Caseware UK (AP4) 2022.0.179 2022.0.179 2023-09-302023-09-30truefalsetruetruetruetruetruetruefalsefalse2022-10-01The principal activities of the company are that of building and civil engineering contracting and property development.145145 SC086917 2022-10-01 2023-09-30 SC086917 2021-10-01 2022-09-30 SC086917 2023-09-30 SC086917 2022-09-30 SC086917 2021-10-01 SC086917 c:Director1 2022-10-01 2023-09-30 SC086917 c:Director2 2022-10-01 2023-09-30 SC086917 c:Director3 2022-10-01 2023-09-30 SC086917 c:Director3 2023-09-30 SC086917 c:Director4 2022-10-01 2023-09-30 SC086917 c:Director5 2022-10-01 2023-09-30 SC086917 c:Director6 2022-10-01 2023-09-30 SC086917 c:Director7 2022-10-01 2023-09-30 SC086917 c:Director7 2023-09-30 SC086917 c:RegisteredOffice 2022-10-01 2023-09-30 SC086917 d:PlantMachinery 2022-10-01 2023-09-30 SC086917 d:PlantMachinery 2023-09-30 SC086917 d:PlantMachinery 2022-09-30 SC086917 d:PlantMachinery d:OwnedOrFreeholdAssets 2022-10-01 2023-09-30 SC086917 d:PlantMachinery d:LeasedAssetsHeldAsLessee 2022-10-01 2023-09-30 SC086917 d:MotorVehicles 2022-10-01 2023-09-30 SC086917 d:MotorVehicles 2023-09-30 SC086917 d:MotorVehicles 2022-09-30 SC086917 d:MotorVehicles d:OwnedOrFreeholdAssets 2022-10-01 2023-09-30 SC086917 d:MotorVehicles d:LeasedAssetsHeldAsLessee 2022-10-01 2023-09-30 SC086917 d:OtherPropertyPlantEquipment 2022-10-01 2023-09-30 SC086917 d:OwnedOrFreeholdAssets 2022-10-01 2023-09-30 SC086917 d:LeasedAssetsHeldAsLessee 2022-10-01 2023-09-30 SC086917 d:Goodwill 2023-09-30 SC086917 d:Goodwill 2022-09-30 SC086917 d:CurrentFinancialInstruments 2022-10-01 2023-09-30 SC086917 d:CurrentFinancialInstruments 2023-09-30 SC086917 d:CurrentFinancialInstruments 2022-09-30 SC086917 d:Non-currentFinancialInstruments 2023-09-30 SC086917 d:Non-currentFinancialInstruments 2022-09-30 SC086917 d:CurrentFinancialInstruments d:WithinOneYear 2023-09-30 SC086917 d:CurrentFinancialInstruments d:WithinOneYear 2022-09-30 SC086917 d:Non-currentFinancialInstruments d:AfterOneYear 2023-09-30 SC086917 d:Non-currentFinancialInstruments d:AfterOneYear 2022-09-30 SC086917 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2023-09-30 SC086917 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2022-09-30 SC086917 d:ReportableOperatingSegment1 2022-10-01 2023-09-30 SC086917 d:ReportableOperatingSegment1 2021-10-01 2022-09-30 SC086917 d:ReportableOperatingSegment2 2022-10-01 2023-09-30 SC086917 d:ReportableOperatingSegment2 2021-10-01 2022-09-30 SC086917 d:ReportableOperatingSegment3 2022-10-01 2023-09-30 SC086917 d:ReportableOperatingSegment3 2021-10-01 2022-09-30 SC086917 d:ShareCapital 2023-09-30 SC086917 d:ShareCapital 2022-09-30 SC086917 d:ShareCapital 2021-10-01 SC086917 d:SharePremium 2023-09-30 SC086917 d:SharePremium 2022-09-30 SC086917 d:SharePremium 2021-10-01 SC086917 d:RetainedEarningsAccumulatedLosses 2022-10-01 2023-09-30 SC086917 d:RetainedEarningsAccumulatedLosses 2023-09-30 SC086917 d:RetainedEarningsAccumulatedLosses 2021-10-01 2022-09-30 SC086917 d:RetainedEarningsAccumulatedLosses 2022-09-30 SC086917 d:RetainedEarningsAccumulatedLosses 2021-10-01 SC086917 d:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2022-10-01 2023-09-30 SC086917 d:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2023-09-30 SC086917 d:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2022-09-30 SC086917 c:OrdinaryShareClass1 2022-10-01 2023-09-30 SC086917 c:OrdinaryShareClass1 2023-09-30 SC086917 c:OrdinaryShareClass1 2022-09-30 SC086917 c:FRS102 2022-10-01 2023-09-30 SC086917 c:Audited 2022-10-01 2023-09-30 SC086917 c:FullAccounts 2022-10-01 2023-09-30 SC086917 c:PrivateLimitedCompanyLtd 2022-10-01 2023-09-30 SC086917 d:WithinOneYear 2023-09-30 SC086917 d:WithinOneYear 2022-09-30 SC086917 d:BetweenOneFiveYears 2023-09-30 SC086917 d:BetweenOneFiveYears 2022-09-30 SC086917 d:HirePurchaseContracts d:WithinOneYear 2023-09-30 SC086917 d:HirePurchaseContracts d:WithinOneYear 2022-09-30 SC086917 d:HirePurchaseContracts d:BetweenOneFiveYears 2023-09-30 SC086917 d:HirePurchaseContracts d:BetweenOneFiveYears 2022-09-30 SC086917 6 2022-10-01 2023-09-30 SC086917 d:PlantMachinery d:LeasedAssetsHeldAsLessee 2023-09-30 SC086917 d:PlantMachinery d:LeasedAssetsHeldAsLessee 2022-09-30 SC086917 d:MotorVehicles d:LeasedAssetsHeldAsLessee 2023-09-30 SC086917 d:MotorVehicles d:LeasedAssetsHeldAsLessee 2022-09-30 SC086917 d:LeasedAssetsHeldAsLessee 2023-09-30 SC086917 d:LeasedAssetsHeldAsLessee 2022-09-30 SC086917 e:PoundSterling 2022-10-01 2023-09-30 iso4217:GBP xbrli:shares xbrli:pure
Registered number: SC086917













