Caridon Property Limited - Limited company accounts 20.1

REGISTERED NUMBER: 06883096 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2020

FOR

CARIDON PROPERTY LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Director

4

Report of the Independent Auditors

5

Consolidated Income Statement

7

Consolidated Other Comprehensive Income

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

15

DIRECTOR:

Mr M J Carrozzo

REGISTERED OFFICE:

1 Kings Avenue

Winchmore Hill

London

N21 3NA

REGISTERED NUMBER:

06883096 (England and Wales)

AUDITORS:

AGK Partners

Chartered Accountants & Statutory Auditors

1 Kings Avenue

London

N21 3NA

The director presents his strategic report of the company and the group for the year ended 31 October 2020.

REVIEW OF BUSINESS

The principal activities of the group are those of specialist rent guarantee, lettings and management services.

The group had another successful year with an increase in turnover of 19.85% due to the expansion of our property portfolio in the South east during the year,this also resulted in increase in gross profit margin from 18.67% to 21.59% in current year.

The profit before tax for the year is £776,201 (2019: £345,645).

During the year to 31 October 2020, the world has been hit by the global COVID-19 pandemic which has affected the way we do business as it has with many others. We have been able to carry on with very little interruption due to our linked IT infrastructure, and as far as financial impact, we have actually seen an increase in demand for our social homes provision. We continue to monitor the situation and our offices are prepared for a full return of staff to the office with sufficient supplies of PPE, separation of desk-space, perspex screens for shielding and a staff rotation system in place for when the situation or restrictions ease.

We feel that due to good management and a disciplined finance function, we are in a better position than many to weather the storm. We will avoid the inevitable raft of job losses that many other companies will be forced to make as a result of their business income suffering. We continue to focus closely on costs across the business and have revised our forecasts and cash flows for the next year and continue to enjoy a strong and supportive relationship with our bankers.

Caridon Property has a ten-year history of continuous growth and investment, particularly in human capital. This has given the business the resilience that the board believes other competitors may lack. The board is quietly optimistic that opportunities will emerge in the forthcoming year, which Caridon Property will be well placed to seize.

PRINCIPAL RISKS AND UNCERTAINTIES

The market in which we operate remains highly competitive. We seek to sustain and improve our level of performance over the long term by actively managing risk across all areas of the business. This approach provides a stable environment for our people and ensures that customer can trade with us in the knowledge that risks are minimised. The main risks are competition risk, reputational risk, credit risk and finance risk.

Competition Risk

The company operates in a highly competitive market place and is reliant on its local authority partners for referrals which are occasionally subject to a competitive bid/tender process. Renewal of these contracts is uncertain and based on financial and performance criteria.

Credit risk

It is the risk that one party to a financial transaction will cause a financial loss for that other party by failing to discharge an obligation. Company policies are aimed at minimising such losses, and require that deferred terms are only granted to customers who demonstrate an appropriate payment history and satisfy credit worthiness procedures.

The other commercial risks faced by the company are controlled by suitable internal control procedures and monthly monitoring of management accounts.

KEY PERFORMANCE INDICATORS

Directors consider the following as the key performance indicators:

Details

2020

2019

£

£

Turnover

17,039,180

14,216,508

Gross profit

3,679,457

2,654,394

Gross margin

21.59%

18,67%

Profit before tax

776,201

345,645

Net Assets

923,873

459174

Quick Assets

1.28

1.18

EBITDA Margin

5.34%

3.35%

FINANCIAL POSITION

The group and the company are in good health and remains strongly cash generative allowing the expansion of the business from its own resources.

ON BEHALF OF THE BOARD:

Mr M J Carrozzo - Director

24 November 2021

The director presents his report with the financial statements of the company and the group for the year ended 31 October 2020.

DIVIDENDS

Interim dividends per share were paid as follows:

Ordinary C £1 shares

£2719

- 31 October 2020

Ordinary 10p shares

NIL

Ordinary B 10p shares

£139.40

- 31 October 2020

The director recommends that no final dividends be paid.

The total distribution of dividends for the year ended 31 October 2020 will be £ 152,995 .

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.

DIRECTOR

Mr M J Carrozzo held office during the whole of the period from 1 November 2019 to the date of this report.

DIRECTOR'S RESPONSIBILITIES STATEMENT

The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

-	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.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he 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 group's auditors are aware of that information.

AUDITORS

The auditors, AGK Partners, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr M J Carrozzo - Director

24 November 2021

Opinion

We have audited the financial statements of Caridon Property Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2020 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 October 2020 and of the group's profit 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.

