REGISTERED NUMBER: 11064744 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 December 2021 |
for |
Chevin Group Holdings Limited |
REGISTERED NUMBER: 11064744 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 December 2021 |
for |
Chevin Group Holdings Limited |
Chevin Group Holdings Limited (Registered number: 11064744) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 December 2021 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 4 |
Consolidated Profit and Loss Account | 7 |
Consolidated Balance Sheet | 8 |
Company Balance Sheet | 9 |
Consolidated Statement of Changes in Equity | 10 |
Company Statement of Changes in Equity | 11 |
Consolidated Cash Flow Statement | 12 |
Notes to the Consolidated Financial Statements | 13 |
Chevin Group Holdings Limited |
Company Information |
for the Year Ended 31 December 2021 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
Chartered Accountants |
The Mills |
Canal Street |
Derby |
DE1 2RJ |
Chevin Group Holdings Limited (Registered number: 11064744) |
Group Strategic Report |
for the Year Ended 31 December 2021 |
The directors present their strategic report of the company and the group for the year ended 31 December 2021. |
REVIEW OF BUSINESS |
The principal activities of the group in the year under review were those of housing development and the buying and selling of property. |
The result for the year shows a profit of £1.1m (2020 - £1.56m), which the directors are pleased with given the competitive market the group operates in. Turnover decreased in the year, this is dependent on the level of development opportunities and a number of developments sold in the year. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The management of the business and the nature of the group's strategy are subject to a number of risks. |
The group continues to face the challenges of the general economic situation and the risks of competition and pricing within its sector. |
The COVID-19 inevitably had an effect on the property market and on the group's trading ability in particular slowing construction. Although restrictions have now been relaxed, the directors are maintaining a watching brief of the impacts on the industry and taking necessary precautions to best mitigate any further risks presented. |
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES |
The group uses basic financial instruments, comprising bank balances, loans and creditors that arise directly from its operations. The main risk arising from the group's financial instruments is liquidity risk. |
LIQUIDITY RISK |
The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet its financing obligations. |
FUTURE DEVELOPMENTS |
Two of the subsidiaries, Chevin Homes Limited and Chevin Homes (Milford) Limited, will cease trading within the next 12 months and their accounts have been prepared on an appropriate basis. Other group entities will continue their trading activities, resulting in no significant change expected to the group reporting in subsequent years. |
ON BEHALF OF THE BOARD: |
Chevin Group Holdings Limited (Registered number: 11064744) |
Report of the Directors |
for the Year Ended 31 December 2021 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2021. |
DIVIDENDS |
Interim dividends of £530 per share were paid in the year to 31 December 2021. The directors recommend that no final dividend be paid. |
Total distribution of dividends for the year ended 31 December 2021 was £530,000. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2021 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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Chevin Group Holdings Limited |
Opinion |
We have audited the financial statements of Chevin Group Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2021 which comprise the Consolidated Profit and Loss Account, 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 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 31 December 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. |
