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REGISTERED NUMBER: 02037946 (England and Wales)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2023

for

Charlton & Jenrick Ltd

Charlton & Jenrick Ltd (Registered number: 02037946)






Contents of the Financial Statements
for the Year Ended 31 December 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 6

Report of the Independent Auditors 8

Profit and Loss Account 12

Balance Sheet 13

Statement of Changes in Equity 14

Notes to the Financial Statements 15


Charlton & Jenrick Ltd

Company Information
for the Year Ended 31 December 2023







DIRECTORS: B G Charlton
W J Jenrick
P Mintoft
D M Beckett



REGISTERED OFFICE: Unit D
Stafford Park 2
Telford
Shropshire
TF3 3AR



REGISTERED NUMBER: 02037946 (England and Wales)



SENIOR STATUTORY AUDITOR: Geoffrey Hopwood BCOM FCA



AUDITORS: Haines Watts Wolverhampton Limited
Statutory Auditors
Keepers Lane
The Wergs
Wolverhampton
West Midlands
WV6 8UA

Charlton & Jenrick Ltd (Registered number: 02037946)

Strategic Report
for the Year Ended 31 December 2023

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


Charlton & Jenrick Ltd (Registered number: 02037946)

Strategic Report
for the Year Ended 31 December 2023

REVIEW OF BUSINESS
There were no changes to the main business of the company which remains in design, development and manufacture of domestic secondary heating appliances and fireplaces.

Sales during 2023 were satisfactory with markets returning to something approaching normality in the second half. This resulted in a year of consolidation following a period of rapid growth. We were able to continue to operate relatively efficiently and retain creditable net profit levels. Subsequently trading has continued to be satisfactory.

Economic and competitive pressures, notably the effects of inflation, rising interest rates, appliance over-supply and falling consumer confidence influenced all areas of our business. We achieved turnover of £17.48M for the year, a 3.4% decrease to 2022. Operating profit was £3.2M, down 21.1% at 18.3% of sales. Despite ongoing increases in almost all business input costs, gross margin improved, cash resources were well managed, and expenses controlled as far as possible. The directors consider this a satisfactory outcome in the circumstances. Turnover and EBITDA for the last four years is set out below:

Year 2020 2021 2022 2023
Turnover £9,214,277 £13,738,846 £18,093,957 £17,483,122
EBITDA £1,884,977 £2,788,959 £4,045,692 £3,293,863

There was continued flux throughout the business areas we operate in following some unwinding of the previous energy market instability. The UK endured fast rising interest rates and the media widely reported a cost-of-living crisis to which the company was not immune. These and other factors affected our business and our management team responded promptly and vigorously to strive for the best response to each challenge. We continued a stock build plan in certain areas to capitalise on opportunities for increasing and retaining sales which saw inventory once again reach historic highs at the year-end. The company continued to experience positive benefits from this investment policy and hopes to see further gains as opportunities present themselves.

Gas fire sales improved during the year as gas prices reduced and consumers realised that gas remains a very efficient and cost-effective heating solution. We maintain a very strong commitment to R&D, new gas fire technology and gas fire manufacturing for the future. We hope that the national need for energy security will see phasing out of Natural Gas taking place over a longer timescale than previously thought. Government continues to focus on reducing carbon by working towards 20% hydrogen blending in the gas grid and our product range is now tested and ready for this. Some 100% hydrogen appliance trials have been delayed or cancelled but hydrogen is still being pursued as a zero-carbon objective for the gas network so we continue R&D work in this field. Even motor manufacturers once fixated on battery electric cars are now seeing Hydrogen as part of the solution in low carbon fuels. We look to Government for stronger and more consistent leadership on hydrogen initiatives because electric Heat Pumps are certainly not a panacea for all future domestic heating needs.

