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Registered number: 13615479









CHS GROUP LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2023

 
CHS GROUP LIMITED
 
 
COMPANY INFORMATION


Director
M Payne 




Registered number
13615479



Registered office
Leytonstone House
3 Hanbury Drive

Leytonstone

London

E11 1GA




Independent auditor
Barnes Roffe LLP
Chartered Accountants 
Statutory Auditor

Leytonstone House

3 Hanbury Drive

Leytonstone

London

E11 1GA




Bankers
Barclays Bank plc

PO Box 2403

London

N18 2BY





 
CHS GROUP LIMITED
 

CONTENTS



Page
Group strategic report
 
1
Director's report
 
2 - 3
Independent auditor's report
 
4 - 7
Consolidated statement of comprehensive income
 
8
Consolidated balance sheet
 
9
Company balance sheet
 
10
Consolidated statement of changes in equity
 
11 - 12
Company statement of changes in equity
 
13
Consolidated statement of cash flows
 
14 - 15
Consolidated analysis of net debt
 
16
Notes to the financial statements
 
17 - 38


 
CHS GROUP LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2023

Business review
 
Following the extensive restructuring in the prior year the Group has continued to focus its management on its existing business platforms to ensure it can drive forward growth and capitalise on a significant number of exciting opportunities.
Whilst underlying results for continuing operations have seen a fall in revenue of 6.9% compared to the prior year the Group remains profitable with a pre-tax profit margin of 10.0% (14.3%) and has achieved an improved net asset position from £3.56m to £4.43m.
The Group have been able to build on their recognisable and successful brand, continuing to enter into major contracts with new and existing customers. The director has taken decisive actions to control overheads, and together with ongoing investment in sales, operations and marketing initiatives have ensured the Group's underlying performance remains strong whilst cashflow and working capital have been prudently managed.
Whilst the economic and political climate remains unstable, the director is confident that the actions taken during the period place the Group on a strong footing to capitalise on future opportunities and adapt to challenges as they are faced.

Principal risks and uncertainties
 
Throughout its operations the Group faces various principal internal and external risks and uncertainties, including working capital management, customer and supplier risk and financial asset risk. The Group manages the risks inherent in its operations to mitigate exposure to all forms of risks, where practical.

Financial key performance indicators
 
The Group considers that the financial key performance indicators are those that communicate the financial performance and strength of the Group; these being turnover, gross profit margin and net profit.
Other key performance indicators
Given the straightforward nature of the business, the director is of the opinion that analysis using other KPIs is not necessary for an understanding of the development, performance or position of the Group.


This report was approved by the board on 30 August 2024 and signed on its behalf.



M Payne
Director

Page 1

 
CHS GROUP LIMITED
 
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 AUGUST 2023

The director presents her report and the financial statements for the year ended 31 August 2023.

Director's responsibilities statement

The director is responsible for preparing the Group strategic report, the Director's report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless she is satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the director is required to:


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

make judgments 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 Group will continue in business.

The director is 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 the Group and to enable her to ensure that the financial statements comply with the Companies Act 2006She is also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The Company's principal activity is a holding company for the Group.
The principal activities of the Company's subsidiaries for their continuing operations were that of the assembly and supply of protective screens, accessories and other protective products.

Results and dividends

The profit for the year, after taxation, amounted to £613,838 (2022 - £825,697).

The director does not recommend a final dividend.

Director

The director who served during the year was:

M Payne 

Page 2

 
CHS GROUP LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023

Future developments

The outlook for the Group’s continuing operations remains strong as management continue to take decisive action to manage and adapt to an everchanging political and economic climate, given the conflict experienced around the world at present. The Group has taken the required steps to mitigate the impact of these events and has continued to invest in plant post year end to ensure the Group position is strengthened to be able to capitalise on future opportunities.
The Group would like to thank all its staff, customers, suppliers and strategic partners for their support.

Disclosure of information to auditor

The director at the time when this Director's report is approved has confirmed that:
 
so far as she is aware, there is no relevant audit information of which the Company and the Group's auditor is unaware, and

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

Post balance sheet events

There have been no significant events affecting the Group since the year end.

This report was approved by the board on 30 August 2024 and signed on its behalf.
 





