating profit) is stated after charging: |
|
2020 | 2019 |
£ | £ |
Hire of plant and machinery |
|
|
Depreciation - owned assets |
|
|
Depreciation - assets on finance leases |
|
|
Auditors' remuneration |
|
|
|
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2020 | 2019 |
£ | £ |
Bank interest |
|
|
Interest on overdue taxation |
|
|
|
|
|
6. | TAXATION |
|
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
2020 | 2019 |
£ | £ |
Current tax: |
UK corporation tax | ( |
) |
|
|
Deferred tax | ( |
) | ( |
) |
Tax on (loss)/profit | ( |
) |
|
|
Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
|
2020 | 2019 |
£ | £ |
(Loss)/profit before tax | ( |
) |
|
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of
(2019 - |
|
|
|
Effects of: |
Expenses not deductible for tax purposes |
|
|
Depreciation in excess of capital allowances |
|
|
Utilisation of tax losses | ( |
) |
|
Deferred tax movement | ( |
) | ( |
) |
Total tax (credit)/charge | (80,788 | ) | 67,612 |
Cartwright King Limited (Registered number: 10143062) |
|
Notes to the Financial Statements - continued |
for the Year Ended 30 September 2020 |
|
7. | DIVIDENDS |
2020 | 2019 |
£ | £ |
Ordinary A1 shares of £1 each |
Interim |
|
|
Ordinary A2 shares of £1 each |
Interim |
|
|
Ordinary A3 shares of £1 each |
Interim |
|
|
|
|
|
8. | TANGIBLE FIXED ASSETS |
Office |
equipment |
£ |
COST |
At 1 October 2019 |
|
Additions |
|
At 30 September 2020 |
|
DEPRECIATION |
At 1 October 2019 |
|
Charge for year |
|
At 30 September 2020 |
|
NET BOOK VALUE |
At 30 September 2020 |
|
At 30 September 2019 |
|
|
Fixed assets, included in the above, which are held under finance leases are as follows: |
Office |
equipment |
£ |
COST |
At 1 October 2019 |
|
Transfer to ownership | (47,096 | ) |
At 30 September 2020 |
|
DEPRECIATION |
At 1 October 2019 |
|
Transfer to ownership | (36,780 | ) |
At 30 September 2020 |
|
NET BOOK VALUE |
At 30 September 2020 |
|
At 30 September 2019 |
|
Cartwright King Limited (Registered number: 10143062) |
|
Notes to the Financial Statements - continued |
for the Year Ended 30 September 2020 |
|
9. | FIXED ASSET INVESTMENTS |
|
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
|
|
Registered office: C/o Cartwright King Solicitors, Lock House, Wilford Road, Nottingham, NG2 1AG |
Nature of business:
|
% |
Class of shares: | holding |
|
|
2020 | 2019 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Profit for the year |
|
|
|
|
Registered office: C/o Cartwright King Solicitors, Lock House, Wilford Road, Nottingham, NG2 1AG |
Nature of business:
|
% |
Class of shares: | holding |
|
|
2020 | 2019 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Profit for the year |
|
|
|
10. | WORK IN PROGRESS |
2020 | 2019 |
£ | £ |
Work-in-progress |
|
|
|
Costs of work in progress recognised as an expense in the year amounted to £7,335,840 (2019: £7,473,619). |
|
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Trade debtors |
|
|
Directors' loan accounts | - |
|
Tax |
|
|
Deferred tax |
|
|
Prepayments and accrued income |
|
|
|
|
Cartwright King Limited (Registered number: 10143062) |
|
Notes to the Financial Statements - continued |
for the Year Ended 30 September 2020 |
|
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Bank loans and overdrafts (see note 14) |
|
|
Other loans (see note 14) |
|
|
Finance leases (see note 15) |
|
|
Trade creditors |
|
|
Amounts owed to group undertakings |
|
|
Tax |
|
|
Social security and other taxes |
|
|
VAT |
|
|
Other creditors |
|
|
Directors' loan accounts |
|
|
Accruals and deferred income |
|
|
|
|
|
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2020 | 2019 |
£ | £ |
Bank loans (see note 14) |
|
|
Amounts owed to group undertakings |
|
|
|
|
|
14. | LOANS |
|
An analysis of the maturity of loans is given below: |
|
2020 | 2019 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
|
|
Bank loans |
|
|
Other loans |
|
|
|
|
|
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
|
|
|
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
|
|
|
15. | LEASING AGREEMENTS |
|
Minimum lease payments fall due as follows: |
|
Finance leases |
2020 | 2019 |
£ | £ |
Net obligations repayable: |
Within one year |
|
|
Cartwright King Limited (Registered number: 10143062) |
|
Notes to the Financial Statements - continued |
for the Year Ended 30 September 2020 |
|
15. | LEASING AGREEMENTS - continued |
|
Non-cancellable operating | leases |
2020 | 2019 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
In more than five years |
|
|
|
|
|
The amount of operating lease payments charged as an expense during the accounting period amounts to £629,790 (2019: £809,236). |