Report of the Independent Auditors to the Members of |
Chevin Group Holdings Limited |
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: |
Based on our understanding of the company and sector in which it operates, we considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. Audit procedures performed by the engagement team included: |
- | Enquiry of management around actual and potential litigation and claims; |
- | Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; |
- | Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
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. |
Report of the Independent Auditors to the Members of |
Chevin Group Holdings Limited |
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. |
for and on behalf of |
Statutory Auditors |
Chartered Accountants |
The Mills |
Canal Street |
Derby |
DE1 2RJ |
Chevin Group Holdings Limited (Registered number: 11064744) |
Consolidated |
Profit and Loss Account |
for the Year Ended 31 December 2021 |
2021 | 2020 |
Notes | £ | £ | £ | £ |
TURNOVER | 11,946,726 | 12,890,385 |
Cost of sales | 9,929,527 | 10,796,602 |
GROSS PROFIT | 2,017,199 | 2,093,783 |
Selling costs | 113 | 422 |
Administrative expenses | 888,092 | 1,003,430 |
888,205 | 1,003,852 |
1,128,994 | 1,089,931 |
Other operating income | 479,574 | 140,330 |
OPERATING PROFIT | 5 | 1,608,568 | 1,230,261 |
Interest receivable and similar income | 8,851 | 18,772 |
1,617,419 | 1,249,033 |
Gain/loss on revaluation of assets | 663,243 | 1,579,268 |
2,280,662 | 2,828,301 |
Interest payable and similar expenses | 6 | 937,807 | 910,667 |
PROFIT BEFORE TAXATION | 1,342,855 | 1,917,634 |
Tax on profit | 7 | 257,620 | 358,086 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,085,235 |
1,559,548 |
Profit attributable to: |
Owners of the parent | 1,030,271 | 1,532,467 |
Non-controlling interests | 54,964 | 27,081 |
1,085,235 | 1,559,548 |
Total comprehensive income attributable to: |
Owners of the parent | 1,030,271 | 1,532,467 |
Non-controlling interests | 54,964 | 27,081 |
1,085,235 | 1,559,548 |
Chevin Group Holdings Limited (Registered number: 11064744) |
Consolidated Balance Sheet |
31 December 2021 |
2021 | 2020 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 | 18,242 | 24,322 |
Investments | 11 | - | - |
Investment property | 12 | 9,742,771 | 8,786,811 |
9,761,013 | 8,811,133 |
CURRENT ASSETS |
Stocks | 13 | 12,781,572 | 6,465,201 |
Debtors | 14 | 267,932 | 401,020 |
Cash at bank and in hand | 21,840 | 403,789 |
13,071,344 | 7,270,010 |
CREDITORS |
Amounts falling due within one year | 15 | 13,795,702 | 7,467,751 |
NET CURRENT LIABILITIES | (724,358 | ) | (197,741 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
9,036,655 |
8,613,392 |
CREDITORS |
Amounts falling due after more than one year |
16 |
(4,281,955 |
) |
(4,637,221 |
) |
PROVISIONS FOR LIABILITIES | 20 | (690,284 | ) | (467,000 | ) |
NET ASSETS | 4,064,416 | 3,509,171 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 1,000 | 1,000 |
Fair value reserve | 22 | 2,616,897 | 2,176,818 |
Merger difference | 22 | (996 | ) | (996 | ) |
Retained earnings | 22 | 1,389,915 | 1,329,723 |
SHAREHOLDERS' FUNDS | 4,006,816 | 3,506,545 |
NON-CONTROLLING INTERESTS | 57,600 | 2,626 |
TOTAL EQUITY | 4,064,416 | 3,509,171 |
The financial statements were approved by the Board of Directors and authorised for issue on 21 August 2022 and were signed on its behalf by: |
J D Fearnehough - Director |
Chevin Group Holdings Limited (Registered number: 11064744) |
Company Balance Sheet |
31 December 2021 |
2021 | 2020 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
Investments | 11 |
Investment property | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
16 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 20 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Fair value reserve | 22 |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,225,120 | 1,298,142 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Chevin Group Holdings Limited (Registered number: 11064744) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 December 2021 |