M Payne
Director

Page 3

 
CHS GROUP LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHS GROUP LIMITED
 

Opinion


We have audited the financial statements of CHS Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 August 2023, which comprise the Consolidated statement of comprehensive income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 August 2023 and of the Group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.


Page 4

 
CHS GROUP LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHS GROUP LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's report thereon. The director is responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


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


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Director's report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of director's 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 Director's responsibilities statement set out on page 2, the director is 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 director determines 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 director is responsible for assessing the Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 5

 
CHS GROUP LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHS GROUP LIMITED (CONTINUED)


Auditor's responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.


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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliancewith law and regulations, was as follows:
 
The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
We identified the laws and regulations applicable to the Group and parent Company through discussion with the director and other management, and from our commercial knowledge and experience of the relevant sector;
The specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Group and parent Company, are as follows; Companies Act 2006, FRS102, health and safety legislation, employment legislation and tax legislation;
We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing board minutes and inspecting legal correspondence;
Laws and regulations were communicated within the audit team at the planning meeting, and during the audit as any further laws and regulation were identified.

We assessed the susceptibility of the Grop and parent Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur by:
 
Making enquires of management as to where they consider there was susceptibility to fraud and their knowledge of actual suspected and alleged fraud;
Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;
Reviewing the financial statements and testing the disclosures against supporting documentation;
Performing analytical procedures to identify any unusual or unexpected trends or anomalies;
Inspecting and testing journal entries to identify unusual or unexpected transactions;
Assessing whether judgement and assumptions made in determining significant accounting estimates, including stock obsolence, were indicative of management bias; and
Investigating the rationale behind significant transactions, or transactions that are unusual or outside the Company’s and the Group's usual course of business.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
 
Page 6

 
CHS GROUP LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHS GROUP LIMITED (CONTINUED)




A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Andrew Barnes (Senior statutory auditor)
for and on behalf of
Barnes Roffe LLP
Chartered Accountants
Statutory Auditor
Leytonstone House
3 Hanbury Drive
Leytonstone
London
E11 1GA

30 August 2024
Page 7

 
CHS GROUP LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2023

Continuing operations
Discontin'd operations
Total
Continuing operations
Discontinued operations
Total
2023
2023
2023
2022
2022
2022
                            Note
£
£
£
£
£
£

  

Turnover
 4 
8,215,588
-
8,215,588
8,843,419
7,254,582
16,098,001

Cost of sales
  
(5,349,747)
-
(5,349,747)
(5,256,065)
(6,435,859)
(11,691,924)

Gross profit
  
2,865,841
-
2,865,841
3,587,354
818,723
4,406,077

Administrative expenses
  
(2,159,512)
-
(2,159,512)
(3,623,571)
(1,002,317)
(4,625,888)

Exceptional administrative expenses
  
(37,188)
-
(37,188)
(163,690)
-
(163,690)

Other operating income
 5 
212,944
-
212,944
1,501,261
64,372
1,565,633

Operating profit
 6 
882,085
-
882,085
1,301,354
(119,222)
1,182,132

Interest receivable and similar income
 9 
8,300
-
8,300
26,350
502
26,852

Interest payable and similar expenses
 10 
(68,770)
-
(68,770)
(62,513)
(7,975)
(70,488)

Profit before taxation
  
821,615
-
821,615
1,265,191
(126,695)
1,138,496

Tax on profit
 11 
(207,777)
-
(207,777)
(312,799)
-
(312,799)

Profit for the financial year
  
613,838
-
613,838
952,392
(126,695)
825,697

  

Total comprehensive income for the year
  
613,838
825,697

Profit for the year attributable to:
  

Owners of the parent Company
  
613,838
-
613,838
825,697
-
825,697

  
613,838
-
613,838
825,697
-
825,697

The notes on pages 17 to 38 form part of these financial statements.

