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Registered number: 04330784










CMC CHESTERFIELD LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
CMC CHESTERFIELD LIMITED
 
 
COMPANY INFORMATION


Directors
R M Feltham 
M B Feltham 
C J Brightman 




Company secretary
R M Feltham



Registered number
04330784



Registered office
Derwent Buildings High Street
Clay Cross

Chesterfield

Derbyshire

S45 9DP




Independent auditors
Shorts
Chartered Accountants & Statutory Auditor

2 Ashgate Road

Chesterfield

S40 4AA




Bankers
Barclays Bank plc





 
CMC CHESTERFIELD LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditors' Report
 
5 - 8
Statement of Income and Retained Earnings
 
9
Balance Sheet
 
10
Notes to the Financial Statements
 
11 - 23


 
CMC CHESTERFIELD LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Business review
 
The financial statements show an increased turnover and a decrease in gross profit margin; these combined results together with controls on costs have resulted in a pre tax profit for the year of £1.05m, down on the previous year. The reduction in pre tax profits have in part been driven by fragile consumer confidence due to cost of living pressures and rising interest rates, which have led to reduced demand and an increase in available inventory throughout the market which in turn have impacted margin. The results were in line with expectations and was achieved through the hard work of our committed work force and the ongoing support of our stakeholders.

Financial key performance indicators
 
The directors monitor the Company's performance in a number of ways including key performance indicators.
Turnover has increased to £31.9m (2022: £29.3m)
Gross profit margin has decreased to 18.5% (2022: 19.7%) 
Pre-tax profit for the year was £1.05m (2022: £1.3m)
Turnover represents the value of goods supplied and delivered to customers in the year and measures sales growth or decline in value terms. The gross margin is calculated by dividing gross profit by turnover and measures the total profitability of product sales. Pre tax profit or loss is the profit or loss generated by the business from operations including finance income and finance costs before taxation. This indicator measures the overall profitability of the business for the year.

Principal risks and uncertainties
 
Consumer confidence
There is a risk whereby the Company's sales are reduced as its typical customers are adversely affected by a downturn in the economy. Efforts are made to ensure that our exposure to this threat is minimised by ensuring that the Company prices its stocks competitively and regularly reviews its product mix.
Brexit
The uncertainty around Brexit is a risk to the business. New bikes are imported from Europe, post Brexit the cost of new bikes could increase due to importation taxes etc, this coupled with reduced consumer confidence could impact sales. New bike sales represent 11% of the Company's total turnover. The Company continues to monitor the situation and works to develop the other revenue types within the business to help minimise the risk.
COVID-19
The world continues to recover from the effects of COVID-19 and is a source of uncertainty for the business. In 2020 the business developed a resilience plan to mitigate the potential impact, the plan included store closures both temporarily and permanently, an organisational restructure and a full review of the cost base. The business traded ahead of plan in 2020, 2021, 2022, 2023 and has continued to do so into 2024. Performance is regularly reviewed against the turnaround plan with action being taken to improve results where necessary or where additional opportunities arise.
Insurance risks
The Company insures its business assets against insurable risks as it deems appropriate.
 
Page 1

 
CMC CHESTERFIELD LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


Interest rates
The business would be adversely affected by a large rise in interest rates as the Company currently has bank borrowings used to finance the business. The Company is confident that it will continue to operate comfortably within the covenants required by the bank and continues to repay the financing in accordance with the banking agreement.
Going concern
At 31 December 2023 the Company had net current assets amounting to £678,118 (2022: £68,269). This has improved year on year as a result of the Company reporting a profit before tax for the year ended 31 December 2023 of £1,0554,382 (2022: £1,306,916).
The directors have prepared budgets for the next 12 months, based upon their expectation of realistic sales volume levels which show that the Company will continue to trade profitability and enable it to pay its debts as they fall due. In addition, should additional funding become necessary in the future then the directors are confident that this can be secured at the appropriate levels.
Considering these expected future trading results and following receipt of confirmation from all of the ongoing key stakeholders of their continued support at the required levels, the directors have prepared the accounts on a going concern basis.
 