The solid fuel stove market returned to some normality as gas, oil and electricity prices reduced. There is considerable stock and excess production capacity after the market rapidly cooled, leading to some heavy discounting of stoves. Grossly inaccurate and exaggerated stories about stove pollution from extreme groups are still circulating which impacts negatively on public perception. This has grown to proportions in areas such as London that it appears to prevent the public making a fair and balanced judgement of current wood combustion technology. Modern wood burning stoves produce a fraction of the emissions of an open fire or older stove and can contribute to lowering overall domestic emissions drastically when replacing older technology. This fact is being lost in the misinformation which is hampering positive change. The Stove Industry Association is continuing its hard work in correcting grossly inaccurate reporting and partial truths. Strong representations to Government, Trading Standards and Advertising Standards are being made on behalf of the industry. Our entire product range achieves clearSkies level 4 or 5 accreditation and we invest continuously in R&D to regularly launch new products based on new scientific and technological combustion developments.


Charlton & Jenrick Ltd (Registered number: 02037946)

Strategic Report
for the Year Ended 31 December 2023

Electric fire markets performed solidly, although some oversupply of appliances remained. This fuel type retains good potential for the future thanks to strong renewable and sustainable generation in the electricity grid coupled with vastly improved, easy to use appliances. We continue to invest substantial sums in additional R&D, launching regular new products including an LCD technology flame effect in two formats during 2023. We again enjoyed a good outturn during the year.

Katell Ltd suffered another difficult year of disappointing sales and pernicious cost inflation offsetting hard won efficiencies and sales price increases leading to a loss. Accordingly, we wrote down the carrying value of the investment by £153k. The group remains committed to the success of Katell and the directors are optimistic that fresh 2024 plans will deliver improved prospects for the business.

Sustained export effort resulted in growing sales to existing distributors and further new territories brought on stream that helped consolidate overall sales and profitability. Global shipping costs returned to more rational levels and exchange rates were stable.

Global warming, war in Ukraine and the middle east, political changes in the UK and EU together with advances in low carbon electricity generation has created a very unpredictable market for domestic secondary heating. Looking forward even one year in trying to make reasonably firm predictions is almost impossible. This is creating one of the most difficult periods to navigate that we have experienced for many years.

We continue our very large group commitment to R&D to feed unique, specialist new products using the latest scientific and technological advances into our markets and will respond actively to energy market developments as they arise. Bearing in mind all the circumstances the directors remain very confident about the future.

PRINCIPAL RISKS AND UNCERTAINTIES
The key business risks affecting the company are considered to be fire (or other similar sudden unforeseen events) leading to a reduction in production capacity and product availability, the impact of significant exchange rate fluctuations on purchases, and overall market and economic conditions.

The company mitigates these risks in a number of ways, including the use of a disaster recovery plan covering potential disruptions to its business, the maintenance of strategic stocks, the specific identification of alternate suppliers and the use of relevant financial instruments.

The company operates in a very competitive market with continuing rapid and progressive product development which is a continuing risk and may result in sales being lost to competitors. The company manages this risk by providing excellent service in all its activities, continued product development and a proactive approach to design and innovation.

The company has reviewed its position, in the light of the present economic outlook, as part of its normal budgetary process. The directors believe that the company has satisfactory financial resources. The company is expected to continue to trade profitably, even in the event of uncertainties in the global economy. However, not all future events or conditions can be predicted.

After making appropriate enquiries, the directors are of the opinion that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the report and accounts.


Charlton & Jenrick Ltd (Registered number: 02037946)

Strategic Report
for the Year Ended 31 December 2023

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The company's operations expose it to a variety of financial risks that include the effects of credit risk and investment risk.
The company monitors and takes action in each of these areas as follows:

CREDIT RISK
The company has implemented policies that require appropriate credit checks on potential customers before sales are made in addition, credit checks are made on those customers who are deemed to be a significant credit risk to the company. The company also monitors all court judgements made against its customers and makes appropriate adjustments in the light of this information.

LIQUIDITY RISK
The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs.

KEY PERFORMANCE INDICATORS
The directors use a number of KPIs in measuring the performance of the business. Key indicators used by the company cover margins, debtor and stock ratios, and cash generation. As these KPIs are derived from figures disclosed in this report, no additional KPIs are disclosed.

ON BEHALF OF THE BOARD:





P Mintoft - Director


18 September 2024

Charlton & Jenrick Ltd (Registered number: 02037946)

Report of the Directors
for the Year Ended 31 December 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the design, development and manufacture of secondary heating appliances and fireplaces.

