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Registered number: SC059461













CHAP (HOLDINGS) LIMITED






ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

 
CHAP (HOLDINGS) LIMITED
 

COMPANY INFORMATION


Directors
A S Craigie 
H Craigie 
S L Gee 
J A Clark 
D W Shewan (appointed 1 November 2022)




Registered number
SC059461



Registered office
Enterprise Drive
Westhill

Aberdeenshire

AB32 6TQ





 
CHAP (HOLDINGS) LIMITED
 

CONTENTS



Page
Group strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Consolidated profit and loss account
10
Consolidated statement of comprehensive income
11
Consolidated balance sheet
12 - 13
Company balance sheet
14 - 15
Consolidated statement of changes in equity
16
Company statement of changes in equity
17
Consolidated statement of cash flows
18 - 19
Consolidated analysis of net debt
20
Notes to the financial statements
21 - 44


 
CHAP (HOLDINGS) LIMITED
 

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023

Principal activities
 
The principal activities of the parent company and group are that of building and civil engineering contracting and property development.
There have not been any significant changes in the parent company or group's principal activities during the year under review.  The directors are not aware, at the date of this report, of any likely major changes on the parent company or group's activities in the next year.

Business review
 
Turnover for the year ended 30 September 2023 increased by 13% to £53m, attributable to the Construction division seeing a continued marked increase in activity.
A profit before tax of £206k was reported, against £152k the prior year.
In 2021 the group embarked on a strategic growth and development plan, investing in the company and new personnel to provide the highest quality of service in the industry. Since undertaking this plan three new Shareholding Board Directors have been appointed, alongside two Non-Executive Board Directors, providing a wealth of experience within both business and the construction industry.
Through the award of multiple major projects, CHAP has expanded into the Tayside and Perthshire regions. On the back of these tender successes the company has employed a new area construction director and plans to open a regional office in Dundee in 2024. The Board sees huge potential in Dundee and this new sub-division is expected to continue to play an important role in the business’ development and growth in the future.

Principal risks and uncertainties
 
Despite an increase in activity competitive pressure continues in all areas of the construction industry.  Material availability and inflationary cost increases could impact margins and the group continues to maintain strong relationships with its supply chain to help mitigate the risk.

Financial key performance indicators
 
The Board reviews in detail the performance of each of the businesses through their monthly management accounts and contract costing reports. The Board reviews enquiry levels, order book, contract performance, turnover, manpower levels, gross margins achieved and overheads.

Page 1
 

 
CHAP (HOLDINGS) LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023

Directors' statement of compliance with duty to promote the success of the Group
 
The group directors consider, both individually and collectively, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the group for the benefit of its members as a whole in the decisions taken during the current year.  
When making these decisions the directors have given regard to:

The likely consequences of any decision on the long-term;
The interests of the group employees;
The need to foster the group's business relationships with suppliers, customers and others;
The impact of the group's operations on the community and environment;
The desirability of the group maintaining a reputation for high standards of business conduct; and
The need to act fairly between shareholders of the group.

The vast majority of stakeholder engagement is carried out by the Board.
The Board considers and discusses information from across the organisation to help it understand the impact of the company's operations, and the interests and views of our key stakeholders. It also reviews strategy, financial and operational performance as well as information covering areas such as key risks, legal and regulatory compliance
As a result of these activities, the Board has an overview of engagement with stakeholders, and other relevant factors, which enables the directors to comply with their legal duty under section 172 of the Companies Act 2006.


This report was approved by the board and signed on its behalf.





H Craigie
Director

Date: 22 February 2024

Page 2
 

 
CHAP (HOLDINGS) LIMITED
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023

The directors present their report and the financial statements for the year ended 30 September 2023.

Results and dividends

The profit for the year, after taxation, amounted to £206k (2022 - £152k).

Directors

The directors who served during the year were:

A S Craigie 
H Craigie 
S L Gee 
J A Clark 
D W Shewan (appointed 1 November 2022)

Engagement with suppliers, customers and others

The groups supply chain has been audited and verified against important criteria such as financial stability, anti-bribery, modern slavery and exploitation, safety, fair employment practices and environmental compliance.  In addition, we are constantly reviewing our supply chain for compliance and will continue to support local businesses that encourage the fair employment of the disadvantaged and those that adopt fair ethical trading initiatives within the goods and services they supply the group.  We pay our suppliers on time, and maintain close relationships with them, providing support where it may be required.

Environment and SECR compliance

We fully recognise our responsibility to protect the environment and we have strong environmental policy objectives and guidelines in place which we review and update regularly. 

