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 2021

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

7

Consolidated Income Statement

8

Consolidated Other Comprehensive Income

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

16

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 2021.

REVIEW OF BUSINESS

The Profits for the year after taxation amounted to £103,488 (2020 £776,479)

The Board were extremely pleased by the results whilst trading in 2020 was again significantly impacted by Covid 19, as was the case in the aviation sector generally. The financial impact of COVID 19 has been mitigated to some extent by use of the Governments furlough scheme.

The Board have also approved the continued investment in personnel training and equipment during the pandemic, so as to place the business in a position to benefit from a upturn in the aviation industry. Additionally all of the relevant Brexit processes have now been completed with all of the relevant regulatory bodies.

ON BEHALF OF THE BOARD:

N Morris - Director

22nd December 2021

The directors present their report with the financial statements of the company and the group for the year ended 31st March 2021.

DIVIDENDS

The total distribution of dividends for the year ended 31st March 2021 will be £303,960..

DIRECTORS

N Morris has held office during the whole of the period from 1st April 2020 to the date of this report.

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

22nd December 2021

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 2021 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 2021 and of the group's profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the 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.

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

- the nature of the industry and sector, control environment and business performance including the design of the company's remuneration policies, key drivers for the directors' remuneration, bonus levels and performance targets;

- results of our enquiries of management and the board of directors about their own identification and assessment of the risks of irregularities;

- any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to:

- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and tax legislation. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.

Audit response to risks identified

Our procedure to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

- enquiring of management and the board of directors concerning actual and potential litigation and claims;

- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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

22nd December 2021

TURNOVER

8,959,821

16,147,218

Cost of sales

6,226,715

10,006,060

GROSS PROFIT

2,733,106

6,141,158

Administrative expenses

4,412,617

5,152,050

(1,679,511

)

989,108

Other operating income

1,859,682

9,221

OPERATING PROFIT

180,171

998,329

Income from other participating interests

(38,913

)

23,203

Interest receivable and similar income

-

13

(38,913

)

23,216

141,258

1,021,545

Interest payable and similar expenses

4

8,532

52,421

PROFIT BEFORE TAXATION

5

132,726

969,124

Tax on profit

6

29,238

192,645

PROFIT FOR THE FINANCIAL YEAR

103,488

776,479

Profit attributable to:

Owners of the parent

103,488

776,479

PROFIT FOR THE YEAR

103,488

776,479

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

103,488

776,479

Total comprehensive income attributable to:

Owners of the parent

103,488

776,479

FIXED ASSETS

Tangible assets

10

1,096,110

926,721

Investments

11

Interest in joint venture

Share of gross assets

124,794

194,155

Share of gross liabilities

(63,777

)

(94,225

)

Investment property

12

-

126,990

1,157,127

1,153,641

CURRENT ASSETS

Stocks

13

985,061

1,159,058

Debtors

14

2,032,065

3,992,402

Cash at bank and in hand

344,843

18,557

3,361,969

5,170,017

CREDITORS

Amounts falling due within one year

15

2,567,925

4,191,076

NET CURRENT ASSETS

794,044

978,941

TOTAL ASSETS LESS CURRENT LIABILITIES

1,951,171

2,132,582

CREDITORS

Amounts falling due after more than one year

16

-

(10,177

)

PROVISIONS FOR LIABILITIES

21

(147,292

)

(118,054

)

NET ASSETS

1,803,879

2,004,351

CAPITAL AND RESERVES

Called up share capital

22

3,000

3,000

Retained earnings

23

1,800,879

2,001,351

SHAREHOLDERS' FUNDS

1,803,879

2,004,351

The financial statements were approved by the Board of Directors and authorised for issue on 22nd December 2021 and were signed on its behalf by:

N Morris - Director

FIXED ASSETS

Tangible assets

10

449,286

477,873

Investments

11

100

100

Investment property

12

-

126,990

449,386

604,963

CURRENT ASSETS

Stocks

13

734,010

889,137

Debtors

14

1,600,562

2,905,139

Cash at bank and in hand

222,266

280

2,556,838

3,794,556

CREDITORS

Amounts falling due within one year

15

1,542,473

2,849,701

NET CURRENT ASSETS

1,014,365

944,855

TOTAL ASSETS LESS CURRENT LIABILITIES

1,463,751

1,549,818

CREDITORS

Amounts falling due after more than one year

16

-

(7,567

)

PROVISIONS FOR LIABILITIES

21

(72,551

)

(78,374

)

NET ASSETS

1,391,200

1,463,877

CAPITAL AND RESERVES

Called up share capital

22

3,000

3,000

Retained earnings

23

1,388,200

1,460,877

SHAREHOLDERS' FUNDS

1,391,200

1,463,877

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

231,283

(394,701

)

The financial statements were approved by the Board of Directors and authorised for issue on 22nd December 2021 and were signed on its behalf by:

N Morris - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st April 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

Changes in equity

Dividends

-

(303,960

)

(303,960

)

