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Registration number: SC516900

CCHM Ltd

Annual Report and Unaudited Financial Statements

for the Year Ended 31 December 2021

 

CCHM Ltd

Contents

Company Information

1

Accountants' Report

2

Balance Sheet

3 to 4

Notes to the Unaudited Financial Statements

5 to 11

 

CCHM Ltd

Company Information

Directors

Mr C R Henderson

Mr I Henderson

Mr D Mutter

Mr W Rooney

Mr M R Tahir

Company secretary

Mr I Henderson

Registered office

1 Huly Hill Road
Newbridge
Edinburgh
EH28 8PH

Accountants

Deans Accountants And Business Advisors Ltd
27 North Bridge Street
Hawick
Borders
TD9 9BD

 

DEANS

Chartered Accountants

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
CCHM Ltd for the Year Ended 31 December 2021

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of CCHM Ltd for the year ended 31 December 2021 as set out on pages 3 to 11 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants of Scotland (ICAS), we are subject to its ethical and other professional requirements which are detailed at http://www.icas.com/ethics/icas-code-of-ethics.

This report is made solely to the Board of Directors of CCHM Ltd, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts of CCHM Ltd and state those matters that we have agreed to state to the Board of Directors of CCHM Ltd, as a body, in this report in accordance with ICAS guidance (www.icas.com/accountsprep/guidance). To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than CCHM Ltd and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that CCHM Ltd has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of CCHM Ltd. You consider that CCHM Ltd is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of CCHM Ltd. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.

......................................

Deans Accountants And Business Advisors Ltd
27 North Bridge Street
Hawick
Borders
TD9 9BD

19 August 2022

 

CCHM Ltd

(Registration number: SC516900)
Balance Sheet as at 31 December 2021

Note

2021
£

2020
£

Fixed assets

 

Intangible assets

4

36,851

111,370

Tangible assets

5

94,152

342,905

 

131,003

454,275

Current assets

 

Stocks

6

1,242,059

1,358,529

Debtors

7

766,350

863,624

Cash at bank and in hand

 

784,704

525,925

 

2,793,113

2,748,078

Creditors: Amounts falling due within one year

8

(1,335,625)

(1,980,510)

Net current assets

 

1,457,488

767,568

Total assets less current liabilities

 

1,588,491

1,221,843

Creditors: Amounts falling due after more than one year

8

(243,055)

(243,055)

Provisions for liabilities

-

(15,573)

Net assets

 

1,345,436

963,215

Capital and reserves

 

Called up share capital

11

10,000

10,000

Retained earnings

1,335,436

953,215

Shareholders' funds

 

1,345,436

963,215

For the financial year ending 31 December 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 19 August 2022 and signed on its behalf by:
 

 

CCHM Ltd

(Registration number: SC516900)
Balance Sheet as at 31 December 2021

.........................................
Mr C R Henderson
Director

.........................................
Mr I Henderson
Company secretary and director

 

CCHM Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021

1

General information

The company is a private company limited by share capital, incorporated in Scotland.

The address of its registered office is:
1 Huly Hill Road
Newbridge
Edinburgh
EH28 8PH
Scotland

The principal place of business is:
1 Huly Hill Road
Newbridge
Edinburgh
EH28 8PH
Scotland

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The company is not directly impacted by Brexit.

The company has suffered financially from the pandemic. Where appropriate, government support in the forms of grants and loans were used to mitigate the impact of lockdowns etc. The directors will continue to assess the impact of the pandemic and make decisions accordingly.

The financial statements are presented in sterling (£) and rounded to the nearest £1.

Judgements

Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made included:

Useful economic lives of tangible assets – the annual depreciation charge for tangible assets is sensitive to change in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on economic utilisation, and the physical condition of the assets.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

Sales of Goods
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

 

CCHM Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Non-monetary items measured in terms of historic cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

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

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Software

33% straight line.

Furniture, fittings and equipment

25% reducing balance.

Plant and machinery

25% straight line.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Intangible assets

over 3 years.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

 

CCHM Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

CCHM Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021

Financial instruments

Classification
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of it’s liabilities.
 Recognition and measurement
Where shares are issued, any component that creates, a financial liability of the company is presented as a liability in the balance sheet. The corresponding dividends relating to the liability component are charged as an interest expenses in the profit and loss account.
 Impairment
At the end of each reporting period financial instruments measured at fair value are assessed for objective evidence of impairment. The impairment loss is recognised in the profit and loss account.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 27 (2020 - 34).

 

CCHM Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021

4

Intangible assets

Other intangible assets
 £

Total
£

Cost or valuation

At 1 January 2021

241,555

241,555

At 31 December 2021

241,555

241,555

Amortisation

At 1 January 2021

130,185

130,185

Amortisation charge

74,519

74,519

At 31 December 2021

204,704

204,704

Carrying amount

At 31 December 2021

36,851

36,851

At 31 December 2020

111,370

111,370

5

Tangible assets

Software
£

Furniture, fittings and equipment
 £

Plant and machinery
£

Total
£

Cost or valuation

At 1 January 2021

23,906

10,978

1,121,572

1,156,456

Additions

-

-

1,162

1,162

At 31 December 2021

23,906

10,978

1,122,734

1,157,618

Depreciation

At 1 January 2021

23,906

7,701

781,944

813,551

Charge for the year

-

3,277

246,638

249,915

At 31 December 2021

23,906

10,978

1,028,582

1,063,466

Carrying amount

At 31 December 2021

-

-

94,152

94,152

At 31 December 2020

-

3,277

339,628

342,905

6

Stocks

2021
£

2020
£

Raw materials and consumables

1,142,067

1,105,834

Work in progress

25,664

17,593

Finished goods and goods for resale

74,328

235,102

1,242,059

1,358,529

 

CCHM Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021

7

Debtors

2021
£

2020
£

Trade debtors

74,233

30,945

Prepayments

27,379

48,049

Other debtors

664,738

784,630

766,350

863,624

8

Creditors

Creditors: amounts falling due within one year

Note

2021
£

2020
£

Due within one year

 

Bank borrowings

9

6,945

6,945

HP and finance lease liabilities

9

-

40,648

trade creditors

 

339,236

244,585

Taxation and social security

 

185,531

138,225

Accruals and deferred income

 

80,728

5,515

Other creditors

 

723,185

1,544,592

 

1,335,625

1,980,510

Creditors: amounts falling due after more than one year

Note

2021
£

2020
£

Due after one year

 

Loans and borrowings

9

243,055

243,055

9

Loans and borrowings

2021
£

2020
£

Non-current loans and borrowings

Bank borrowings

243,055

243,055

2021
£

2020
£

Current loans and borrowings

Bank borrowings

6,945

6,945

Finance lease liabilities

-

40,648

6,945

47,593

 

CCHM Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021

Bank borrowings

Bank loan is denominated in Sterling (£) with a nominal interest rate of 3.79% and the final instalment is due on 24 November 2024. The carrying amount at year end is £250,000 (2020 - £250,000).

10

Related party transactions

Summary of transactions with other related parties

During the year CCHM Limited borrowed monies from another company controlled by the directors. The loan is repayable on demand. At the balance sheet date the amount due to this company was £542,427 (2020 - £1,380,860). During the year CCHM Limited lent monies to other companies controlled by the directors. The loans are repayable on demand. At the balance sheet date the amount due from this company was £654,109 (2020 - £650,000).
 

11

Share capital

Allotted, called up and fully paid shares

 

2021

2020

 

No.

£

No.

£

Ordinary shares of £0.01 each

1,000,000

10,000

1,000,000

10,000