The following disclosures cover the financial year from 1 October 2022 to 30 September 2023 and is inclusive of the results for CHAP Group (Aberdeen) Limited. All of the Group’s operating activities are included. During this period the Group’s energy usage and emissions were as follows:


Sept 23
Sept 22

UK Energy usage 
(kWh)
 

192,564

192,936
Associated Greenhouse gas emissions
(CO2 equivalent tonnes)
 
341,208
398,514
Fuel used
(Litres)
 
293,001
385,308
Intensity Ratio
(Emissions per £'000 revenue)
6.412
8.481


Energy efficiency action

We are committed to energy efficiency and have a number of policies and programs to decrease energy usage where possible.

Page 3
 

 
CHAP (HOLDINGS) LIMITED
 

DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023

Intensity ratio and methodologies

Greenhouse gas emissions are reported in tonnes carbon dioxide equivalents CO2e. Calculations are performed using the emission factors which are in accordance with the current guidelines from the UK Government GHG Conversion Factors for Company Reporting 2020.
Definitions
Electricity - is the amount consumed in the UK resulting from the purchase of electricity for our own use, including for transport purposes.
Gas combustion - is the amount consumed in the UK resulting from stationery or mobile activities for which the business is responsible. Gas is defined in the guidance but covers methane, ethane, propane, butane, hydrogen & carbon monoxide.
Transport - is the amount of energy consumed from activities which the business is responsible and covers all energy used by site based vehicles, used to support the logistical operations as well as offsite spend through reimbursed employee travel.
Ratios
We believe the best method of assessment is total revenues for the group based on the value used for group Consolidation purposes. Based on this value reported our key ratio is 6.412 tCO2e per £1,000 of revenues.

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company and the Group's auditor is unaware; and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company and the Group's auditor is aware of that information.

Auditor

The auditor, Anderson Anderson & Brown Audit LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





H Craigie
Director

Date: 22 February 2024

Page 4
 

 
CHAP (HOLDINGS) LIMITED
 

DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2023

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 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'. 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 for the Group's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and 

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 parent company and the group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the parent company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 5
 

 
CHAP (HOLDINGS) LIMITED
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHAP (HOLDINGS) LIMITED
 

Opinion


We have audited the financial statements of CHAP (Holdings) Limited (the 'parent company') and its subsidiaries (the 'Group') for the year ended 30 September 2023, which comprise the Consolidated profit and loss account, the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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's affairs as at 30 September 2023 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 Auditor's 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 United Kingdom, including the Financial Reporting Council'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 or 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.


Page 6
 

 
CHAP (HOLDINGS) LIMITED

 

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHAP (HOLDINGS) LIMITED (CONTINUED)

Other information


The other information comprises the information included in the annual report other than the financial statements and our Auditor's report thereon. The directors are responsible for the other information contained within the annual reportOur 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. 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 course of 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.


Opinion 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 Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


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 Directors' report.


We have nothing to report in respect of the following matters in relation to which 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 Directors' responsibilities statement set out on page 5, 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 is 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.


Page 7
 

 
CHAP (HOLDINGS) LIMITED

 

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHAP (HOLDINGS) LIMITED (CONTINUED)

Auditor's 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 an Auditor's report 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 Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks within which the group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were Construction, Employment, Health & Safety and Taxation legislation plus the Companies Act 2006.

We considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: 
 
Timing and completeness of revenue recognition, specifically including management's estimate of amounts recoverable on long term contracts;
Compliance with relevant laws and regulations which may impact on the financial statements and those that the group needs to comply with for the purpose of trading;
Management judgements applied in calculating provisions; and
Management override of controls to manipulate the groups’s key performance indicators to meet targets.

We discussed these risks with client management, designed audit procedures to address these risks including:
 
Testing of journal entries and other adjustments for appropriateness;
Evaluating the business rationale of significant transactions outside the normal course of business;
Reviewing judgements made by management in their calculation of accounting estimates, including amounts recoverable on long term contracts, for potential management bias;
Enquiries of management about litigation and claims and, inspection of relevant correspondence;
Reviewing legal and professional fees to identify indications of actual or potential litigations, claims and any non-compliance with laws and regulations; and
Performing a disclosure checklist on the financial statements to ensure Companies Act 2006 requirements are satisfied.


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 Auditor's report.


Page 8
 

 
CHAP (HOLDINGS) LIMITED

 

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHAP (HOLDINGS) LIMITED (CONTINUED)

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 2006Our 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 an Auditor's report 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.