Total comprehensive income

-

103,488

103,488

Balance at 31st March 2021

3,000

1,800,879

1,803,879

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st April 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

Changes in equity

Dividends

-

(303,960

)

(303,960

)

Total comprehensive income

-

231,283

231,283

Balance at 31st March 2021

3,000

1,388,200

1,391,200

Cash flows from operating activities

Cash generated from operations

1

(560,291

)

1,029,496

Interest paid

(5,264

)

(44,015

)

Interest element of hire purchase payments paid

(3,268

)

(8,406

)

Government grant income

1,857,282

-

Tax paid

(57,563

)

(48,854

)

Net cash from operating activities

1,230,896

928,221

Cash flows from investing activities

Purchase of tangible fixed assets

(363,015

)

(167,004

)

Sale of investment property

150,000

-

Interest received

-

13

Net cash from investing activities

(213,015

)

(166,991

)

Cash flows from financing activities

New loans in year

50,000

-

Capital repayments in year

(28,417

)

(81,149

)

Amount introduced by directors

1

9,480

Amount withdrawn by directors

-

(9,481

)

Invoice discounting facility

(409,219

)

(223,778

)

Equity dividends paid

(303,960

)

(219,960

)

Net cash from financing activities

(691,595

)

(524,888

)

Increase in cash and cash equivalents

326,286

236,342

Cash and cash equivalents at beginning of year

2

18,557

(217,785

)

Cash and cash equivalents at end of year

2

344,843

18,557

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

2021

2020

£

£

Profit before taxation

132,726

969,124

Depreciation charges

193,625

213,170

Profit on disposal of fixed assets

(23,010

)

-

Government grants

(1,857,282

)

-

Finance costs

8,532

52,421

Finance income

38,913

(23,216

)

(1,506,496

)

1,211,499

Decrease/(increase) in stocks

173,997

(147,408

)

Decrease/(increase) in trade and other debtors

2,308,732

(605,005

)

(Decrease)/increase in trade and other creditors

(1,536,524

)

570,410

Cash generated from operations

(560,291

)

1,029,496

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 2021

31/3/21

1/4/20

£

£

Cash and cash equivalents

344,843

18,557

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

)

3.	ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS

At 1/4/20

Cash flow

At 31/3/21

£

£

£

Net cash

Cash at bank and in hand

18,557

326,286

344,843

18,557

326,286

344,843

Debt

Finance leases

(38,827

)

28,417

(10,410

)

Debts falling due within 1 year

-

(50,000

)

(50,000

)

(38,827

)

(21,583

)

(60,410

)

Total

(20,270

)

304,703

284,433

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements are presented in Sterling (£).

Going concern

After reviewing the Group's forecasts and projections, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The Group therefore continues to adopt the going concern basis in preparing its consolidated financial statements.

Basis of consolidation

The Group consolidated financial statements include the financial statements of the Company and all of its subsidiary undertakings made up to 31 March 2021.

A subsidiary is an entity controlled by the Group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

Acquisitions of subsidiaries and businesses are accounted for using the acquisition method. The cost of the business combination is measured at the aggregate of the fair values (at the date of exchange) of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquiree plus costs directly attributable to the business combination.

Any excess of the cost of the business combination over the acquirer's interest in the net fair value of the identifiable assets and liabilities is recognised as goodwill. If the net fair value of the identifiable assets and liabilities exceeds the cost of the business combination the excess is recognised separately on the face of the consolidated balance sheet immediately below goodwill.

All inter-group transactions, balances, income and expenses are eliminated in full on consolidation.

Investments in subsidiaries

Investments in subsidiaries are accounted for at cost less impairment in the individual financial statements.

Joint ventures

An entity is treated as a joint venture where the group is a party to a contractual agreement with one or more parties from outside the group to undertake an economic activity that is subject to joint control.

An entity is an associated undertaking where the group exercises significant influence in that it has the power to participate in the operating and financial policy decisions.

In the consolidated accounts, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate. The Consolidated Statement of Comprehensive Income includes the group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the group. In the Consolidated Balance Sheet, the interests in associated undertakings are shown as the group's share of the identifiable net assets, including any unamortised premium paid on acquisition.

Any premium on acquisition is dealt with in accordance with the goodwill policy.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

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

Significant judgements and estimates

Preparation of the financial statements requires management to make significant judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses for the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if revision only affects that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The following judgement has had the most significant effect on amounts recognised in the financial statements.

Stock valuation

A key area involving management judgement and estimate is in determining a stock valuation for old and slow-moving stock items.

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

i) the Company has transferred the significant risks and rewards of ownership to the buyer;

ii) the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

iii) the amount of turnover can be measured reliably;

iv) it is probable that the Company will receive the consideration due under the transaction and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Tangible fixed assets

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

Improvements to property

-

over the period of the lease

Plant & machinery

-

10% on cost

Fixtures & fittings

-

10% and 25% on cost

Motor vehicles

-

12.5% on cost

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.