CHAP GROUP (ABERDEEN) LTD






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

 
CHAP GROUP (ABERDEEN) LTD
 

COMPANY INFORMATION


Directors
H Craigie 
S L Gee 
R S Liddell (resigned 18 November 2022)
M E Young 
F J Taylor 
A McNair 
R Stott (appointed 9 January 2023)




Registered number
SC086917



Registered office
Enterprise Drive
Westhill

Aberdeenshire

AB32 6TQ




Independent auditor
Anderson Anderson & Brown Audit LLP

Kingshill View

Prime Four Business Park

Kingswells

Aberdeen

AB15 8PU





 
CHAP GROUP (ABERDEEN) LTD
 

CONTENTS



Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Notes to the financial statements
13 - 26

 
CHAP GROUP (ABERDEEN) LTD
 

STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023

Principal activities
 
The principal activities of the company are that of building and civil engineering contracting and property development.
There have not been any significant changes in the company’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 company’s activities in the next year.

Business review
 
Turnover for the year increased by 13% to £53m, with an operating profit of £474k against £379k for the prior year.  The increase in turnover is attributable to the Construction division seeing a continued marked increase in activity.  Gross margins remain strong and show an increase from the prior year.
In 2021 the CHAP 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 Group (Aberdeen) Ltd 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 GROUP (ABERDEEN) LTD
 

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

Directors' statement of compliance with duty to promote the success of the company
 
The company 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 company 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 decisions on the long-term;
The interests of the company's employees;
The need to foster the company's business relationships with suppliers, customers and others;
The impact of the company's operations on the community and environment;
The desirability of the company maintaining a reputation for high standards of business conduct; and
The need to act fairly between shareholders of the company.