Page 8

 
CHS GROUP LIMITED
REGISTERED NUMBER: 13615479

CONSOLIDATED BALANCE SHEET
AS AT 31 AUGUST 2023

2023
2023
2022
2022
                                                                         Note
£
£
£
£

Fixed assets
  

Intangible assets
 14 
17,522
22,713

Tangible assets
 15 
1,641,508
1,899,832

Investments
 16 
2,430
2,430

  
1,661,460
1,924,975

Current assets
  

Stocks
 17 
350,283
956,727

Debtors: amounts falling due within one year
 18 
5,634,311
6,450,620

Cash at bank and in hand
 19 
370,712
1,122,349

  
6,355,306
8,529,696

Creditors: amounts falling due within one year
 20 
(3,183,680)
(6,129,053)

Net current assets
  
 
 
3,171,626
 
 
2,400,643

Total assets less current liabilities
  
4,833,086
4,325,618

Creditors: amounts falling due after more than one year
 21 
(360,463)
(716,331)

Provisions for liabilities
  

Deferred taxation
 23 
(46,377)
(46,377)

Net assets
  
4,426,246
3,562,910


Capital and reserves
  

Called up share capital 
 24 
9,040,000
9,040,000

Foreign exchange reserve
 25 
178,772
(70,726)

Merger reserve
 25 
(8,039,000)
(8,039,000)

Profit and loss account
 25 
3,246,474
2,632,636

Equity attributable to owners of the parent Company
  
4,426,246
3,562,910


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 30 August 2024.


M Payne
Director

The notes on pages 17 to 38 form part of these financial statements.

Page 9

 
CHS GROUP LIMITED
REGISTERED NUMBER: 13615479

COMPANY BALANCE SHEET
AS AT 31 AUGUST 2023

2023
2023
2022
2022
                                                                 Note
£
£
£
£

Fixed assets
  

Investments
 16 
9,040,000
9,040,000

  
9,040,000
9,040,000

Current assets
  

Cash at bank and in hand
 19 
10,500
1

  
10,500
1

Creditors: amounts falling due within one year
 20 
(2,247)
-

Net current assets
  
 
 
8,253
 
 
1

Total assets less current liabilities
  
9,048,253
9,040,001

  

  

Net assets excluding pension asset
  
9,048,253
9,040,001

Net assets
  
9,048,253
9,040,001


Capital and reserves
  

Called up share capital 
 24 
9,040,000
9,040,000

Profit and loss account brought forward
  
1
-

Profit for the year
  
8,252
1

Profit and loss account carried forward
  
8,253
1

  
9,048,253
9,040,001


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 30 August 2024.


M Payne
Director

The notes on pages 17 to 38 form part of these financial statements.

Page 10

 

 
CHS GROUP LIMITED


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2023



Called up share capital
Foreign exchange reserve
Merger reserve
Profit and loss account
Equity attributable to owners of parent Company
Total equity


£
£
£
£
£
£


At 1 September 2022
9,040,000
(70,726)
(8,039,000)
2,632,636
3,562,910
3,562,910



Comprehensive income for the year


Profit for the year
-
-
-
613,838
613,838
613,838


Movement in foreign exchange reserve
-
249,498
-
-
249,498
249,498

Total comprehensive income for the year
-
249,498
-
613,838
863,336
863,336



Total transactions with owners
-
-
-
-
-
-



At 31 August 2023
9,040,000
178,772
(8,039,000)
3,246,474
4,426,246
4,426,246



The notes on pages 17 to 38 form part of these financial statements.

Page 11

 

 
CHS GROUP LIMITED


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2022



Called up share capital
Foreign exchange reserve
Merger reserve
Profit and loss account
Equity attributable to owners of parent Company
Total equity


£
£
£
£
£
£


At 1 September 2020
120,000,000
56,314
(118,999,000)
23,643,269
24,700,583
24,700,583



Comprehensive income for the year


Profit for the year
-
-
-
825,697
825,697
825,697


Movement in foreign exchange reserve
-
(127,040)
-
-
(127,040)
(127,040)

Total comprehensive income for the year
-
(127,040)
-
825,697
698,657
698,657



Contributions by and distributions to owners


Dividends: Equity capital
-
-
-
(2,000)
(2,000)
(2,000)


Shares cancelled during the year
(110,960,000)
-
-
-
(110,960,000)
(110,960,000)


Transfer of assets and liabilities on reorganisation
-
-
110,960,000
(21,834,330)
89,125,670
89,125,670



Total transactions with owners
(110,960,000)
-
110,960,000
(21,836,330)
(21,836,330)
(21,836,330)



At 31 August 2022
9,040,000
(70,726)
(8,039,000)
2,632,636
3,562,910
3,562,910



The notes on pages 17 to 38 form part of these financial statements.

