Chilli Pilates (Holdings) Ltd - Limited company accounts 23.1

REGISTERED NUMBER: 06987582 (England and Wales)

Report of the Directors and

Unaudited Consolidated Financial Statements

for the Year Ended 30 September 2022

for

Chilli Pilates (Holdings) Ltd

Page

Company Information

1

Report of the Directors

2

Consolidated Income Statement

3

Consolidated Balance Sheet

4

Company Balance Sheet

6

Notes to the Consolidated Financial Statements

8

DIRECTORS:

J Crowe FIA, MBA

P Spence BSc (Hons) Sport Reh

C M Wray FCA

J A Rook FCA

SECRETARY:

K Crowe

REGISTERED OFFICE:

George Arthur Ltd

Suite 6 B, Wentworth Lodge

Great North Road

Welwyn Garden City

Hertfordshire

AL8 7SR

REGISTERED NUMBER:

06987582 (England and Wales)

ACCOUNTANTS:

George Arthur Limited

Chartered Accountants

Suite 6B, Wentworth Lodge

Great North Road

Welwyn Garden City

Hertfordshire

AL8 7SR

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

DIRECTORS

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

J Crowe FIA, MBA

P Spence BSc (Hons) Sport Reh

C M Wray FCA

J A Rook FCA

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

J Crowe FIA, MBA - Director

1 May 2023

TURNOVER

1,923,411

702,945

Cost of sales

808,641

363,971

GROSS PROFIT

1,114,770

338,974

Administrative expenses

1,255,370

945,884

(140,600

)

(606,910

)

Other operating income

89,132

487,748

OPERATING LOSS

4

(51,468

)

(119,162

)

Interest receivable and similar income

30

49

(51,438

)

(119,113

)

Interest payable and similar expenses

14,641

12,270

LOSS BEFORE TAXATION

(66,079

)

(131,383

)

Tax on loss

(6,863

)

15,000

LOSS FOR THE FINANCIAL YEAR

(59,216

)

(146,383

)

Loss attributable to:

Owners of the parent

(59,216

)

(146,383

)

FIXED ASSETS

Intangible assets

6

47,665

58,692

Tangible assets

7

590,466

179,753

Investments

8

-

-

638,131

238,445

CURRENT ASSETS

Stocks

2,130

15,633

Debtors

9

228,519

241,341

Cash at bank and in hand

20,932

804,320

251,581

1,061,294

CREDITORS

Amounts falling due within one year

10

583,000

1,404,427

NET CURRENT LIABILITIES

(331,419

)

(343,133

)

TOTAL ASSETS LESS CURRENT LIABILITIES

306,712

(104,688

)

CREDITORS

Amounts falling due after more than one year

11

506,131

22,120

NET LIABILITIES

(199,419

)

(126,808

)

CAPITAL AND RESERVES

Called up share capital

832,478

832,479

Other reserves

-

19,019

Retained earnings

(1,031,897

)

(978,306

)

SHAREHOLDERS' FUNDS

(199,419

)

(126,808

)

The company and the group are entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 September 2022.

The members have not required the company and the group to obtain an audit of its financial statements for the year ended 30 September 2022 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the group keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company and the group as at the end of each financial year and of the group's profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company and the group.

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 1 May 2023 and were signed on its behalf by:

J Crowe FIA, MBA - Director

FIXED ASSETS

Intangible assets

6

2,332

2,692

Tangible assets

7

-

-

Investments

8

13,717

13,615

16,049

16,307

CURRENT ASSETS

Debtors

9

1,524,745

1,613,054

Cash at bank

1,409

8,374

1,526,154

1,621,428

CREDITORS

Amounts falling due within one year

10

145,212

726,100

NET CURRENT ASSETS

1,380,942

895,328

TOTAL ASSETS LESS CURRENT LIABILITIES

1,396,991

911,635

CREDITORS

Amounts falling due after more than one year

11

485,356

-

NET ASSETS

911,635

911,635

CAPITAL AND RESERVES

Called up share capital

832,478

832,478

Retained earnings

79,157

79,157

SHAREHOLDERS' FUNDS

911,635

911,635

Company's profit for the financial year

-

-

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 September 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 September 2022 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 1 May 2023 and were signed on its behalf by:

J Crowe FIA, MBA - Director

1.	STATUTORY INFORMATION

Chilli Pilates (Holdings) Ltd 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

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Basis of consolidation

The consolidated financial statements include the results of the Company and all its subsidiary undertakings made up to the same accounting date. All intra-Group balances, transactions, income and expenses are eliminated in full on consolidation. The results of subsidiary undertakings acquired or disposed of during the period are included or excluded from the consolidated income statement from the effective date of acquisition or disposal.

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.

Turnover

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 revenue is recognised:

Rendering of services

Revenue is recognised when a performance obligation is satisfied, in accordance with the terms of the contractual arrangement. Typical performance obligations are satisfied over time as services are rendered.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Patents and licences are being amortised evenly over their estimated useful life of ten years.