Called up | Fair |
share | Retained | value |
capital | earnings | reserve |
£ | £ | £ |
Balance at 1 January 2020 | 1,000 | 1,486,525 | 897,549 |
Changes in equity |
Dividends | - | (410,000 | ) | - |
Total comprehensive income | - | 253,198 | 1,279,269 |
Balance at 31 December 2020 | 1,000 | 1,329,723 | 2,176,818 |
Changes in equity |
Dividends | - | (530,000 | ) | - |
Total comprehensive income | - | 590,192 | 440,079 |
Balance at 31 December 2021 | 1,000 | 1,389,915 | 2,616,897 |
Merger | Non-controlling | Total |
difference | Total | interests | equity |
£ | £ | £ | £ |
Balance at 1 January 2020 | (996 | ) | 2,384,078 | (24,455 | ) | 2,359,623 |
Changes in equity |
Dividends | - | (410,000 | ) | - | (410,000 | ) |
Total comprehensive income | - | 1,532,467 | 27,081 | 1,559,548 |
Balance at 31 December 2020 | (996 | ) | 3,506,545 | 2,626 | 3,509,171 |
Changes in equity |
Dividends | - | (530,000 | ) | - | (530,000 | ) |
Total comprehensive income | - | 1,030,271 | 54,964 | 1,085,235 |
Balance at 31 December 2021 | (996 | ) | 4,006,816 | 57,590 | 4,064,406 |
Chevin Group Holdings Limited (Registered number: 11064744) |
Company Statement of Changes in Equity |
for the Year Ended 31 December 2021 |
Called up | Fair |
share | Retained | value | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 January 2020 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2020 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2021 |
Chevin Group Holdings Limited (Registered number: 11064744) |
Consolidated Cash Flow Statement |
for the Year Ended 31 December 2021 |
2021 | 2020 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 25 | (4,117,435 | ) | 4,172,744 |
Interest paid | (936,804 | ) | (909,547 | ) |
Interest element of hire purchase payments paid |
(1,003 |
) |
(1,120 |
) |
Tax paid | (173,712 | ) | (52,482 | ) |
Net cash from operating activities | (5,228,954 | ) | 3,209,595 |
Cash flows from investing activities |
Purchase of tangible fixed assets | - | (29,935 | ) |
Purchase of investment property | (880,958 | ) | (347,090 | ) |
Sale of investment property | 513,000 | 222,000 |
Interest received | 8,851 | 18,772 |
Net cash from investing activities | (359,107 | ) | (136,253 | ) |
Cash flows from financing activities |
Loan movement | 5,507,949 | (2,582,452 | ) |
Amount introduced by directors | 216,000 | 328,870 |
Amount withdrawn by directors | (13,230 | ) | (222,870 | ) |
Equity dividends paid | (530,000 | ) | (410,000 | ) |
Net cash from financing activities | 5,180,719 | (2,886,452 | ) |
(Decrease)/increase in cash and cash equivalents | (407,342 | ) | 186,890 |
Cash and cash equivalents at beginning of year |
26 |
403,789 |
216,899 |
Cash and cash equivalents at end of year |
26 |
(3,553 |
) |
403,789 |
Chevin Group Holdings Limited (Registered number: 11064744) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 December 2021 |
1. | STATUTORY INFORMATION |
Chevin Group Holdings Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
The accounts have been prepared on the going concern basis. The directors have confirmed the |
current liability position will be managed as part of their ongoing consideration to cashflow and the timing of sales and other receipts to fund future projects. |
Basis of consolidation |
Merger accounting has been adopted to include the results of the trading subsidiaries including adjustments to effect the 12 month accounting periods. |
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 represents the invoiced value of completed property sales, excluding value added tax. Turnover is recognised on the completion date of the property sale. |
Turnover also includes rents received from tenants of investment properties. This is recognised as it falls due, in accordance with the lease to which it relates. |
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. |