Derek Mair (Senior statutory auditor)
  
for and on behalf of
Anderson Anderson & Brown Audit LLP
 
Statutory Auditor
  
Kingshill View
Prime Four Business Park
Kingswells
Aberdeenshire
AB15 8PU

22 February 2024
Page 9
 

 
CHAP (HOLDINGS) LIMITED
 

CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2023
2022
Note
£000
£000

  

Turnover
 4 
53,213
46,999

Cost of sales
  
(48,311)
(42,844)

Gross profit
  
4,902
4,155

Administrative expenses
  
(4,396)
(3,621)

Operating profit
 5 
506
534

Interest receivable and similar income
 8 
45
5

Interest payable and similar expenses
 9 
(240)
(315)

Other finance costs
 10 
(105)
(72)

Profit before tax
  
206
152

Tax on profit
 11 
-
-

Profit for the financial year
  
206
152

The notes on pages 21 to 44 form part of these financial statements.

Page 10
 

 
CHAP (HOLDINGS) LIMITED
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2023
2022
Note
£000
£000


Profit for the financial year

  

206
152

Other comprehensive income
  


Actuarial gain on defined benefit schemes
 29 
380
1,760

Movement on deferred tax relating to pension gains / (losses)
  
(138)
(490)

Purchase of treasury shares
  
(60)
2

Other comprehensive income for the year
  
182
1,272

Total comprehensive income for the year
  
388
1,424

Profit for the year attributable to:
  


Owners of the parent company
  
206
152

  
206
152

The notes on pages 21 to 44 form part of these financial statements.

Page 11
 

 
CHAP (HOLDINGS) LIMITED

REGISTERED NUMBER:SC059461

CONSOLIDATED BALANCE SHEET
AS AT 30 SEPTEMBER 2023

2023
2022
Note
£000
£000

Fixed assets
  

Intangible assets
 12 
15
22

Tangible assets
 13 
2,680
2,520

Investment property
 15 
5,402
5,402

  
8,097
7,944

Current assets
  

Stocks
 16 
7,674
8,340

Debtors
 17 
12,776
9,746

Cash at bank and in hand
 18 
984
2,852

  
21,434
20,938

Creditors: amounts falling due within one year
 19 
(16,980)
(14,903)

Net current assets
  
 
 
4,454
 
 
6,035

Total assets less current liabilities
  
12,551
13,979

Creditors: amounts falling due after more than one year
 20 
(167)
(1,019)

Provisions for liabilities
  

Other provisions
 26 
-
(348)

  
 
 
-
 
 
(348)

Net assets excluding pension liability
  
12,384
12,612

Pension liability
 29 
(1,492)
(2,042)

Net assets
  
10,892
10,570


Capital and reserves
  

Called up share capital 
 27 
969
969

Share premium account
 28 
52
52

Capital redemption reserve
 28 
100
100

Treasury shares
 28 
(82)
(16)

Profit and loss account
 28 
9,853
9,465

  
10,892
10,570


Page 12
 

 
CHAP (HOLDINGS) LIMITED

REGISTERED NUMBER:SC059461

CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 30 SEPTEMBER 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




H Craigie
Director

Date: 22 February 2024

The notes on pages 21 to 44 form part of these financial statements.

Page 13
 

 
CHAP (HOLDINGS) LIMITED

REGISTERED NUMBER:SC059461

COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2023

2023
2022
Note
£000
£000

Fixed assets
  

Intangible assets
 12 
15
22

Tangible assets
 13 
2,349
2,491

Investments
 14 
317
317

Investment Property
 15 
5,402
5,402

  
8,083
8,232

Current assets
  

Debtors
 17 
2,257
686

Cash at bank and in hand
 18 
89
1,883

  
2,346
2,569

Creditors: amounts falling due within one year
 19 
(461)
(353)

Net current assets
  
 
 
1,885
 
 
2,216

Total assets less current liabilities
  
9,968
10,448

  

Creditors: amounts falling due after more than one year
 20 
(41)
(56)

  

Net assets excluding pension liability
  
9,927
10,392

Pension liability
 29 
(1,492)
(2,042)

Net assets
  
8,435
8,350


Capital and reserves
  

Called up share capital 
 27 
969
969

Share premium account
 28 
52
52

Capital redemption reserve
 28 
100
100

Other reserves
 28 
(82)
(16)

Profit and loss account brought forward
  
7,245
5,902

Loss/(profit) for the year
  
(31)
73

Other changes in the profit and loss account

  

182
1,270

Profit and loss account carried forward
  
7,396
7,245

  
8,435
8,350


Page 14
 

 
CHAP (HOLDINGS) LIMITED

REGISTERED NUMBER:SC059461

COMPANY BALANCE SHEET (CONTINUED)
AS AT 30 SEPTEMBER 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




H Craigie
Director

Date: 22 February 2024

The notes on pages 21 to 44 form part of these financial statements.

