Allgood Holdings Limited - Limited company accounts 23.1

REGISTERED NUMBER: 00360355 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2022

FOR

ALLGOOD HOLDINGS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTORS:

A M Carter-Clout

G P Shirville

REGISTERED OFFICE:

63/83 Brearley Street

Birmingham

West Midlands

B19 3NT

REGISTERED NUMBER:

00360355 (England and Wales)

AUDITORS:

Prime

Chartered Accountants

Statutory Auditor

161 Newhall Street

Birmingham

B3 1SW

The directors present their strategic report along with the financial statements of the company and the group for the year ended 30 November 2022.

The directors seek to present a balanced and comprehensive review of the development and performance of the business during the year and its position at the year-end. The report is consistent with the size and nature of the business.

ACTIVITIES AND STRATEGY

The company is a non-trading holding company for Allgood Plc and is the intermediate parent of the Allgood group.

The company aims to continue its support of the Allgood Plc group and raise income from its properties and its participating interest in Key Technologies International Limited.

BUSINESS PERFORMANCE

The results and financial position of the company are detailed in the financial statements. During the year the company received rental income and dividends from group subsidiaries along with dividends from its associate.

The operating loss was £323,000, which compares with a loss in 2021 of £1,335,000 that includes a £925,000

loan write off.

There was an other comprehensive loss of £2,405,000 (2021: £3,551,000 profit) in the year, attributable to an actuarial loss on the pension scheme of £4,253,000 (2021: £4,918,000 gain). The scheme remains in surplus but assets saw a reduction in the year that was greater than the reduction in liabilities. The company remains committed to the pension scheme and continues to meet its current commitments to the scheme.

PRINCIPAL RISKS AND UNCERTAINTIES

The company has identified its exposure to movements in the pension liability as a principal risk and uncertainty. The company's pension scheme Allgood Holdings Limited Pension and Life Assurance Scheme ("the scheme") faces similar risks to other UK defined benefit schemes, including low investment returns, inflation, increases in life expectancy and regulatory changes, which may mean the pension scheme becomes more of a financial burden.

The last Actuarial Valuation as at 31 March 2020 provides certainty over scheme funding until the next valuation due as at 31 March 2023. If the conclusion of this next valuation shows a movement from a pension surplus to a deficit, contributions to fund the change may have to rise, diverting cash resources from investment in the future operations of the group's business.

The pension surplus is calculated as the value of assets less liabilities and is influenced by the level of contributions paid by the company. There are a number of factors that can affect liabilities, including expected investment return at the valuation date. If lower future investment return is assumed this will reduce the scheme assets and the surplus, potentially returning it to a deficit and liability. The Trustees and the company regularly review investment performance and an investment strategy has been implemented to mitigate the impact of any increases in liabilities. This ensures there is a reasonable balance between risk and return. Whilst the current surplus has enabled the company to benefit from being able to defer deficit funding contributions, the company's current cash resource also provide some protection against the impact of potential changes in the funding position of the scheme. The funding liabilities also include a buffer against future negative experience, as current legislation requires the calculation of liabilities to be on a prudent basis.

The directors do not consider there to be any other risks or uncertainties affecting the company that are material to the assessment of its loss or financial position.

EVENTS SINCE THE END OF THE YEAR

The impact of increased worldwide inflation may impact business levels and pension liabilities in future years but presently the effects cannot be quantified.

There are no other events since the end of the year of relevance to this report.

ON BEHALF OF THE BOARD:

A M Carter-Clout - Director

25 July 2023

The directors present their report with the financial statements of the company for the year ended 30 November 2022.

DIVIDENDS

Dividends totalling £81,000 were paid in the year ended 30 November 2022 (2021: £Nil).

DIRECTORS

The directors shown below have held office during the whole of the period from 1 December 2021 to the date of this report.

A M Carter-Clout

G P Shirville

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.

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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:

-	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 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.

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.

