REGISTERED NUMBER: 05468845 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
CHANCELLORS GROUP HOLDINGS LIMITED |
REGISTERED NUMBER: 05468845 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
CHANCELLORS GROUP HOLDINGS LIMITED |
CHANCELLORS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 05468845) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
CHANCELLORS GROUP HOLDINGS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and Statutory Auditors |
Advantage |
87 Castle Street |
Reading |
Berkshire |
RG1 7SN |
CHANCELLORS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 05468845) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their strategic report of the company and the Group for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
The Group trading saw significant headwinds through 2023 caused by the negative impact political manoeuvring had on the confidence in the economy, and housing market more specifically. Short term shockwaves were most acute in the sales side of the business but through the second half of the year these were managed into longer term business plans for what was a supressed marketplace. The lettings division benefited from some rent rises through the year but transactional volume was consistently under threat from lower landlord volume as mortgage rates rose. The outlook into 2024 looks much more positive for the sales division with lettings remaining a stable platform for growth in the division. The will Group continue to take a highly proactive approach to these market conditions and has seen business pipelines grow over recent months to give confidence for the future. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The Group has traditionally adopted a risk averse approach to its trading activities, which has resulted in significant reserves being held which have prudently been used to invest in and develop the business infrastructure and network. With opportunities presenting themselves to grow teams and the business network during the year the Group was able to do much to mitigate the headwinds of a difficult marketplace caused by wider political and economic events. Moving forward the Group believes its competitive advantages can be leveraged to grow the business and outstrip performance seen by others over this coming period of increasing interest rates, cost of living and cost of trading which will naturally make trading profitably more difficult for some. |
FINANCIAL KEY PERFORMANCE INDICATORS |
The Group's activity focusses on two primary income streams, being residential sales and lettings. The key performance indicators considered by the Group in respect of those income streams are operating profit and turnover respectively. |
ON BEHALF OF THE BOARD: |
CHANCELLORS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 05468845) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their report with the financial statements of the company and the Group for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the Group in the year under review was that of estate agency and the provision of property related services. |
DIVIDENDS |
The total distribution of dividends during the year ended 31 December 2023 was nil (2022: £3,995,911). |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 the Group and of the profit or loss of the Group for that period. In preparing these financial statements, the directors are required to: |
- select suitable accounting policies 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 and the Group's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are 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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the Group's auditors are aware of that information. |
CHANCELLORS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 05468845) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
AUDITORS |
The auditors, Haines Watts, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CHANCELLORS GROUP HOLDINGS LIMITED |
Opinion |
We have audited the financial statements of Chancellors Group Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The 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 affairs as at 31 December 2023 and of the group's loss 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'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 group's and 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 directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CHANCELLORS GROUP HOLDINGS LIMITED |
Opinions 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors 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 Report of the Directors. |
We have nothing to report in respect of the following matters where 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 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 Statement of Directors' Responsibilities set out on page three, 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 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 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 directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CHANCELLORS GROUP HOLDINGS LIMITED |
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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We obtained an understanding of the legal and regulatory framework applicable to the Company and the industry in which it operates. We determined that the following laws and regulations were most significant: FRS102 - the Financial Reporting Standard applicable in the UK & The Republic of Ireland, the Companies Act 2006 and relevant tax compliance regulations in the UK. We considered the provisions of other laws and regulations that do not have a direct effect on the financial statements but may be fundamental to the company's ability to operate. These included compliance with Estate Agents Act 1979, Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 and the Data Protection Act. |
