Registration number:
CCHG Ltd
for the Year Ended 31 December 2023
CCHG Ltd
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Profit and Loss Account |
|
Statement of Comprehensive Income |
|
Balance Sheet |
|
Statement of Changes in Equity |
|
Statement of Cash Flows |
|
Notes to the Financial Statements |
CCHG Ltd
Company Information
Directors |
C R Henderson G G Fowler I Henderson D Mutter M R Tahir |
Company secretary |
I Henderson |
Registered office |
|
Accountants |
|
Auditor |
|
CCHG Ltd
Strategic Report for the Year Ended 31 December 2023
The directors present their strategic report for the year ended 31 December 2023.
Fair review of the business
The company, trading as VPZ, operates the largest independent chain of electronic cigarette stores in the United Kingdom, through a mix of wholly owned and franchised stores throughout towns and cities across the whole of the UK, with retail operations supported by online and wholesale propositions.
As of December 2023, the company operated 163 stores, 133 owned and 30 franchise, an increase of 9 stores on the December 2022 figure of 154. The company has delivered strong, profitable growth in the year, to the extent that store sales in December 2023 were up 21.1% on a like-for-like basis compared to December 2022.
Vaping prevalence in the UK grew in 2023. According to a study by the anti-smoking charity Action on Smoking and Health (ASH) in August 2023, the proportion of the adult population in Great Britain using e-cigarettes has increased this year to 9.1%, the highest rate ever and an increase of 0.8 percentage points from 8.3% in 2022. This equates to approximately 4.7 million people (2022: 4.3 million). However, it is estimated that there are still over 6 million traditional cigarette smokers in the UK. This coupled with the UK governments ‘smoke free’ target by 2030, represents a significant opportunity to maintain business growth through converting these traditional cigarette users to vaping.
2023 has seen the continued recent trend in the UK of the increase in use of disposable vapes, which are becoming increasingly popular due to their convenience, simplicity and availability. The most commonly used type of e-cigarette device in the UK remains a refillable tank system, with 50% of current vapers reporting this type as their main device. However, disposable vapes have grown significantly again in 2023 (31% of vapers), compared with 2022 (15%). In response to this market shift, the company has continued to develop and extend its own range of refillable pod systems, which we consider offers the same benefits in terms of simplicity and convenience as disposable vapes, but with what we believe is a better vaping experience and significant cost savings compared to disposable vapes. This has allowed the company to not only participate in the disposable category growth, but to offer a more environmentally friendly and economically advantageous product to consumers.
In late 2023, the UK government launched a consultation into its twin goals of creating a smokefree generation and tackling youth vaping. Following the consultation, in January 2024 the government set out plans to outlaw the sale of disposable vapes, while taking on new powers to limit the range of flavours on offer, measures to ensure manufacturers produce plainer packaging, and change how vapes are displayed in shops. Additionally, the government announced plans in its March 2024 Budget to introduce Excise Duty on e-cigarettes in October 2026, along with a simultaneous one-off increase in Tobacco Duty to maintain the price differential. The company will continue to monitor the consultation process and developments in these areas to adhere to changes in the legislative and excise environments.
The company considers its key performance indicators to be sustainable turnover, gross margin and operating profit. Sustainable turnover, was up 28.6% from £36.0m to £46.3m, driven by a combination of an enhanced product offering in store, vaping category growth and new store openings. Gross margin rate improved to 55.0% (2022: 54.1%) due primarily to increased sales of own product compared to third party product, along with the mix of owned compared to franchise stores. Operating profit before tax was up significantly in 2023 at £3,371k compared to £859k in 2022. This was driven by increased revenues, improved margin rate and tight control of costs.
CCHG Ltd
Strategic Report for the Year Ended 31 December 2023
Principal risks and uncertainties
There are a number of risks and uncertainties which could impact on the performance of the company. The board reviews its risk management process on a periodic basis which identifies, evaluates and prioritises risk and uncertainties and reviews mitigation activities.
