Company registration number 01742959 (England and Wales)
CHAMPION MANUFACTURING GROUP LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
PAGES FOR FILING WITH REGISTRAR
CHAMPION MANUFACTURING GROUP LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
CHAMPION MANUFACTURING GROUP LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2022
31 December 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
4
31,821
38,180
Tangible assets
5
160,624
156,242
192,445
194,422
Current assets
Stocks
1,006,356
741,789
Debtors
6
881,287
884,172
Cash at bank and in hand
8,106
116,817
1,895,749
1,742,778
Creditors: amounts falling due within one year
7
(183,587)
(299,760)
Net current assets
1,712,162
1,443,018
Total assets less current liabilities
1,904,607
1,637,440
Creditors: amounts falling due after more than one year
8
(192)
Provisions for liabilities
(35,831)
(30,919)
Net assets
1,868,776
1,606,329
Capital and reserves
Called up share capital
10
50
50
Capital redemption reserve
50
50
Profit and loss reserves
1,868,676
1,606,229
Total equity
1,868,776
1,606,329
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on 26 October 2023
Ms S J Fedarb
Director
Company Registration No. 01742959
CHAMPION MANUFACTURING GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
1
Accounting policies
Company information
Champion Manufacturing Group Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 4, Heron Road, Rumney, Cardiff, United Kingdom, CF3 3JE.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
At the time of approving the financial statements therefore, the director hatrues a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and therefore continues to adopt the going concern basis.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Sales of goods are recognised on sale to the customer, which is considered the point of delivery.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred.
1.5
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
CHAMPION MANUFACTURING GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 3 -
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Short leasehold property
Straight line over the life of the lease
Plant and machinery
12.5% - 15% straight line
Fixtures, fittings & equipment
15% - 25% straight line
Motor vehicles
25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
CHAMPION MANUFACTURING GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 4 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.
1.13
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
CHAMPION MANUFACTURING GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 5 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Stock and provisioning
As a result of the company's principal activity, it is necessary to consider the recoverability of the cost of stock and the provisioning required. When calculating any stock provision, management considers the age, nature and condition of the inventory, as well as applying assumptions around anticipated future usage of finished goods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
60
55
4
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2022 and 31 December 2022
63,635
Amortisation and impairment
At 1 January 2022
25,455
Amortisation charged for the year
6,359
At 31 December 2022
31,814
Carrying amount
At 31 December 2022
31,821
At 31 December 2021
38,180
CHAMPION MANUFACTURING GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
4
Intangible fixed assets
(Continued)
- 6 -
On 31 December 2017 the company acquired 100% of the trade and assets of Proline Supports, an unincorporated entity under common control. Goodwill occurred on acquisition as the consideration paid exceeded the net assets of Proline Supports. The goodwill was recognised on the 31 December 2017 therefore has been amortised at 10% to the current year end.
5
Tangible fixed assets
Short leasehold property
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2022
24,157
988,914
76,011
27,130
1,116,212
Additions
49,245
1,523
50,768
Disposals
(27,130)
(27,130)
At 31 December 2022
24,157
1,038,159
77,534
1,139,850
Depreciation and impairment
At 1 January 2022
24,157
841,173
67,510
27,130
959,970
Depreciation charged in the year
42,638
3,748
46,386
Eliminated in respect of disposals
(27,130)
(27,130)
At 31 December 2022
24,157
883,811
71,258
979,226
Carrying amount
At 31 December 2022
154,348
6,276
160,624
At 31 December 2021
147,741
8,501
156,242
6
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
5,145
12
Corporation tax recoverable
24,996
Other debtors
851,042
834,064
856,187
859,072
CHAMPION MANUFACTURING GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
6
Debtors
(Continued)
- 7 -
2022
2021
Amounts falling due after more than one year:
£
£
Other debtors
25,100
25,100
Total debtors
881,287
884,172
7
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans and overdrafts
37,594
Trade creditors
101,230
124,725
Corporation tax
113,495
Other taxation and social security
20,348
26,520
Other creditors
24,415
35,020
183,587
299,760
8
Creditors: amounts falling due after more than one year
2022
2021
£
£
Other creditors
192
Other creditors in the prior year consisted of a loan to the company from family members for which repayment was due in over 1 year from the balance sheet date. The loan was interest free and market rate of interest was not applied to this concessionary loan as the difference between the effective interest charge and the discounting rate applied to recognise the liability at its net present value was immaterial. Total loan was repaid by 31st December 2022.
CHAMPION MANUFACTURING GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
9
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2022
2021
Balances:
£
£
Accelerated capital allowances
36,086
31,088
Retirement benefit obligations
(255)
(169)
35,831
30,919
2022
Movements in the year:
£
Liability at 1 January 2022
30,919
Charge to profit or loss
4,912
Liability at 31 December 2022
35,831
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
10
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of 1p each
5,000
5,000
50
50
11
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
The senior statutory auditor was Susan Phillips and the auditor was Azets Audit Services.
