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REGISTERED NUMBER: SC343018 (Scotland)















Unaudited Financial Statements for the Year Ended 30 June 2023

for

Challenge Products Ltd

Challenge Products Ltd (Registered number: SC343018)






Contents of the Financial Statements
for the Year Ended 30 June 2023




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 4

Report of the Accountants 9

Challenge Products Ltd

Company Information
for the Year Ended 30 June 2023







DIRECTORS: A M Hay
Mrs C B Hay





SECRETARY: Stronachs Secretaries Limited





REGISTERED OFFICE: 28 Albyn Place
ABERDEEN
AB10 1YL





REGISTERED NUMBER: SC343018 (Scotland)





ACCOUNTANTS: Atholl Scott
55-57 West High Street
INVERURIE
AB51 3QQ

Challenge Products Ltd (Registered number: SC343018)

Balance Sheet
30 June 2023

30.6.23 30.6.22
Notes £    £   
FIXED ASSETS
Tangible assets 4 952,771 932,188

CURRENT ASSETS
Stocks 173,570 241,028
Debtors 5 671,692 599,431
Cash at bank and in hand 26,505 410
871,767 840,869
CREDITORS
Amounts falling due within one
year

6

(809,943

)

(984,236

)
NET CURRENT ASSETS/(LIABILITIES) 61,824 (143,367 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,014,595

788,821

CREDITORS
Amounts falling due after more
than one year

7

(250,193

)

(264,762

)

PROVISIONS FOR LIABILITIES 10 (138,389 ) (115,734 )
NET ASSETS 626,013 408,325

CAPITAL AND RESERVES
Called up share capital 2 2
Retained earnings 626,011 408,323
SHAREHOLDERS' FUNDS 626,013 408,325

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 June 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 June 2023 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:
(a)ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

Challenge Products Ltd (Registered number: SC343018)

Balance Sheet - continued
30 June 2023


The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 6 March 2024 and were signed on its behalf by:





Mrs C B Hay - Director


Challenge Products Ltd (Registered number: SC343018)

Notes to the Financial Statements
for the Year Ended 30 June 2023

1. STATUTORY INFORMATION

Challenge Products Ltd is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover
Turnover represents amounts receivable for goods sold and services rendered during the year, exclusive of value added tax.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Improvements to property - 10% on cost
Plant and machinery - 15% on reducing balance
Fixtures and fittings - 15% on reducing balance
Motor vehicles - 25% on reducing balance
Computer equipment - 33% on reducing balance

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Challenge Products Ltd (Registered number: SC343018)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2023

2. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 26 (2022 - 24 ) .

4. TANGIBLE FIXED ASSETS
Improvements
Freehold to Plant and
property property machinery
£    £    £   
COST
At 1 July 2022 263,192 74,246 1,625,442
Additions - - 188,665
Disposals - - (135,000 )
At 30 June 2023 263,192 74,246 1,679,107
DEPRECIATION
At 1 July 2022 - 66,125 1,000,544
Charge for year - 7,418 116,016
Eliminated on disposal - - (94,867 )
At 30 June 2023 - 73,543 1,021,693
NET BOOK VALUE
At 30 June 2023 263,192 703 657,414
At 30 June 2022 263,192 8,121 624,898

Challenge Products Ltd (Registered number: SC343018)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2023

4. TANGIBLE FIXED ASSETS - continued

Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
COST
At 1 July 2022 58,446 36,995 43,590 2,101,911
Additions - - 4,152 192,817
Disposals - - - (135,000 )
At 30 June 2023 58,446 36,995 47,742 2,159,728
DEPRECIATION
At 1 July 2022 38,981 23,582 40,491 1,169,723
Charge for year 2,922 3,353 2,392 132,101
Eliminated on disposal - - - (94,867 )
At 30 June 2023 41,903 26,935 42,883 1,206,957
NET BOOK VALUE
At 30 June 2023 16,543 10,060 4,859 952,771
At 30 June 2022 19,465 13,413 3,099 932,188