|
16. | SECURED DEBTS |
|
The following secured debts are included within creditors: |
|
2020 | 2019 |
£ | £ |
Bank overdrafts |
|
|
Bank loans |
|
|
Finance leases | - | 3,082 |
|
|
|
Bank loans and overdraft are secured by way of a fixed and floating charge over the company's assets, as well as personal guarantees provided by S J Gelsthorpe and M G Thurston to the extent of £1 million. |
|
17. | CALLED UP SHARE CAPITAL |
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2020 | 2019 |
value: | £ | £ |
|
Ordinary A1 | £1 | 10,000 | 10,000 |
|
Ordinary A2 | £1 | 10,000 | 10,000 |
|
Ordinary A3 | £1 | 5,000 | 5,000 |
25,000 | 25,000 |
|
The above shares have attached to them full voting, dividend and capital distribution (including on winding up) rights; they do not confer any rights of redemption. |
|
18. | RESERVES |
Retained |
earnings |
£ |
|
At 1 October 2019 |
|
Deficit for the year | ( |
) |
Dividends | ( |
) |
At 30 September 2020 | ( |
) |
Cartwright King Limited (Registered number: 10143062) |
|
Notes to the Financial Statements - continued |
for the Year Ended 30 September 2020 |
|
19. | PENSION COMMITMENTS |
|
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The amount charged against profits represent the contributions payable to the scheme in respect of the accounting period and amounts to £203,841 (2019: £205,791). At the year end there were contributions payable amounting to £31,814 (2019: £61,867). |
|
20. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
|
The following advances and credits to a director subsisted during the years ended 30 September 2020 and 30 September 2019: |
|
2020 | 2019 |
£ | £ |
|
Balance outstanding at start of year |
|
|
Amounts advanced |
|
|
Amounts repaid | ( |
) |
|
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | ( |
) |
|
|
Interest was charged on directors' advances at HM Revenue & Customs' official rate, being 2.5% per annum to the 5th April 2020 and 2.25% per annum thereafter. |
|
21. | RELATED PARTY DISCLOSURES |
|
|
2020 | 2019 |
£ | £ |
Salaries | - | 24,500 |
Social security contributions | - | 2,010 |
Termination compensation | - | 37,042 |
|
22. | POST BALANCE SHEET EVENTS |
|
COVID-19 |
|
Following the accounting period to which these financial statements relate, the COVID-19 pandemic around the world continues to have a significant impact on the global economy. |
|
The directors believe that any financial effect on the company cannot be reasonably and reliably measured and do not believe it to be appropriate to adjust the financial statements in respect to this event. |
|
Despite poor results in the period resulting from the impact of the pandemic, the financial statements have been prepared on the going concern basis as the directors believe the company to be a going concern, based on swift actions taken by management at the outset of the pandemic, the ability of staff to work from home and the utilisation of various government support schemes available for business. However the COVID-19 pandemic does give rise to a material uncertainty which may cast significant doubt over the companies ability to trade as a going concern. |
|
Further information has been provided within the Strategic Report, Accounting Policies note 2 and note 23. |
Cartwright King Limited (Registered number: 10143062) |
|
Notes to the Financial Statements - continued |
for the Year Ended 30 September 2020 |
|
23. | GOING CONCERN |
|
These accounts have been prepared on a going concern basis despite the net liabilities at the year-end of £464,644. It is the intention of the directors of Cartwright King Limited to continue to support the company for the foreseeable future. Following the re-structuring of the debt over a longer term the directors believe that the company can meet all of its obligations as they fall due. |
|
Although management believe the company to be a going concern they do accept that the current state of the COVID-19 pandemic in the UK and around the world, gives rise to a material uncertainty which may cast significant doubt about the company's ability to continue to trade as a going concern. |
|
The directors of Cartwright King Limited believe that the company is able to mitigate any risk relating to the pandemic, as management had taken swift action at the outset of the pandemic. The continuing ability of staff to work from home and the utilisation of various government support schemes available for business also aid Cartwright King Limited in continuing to trade as a going concern. |
|
Further information has been provided within the Strategic Report. |