Sales and Profit Growth:
The principle risk is considered to be continued sales and profit growth, which could be impacted by economic conditions, consumer preferences, competitor activity, cost of raw materials and general level of inflation amongst other factors. 2023 saw the UK economy continue to experience signs of stress, with high inflation and interest rates, continued uncertainty and the prospect of recession. Although this remains a time of significant uncertainty for the economy as a whole and for the vaping category in particular, given the like-for-like sales figures above, along with increasing vaping prevalence in the UK, the directors believe the company is well positioned to continue to grow profitably in the future.
Legislative Risks:
The primary pieces of legislation covering the sale of e-cigarettes in the UK are the Tobacco and related Products Regulations (TRPR), and the Tobacco Products and Nicotine Inhaling Products (Amendment) (EU Exit) Regulations 2020. The Medicines and Healthcare products Regulatory Agency (MHRA) is the competent authority for a notification scheme for e-cigarettes, and the company has processes in place to ensure all the necessary regulations are met. The company continues to monitor closely the recent proposals to implement Excise Duty on e-cigarettes and ban disposable vapes.
Currency Risk:
The company is exposed to the risk of exchange rate movements, primarily US Dollars, on purchases of hardware imports. Sterling was less volatile against the Dollar during 2023 in comparison to the last few years, operating in a range between 1.18 to 1.31 £/$, with the lower rates negatively impacting on the import cost of goods. Currency fluctuations continue to be a risk, which the company mitigates to an extent by the use of exchange rate hedging products. The company does not use any other financial instruments as part of its financial risk management.
Inflation Risk:
Inflation rates reached a peak of 11% in early 2023 but have decreased steadily since then, however this period of inflation has had a direct impact on our cost base, notably payroll, energy, and raw material costs. The inflation risk is mitigated to the largest extent possible by regular review of supplier arrangements and tendering to ensure competitive pricing.
Liquidity Risk:
The company generated positive cashflows in 2023, and liquidity is managed by carefully monitoring the usage of banking and credit facilities, and evaluating payback periods of investments to balance against working capital.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debts.
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
CCHG Ltd
Strategic Report for the Year Ended 31 December 2023
Section 172(1) statement
Large private companies are required to report on how the directors have complied with their statutory duties under S172 of the Companies Act. These duties include acting in good faith in a way they consider would be most likely to promote the success of the Company for the benefit of its members as a whole, and in doing so, have regards to:
• the likely consequence of any decision in the long term.
• the interests of the company’s employees.
• the need to foster the company’s business relationships with suppliers, customers and others.
• the impact of the company’s operations on the community and the environment.
• the desirability of the company maintaining a reputation for high standards of business conduct.
• the need to act fairly as between members of the company.
Our policies and procedures with regards to our key stakeholders are explained in more detail below:
Customers: Our foremost priority is to our customers who support the business by selecting VPZ as their destination of choice for vaping products. We aim to offer the highest levels of customer service, striving to ensure all customers leave our stores with more product knowledge than they came in with. Customers are always front of mind when considering product range and new product development, driving us to offer the best range and quality of vaping products.
Suppliers: The company places great importance in maintaining strong relationships with their suppliers. We seek to act ethically and fairly to create long-standing relationships that are mutually beneficial.
Environment: The company is committed to preventing pollution and minimising the impact of its operations on the environment. Particularly, the last two years has seen a significant shift in the vaping sector in the UK with the increased popularity of disposable vapes. During this time, VPZ has been calling on the UK and Scottish governments for tighter licencing and controls for selling vaping products to tackle the unregulated access and the impact of disposables on youth uptake and the environment. VPZ welcomes and fully supports the government’s proposals outlined in January 2024 to ban single-use vapes across the UK. We believe that the proposed ban would provide a strong and robust solution to tackling these issues and ensuring vaping continues to help more smokers throughout the UK quit. We strongly believe that vaping has a key role to play in nation’s 2030 Smoke-Free goal, through utilising reusable vapes, which we have already been promoting instore to customers as they are more cost-effective, sustainable, and better for the environment.
As the UK's largest vaping specialist, during 2023 VPZ partnered with a leading waste management provider, WasteCare, to launch a nationwide recycling service for disposable vapes. Disposable vapes contain lithium batteries and plastic and when littered they can cause harm to the local environment.