AUDITORS

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

ON BEHALF OF THE BOARD:

A M Carter-Clout - Director

25 July 2023

Opinion

We have audited the financial statements of Allgood Holdings Limited (the 'company') for the year ended 30 November 2022 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 company's affairs as at 30 November 2022 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.

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.

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 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.

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 this gives rise to a material misstatement in the financial statements themselves. 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 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.

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.

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.

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.

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.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the industry sector;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence;

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining accounting estimates were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC and other relevant parties.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Morgan Davies FCA (Senior Statutory Auditor)

for and on behalf of Prime

Chartered Accountants

Statutory Auditor

161 Newhall Street

Birmingham

B3 1SW

27 July 2023

TURNOVER

-

-

Administrative expenses

480,549

1,412,246

(480,549

)

(1,412,246

)

Other operating income

157,800

76,800

OPERATING LOSS

4

(322,749

)

(1,335,446

)

Income from participating interests

110,489

-

Other finance income

13

147,000

49,000

257,489

49,000

(65,260

)

(1,286,446

)

Amounts written off investments

5

8

9

LOSS BEFORE TAXATION

(65,268

)

(1,286,455

)

Tax on loss

6

-

-

LOSS FOR THE FINANCIAL YEAR

(65,268

)

(1,286,455

)

LOSS FOR THE YEAR

(65,268

)

(1,286,455

)

OTHER COMPREHENSIVE (LOSS)/INCOME

Transfers from capital distribution

reserve

170,446

67,516

Actuarial gain/(loss) on pension

liability

(4,253,000

)

4,918,000

Revaluation of freehold property

521,795

-

Income tax relating to components of other comprehensive (loss)/income

1,026,500

(1,434,790

)

OTHER COMPREHENSIVE (LOSS)/INCOME FOR THE YEAR, NET OF INCOME TAX

(2,534,259

)

3,550,726

TOTAL COMPREHENSIVE (LOSS)/INCOME FOR THE YEAR

(2,599,527

)

2,264,271

FIXED ASSETS

Tangible assets

8

1,258,233

759,479

Investments

9

1,908,548

1,738,111

3,166,781

2,497,590

CURRENT ASSETS

Cash at bank

1,093,297

1,271,172

CREDITORS

Amounts falling due within one year

10

272,710

180,367

NET CURRENT ASSETS

820,587

1,090,805

TOTAL ASSETS LESS CURRENT LIABILITIES

3,987,368

3,588,395

PENSION ASSET

13

3,039,750

6,119,250

NET ASSETS

7,027,118

9,707,645

CAPITAL AND RESERVES

Called up share capital

11

201,667

201,667

Revaluation reserve

12

939,563

417,768

Capital redemption reserve

12

106,140

106,140

Capital distribution reserve

12

(53,042

)

(223,488

)

Retained earnings

12

5,832,790

9,205,558

SHAREHOLDERS' FUNDS

7,027,118

9,707,645

The financial statements were approved by the Board of Directors and authorised for issue on 25 July 2023 and were signed on its behalf by:

A M Carter-Clout - Director

Called up

share

Retained

Revaluatio

capital

earnings

reserve

£

£

£

Balance at 1 December 2020

201,667

7,008,803

417,768

Changes in equity

Total comprehensive income

-

2,196,755

-

Balance at 30 November 2021

201,667

9,205,558

417,768

Changes in equity

Dividends

-

(81,000

)

-

Total comprehensive loss

-

(3,291,768

)

521,795

Balance at 30 November 2022

201,667

5,832,790

939,563

Capital

Capital

redemption

distribution

Total

reserve

reserve

equity

£

£

£

Balance at 1 December 2020

106,140

(291,004

)

7,443,374

Changes in equity

Total comprehensive income

-

67,516

2,264,271

Balance at 30 November 2021

106,140

(223,488

)

9,707,645

Changes in equity

Dividends

-

-

(81,000

)

Total comprehensive loss

-

170,446

(2,599,527

)

Balance at 30 November 2022

106,140

(53,042

)

7,027,118

1.	STATUTORY INFORMATION

Allgood Holdings 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 Company 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 (FRS 102) "The Financial Reporting Standard applicable in the UK and Republic of Ireland", issued by the Financial Reporting Council and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, where required by FRS 102.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirement of paragraph 33.7.

