Company registration number 01502152 (England and Wales)
CHP SUPPLIES LIMITED
ANNUAL REPORT
AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
CHP SUPPLIES LIMITED
COMPANY INFORMATION
Directors
Mr S P Hollowed
Mr J T Shirley
Mr P H Wilding
Mr B Hodkinson
Miss H J Hollowed
(Appointed 22 September 2021)
Secretary
Mr S P Hollowed
Company number
01502152
Registered office
55 Pottery Road
Wigan
Auditor
Barlow Andrews LLP
Carlyle House
78 Chorley New Road
Bolton
Bankers
HSBC Bank plc
21 The Grand Arcade
Wigan
CHP SUPPLIES LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 22
CHP SUPPLIES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2022
- 1 -
The directors present the strategic report for the year ended 30 June 2022.
Fair review of the business
The company continues to operate out of six depots which are based in the North West.
The directors are pleased with the results for the year in light of the pandemic that has impacted trade throughout the year.
Principal risks and uncertainties
A risk assessment is carried out on a regular basis by the directors to formally identify the risks most important to the company. Risk management and internal control reviews are also carried out throughout the year.
Liquidity risk
The company manages its cash requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.
Credit risk
Credit risk from trade debtors is managed by operating strict credit control procedures, including detailed credit reference checks on new customers, regular reviews of credit limits, daily monitoring of payments received against agreed terms, and comparing debtor days on a regular basis.
Key performance indicators
The key financial and other performance indicators during the year were as follows:
2022 2021
£'m £'m
Company sales 16.0 16.3
Company overheads 2.5 2.4
Number of employees 59 58
Number of depots 6 6
The directors are pleased with the overall performance of the company.
In the current year, they look to increase their market share by increasing sales through their existing depots and also looking for opportunities to open new depots at key strategic locations.
Mr S P Hollowed
Director
28 March 2023
CHP SUPPLIES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2022
- 2 -
The directors present their annual report and financial statements for the year ended 30 June 2022.
Principal activities
The principal activity of the company is the wholesale of central heating parts and general plumbing requisites
and the retail of bathroom furniture and accessories
.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £57,000. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr S P Hollowed
Mr J T Shirley
Mr P H Wilding
Mr B Hodkinson
Miss H J Hollowed
(Appointed 22 September 2021)
Auditor
The auditor, Barlow Andrews LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s
auditor
is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s
auditor
is aware of that information.
On behalf of the board
Mr S P Hollowed
Director
28 March 2023
CHP SUPPLIES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2022
- 3 -
The directors are responsible for preparing the annual report 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). 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.
CHP SUPPLIES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CHP SUPPLIES LIMITED
- 4 -
Opinion
We have audited the financial statements of CHP Supplies Limited
(the 'company')
for the year ended
30 June 2022
which comprise
the Profit and Loss Account, the Statement of Changes in Equity, the Balance Sheet, the Statement of Cash Flow
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 FRS 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 June 2022 and of its 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.
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
Auditor's
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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit
:
-
the information given in the strategic report and the directors'
r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
CHP SUPPLIES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CHP SUPPLIES LIMITED
- 5 -
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 identifie
d
material misstatements in the strategic report or the directors'
r
eport
.
We have nothing to report in respect of the following matters in relation to which 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
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 directors'
r
esponsibilities
s
tatement, 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 is 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.
Auditor's 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 an
auditor's
report 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
.
-
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 plumbing supply and the bathroom retail sectors.
-
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 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; and
-
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
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.
CHP SUPPLIES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CHP SUPPLIES LIMITED
- 6 -
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; and
-
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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 an auditor's report 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.
