Chevron Technical Services Limited - Limited company accounts 20.1

REGISTERED NUMBER: 02204376 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MARCH 2020

FOR

CHEVRON TECHNICAL SERVICES LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

to

5

Consolidated Income Statement

6

Consolidated Other Comprehensive Income

7

Consolidated Balance Sheet

8

Company Balance Sheet

9

Consolidated Statement of Changes in Equity

10

Company Statement of Changes in Equity

11

Consolidated Cash Flow Statement

12

Notes to the Consolidated Cash Flow Statement

13

to

14

Notes to the Consolidated Financial Statements

15

to

29

DIRECTORS:

Mrs J Griffiths

N Morris

SECRETARY:

N Morris

REGISTERED OFFICE:

Unit J2 Sharston Industrial Estate

Sharston Road

Manchester

Lancashire

M22 4SN

REGISTERED NUMBER:

02204376 (England and Wales)

AUDITORS:

Allens Accountants Limited

Registered Auditors and

Chartered Accountants

123 Wellington Road South

Stockport

Cheshire

SK1 3TH

The directors present their strategic report of the company and the group for the year ended 31st March 2020.

REVIEW OF BUSINESS

The profits for the year after taxation amounted to £776,479 (2019 £975,700)

The Board were extremely pleased by the results of all areas of the group, whilst trading conditions remain challenging.

The group has continued to invest in personnel training and equipment which will enable the group to continue the

development of additional services. Albeit the last month of the trading year was caught by the unfortunate worldwide

Covid-19 pandemic, the Board remains confident that the performance will enable the group to navigate through the

extremely difficult challenging times that lie ahead.

The group has also put in place the relevant regulatory requirements to enable continued trading once the Brexit process

as been finalised by the UK Government.

ON BEHALF OF THE BOARD:

N Morris - Director

13th October 2020

The directors present their report with the financial statements of the company and the group for the year ended

31st March 2020.

DIVIDENDS

The total distribution of dividends for the year ended 31st March 2020 will be £219,960.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st April 2019 to the date of this report.

Mrs J Griffiths

N Morris

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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). 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the

company and the group 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 the group and hence for taking reasonable

steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act

2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have

taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the

group's auditors are aware of that information.

AUDITORS

The auditors, Allens Accountants Limited, will be proposed for re-appointment at the forthcoming Annual General

Meeting.

ON BEHALF OF THE BOARD:

N Morris - Director

13th October 2020

Opinion

We have audited the financial statements of Chevron Technical Services Limited (the 'parent company') and its

subsidiaries (the 'group') for the year ended 31st March 2020 which comprise the Consolidated Income Statement,

Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated

Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and

Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant

accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and

United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard

applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31st March 2020 and of the group's profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law.

Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the

financial statements section of our report. We are independent of the group in accordance with the ethical requirements

that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have

fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we

have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to

you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group

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 there is a material misstatement in the financial

statements or a material misstatement of the other information. If, based on the work we have performed, we conclude

that there is a material misstatement of this other information, we are required to report that fact. We have nothing to

report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the 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 group and the parent company and its environment obtained in the

course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the

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

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

-	certain disclosures of 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 three, 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 group's and the parent company's

ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going

concern basis of accounting unless the directors either intend to liquidate the group or the parent 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.

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.

Benjamin Furness (Senior Statutory Auditor)

for and on behalf of Allens Accountants Limited

Registered Auditors and

Chartered Accountants

123 Wellington Road South

Stockport

Cheshire

SK1 3TH

13th October 2020

TURNOVER

16,147,218

12,241,550

Cost of sales

10,006,060

8,403,506

GROSS PROFIT

6,141,158

3,838,044

Administrative expenses

5,152,050

3,603,931

989,108

234,113

Other operating income

9,221

859,038

OPERATING PROFIT

998,329

1,093,151

Income from other participating interests

23,203

18,099

Interest receivable and similar income

13

-

23,216

18,099

1,021,545

1,111,250

Interest payable and similar expenses

4

52,421

70,091

PROFIT BEFORE TAXATION

5

969,124

1,041,159

Tax on profit

6

192,645

65,459

PROFIT FOR THE FINANCIAL YEAR

776,479

975,700

Profit attributable to:

Owners of the parent

776,479

975,700

PROFIT FOR THE YEAR

776,479

975,700

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

776,479

Prior year adjustment

(734,412

)

TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT

241,288

Total comprehensive income attributable to:

Owners of the parent

776,479

241,288

FIXED ASSETS

Tangible assets

11

926,721

966,636

Investments

12

Interest in joint venture

Share of gross assets

194,155

166,270

Share of gross liabilities

(94,225

)

(89,543

)

Investment property

13

126,990

126,990

1,153,641

1,170,353

CURRENT ASSETS

Stocks

14

1,159,058

1,011,650

Debtors

15

3,992,402

3,387,396

Cash at bank and in hand

18,557

6,596

5,170,017

4,405,642

CREDITORS

Amounts falling due within one year

16

4,191,076

3,979,948

NET CURRENT ASSETS

978,941

425,694

TOTAL ASSETS LESS CURRENT LIABILITIES

2,132,582

1,596,047

CREDITORS

Amounts falling due after more than one year

17

(10,177

)

(33,097

)

PROVISIONS FOR LIABILITIES

22

(118,054

)

