|
CJCT (Studio North) Limited
Registered number: 07969975
Information for filing with the Registrar
For the year ended 31 December 2021
|
|
|
|
07969975
31 December 2021
|
CJCT (STUDIO NORTH) LIMITED
REGISTERED NUMBER: 07969975
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debtors: amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creditors: amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets less current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 30 September 2022.
The notes on pages 2 to 10 form part of these financial statements.
- 1 -
|
|
|
|
07969975
31 December 2021
|
CJCT (STUDIO NORTH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
CJCT (Studio North) Limited ("the Company") is a private Company limited by shares, registered number 07969975, incorporated in England and Wales. The address of its principal place of business is Rose Wharf, 78 East Street, Leeds, LS9 8EE.
The principal activity of the Company continues to be that of architects.
The Company is a wholly owned subsidiary of Careyjones Chapmantolcher Limited, a company registered in England and Wales, which is the immediate parent company. The ultimate parent company is CJCT Group Limited, a company registered in England and Wales.
These financial statements have been presented in pound sterling which is the functional currency of the Company, and rounded to the nearest £.
2.Accounting policies
|
|
|
Basis of preparation of financial statements
|
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of 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 judgement in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company's forecasts, taking account of reasonably possible changes in trading performance, show that the Company should be able to operate within its current working capital facilities. In common with other businesses in the architectural profession, the Company's forecasts include a certain amount of fee income that is not secured at the date of approval of these financial statements. However, based on historic and current trading, the director expects the Company to be able to achieve those projected fees.
The director has a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future and continue to adopt the going concern basis of accounting in preparing the annual financial statements. The director has considered a period in excess of twelve months from the date of the approval of these financial statements in making his assessment.
- 2 -
|
|
|
|
07969975
31 December 2021
|
CJCT (STUDIO NORTH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue 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 revenue is recognised:
Rendering of services
Revenue 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 revenue 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 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.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
The estimated useful lives range as follows:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
- 3 -
|
|
|
|
07969975
31 December 2021
|
CJCT (STUDIO NORTH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.Accounting policies (continued)
|
|
|
Cash and cash equivalents
|
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 like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.
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 best estimate of the recoverable amount, 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.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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.
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
- 4 -
|
|
|
|
07969975
31 December 2021
|
CJCT (STUDIO NORTH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.Accounting policies (continued)
Grants are accounted under the accruals model as permitted by FRS 102. Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.
The UK government has offered a range of financial support packages to help companies during the COVID-19 Coronavirus pandemic. Of the offered schemes, the Company has used the furlough scheme and deferment of VAT payments. The income from the furlough scheme has been recognised within “other operating income”. Government grants are recognised when the entity has a reasonable assurance that they will comply with the conditions attaching the grant and that the grant will be received.
The Company operates a defined contribution plan for its employees. 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 payment obligations.
The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
Tax is recognised in the Statement of Comprehensive Income, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of Financial Position date, except that:
• The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
• Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
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 reporting date.
- 5 -
|
|
|
|
07969975
31 December 2021
|
CJCT (STUDIO NORTH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
|
|
Judgements in applying accounting policies and key sources of estimation uncertainty
|
The critical judgements that the director has made in the process of applying the company's accounting policies that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below.
(i) Assessing indicators of impairment
In assessing whether there have been any indicators of impairment of assets, the director has considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability and where applicable, the ability of the asset to be operated as planned. There have been no indicators of impairment identified during the current financial year.
(ii) Determining the stage of completion of ongoing projects at the year end
In assessing the level of completion of architectural design projects ongoing at the year end, the director has considered the time costs of employees working on those projects, as well as the amounts billed in fees in relation to each project up to the year end. The director believes, based upon his knowledge and experience of similar projects over the years that the correct amount of profit has been recognised and the amounts recognised as billed in advance are appropriate.
Key sources of estimation uncertainty
The director does not believe there are any key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
|
|
Fees payable to the Company's auditor for the audit of the Company's annual financial statements totalled £10,500 (2020 - 9,500).
|
|
|
The average monthly number of employees, including directors, during the year was 16 (2020 - 12).
|
- 6 -
|
|
|
|
07969975
31 December 2021
|
CJCT (STUDIO NORTH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge for the year on owned assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed by group undertakings
|
|
|
|
|
Prepayments and accrued income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed by group undertakings are unsecured, interest free and repayable on demand.
|
- 7 -
|
|
|
|
07969975
31 December 2021
|
CJCT (STUDIO NORTH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
|
|
Creditors: Amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed to group undertakings
|
|
|
|
|
|
|
|
|
|
Other taxation and social security
|
|
|
|
|
Accruals and deferred income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed to group undertakings are unsecured, interest free and repayable on demand.
|
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £19,277 (2020: £20,322). Contributions totalling £Nil (2020: £Nil) were payable to the fund at the reporting date and are included in creditors.
|
|
Commitments under operating leases
|
|
|
At 31 December 2021 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Later than 1 year and not later than 5 years
|
|
|
|
|
|
|
|
- 8 -
|
|
|
|
07969975
31 December 2021
|
CJCT (STUDIO NORTH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
|
|
Related party transactions
|
|
|
During the year, the company was charged £36,000 (2020: £36,000) for services provided by Careyjones Chapmantolcher (Studio South) Limited, a fellow subsidiary undertaking.
In addition, CJCT (Studio North) Limited charged £35,916 (2020: £42,094) for administrative salaries to Careyjones Chapmantolcher (Studio South) Limited.
Other transactions during the year with Careyjones Chapmantolcher (Studio South) Limited included sales of £124,107 (2020: £150,000) and purchases of £69,222 (2020: £18,128).
Dividends of £300,000 were paid during the year (2020: £Nil) to its parent company, Careyjones Chapmantolcher Limited
Key management personnel are considered to be the director who received total compensation of £nil (2020: £nil) during the year.
Balances due from/(to) the related parties described above as at 31 December 2021 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Careyjones Chapmantolcher (Studio South) Limited
|
|
|
|
|
Careyjones Chapmantolcher Limited
|
|
|
|
|
Post balance sheet events
|
Impact of the Ukraine crisis
On 24 February 2022 Russian Forces entered Ukraine, resulting in Western Nation reactions including announcements of sanctions against Russia and Russian interests worldwide and an economic ripple effect on the global economy. The Director has carried out an assessment of the potential impact of Russian Forces entering Ukraine on the business, including the impact of mitigation measures and uncertainties, and have concluded that this is a non-adjusting post balance sheet event with the greatest impact on the business expected to be from the economic ripple effect on the global economy. The Director has taken account of these potential impacts in their going concern assessment.
Dividends of £200,000 were paid post year end to its parent company, Careyjones Chapmantolcher Limited.
- 9 -
|
|
|
|
07969975
31 December 2021
|
CJCT (STUDIO NORTH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
The immediate parent company is Careyjones Chapmantolcher Limited, a company registered in England and Wales which owns 100% of the issued share capital of the company. Careyjones Chapmantolcher Limited also owns 100% of the issued share capital of Careyjones Chapmantolcher (Studio South) Limited, the company's fellow subsidiary.
The ultimate parent company is CJCT Group Limited, a company registered in England and Wales.
The ultimate controlling party is Mr T R N Tolcher, a director of the company, due to his shareholding in CJCT Group Limited.
The auditor's report on the financial statements for the year ended 31 December 2021 was unqualified.
The audit report was signed on 30 September 2022 by Christopher Hudson (Senior Statutory Auditor) on behalf of Mazars LLP.
- 10 -
|