Deferred taxation is provided on these gains at the rate expected to apply when the property is sold. |
Stocks and work in progress |
Stocks and work in progress are valued at the lower of cost and net realisable value. Cost represents the purchase price in addition to any legal fees and refurbishment costs. Net realisable value is based on the estimated selling price less further costs expected to be incurred in completion and disposal. |
At each reporting date, stock and work in progress is assessed for expected losses. If a loss is expected then the loss is recognised in full immediately in the Profit and Loss Account. |
Chevin Group Holdings Limited (Registered number: 11064744) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2021 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Profit and Loss Account, 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. |
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. |
Grants |
Revenue grants are recognised in the profit and loss account so as to match them with the expenditure towards which they are intended to contribute. |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
In the application of the company's accounting policies the directors are required to make judgements, estimates and assumptions about the carrying amounts of the company's assets and liabilities. These are based on historical experience and other factors that are considered relevant and are reviewed on a regular basis and recognised in the period in which the estimate is revised. Actual results may differ from these estimates. |
The following are the critical judgements and where relevant the key sources of estimation uncertainty: |
The directors have based the fair value of properties held for investment purposes initially on and purchase price updated for considerations to capital improvements, rental yields, market conditions and other external factors that could bring about a change in the fair value. |
Stock is valued at the lower of cost or net realisable value. The allocation of land and development |
costs to the individual sale of properties is determined by reference to plot size, including consideration to site and build characteristics. |
4. | EMPLOYEES AND DIRECTORS |
2021 | 2020 |
£ | £ |
Wages and salaries | 337,265 | 324,322 |
Social security costs | 43,361 | 35,673 |
Other pension costs | 51,546 | 98,745 |
432,172 | 458,740 |
Chevin Group Holdings Limited (Registered number: 11064744) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2021 |
4. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2021 | 2020 |
Management | 2 | 2 |
Administration | 10 | 9 |
2021 | 2020 |
£ | £ |
Directors' remuneration | 83,938 | 18,694 |
Directors' pension contributions to money purchase schemes | 44,000 | 81,000 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 2 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2021 | 2020 |
£ | £ |
Depreciation - owned assets | 6,080 | 5,613 |
(Profit)/loss on disposal of fixed assets | (64,784 | ) | 3,485 |
Auditors' remuneration | 20,590 | 11,320 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2021 | 2020 |
£ | £ |
Bank interest | - | 12 |
Bank loan interest | 177,826 | 184,804 |
Other loan interest | 756,198 | 724,731 |
Interest on tax | 2,780 | - |
Hire purchase | 1,003 | 1,120 |
937,807 | 910,667 |
Chevin Group Holdings Limited (Registered number: 11064744) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2021 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2021 | 2020 |
£ | £ |
Current tax: |
UK corporation tax | 131,487 | 71,986 |
Over provision in prior |
year | (3,667 | ) | - |
Total current tax | 127,820 | 71,986 |
Deferred tax | 129,800 | 286,100 |
Tax on profit | 257,620 | 358,086 |
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: |
2021 | 2020 |
£ | £ |
Profit before tax | 1,342,855 | 1,917,634 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2020 - 19 %) |
255,142 |
364,350 |
Effects of: |
