John Chorley & Co Limited - Limited company accounts 16.3

REGISTERED NUMBER: 00197534 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 March 2016

for

John Chorley & Co Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

12

Reconciliation of Equity

21

Reconciliation of Profit

23

DIRECTORS:

J B Caldwell

T A Shanahan

SECRETARY:

C J Thomson

REGISTERED OFFICE:

Dallam Lane

Warrington

Cheshire

WA2 7PZ

REGISTERED NUMBER:

00197534 (England and Wales)

SENIOR STATUTORY AUDITOR:

David Watkinson BA FCA

AUDITORS:

Watkinson Black

Chartered Accountants

Statutory Auditor

1st Floor, 264 Manchester Road

Warrington

Cheshire

WA1 3RB

The directors present their strategic report for the year ended 31 March 2016.

REVIEW OF BUSINESS

The economic climate improved during the year with the threat of Eurozone collapse receding and the company's

suppliers and customers confidence growing. There has been a reduction in turnover of 8.8% due to fall in steel prices

and an increase in gross profit margin to 15.7%. The directors continue to monitor the markets and respond to any

changes in these conditions and take appropriate action to protect the company.

The companies processing capabilities of drilling, shot blasting and painting is firmly established and the directors are

confident that these services will present further opportunities in the coming years.

PRINCIPAL RISKS AND UNCERTAINTIES

The following are the principal risks identified by the directors and the measures taken to address them.

People

The retention and recruitment of staff is a key challenge for the business. Defined recruitment and retention policies

exist centrally and are managed to ensure the company is competitive and attracts the best candidates.

Health & Safety

The company has further enhanced the attention it gives to health and safety investing heavily to ensure performance

remains excellent in this critical area.

Performance

The company is continually reviewing procedures and systems to ensure the work performed is of the highest quality.

This is underlined by the company's ISO accreditation in relevant areas.

Financial

The company's principal financial liabilities are trade creditors and trade accruals. The company's principal financial

assets are bank balances, stock and trade debtors.

The financial liabilities and assets are controlled by the directors to ensure sufficient funds are available for the

company to meet its business needs. The financial liabilities and assets are stated at fair value and after allowance for

doubtful receivables.

ON BEHALF OF THE BOARD:

T A Shanahan - Director

23 November 2016

The directors present their report with the financial statements of the company for the year ended 31 March 2016.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of steel stockholders.

DIVIDENDS

The total distribution of dividends for the year ended 31 March 2016 will be £ 112,000 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2015 to the date of this report.

J B Caldwell

T A Shanahan

Other changes in directors holding office are as follows:

B M Caldwell - deceased 22 May 2015

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the 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 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;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	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.

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 company's auditors are unaware, and each director has taken all the steps that he ought to have

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

company's auditors are aware of that information.

AUDITORS

The auditors, Watkinson Black, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

T A Shanahan - Director

23 November 2016

We have audited the financial statements of John Chorley & Co Limited for the year ended 31 March 2016 on pages

seven to twenty three. The financial reporting framework that has been applied in their preparation is applicable law

and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including

Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

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.

Respective responsibilities of directors and auditors

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. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give

reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or

error. This includes an assessment of: whether the accounting policies are appropriate to the company's circumstances

and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates

made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial

and non-financial information in the Strategic Report and the Report of the Directors to identify material

inconsistencies with the audited financial statements and to identify any information that is apparently materially

incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the

audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for

our report.

Opinion on financial statements

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 March 2016 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.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion the information given in the 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.

Matters on which we are required to report by exception

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, 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 directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

David Watkinson BA FCA (Senior Statutory Auditor)

for and on behalf of Watkinson Black

Chartered Accountants

Statutory Auditor

1st Floor, 264 Manchester Road

Warrington

Cheshire

WA1 3RB

23 November 2016

TURNOVER

13,674,415

14,991,682

Cost of sales

(11,528,815

)

(12,908,256

)

GROSS PROFIT

2,145,600

2,083,426

Administrative expenses

(1,803,564

)

(1,756,878

)

OPERATING PROFIT

4

342,036

326,548

Interest receivable and similar income

66

-

342,102

326,548

Interest payable and similar expenses

5

(41,005

)

(16,258

)

PROFIT BEFORE TAXATION

301,097

310,290

Tax on profit

6

(69,381

)