Adam Woodward (Senior Statutory Auditor)
For and on behalf of Barlow Andrews LLP
28 March 2023
Chartered Accountants
Statutory Auditor
Carlyle House
78 Chorley New Road
Bolton
CHP SUPPLIES LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2022
- 7 -
2022
2021
Notes
£
£
Turnover
3
16,012,743
16,295,900
Cost of sales
(12,101,396)
(13,030,582)
Gross profit
3,911,347
3,265,318
Administrative expenses
(2,496,689)
(2,398,822)
Other operating income
5,255
97,271
Operating profit
4
1,419,913
963,767
Interest receivable and similar income
7
(221,417)
2,309
Interest payable and similar expenses
8
(519)
Profit before taxation
1,198,496
965,557
Taxation
9
(273,118)
(182,733)
Profit for the financial year
925,378
782,824
The profit and loss account has been prepared on the basis that all operations are continuing operations.
There is no comprehensive income for the year. The total comprehensive income is the total profit for the financial year shown above.
CHP SUPPLIES LIMITED
BALANCE SHEET
AS AT
30 JUNE 2022
30 June 2022
- 8 -
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
11
119,707
Tangible assets
12
166,517
111,088
Investments
13
2,773,920
3,380
3,060,144
114,468
Current assets
Stocks
14
2,938,615
2,746,518
Debtors
15
2,238,908
2,038,775
Cash at bank and in hand
3,238,052
5,594,780
8,415,575
10,380,073
Creditors: amounts falling due within one year
16
(2,970,250)
(2,913,510)
Net current assets
5,445,325
7,466,563
Total assets less current liabilities
8,505,469
7,581,031
Provisions for liabilities
Deferred tax liability
17
(56,060)
(56,060)
-
Net assets
8,449,409
7,581,031
Capital and reserves
Called up share capital
19
5,001
5,001
Capital redemption reserve
20
205,029
205,029
Profit and loss reserves
8,239,379
7,371,001
Total equity
8,449,409
7,581,031
The financial statements were approved by the board of directors and authorised for issue on 28 March 2023 and are signed on its behalf by:
Mr S P Hollowed
Director
Company Registration No. 01502152
CHP SUPPLIES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2022
- 9 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 July 2020
5,001
205,029
6,700,177
6,910,207
Year ended 30 June 2021:
Profit and total comprehensive income for the year
-
-
782,824
782,824
Dividends
10
-
-
(112,000)
(112,000)
Balance at 30 June 2021
5,001
205,029
7,371,001
7,581,031
Year ended 30 June 2022:
Profit and total comprehensive income for the year
-
-
925,378
925,378
Dividends
10
-
-
(57,000)
(57,000)
Balance at 30 June 2022
5,001
205,029
8,239,379
8,449,409
CHP SUPPLIES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2022
- 10 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
1,099,246
1,751,327
Interest paid
(519)
Corporation tax paid
(189,512)
(346,534)
Net cash inflow from operating activities
909,734
1,404,274
Investing activities
Purchase of intangible assets
(130,590)
Purchase of tangible fixed assets
(166,236)
Proceeds on disposal of tangible fixed assets
79,321
34,050
Investment in share portfolio
(3,000,000)
Interest received
8,043
2,309
Net cash (used in)/generated from investing activities
(3,209,462)
36,359
Financing activities
Dividends paid
(57,000)
(112,000)
Net cash used in financing activities
(57,000)
(112,000)
Net (decrease)/increase in cash and cash equivalents
(2,356,728)
1,328,633
Cash and cash equivalents at beginning of year
5,594,780
4,266,147
Cash and cash equivalents at end of year
3,238,052
5,594,780
CHP SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
- 11 -
1
Accounting policies
Company information
CHP Supplies Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
55 Pottery Road, Wigan.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
20% straight line
1.5
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
CHP SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 12 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold Land and buildings
Straight line over the life of the lease
Plant and machinery
7% and 20% straight line
Fixtures, fittings & equipment
25% straight line
Motor vehicles
25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.7
Stocks
Stocks
are stated at the lower of cost and
estimated selling price less costs to complete and sell.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash and cash equivalents
Cash at bank and in hand
are basic financial assets
and
include cash in hand
and
deposits held at call with banks.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally 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.
Basic financial assets
Basic financial assets, which include
debtors
and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in
profit
or
loss
, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
CHP SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 13 -
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
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 of its liabilities.