Expenses not deductible for tax purposes | 2,648 | 8,316 |
Capital allowances in excess of depreciation | - | (162 | ) |
Other timing differences | (170 | ) | (14,418 | ) |
Total tax charge | 257,620 | 358,086 |
8. | INDIVIDUAL PROFIT AND LOSS ACCOUNT |
As permitted by Section 408 of the Companies Act 2006, the Profit and Loss Account of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
2021 | 2020 |
£ | £ |
Ordinary shares of £1 each |
Interim | 530,000 | 410,000 |
Chevin Group Holdings Limited (Registered number: 11064744) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2021 |
10. | TANGIBLE FIXED ASSETS |
Group |
Motor |
vehicles |
£ |
COST |
At 1 January 2021 |
and 31 December 2021 | 29,935 |
DEPRECIATION |
At 1 January 2021 | 5,613 |
Charge for year | 6,080 |
At 31 December 2021 | 11,693 |
NET BOOK VALUE |
At 31 December 2021 | 18,242 |
At 31 December 2020 | 24,322 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2021 |
and 31 December 2021 |
NET BOOK VALUE |
At 31 December 2021 |
At 31 December 2020 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: 44 Friar Gate, Derby, DE1 1DA |
Nature of business: |
% |
Class of shares: | holding |
Registered office: 44 Friar Gate, Derby, DE1 1DA |
Nature of business: |
% |
Class of shares: | holding |
Chevin Group Holdings Limited (Registered number: 11064744) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2021 |
11. | FIXED ASSET INVESTMENTS - continued |
Registered office: 44 Friar Gate, Derby, DE1 1DA |
Nature of business: |
% |
Class of shares: | holding |
Registered office: 44 Friar Gate, Derby, DE1 1DA |
Nature of business: |
% |
Class of shares: | holding |
Registered office: 44 Friar Gate, Derby, DE1 1DA |
Nature of business: |
% |
Class of shares: | holding |
Merger relief under S612 CA 2006 has been applied and the investments have been accounted for at the nominal value of the shares issued. |
12. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 January 2021 | 8,786,811 |
Additions | 880,958 |
Disposals | (588,241 | ) |
Revaluations | 663,243 |
At 31 December 2021 | 9,742,771 |
NET BOOK VALUE |
At 31 December 2021 | 9,742,771 |
At 31 December 2020 | 8,786,811 |
Fair value at 31 December 2021 is represented by: |
£ |
Valuation in 2021 | 9,742,771 |
Chevin Group Holdings Limited (Registered number: 11064744) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2021 |
12. | INVESTMENT PROPERTY - continued |
Group |
If investment property had not been revalued it would have been included at the following historical cost: |
2021 | 2020 |
£ | £ |
Cost | 7,125,137 | 7,026,268 |
Aggregate depreciation | (420,307 | ) | (303,817 | ) |
Investment property was valued on a fair value basis on 31 December 2021 by the directors . |
Company |
Total |
£ |
FAIR VALUE |
At 1 January 2021 |
Additions |
Disposals | ( |
) |
Revaluations | 663,243 |
At 31 December 2021 |
NET BOOK VALUE |
At 31 December 2021 |
At 31 December 2020 |
Fair value at 31 December 2021 is represented by: |
£ |
Valuation in 2021 | 9,742,771 |
13. | STOCKS |
Group | Company |
2021 | 2020 | 2021 | 2020 |
£ | £ | £ | £ |
Work-in-progress | 12,781,572 | 6,465,201 |
Chevin Group Holdings Limited (Registered number: 11064744) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2021 |
14. | DEBTORS |
Group | Company |
2021 | 2020 | 2021 | 2020 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 42,383 | 46,679 |
Amounts owed by group undertakings | - | - |
Other debtors | 136,900 | 79,901 |
Owed by related parties | 22,452 | 22,190 | 22,452 | 18,350 |
Directors' current accounts | 20,100 | 222,870 | 20,100 | 222,870 |
Taxation recoverable | 4,508 | 3,980 |
Prepayments | 24,489 | 7,500 |
250,832 | 383,120 |
Amounts falling due after more than one | year: |
Deferred tax | 17,100 | 17,900 | - | - |
Aggregate amounts | 267,932 | 401,020 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2021 | 2020 | 2021 | 2020 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 17) | 552,723 | 192,881 |