Page 15
 

 
CHAP (HOLDINGS) LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023


Called up share capital
Share premium account
Capital redemption reserve
Treasury shares
Profit and loss account
Total equity

£000
£000
£000
£000
£000
£000


At 1 October 2021
969
52
100
(18)
8,043
9,146



Profit for the year
-
-
-
-
152
152

Actuarial gains on pension scheme
-
-
-
-
1,270
1,270

Net transfer of Treasury shares
-
-
-
2
-
2



At 1 October 2022
969
52
100
(16)
9,465
10,570



Profit for the year
-
-
-
-
206
206

Actuarial gains on pension scheme
-
-
-
-
242
242

Net transfer of Treasury shares
-
-
-
(66)
(60)
(126)


At 30 September 2023
969
52
100
(82)
9,853
10,892


The notes on pages 21 to 44 form part of these financial statements.

Page 16
 

 
CHAP (HOLDINGS) LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023


Called up share capital
Share premium account
Capital redemption reserve
Treasury shares
Profit and loss account
Total equity

£000
£000
£000
£000
£000
£000


At 1 October 2021
969
52
100
(18)
5,902
7,005



Profit for the year
-
-
-
-
73
73

Actuarial gains on pension scheme
-
-
-
-
1,270
1,270

Net transfer of Treasury shares
-
-
-
2
-
2



At 1 October 2022
969
52
100
(16)
7,245
8,350



Loss for the year
-
-
-
-
(31)
(31)

Actuarial gains on pension scheme
-
-
-
-
242
242

Net transfer of Treasury shares
-
-
-
(66)
(60)
(126)


At 30 September 2023
969
52
100
(82)
7,396
8,435


The notes on pages 21 to 44 form part of these financial statements.

Page 17
 

 
CHAP (HOLDINGS) LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2023
2022
£000
£000

Cash flows from operating activities

Profit for the financial year
206
152

Adjustments for:

Amortisation of intangible assets
7
7

Depreciation of tangible assets
179
229

Gain on disposal of tangible assets
(16)
(544)

Interest payable and similar charges
240
397

Interest receivable and similar charges
(45)
(5)

Decrease in stocks
666
1,657

(Increase) in debtors
(3,164)
(719)

Increase in creditors
3,074
2,278

(Decrease)/increase in provisions
(348)
-

(Decrease) in net pension assets/liabs
(170)
(104)

Net cash generated from operating activities

629
3,348


Cash flows from investing activities

Purchase of tangible fixed assets
(133)
(284)

Sale of tangible fixed assets
16
805

Interest received
45
5

HP interest paid
(5)
(6)

Net cash from investing activities

(77)
520
Page 18
 

 
CHAP (HOLDINGS) LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023


2023
2022

£000
£000



Cash flows from financing activities

Repayment of loans
(1,988)
(50)

Repayment of finance leases
(71)
(111)

Interest paid
(235)
(390)

Net funds utilised on the transfer of Treasury shares
(126)
-

Net cash used in financing activities
(2,420)
(551)

Net (decrease)/increase in cash and cash equivalents
(1,868)
3,317

Cash and cash equivalents at beginning of year
2,852
(465)

Cash and cash equivalents at the end of year
984
2,852


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
984
2,852

984
2,852


The notes on pages 21 to 44 form part of these financial statements.

Page 19
 

 
CHAP (HOLDINGS) LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 SEPTEMBER 2023






At 1 October 2022
Cash flows
New finance leases
Other non-cash changes
At 30 September 2023
£000

£000

£000

£000

£000

Cash at bank and in hand

2,852

(1,868)

-

-

984

Debt due after 1 year

(963)

963

-

-

-

Debt due within 1 year

(2,848)

1,025

-

-

(1,823)

Finance leases

(86)

71

(186)

(35)

(236)


(1,045)
191
(186)
(35)
(1,075)

The notes on pages 21 to 44 form part of these financial statements.

Page 20
 

 
CHAP (HOLDINGS) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

1.


General information

CHAP (Holdings) Limited (the 'group' and the 'parent company') is a limited liability company incorporated in Scotland. The registered office is Enterprise Drive, Westhill Industrial Estate, Westhill, Aberdeenshire, AB32 6TQ.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and loss account in these financial statements.