The recycling service is now live in VPZ’s network of over 160 stores throughout the country and involves WasteCare collecting, treating and recovering disposable vapes and reusable hardware devices, meaning that vapers can now recycle their vape devices, both disposable and reusable, at a VPZ store in a safe and responsible way.
Employees: The company aims to offer fair rewards and promote from within wherever possible. We seek to recruit not just individuals with a passion for our products, but those with enthusiasm and the best attributes for the role. The company engages with our employees in a variety of ways. We run bi-annual company-wide surveys to gain insight into employee engagement, identifying areas where we can improve our performance. The results of this are published company-wide and form the basis for our people strategy each year. Weekly bulletins are sent to all stores informing staff of operational updates, along with periodic newsletters giving wider insight into the company operations.
Shareholders: Two of the three shareholders are active members of the board and are involved in the day-to-day operations of the company. The board are responsible for setting business objectives and implementing future strategy, and meet regularly to discuss all key business matters.
Likely consequences of any decision in the long-term: The directors consider both short- and long-term consequences in their decision making. Store openings and significant capital expenditures are always supported by long term return on investment and payback calculations, and are considered within the boundaries of our future working capital facilities and cashflow projections. Likewise, if we consider closing a store, it is with a view that it would have a positive impact on the company’s overall profitability in the long term. Further we believe continued investment in technology to drive efficiency and operational improvements will benefit in the long-term.
CCHG Ltd
Strategic Report for the Year Ended 31 December 2023
Streamlined Energy and Carbon Report
The Total Carbon Emissions for CCHG Limited for the year ended 31 December 2023 was 582 Tonnes CO2e.
Under the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013 and the changes introduced by the 2018 Regulations, we are obliged to report our annual UK energy use, associated greenhouse gas emissions and related information for the financial year ended 31 December 2023, along with our future for energy efficiency. The aim of the report is to further incentivise energy efficiency with the aim of reducing carbon emissions to meet climate change targets.
The data collected includes the emissions for the UK operations of CCHG Ltd. UK Government (Greenhouse Gas) Conversion Factors were used to calculate carbon emissions and offsets, from primary data (meter readings and invoices). These figures have been converted into an intensity ratio which enables us to track our progress going forward. The chosen intensity measure is kg CO2e per £100 of revenue and we consider this to be the most relevant to our energy consuming activities and provides a good comparison of performance year on year.
The table below summarises the GHG market-based emissions for reporting years December 2022 and 2023.
We have considered the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) when preparing this report. These recommendations encourage businesses to increase disclosure of climate-related information, with an emphasis on financial disclosure. CCHG Ltd supports these recommendations and are committed to disclosing the relevant information which can be found below.
Units |
2023 |
2022 |
|||
Electricity |
kwh |
1,853,953 |
1,610,348 |
||
Gas |
kwh |
265,834 |
285,244 |
||
Transport |
kwh |
598,219 |
516,401 |
||
Direct emissions from combustion of natural gas in stationary/mobile equipment |
Tonnes CO2e |
48 |
51 |
||
Direct emissions from combustion of fuel in company owned vehicles |
Tonnes CO2e |
150 |
132 |
||
Emissions from purchased electricity |
Tonnes CO2e |
384 |
311 |
||
Intensity ratio
During the year ended 31 December 2023 this was 1.26 (2022 - 1.38). |
The 2022 financial period will be used as the base period going forward, and we are delighted to have reduced our intensity ratio by 9% during the year from 1.38 last year to 1.26 this year.
We have engaged with a leading 3rd party energy consultancy for our compliance with the Energy Savings Opportunity Scheme, and for identifying energy savings opportunities. Energy consumption is monitored monthly, with each of our stores providing monthly readings and consumption data which enables us to identify unusual consumption patterns.
Approved and authorised by the
......................................... |
CCHG Ltd
Directors' Report for the Year Ended 31 December 2023
The directors present their report and the financial statements for the year ended 31 December 2023.