The results of the company are consolidated in the ultimate parent's financial statements and these can be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.

Preparation of consolidated financial statements

The financial statements contain information about Allgood Holdings Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent, Carterville Limited, registered in England and Wales.

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.

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.

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 if the revision affects only that period, or in the period of revision and future periods if the revision effects both current and future periods.

Significant judgements and estimates - continued

In preparing these financial statements, the directors have made the following judgements:

The company reviews the carrying value of all assets for indications of impairment at each period. If indicators of impairment exist, the carrying value of the asset is subject to further testing to determine whether its carrying value exceeds its recoverable amount. This process will usually involve the estimation of future cash flows which are likely to be generated by the asset.

A provision is recognised when the company has a present legal or constructive obligation as a result of a past event for which it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. If the effect is material, provisions are determined by discounting the expected future cash flows at a rate that reflects the time value of money and the risk specific to the liability.

Whether a present obligation is probable or not requires judgement. The nature and type of risks for these provisions differ and management's judgement is applied regarding the nature and extent of obligations in deciding if an outflow of resources is probable or not.

The directors have reviewed the asset lives and associated residual values of all fixed assets classes. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projects disposal values.

In preparing these accounts the directors have made the following significant estimates:

The financial statements include a net defined benefit pension scheme liability, which comprise of expected future liabilities in excess of the scheme assets. The liabilities represent costs expected to be incurred in making pension payments to current and past employees who are members of the scheme.

The valuation of the pension scheme liability is determined on an actuarial basis using the Projected Unit Method. Assumptions are also made about mortality of the beneficiaries of the pension scheme and future rates of inflation. The assumptions underlying this calculation are disclosed in note 15.

Significant changes to the assumptions underlying these calculations over the next financial year could result in significant changes to the carrying value of the pension scheme liability.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

2% on cost, Straight line over 15 years and Straight line over 10 years

Fixtures and fittings

-

20% on cost

The directors have adopted a policy of revaluation with regards to Freehold Property.

Freehold property is carried at its revalued amount, being fair value at the date of valuation less subsequent losses arising from impairment reviews. Revaluations are performed by professional qualified valuers with sufficient regularity to ensure the carrying amount does not differ materially from those that would be determined using fair values at the end of each accounting period.

Tangible fixed assets - continued

Any revaluation increase in the carrying amount of freehold property is recognised in other comprehensive income and included in a revaluation reserve in equity, except to the extent that it reverses a revaluation decrease of the same asset previously recognised in profit and loss, in which case the increase is credited to the profit and loss to the extent that the previous decrease is expended. Decreases that offset previous increases of the same asset are charged in other comprehensive income and debited against the revaluation reserve in equity; decreases exceeding the balance in the revaluation reserve relating to an asset are recognised in profit or loss.

A valuation of freehold property was performed as at 30 November 2016 by Aitchison Raffety Property Consultants, who are external valuers. The basis of valuation was fair value as defined by RICS Valuation - Professional Standards.

Financial instruments

(i) Cash and cash equivalents

Cash and cash equivalents are basic financial instruments and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.

(ii) Financial assets and liabilities

All financial assets and liabilities are recognised when the company becomes party to the contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all its liabilities.

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit and loss, which are initially measured at fair value unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset at the balance sheet date when, and only when there exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Debt instruments that have no stated interest rate and are classified as payable or receivable within one year are initially measured at an undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment. Other debt instruments not meeting these conditions are measured at fair value through profit and loss.

Commitments to make or receive loans which meet the conditions mentioned above are measure at cost less impairment.

Financial assets are derecognised when and only when the contractual rights to the cash flows for the financial asset expire or are settled, when the company transfers to another party substantially all the risks and rewards of ownership of the financial asset, or the company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Financial instruments - continued

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

(iii) Investments

In the company balance sheet, investments in subsidiaries and associates are measured at cost less impairment.