  
2.2

Basis of consolidation

The consolidated financial statements present the results of the parent company and its own subsidiaries (the `group`) as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.3

Going concern

The directors, having made due and careful enquiry, are of the opinion that the group has adequate working capital to continue in operation for a period of at least 12 months following the approval of these financial statements. The director’s assessment includes a detailed consideration of the group’s order book and forecast cashflows to determine the group’s financial headroom.  
The directors remain pleased with the ongoing commitment of the group to its debt reduction plans as well as its current strong performance across committed and proposed projects. The group has currently zero net debt and noted the good relationship the group has with its bankers.
The directors, therefore, have made an informed judgement at the time of approving the financial statements, that there is a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future.  As a result, the directors have continued to adopt the going concern basis of accounting in preparing the annual financial statements.

Page 21
 

 
CHAP (HOLDINGS) LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

The amount of profit attributable to the stage of completion of a long term contract is recognised when the outcome of the contract can be foreseen with reasonable certainty, Turnover for such contracts is stated at the cost appropriate to their stage of completion plus attributable profits, less amounts recognised in previous years. Provision is made for losses as soon as they are foreseen.
Contract work in progress in stated at costs incurred, less those transferred to the profit and loss account, after deducting foreseeable losses and payments on account not matched with turnover.
Amounts recoverable on contracts are included in debtors and represent turnover recognised in excess of payments on account.
Other house sales turnover is recognised on legal completion and when construction is complete.

 
2.5

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 22
 

 
CHAP (HOLDINGS) LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.9

Pensions

Defined contribution pension plan
The group contributes to a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity. Once the contributions have been paid the group has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the group in independently administered funds.
Defined benefit pension plan
The group operates a defined benefit plan for certain employees. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including but not limited to age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan.
The liability recognised in the Balance sheet in respect of the defined benefit plan is the present value of the defined benefit obligation at the end of the balance sheet date less the fair value of plan assets at the balance sheet date (if any) out of which the obligations are to be settled.
The defined benefit obligation is calculated using the projected unit credit method. Annually the company engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating to the estimated period of the future payments ('discount rate').
The fair value of plan assets is measured in accordance with the FRS 102 fair value hierarchy and in accordance with the group's policy for similarly held assets. This includes the use of appropriate valuation techniques.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. These amounts together with the return on plan assets, less amounts included in net interest, are disclosed as 'Remeasurement of net defined benefit liability'.
The cost of the defined benefit plan, recognised in profit or loss as employee costs, except where included in the cost of an asset, comprises:
a) the increase in net pension benefit liability arising from employee service during the period; and
b) the cost of plan introductions, benefit changes, curtailments and settlements.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is recognised in profit or loss as a 'finance expense'.

Page 23
 

 
CHAP (HOLDINGS) LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.10

Current and deferred taxation

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.11

Intangible assets

Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Statement of comprehensive income over its useful economic life. Goodwill has no residual value. The finite useful life of goodwill is estimated to be 4 years.

 
2.12

Tangible fixed assets

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

Page 24
 

 
CHAP (HOLDINGS) LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)


2.12
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Buildings
-
25 years
Plant and machinery
-
2 to 10 years
Motor vehicles
-
3 to 10 years

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

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

No depreciation is provided on freehold land.

 
2.13

Investment property

Investment property is carried at fair value determined by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

 
2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

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

 
2.15

Stocks and Work in progress

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is 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.

 
2.16

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 25
 

 
CHAP (HOLDINGS) LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.17

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.18

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.19

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance sheet.

 
2.20

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Group's Balance sheet when the Group becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The
Page 26
 

 
CHAP (HOLDINGS) LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)


2.20
Financial instruments (continued)

impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated profit and loss account.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

Page 27
 

 
CHAP (HOLDINGS) LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)


2.20
Financial instruments (continued)


For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Judgements made by the directors, in the application of these accounting policies that have significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are discussed below:
Long term contracts
Management review construction contracts on a regular basis to assess how each contract is progressing. There are key judgements made regarding the profit to be recognised and also in identifying any loss making contracts such that losses can be recognised immediately in the financial statements. In addition management are also required to assess the potential risks attributable to a specific ongoing contract such that adequate provisions are in place to address these risks. Regular meetings are held and jobs are reviewed by key management personnel, including directors, to ensure that the accounting for such contracts is reflective of commercial reality at any given point in time.
Work in progress
In respect of Homes division, site development costs are allocated on a unit by unit basis across specific sites based on overall projected margins. Given the nature of such assessments, there is an inherent degree of uncertainty when estimating the profitability of a site. A regular review of all sites takes place and the margins are amended where necessary. The group conducted reviews of the carrying value of its work in progress as part of the year-end process and no issues were identified. 


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£000
£000

Sale of goods
2,700
5,565

Rendering of services
6,133
4,644

Construction contract revenue
43,910
36,354

Investment property rentals
470
436

53,213
46,999


All turnover arose within the United Kingdom during the current and prior year.