Basic financial liabilities
Basic financial liabilities, including
creditors
, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities.
Trade creditors
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
CHP SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 14 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
profit and loss account
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
The pension costs charged in the financial statements represent the contribution payable by the company during the year.
1.14
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
CHP SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 15 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are 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 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 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.
3
Turnover and other revenue
2022
2021
£
£
Turnover analysed by class of business
Wholesale
15,177,954
15,443,592
Retail
834,789
852,308
16,012,743
16,295,900
2022
2021
£
£
Other revenue
Interest income
8,043
2,309
Grants received
5,255
97,271
4
Operating profit
2022
2021
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(5,255)
(97,271)
Fees payable to the company's auditor for the audit of the company's financial statements
15,250
10,200
Depreciation of owned tangible fixed assets
77,474
75,131
Profit on disposal of tangible fixed assets
(45,988)
(19,246)
Amortisation of intangible assets
10,883
Operating lease charges
76,281
68,094
CHP SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 16 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Administration
8
8
Selling and distribution
51
50
Total
59
58
Their aggregate remuneration comprised:
2022
2021
£
£
Wages and salaries
1,359,252
1,321,913
Social security costs
119,623
101,397
Pension costs
29,178
27,844
1,508,053
1,451,154
6
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
178,722
183,649
Company pension contributions to defined contribution schemes
5,642
5,611
184,364
189,260
The directors are also considered to be the key management personnel.
7
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
8,043
2,309
Other income from investments
Gains on financial instruments measured at fair value through profit or loss
(229,460)
Total income
(221,417)
2,309
CHP SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
7
Interest receivable and similar income
(Continued)
- 17 -
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
8,043
2,309
Interest on financial assets measured at fair value through profit or loss
(229,460)
8
Interest payable and similar expenses
2022
2021
£
£
Other finance costs:
Other interest
519
9
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
210,241
189,550
Deferred tax
Origination and reversal of timing differences
62,877
(6,817)
Total tax charge
273,118
182,733
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2022
2021
£
£
Profit before taxation
1,198,496
965,557
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
227,714
183,456
Tax effect of expenses that are not deductible in determining taxable profit
43,597
Permanent capital allowances in excess of depreciation
1,807
(723)
Taxation charge for the year
273,118
182,733
10
Dividends
2022
2021
£
£
Interim paid
57,000
112,000
CHP SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 18 -
11
Intangible fixed assets
Software
£
Cost
At 1 July 2021
Additions
130,590
At 30 June 2022
130,590
Amortisation and impairment
At 1 July 2021
Amortisation charged for the year
10,883
At 30 June 2022
10,883
Carrying amount
At 30 June 2022
119,707
At 30 June 2021
12
Tangible fixed assets
Leasehold Land and buildings
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 July 2021
256,042
88,293
533,161
421,669
1,299,165
Additions
166,236
166,236
Disposals
(104,662)
(104,662)
At 30 June 2022
256,042
88,293
533,161
483,243
1,360,739
Depreciation and impairment
At 1 July 2021
256,042
88,293
533,161
310,581
1,188,077
Depreciation charged in the year
77,474
77,474
Eliminated in respect of disposals
(71,329)
(71,329)
At 30 June 2022
256,042
88,293
533,161
316,726
1,194,222
Carrying amount
At 30 June 2022
166,517
166,517
At 30 June 2021
111,088
111,088
13
Fixed asset investments
2022
2021
£
£
Unlisted investments
2,773,920
3,380
CHP SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
13
Fixed asset investments
(Continued)
- 19 -
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 July 2021
3,380
Additions
3,000,000
Valuation changes
(229,460)
At 30 June 2022
2,773,920
Carrying amount
At 30 June 2022
2,773,920
At 30 June 2021
3,380
14
Stocks
2022
2021
£
£
Finished goods and goods for resale
2,938,615
2,746,518
15
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
1,861,095
1,795,189
Other debtors
3,118
8,737
Prepayments and accrued income
374,695
228,032
2,238,908
2,031,958
2022
2021
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 17)
6,817
Total debtors
2,238,908
2,038,775
CHP SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 20 -
16
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
2,429,087
2,425,719
Corporation tax
210,241
189,512
Other taxation and social security
189,975
218,220
Other creditors
101,925
50,679
Accruals and deferred income
39,022
29,380
2,970,250
2,913,510
17
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
Assets
Assets
2022
2021
2022
2021
Balances:
£
£
£
£
ACAs
56,060
-
-
6,817
2022
Movements in the year:
£
Asset at 1 July 2021
(6,817)
Charge to profit or loss
53,355
Effect of change in tax rate - profit or loss
9,522
Liability at 30 June 2022
56,060
18
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
29,178
27,844
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
CHP SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 21 -
19
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
3,751
3,751
3,751
3,751
Ordinary B shares of £1 each
251
251
251
251
Ordinary C shares of £1 each
999
999
999
999
5,001
5,001
5,001
5,001
The holders of ordinary shares are entitled to one vote per share at meetings of the Company. All ordinary shares rank equally with regard to the Company's residual value.