Page 12

 
CHS GROUP LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


Comprehensive income for the year

Profit for the year
-
1
1


Contributions by and distributions to owners

Shares issued during the year
120,000,000
-
120,000,000

Shares cancelled during the year
(110,960,000)
-
(110,960,000)



At 1 September 2022
9,040,000
1
9,040,001


Comprehensive income for the year

Profit for the year
-
8,252
8,252


Total transactions with owners
-
-
-


At 31 August 2023
9,040,000
8,253
9,048,253


The notes on pages 17 to 38 form part of these financial statements.

Page 13

 
CHS GROUP LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
613,838
825,697

Adjustments for:

Amortisation of intangible assets
5,191
7,301

Depreciation of tangible assets
283,912
407,934

Loss on disposal of tangible assets
1,774
4,832

Interest paid
68,770
70,488

Interest received
(8,300)
(26,852)

Taxation charge
207,777
312,799

Decrease/(increase) in stocks
606,444
(175,538)

Decrease/(increase) in debtors
101,023
(19,654,731)

Decrease/(increase) in amounts owed by groups
804,300
(20,011,201)

(Decrease)/increase in creditors
(3,273,343)
39,058,807

Corporation tax (paid)
(69,727)
(340,559)

Net cash generated from operating activities

(658,341)
478,977


Cash flows from investing activities

Purchase of tangible fixed assets
(63,488)
(1,314,279)

Sale of tangible fixed assets
36,128
75,331

Interest received
8,300
26,852

Net cash from investing activities

(19,060)
(1,212,096)

Cash flows from financing activities

Repayment of loans
(346,518)
(336,733)

Repayment of finance leases
-
(59,706)

Dividends paid
-
(2,000)

Interest paid
(68,770)
(70,488)

Net cash used in financing activities
(415,288)
(468,927)

Net (decrease) in cash and cash equivalents
(1,092,689)
(1,202,046)
Page 14

 
CHS GROUP LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023


2023
2022

£
£



Cash and cash equivalents at beginning of year
1,118,815
2,320,861

Cash and cash equivalents at the end of year
26,126
1,118,815


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
370,712
1,122,349

Bank overdrafts
(344,586)
(3,534)

26,126
1,118,815


The notes on pages 17 to 38 form part of these financial statements.

Page 15

 
CHS GROUP LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 AUGUST 2023




At 1 September 2022
Cash flows
At 31 August 2023
£

£

£

Cash at bank and in hand

1,122,349

(751,637)

370,712

Bank overdrafts

(3,534)

(341,052)

(344,586)

Debt due after 1 year

(716,331)

355,868

(360,463)

Debt due within 1 year

(656,565)

(7,097)

(663,662)


(254,081)
(743,918)
(997,999)

The notes on pages 17 to 38 form part of these financial statements.

Page 16

 
CHS GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

1.


General information

The Company is a private Company limited by shares and incorporated in England and Wales. The address of its registered office is Leytonstone House, 3 Hanbury Drive, Leytonstone, London, E11 1GA.
Details of the principal activities of the Company and its subsidiaries (together "the Group"), are disclosed in the director's report.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries
("the Group") as if they form a single entity. Intercompany transactions and balances between group
companies are therefore eliminated in full.
On 30 September 2021, there was a share for share exchange and CHS Group Limited became the
ultimate parent company of the group. Merger accounting has been used as permitted under
Financial Reporting Standard 102 section 19. Accordingly, the financial information for the current
and prior periods has been presented as if CHS Group Limited has always been the parent company
of the group.

 
2.3

Going concern

The financial statements have been prepared on a going concern basis as the director is satisfied that the Group and parent Company has the resources to continue in business for the foreseeable future which has been taken as being at least twelve months from the date of approval of the financial statements. In forming this assessment, the director has considered cashflow projections covering a period of at least twelve months from the date of approval of the financial statements.

Page 17

 
CHS GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses are presented in the Statement of comprehensive income within 'administrative expenses'.
On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

Page 18

 
CHS GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

2.Accounting policies (continued)

 
2.5

Revenue

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

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group 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 Group 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.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.6

Operating leases: the Group as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.7

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Consolidated statement of comprehensive income in the same period as the related expenditure.