We obtained an understanding of how the Company is complying with those legal and regulatory frameworks by making enquiries of management. We did not identify any matters of non-compliance with material laws and regulations or material irregularities when assessing compliance with the above. |
We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by meeting with management to understand where management considered there was susceptibility to fraud. Audit procedures performed by the audit team included: |
- | Challenging assumptions and judgements made by management in its significant accounting estimates; |
- | Identifying and testing journal entries, with a focus on entries made with unusual accounting combinations; |
- | Confirming with management whether they have knowledge of any actual, suspected or illegal fraud; |
- | Evaluating whether there was evidence of bias by management that represents a risk of material misstatement due to fraud. |
These procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance with all laws and regulations. |
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 Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CHANCELLORS GROUP HOLDINGS LIMITED |
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 2006. Our 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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Accountants and Statutory Auditors |
Advantage |
87 Castle Street |
Reading |
Berkshire |
RG1 7SN |
CHANCELLORS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 05468845) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 | 26,548,215 | 28,956,602 |
Administrative expenses | 28,009,432 | 28,550,824 |
(1,461,217 | ) | 405,778 |
Other operating income | 4 | 131,417 | 99,668 |
OPERATING (LOSS)/PROFIT | 6 | (1,329,800 | ) | 505,446 |
Interest receivable and similar income | 8 | 706,786 | 39,253 |
(623,014 | ) | 544,699 |
Gain/loss on revaluation of investments | 142,806 | (78,506 | ) |
(LOSS)/PROFIT BEFORE TAXATION | (480,208 | ) | 466,193 |
Tax on (loss)/profit | 9 | (74,912 | ) | 5,624 |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR |
( |
) |
CHANCELLORS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 05468845) |
CONSOLIDATED BALANCE SHEET |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 | 10,681 | 16,021 |
Tangible assets | 13 | 753,026 | 841,907 |
Investments | 14 | - | 90,832 |
763,707 | 948,760 |
CURRENT ASSETS |
Debtors | 15 | 2,082,846 | 1,797,400 |
Cash at bank and in hand | 6,120,888 | 6,957,324 |
8,203,734 | 8,754,724 |
CREDITORS |
Amounts falling due within one year | 16 | 3,031,772 | 3,362,519 |
NET CURRENT ASSETS | 5,171,962 | 5,392,205 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
5,935,669 |
6,340,965 |
CAPITAL AND RESERVES |
Called up share capital | 18 | 30,295 | 30,295 |
Share premium | 19 | 14,995 | 14,995 |
Capital redemption reserve | 19 | 156,199 | 156,199 |
Retained earnings | 19 | 5,734,180 | 6,139,476 |
SHAREHOLDERS' FUNDS | 5,935,669 | 6,340,965 |
The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 19 August 2024 and were signed on its behalf by: |
R J Scott-Lee - Director |
CHANCELLORS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 05468845) |
COMPANY BALANCE SHEET |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 |
Tangible assets | 13 |
Investments | 14 |
CURRENT ASSETS |
Debtors | 15 |
Cash at bank |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Share premium | 19 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | - | 3,995,875 |
The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on |
CHANCELLORS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 05468845) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2022 | 30,280 | 9,674,818 | 13,135 | 156,199 | 9,874,432 |
Changes in equity |
Issue of share capital | 15 | - | 1,860 | - | 1,875 |
Dividends | - | (3,995,911 | ) | - | - | (3,995,911 | ) |
Total comprehensive income | - | 460,569 | - | - | 460,569 |
Balance at 31 December 2022 | 30,295 | 6,139,476 | 14,995 | 156,199 | 6,340,965 |
Changes in equity |
Total comprehensive income | - | (405,296 | ) | - | - | (405,296 | ) |
Balance at 31 December 2023 | 30,295 | 5,734,180 | 14,995 | 156,199 | 5,935,669 |
CHANCELLORS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 05468845) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Issue of share capital | - |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 December 2022 |
Changes in equity |
Balance at 31 December 2023 |
CHANCELLORS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 05468845) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (1,354,815 | ) | 146,498 |
Tax paid | 64,762 | (304,510 | ) |
Net cash from operating activities | (1,290,053 | ) | (158,012 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (258,522 | ) | (340,903 | ) |
Purchase of fixed asset investments | - | (2,009 | ) |
Sale of tangible fixed assets | - | 366 |
Sale of fixed asset investments | 5,353 | - |
Interest received | 706,786 | 39,253 |
Net cash from investing activities | 453,617 | (303,293 | ) |
Cash flows from financing activities |
Share issue | - | 1,875 |
Equity dividends paid | - | (3,995,911 | ) |