Principal activity
The principal activity of the company is retailing of electronic cigarettes through wholly owned and franchised operations.
An overview of the business results, and its principal risks and uncertainties, has been included in the strategic report as set out on page 2.
Directors of the company
The directors who held office during the year were as follows:
Results and dividends
The net profit for the year amounted to £2,292,221 (2022 : £465,977). During the current year a final dividend of £491,881 (2022: £979,352) was paid.
Strategic report
The company has chosen, in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch.7 to be contained in the directors' report. This has been done in respect of financial risk management which is covered in the principal risks section.
Auditor
The auditor, Johnston Carmichael LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Future developments
For 2024, the company expects to grow both retail and e-commerce sales despite an economic backdrop of cost price inflation and economic uncertainty. The company plans to continue to invest in its retail estate, both by opening new stores and refurbishing the current estate, along with continuing investment in its infrastructure and people to deliver the next phase of growth for the business.
Employee involvement
The company's policy is to consult and discuss with employees, through regular bulletins and staff meetings, matters likely to affect employees' interests. Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
Employment of disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
CCHG Ltd
Directors' Report for the Year Ended 31 December 2023
Approved by the
......................................... |
CCHG Ltd
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and 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.
CCHG Ltd
Independent Auditor's Report to the Members of CCHG Ltd
Opinion
We have audited the financial statements of CCHG Ltd (‘the company’) for the year ended 31 December 2023, which comprise the Profit and Loss, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and notes to the financial statements, including 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 Auditor 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 original financial statements were 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 other information comprises the information included in the Annual Report other than the financial statements and our auditor’s report thereon. The Directors are responsible for the other information contained within the Annual Report. 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.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
CCHG Ltd
Independent Auditor's Report to the Members of CCHG Ltd
• |
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• |
the financial statements are not in agreement with the accounting records and returns; or |
• |
certain disclosures of directors’ remuneration specified by law are not made; or |
• |
we have not received all the information and explanations we require for our audit. |
Responsibilities of Directors
As explained more fully in the Directors' responsibility statement (set out on page 8), the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor Responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Extent the audit was considered capable of detecting irregularites, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations by considering their experience, past performance and support available.
All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
We obtained an understanding of the legal and regulatory frameworks that are applicable to company and the sector in which it operates, focusing on those provisions that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include:
• Companies Act 2006;
• Corporation tax legislation;
• VAT legislation;
• UK Generally Accepted Accounting Practice;
• Tobacco and Related Products Regulations; and
• Tobacco Products an Nicotine Inhaling Products Regulations.
We gained an understanding of how the company is complying with these laws and regulations by making enquiries of management and those charged with governance. We corroborated these enquiries through our review of relevant correspondence with regulatory bodies.
CCHG Ltd
Independent Auditor's Report to the Members of CCHG Ltd
We assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management and those charged with governance oversee the implementation and operation of controls. We identified a heightened fraud risk in relation to:
• Management override of controls
• Revenue recognition
In addition to the above, the following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:
• Reviewing the level of and reasoning behind the company’s procurement of legal and professional services;
• Performing audit work procedures over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing judgements made by management in their calculation of accounting estimates for potential management bias;
• Agreeing income received via banking to store till receipts and to the sales system for store sales recorded;
• For other revenue streams we vouched from source documentation to the recording of the revenue in the general ledger;
• Completion of appropriate checklists and use of our experience to assess the Company’s compliance with the Companies Act 2006; and
• Agreement of the financial statement disclosures to supporting documentation.
Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.
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 an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
......................................