Investments in non-puttable ordinary shares, which are publicly traded, are measured at fair value through profit and loss. Where fair value cannot be measured reliably, investments are measured at cost less impairment.

(iv) Equity instruments

Equity instruments issued by the company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs.

(v) Fair value measurement

The best evidence of fair value is a quoted price for an identical asset on an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant changes in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated using a valuation technique.

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.

Current or deferred taxation assets and liabilities are not discounted.

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.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

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.

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.

Foreign currencies

Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that balance sheet date. Transactions in foreign currencies are recorded at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss.

For financial assets carried at amortised costs, the amount of an impairment is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the financial asset's original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset's carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for the decrease in impairment loss, and the decrease can be related objectively to an event occuring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

3.	EMPLOYEES AND DIRECTORS

2022

2021

£

£

Wages and salaries

100,000

100,000

Social security costs

11,776

11,362

111,776

111,362

The average number of employees during the year was as follows:

2022

2021

Administration

2

2

2022

2021

£

£

Directors' remuneration

100,000

100,000

4.	OPERATING LOSS

The operating loss is stated after charging:

2022

2021

£

£

Depreciation - owned assets

23,040

23,000

Auditors' remuneration

6,250

6,250

5.

AMOUNTS WRITTEN OFF INVESTMENTS

2022

2021

£

£

Loss in movement in

fair value of investments

8

9

6.

TAXATION

Analysis of the tax charge

No liability to UK corporation tax arose for the year ended 30 November 2022 nor for the year ended 30 November 2021.

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2022

2021

£

£

Loss before tax

(65,268

)

(1,286,455

)

Loss multiplied by the standard rate of corporation tax in the UK of 19% (2021 - 19%)

(12,401

)

(244,426

)

Effects of:

Expenses not deductible for tax purposes

-

175,750

Income not taxable for tax purposes

(20,993

)

-

Depreciation in excess of capital allowances

4,379

4,371

Pension contributions

-

(11,020

)

Adjustment in respect of pension liability charge

(27,930

)

(9,310

)

Losses carried forward to future periods

56,945

84,635

Total tax charge

-

-

Tax effects relating to effects of other comprehensive income

2022

Gross

Tax

Net

£

£

£

Transfers from capital distribution

reserve

170,446

-

170,446

Actuarial gain/(loss) on pension

liability

(4,253,000

)

1,026,500

(3,226,500

)

Revaluation of freehold property

521,795

-

521,795

(3,560,759

)

1,026,500

(2,534,259

)

2021

Gross

Tax

Net

£

£

£

Transfers from capital distribution

reserve

67,516

-

67,516

Actuarial gain/(loss) on pension

liability

4,918,000

(1,434,790

)

3,483,210

4,985,516

(1,434,790

)

3,550,726

A provision of £143,664 has been made for deferred tax on unrealised gains recognised on revaluing freehold property to its fair value. This tax would become payable only if the property were sold without it being possible to claim rollover relief. In the prior year there was an unprovided deferred tax asset of approximately £13,015.

Trading losses totalling £5,691,344 (2021: £5,391,634), are available for carry forward to be relieved against future profits. Due to uncertainties over its recoverability, a deferred tax asset of £1,422,836 (2021: £1,347,909) relating to corporation tax losses has not been recognised.

7.

DIVIDENDS

2022

2021

£

£

Interim

81,000

-

8.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

and

property

fittings

Totals

£

£

£

COST OR VALUATION

At 1 December 2021

848,547

6,227

854,774

Revaluations

412,532

-

412,532

At 30 November 2022

1,261,079

6,227

1,267,306

DEPRECIATION

At 1 December 2021

91,559

3,736

95,295

Charge for year

21,795

1,245

23,040

Revaluation adjustments

(109,262

)

-

(109,262

)

At 30 November 2022

4,092

4,981

9,073

NET BOOK VALUE

At 30 November 2022

1,256,987

1,246

1,258,233

At 30 November 2021

756,988

2,491

759,479