Net cash from financing activities | - | (3,994,036 | ) |
Decrease in cash and cash equivalents | (836,436 | ) | (4,455,341 | ) |
Cash and cash equivalents at beginning of year |
2 |
6,957,324 |
11,412,665 |
Cash and cash equivalents at end of year |
2 |
6,120,888 |
6,957,324 |
CHANCELLORS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 05468845) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | RECONCILIATION OF (LOSS)/PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
(Loss)/profit for the financial year | (405,296 | ) | 460,569 |
Depreciation charges | 352,743 | 404,255 |
Loss on disposal of fixed assets | 82,904 | - |
(Gain)/loss on revaluation of fixed assets | (140,231 | ) | 80,514 |
Finance income | (706,786 | ) | (39,253 | ) |
Taxation | (74,912 | ) | 5,624 |
(891,578 | ) | 911,709 |
Increase in trade and other debtors | (142,640 | ) | (30,109 | ) |
Decrease in trade and other creditors | (320,597 | ) | (735,102 | ) |
Cash generated from operations | (1,354,815 | ) | 146,498 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2023 |
31/12/23 | 1/1/23 |
£ | £ |
Cash and cash equivalents | 6,120,888 | 6,957,324 |
Year ended 31 December 2022 |
31/12/22 | 1/1/22 |
£ | £ |
Cash and cash equivalents | 6,957,324 | 11,412,665 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/1/23 | Cash flow | At 31/12/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 6,957,324 | (836,436 | ) | 6,120,888 |
6,957,324 | (836,436 | ) | 6,120,888 |
Total | 6,957,324 | (836,436 | ) | 6,120,888 |
CHANCELLORS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 05468845) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
Chancellors Group Holdings Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared under the historic 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 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 financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £. |
The following principal accounting policies have been applied: |
Going Concern |
In determining the appropriate basis of preparation of the financial statements, the board is required to consider whether the Group can continue in operational existence for the foreseeable future. |
The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. The Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts. |
Basis of consolidation |
The consolidated financial statements present the results of Group and its own subsidiaries ("the Group") as they formed a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. |
Significant judgements, estimates and provisions |
Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include the useful economic life of tangible fixed assets and provision for doubtful debts. |
CHANCELLORS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 05468845) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
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: |
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 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. |
Revenue comprises mainly the amounts receivable (net of Value Added Tax) in respect of residential property, residential lettings, property management and third party referral commissions. |
Revenue is recognised upon exchange of the property but is not due until completion of the transaction. |
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 Profit and loss account over its useful economic life. |
Amortisation is provided on the following basis: |
Goodwill - 10 years |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
CHANCELLORS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 05468845) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. |
Depreciation is provided on the following basis: |
Leasehold improvements | - | 7 years |
Fixtures & fittings | - | 5 years |
Office equipment | - | 3 - 5 years |
Computer equipment | - | 3 years |
The assets' residual values, useful economic 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 the Consolidated statement of comprehensive income. |
Operating leases |
Rentals paid under operating leases are charged to the Consolidated statement of comprehensive income 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. |
The Group has taken advantage of the optional exemption available on transition to FRS 102 which allows lease incentives on leases entered into before the date of transition to the standard, 01 January 2017, to continue to be charged over the period to the first market rent review date rather than the term of the lease. |
Valuation of investments |
Investments in subsidiaries are measured at cost less accumulated impairment. Listed investments are measured at market value. |
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. |
The bad debt provision is measured by taking debts that are greater than 3 months overdue or currently going through litigation procedures. |
CHANCELLORS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 05468845) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
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. |
Financial instruments |
The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares. |
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows 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, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in the case of an out-right short-term loan not at market rate, 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 that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated statement of comprehensive income. |
