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Registered number: 06740657













 
CHILLING SERVICES LIMITED (FORMERLY PEARCE GROUP LIMITED)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023




































Page Kirk LLP
Chartered Accountants and Statutory Auditors
Sherwood House
7 Gregory Boulevard
Nottingham
NG7 6LB


 
CHILLING SERVICES LIMITED (FORMERLY PEARCE GROUP LIMITED)
 

 
COMPANY INFORMATION


Directors
Mrs E A Snaith 
Mr P W Snaith 




Company secretary
Mrs E A Snaith



Registered number
06740657



Registered office
Castle Court
Duke Street

New Basford

Nottingham

NG7 7JN




Independent auditors
Page Kirk LLP
Chartered Accountants and Statutory Auditors

Sherwood House

7 Gregory Boulevard

Nottingham

NG7 6LB




Bankers
HSBC
26 Clumber Street

Nottingham

NG1 3GA






 
CHILLING SERVICES LIMITED (FORMERLY PEARCE GROUP LIMITED)
 


CONTENTS



Page
Strategic Report
1
Directors' Report
2
Directors' Responsibilities Statement
3
Independent Auditors' Report
4 - 7
Profit and Loss Account
8
Balance Sheet
9 - 10
Statement of Changes in Equity
11 - 12
Statement of Cash Flows
13
Notes to the Financial Statements
14 - 25



 
CHILLING SERVICES LIMITED (FORMERLY PEARCE GROUP LIMITED)
 

 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2023

Introduction
 
The directors present their strategic report for the year ended 31 May 2023.

Principal activity

The principal activity of the company is that of renting commercial property.

Fair review of the business
 
On 26 August 2022 the subsidiaries of Pearce Group Ltd were acquired by Pearce Global Ltd, a wholly owned subsidiary of Pearce Global Holdings Ltd, as part of a management buy-out. 
Following this reorganisation the principal activity of the company changed to that of renting commercial property. This has required a reclassification of Tangible assets to Investment property and the reversal of depreciation previously charged to profit and a change to the treatment of earlier Fair Value adjustments.

Principal risks and uncertainties
 
The investment property is let to a tenant under a long term lease agreement at a fixed rental value and, given the tenant’s current level of performance and future prospects, the directors consider credit and cash flow risk to be low.
There are no identifiable repair or maintenance issues and no planned refurbishment costs currently.


This report was approved by the board on 29 February 2024 and signed on its behalf.



................................................
Mrs E A Snaith
Director

Page 1


 
CHILLING SERVICES LIMITED (FORMERLY PEARCE GROUP LIMITED)
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2023

The directors present their report and the financial statements for the year ended 31 May 2023.

Results and dividends

The profit for the year, after taxation, amounted to £1,431,560 (2022 - £1,420). Dividends were £23,527 (2022 - £nil).

Directors

The directors who served during the year were:

Mrs E A Snaith 
Mr P W Snaith 
Mr H Everington (resigned 26 August 2022)

Objectives and policies

The Directors regularly monitor the condition of the property and ensure that it meets all required health and safety requirements. Periodic inspections by insurers are carried out to confirm that the necessary policies are in place and appropriate for the company’s needs.

Price risk, credit risk, liquidity risk and cash flow risk

Please see Principal risks and uncertainties in the Strategic Report.

Disclosure of information to auditors

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 auditors are 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 auditors are aware of that information.

Reappointment of auditors

Page Kirk LLP have expressed their willingness to continue as auditors for the next financial year.
The address of the registered office is:
Castle Court
Duke Street
New Basford
Nottingham
NG7 7JN

This report was approved by the board on 29 February 2024 and signed on its behalf.
 





................................................
Mrs E A Snaith
Director

Page 2


 
CHILLING SERVICES LIMITED (FORMERLY PEARCE GROUP LIMITED)
 

 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 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 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;

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 3


 
CHILLING SERVICES LIMITED (FORMERLY PEARCE GROUP LIMITED)
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHILLING SERVICES LIMITED (FORMERLY PEARCE GROUP LIMITED)
 

Opinion


We have audited the financial statements of Chilling Services Limited (formerly Pearce Group Limited) (the 'Company') for the year ended 31 May 2023, which comprise the Profit and Loss Account, the Balance Sheet, the Statement of Cash Flows, 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 31 May 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 Auditors' 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.