Page 19

 
CHS GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

2.Accounting policies (continued)

 
2.8

Interest income

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

 
2.9

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.

 
2.10

Borrowing costs

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

 
2.11

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Group in independently administered funds.

Page 20

 
CHS GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

2.Accounting policies (continued)

 
2.12

Current and deferred taxation

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

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

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

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.

 
2.13

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Group but are presented separately due to their size or incidence.

Page 21

 
CHS GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

2.Accounting policies (continued)

 
2.14

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated statement of comprehensive income over its useful economic life.

Other intangible assets

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

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

 
2.15

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, .

Depreciation is provided on the following basis:

Long-term leasehold property
-
over the period of the lease
Plant and machinery
-
10-25% straight line/reducing balance
Motor vehicles
-
25% reducing balance
Fixtures and fittings
-
25% reducing balance
Other fixed assets
-
9% 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 22

 
CHS GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

2.Accounting policies (continued)

 
2.16

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

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

 
2.17

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.

 
2.18

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.

 
2.19

Cash and cash equivalents

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

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

 
2.20

Creditors

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

 
2.21

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 23

 
CHS GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

2.Accounting policies (continued)

 
2.22

Financial instruments

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

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

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

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

Financial liabilities

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

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

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

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

 
2.23

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 24

 
CHS GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
a) Critical judgments in applying the entity’s accounting policies
No significant judgments have had to be made by management in preparing these financial statements.
b) Critical accounting estimates and assumptions
The Group 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 a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
(i) Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 15 for the carrying amount of the property, plant and equipment, and note 2.15 for the useful economic lives for each class of assets.


4.


Turnover

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


2023
2022
£
£

Sale of goods
7,510,146
15,517,169

Rendering of services
705,442
580,832

8,215,588
16,098,001


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
3,072,111
9,770,014

Rest of Europe
5,143,477
6,327,987

8,215,588
16,098,001


Page 25

 
CHS GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

5.


Other operating income

2023
2022
£
£

Other operating income
204,944
312,313

Government grants receivable
-
456

Fees receivable
8,000
1,252,864

212,944
1,565,633



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Exchange differences
21,436
9,825

Other operating lease rentals
34,837
198,179

Depreciation
283,912
407,934

Loss on sale of tangible fixed assets
1,774
4,832

Amortisation of intangible assets, including goodwill
5,191
7,301


7.


Auditor's remuneration

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


2023
2022
£
£

Fees payable to the Company's auditor for the audit of the consolidated and parent Company's financial statements
10,000
10,000

Page 26

 
CHS GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

8.


Employees

Staff costs were as follows:


Group
Group
2023
2022
£
£


Wages and salaries
523,287
1,902,733

Social security costs
94,750
218,686

Cost of defined contribution scheme
199
18,498

618,236
2,139,917


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



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









Administration
17
10
1
1



Selling and distribution
4
4
-
-

21
14
1
1


9.


Interest receivable

2023
2022
£
£


Other interest receivable
8,300
26,852


10.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
24,681
37,084

Other loan interest payable
24,108
12,694

Shareholder loan interest
15,750
14,989

Other interest payable
4,231
5,721

68,770
70,488

Page 27

 
CHS GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
201,422
318,573

Adjustments in respect of previous periods
6,355
(49,958)


207,777
268,615


Total current tax
207,777
268,615

Deferred tax


Origination and reversal of timing differences
-
44,184

Total deferred tax
-
44,184


Tax on profit
207,777
312,799

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
821,615
1,138,496


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
205,404
216,314

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
10,839
23,936

Capital allowances for year in excess of depreciation
(13,741)
-

Utilisation of tax losses
(4,750)
-

Higher rate taxes on overseas earnings
3,635
72,549

Adjustments to tax charge in respect of prior periods
6,355
-

Changes in tax rates in the year
(2,321)
-

Unrelieved tax losses carried forward
2,356
-

Total tax charge for the year
207,777
312,799

Page 28

 
CHS GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

12.


Dividends

2023
2022
£
£


Dividends paid on equity capital
-
2,000


13.


Exceptional items

2023
2022
£
£


Amounts written off balances owed from connected entities
37,188
163,690


14.