DIVIDENDS
Interim dividends per share were paid as follows:
£10.169 - 13 March 2023
£39.590 - 31 May 2023
£13.998 - 7 December 2023
£0.788 - 31 December 2023
64.545

The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2023 will be £ 952,106 .

RESEARCH AND DEVELOPMENT
Research and development expenditure is written off in the year in which it is incurred.
The company continues to recognise the importance of ongoing Research and Development in respect of its products and will maintain this investment as part of its operations and future strategies.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

B G Charlton
W J Jenrick
P Mintoft
D M Beckett

Other changes in directors holding office are as follows:

R L Pope - resigned 31 March 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies 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.


Charlton & Jenrick Ltd (Registered number: 02037946)

Report of the Directors
for the Year Ended 31 December 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and 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 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 company'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 company's auditors are aware of that information.

AUDITORS
The auditors, Haines Watts Wolverhampton Limited, are deemed to be re-appointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:





P Mintoft - Director


18 September 2024

Report of the Independent Auditors to the Members of
Charlton & Jenrick Ltd

Opinion
We have audited the financial statements of Charlton & Jenrick Ltd (the 'company') for the year ended 31 December 2023 which comprise the Profit and Loss Account, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 company's affairs as at 31 December 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 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 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.

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 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 Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Charlton & Jenrick Ltd


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the 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, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on pages six and seven, 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
Charlton & Jenrick Ltd


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:

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.

In identifying and assessing risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

- Identifying and obtaining an understanding of the legal and regulatory framework applicable to the Company and the industry in which it operates, and made enquiry of the Company's management to understand the Company's compliance with that framework;

- Obtaining an understanding of the internal controls established to mitigate risks relating to fraud or other error which could affect the financial reporting process;

- Making enquiries of management to determine whether they have knowledge of any actual or suspected fraud;

- Reviewing assumptions and judgements made by the management in its significant accounting estimates;

- In addition to transaction-based testing, on a sample basis, of sales, purchases and payroll costs, we have undertaken a review of accounting journals and non-routine payments and receipts;

We did not identify any key audit matters relating to irregularities, including fraud.

Because of the inherent limitations of an audit, there is a risk that we will not detect irregularities, including those leading to 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 occuring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, or mispresentation.

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
Charlton & Jenrick Ltd


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.




Geoffrey Hopwood BCOM FCA (Senior Statutory Auditor)
for and on behalf of Haines Watts Wolverhampton Limited
Statutory Auditors
Keepers Lane
The Wergs
Wolverhampton
West Midlands
WV6 8UA

20 September 2024

Charlton & Jenrick Ltd (Registered number: 02037946)

Profit and Loss Account
for the Year Ended 31 December 2023

2023 2022
Notes £    £   

TURNOVER 3 17,483,122 18,095,658

Cost of sales 11,460,379 12,186,382
GROSS PROFIT 6,022,743 5,909,276

Administrative expenses 2,823,896 1,944,791
3,198,847 3,964,485

Other operating income - 91,665
OPERATING PROFIT 5 3,198,847 4,056,150

Interest receivable and similar income 21,244 1,209
3,220,091 4,057,359
Amounts written off investments 6 152,920 694,067
3,067,171 3,363,292

Interest payable and similar expenses 7 66,681 37,124
PROFIT BEFORE TAXATION 3,000,490 3,326,168

Tax on profit 8 124,681 520,100
PROFIT FOR THE FINANCIAL YEAR 2,875,809 2,806,068

Charlton & Jenrick Ltd (Registered number: 02037946)

Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 10 337,493 368,061
Investments 11 749,230 902,150
1,086,723 1,270,211

CURRENT ASSETS
Stocks 12 6,904,156 5,562,807
Debtors 13 7,549,623 8,121,820
Cash at bank and in hand 1,496,984 1,243,100
15,950,763 14,927,727
CREDITORS
Amounts falling due within one year 14 2,921,486 3,707,983
NET CURRENT ASSETS 13,029,277 11,219,744
TOTAL ASSETS LESS CURRENT
LIABILITIES