Page 4


 
CHILLING SERVICES LIMITED (FORMERLY PEARCE GROUP LIMITED)
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHILLING SERVICES LIMITED (FORMERLY PEARCE GROUP LIMITED) (CONTINUED)

Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' Report thereon.  The directors are responsible for the other information contained within the Annual Report.  Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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 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 3, 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 5


 
CHILLING SERVICES LIMITED (FORMERLY PEARCE GROUP LIMITED)
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHILLING SERVICES LIMITED (FORMERLY PEARCE GROUP LIMITED) (CONTINUED)

Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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 the Companies Act 2006, taxation legislation and money laundering regulations.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management and the understatement of revenue. Our audit procedures to respond to these risks included:
• Enquiries of management about their own identification and assessment of the risks of irregularities.
• Sample testing on the posting of journals.
• Reviewing regulatory correspondence and professional fees.
• Detailed substantive testing on the completeness of income.


Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.


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 Auditors' Report.


Page 6


 
CHILLING SERVICES LIMITED (FORMERLY PEARCE GROUP LIMITED)
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHILLING SERVICES LIMITED (FORMERLY PEARCE GROUP 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 Auditors' 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.





John Wallis FCA (Senior Statutory Auditor)
  
for and on behalf of
Page Kirk LLP
 
Chartered Accountants and Statutory Auditors
  
Sherwood House
7 Gregory Boulevard
Nottingham
NG7 6LB

29 February 2024
Page 7


 
CHILLING SERVICES LIMITED (FORMERLY PEARCE GROUP LIMITED)
 

 
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MAY 2023

Year ended 31 May 2023
14 months ended 31 May 2022
Note
£
£

  

Administrative expenses
  
82,789
(80,695)

Other operating income
  
126,023
101,051

Fair value movements
  
452,652
-

Operating profit
  
661,464
20,356

Income from other fixed asset investments
  
909,246
-

Interest receivable and similar income
  
-
50

Interest payable and similar expenses
  
(5,573)
(18,986)

Profit before tax
  
1,565,137
1,420

Tax on profit
  
(133,577)
-

Profit for the financial year
  
1,431,560
1,420

The notes on pages 14 to 25 form part of these financial statements.

Page 8


 
CHILLING SERVICES LIMITED (FORMERLY PEARCE GROUP LIMITED)
REGISTERED NUMBER:06740657


BALANCE SHEET
AS AT 31 MAY 2023

2023
2023
2022
2022
Note
£
£
£
£

Fixed assets
  

Tangible assets
 10 
-
1,545,341

Investments
 11 
-
23,527

Investment property
  
1,600,000
-

  
1,600,000
1,568,868

Current assets
  

Debtors: amounts falling due within one year
 13 
123,677
206,756

Cash at bank and in hand
 14 
96,309
675

  
219,986
207,431

Creditors: amounts falling due within one year
 15 
(33,144)
(664,931)

Net current assets/(liabilities)
  
 
 
186,842
 
 
(457,500)

Total assets less current liabilities
  
1,786,842
1,111,368

Creditors: amounts falling due after more than one year
 16 
-
(364,016)

Provisions for liabilities
  

Deferred tax
  
(109,109)
-

  
 
 
(109,109)
 
 
-

Net assets
  
1,677,733
747,352


Capital and reserves
  

Called up share capital 
  
1,253
1,253

Revaluation reserve
  
-
455,583

Capital redemption reserve
  
343,543
-

Profit and loss account
  
1,332,937
290,516

  
1,677,733
747,352


Page 9


 
CHILLING SERVICES LIMITED (FORMERLY PEARCE GROUP LIMITED)
REGISTERED NUMBER:06740657

    
BALANCE SHEET (CONTINUED)
AS AT 31 MAY 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 29 February 2024.




................................................
Mrs E A Snaith
Director

The notes on pages 14 to 25 form part of these financial statements.

Page 10


 
CHILLING SERVICES LIMITED (FORMERLY PEARCE GROUP LIMITED)
 


STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023


Called up share capital
Fair value reserve
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£
£

At 1 June 2022
1,253
-
455,583
290,516
747,352



Profit for the year

-
-
-
1,431,560
1,431,560

Revaluation reserve transfer
-
-
22,069
(22,069)
-

Revaluation movement
-
-
(477,652)
-
(477,652)

Dividends: Equity capital
-
-
-
(23,527)
(23,527)

Fair value reserve transfer
-
343,543
-
(343,543)
-


At 31 May 2023
1,253
343,543
-
1,332,937
1,677,733


The notes on pages 14 to 25 form part of these financial statements.

Page 11


 
CHILLING SERVICES LIMITED (FORMERLY PEARCE GROUP LIMITED)
 


STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2022


Called up share capital
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£

At 1 April 2021
1,253
465,136
279,543
745,932



Profit for the period

-
-
1,420
1,420

Other movement in reserves
-
(9,553)
9,553
-


At 31 May 2022
1,253
455,583
290,516
747,352


The notes on pages 14 to 25 form part of these financial statements.