Intangible assets

Group and Company





Patents

£



Cost


At 1 September 2022
331,858



At 31 August 2023

331,858



Amortisation


At 1 September 2022
309,145


Charge for the year on owned assets
5,191



At 31 August 2023

314,336



Net book value



At 31 August 2023
17,522



At 31 August 2022
22,713



Page 29

 
CHS GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

15.


Tangible fixed assets

Group






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

£
£
£
£
£



Cost or valuation


At 1 September 2022
582,183
5,324,919
130,582
320,603
-


Additions
-
63,488
-
-
-


Disposals
(6,648)
(99,513)
-
(4,499)
-



At 31 August 2023

575,535
5,288,894
130,582
316,104
-



Depreciation


At 1 September 2022
577,701
3,441,749
128,502
310,683
(180)


Charge for the year on owned assets
531
41,394
-
2,177
-


Charge for the year on financed assets
-
239,808
-
-
-


Disposals
(3,440)
(66,980)
-
(2,338)
-



At 31 August 2023

574,792
3,655,971
128,502
310,522
(180)



Net book value



At 31 August 2023
743
1,632,923
2,080
5,582
180



At 31 August 2022
4,482
1,883,170
2,080
9,920
180
Page 30

 
CHS GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

           15.Tangible fixed assets (continued)


Total

£



Cost or valuation


At 1 September 2022
6,358,287


Additions
63,488


Disposals
(110,660)



At 31 August 2023

6,311,115



Depreciation


At 1 September 2022
4,458,455


Charge for the year on owned assets
44,102


Charge for the year on financed assets
239,808


Disposals
(72,758)



At 31 August 2023

4,669,607



Net book value



At 31 August 2023
1,641,508



At 31 August 2022
1,899,832

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


2023
2022
£
£



Plant and machinery
1,416,661
1,652,771

Page 31

 
CHS GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

16.


Fixed asset investments

Group





Other fixed asset investments

£



Cost or valuation


At 1 September 2022
2,430



At 31 August 2023
2,430




Company





Investments in subsidiary companies

£



Cost or valuation


At 1 September 2022
9,040,000



At 31 August 2023
9,040,000




See note 24 for information regarding the group reorganisation.

Page 32

 
CHS GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Principal activity

Class of shares

Holding

Crownlea Hire and Sales Limited
Group recharges
Ordinary
100%
Protecta Screen Europe Limited*
Manufacturing and sale of protective screening
Ordinary
100%
Protecta Screen SAS**
Manufacturing and sale of protective screening
Ordinary
100%
GIE Protecbat***
Manufacturing and sale of protective screening
Ordinary
100%
Protecta Screen Holdings Limited*
Dormant
Ordinary
100%
Blok 'N' Mesh Holdings Limited*
Dormant
Ordinary
100%
Protecta Screen Limited*
Dormant
Ordinary
100%
Blok 'N' Mesh UK Limited*
Dormant
Ordinary
100%
Blok 'N' Mesh Ireland Limited*
Dormant
Ordinary
100%
Securafence Limited*
Dormant
Ordinary
100%
Crownlea Services Limited*
Recharge of group IT services
Ordinary
100%
Crownlea Group Limited*
Dormant
Ordinary
100%
Crownlea Plant (Hire & Sales) Limited*
Dormant
Ordinary
100%
Blok 'N' Mesh (Northern) Limited*
Dormant
Ordinary
100%

* These companies are wholly owned subsidiaries of Crownlea Hire and Sales Limited.
** Protecta Screen SAS is a wholly owned subsidiary of Protecta Screen Europe Limited.
*** GIE Protecbat is a wholly owned subsidiary of Protecta Screen SAS.
The registered office of all UK subsidiary undertakings in Leytonstone House, 3 Hanbury Drive, Leytonstone, London, E11 1GA.


17.


Stocks

Group
Group
2023
2022
£
£

Finished goods and goods for resale
350,283
956,727


The difference between purchase price or production cost of stocks and their replacement cost is not material.

Page 33

 
CHS GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

18.


Debtors

Group
Group
2023
2022
£
£


Trade debtors
1,357,313
1,636,418

Amounts owed by connected entities
2,939,267
3,663,571

Other debtors
488,242
402,514

Prepayments and accrued income
849,489
748,117

5,634,311
6,450,620



19.