This report was approved by the board on 2 August 2024 and signed on its behalf.



C J Brightman
Director

Page 2

 
CMC CHESTERFIELD LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Results and dividends

The profit for the year, after taxation, amounted to £796,728 (2022 - £1,355,032).

No dividends were paid during the year. 

Directors

The directors who served during the year were:

R M Feltham 
M B Feltham 
C J Brightman 

Directors' responsibilities statement

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;

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.

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.

Page 3

 
CMC CHESTERFIELD LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Auditors

The auditorsShortswill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 2 August 2024 and signed on its behalf.
 





C J Brightman
Director

Page 4

 
CMC CHESTERFIELD LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CMC CHESTERFIELD LIMITED
 

Opinion


We have audited the financial statements of CMC Chesterfield Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Income and Retained Earnings, the Balance Sheet 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 December 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 5

 
CMC CHESTERFIELD LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CMC CHESTERFIELD 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 ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the 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 6

 
CMC CHESTERFIELD LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CMC CHESTERFIELD 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:
 
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities,
including fraud and non-compliance with laws and regulations, was as follows:
• the engagement team collectively had the appropriate competence, capabilities and skills to identify or
 recognise non-compliance with applicable laws and regulations;
• through discussions with the directors and other management and from our commercial knowledge and
 experience of the sectors that the Company operates in, we identified the laws and regulations 
 applicable to the Company; and 
• focusing on the specific laws and regulations which we considered may have a direct material effect on
 the financial statements or the operations of the Company, we assessed the extent of compliance with
 those laws and regulations identified above through making enquiries of management and inspecting
 relevant correspondence.
We assessed the susceptibility of the Company’s financial statements to material misstatement, including
obtaining an understanding of how fraud might occur, by:
• making enquiries of management as to where they considered there was susceptibility to fraud, their
 knowledge of actual, suspected and alleged fraud; and
• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and
 regulations.
To address the risk of fraud through management bias and override of controls, we:
• performed analytical procedures to identify any unusual or unexpected relationships;
• considered journal entries to identify unusual transactions;
• assessed whether judgements and assumptions made in determining the accounting estimates were
 indicative of potential bias; and
• investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures
which included, but were not limited to:
• agreeing financial statement disclosures to underlying supporting documentation;
• reading the minutes of those charged with governance;
• enquiring of management as to actual and potential litigation and claims; and
• reviewing any correspondence with HMRC, relevant regulators and the Company's legal advisors.
 
Page 7

 
CMC CHESTERFIELD LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CMC CHESTERFIELD LIMITED (CONTINUED)



There are inherent limitations in our audit procedures described above. The more removed that laws and
regulations are from financial transactions, the less likely it is that we would become aware of non-compliance.
Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they
may involve deliberate concealment or collusion.


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.


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.





Andrew Irvine (Senior Statutory Auditor)
  
for and on behalf of
Shorts
 
Chartered Accountants
Statutory Auditor
  
2 Ashgate Road
Chesterfield
S40 4AA

2 August 2024
Page 8

 
CMC CHESTERFIELD LIMITED
 
 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
31,898,038
29,328,525

Cost of sales
  
(26,006,626)
(23,555,022)

Gross profit
  
5,891,412
5,773,503

Administrative expenses
  
(4,619,109)
(4,394,953)

Other operating income
 5 
288,456
222,350

Operating profit
 6 
1,560,759
1,600,900

Interest payable and similar expenses
 10 
(506,377)
(293,984)

Profit before tax
  
1,054,382
1,306,916

Tax on profit
 11 
(257,654)
48,116

Profit after tax
  
796,728
1,355,032

  

  

Retained earnings at the beginning of the year
  
(49,454)
(1,404,486)

Profit for the year
  
796,728
1,355,032

Retained earnings at the end of the year
  
747,274
(49,454)
The notes on pages 11 to 23 form part of these financial statements.