Page 28
 

 
CHAP (HOLDINGS) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

5.


Operating profit

The operating profit is stated after charging:

2023
2022
£000
£000

Depreciation of tangible fixed assets
179
258

Amortisation of intangible fixed assets
7
7

Auditor's remuneration
40
36

Other operating lease rentals
11
6

Profit on sale of assets
(16)
(544)


6.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
2023
2022
£000
£000


Wages and salaries
6,690
5,591

Social security costs
677
608

Cost of defined contribution scheme
374
286

7,741
6,485


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



Group
Group
Company
Company
        2023
        2022
        2023
        2022
            No.
            No.
            No.
            No.









Management
7
7
3
3



Administration, selling and distribution
30
28
-
-



Production
109
111
-
-

146
146
3
3

Page 29
 

 
CHAP (HOLDINGS) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

7.


Directors' remuneration

2023
2022
£000
£000

Directors' emoluments
498
371

Group contributions to defined contribution pension schemes
34
34

532
405


During the year retirement benefits were accruing to 2 directors (2022 - 2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £248k (2022 - £150k).

The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £22k (2022 - £21k).


8.


Interest receivable

2023
2022
£000
£000


Other interest receivable
45
5

45
5


9.


Interest payable and similar expenses

2023
2022
£000
£000


Bank interest payable
175
249

Finance leases and hire purchase contracts
5
6

Other interest payable
60
60

240
315


10.


Other finance costs

2023
2022
£000
£000

Net interest on defined benefit pension scheme liability
(105)
(72)

(105)
(72)


Page 30
 

 
CHAP (HOLDINGS) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

11.


Taxation


2023
2022
£000
£000


Current tax

Total current tax

-
-

Deferred tax

Total deferred tax

-
-


Taxation on profit on ordinary activities
-
-

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 19% (2022 - 19%). The differences are explained below:

2023
2022
£000
£000


Profit on ordinary activities before tax
206
151


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
39
29

Effects of:


Fixed asset differences
29
25

Movement in deferred tax not recognised
(68)
(54)

Total tax charge for the year
-
-

Page 31
 

 
CHAP (HOLDINGS) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

12.


Intangible assets

Group





Software
 Goodwill
Total

£000
£000
£000



Cost


At 1 October 2022
37
653
690



At 30 September 2023

37
653
690



Amortisation


At 1 October 2022
15
653
668


Charge for the year on owned assets
7
-
7



At 30 September 2023

22
653
675



Net book value



At 30 September 2023
15
-
15



At 30 September 2022
22
-
22



Page 32
 

 
CHAP (HOLDINGS) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

13.


Tangible fixed assets

Group






Freehold property
Plant and machinery
Motor vehicles
Total

£000
£000
£000
£000



Cost or valuation


At 1 October 2022
3,856
370
660
4,886


Additions
-
278
62
340


Disposals
-
(21)
(24)
(45)



At 30 September 2023

3,856
627
698
5,181



Depreciation


At 1 October 2022
1,442
355
570
2,367


Charge for the year on owned assets
124
14
14
152


Charge for the year on financed assets
-
11
16
27


Disposals
-
(21)
(24)
(45)



At 30 September 2023

1,566
359
576
2,501



Net book value



At 30 September 2023
2,290
268
122
2,680



At 30 September 2022
2,414
15
90
2,519

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£000
£000



Plant and machinery
196
-

Motor vehicles
58
79

254
79

Page 33
 

 
CHAP (HOLDINGS) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

           13.Tangible fixed assets (continued)


Company






Freehold property
Plant and machinery
Motor vehicles
Total

£000
£000
£000
£000

Cost or valuation


At 1 October 2022
3,856
216
78
4,150



At 30 September 2023

3,856
216
78
4,150



Depreciation


At 1 October 2022
1,442
212
5
1,659


Charge for the year on owned assets
124
2
-
126


Charge for the year on financed assets
-
-
16
16



At 30 September 2023

1,566
214
21
1,801



Net book value



At 30 September 2023
2,290
2
57
2,349



At 30 September 2022
2,414
4
73
2,491






The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£000
£000



Motor vehicles
58
74

58
74

Page 34
 

 
CHAP (HOLDINGS) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

14.