Other loans (see note 17) | 10,920,861 | 5,430,457 |
Hire purchase contracts (see note 18) | 8,057 | 7,085 |
Trade creditors | 391,436 | 58,037 |
Amounts owed to group undertakings | - | - |
Tax | 182,406 | 298,298 |
Social security and other taxes | 30,135 | 33,835 |
Other creditors | 8,749 | 18,081 |
Owed to related parties | 858,089 | 830,000 | 28,089 | - |
Accruals and deferred income | 843,246 | 599,077 |
13,795,702 | 7,467,751 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2021 | 2020 | 2021 | 2020 |
£ | £ | £ | £ |
Bank loans (see note 17) | 3,194,616 | 3,529,020 |
Other loans (see note 17) | 1,085,738 | 1,082,348 |
Hire purchase contracts (see note 18) | 1,601 | 9,869 |
Accruals and deferred income | - | 15,984 |
4,281,955 | 4,637,221 |
Chevin Group Holdings Limited (Registered number: 11064744) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2021 |
17. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2021 | 2020 | 2021 | 2020 |
£ | £ | £ | £ |
Amounts falling due within one year or | on demand: |
Bank overdrafts | 25,393 | - |
Bank loans | 527,330 | 192,881 |
Other loans | 10,920,861 | 5,430,457 |
11,473,584 | 5,623,338 |
Amounts falling due between one and | two years: |
Bank loans - 1-2 years | 346,287 | 227,055 |
Other loans - 1-2 years | 86,167 | 152,472 | 41,423 |
432,454 | 379,527 |
Amounts falling due between two and | five years: |
Bank loans - 2-5 years | 2,036,754 | 3,279,464 |
Other loans - 2-5 years | 828,833 | 864,689 |
2,865,587 | 4,144,153 |
Amounts falling due in more than five | years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 811,575 | 22,501 | 812,425 | - |
Other loans more 5yrs instal | 170,738 | 65,187 | 170,738 | - |
982,313 | 87,688 | 983,163 | - |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2021 | 2020 |
£ | £ |
Net obligations repayable: |
Within one year | 8,057 | 7,085 |
Between one and five years | 1,601 | 9,869 |
9,658 | 16,954 |
Chevin Group Holdings Limited (Registered number: 11064744) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2021 |
18. | LEASING AGREEMENTS - continued |
Group |
Non-cancellable | operating leases |
2021 | 2020 |
£ | £ |
Within one year | 64,392 | 71,830 |
Between one and five years | 366 | 70,335 |
64,758 | 142,165 |
The following operating lease income is committed to be received: |
2021 | 2020 |
£ | £ |
Within one year | 346,429 | 132,770 |
Between one and five years | 845,778 | 479,633 |
More than five years | 104,100 | 240,462 |
1,296,307 | 852,866 |
Relates to investment property leases, income is received quarterly and monthly. |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2021 | 2020 | 2021 | 2020 |
£ | £ | £ | £ |
Bank loans | 3,721,946 | 3,721,901 |
Other loans | 12,006,599 | 6,512,805 | - | - |
15,728,545 | 10,234,706 |
Bank loans are secured against all assets of the group. |
Bank loans totalling £200,000 are personally indemnified by the directors. |
Other loans are secured against the trading stock of the group. |
20. | PROVISIONS FOR LIABILITIES |
Group | Company |
2021 | 2020 | 2021 | 2020 |
£ | £ | £ | £ |
Deferred tax | 596,000 | 467,000 | 596,000 | 467,000 |
Other provisions | 94,284 | - | - | - |
Aggregate amounts | 690,284 | 467,000 | 596,000 | 467,000 |
Chevin Group Holdings Limited (Registered number: 11064744) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2021 |
20. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1 January 2021 | 467,000 | - |
Charge to Profit and Loss Account during year | 129,000 | 94,284 |
Balance at 31 December 2021 | 596,000 | 94,284 |
Company |
Deferred |
tax |
£ |
Balance at 1 January 2021 |
Deferred | 129,000 |
Balance at 31 December 2021 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | £ | £ |
Ordinary | £1 | 1,000 | 1,000 |
22. | RESERVES |
Group |
Fair |
Retained | value | Merger |
earnings | reserve | difference | Totals |
£ | £ | £ | £ |
At 1 January 2021 | 1,329,723 | 2,176,818 | (996 | ) | 3,505,545 |
Profit for the year | 1,030,271 | 1,030,271 |