(66,365

)

PROFIT FOR THE FINANCIAL YEAR

231,716

243,925

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

231,716

243,925

FIXED ASSETS

Tangible assets

8

1,419,072

737,204

CURRENT ASSETS

Stocks

9

2,114,391

2,762,945

Debtors

10

2,844,867

3,584,000

Cash at bank and in hand

58,782

39,010

5,018,040

6,385,955

CREDITORS

Amounts falling due within one year

11

4,336,117

5,572,261

NET CURRENT ASSETS

681,923

813,694

TOTAL ASSETS LESS CURRENT LIABILITIES

2,100,995

1,550,898

CREDITORS

Amounts falling due after more than one year

12

(454,333

)

(93,333

)

PROVISIONS FOR LIABILITIES

16

(138,035

)

(68,654

)

NET ASSETS

1,508,627

1,388,911

CAPITAL AND RESERVES

Called up share capital

17

8,000

8,000

Retained earnings

18

1,500,627

1,380,911

SHAREHOLDERS' FUNDS

1,508,627

1,388,911

The financial statements were approved by the Board of Directors on 23 November 2016 and were signed on its behalf by:

J B Caldwell - Director

T A Shanahan - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2014

8,000

1,248,982

1,256,982

Changes in equity

Dividends

-

(111,996

)

(111,996

)

Total comprehensive income

-

243,925

243,925

Balance at 31 March 2015

8,000

1,380,911

1,388,911

Changes in equity

Dividends

-

(112,000

)

(112,000

)

Total comprehensive income

-

231,716

231,716

Balance at 31 March 2016

8,000

1,500,627

1,508,627

Cash flows from operating activities

Cash generated from operations

1

678,358

362,861

Interest paid

(40,151

)

(13,780

)

Interest element of hire purchase payments paid

(854

)

(2,478

)

Tax paid

(58,929

)

-

Net cash from operating activities

578,424

346,603

Cash flows from investing activities

Purchase of tangible fixed assets

(926,437

)

(115,855

)

Sale of tangible fixed assets

-

100

Interest received

66

-

Net cash from investing activities

(926,371

)

(115,755

)

Cash flows from financing activities

New loans in year

660,000

-

Loan repayments in year

(143,486

)

(37,404

)

Capital repayments in year

(36,795

)

(38,213

)

Equity dividends paid

(112,000

)

(111,996

)

Net cash from financing activities

367,719

(187,613

)

Increase in cash and cash equivalents

19,772

43,235

Cash and cash equivalents at beginning of year

2

39,010

(4,225

)

Cash and cash equivalents at end of year

2

58,782

39,010

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

31.3.16

31.3.15

£

£

Profit before taxation

301,097

310,290

Depreciation charges

244,570

256,377

Loss on disposal of fixed assets

-

3,795

Increase in group undertakings

106,313

(9,754

)

Finance costs

41,005

16,258

Finance income

(66

)

-

692,919

576,966

Decrease/(increase) in stocks

648,554

(434,835

)

Decrease/(increase) in trade and other debtors

739,133

(281,650

)

(Decrease)/increase in trade and other creditors

(1,402,248

)

502,380

Cash generated from operations

678,358

362,861

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 31 March 2016

31.3.16

1.4.15

£

£

Cash and cash equivalents

58,782

39,010

Year ended 31 March 2015

31.3.15

1.4.14

£

£

Cash and cash equivalents

39,010

(4,225

)

1.	STATUTORY INFORMATION

John Chorley & Co 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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

These financial statements for the year ended 31 March 2016 are the first financial statements that comply

with FRS 102. The date of transition is 1 April 2014.

The transition to FRS 102 has resulted in a small number of changes in accounting policies to those used

previously.

The nature of these changes and their impact on opening equity and profit for the comparative period are

explained in notes and below.

The presentation currency is £ sterling.

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.

Significant judgements and estimates

Preparation of the financial statements requires management to make significant judgements and estimates.

The directors have considered key assumptions concerning the future and other key sources of estimation and

uncertainty at the end of the reporting period and do not consider there are any areas where there is a material

risk of adjustment to the carrying amounts of assets and liabilities within the next financial year.

