| Castlemore Group Holdings Limited |
| Notes to the Accounts |
| for the year ended 31 December 2018 |
|
|
| 1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard) other than where additional disclosure is required to give a true and fair view. As a result of the uncertainties over going concern described below, it is no longer appropriate to prepare the financial statements on a going concern basis and a break-up basis has been adopted. |
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Going concern |
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The directors have considered the company's ability to continue as a going concern given the net liabilities of £8,490,011 (2017: £8,855,062), forecasts for a period of twelve months from the approval of these accounts and the insolvency, liquidations and dissolutions of a significant part of the company's subsidiary interests.
The directors consider that it is no longer appropriate to prepare the financial statements on a going concern basis. Consequently the directors have reduced the carrying value of assets to reflect break-up value. |
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Financial instruments |
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The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
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 profit or loss.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the company would receive for the asset if it were to be sold at the reporting date.
Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is an 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. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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Investments |
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Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account. |
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Leased assets |
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
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| 2 |
Investments |
| Investments in |
| subsidiary |
Other |
| undertakings |
investments |
Total |
| £ |
£ |
£ |
|
Cost |
|
At 1 January 2018 |
2 |
|
1,538,700 |
|
1,538,702 |
|
Revaluation |
- |
|
465,852 |
|
465,852 |
|
|
At 31 December 2018 |
2 |
|
2,004,552 |
|
2,004,554 |
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| 3 |
Debtors |
2018 |
|
2017 |
| £ |
£ |
|
|
Other debtors |
1,601,620 |
|
2,141,192 |
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| 4 |
Creditors: amounts falling due within one year |
2018 |
|
2017 |
| £ |
£ |
|
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Obligations under finance lease and hire purchase contracts |
4,899,144 |
|
5,356,475 |
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Amounts owed to group undertakings and undertakings in which the company has a participating interest |
|
7,196,657 |
|
7,203,789 |
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Other creditors |
660 |
|
1,982 |
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12,096,461 |
|
12,562,246 |
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| 5 |
Loans |
2018 |
|
2017 |
| £ |
£ |
|
Creditors include: |
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Secured bank loans |
672,612 |
|
1,039,044 |
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Other loans are secured over certain listed investments held by the company. The loans are repayable annual installments plus interest. Interest is charged at 3.5% per annum. |
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| 6 |
Related party transactions |
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Cedar Investments Portfolio Limited |
|
Common director |
|
Interest bearing loan |
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Amount due from (to) the related party |
(4,226,533) |
|
(4,061,615) |
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Castlemore Securities Limited Directors Pension Scheme |
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The company directors are trustees and beneficiaries of the Pension Scheme |
|
Interest bearing secured loan |
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Amount due from (to) the related party |
(672,612) |
|
(1,039,044) |
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|
JG Whateley |
|
Director |
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Interest free loan |
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Amount due from (to) the related party |
- |
|
(255,815) |
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Deeble Ventures Two Limited |
|
Common director |
|
Interest bearing loan |
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Amount due from (to) the related party |
1,244,162 |
|
1,076,192 |
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Cedar Invest Limited |
|
Common director |
|
Interest free loan |
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Amount due from (to) the related party |
42,458 |
|
- |
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| 7 |
Controlling party |
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The trustees of a settlement for the benefit of the children of JG Whateley held 74% of the share capital of Castlemore Group Holdings Limited. This trust was established by Mr JG Whateley, a director of the company, for the benefit of his children. The trustees are Mills & Reeve Trust Corporation Limited. The trustees are the ultimate controlling party. |
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| 8 |
Other information |
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Castlemore Group Holdings Limited is a private company limited by shares and incorporated in England. Its registered office is: |
|
Cedar Court |
|
221 Hagley Road |
|
Hayley Green |
|
West Midlands |
|
B63 1ED |