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and Motor
machinery vehicles Totals
£    £    £   
COST
At 1 July 2022 907,942 21,000 928,942
Additions 188,665 - 188,665
Disposals (60,000 ) - (60,000 )
At 30 June 2023 1,036,607 21,000 1,057,607
DEPRECIATION
At 1 July 2022 470,976 9,188 480,164
Charge for year 89,854 2,953 92,807
Eliminated on disposal (33,378 ) - (33,378 )
At 30 June 2023 527,452 12,141 539,593
NET BOOK VALUE
At 30 June 2023 509,155 8,859 518,014
At 30 June 2022 436,966 11,812 448,778

5. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.6.23 30.6.22
£    £   
Trade debtors 615,352 564,990
Tax recoverable 22,023 -
Prepayments 34,317 34,441
671,692 599,431

Challenge Products Ltd (Registered number: SC343018)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2023

6. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.6.23 30.6.22
£    £   
Bank loans and overdrafts 182,677 203,668
Hire purchase contracts (see note 8)
162,689

156,928
Trade creditors 211,676 318,853
Tax 26,444 39,052
PAYE 37,790 39,381
VAT 41,908 88,950
Other creditors 5,233 3,868
Net salary clearing account - 10,123
Directors' loan accounts 77,651 91,651
Accrued expenses 63,875 31,762
809,943 984,236

7. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
30.6.23 30.6.22
£    £   
Bank loans - 1-2 years 41,000 44,360
Bank loans - 2-5 years 22,166 74,444
Hire purchase contracts (see note 8)
187,027

145,958
250,193 264,762

8. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
30.6.23 30.6.22
£    £   
Net obligations repayable:
Within one year 162,689 156,928
Between one and five years 187,027 145,958
349,716 302,886

Non-cancellable operating leases
30.6.23 30.6.22
£    £   
Within one year 86,175 86,175

Challenge Products Ltd (Registered number: SC343018)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2023

9. SECURED DEBTS

The following secured debts are included within creditors:

30.6.23 30.6.22
£    £   
Bank overdrafts 141,677 168,305
Bank loans 104,166 154,167
245,843 322,472

Challenge Products Limited granted a floating charge over the assets of the company to Clydesdale Bank PLC on 17 August 2013.

Challenge Products Limited granted a charge and a standard security over the land at Plot 7, Barra Business Park, Mounie Drive, Oldmeldrum to Clydesdale Bank PLC on 12 April 2014.

10. PROVISIONS FOR LIABILITIES
30.6.23 30.6.22
£    £   
Deferred tax 138,389 115,734

Deferred
tax
£   
Balance at 1 July 2022 115,734
Provided during year 22,655
Balance at 30 June 2023 138,389

11. RELATED PARTY DISCLOSURES

During the year, total dividends of £72,000 (2022 - £20,500) were paid to the directors .

The loan from Mr & Mrs Hay (Directors) was decreased by £14,000 during the year to £77,651 (2022 £91,651). This loan is unsecured, interest free and repayable on demand.

12. ULTIMATE CONTROLLING PARTY

The company is controlled by its directors.

Challenge Products Ltd

Report of the Accountants to the Directors of
Challenge Products Ltd

The following reproduces the text of the report prepared for the directors in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Balance Sheet. Readers are cautioned that the Income Statement and certain other primary statements and the Report of the Directors are not required to be filed with the Registrar of Companies.

As described on the Balance Sheet you are responsible for the preparation of the financial statements for the year ended 30 June 2023 set out on pages three to twelve and you consider that the company is exempt from an audit.

In accordance with your instructions, we have compiled these unaudited financial statements in order to assist you to fulfil your statutory responsibilities, from the accounting records and information and explanations supplied to us.

This report is made solely to the Board of Directors of the company, as a body, in accordance with the terms of our engagement. Our work has been undertaken solely to prepare for your approval the financial statements of the company and state those matters that we have agreed to state to the Board of Directors of the company, as a body, in this report in accordance with the requirements of the Institute of Financial Accountants. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that the company has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities and financial position of the company. You consider that the company is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of the company. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.






Atholl Scott
55-57 West High Street
INVERURIE
AB51 3QQ


6 March 2024