Page 9

 
CMC CHESTERFIELD LIMITED
REGISTERED NUMBER: 04330784

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
  
-
-

Tangible assets
 13 
842,165
456,148

Current assets
  

Stocks
 14 
9,451,262
9,317,238

Debtors: amounts falling due within one year
 15 
1,534,407
426,632

Cash at bank and in hand
  
72,622
8,362

  
11,058,291
9,752,232

Creditors: amounts falling due within one year
 16 
(10,378,645)
(9,820,501)

Net current assets/(liabilities)
  
 
 
679,646
 
 
(68,269)

Total assets less current liabilities
  
1,521,811
387,879

Creditors: amounts falling due after more than one year
 17 
(316,480)
(107,333)

Provisions for liabilities
  

Deferred tax
 20 
(128,057)
-

Net assets
  
1,077,274
280,546


Capital and reserves
  

Called up share capital 
 21 
202,950
202,950

Capital redemption reserve
 22 
127,050
127,050

Profit and loss account
 22 
747,274
(49,454)

  
1,077,274
280,546


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 2 August 2024.




C J Brightman
Director

The notes on pages 11 to 23 form part of these financial statements.

Page 10

 
CMC CHESTERFIELD LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

CMC Chesterfield Limited is a private Company limited by shares, incorporated in England and Wales
(registered number: 04330784). Its registered office is Derwent Buildings, High Street, Clay Cross,
Chesterfield, Derbyshire, S45 9DP. The principal activity of the Company is the sale of motorcycles,
clothes, parts and accessories. 

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 (see note 3).

The Company's functional and presentational currency is pounds sterling.

The following principal accounting policies have been applied:

 
2.2

Going concern

The directors have prepared budgets for the next 12 months, based upon their expectation of
realistic sales volume levels which show that the Company will continue to trade profitability and
enable it to pay its debts as they fall due. In addition, should additional funding become necessary in the future then the directors are confident that this can be secured at the appropriate levels.
Considering these expected future trading results and having received confirmation from all of the
ongoing key stakeholders of their continued support at the required levels, the directors have
prepared the accounts on a going concern basis.

 
2.3

Revenue Recognition

Turnover 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. Turnover 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:

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Page 11

 
CMC CHESTERFIELD LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

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.

 
2.5

Pensions

Defined contribution pension plan

The Company operates 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.

 
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.

Page 12

 
CMC CHESTERFIELD LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.7
Tangible fixed assets (continued)

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

Depreciation is provided on the following basis:

Short-term leasehold property
-
Over term of lease
Plant and machinery
-
3 - 7 years
Motor vehicles
-
5 - 7 years
Fixtures and fittings
-
2 - 9 years
Computer equipment
-
2 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.

 
2.8

Stocks

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.

 
2.9

Financial instruments

The Company only enters into basic financial instruments transactions that result in the recognition
of financial assets and liabilities such as bank and cash balances, trade and other accounts
receivable and payable, loans from banks and other third parties and loans to and from related
parties.
Debt instruments (other than those wholly repayable or receivable within one year), including loans
and other accounts receivable and payable, are initially measured at the transaction price and
subsequently at amortised cost using the effective interest method. Debt instruments that are
payable or receivable within one year, typically trade debtors and creditors, are measured, initially
and subsequently, at the undiscounted amount of the cash or other consideration expected to be
paid or received. However, if the arrangements of a short-term instrument constitute a financing
transaction, the financial asset or liability is measured, initially, at the present value of the future
cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at
amortised cost.
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.