Turnover

Revenue from the sale of goods shall be recognised when all the following conditions have been satisfied:

- the entity has transferred to the buyer the significant risks and rewards of ownership of the goods;

- the entity retains neither continuing managerial involvement to the degree usually associated with ownership

nor effective control over the goods sold;

- the amount of revenue can be measured reliably;

- it is probable that the economic benefits associated with the transaction will flow to the entity;

- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from the sale of goods is generally recognised when they are handed over to the transport firms

which, under the terms of current contracts, mark the time when the above risks and rewards are transferred.

Revenue is not recognised if its recoverability is considered to be uncertain.

Revenue is stated net of discounts, allowances, rebates and returns, and does not include the proceeds from the

disposal of raw materials and scrap.

Revenue includes also minor cost connected with the sales process, such as certification ,recoveries of cost of

transport, packaging, insurances etc

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

10% to 25% straight line

Motor vehicles

-

25% on cost

Stocks

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

slow moving items.

Deferred tax

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

balance sheet date. Deferred tax assets are recognised only to the extent that the directors consider that it is

more likely than not that there will be suitable taxable profits from which the future reversal of the underlying

timing differences can be deducted.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the

balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange

ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating

result.

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.

Statutory information

John Chorley & Co Limited, a company limited by shares, is a domiciled in England & Wales, registration

number 00197534. The registered office is Dallam Lane, Warrington, Cheshire, WA2 7PZ..

3.	EMPLOYEES AND DIRECTORS

31.3.16

31.3.15

£

£

Wages and salaries

1,437,497

1,252,648

Social security costs

130,945

113,641

Other pension costs

56,779

49,415

1,625,221

1,415,704

The average monthly number of employees during the year was as follows:

31.3.16

31.3.15

Director

1

1

Warehouse and distribution

59

51

60

52

31.3.16

31.3.15

£

£

Directors' remuneration

179,014

122,387

Directors' pension contributions to money purchase schemes

29,242

37,540

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

1

1

4.	OPERATING PROFIT

The operating profit is stated after charging:

31.3.16

31.3.15

£

£

Hire of plant and machinery

185,049

162,398

Depreciation - owned assets

215,651

200,758

Depreciation - assets on hire purchase contracts

28,918

57,120

Loss on disposal of fixed assets

-

3,795

Auditors' remuneration

17,546

20,951

Foreign exchange differences

-

360

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.3.16

31.3.15

£

£

Bank interest

-

70

Debenture Interest

40,151

13,710

Hire purchase

854

2,478

41,005

16,258

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

31.3.16

31.3.15

£

£

Current tax:

UK corporation tax

-

58,929

Deferred tax

69,381

7,436

Tax on profit

69,381

66,365

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is

explained below:

31.3.16

31.3.15

£

£

Profit before tax

301,097

310,290

Profit multiplied by the standard rate of corporation tax in the UK of 20% (2015 - 20.910%)

60,219

64,882

Effects of:

Expenses not deductible for tax purposes

1,015

2,093

Capital allowances in excess of depreciation

(68,631

)

-

Depreciation in excess of capital allowances

-

35,569

Utilisation of tax losses

7,397

(36,179

)

Deferred tax charge

69,381

-

Total tax charge

69,381

66,365

7.

DIVIDENDS

31.3.16

31.3.15

£

£

Interim

112,000

111,996

8.	TANGIBLE FIXED ASSETS

Plant and

Motor

machinery

vehicles

Totals

£

£

£

COST

At 1 April 2015

1,579,704

195,241

1,774,945

Additions

903,292

23,145

926,437

At 31 March 2016

2,482,996

218,386

2,701,382

DEPRECIATION

At 1 April 2015

963,175

74,566

1,037,741

Charge for year

200,323

44,246

244,569

At 31 March 2016

1,163,498

118,812

1,282,310

NET BOOK VALUE

At 31 March 2016

1,319,498

99,574

1,419,072

At 31 March 2015

616,529

120,675

737,204

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

Plant and

machinery

£

COST

At 1 April 2015

488,656

Transfer to ownership

(488,656

)

At 31 March 2016

-

DEPRECIATION

At 1 April 2015

236,869

Charge for year

28,918

Transfer to ownership

(265,787

)

At 31 March 2016

-

NET BOOK VALUE

At 31 March 2016

-

At 31 March 2015

251,787

9.

STOCKS

31.3.16

31.3.15

£

£

Stocks

2,114,391

2,762,945