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, and 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 GROUP (ABERDEEN) LTD
 
 
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 £236k (2022 - £77k).

During the year dividends no dividends were declared (2022 - £nil).

Directors

The directors who served during the year were:

H Craigie 
S L Gee 
R S Liddell (resigned 18 November 2022)
M E Young 
F J Taylor 
A McNair 
R Stott (appointed 9 January 2023)

Engagement with suppliers, customers and others

The company's 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 company. We pay our suppliers on time, and maintain close relationships with them, providing support where it may be required.

Greenhouse gas emissions, energy consumption and energy efficiency action

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 company’s operating activities are included. During this period the company’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)
6.469
8.556


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 GROUP (ABERDEEN) LTD
 

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 company based on the value used for financial reporting 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'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'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 GROUP (ABERDEEN) LTD
 

DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2023

The directors are responsible for preparing the Strategic report, the Directors' report 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 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 of the profit or loss of the company for that period.

 In preparing these financial statements, the directors are required to:

select suitable accounting policies for the company's financial statements and then apply them consistently;

make judgments 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 company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 5

 
CHAP GROUP (ABERDEEN) LTD
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHAP GROUP (ABERDEEN) LTD
 

Opinion


We have audited the financial statements of CHAP Group (Aberdeen) Ltd (the 'company') for the year ended 30 September 2023, which comprise the Statement of comprehensive income, the Balance sheet, the 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 company's affairs as at 30 September 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


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 company 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 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 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.


Page 6

 
CHAP GROUP (ABERDEEN) LTD

 

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHAP GROUP (ABERDEEN) LTD (CONTINUED)

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 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 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


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 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 company or to cease operations, or have no realistic alternative but to do so.


Page 7

 
CHAP GROUP (ABERDEEN) LTD

 

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHAP GROUP (ABERDEEN) LTD (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 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 company 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, Taxation legislation and the Companies Act 2006.

We identified the greatest risk of material impact on the financial statements from irregularities including fraud to be:

Management override of controls to manipulate the company's key performance indicators to meet targets;
Timing and completeness of revenue recognition, specifically including managements estimate of amount recoverable on long term contracts;
Management judgement applied in calculating provisions; and
Compliance with relevant laws and regulations which directly impact the financial statements and those that the company needs to comply with for the purpose of trading.

Our audit procedures to respond to these risks included:

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 litigation, 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 GROUP (ABERDEEN) LTD

 

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHAP GROUP (ABERDEEN) LTD (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
Aberdeen
AB15 8PU

22 February 2024
Page 9

 
CHAP GROUP (ABERDEEN) LTD
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2023
2022
Note
£000
£000

  

Turnover
 4 
52,743
46,554

Cost of sales
  
(48,230)
(43,016)

Gross profit
  
4,513
3,538

Administrative expenses
  
(4,039)
(3,159)

Operating profit
 5 
474
379

Interest payable and similar expenses
 8 
(238)
(302)

Profit before tax
  
236
77

Tax on profit
 9 
-
-

Profit for the financial year
  
236
77

There was no other comprehensive income for 2023 (2022 - £nil).

The notes on pages 13 to 26 form part of these financial statements.
Page 10

 
CHAP GROUP (ABERDEEN) LTD

REGISTERED NUMBER:SC086917

BALANCE SHEET
AS AT 30 SEPTEMBER 2023

2023
2022
Note
£000
£000

Fixed assets
  

Tangible assets
 11 
330
28

  
330
28

Current assets
  

Stocks
 12 
7,674
8,340

Debtors: amounts falling due within one year
 13 
12,219
9,055

Cash at bank and in hand
 14 
895
969

  
20,788
18,364

Creditors: amounts falling due within one year
 15 
(18,219)
(14,544)

Net current assets
  
 
 
2,569
 
 
3,820

Total assets less current liabilities
  
2,899
3,848

Creditors: amounts falling due after more than one year
 17 
(126)
(963)