For and on behalf of
Statutory Auditor
7-11 Melville Street
EH3 7PE
United Kingdom
CCHG Ltd
Profit and Loss Account for the Year Ended 31 December 2023
Note |
2023 |
2022 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating profit |
3,405,146 |
862,756 |
|
Net loss on financial liabilities at fair value through profit and loss |
( |
- |
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar expenses |
- |
( |
|
(33,536) |
(3,611) |
||
Profit before tax |
|
|
|
Tax on profit |
( |
( |
|
Profit for the financial year |
|
|
The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
CCHG Ltd
Statement of Comprehensive Income for the Year Ended 31 December 2023
2023 |
2022 |
|
Profit for the year |
|
|
Total comprehensive income for the year |
|
|
CCHG Ltd
(Registration number: SC415497)
Balance Sheet as at 31 December 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
Investment property |
|
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Share premium reserve |
|
|
|
Other reserves |
|
|
|
Retained earnings |
|
|
|
Shareholders' funds |
|
|
Approved and authorised by the
......................................... |
......................................... |
CCHG Ltd
Statement of Changes in Equity for the Year Ended 31 December 2023
Share capital |
Share premium |
Non-distributable reserve |
Profit and loss account |
Total |
|
At 1 January 2023 |
|
|
|
|
|
Profit for the year |
- |
- |
- |
|
|
Total comprehensive income |
- |
- |
- |
|
|
Dividends |
- |
- |
- |
( |
( |
At 31 December 2023 |
|
|
|
|
|
Share capital |
Share premium |
Non-distributable reserve |
Profit and loss account |
Total |
|
At 1 January 2022 |
|
|
|
|
|
Profit for the year |
- |
- |
- |
|
|
Total comprehensive income |
- |
- |
- |
|
|
Dividends |
- |
- |
- |
( |
( |
At 31 December 2022 |
11,797 |
11,468,791 |
93,150 |
1,859,849 |
13,433,587 |
CCHG Ltd
Statement of Cash Flows for the Year Ended 31 December 2023
Note |
2023 |
2022 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Finance income |
( |
( |
|
Finance costs |
- |
|
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
Decrease/(increase) in stocks |
|
( |
|
(Increase)/decrease in debtors |
( |
|
|
Increase in creditors |
|
|
|
(Decrease)/increase in deferred income, including government grants |
( |
|
|
Cash generated from operations |
|
|
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received and similar income |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
|
|
Acquisition of intangible assets |
( |
( |
|
Net cash used by investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
- |
( |
|
Repayment of other borrowing |
- |
( |
|
Dividends paid |
( |
( |
|
Net cash from financing activities |
( |
( |
|
Net increase/(decrease) in cash and cash equivalents |
|
( |
|
Cash and cash equivalents at 1 January |
|
|
|
Cash and cash equivalents at 31 December |
4,091,684 |
898,669 |
CCHG Ltd
Notes to the Financial Statements for the Year Ended 31 December 2023
General information |
The company is a private company limited by share capital, domiciled and incorporated in Scotland.
The address of its registered office is:
Scotland
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' ("FRS 102") and the requirements of the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value. The company has not prepared consolidated accounts as its subsidiary no longer trades, and all assets were transferred to the parent company in December 2020.
The company is not directly impacted by Brexit.
The company has suffered financially from the pandemic. Where appropriate, government support in the forms of grants and loans were used to mitigate the impact of lockdowns etc. The directors will continue to assess the impact of the pandemic and make decisions accordingly.
The financial statements are presented in Sterling (£) and rounded to the nearest £1.
Going concern
At the time of approving the financial statements, the directors are not aware of any material uncertainties affecting the company and have a reasonable expectation that the company has adequate resources to continue in operational existence for a period of at least twelve months from the date of approval of these financial statements. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
CCHG Ltd
Notes to the Financial Statements for the Year Ended 31 December 2023
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects both current and future periods. |
Key sources of estimation uncertainty |
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows: |
Stock provisioning |
The company’s stock is reviewed regularly for evidence of obsolescence. Management’s estimate of the required stock provision is based on the ageing of stock, physical inspection for obsolescence and other factors such as changes in legislation. |
Carrying value of goodwill |
The useful life is based on management’s expectations of future economic benefits. The carrying value is reviewed annually for evidence of any potential changes which would indicate impairment. |
Useful life of tangible assets |
The annual depreciation charge for tangible assets is sensitive to change in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on economic utilisation, and the physical condition of the assets. |
Accrued loyalty scheme costs |
Management must estimate the potential cost of outstanding loyalty scheme customer benefits at the year end in order to determine the appropriate accrual in respect of the scheme costs at the balance sheet date. This requires a number of estimates relating to redemption rates and costs. These are reviewed annually. |
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
Sale of goods – Retail
Sale of goods are recognised at the point of delivery to the customer in store. Retail sales are usually by cash, credit or payment card.