CHAMPION MANUFACTURING GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
12
Related party transactions
Finest Brands International Limited
Finest Brands International Limited is a fellow group subsidiary. Sales to Finest Brands Holdings Limited during the year were £3,309,966 (2021: £3,586,934). At 31 December 2022, Finest Brands International Limited owed Champion Manufacturing Group Limited £206,124 (2021: £315,370).
Mrs S Fedarb and Mrs C Jeremiah
The director and ultimate controlling party, Mrs S Fedarb, and previous director Mrs C Jeremiah together own commercial premises occupied by the company during the year. Rent on these premises amounted to £100,400 (2021: £100,400). As at 31 December 2022 prepaid rent and rental deposits totalling £25,100 (2021: £25,100) are included within debtors.
Ich Dien Limited
During the year purchases of £19,800 (2021: £24,300) were made from Ich Dien Limited for IT support. As at 31 December 2022 an amount was due to Ich Dien Limited of £23,760 (2021: £Nil). Ich Dien Limited is owned by the spouse of Mrs S Fedarb.
C.L. Farm Limited
During the year purchases of £Nil (2021: £1,500) were made from C.L. Farm Limited, a related party due to common control.
13
Parent company
Following a share-for-share exchange on 24 December 2021, the company is now a 100% owned subsidiary of Finest Brands Holdings Limited (a company incorporated in England and Wales). The ultimate controlling party is Mrs S J Fedarb, by virtue of her shareholding in Finest Brands Holdings Limited.
14
Financial commitments, guarantees and contingent liabilities
The bank holds a fixed and floating charge over all present freehold and leasehold property. The charge is applied over book and other debts, chattels, goodwill and uncalled capital, both present and future. The charge relates to the overdraft facility applied from 01 February 2018.
2022-12-312022-01-01false26 October 2023CCH SoftwareCCH Accounts Production 2023.300No description of principal activityThis audit opinion is unqualifiedMs S J Fedarbfalse017429592022-01-012022-12-31017429592022-12-31017429592021-12-3101742959core:NetGoodwill2022-12-3101742959core:NetGoodwill2021-12-3101742959core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-3101742959core:PlantMachinery2022-12-3101742959core:FurnitureFittings2022-12-3101742959core:MotorVehicles2022-12-3101742959core:LandBuildingscore:OwnedOrFreeholdAssets2021-12-3101742959core:PlantMachinery2021-12-3101742959core:FurnitureFittings2021-12-3101742959core:MotorVehicles2021-12-3101742959core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3101742959core:CurrentFinancialInstrumentscore:WithinOneYear2021-12-3101742959core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3101742959core:Non-currentFinancialInstrumentscore:AfterOneYear2021-12-3101742959core:CurrentFinancialInstruments2022-12-3101742959core:CurrentFinancialInstruments2021-12-3101742959core:ShareCapital2022-12-3101742959core:ShareCapital2021-12-3101742959core:CapitalRedemptionReserve2022-12-3101742959core:CapitalRedemptionReserve2021-12-3101742959core:RetainedEarningsAccumulatedLosses2022-12-3101742959core:RetainedEarningsAccumulatedLosses2021-12-3101742959bus:Director12022-01-012022-12-3101742959core:Goodwill2022-01-012022-12-3101742959core:LandBuildingscore:OwnedOrFreeholdAssets2022-01-012022-12-3101742959core:PlantMachinery2022-01-012022-12-3101742959core:FurnitureFittings2022-01-012022-12-3101742959core:MotorVehicles2022-01-012022-12-31017429592021-01-012021-12-3101742959core:NetGoodwill2021-12-3101742959core:NetGoodwill2022-01-012022-12-3101742959core:LandBuildingscore:OwnedOrFreeholdAssets2021-12-3101742959core:PlantMachinery2021-12-3101742959core:FurnitureFittings2021-12-3101742959core:MotorVehicles2021-12-31017429592021-12-3101742959core:WithinOneYear2022-12-3101742959core:WithinOneYear2021-12-3101742959core:AfterOneYear2022-12-3101742959core:AfterOneYear2021-12-3101742959core:Non-currentFinancialInstruments2022-12-3101742959core:Non-currentFinancialInstruments2021-12-3101742959bus:PrivateLimitedCompanyLtd2022-01-012022-12-3101742959bus:SmallCompaniesRegimeForAccounts2022-01-012022-12-3101742959bus:FRS1022022-01-012022-12-3101742959bus:Audited2022-01-012022-12-3101742959bus:FullAccounts2022-01-012022-12-31xbrli:purexbrli:sharesiso4217:GBP