Provisions for liabilities
  

Other provisions
 20 
-
(348)

  
 
 
-
 
 
(348)

Net assets
  
2,773
2,537


Capital and reserves
  

Called up share capital 
 21 
100
100

Share premium account
  
216
216

Profit and loss account
  
2,457
2,221

  
2,773
2,537


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 13 to 26 form part of these financial statements.
Page 11

 
CHAP GROUP (ABERDEEN) LTD
 

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


Called up share capital
Share premium account
Profit and loss account
Total equity

£000
£000
£000
£000


At 1 October 2021
100
216
2,144
2,460



Profit for the year
-
-
77
77



At 1 October 2022
100
216
2,221
2,537



Profit for the year
-
-
236
236


At 30 September 2023
100
216
2,457
2,773


The notes on pages 13 to 26 form part of these financial statements.
Page 12

 
CHAP GROUP (ABERDEEN) LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

1.


General information

CHAP Group (Aberdeen) Limited (the `company`) is a limited liability company incorporated in Scotland. The registered office is Enterprise Drive, Westhill Industrial Estate, Westhill, Aberdeenshire, AB32 6TQ.
The principal activities of the company are that of building & civil engineering contracting and property development.

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 management to exercise judgment in applying the company's accounting policies (see note 3).

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of CHAP (Holdings) Limited as at 30 September 2023 and these financial statements may be obtained from Companies House, Crown Way, Cardiff. CF14 3UZ.

 
2.3

Going concern

The directors, having made due and careful enquiry, are of the opinion that the company 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 company’s order book and forecast cashflows to determine the company’s financial headroom.  
The directors remain pleased with the ongoing commitment of the CHAP group to its debt reduction plans as well as its current strong performance across committed and proposed projects. The CHAP 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.

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CHAP GROUP (ABERDEEN) LTD
 

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 Company 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 is 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 company as lessee

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

 
2.6

Leased assets: the company as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
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.

  
2.9

Pensions

The company contributes to a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company 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 company in independently administered funds.

Page 14

 
CHAP GROUP (ABERDEEN) LTD
 

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

2.Accounting policies (continued)

 
2.10

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.11

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.

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:

Plant and equipment
-
2-10 years
Motor vehicles
-
4-5 years
Other fixed assets
-
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.

 
2.12

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.13

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.

 
2.14

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 15

 
CHAP GROUP (ABERDEEN) LTD
 

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

2.Accounting policies (continued)

 
2.15

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.

 
2.16

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.

 
2.17

Provisions for liabilities

Provisions are made where an event has taken place that gives the company 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 company 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.

 
2.18

Financial instruments

The company 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 company's Balance sheet when the company 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 company'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 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.

Page 16

 
CHAP GROUP (ABERDEEN) LTD
 

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

2.Accounting policies (continued)


2.18
Financial instruments (continued)

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 company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans 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 company 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 company 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 company's contractual obligations expire or are discharged or cancelled.

Page 17

 
CHAP GROUP (ABERDEEN) LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Judgements made by directors in the application of these accounting policies that have significant effect on the financial statements and estimates wit ha 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 company 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
6,862

Rendering of services
6,133
4,644

Construction contract revenue
43,910
35,048

52,743
46,554


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


5.


Operating profit

The operating profit is stated after charging:

2023
2022
£000
£000

Depreciation of tangible fixed assets
38
119

Other operating lease rentals
102
129

Share based payment
-
26

Page 18

 
CHAP GROUP (ABERDEEN) LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

6.


Employees

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


2023
2022
£000
£000

Wages and salaries
6,356
5,332

Social security costs
649
574

Cost of defined contribution scheme
350
253

7,355
6,159


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


        2023
        2022
            No.
            No.







Management
6
6



Administration
30
28



Construction and trades
109
111

145
145


7.


Directors' remuneration

2023
2022
£000
£000

Directors' emoluments
506
351

Company contributions to defined contribution pension schemes
58
34

564
385


During the year retirement benefits were accruing to 4 directors (2022 - 4) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £127k (2022 - £120k).