Page 12


 
CHILLING SERVICES LIMITED (FORMERLY PEARCE GROUP LIMITED)
 


STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2023

Year ended 31 May 2023
14 months ended 31 May 2022
£
£

Cash flows from operating activities

Profit for the financial year
1,431,560
1,420

Adjustments for:

Depreciation of tangible assets
(79,659)
29,330

Interest paid
5,573
18,986

Investment income received
(909,246)
(50)

Taxation charge
133,577
-

Decrease/(increase) in debtors
83,079
(53,842)

(Decrease)/increase in creditors
(611,707)
159,498

Fair value (gains)/losses recognised in P&L
(452,652)
-

Corporation tax received/(paid)
-
(4,492)

Net cash generated from operating activities

(399,475)
150,850


Cash flows from investing activities

Interest received
-
50

Dividends received
909,246
-

Net cash from investing activities

909,246
50

Cash flows from financing activities

Repayment of loans
(408,564)
(132,436)

Interest paid
(5,573)
(18,986)

Net cash used in financing activities
(414,137)
(151,422)

Net increase/(decrease) in cash and cash equivalents
95,634
(522)

Cash and cash equivalents at beginning of year
675
1,197

Cash and cash equivalents at the end of year
96,309
675


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
96,309
675

96,309
675


The notes on pages 14 to 25 form part of these financial statements.

Page 13


 
CHILLING SERVICES LIMITED (FORMERLY PEARCE GROUP LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

1.


General information

The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
Castle Court
Duke Street
New Basford
Nottingham
NG7 7JN

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 judgement in applying the Company's accounting policies.

The following principal accounting policies have been applied:

  
2.2

Going concern

After assessing the national and international economic outlook and the potential impacts on the commercial property market, the directors expect the company to have adequate resources and projected revenue streams to continue in operational existence for the foreseeable future and, therefore, continue to adopt the going concern basis in preparing the company's financial statements.

 
2.3

Interest income

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

 
2.4

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.

 
2.5

Borrowing costs

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

Page 14


 
CHILLING SERVICES LIMITED (FORMERLY PEARCE GROUP LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

2.Accounting policies (continued)

 
2.6

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 operates and generates 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.

 
2.7

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:

Freehold property
-
2%
straight line

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.

Page 15


 
CHILLING SERVICES LIMITED (FORMERLY PEARCE GROUP LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

2.Accounting policies (continued)

 
2.8

Revaluation of tangible fixed assets

Individual freehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

  
2.9

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

 
2.10

Investment property

Investment property is carried at fair value determined annually 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.

 
2.11

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.

 
2.12

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 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 Company's cash management.

 
2.13

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.

Page 16


 
CHILLING SERVICES LIMITED (FORMERLY PEARCE GROUP LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

2.Accounting policies (continued)

 
2.14

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.

 
2.15

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

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 Profit and Loss Account.

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.

 
2.16

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.


3.


Other operating income

Year ended 31 May 2023
14 months ended 31 May 2022
£
£

Rents receivable
126,023
101,051

126,023
101,051



4.


Auditors' remuneration

Year ended 31 May 2023
14 months ended 31 May 2022
£
£

Audit of financial statements
4,404
4,310
Page 17


 
CHILLING SERVICES LIMITED (FORMERLY PEARCE GROUP LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

5.


Employees



The Company has no employees other than the directors, who did not receive any remuneration (2022 - £NIL).


6.


Income from investments

2023
2022
£
£





Dividends received - unlisted investments
909,246
-



7.


Interest receivable

Year ended 31 May 2023
14 months ended 31 May 2022
£
£


Other interest receivable
-
50

-
50


8.


Interest payable and similar expenses

Year ended 31 May 2023
14 months ended 31 May 2022
£
£


Bank loan interest payable
5,571
18,968

Bank interest payable
2
18

5,573
18,986

Page 18


 
CHILLING SERVICES LIMITED (FORMERLY PEARCE GROUP LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

9.