20
Capital redemption reserve
The capital redemption reserve records the nominal value of shares repurchased by the company.
21
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2022
2021
£
£
Within one year
61,272
51,044
Between two and five years
203,438
14,710
264,710
65,754
22
Directors' transactions
Dividends totalling £57,000 (2021 - £112,000) were paid in the year in respect of shares held by the company's directors and close family members.
No rent has been charged in the year by Mr S P Hollowed, in relation to various branches (2021: £312,548).
During the year, Miss H Hollowed charged rent to the company in relation to various branches totalling £312,548 (2021: £0). at the year end £192,660 (2021: £0) was owed, held within creditors, in relation to rents charged.
Shareholders that are not directors of the company have received employee benefits of £14,233 (2021: £9,701) during the year.
CHP SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 22 -
23
Cash generated from operations
2022
2021
£
£
Profit for the year after tax
925,378
782,824
Adjustments for:
Taxation charged
273,118
182,733
Finance costs
519
Investment income
(8,043)
(2,309)
Loss on investment
229,460
-
Gain on disposal of tangible fixed assets
(45,988)
(19,246)
Amortisation and impairment of intangible assets
10,883
Depreciation and impairment of tangible fixed assets
77,474
75,131
Movements in working capital:
Increase in stocks
(192,097)
(136,437)
Increase in debtors
(206,950)
(331,572)
Increase in creditors
36,011
1,199,684
Cash generated from operations
1,099,246
1,751,327
24
Analysis of changes in net funds
1 July 2021
Cash flows
30 June 2022
£
£
£
Cash at bank and in hand
5,594,780
(2,356,728)
3,238,052
2022-06-30
2021-07-01
false
CCH Software
CCH Accounts Production 2022.300
Mr J T Shirley
Mr P H Wilding
Mr B Hodkinson
Miss H J Hollowed
Miss H J Hollowed
Mr S P Hollowed
01502152
2021-07-01
2022-06-30
01502152
bus:CompanySecretaryDirector1
2021-07-01
2022-06-30
01502152
bus:Director1
2021-07-01
2022-06-30
01502152
bus:Director2
2021-07-01
2022-06-30
01502152
bus:Director3
2021-07-01
2022-06-30
01502152
bus:Director4
2021-07-01
2022-06-30
01502152
bus:CompanySecretary1
2021-07-01
2022-06-30
01502152
bus:Director5
2021-07-01
2022-06-30
01502152
bus:RegisteredOffice
2021-07-01
2022-06-30
01502152
bus:Agent1
2021-07-01
2022-06-30
01502152
2022-06-30
01502152
2020-07-01
2021-06-30
01502152
core:RetainedEarningsAccumulatedLosses
2020-07-01
2021-06-30
01502152
core:RetainedEarningsAccumulatedLosses
2021-07-01
2022-06-30
01502152
core:OtherResidualIntangibleAssets
2022-06-30
01502152
core:OtherResidualIntangibleAssets
2021-06-30
01502152
core:ComputerSoftware
2022-06-30
01502152
core:ComputerSoftware
2021-06-30
01502152
2021-06-30
01502152
core:LandBuildings
