Company registration number 01502152 (England and Wales)
CHP SUPPLIES LIMITED
ANNUAL REPORT
AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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
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 2023
- 1 -
The directors present the strategic report for the year ended 30 June 2023.
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:
2023 2022
£'m £'m
Company sales 16.6 16.0
Company overheads 2.8 2.5
Number of employees 59 59
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
26 February 2024
CHP SUPPLIES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 2 -
The directors present their annual report and financial statements for the year ended 30 June 2023.
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 £134,000. 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
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.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr S P Hollowed
Director
26 February 2024
CHP SUPPLIES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2023
- 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 2023 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 2023 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' report 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 identified material misstatements in the strategic report or the directors' report.
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' responsibilities statement, 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
26 February 2024
Chartered Accountants
Statutory Auditor
Carlyle House
78 Chorley New Road
Bolton
CHP SUPPLIES LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
16,580,947
16,012,743
Cost of sales
(12,803,754)
(12,101,396)
Gross profit
3,777,193
3,911,347
Administrative expenses
(2,778,859)
(2,496,689)
Other operating income
5,255
Operating profit
4
998,334
1,419,913
Interest receivable and similar income
7
38,723
(221,417)
Profit before taxation
1,037,057
1,198,496
Taxation
8
(210,028)
(273,118)
Profit for the financial year
827,029
925,378
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
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
10
93,589
119,707
Tangible assets
11
144,758
166,517
Investments
12
2,776,830
2,773,920
3,015,177
3,060,144
Current assets
Stocks
13
2,379,300
2,938,615
Debtors
14
2,496,404
2,238,908
Cash at bank and in hand
3,781,912
3,238,052
8,657,616
8,415,575
Creditors: amounts falling due within one year
15
(2,485,006)
(2,970,250)
Net current assets
6,172,610
5,445,325
Total assets less current liabilities
9,187,787
8,505,469
Provisions for liabilities
Deferred tax liability
16
(45,349)
(56,060)
(45,349)
(56,060)
Net assets
9,142,438
8,449,409
Capital and reserves
Called up share capital
18
5,001
5,001
Capital redemption reserve
19
205,029
205,029
Profit and loss reserves
8,932,408
8,239,379
Total equity
9,142,438
8,449,409
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true
The financial statements were approved by the board of directors and authorised for issue on 26 February 2024 and are signed on its behalf by:
Mr S P Hollowed
Director
Company registration number 01502152 (England and Wales)
CHP SUPPLIES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 9 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 July 2021
5,001
205,029
7,371,001
7,581,031
Year ended 30 June 2022:
Profit and total comprehensive income
-
-
925,378
925,378
Dividends
9
-
-
(57,000)
(57,000)
Balance at 30 June 2022
5,001
205,029
8,239,379
8,449,409
Year ended 30 June 2023:
Profit and total comprehensive income
-
-
827,029
827,029
Dividends
9
-
-
(134,000)
(134,000)
Balance at 30 June 2023
5,001
205,029
8,932,408
9,142,438
CHP SUPPLIES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
901,600
1,099,246
Income taxes paid
(210,241)
(189,512)
Net cash inflow from operating activities
691,359
909,734
Investing activities
Purchase of intangible assets
(130,590)
Purchase of tangible fixed assets
(49,312)
(166,236)
Proceeds from disposal of tangible fixed assets
79,321
Investment in share portfolio
-
(3,000,000)
Interest received
35,813
8,043
Net cash used in investing activities
(13,499)
(3,209,462)
Financing activities
Dividends paid
(134,000)
(57,000)
Net cash used in financing activities
(134,000)
(57,000)
Net increase/(decrease) in cash and cash equivalents
543,860
(2,356,728)
Cash and cash equivalents at beginning of year
3,238,052
5,594,780
Cash and cash equivalents at end of year
3,781,912
3,238,052
CHP SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 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 amounts 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
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the 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 2023
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 25% 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 2023
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 payments 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. Amounts 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 2023
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 received 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 2023
- 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
2023
2022
£
£
Turnover analysed by class of business
Wholesale
15,837,647
15,177,954
Retail
743,300
834,789
16,580,947
16,012,743
2023
2022
£
£
Other revenue
Interest income
35,813
8,043
Grants received
-
5,255
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(5,255)
Fees payable to the company's auditor for the audit of the company's financial statements
15,100
15,250
Depreciation of owned tangible fixed assets
71,071
77,474
Profit on disposal of tangible fixed assets
-
(45,988)
Amortisation of intangible assets
26,118
10,883
Operating lease charges
64,114
76,281
CHP SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 16 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Administration
8
8
Selling and distribution
51
51
Total
59
59
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
1,432,313
1,359,252
Social security costs
128,060
119,623
Pension costs
29,799
29,178
1,590,172
1,508,053
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
186,844
178,722
Company pension contributions to defined contribution schemes
5,814
5,642
192,658
184,364
The directors are also considered to be the key management personnel.