Cash and cash equivalents

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

Cash at bank and in hand
370,712
1,122,349
10,500
1

Less: bank overdrafts
(344,586)
(3,534)
-
-

26,126
1,118,815
10,500
1



20.


Creditors: Amounts falling due within one year

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

Bank overdrafts
344,586
3,534
-
-

Bank loans
355,153
345,803
-
-

Trade creditors
472,614
1,339,393
-
-

Corporation tax
77,322
147,048
2,247
-

Other taxation and social security
298,169
176,228
-
-

Other creditors
417,157
587,703
-
-

Accruals and deferred income
1,218,679
3,529,344
-
-

3,183,680
6,129,053
2,247
-


Page 34

 
CHS GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

21.


Creditors: Amounts falling due after more than one year

Group
Group
2023
2022
£
£

Bank loans
360,463
716,331



The following liabilities were secured:
Group
Group
2023
2022
£
£


Bank overdraft
344,586
3,534

Bank loans
715,616
1,062,134

1,060,202
1,065,668

Details of security provided:

The bank overdraft is secured by way of a charge over the freehold property owned by the Group and
entities under common control, as well as against limited guarantees given by the Group and entities
under common control.
Bank loans are secured by way of a chattel mortgage over certain plant, machinery and vehicles held by
the Group, and by way of a charge over the freehold property owned by the Group and entities under
common control, as well as against limited guarantees given by the Group and entities under common
control.



22.


Loans


Analysis of the maturity of loans is given below:


Group
Group
2023
2022
£
£

Amounts falling due within one year

Bank loans
355,153
345,803

Amounts falling due 1-2 years

Bank loans
360,463
355,178

Amounts falling due 2-5 years

Bank loans
-
361,153


715,616
1,062,134


Page 35

 
CHS GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

23.


Deferred taxation


Group



2023


£






At beginning of year
(46,377)



At end of year
(46,377)

Company


2023






At end of year
-
Group
Group
2023
2022
£
£

Accelerated capital allowances
(46,377)
(46,377)


24.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



9,040,000 (2022 - 9,040,000) Ordinary B shares of £1.00 each
9,040,000
9,040,000

During the prior year, CHS Group Limited issued 119,999,999 Ordinary £1 shares at par in exchange for
the share capital of £1,001,000 held in Crownlea Hire and Sales Limited.
Where consideration for a subsidiary is an exchange of shares and only limited resources leave the
group, merger accounting has been used as permitted under Financial Reporting Standard 102 section
19. Accordingly, the financial information for the current and prior periods has been presented as if CHS
Group Limited has always been the parent company of the group.


Page 36

 
CHS GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

25.


Reserves

Foreign exchange reserve

The foreign exchange reserve represents an adjustment on consolidation when eliminating Group
investments in foreign subsidiaries. This is a non-distributable reserve.

Merger Reserve

The merger reserve relates to the application of merger accounting for a group reconstruction and represents the difference between the nominal value of shares issued and the nominal value of shares received in exchange. 

Profit and loss account

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


26.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £199 (2022 - £18,498). Contributions totalling £Nil (2022 - £Nil) were payable to the fund at the balance sheet date and are included in creditors.


27.


Commitments under operating leases

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


Group
Group
2023
2022
£
£

Not later than 1 year
21,675
34,032

Later than 1 year and not later than 5 years
9,468
31,143

31,143
65,175
Page 37

 
CHS GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

28.


Related party transactions

Key Management Personnel
During the period the Group paid rent in respect of properties owned by the directors amounting to £Nil (2022 - £24,000).
Other
The Group has taken the exemption available under FRS 102 Section 33 'Related Party Transactions' not to disclose intra-group information.
During the period the Group engaged in transactions with entities, all of which are connected by virtue of having directors, members or shareholders in common.
Total sales to these entities in the period amounted to £1,901,925
 (2022 - £1,345,770) and management charges receivable amounted to £8,000 (2022 - £1,241,189).
Total purchases from these entities in the period amounted to £1,177,186
 (2022 - £28,608) and management charges payable amounted to £266,923 (2022 - £766,148).
Rent payable amounted to £24,332 
(2022 - £56,000).
Amounts due from these entities at the period end amounted to £2,939,264
 (2022 - £4,547,058).


29.


Controlling party

The ultimate controlling party is M Payne.

 
Page 38