Fixed asset investments

Company





Investments in subsidiary companies

£000



Cost or valuation


At 1 October 2022
317



At 30 September 2023
317





Subsidiary undertakings


The following were subsidiary undertakings of the company:

Name

Registered office

Class of shares

Holding

CHAP Group (Aberdeen) Limited
Enterprise Drive, Westhill, AB32 6TQ
Ordinary
100%
CHAP Quarries (Aberdeen) Limited
Enterprise Drive, Westhill, AB32 6TQ
Ordinary
100%
CHAP Homes Limited
Enterprise Drive, Westhill, AB32 6TQ
Ordinary
100%
CHAP Civil Engineering Limited
Enterprise Drive, Westhill, AB32 6TQ
Ordinary
100%

The aggregate of the share capital and reserves as at 30 September 2023 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£000
£000

CHAP Group (Aberdeen) Limited
2,773
236

CHAP Quarries (Aberdeen) Limited
-
-

CHAP Homes Limited
-
-

CHAP Civil Engineering Limited
-
-

Page 35
 

 
CHAP (HOLDINGS) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

15.


Investment property

Group and Company


Freehold investment property

£000



Valuation


At 1 October 2022
5,402



At 30 September 2023
5,402

The investment property was valued by J&E Shepherd in July 2019. The directors do not believe that there has been a significant change in the valuations determined in the 2019 valuations and having completed an assessment of the investment property at 30 September 2023, do not believe they are subject to any impairment.






16.


Stocks

Group
Group
2023
2022
£000
£000

Raw materials and consumables
78
64

Work in progress
7,451
8,131

Finished goods and goods for resale
145
145

7,674
8,340


Page 36
 

 
CHAP (HOLDINGS) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

17.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£000
£000
£000
£000



Trade debtors
7,094
3,938
15
40

Amounts owed by group undertakings
-
-
1,700
-

Other debtors
16
563
16
16

Prepayments and accrued income
549
535
153
119

Amounts recoverable on long term contracts
4,744
4,199
-
-

Deferred taxation
373
511
373
511

12,776
9,746
2,257
686


Included within trade debtors are amounts of £171k (2022 - £212k) relating to loans provided under a shared equity scheme where a percentage of the sales value of the property is offered to the customer as an incentive to assist with the purchase.
Amounts owed by group undertakings are unsecured, interest free and repayable on demand.


18.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£000
£000
£000
£000

Cash at bank and in hand
984
2,852
89
1,883

984
2,852
89
1,883



19.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£000
£000
£000
£000

Bank loans
963
1,988
-
-

Other loans
860
860
-
-

Trade creditors
4,267
4,274
91
107

Other taxation and social security
356
285
15
14

Obligations under finance lease and hire purchase contracts
67
30
15
15

Other creditors
23
23
9
7

Accruals and deferred income
10,444
7,443
331
210

16,980
14,903
461
353



Page 37
 

 
CHAP (HOLDINGS) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

20.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2023
2022
2023
2022
£000
£000
£000
£000

Bank loans
-
963
-
-

Obligations under finance leases and hire purchase contracts
167
56
41
56

167
1,019
41
56




21.


Loans


Analysis of the maturity of loans is given below:


Group
Group
2023
2022
£000
£000

Amounts falling due within one year

Bank loans
963
1,988

Other loans
860
860


Amounts falling due 1-2 years

Bank loans
-
963


1,823
3,811



22.


Security

The group's banking arrangement is part of a group facility. Amounts due to the bank are secured by cross guarantees from the parent company and subsidiaries and a floating charge over all the assets of each of these companies. At 30 September 2023, net group bank indebtedness amounted to £963k (2022 - £2,951k).
Other loans are currently repayable on demand and security has been provided for the loan against the development land included within work in progress. 

Page 38
 

 
CHAP (HOLDINGS) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

23.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
Company
Company
2023
2022
2023
2022
£000
£000
£000
£000

Within one year
67
30
15
15

Between 1-5 years
167
56
41
56

234
86
56
71

Obligations under finance lease and hire purchase contracts are secured against the assets to which they relate. 


24.


Financial instruments

Group
Group
2023
2022
£000
£000

Financial assets

Financial assets measured at amortised cost
12,838
11,337


Financial liabilities

Financial liabilities measured at amortised cost
(16,896)
(15,633)


Financial assets measured at amortised cost comprise cash, trade debtors, amounts receivable on long-term contracts and other debtors.


Financial liabilities measured at amortised cost comprise bank loans, other loans, trade creditors, other creditors and accruals.

Page 39
 

 
CHAP (HOLDINGS) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

25.


Deferred taxation


Group



2023
2022


£000

£000






At beginning of year
511
1,001


Utilised in year
(138)
(490)



At end of year
373
511

Company


2023
2022


£000

£000






At beginning of year
511
1,001


Utilised in year
(138)
(490)



At end of year
373
511

The deferred tax balance is made up as follows:

Group
Group
Company
Company
2023
2022
2023
2022
£000
£000
£000
£000

Pension liability
373
511
373
511

373
511
373
511




26.