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
35,813
8,043
Other income from investments
Gains on financial instruments measured at fair value through profit or loss
2,910
(229,460)
Total income
38,723
(221,417)
CHP SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 17 -
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
220,739
210,241
Deferred tax
Origination and reversal of timing differences
(10,711)
62,877
Total tax charge
210,028
273,118
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:
2023
2022
£
£
Profit before taxation
1,037,057
1,198,496
Expected tax charge based on the standard rate of corporation tax in the UK of 20.50% (2022: 19.00%)
212,554
227,714
Tax effect of expenses that are not deductible in determining taxable profit
(596)
43,597
Permanent capital allowances in excess of depreciation
(1,930)
1,807
Taxation charge for the year
210,028
273,118
The tax rate used is the average rate over the financial year.
9
Dividends
2023
2022
£
£
Interim paid
134,000
57,000
CHP SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 18 -
10
Intangible fixed assets
Software
£
Cost
At 1 July 2022 and 30 June 2023
130,590
Amortisation and impairment
At 1 July 2022
10,883
Amortisation charged for the year
26,118
At 30 June 2023
37,001
Carrying amount
At 30 June 2023
93,589
At 30 June 2022
119,707
11
Tangible fixed assets
Leasehold Land and buildings
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 July 2022
256,042
88,293
533,161
483,243
1,360,739
Additions
49,312
49,312
At 30 June 2023
256,042
88,293
533,161
532,555
1,410,051
Depreciation and impairment
At 1 July 2022
256,042
88,293
533,161
316,726
1,194,222
Depreciation charged in the year
71,071
71,071
At 30 June 2023
256,042
88,293
533,161
387,797
1,265,293
Carrying amount
At 30 June 2023
144,758
144,758
At 30 June 2022
166,517
166,517
12
Fixed asset investments
2023
2022
£
£
Unlisted investments
2,776,830
2,773,920
CHP SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
12
Fixed asset investments
(Continued)
- 19 -
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 July 2022
2,773,920
Valuation changes
2,910
At 30 June 2023
2,776,830
Carrying amount
At 30 June 2023
2,776,830
At 30 June 2022
2,773,920
13
Stocks
2023
2022
£
£
Finished goods and goods for resale
2,379,300
2,938,615
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,225,045
1,861,095
Other debtors
11,070
3,118
Prepayments and accrued income
260,289
374,695
2,496,404
2,238,908
15
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
1,842,082
2,429,087
Corporation tax
220,739
210,241
Other taxation and social security
161,888
189,975
Other creditors
226,238
101,925
Accruals and deferred income
34,059
39,022
2,485,006
2,970,250
CHP SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 20 -
16
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
2023
2022
Balances:
£
£
ACAs
45,349
56,060
2023
Movements in the year:
£
At 1 July 2022
56,060
Credit to profit or loss
(10,711)
Liability at 30 June 2023
45,349
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
29,799
29,178
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.
18
Share capital
2023
2022
2023
2022
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.
19
Capital redemption reserve
The capital redemption reserve records the nominal value of shares repurchased by the company.
CHP SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 21 -
20
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:
2023
2022
£
£
Within one year
90,230
61,272
Between two and five years
269,964
203,438
360,194
264,710
21
Directors' transactions
Dividends totalling £134,000 (2022 - £57,000) were paid in the year in respect of shares held by the company's directors and close family members.
During the year, Miss H Hollowed charged rent to the company in relation to various branches totalling £312,548 (2022: £312,548). At the year end £0 (2022: £192,660) was owed, held within creditors, in relation to rents charged.
At the year end the company owed the directors £141,502 (2022: £58,707). No interest is paid on the loan and there are no fixed terms for repayment.
Shareholders that are not directors of the company have received employee benefits of £22,268 (2022: £14,233) during the year.