Dividends | (530,000 | ) | (530,000 | ) |
Revaluation surplus | (663,243 | ) | 663,243 | - | - |
Revaluation disposal | 94,164 | (94,164 | ) | - | - |
Deferred tax | 129,000 | (129,000 | ) | - | - |
At 31 December 2021 | 1,389,915 | 2,616,897 | (996 | ) | 4,005,816 |
Chevin Group Holdings Limited (Registered number: 11064744) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2021 |
22. | RESERVES - continued |
Company |
Fair |
Retained | value |
earnings | reserve | Totals |
£ | £ | £ |
At 1 January 2021 | 3,241,456 |
Profit for the year |
Dividends | ( |
) | ( |
) |
Revaluation surplus | (663,243 | ) | 663,243 | - |
Revaluation disposal | 94,164 | (94,164 | ) | - |
Deferred tax | 129,000 | (129,000 | ) | - |
At 31 December 2021 | 3,936,576 |
23. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 31 December 2021 and 31 December 2020: |
2021 | 2020 |
£ | £ |
J D Fearnehough |
Balance outstanding at start of year | 111,435 | 164,435 |
Amounts advanced | 6,615 | 104,500 |
Amounts repaid | (108,000 | ) | (157,500 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 10,050 | 111,435 |
J D Cokayne |
Balance outstanding at start of year | 111,435 | 164,435 |
Amounts advanced | 6,615 | 104,500 |
Amounts repaid | (108,000 | ) | (157,500 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 10,050 | 111,435 |
24. | RELATED PARTY DISCLOSURES |
During the year, the group companies had loans outstanding from the directors close relations and other related companies. At the year end, £810,685 (2020: £825,810) was outstanding and included within other loans. Interest has been charged at rates of 10-12%, with £83,000 (2020: £87,165) being charged in the year. |
The group companies were charged for management services provided by the directors through their separately owned related companies. During the year, the total charge to the group was £132,000 (2020: £126,500), which was fully paid before the year end. |
The group companies charged for management services provided by the directors through their separately owned related companies. During the year, the total income within the group was £23,500 (2020: £33,800), which was fully paid before the year end. |
Chevin Group Holdings Limited (Registered number: 11064744) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2021 |
During the year, a total of key management personnel compensation of £ 153,131 (2020 - £ 193,529 ) was paid. |
25. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2021 | 2020 |
£ | £ |
Profit before taxation | 1,342,855 | 1,917,634 |
Depreciation charges | 6,081 | 5,613 |
Loss/(profit) on disposal of fixed assets | 85,242 | (181,274 | ) |
Gain on revaluation of fixed assets | (663,243 | ) | (1,579,268 | ) |
Finance costs | 937,807 | 910,667 |
Finance income | (8,851 | ) | (18,772 | ) |
1,699,891 | 1,054,600 |
(Increase)/decrease in stocks | (6,316,371 | ) | 3,147,583 |
(Increase)/decrease in trade and other debtors | (70,210 | ) | 13,792 |
Increase/(decrease) in trade and other creditors | 569,255 | (43,231 | ) |
Cash generated from operations | (4,117,435 | ) | 4,172,744 |
26. | 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 December 2021 |
31.12.21 | 1.1.21 |
£ | £ |
Cash and cash equivalents | 21,840 | 403,789 |
Bank overdrafts | (25,393 | ) | - |
(3,553 | ) | 403,789 |
Year ended 31 December 2020 |
31.12.20 | 1.1.20 |
£ | £ |
Cash and cash equivalents | 403,789 | 216,899 |
27. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.1.21 | Cash flow | At 31.12.21 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 403,789 | (381,949 | ) | 21,840 |
Bank overdrafts | - | (25,393 | ) | (25,393 | ) |
403,789 | (407,342 | ) | (3,553 | ) |
Debt |
Finance leases | (16,954 | ) | 7,296 | (9,658 | ) |
Debts falling due within 1 year | (5,623,338 | ) | (5,824,853 | ) | (11,448,191 | ) |
Debts falling due after 1 year | (4,611,368 | ) | 331,014 | (4,280,354 | ) |
(10,251,660 | ) | (5,486,543 | ) | (15,738,203 | ) |
Total | (9,847,871 | ) | (5,893,885 | ) | (15,741,756 | ) |