The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £12k (2022 - £11k).

Page 19

 
CHAP GROUP (ABERDEEN) LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

8.


Interest payable and similar expenses

2023
2022
£000
£000


Bank interest payable
175
236

Finance leases and hire purchase contracts
3
6

Other interest payable
60
60

238
302


9.


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
236
77


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
45
15

Effects of:


Deferred tax not recognised
(45)
(15)

Total tax charge for the year
-
-

Page 20

 
CHAP GROUP (ABERDEEN) LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

10.


Intangible assets




Goodwill

£000



Cost


At 1 October 2022
653



At 30 September 2023

653



Amortisation


At 1 October 2022
653



At 30 September 2023

653



Net book value



At 30 September 2023
-



At 30 September 2022
-



Page 21

 
CHAP GROUP (ABERDEEN) LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

11.


Tangible fixed assets





Plant and machinery
Motor vehicles
Total

£000
£000
£000



Cost or valuation


At 1 October 2022
154
581
735


Additions
278
62
340


Disposals
(21)
(24)
(45)



At 30 September 2023

411
619
1,030



Depreciation


At 1 October 2022
143
564
707


Charge for the year on owned assets
13
14
27


Charge for the year on financed assets
11
-
11


Disposals
(21)
(24)
(45)



At 30 September 2023

146
554
700



Net book value



At 30 September 2023
265
65
330



At 30 September 2022
11
17
28

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
-
5

196
5


12.


Stocks

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 22

 
CHAP GROUP (ABERDEEN) LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

13.


Debtors

2023
2022
£000
£000


Trade debtors
7,080
3,895

Amounts owed by group undertakings
-
3

Other debtors
-
547

Prepayments and accrued income
395
411

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

12,219
9,055


Included within trade debtors are amounts of £171k (2022 - £212k) relating to loans provided under a share 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.


14.


Cash and cash equivalents

2023
2022
£000
£000

Cash at bank and in hand
895
969

895
969



15.


Creditors: Amounts falling due within one year

2023
2022
£000
£000

Bank loans
963
1,988

Other loans
860
860

Trade creditors
4,176
4,167

Amounts owed to group undertakings
1,700
-

Other taxation and social security
341
271

Obligations under finance lease and hire purchase contracts
52
15

Other creditors
14
15

Accruals and deferred income
10,113
7,228

18,219
14,544


Amounts owed to group undertakings relate are unsecured, interest free and repayable on demand.

Page 23

 
CHAP GROUP (ABERDEEN) LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

16.


Security

The company'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 development land included within work in progress.


17.


Creditors: Amounts falling due after more than one year

2023
2022
£000
£000

Bank loans
-
963

Obligations under finance leases and hire purchase contracts
126
-

126
963



18.


Loans


Analysis of the maturity of loans is given below:


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


Page 24

 
CHAP GROUP (ABERDEEN) LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

19.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2023
2022
£000
£000


Within one year
52
10

Between 1-5 years
126
5

178
15

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


20.


Provisions





Reinstatement provision

£000





At 1 October 2022
348


Charged to profit or loss
(348)



At 30 September 2023
-


21.


Share capital

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



100,002 (2022 - 100,002) Ordinary Share shares of £1.00 each
100
100



22.


Commitments under operating leases

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

2023
2022
£000
£000


Not later than 1 year
-
85

Later than 1 year and not later than 5 years
-
12

-
97

Page 25

 
CHAP GROUP (ABERDEEN) LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

23.


Related party transactions

During the year the company made purchases from Steph Craigie Kitchens & Bathrooms Limited of £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).


24.


Controlling party

The company is a subsidiary undertaking of CHAP (Holdings) Limited. The ultimate controlling company is CHAP (Holdings) Limited, Enterprise Drive, Westhill Industrial Estate, Westhill, Aberdeenshire, AB32 6TQ. The consolidated financial statements of this group are available to the public and may be obtained from the registered office.
Page 26