Page 13

 
CMC CHESTERFIELD LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

No significant judgements have been made by management in preparing these financial statements.
The Company makes estimates and assumptions concerning the future. The resulting accounting
estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have the greatest level of uncertainty are addressed below:
(i) Stock provisioning
When calculating the stock provision, management considers the nature and conditions of the inventory,
as well as applying assumptions around saleability of stock. The carrying value of stock after making
such a provision was £9,451,262 (2022: £9,317,238).
(ii) Manchester site closure provisioning
When calculating the Manchester site closure provision, management considers the potential future
costs based on the previous costs incurred and the remaining term of the lease, as well as applying
assumptions around the potential increases in these costs. The remaining provision for costs to be
released in the year they relate to was £10,000 (2022: £456,174). 


4.


Turnover

All turnover arose within the United Kingdom.


5.


Other operating income

2023
2022
£
£

Commissions receivable
288,456
222,350



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation
158,578
74,304

Other operating lease rentals
305,489
281,418

(Profit)/Loss on disposal of tangible fixed assets
366
(6,500)

Page 14

 
CMC CHESTERFIELD LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
21,000
20,100

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.


8.


Employees

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


2023
2022
£
£

Wages and salaries
2,861,346
2,683,093

Social security costs
292,600
260,727

Cost of defined contribution scheme
72,153
63,596

3,226,099
3,007,416


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


        2023
        2022
            No.
            No.







Sales
43
40



Workshop
21
20



Administration
17
20

81
80

Page 15

 
CMC CHESTERFIELD LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
174,558
197,884

Company contributions to defined contribution pension schemes
5,467
6,446

180,025
204,330


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


10.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
14,236
14,608

Other loan interest payable
478,788
276,286

Finance leases and hire purchase contracts
13,353
-

Other interest payable
-
3,090

506,377
293,984


11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
89,903
48,478

Adjustments in respect of previous periods
446
-


Deferred tax


Origination and reversal of timing differences
167,893
(96,594)

Adjustments in respect of prior periods
(588)
-


Tax on profit
257,654
(48,116)
Page 16

 
CMC CHESTERFIELD LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - lower than) the standard rate of corporation tax in the UK of 23.5% (2022 -19%). The differences are explained below:

2023
2022
£
£


Profit before tax
1,052,384
1,306,917


Profit multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
247,780
248,314

Effects of:


Expenses not deductible for tax purposes
4,295
1,122

Adjustments to tax charge in respect of previous periods
(142)
-

Change in rate of tax for deferred tax
10,152
(9,420)

Other timing differences leading to an increase (decrease) in taxation
(4,431)
(3,671)

Utilisation of tax losses brought forward
-
(284,461)

Total tax charge for the year
257,654
(48,116)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 17

 
CMC CHESTERFIELD LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Intangible assets




Goodwill

£



Cost


At 1 January 2023
125,000



At 31 December 2023

125,000



Amortisation


At 1 January 2023
125,000



At 31 December 2023

125,000



Net book value



At 31 December 2023
-



At 31 December 2022
-



Page 18

 
CMC CHESTERFIELD LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Tangible fixed assets





Short-term leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Other fixed assets
Total

£
£
£
£
£
£



Cost


At 1 January 2023
503,581
59,964
239,655
392,409
406,992
1,602,601


Additions
66,181
3,576
455,198
2,327
18,513
545,795


Disposals
-
-
(125,398)
-
-
(125,398)



At 31 December 2023

569,762
63,540
569,455
394,736
425,505
2,022,998



Depreciation


At 1 January 2023
171,566
58,131
234,066
290,504
392,186
1,146,453


Charge for the year on owned assets
48,673
960
42,788
51,320
14,837
158,578


Disposals
-
-
(124,198)
-
-
(124,198)



At 31 December 2023

220,239
59,091
152,656
341,824
407,023
1,180,833



Net book value



At 31 December 2023
349,523
4,449
416,799
52,912
18,482
842,165



At 31 December 2022
332,015
1,833
5,589
101,905
14,806
456,148

Page 19

 
CMC CHESTERFIELD LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Stocks

2023
2022
£
£

Motorcycles, clothing, accessories & parts
9,451,262
9,317,238



15.