Provisions


Group



Reinstatement provision

£000





At 1 October 2022
348


Charged to profit or loss
(348)



At 30 September 2023
-

Page 40
 

 
CHAP (HOLDINGS) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

27.


Share capital

2023
2022
£000
£000
Allotted, called up and fully paid



1,938,850 (2022 - 1,938,850) Ordinary shares of £0.50 each
969
969

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company.



28.


Reserves

Share premium account

The share premium reserve represent the amounts paid excess of the nominal value for the parent company's share capital.

Capital redemption reserve

The capital redemption reserve represents ordinary shares repurchased by the parent company.

Treasury shares

Treasury shares are those which the parent company has bought back from shareholders and holds in its own treasury. As of 30 September 2023, the parent company holds 164,302 (2022 - 32,750) of its own ordinary shares of £0.50 each as treasury shares shown within reserves.

Profit and loss account

The profit and loss account represents cumulative profits and losses net of dividends and other adjustments. 

Page 41
 

 
CHAP (HOLDINGS) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

29.


Pension commitments

The Group operates a Defined benefit pension scheme.

CHAP (Holdings) Limited operates a defined benefit pension scheme which was set up on 1 April 1976. The scheme is closed to new entrants and the link to future salary accrual has been broken. The assets of the scheme are totally separate from those of the company and are invested in financial institutions.
The FRS 102 valuation of the parent company Scheme was assessed as at 30 September 2023 by an independent qualified actuary in accordance with FRS 102. As required by FRS 102, the defined benefit liabilities have been measured using the projected unit method.



Reconciliation of present value of plan liabilities:


2023
2022
£000
£000

Reconciliation of present value of plan liabilities


At the beginning of the year
10,130
13,520

Interest cost
537
243

Actuarial gains/(losses)
(524)
(2,840)

Benefits paid
(905)
(793)

At the end of the year
9,238
10,130



Reconciliation of present value of plan assets:


2023
2022
£000
£000



At the beginning of the year
8,088
9,515

Interest income
432
171

Actuarial gains/(losses)
(144)
(1,080)

Contributions
275
275

Benefits paid
(905)
(793)

At the end of the year
7,746
8,088

Page 42
 

 
CHAP (HOLDINGS) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
 
29.Pension commitments (continued)


Composition of plan assets:


2023
2022
£000
£000



Equities
3,233
4,037

Bonds
2,903
2,093

Diversified Growth
253
772

Property
759
569

Insured pensions
463
515

Cash
135
102

Total plan assets
7,746
8,088

2023
2022
£000
£000


Fair value of plan assets
7,746
8,088

Present value of plan liabilities
(9,238)
(10,130)

Net pension scheme liability
(1,492)
(2,042)


The amounts recognised in profit or loss are as follows:

2023
2022
£000
£000



Net interest on defined benefit liability
(105)
(72)

Total
(105)
(72)


2023
2022
£000
£000

Analysis of actuarial loss recognised in Other Comprehensive Income


Actual return less interest income included in net interest income
(144)
(1,080)

Experience gains and losses arising on the scheme liabilities
(137)
(361)

Changes in assumptions underlying the present value of the scheme liabilities
661
3,201

380
1,760

Page 43
 

 
CHAP (HOLDINGS) LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
 
29.Pension commitments (continued)


Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

2023
2022
%
%
Discount rate


3.233

5.55
 
Retail price inflation


3.5

3.80
 
Consumer price inflation


2.7

3.10
 
Rate of inflation-linked revaluation of pensions in deferment


2.25

2.45
 
Rate of inflation-linked pensions in payment increases


3.05

3.30
 



 
- for a male aged 65 now


21.9

21.1
 
- at 65 for a male aged 45 now


23.5

22.1
 
- for a female aged 65 now


24.6

23.5
 
- at 65 for a female member aged 45 now


26.3

24.7
 






30.


Commitments under operating leases

At 30 September 2023, the group and the parent company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2023
2022
2023
2022
£000
£000
£000
£000

Not later than 1 year
12
85
12
12

Later than 1 year and not later than 5 years
18
12
18
30

30
97
30
42


31.


Related party transactions

During the year the group made purchases from Steph Craigie Kitchens & Bathrooms Limited, totalling £119k (2022 - £169k). The company is owned by the spouse of a member of key management personnel. Amounts were outstanding at the year-end of £nil (2022 - £nil).


32.


Controlling party

The parent company was under the control of the directors during the current and prior periods.

Page 44