Taxation


Year ended 31 May 2023
14 months ended 31 May 2022
£
£

Corporation tax


Current tax on profits for the year
24,468
-


24,468
-


Total current tax
24,468
-

Deferred tax


Origination and reversal of timing differences
109,109
-

Total deferred tax
109,109
-


Taxation on profit on ordinary activities
133,577
-

Factors affecting tax charge for the year/period

The tax assessed for the year/period is the same as (2022 - the same as) the standard rate of corporation tax in the UK of 20.0027% (2022 - 19%) as set out below:

Year ended 31 May 2023
14 months ended 31 May 2022
£
£


Profit on ordinary activities before tax
1,565,137
1,420


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 20.0027% (2022 - 19%)
313,070
270

Effects of:


Capital allowances for year/period in excess of depreciation
(16,185)
5,230

Fair value adjustment
(90,543)
-

Dividends
(181,874)
-

Origination and reversal of timing differences
109,109
-

Group relief
-
(5,500)

Total tax charge for the year/period
133,577
-

Page 19


 
CHILLING SERVICES LIMITED (FORMERLY PEARCE GROUP LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

10.


Tangible fixed assets





Freehold land and buildings

£





At 1 June 2022
1,625,000


Transfers between classes
(1,147,348)


Revaluations
(477,652)



At 31 May 2023

-





At 1 June 2022
79,659


Charge for the year on owned assets
(79,659)



At 31 May 2023

-



Net book value



At 31 May 2023
-



At 31 May 2022
1,545,341


11.


Fixed asset investments





Investments in subsidiary companies

£





At 1 June 2022
23,527


Disposals
(23,527)



At 31 May 2023
-




Page 20


 
CHILLING SERVICES LIMITED (FORMERLY PEARCE GROUP LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

12.


Investment property


Freehold investment property

£



Valuation


Fair value adjustment
452,652


Transfers between classes
1,147,348



At 31 May 2023
1,600,000

The freehold land and buildings have been transferred from tangible assets to investment property following Chilling Services Limited ceasing to be a member of the same group of companies as the company to which the property is leased.
The property valuation of £1.6m was made by the directors with reference to a valuation report dated 31 January 2022. The valuation report was based on an assessment of the condition of the property and the East Midlands commercial property market. 
The 31 January 2022 valuation report was prepared by an independent valuer holding a recognised and relevant professional qualification with experience of valuing commercial property in the East Midlands.






13.


Debtors

2023
2022
£
£


Trade debtors
-
32,269

Other debtors
123,677
174,487

123,677
206,756



14.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
96,309
675

96,309
675


Page 21


 
CHILLING SERVICES LIMITED (FORMERLY PEARCE GROUP LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

15.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank loans
-
44,548

Trade creditors
-
2,376

Corporation tax
24,468
-

Other creditors
-
606,131

Accruals and deferred income
8,676
11,876

33,144
664,931



16.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
-
364,016

-
364,016


Page 22


 
CHILLING SERVICES LIMITED (FORMERLY PEARCE GROUP LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

17.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Bank loans
-
44,548


-
44,548


Amounts falling due 2-5 years

Bank loans
-
147,200


-
147,200

Amounts falling due after more than 5 years

Bank loans
-
216,815

-
216,815

-
408,563


There were two bank loans repaid in full on 26 August 2022 with the following terms:
• Fixed rate of 3.76% which commenced in July 2017 and was repayable over 15 years. 
• Variable rate of 2.98% above base rate which commenced in July 2017 and was repayable over 15 years.
Charges
The following charges and guarantees were satisfied during the year:
• A first legal charge from HSBC dated 21 July 2017 over the freehold property.
• A debenture from HSBC dated 30 June 2017 over all assets and undertakings.
• A composite company unlimited multilateral guarantee from HSBC dated 30 June 2017.
• A group set-off arrangement.

Page 23


 
CHILLING SERVICES LIMITED (FORMERLY PEARCE GROUP LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

18.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets that are debt instruments measured at amortised cost
219,986
199,549

Financial liabilities measured at amortised cost
33,144
1,028,947



Items of income, expense, gains or losses
The total interest expense for financial liabilities not measured at fair value through profit or loss is £5,573 (2022 - £18,986).


19.


Deferred taxation




2023


£






Charge in year
(109,109)



At end of year
(109,109)

The deferred taxation balance is made up as follows:

2023
2022
£
£


Investment property fair value adjustment
(109,109)
-

(109,109)
-


20.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



501 (2022 - 501) Ordinary A shares of £1.00 each
501
501
501 (2022 - 501) Ordinary B shares of £1.00 each
501
501
251 (2022 - 251) Ordinary C shares of £1.00 each
251
251

1,253

1,253

Page 24


 
CHILLING SERVICES LIMITED (FORMERLY PEARCE GROUP LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

20.Share capital (continued)

Rights, preferences and restrictions
Each share carries equal voting rights. Dividend rights are variable.



21.


Control

Chilling Services Limited is controlled by Mr P W Snaith and Mrs E A Snaith.

 
Page 25