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 group 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.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

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.

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.

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 Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director.

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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Director's Responsibilities Statement set out on page four, the director is 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 director determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the director is responsible for assessing the group's and the parent 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 director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so.

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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identify and assess the risks of material misstatement of the financial statements due to fraud and obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses. Based on the presumption that there are risks of fraud resulting from management override, revenue recognition and accounting estimates and judgements, we carry out the following procedures amongst others, we perform detailed reviews of adjusting journal entries and investigating any that appear unusual as to nature or amount. We investigate the possibility of related parties and the sources of financial resources supporting the transactions.

We perform substantive analytical procedures relating to revenue using disaggregated data, for example, confirming

revenue for the year to agreed contracts. We review accounting estimates and evaluate whether the judgments and

decisions made by management in making the accounting estimates indicate a possible bias on the part of the entity's management that may represent a risk of material misstatement due to fraud.

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.

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.

Alekos Christofi (FCCA) (Senior Statutory Auditor)

for and on behalf of AGK Partners

Chartered Accountants & Statutory Auditors

1 Kings Avenue

London

N21 3NA

24 November 2021

REVENUE

17,039,180

14,216,508

Cost of sales

13,359,723

11,562,114

GROSS PROFIT

3,679,457

2,654,394

Administrative expenses

2,957,308

2,306,002

722,149

348,392

Other operating income

59,836

-

OPERATING PROFIT

5

781,985

348,392

Interest receivable and similar income

203

121

782,188

348,513

Interest payable and similar expenses

6

5,987

2,868

PROFIT BEFORE TAXATION

776,201

345,645

Tax on profit

7

158,623

75,485

PROFIT FOR THE FINANCIAL YEAR

617,578

270,160

Profit attributable to:

Owners of the parent

617,578

270,160

PROFIT FOR THE YEAR

617,578

270,160

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

617,578

270,160

Total comprehensive income attributable to:

Owners of the parent

617,462

270,044

Non-controlling interests

116

116

617,578

270,160

FIXED ASSETS

Intangible assets

10

2,881

16,301

Property, plant and equipment

11

356,949

285,998

Investments

12

-

-

359,830

302,299

CURRENT ASSETS

Debtors

13

2,089,529

1,715,205

Cash at bank and in hand

1,464,361

169,210

3,553,890

1,884,415

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

14

2,766,647

1,597,095

NET CURRENT ASSETS

787,243

287,320

TOTAL ASSETS LESS CURRENT LIABILITIES

1,147,073

589,619

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

15

(160,300

)

(85,345

)

PROVISIONS FOR LIABILITIES

18

(62,900

)

(45,100

)

NET ASSETS

923,873

459,174

CAPITAL AND RESERVES

Called up share capital

19

205

205

Retained earnings

20

923,436

458,853

SHAREHOLDERS' FUNDS

923,641

459,058

NON-CONTROLLING INTERESTS

232

116

TOTAL EQUITY

923,873

459,174

The financial statements were approved by the director and authorised for issue on 24 November 2021 and were signed by:

Mr M J Carrozzo - Director

FIXED ASSETS

Intangible assets

10

2,881

16,301

Property, plant and equipment

11

88,228

147,043

Investments

12

180

180

91,289

163,524

CURRENT ASSETS

Debtors

13

1,931,074

1,584,275

Cash at bank and in hand

1,328,119

143,685

3,259,193

1,727,960

CREDITORS

Amounts falling due within one year

14

2,687,708

1,495,569

NET CURRENT ASSETS

571,485

232,391

TOTAL ASSETS LESS CURRENT LIABILITIES

662,774

395,915

CREDITORS

Amounts falling due after more than one year

15

(68,178

)

(35,218

)

PROVISIONS FOR LIABILITIES

18

(12,400

)

(19,300

)

NET ASSETS

582,196

341,397

CAPITAL AND RESERVES

Called up share capital

19

205

205

Retained earnings

20

581,991

341,192

SHAREHOLDERS' FUNDS

582,196

341,397

Company's profit for the financial year

393,794

188,867

The financial statements were approved by the director and authorised for issue on 24 November 2021 and were signed by:

Mr M J Carrozzo - Director

Called up

share

Retained

Non-controlling

Total

capital

earnings

Total

interests

equity

£

£

£

£

£

Balance at 1 November 2018

305

341,688

341,993

-

341,993

Changes in equity

Issue of share capital

(100

)