Debtors

2023
2022
£
£


Trade debtors
421,002
222,573

Amounts owed by group undertakings
963,274
-

Other debtors
22,617
27,175

Prepayments and accrued income
127,514
137,636

Deferred taxation
-
39,248

1,534,407
426,632



16.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank overdrafts
2,867
70,564

Bank loans
56,000
56,000

Trade creditors
5,546,428
4,546,128

Corporation tax
89,903
48,478

Other taxation and social security
69,244
67,176

Obligations under finance lease and hire purchase contracts
100,439
-

Other creditors
3,865,497
3,723,495

Accruals and deferred income
648,267
1,308,660

10,378,645
9,820,501


Secured Creditors
Trade creditors includes an amount of £3,386,897 (2022: £3,111,494) which is secured against stock. Other creditors includes an amount of £ 3,765,651 (2022: £3,623,827) which is secured against stock.
The bank borrowings are secured by a floating charge over the Company's assets and a personal guarantee from the directors limited to £700,000. 

Page 20

 
CMC CHESTERFIELD LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
51,333
107,333

Net obligations under finance leases and hire purchase contracts
265,147
-

316,480
107,333



18.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Bank loans
56,000
56,000

Amounts falling due 1-2 years

Bank loans
51,333
56,000

Amounts falling due 2-5 years

Bank loans
-
51,333


107,333
163,333



19.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2023
2022
£
£


Within one year
100,439
-

Between 1-5 years
265,147
-

365,586
-

Page 21

 
CMC CHESTERFIELD LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


Deferred taxation




2023
2022


£

£






At beginning of year
(39,248)
57,346


Charged to profit or loss
167,305
(96,594)



At end of year
128,057
(39,248)

The deferred taxation balance is made up as follows:

2023
2022
£
£


Accelerated capital allowances
132,070
75,721

Provisions
(4,013)
(114,969)

128,057
(39,248)


21.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



202,950 (2022 - 202,950) Ordinary shares of £1.00 each
202,950
202,950



22.


Reserves

Capital redemption reserve

The reserves records the nominal value of shares repurchased by the Company.

Profit and loss account

This reserve records all current and prior period retained profits and losses, and is considered to be
distributable.

Page 22

 
CMC CHESTERFIELD LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

23.


Pension commitments

The Company operates a defined contributions benefit scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £72,153 (2022: £63,596). Contributions totalling £16,089 (2022: £15,172) were payable to the fund at the balance sheet date and are included in creditors.


24.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
228,693
227,691

Later than 1 year and not later than 5 years
563,672
682,365

Later than 5 years
256,667
366,667

1,049,032
1,276,723


25.


Related party transactions

The Company has taken advantage of the exemption in FRS 102 Section 33.1A to not disclose transactions with wholly owned group entities.
Key management personnel compensation was £200,047 (2022: £222,763). In addition, close family members of the directors were paid a total of £193,239 (2022: £187,427). 
During the year, the Company made purchases totalling £773,101 (2022: £1,927,326) and sales totalling £557,208 (2022: £879,627) to entities which are related by way of common control. Included within trade creditors is an amount of £560,600 (2022: £12,288) which remains outstanding. In addition, an amount of £87,005 (2022: £40,115) was paid to a company owned by a director during the year for consultancy services. The amount outstanding to this company at the end of the year was £263,662 (2022: £178,204).


26.


Controlling party

The Company is controlled by Rochma Holdings Limited, the Company's immediate parent company, which is registered in the United Kingdom and was incorporated on 5th May 2023. Its registered office is Derwent Buildings, High Street,  Clay Cross, Chesterfield, S45 9DP. CMC Chesterfield Limited is a 100% owned subsidiary of Rochma Holdings Limited. The ultimate controlling parties are the directors due to their equal shareholding in the parent Company.
The Company is included in audited consolidated accounts for a larger group which are drawn up by Rochma Holdings Limited.

 
Page 23