14,116,000

12,489,955

CREDITORS
Amounts falling due after more than one
year

15

(503,390

)

(795,782

)

PROVISIONS FOR LIABILITIES 19 (79,930 ) (85,196 )
NET ASSETS 13,532,680 11,608,977

CAPITAL AND RESERVES
Called up share capital 20 14,751 14,751
Share premium 21 9,853 9,853
Retained earnings 21 13,508,076 11,584,373
SHAREHOLDERS' FUNDS 13,532,680 11,608,977

The financial statements were approved by the Board of Directors and authorised for issue on 18 September 2024 and were signed on its behalf by:





P Mintoft - Director


Charlton & Jenrick Ltd (Registered number: 02037946)

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 14,751 9,214,707 9,853 9,239,311

Changes in equity
Dividends - (436,402 ) - (436,402 )
Total comprehensive income - 2,806,068 - 2,806,068
Balance at 31 December 2022 14,751 11,584,373 9,853 11,608,977

Changes in equity
Dividends - (952,106 ) - (952,106 )
Total comprehensive income - 2,875,809 - 2,875,809
Balance at 31 December 2023 14,751 13,508,076 9,853 13,532,680

Charlton & Jenrick Ltd (Registered number: 02037946)

Notes to the Financial Statements
for the Year Ended 31 December 2023

1. STATUTORY INFORMATION

Charlton & Jenrick Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

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

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows.

Preparation of consolidated financial statements
The financial statements contain information about Charlton & Jenrick Ltd as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent, Charlton & Jenrick Holdings Ltd, Unit D, Stafford Park 2, Telford, Shropshire, TF3 3AR.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Significant judgements and estimates are:

Provisions against the carrying value of stocks
The company reviews the market value and demand for its stock on a periodic basis to ensure that stock is stated at the lower of cost and estimated selling price less costs to sell. In assessing the ultimate realisation of stocks, the company is required to make estimates as to future demand requirements and to compare these with the current or committed stock levels. Assumptions have been made relating to the timing and success of product ranges, which could impact estimated demand and selling prices.

Turnover
The turnover shown in the profit and loss account is the amount receivable for the provision of goods and services falling within the Company's activities, net of Value Added Tax, rebates and trade discounts.

Turnover from the provision of goods and services is recognised in the accounting period in which the Company obtains the right to consideration in exchange for its performance and when the amounts to be recognised are fixed or determinable and collectability is reasonably assured.

Charlton & Jenrick Ltd (Registered number: 02037946)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Plant and machinery - 10% on cost
Office and Computer Equipment - 33% on cost
Motor vehicles - 25% on cost
Tooling and Equipment - 20% on cost

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost less any provision for impairment.

Stocks
Stock has been valued at the lower of cost and estimated selling price less costs to sell.

Cost is calculated using the first-in, first-out method and includes all purchase, transport and handling costs in bringing stocks to their present location and condition.

Stock provisions have been made for any slow moving or obsolete stocks.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, 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.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Charlton & Jenrick Ltd (Registered number: 02037946)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

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

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

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

Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as the financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the asset of the company after deducting all of its liabilities.

3. TURNOVER

Turnover is wholly attributable to the principal activity of the company.

The analysis of turnover by geographical market has not been disclosed.

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 2,316,818 1,808,355
Other pension costs 283,501 68,321
2,600,319 1,876,676

The average number of employees during the year was as follows:
2023 2022

Employees 49 46
Directors 4 5
53 51

Key management compensation

The only key management are the directors.