Tangible fixed assets

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

Plant and machinery etc

-

33% on cost, 10% on cost and Over the term of the lease

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

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

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 58 (2021 - 41 ) .

4.	OPERATING LOSS

The operating loss is stated after charging:

2022

2021

£

£

Depreciation - owned assets

79,818

70,398

Patents and licences amortisation

11,027

24,360

5.	INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.

6.	INTANGIBLE FIXED ASSETS

Group

Other

intangible

assets

£

COST

At 1 October 2021

and 30 September 2022

83,052

AMORTISATION

At 1 October 2021

24,360

Charge for year

11,027

At 30 September 2022

35,387

NET BOOK VALUE

At 30 September 2022

47,665

At 30 September 2021

58,692

Company

Other

intangible

assets

£

COST

At 1 October 2021

and 30 September 2022

3,052

AMORTISATION

At 1 October 2021

360

Charge for year

360

At 30 September 2022

720

NET BOOK VALUE

At 30 September 2022

2,332

At 30 September 2021

2,692

7.	TANGIBLE FIXED ASSETS

Group

Plant and

machinery

etc

£

COST

At 1 October 2021

673,556

Additions

456,914

At 30 September 2022

1,130,470

DEPRECIATION

At 1 October 2021

460,186

Charge for year

79,818

At 30 September 2022

540,004

NET BOOK VALUE

At 30 September 2022

590,466

At 30 September 2021

213,370

8.	FIXED ASSET INVESTMENTS

Company

Shares in

group

undertakings

£

COST

At 1 October 2021

13,615

Additions

102

At 30 September 2022

13,717

NET BOOK VALUE

At 30 September 2022

13,717

At 30 September 2021

13,615

The ordinary share capital of the following companies are all held 100% and the registered office is the same as that of the holding company:

Chilli Pilates (LH) Ltd

Chilli Pilates (IH) Ltd

Chilli Pilates Online Ltd

Chilli Pilates (SP) Ltd

Chilli Pilates (MH) Ltd

Chilli Pilates (HM) Ltd

The Wellness Centre Ltd

The Wellness Centre Harpenden Ltd

Chilli Pilates Services Ltd

Chilli Pilates Central Services Ltd

The Wellness Centre (S P) Ltd

The Wellness Centre (HM) Ltd

The Wellness Centre (MH) Ltd

Chilli Pilates Retail Ltd

Chilli Pilates Investments Ltd

Welwyn Wentworth Ltd

Chilli Pilates Ltd

Vitality at Home Ltd

Pilates at Home Ltd

At Home Central Services Ltd

The Wellness Centre (SH) Ltd

The Wellness Centre (BH) Ltd

The Wellness Centre (OF) Ltd

The Wellness Centre (MB) Ltd

Chilli Pilates (OF) Ltd

Chilli PIlates (SH) Ltd

The Wellness Centre (QB) Ltd

The Wellness Centre (PG) Ltd

The Wellness Centre SB Ltd

The Wellness Centre MS Ltd

Chilli Pilates (BH) Ltd

Chilli Pilates (MB) Ltd

Chilli Pilates (PG) Ltd

Chilli Pilates (SB) Ltd

The Wellness Centre (FC) Ltd

Chilli Pilates (FC) Ltd

Chilli Pilates (QB) Ltd

Chilli Pilates (LA) Ltd

The Wellness Centre (LA) Ltd

Chilli Pilates (HL) Ltd

The Wellness Centre (HL) Ltd

9.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2022

2021

2022

2021

£

£

£

£

Trade debtors

20,080

5,259

-

-

Amounts owed by group undertakings

-

132,237

1,524,745

1,613,054

Other debtors

208,439

103,845

-

-

228,519

241,341

1,524,745

1,613,054

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2022

2021

2022

2021

£

£

£

£

Bank loans and overdrafts

145,212

726,100

145,212

726,100

Trade creditors

78,755

259,265

-

-

Taxation and social security

161,456

148,873

-

-

Other creditors

197,577

270,189

-

-

583,000

1,404,427

145,212

726,100

11.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group

Company

2022

2021

2022

2021

£

£

£

£

Bank loans

485,356

-

485,356

-

Amounts owed to group undertakings

-

22,120

-

-

Other creditors

20,775

-

-

-

506,131

22,120

485,356

-

12.	SECURED DEBTS

The following secured debts are included within creditors:

Group

Company

2022

2021

2022

2021

£

£

£

£

Bank loans

630,568

726,100

630,568

726,100

On 15th November 2020 Barclays Security Trustee Limited created a charge over the company's assets to secure a loan under the Coronavirus Business Interruption Loan Scheme.

13.	RELATED PARTY DISCLOSURES

The company incurred management charges from the respective companies of the two non executive directors, C M Wray and J A Rook, totalling £48,988 (2021: £79,786).

14.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party is J Crowe FIA, MBA.