22
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
827,029
925,378
Adjustments for:
Taxation charged
210,028
273,118
Investment income
(35,813)
(8,043)
Loss/(gain) on investment
(2,910)
229,460
Gain on disposal of tangible fixed assets
-
(45,988)
Amortisation and impairment of intangible assets
26,118
10,883
Depreciation and impairment of tangible fixed assets
71,071
77,474
Movements in working capital:
Decrease/(increase) in stocks
559,315
(192,097)
Increase in debtors
(257,496)
(206,950)
(Decrease)/increase in creditors
(495,742)
36,011
Cash generated from operations
901,600
1,099,246
CHP SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 22 -
23
Analysis of changes in net funds
1 July 2022
Cash flows
30 June 2023
£
£
£
Cash at bank and in hand
3,238,052
543,860
3,781,912
2023-06-302022-07-01falseCCH SoftwareCCH Accounts Production 2023.300Mr J T ShirleyMr P H WildingMr B HodkinsonMiss H J HollowedMiss H J HollowedMr S P Hollowedfalse015021522022-07-012023-06-3001502152bus:CompanySecretaryDirector12022-07-012023-06-3001502152bus:Director12022-07-012023-06-3001502152bus:Director22022-07-012023-06-3001502152bus:Director32022-07-012023-06-3001502152bus:Director42022-07-012023-06-3001502152bus:CompanySecretary12022-07-012023-06-3001502152bus:Director52022-07-012023-06-3001502152bus:RegisteredOffice2022-07-012023-06-3001502152bus:Agent12022-07-012023-06-30015021522023-06-30015021522021-07-012022-06-3001502152core:RetainedEarningsAccumulatedLosses2021-07-012022-06-3001502152core:RetainedEarningsAccumulatedLosses2022-07-012023-06-3001502152core:OtherResidualIntangibleAssets2023-06-3001502152core:OtherResidualIntangibleAssets2022-06-3001502152core:ComputerSoftware2023-06-3001502152core:ComputerSoftware2022-06-30015021522022-06-3001502152core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-06-3001502152core:PlantMachinery2023-06-3001502152core:FurnitureFittings2023-06-3001502152core:MotorVehicles2023-06-3001502152core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-06-3001502152core:PlantMachinery2022-06-3001502152core:FurnitureFittings2022-06-3001502152core:MotorVehicles2022-06-3001502152core:CurrentFinancialInstrumentscore:WithinOneYear2023-06-3001502152core:CurrentFinancialInstrumentscore:WithinOneYear2022-06-3001502152core:CurrentFinancialInstruments2023-06-3001502152core:CurrentFinancialInstruments2022-06-3001502152core:ShareCapital2023-06-3001502152core:ShareCapital2022-06-3001502152core:CapitalRedemptionReserve2023-06-3001502152core:CapitalRedemptionReserve2022-06-3001502152core:RetainedEarningsAccumulatedLosses2023-06-3001502152core:RetainedEarningsAccumulatedLosses2022-06-3001502152core:ShareCapital2021-06-3001502152core:CapitalRedemptionReserve2021-06-3001502152core:RetainedEarningsAccumulatedLosses2021-06-3001502152core:ShareCapitalOrdinaryShares2023-06-3001502152core:ShareCapitalOrdinaryShares2022-06-30015021522022-06-30015021522021-06-3001502152core:IntangibleAssetsOtherThanGoodwill2022-07-012023-06-3001502152core:ComputerSoftware2022-07-012023-06-3001502152core:LandBuildingscore:LongLeaseholdAssets2022-07-012023-06-3001502152core:PlantMachinery2022-07-012023-06-3001502152core:FurnitureFittings2022-07-012023-06-3001502152core:MotorVehicles2022-07-012023-06-3001502152core:UKTax2022-07-012023-06-3001502152core:UKTax2021-07-012022-06-3001502152core:ComputerSoftware2022-06-3001502152core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-06-3001502152core:PlantMachinery2022-06-3001502152core:FurnitureFittings2022-06-3001502152core:MotorVehicles2022-06-3001502152core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-07-012023-06-3001502152core:Non-currentFinancialInstrumentscore:UnlistedNon-exchangeTraded2023-06-3001502152core:Non-currentFinancialInstrumentscore:UnlistedNon-exchangeTraded2022-06-3001502152core:WithinOneYear2023-06-3001502152core:WithinOneYear2022-06-3001502152core:BetweenTwoFiveYears2023-06-3001502152core:BetweenTwoFiveYears2022-06-3001502152bus:PrivateLimitedCompanyLtd2022-07-012023-06-3001502152bus:FRS1022022-07-012023-06-3001502152bus:Audited2022-07-012023-06-3001502152bus:FullAccounts2022-07-012023-06-30xbrli:purexbrli:sharesiso4217:GBP