2023 2022
£    £   
Directors' remuneration 474,466 422,259
Directors' pension contributions to money purchase schemes 283,501 68,321

Charlton & Jenrick Ltd (Registered number: 02037946)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

4. EMPLOYEES AND DIRECTORS - continued

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 4 4

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 149,096 109,858
Pension contributions to money purchase schemes 160,000 39,539

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Depreciation - owned assets 96,931 80,399
Depreciation - assets on hire purchase contracts - 4,507
Profit on disposal of fixed assets (1,916 ) (3,699 )
Auditors' remuneration 22,075 17,500
Auditors' remuneration for non audit work 5,998 300
Foreign exchange differences 9,010 13,072
Research and development 76,547 68,006
Operating lease charges 185,691 187,364

6. AMOUNTS WRITTEN OFF INVESTMENTS
2023 2022
£    £   
Amount written off investments 152,920 694,067

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest 25,687 12,333
Loan interest 40,749 23,006
Hire purchase 245 1,785
66,681 37,124

Charlton & Jenrick Ltd (Registered number: 02037946)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 369,462 561,841
Over/under provision in prior years (239,515 ) (97,395 )
Total current tax 129,947 464,446

Deferred tax (5,266 ) 55,654
Tax on profit 124,681 520,100

UK corporation tax has been charged at 23.50% (2022 - 19%).

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 3,000,490 3,326,168
Profit multiplied by the standard rate of corporation tax in the UK of
25% (2022 - 19%)

750,123

631,972

Effects of:
Expenses not deductible for tax purposes 10,699 1,883
Capital allowances in excess of depreciation - (47,767 )
Depreciation in excess of capital allowances 7,269 -
Adjustments to tax charge in respect of previous periods (239,515 ) (97,395 )
Research & development claims (173,323 ) (123,500 )
Amount written off investments 38,230 131,874
Change in standard rate of tax during the year (226,456 ) -
Deferred tax movement (5,266 ) 55,654
Group relief (37,080 ) (32,621 )
Total tax charge 124,681 520,100

9. DIVIDENDS
2023 2022
£    £   
Ordinary shares of £1 each
Interim 952,106 436,402

Charlton & Jenrick Ltd (Registered number: 02037946)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

10. TANGIBLE FIXED ASSETS
Office
and Tooling
Plant and Computer Motor and
machinery Equipment vehicles Equipment Totals
£    £    £    £    £   
COST
At 1 January 2023 668,379 130,910 133,252 229,185 1,161,726
Additions 9,752 25,845 25,344 5,422 66,363
Disposals - (1,710 ) (11,555 ) - (13,265 )
At 31 December 2023 678,131 155,045 147,041 234,607 1,214,824
DEPRECIATION
At 1 January 2023 428,752 119,692 63,827 181,394 793,665
Charge for year 39,349 9,823 28,906 18,853 96,931
Eliminated on disposal - (1,710 ) (11,555 ) - (13,265 )
At 31 December 2023 468,101 127,805 81,178 200,247 877,331
NET BOOK VALUE
At 31 December 2023 210,030 27,240 65,863 34,360 337,493
At 31 December 2022 239,627 11,218 69,425 47,791 368,061

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and
machinery
£   
COST
At 1 January 2023 21,500
Transfer to ownership (21,500 )
At 31 December 2023 -
DEPRECIATION
At 1 January 2023 6,988
Transfer to ownership (6,988 )
At 31 December 2023 -
NET BOOK VALUE
At 31 December 2023 -
At 31 December 2022 14,512

Charlton & Jenrick Ltd (Registered number: 02037946)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

11. FIXED ASSET INVESTMENTS
Shares in
group
undertakin
£   
COST
At 1 January 2023
and 31 December 2023 4,267,136
PROVISIONS
At 1 January 2023 3,364,986
Provision for year 152,920
At 31 December 2023 3,517,906
NET BOOK VALUE
At 31 December 2023 749,230
At 31 December 2022 902,150

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Katell Limited
Registered office: 478 - 480 Durham Way North, Aycliffe Industrial Park, Newton Aycliffe, Co Durham, DL5 6HP.
Nature of business: The manufacture and sale of heating appliances.
%
Class of shares: holding
Ordinary £1 100.00
2023 2022
£    £   
Aggregate capital and reserves 665,135 824,013
Loss for the year (158,878 ) (183,518 )

Fireline UK Limited
Registered office: Unit D, Stafford Park 2, Telford, Shropshire, TF3 3AR
Nature of business: Dormant
%
Class of shares: holding
Ordinary £1 100.00
2023 2022
£    £   
Aggregate capital and reserves 100,000 100,000

Charlton & Jenrick China
This is a business in China that sells domestic fires.
The aggregate capital and reserves were £19,885, (2022 - (£1,967)).
The profit for the year was £21,852, (2022 - £12,520).