(115,118

)

NET ASSETS

2,004,351

1,447,832

CAPITAL AND RESERVES

Called up share capital

23

3,000

3,000

Retained earnings

24

2,001,351

1,444,832

SHAREHOLDERS' FUNDS

2,004,351

1,447,832

The financial statements were approved by the Board of Directors and authorised for issue on 13th October 2020 and

were signed on its behalf by:

N Morris - Director

FIXED ASSETS

Tangible assets

11

477,873

560,202

Investments

12

100

100

Investment property

13

126,990

126,990

604,963

687,292

CURRENT ASSETS

Stocks

14

889,137

804,890

Debtors

15

2,905,139

3,611,171

Cash in hand

280

4,092

3,794,556

4,420,153

CREDITORS

Amounts falling due within one year

16

2,849,701

2,903,492

NET CURRENT ASSETS

944,855

1,516,661

TOTAL ASSETS LESS CURRENT LIABILITIES

1,549,818

2,203,953

CREDITORS

Amounts falling due after more than one year

17

(7,567

)

(33,097

)

PROVISIONS FOR LIABILITIES

22

(78,374

)

(92,318

)

NET ASSETS

1,463,877

2,078,538

CAPITAL AND RESERVES

Called up share capital

23

3,000

3,000

Retained earnings

24

1,460,877

2,075,538

SHAREHOLDERS' FUNDS

1,463,877

2,078,538

Company's (loss)/profit for the financial year

(394,701

)

871,743

The financial statements were approved by the Board of Directors and authorised for issue on 13th October 2020 and were signed on its behalf by:

N Morris - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st April 2018

3,000

1,424,544

1,427,544

Prior year adjustment

-

(734,412

)

(734,412

)

As restated

3,000

690,132

693,132

Changes in equity

Dividends

-

(221,000

)

(221,000

)

Total comprehensive income

-

975,700

975,700

Balance at 31st March 2019

3,000

1,444,832

1,447,832

Changes in equity

Dividends

-

(219,960

)

(219,960

)

Total comprehensive income

-

776,479

776,479

Balance at 31st March 2020

3,000

2,001,351

2,004,351

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st April 2018

3,000

1,935,245

1,938,245

Prior year adjustment

-

(510,450

)

(510,450

)

As restated

3,000

1,424,795

1,427,795

Changes in equity

Dividends

-

(221,000

)

(221,000

)

Total comprehensive income

-

871,743

871,743

Balance at 31st March 2019

3,000

2,075,538

2,078,538

Changes in equity

Dividends

-

(219,960

)

(219,960

)

Total comprehensive income

-

(394,701

)

(394,701

)

Balance at 31st March 2020

3,000

1,460,877

1,463,877

Cash flows from operating activities

Cash generated from operations

1

1,029,496

(608,654

)

Interest paid

(44,015

)

(59,109

)

Interest element of hire purchase payments paid

(8,406

)

(10,982

)

Government grant income

-

854,001

Tax paid

(48,854

)

-

Net cash from operating activities

928,221

175,256

Cash flows from investing activities

Purchase of tangible fixed assets

(167,004

)

(86,306

)

Sale of tangible fixed assets

-

51,119

Interest received

13

-

Net cash from investing activities

(166,991

)

(35,187

)

Cash flows from financing activities

Capital repayments in year

(81,149

)

(107,980

)

Amount introduced by directors

9,480

-

Amount withdrawn by directors

(9,481

)

(9,113

)

Invoice discounting facility

(223,778

)

(90,810

)

Equity dividends paid

(219,960

)

(221,000

)

Net cash from financing activities

(524,888

)

(428,903

)

Increase/(decrease) in cash and cash equivalents

236,342

(288,834

)

Cash and cash equivalents at beginning of year

2

(217,785

)

71,049

Cash and cash equivalents at end of year

2

18,557

(217,785

)

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

2020

2019

as restated

£

£

Profit before taxation

969,124

1,041,159

Depreciation charges

213,170

247,539

Profit on disposal of fixed assets

-

(5,964

)

Government grants

-

(854,001

)

Finance costs

52,421

70,091

Finance income

(23,216

)

(18,099

)

1,211,499

480,725

Increase in stocks

(147,408

)

(287,517

)

Increase in trade and other debtors

(605,005

)

(965,530

)

Increase in trade and other creditors

570,410

163,668

Cash generated from operations

1,029,496

(608,654

)

2.	CASH AND CASH EQUIVALENTS

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

Balance Sheet amounts:

Year ended 31st March 2020

31/3/20

1/4/19

£

£

Cash and cash equivalents

18,557

6,596

Bank overdrafts

-

(224,381

)

18,557

(217,785

)

Year ended 31st March 2019

31/3/19

1/4/18

as restated

£

£

Cash and cash equivalents

6,596

71,049

Bank overdrafts

(224,381

)

-

(217,785

)

71,049

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1/4/19

Cash flow

changes

At 31/3/20

£

£

£

£

Net cash

Cash at bank

and in hand

6,596

11,961

18,557

Bank overdrafts

(224,381

)

224,381

-

(217,785

)

236,342

18,557

Debt

Finance leases

(113,726

)

81,149

-

(38,827

)

(113,726

)

81,149

-

(38,827

)

Total

(331,511

)

317,491

-

(20,270

)