core:LeasedAssetsHeldAsLessee
2022-06-30
01502152
core:PlantMachinery
2022-06-30
01502152
core:FurnitureFittings
2022-06-30
01502152
core:MotorVehicles
2022-06-30
01502152
core:LandBuildings
core:LeasedAssetsHeldAsLessee
2021-06-30
01502152
core:PlantMachinery
2021-06-30
01502152
core:FurnitureFittings
2021-06-30
01502152
core:MotorVehicles
2021-06-30
01502152
core:CurrentFinancialInstruments
core:WithinOneYear
2022-06-30
01502152
core:CurrentFinancialInstruments
core:WithinOneYear
2021-06-30
01502152
core:CurrentFinancialInstruments
2022-06-30
01502152
core:CurrentFinancialInstruments
2021-06-30
01502152
core:ShareCapital
2022-06-30
01502152
core:ShareCapital
2021-06-30
01502152
core:CapitalRedemptionReserve
2022-06-30
01502152
core:CapitalRedemptionReserve
2021-06-30
01502152
core:RetainedEarningsAccumulatedLosses
2022-06-30
01502152
core:RetainedEarningsAccumulatedLosses
2021-06-30
01502152
core:ShareCapital
2020-06-30
01502152
core:CapitalRedemptionReserve
core:RestatedAmount
2020-06-30
01502152
core:RetainedEarningsAccumulatedLosses
2020-06-30
01502152
core:ShareCapitalOrdinaryShares
2022-06-30
01502152
core:ShareCapitalOrdinaryShares
2021-06-30
01502152
1
2020-07-01
2021-06-30
01502152
2021-06-30
01502152
2020-06-30
01502152
core:IntangibleAssetsOtherThanGoodwill
2021-07-01
2022-06-30
01502152
core:ComputerSoftware
2021-07-01
2022-06-30
01502152
core:LandBuildings
core:LongLeaseholdAssets
2021-07-01
2022-06-30
01502152
core:PlantMachinery
2021-07-01
2022-06-30
01502152
core:FurnitureFittings
2021-07-01
2022-06-30
01502152
core:MotorVehicles
2021-07-01
2022-06-30
01502152
1
2021-07-01
2022-06-30
01502152
core:UKTax
2021-07-01
2022-06-30
01502152
core:UKTax
2020-07-01
2021-06-30
01502152
core:ComputerSoftware
2021-06-30
01502152
core:ComputerSoftware
core:ExternallyAcquiredIntangibleAssets
2021-07-01
2022-06-30
01502152
core:LandBuildings
core:LeasedAssetsHeldAsLessee
2021-06-30
01502152
core:PlantMachinery
2021-06-30
01502152
core:FurnitureFittings
2021-06-30
01502152
core:MotorVehicles
2021-06-30
01502152
core:LandBuildings
core:LeasedAssetsHeldAsLessee
2021-07-01
2022-06-30
01502152
core:Non-currentFinancialInstruments
core:UnlistedNon-exchangeTraded
2022-06-30
01502152
core:Non-currentFinancialInstruments
core:UnlistedNon-exchangeTraded
2021-06-30
01502152
core:Non-currentFinancialInstruments
2022-06-30
01502152
core:Non-currentFinancialInstruments
2021-06-30
01502152
core:WithinOneYear
2022-06-30
01502152
core:WithinOneYear
2021-06-30
01502152
core:BetweenTwoFiveYears
2022-06-30
01502152
core:BetweenTwoFiveYears
2021-06-30
01502152
bus:PrivateLimitedCompanyLtd
2021-07-01
2022-06-30
01502152
bus:FRS102
2021-07-01
2022-06-30
01502152
bus:Audited
2021-07-01
2022-06-30
01502152
bus:FullAccounts
2021-07-01
2022-06-30
xbrli:pure
xbrli:shares
iso4217:GBP