Charlton & Jenrick Ltd (Registered number: 02037946)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

11. FIXED ASSET INVESTMENTS - continued

Investments are not listed and are held at cost less impairment as fair value cannot be reliably
determined.
The investment in Katell Ltd is impaired due to the company making losses and its net asset position being less than cost. In the opinion of the directors, the provision in the accounts is a fair reflection of the reduction in the value of the investment.

12. STOCKS
2023 2022
£    £   
Raw materials 1,444,502 1,737,693
Work-in-progress 405 348
Finished goods 5,459,249 3,824,766
6,904,156 5,562,807

13. DEBTORS
2023 2022
£    £   
Amounts falling due within one year:
Trade debtors 1,871,464 2,220,576
Other debtors 896,491 1,298,989
Corporation tax 89,796 -
Prepayments and accrued income 84,083 6,605
2,941,834 3,526,170

Amounts falling due after more than one year:
Amounts owed by group undertakings 4,607,789 4,595,650

Aggregate amounts 7,549,623 8,121,820

The directors have reviewed the loans to group undertakings, and are now of the opinion that they will not be repaid within one year from the balance sheet date and should therefore be classed as long term.

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 16) 297,463 301,807
Hire purchase contracts (see note 17) - 2,028
Trade creditors 1,522,381 1,766,525
Corporation tax - 411,830
Social security and other taxes 98,318 99,225
VAT 345,937 638,234
Other creditors 58,634 33,312
Accruals and deferred income 598,753 455,022
2,921,486 3,707,983

Charlton & Jenrick Ltd (Registered number: 02037946)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Bank loans (see note 16) 403,390 695,782
Amounts owed to group undertakings 100,000 100,000
503,390 795,782

16. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 5,071 3,087
Bank loans 292,392 298,720
297,463 301,807

Amounts falling due between one and two years:
Bank loans - 1-2 years 286,064 292,392

Amounts falling due between two and five years:
Bank loans - 2-5 years 117,326 403,390

Included within bank loans is a CBILS loan of £695,782 (2022 - £994,503) with interest payable at 2.25% over base rate.

17. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year - 2,028

Charlton & Jenrick Ltd (Registered number: 02037946)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

17. LEASING AGREEMENTS - continued

Non-cancellable operating leases
2023 2022
£    £   
Within one year 206,525 233,919
Between one and five years 713,104 738,935
In more than five years - 95,400
919,629 1,068,254

18. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank loans 695,782 994,502
Hire purchase contracts - 2,028
695,782 996,530

The hire purchase contracts are secured on the assets to which it relates.

The company has a bank guarantee of £550,000 dated 18/06/15 relating to the mortgage granted to Katell Ltd, its subsidiary. There is also a debenture dated 27/07/1989 against all assets of the company.

19. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 79,930 85,196

Deferred
tax
£   
Balance at 1 January 2023 85,196
Credit to Profit and Loss Account during year (5,266 )
Balance at 31 December 2023 79,930

The deferred tax provision is due to accelerated capital allowances.

20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
14,751 Ordinary £1 14,751 14,751

Charlton & Jenrick Ltd (Registered number: 02037946)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

21. RESERVES
Retained Share
earnings premium Totals
£    £    £   

At 1 January 2023 11,584,373 9,853 11,594,226
Profit for the year 2,875,809 2,875,809
Dividends (952,106 ) (952,106 )
At 31 December 2023 13,508,076 9,853 13,517,929

22. ULTIMATE PARENT COMPANY

The ultimate parent undertaking and the smallest and largest group to consolidate these financial statements is Charlton & Jenrick Holdings Ltd, a company registered in England and Wales whose registered office is Unit D, Stafford Park 2, Telford, Shropshire, TF3 3AR.

23. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

During the year, the company made a short-term loan to a director of £250,000. The loan was repaid during the year and the amount outstanding at the year end was £nil. The loan was interest free and repayable on demand.