P J Chaffin Limited - Accounts to registrar (filleted) - small 23.1.2

REGISTERED NUMBER: 05883973 (England and Wales)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

FOR

P J CHAFFIN LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

C D Brazendale

J A Gibbs

T R Burks

P H Sanders

REGISTERED OFFICE:

Chapter House

Priesthawes Farm

Polegate

East Sussex

BN26 6QU

REGISTERED NUMBER:

05883973 (England and Wales)

AUDITORS:

Watson Associates (Audit Services) Ltd

30 - 34 North Street

Hailsham

East Sussex

BN27 1DW

FIXED ASSETS

Tangible assets

4

649,648

763,847

Investments

5

1

1

649,649

763,848

CURRENT ASSETS

Stocks

122,833

109,058

Debtors

6

2,929,025

3,075,150

Cash at bank and in hand

1,899

622,830

3,053,757

3,807,038

CREDITORS

Amounts falling due within one year

7

(871,657

)

(1,295,629

)

NET CURRENT ASSETS

2,182,100

2,511,409

TOTAL ASSETS LESS CURRENT LIABILITIES

2,831,749

3,275,257

CREDITORS

Amounts falling due after more than one year

8

(504,832

)

(575,384

)

PROVISIONS FOR LIABILITIES

(181,596

)

(181,596

)

NET ASSETS

2,145,321

2,518,277

CAPITAL AND RESERVES

Called up share capital

64

64

Capital redemption reserve

836

836

Retained earnings

2,144,421

2,517,377

SHAREHOLDERS' FUNDS

2,145,321

2,518,277

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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 20 September 2023 and were signed on its behalf by:

J A Gibbs - Director

1.	STATUTORY INFORMATION

P J Chaffin 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 Company 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.

Critical accounting judgements and key sources of estimation uncertainty

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The directors have estimated the useful lifespan of the company's assets to be the term of the lease of the premises in which they are held. The actual lives of the assets and residual values may vary depending on a number of factors including future market conditions and projected disposal values. The directors acknowledge uncertainty in this determination.

Turnover

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue 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 from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

- the amount of revenue can be measured reliably;

- it is probable that the company will receive the consideration due under the contract;

- the stage of completion of the contract at the end of the reporting period can be measured reliably; and

- the costs incurred and the costs to complete the contract can be measured reliably

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the following bases.

Depreciation is provided on the following basis:

Plant and machinery

-

25% reducing balance

Motor vehicles

-

25% on cost

Fixtures and fittings

-

25% reducing balance

Office equipment

-

33% on cost

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Government grants

Grants of a revenue nature are recognised in profit or loss in the same period as the related expenditure.

Investments in subsidiaries

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted company shares, whose market value value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the profit or loss account for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Stocks

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

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

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 accounts receivable and payable, loans from banks and other third parties, and loans to related parties.

Debt instruments that are payable or receivable within one year, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received; other debt instruments are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method.

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 only 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 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

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

Going concern

The company made a loss of £283,095 during the year. Despite this, the company is in a net asset position as at the balance sheet date and the directors have a reasonable expectation that the Company has adequate resources to continue in existence for the foreseeable future. the Company therefore continues to adopt the going concern basis in preparing its financial statements.

Dividends

Equity dividends are recognised when they become legally payable. Interim dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 72 (2021 - 73 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1 January 2022

1,335,420

Additions

256,405

Disposals

(317,908

)

At 31 December 2022

1,273,917

DEPRECIATION

At 1 January 2022

571,573

Charge for year

223,117

Eliminated on disposal

(170,421

)

At 31 December 2022

624,269

NET BOOK VALUE

At 31 December 2022

649,648

At 31 December 2021

763,847

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

machinery

etc

£

COST

At 1 January 2022

482,022

Additions

234,900

At 31 December 2022

716,922

DEPRECIATION

At 1 January 2022

160,576

Charge for year

114,041

At 31 December 2022

274,617

NET BOOK VALUE

At 31 December 2022

442,305

At 31 December 2021

321,446

5.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 January 2022

and 31 December 2022

1

NET BOOK VALUE

At 31 December 2022

1

At 31 December 2021

1

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

1,274,248

1,423,103

Amounts owed by group undertakings

1,549,178

1,423,968

Other debtors

105,599

228,079

2,929,025

3,075,150

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Bank loans and overdrafts

80,000

61,196

Hire purchase contracts

182,535

184,891

Trade creditors

349,147

642,399

Amounts owed to group undertakings

50,000

-

Taxation and social security

133,761

231,739

Other creditors

76,214

175,404

871,657

1,295,629

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2022

2021

£

£

Bank loans

280,000

360,000

Hire purchase contracts

224,832

215,384

504,832

575,384

9.	SECURED DEBTS

Debenture including fixed and floating charges over the undertaking and all property and assets present and future including goodwill, uncalled capital, buildings, fixtures and plant & machinery. Dated 10 January 2007.

10.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Stephen James Moore (Senior Statutory Auditor)

for and on behalf of Watson Associates (Audit Services) Ltd

11.	PENSION COMMITMENTS

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £67,235 (2021 - £62,212). Contributions totalling £12,862 (2021 - £12,075) were payable to the fund at the balance sheet date and are included in other creditors.

12.	RELATED PARTY DISCLOSURES

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.