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an assets carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the balance sheet date. |
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. |
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. |
CHANCELLORS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 05468845) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Finance Costs |
Finance costs are charged to the Consolidated statement of comprehensive income 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. |
Government grants |
The company receives government grants in respect of the job retention scheme. These grants are |
recognised at the fair value on a receivable basis as other operating income. |
Dividends |
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when fully paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. |
Share options |
Where share options are awarded to employees, the fair value of the options at the date of grant is charged to the Profit and loss account over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each Balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition. |
Pensions |
The Group operates a defined contribution pension 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 the Consolidated statement of comprehensive income 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. |
Interest income |
Interest income is recognised in the Consolidated statement of comprehensive income using the effective interest method. |
Provisions for liabilities |
Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. |
Provisions are charged as an expense to the Consolidated statement of comprehensive income in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the Balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. |
When payments are eventually made, they are charged to the provision carried in the Balance sheet. |
CHANCELLORS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 05468845) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
3. | TURNOVER |
The turnover and loss (2022 - profit) before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom | 26,548,215 | 28,956,602 |
26,548,215 | 28,956,602 |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
4. | OTHER OPERATING INCOME |
2023 | 2022 |
£ | £ |
Rents received | 88,824 | 88,138 |
Sundry receipts | 42,593 | 11,530 |
131,417 | 99,668 |
CHANCELLORS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 05468845) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 15,788,440 | 16,278,804 |
Social security costs | 1,540,309 | 1,650,971 |
Other pension costs | 272,412 | 278,576 |
17,601,161 | 18,208,351 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Operational staff | 370 | 409 |
Administrative staff | 79 | 81 |
449 | 490 |
During the year options over 9,500 shares in the company (2022 - 25,500) were granted to employees and options over 10,500 (2022 - 16,500) shares lapsed. No share options were exercised (2022 - 1,500) and the total number of shares under options at the year end amounted to 96,500 (2022 - 97,500). |
The fair value of the share options is considered to be immaterial to the Group and on this basis the directors have not recognised a charge in the profit or loss account for share-based payments. |
2023 | 2022 |
£ | £ |
Directors' remuneration | 355,750 | 346,641 |
Directors pension contributions to money purchase schemes | 2,642 | 2,642 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 2 |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 196,062 | 162,219 |
Pension contributions to money purchase schemes | 1,321 | 1,321 |
CHANCELLORS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 05468845) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
6. | OPERATING (LOSS)/PROFIT |
The operating loss (2022 - operating profit) is stated after charging: |
2023 | 2022 |
£ | £ |
Other operating leases | 2,029,928 | 2,046,624 |
Depreciation - owned assets | 347,403 | 398,916 |
Loss on disposal of fixed assets | 82,904 | - |
Goodwill amortisation | 5,340 | 5,340 |
7. | AUDITORS' REMUNERATION |
2023 | 2022 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
21,200 |
20,625 |
Taxation compliance services | 13,225 | 10,675 |
Other non- audit services | 4,325 | 4,050 |
8. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2023 | 2022 |
£ | £ |
Deposit account interest | 706,786 | 39,253 |
9. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | - | 27,171 |
Prior year tax over provision | (15,269 | ) | 11,072 |
Total current tax | (15,269 | ) | 38,243 |
Deferred tax | (59,643 | ) | (32,619 | ) |
Tax on (loss)/profit | (74,912 | ) | 5,624 |
CHANCELLORS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 05468845) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
9. | TAXATION - continued |
Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
(Loss)/profit before tax | (480,208 | ) | 466,193 |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 25 % (2022 - 19 %) |
(120,052 |
) |
88,577 |
Effects of: |
Expenses not deductible for tax purposes | 96 | 4,092 |
Capital allowances in excess of depreciation | - | (12,270 | ) |
Depreciation in excess of capital allowances | 15,119 | - |
Utilisation of tax losses | 23,850 | - |
Adjustments to tax charge in respect of previous periods | (15,269 | ) | 11,072 |
Adjustments in respect of research and development tax credit | - | (43,596 | ) |
Other timing differences | - | (24,548 | ) |
Fair value movement | - | 14,916 |
Deferred tax movement | (59,643 | ) | (32,619 | ) |
Losses carried forward | 80,987 | - |
Total tax (credit)/charge | (74,912 | ) | 5,624 |
10. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
11. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of £0.01 each |
Final | - | 3,995,911 |
CHANCELLORS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 05468845) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
12. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 | 53,401 |
AMORTISATION |
At 1 January 2023 | 37,380 |
Amortisation for year | 5,340 |
At 31 December 2023 | 42,720 |
NET BOOK VALUE |
At 31 December 2023 | 10,681 |
At 31 December 2022 | 16,021 |
13. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Short | and | Computer |
leasehold | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 | 1,927,666 | 3,718,781 | 1,582,498 | 7,228,945 |
Additions | 5,063 | 109,028 | 144,431 | 258,522 |
Disposals | - | (450 | ) | - | (450 | ) |
At 31 December 2023 | 1,932,729 | 3,827,359 | 1,726,929 | 7,487,017 |
DEPRECIATION |
At 1 January 2023 | 1,794,021 | 3,164,190 | 1,428,827 | 6,387,038 |
Charge for year | 33,232 | 192,708 | 121,463 | 347,403 |
Eliminated on disposal | - | (450 | ) | - | (450 | ) |
At 31 December 2023 | 1,827,253 | 3,356,448 | 1,550,290 | 6,733,991 |
NET BOOK VALUE |
At 31 December 2023 | 105,476 | 470,911 | 176,639 | 753,026 |
At 31 December 2022 | 133,645 | 554,591 | 153,671 | 841,907 |
CHANCELLORS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 05468845) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
14. | FIXED ASSET INVESTMENTS |
Group |
Listed | Unlisted |
investments | investments | Totals |
£ | £ | £ |
COST |
At 1 January 2023 | 88,257 | 2,575 | 90,832 |
Disposals | (88,257 | ) | - | (88,257 | ) |
Impairments | - | (2,575 | ) | (2,575 | ) |
At 31 December 2023 | - | - | - |
NET BOOK VALUE |
At 31 December 2023 | - | - | - |
At 31 December 2022 | 88,257 | 2,575 | 90,832 |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: As parent |
Nature of business: |
% |
Class of shares: | holding |
Registered office: As parent |
Nature of business: |
% |
Class of shares: | holding |
CHANCELLORS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 05468845) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
14. | FIXED ASSET INVESTMENTS - continued |
Registered office: As parent |
Nature of business: |
% |
Class of shares: | holding |
Registered office: As parent |
Nature of business: |
% |
Class of shares: | holding |
Registered office: As parent |
Nature of business: |
% |
Class of shares: | holding |
15. | DEBTORS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 814,125 | 678,583 |
Amounts owed by group undertakings | - | - |
Amounts owed by participating interests | 100,998 | 100,998 | - | - |
Other debtors | 26,974 | 18,635 |
Tax | 16,417 | 65,910 |
Prepayments and accrued income | 1,009,715 | 878,300 |
1,968,229 | 1,742,426 |
Amounts falling due after more than one | year: |
Deferred tax | 114,617 | 54,974 |
Aggregate amounts | 2,082,846 | 1,797,400 |
CHANCELLORS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 05468845) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Trade creditors | 769,163 | 885,082 |
Tax | 102 | 12,004 |
Social security and other taxes | 1,135,005 | 1,214,934 |
Other creditors | 73,658 | 101,302 |
Accruals and deferred income | 1,053,844 | 1,149,197 |
3,031,772 | 3,362,519 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable |
operating leases |
2023 | 2022 |
£ | £ |
Within one year | 1,705,226 | 1,773,131 |
Between one and five years | 4,875,534 | 5,473,414 |
In more than five years | 2,783,312 | 3,744,596 |
9,364,072 | 10,991,141 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £0.01 | 30,295 | 30,295 |
19. | RESERVES |
Share premium account |
The share premium account represents the premium raised from employee share options being exercised. |
Capital redemption reserve |
The capital redemption reserve represents a reserve required under the Companies Act 2006 whenever a company undertakes a purchase of own shares in order that the Company maintains its overall level of capital funding. |
Profit and loss account |
The profit and loss account represents the cumulative profits and losses net of dividends and other adjustments. |
CHANCELLORS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 05468845) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
20. | PENSION COMMITMENTS |
The Group operated a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. |
The charge to the profit and loss account in respect of the Group's defined contribution pension scheme is £272,411 (2022 - £278,575). At the year end an amount of £47,428 (2022 - £50,841) was outstanding. |
21. | RELATED PARTY TRANSACTIONS |
The following transactions with related companies occurred during the year. The companies are related through common control and ownership. |
At 1 Jan 2023 |
During the year |
Repaid in the year |
At 31 Dec 2023 |
£ | £ | £ | £ |
The Short Let Company Ltd | 100,998 | - | - | 100,998 |
Russell Baldwin and Bright (Property) | 2,782 | - | - | 2,782 |
Justcrest Ltd | 1,565 | 7,824 | (8,607 | ) | 782 |
Bonsor Penningtons Property Services | (315,000 | ) | - | - | (315,000 | ) |
Anscombe and Ringland Ltd | (436,002 | ) | - | - | (436,002 | ) |
SHS Properties | - | (18,600 | ) | 18,600 | - |
Little Green Properties Harpsden Ventures JV | - |
(22,300 |
) |
22,300 |
- |
The transactions for Justcrest Limited relate to reimbursed management charges. |
22. | ULTIMATE CONTROLLING PARTY |
By virtue of their directorships and shareholdings in Chancellors Group Holdings Ltd, D Harding, I Simpson, R Scott-Lee and D L Simpson are the ultimate controlling parties. |