-

(100

)

-

(100

)

Dividends

-

(152,995

)

(152,995

)

-

(152,995

)

Total comprehensive income

-

270,160

270,160

116

270,276

Balance at 31 October 2019

205

458,853

459,058

116

459,174

Changes in equity

Dividends

-

(152,995

)

(152,995

)

-

(152,995

)

Total comprehensive income

-

617,578

617,578

116

617,694

Balance at 31 October 2020

205

923,436

923,641

232

923,873

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 November 2018

205

305,320

305,525

Changes in equity

Dividends

-

(152,995

)

(152,995

)

Total comprehensive income

-

188,867

188,867

Balance at 31 October 2019

205

341,192

341,397

Changes in equity

Dividends

-

(152,995

)

(152,995

)

Total comprehensive income

-

393,794

393,794

Balance at 31 October 2020

205

581,991

582,196

Cash flows from operating activities

Cash generated from operations

1

1,659,266

164,742

Interest paid

(4,080

)

(1,756

)

Interest element of finance lease payments paid

(1,907

)

(1,112

)

Tax paid

271

(107,689

)

Net cash from operating activities

1,653,550

54,185

Cash flows from investing activities

Purchase of tangible fixed assets

(187,697

)

(220,279

)

Sale of tangible fixed assets

-

4,775

Interest received

203

121

Net cash from investing activities

(187,494

)

(215,383

)

Cash flows from financing activities

New loans in year

-

(1,397

)

Capital repayments in year

(17,180

)

56,196

Amount introduced by directors

(730

)

730

Share issue

-

(100

)

Equity dividends paid

(152,995

)

(152,995

)

Net cash from financing activities

(170,905

)

(97,566

)

Increase/(decrease) in cash and cash equivalents

1,295,151

(258,764

)

Cash and cash equivalents at beginning of year

2

169,210

427,974

Cash and cash equivalents at end of year

2

1,464,361

169,210

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2020

2019

£

£

Profit before taxation

776,201

345,645

Depreciation charges

130,164

140,860

Profit on disposal of fixed assets

-

(3,102

)

Government grants

(45,586

)

-

Finance costs

5,987

2,868

Finance income

(203

)

(121

)

866,563

486,150

Increase in trade and other debtors

(374,208

)

(887,281

)

Increase in trade and other creditors

1,166,911

565,873

Cash generated from operations

1,659,266

164,742

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 October 2020

31.10.20

1.11.19

£

£

Cash and cash equivalents

1,464,361

169,210

Year ended 31 October 2019

31.10.19

1.11.18

£

£

Cash and cash equivalents

169,210

427,974

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.11.19

Cash flow

At 31.10.20

£

£

£

Net cash

Cash at bank and in hand

169,210

1,295,151

1,464,361

169,210

1,295,151

1,464,361

Debt

Finance leases

(112,508

)

17,180

(95,328

)

Debts falling due within 1 year

-

(7,865

)

(7,865

)

Debts falling due after 1 year

-

(92,135

)

(92,135

)

(112,508

)

(82,820

)

(195,328

)

Total

56,702

1,212,331

1,269,033

1.	STATUTORY INFORMATION

Caridon Property Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

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.

The financial statements have been prepared on a going concern basis as the directors are satisfied that the company will have adequate resources to meet its liability to third parties as they fall due.

The company's principal activity during the year was that of guaranteed rent specialists.

Basis of consolidation

The group financial statements consolidate the financial statements of Carion Property Limited and all its subsidiary undertakings drawn up to 31 October each year. No profit and loss account is presented for as Caridon Property Limited as permitted by section 408 of the Companies Act 2006.

Subsidiaries are consolidated from the date of their acquisition, being the date on which the Group obtains control and continue to be consolidated until the date that such control ceases. Control comprises the power to govern the financial and operating policies of the investee so as to obtain benefit from its activities.All intra-group transactions, balances, income and expenses are eliminated on consolidation.

Investment in Subsidiaries

In the parent company financial statements investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Goodwill

Goodwill arising on acquisition of a trade or on each business combination is capitalised, classified as an asset on the statement of financial position and amortised on a straight line basis over its useful life of 10 years. No amortisation is provided in the year of purchase.

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.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Significant judgements and estimates

In the application of the company's accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount 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 relevant. Actual results may differ from these estimates.

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 revised where the revision affects only that period. or in the period of the revision and future periods where the revision affects both current and future periods.