Sale of goods – wholesale and internet based transactions
Sale of goods held in stock are recognised at the point of order.
Franchises
Non - refundable licence fees are recognised in full on invoice at the time a new franchise agreement is signed. Ongoing royalties and support fees are recognised on invoice monthly, in line with the applicable sales period.
Foreign currency transactions and balances
Non-monetary items measured in terms of historic cost in a foreign currency are not retranslated.
Tax
The tax expense represents the sum of the tax currently payable and deferred tax.
CCHG Ltd
Notes to the Financial Statements for the Year Ended 31 December 2023
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it related to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the profit and loss account.
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
CCHG Ltd
Notes to the Financial Statements for the Year Ended 31 December 2023
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Furniture, fittings and equipment |
25% straight line. |
Motor vehicles |
25% reducing balance. |
Property improvements |
20% straight line. |
Plant and machinery |
25% reducing balance. |
Investment property
Investment property is carried at fair value, derived from the current market prices for comparable release date. The value used observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in the profit and loss.
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Goodwill |
Over 10 years. |
Software |
Over 3 years. |
Assets under construction |
not currently subject to amortisation. |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
CCHG Ltd
Notes to the Financial Statements for the Year Ended 31 December 2023
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company’s balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments are not publicly traded and whose fair policies cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through the profit and loss account, are assessed for indicators or impairment at each reporting end date.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
CCHG Ltd
Notes to the Financial Statements for the Year Ended 31 December 2023
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Share based payments
The fair value of equity-settled share based payments to employees is determined at the date of the grant and is expensed on a straight-line basis over the vesting period based on the company’s estimate of shares or options that will eventually vest. Where this charge would be immaterial, no adjustment is made.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Employee Benefits
The costs of short-term employment benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
Where material, the cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Derivative financial instruments and hedging
Derivatives
Hedging
CCHG Ltd
Notes to the Financial Statements for the Year Ended 31 December 2023
Turnover |
The analysis of the company's revenue for the year from continuing operations is as follows:
2023 |
2022 |
|
Sale of goods, UK |
46,154,981 |
35,960,164 |
Sale of goods, rest of world |
120,750 |
- |
|
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
2023 |
2022 |
|
Management charges receivable |
60,445 |
60,446 |
Rent receivable |
246,187 |
204,136 |
|
|
Operating profit |
Arrived at after charging
2023 |
2022 |
|
Amortisation expense |
|
|
Auditor's remuneration |
26,250 |
23,050 |
Depreciation expense |
|
|
Foreign currency (gains) |
(39,725) |
(3,830) |
Operating lease expense - other assets |
9,592 |
21,126 |
Loss/(Profit) on disposal of tangible fixed assets |
512 |
(223) |
Rent |
3,245,355 |
3,221,598 |
Other interest receivable and similar income |
2023 |
2022 |
|
Interest income on bank deposits |
|
|
Interest payable and similar expenses |
2023 |
2022 |
|
Interest expense on other finance liabilities |
- |
|
CCHG Ltd
Notes to the Financial Statements for the Year Ended 31 December 2023
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2023 |
2022 |
||
Wages and salaries |
10,413,581 |
8,246,590 |
|
Social security costs |
967,773 |
702,358 |
|
Other short-term employee benefits |
2,596 |
812 |
|
Pension costs, defined contribution scheme |
177,258 |
133,934 |
|
11,561,208 |
9,083,694 |
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
2023 |
2022 |
|
Administration and support |
|
|
Sales |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2023 |
2022 |
|
Remuneration |
|
|
In respect of the highest paid director:
2023 |
2022 |
|
Remuneration |
|
|
Auditor's remuneration |
2023 |
2022 |
|
Audit of the financial statements |
|
|
CCHG Ltd
Notes to the Financial Statements for the Year Ended 31 December 2023
Taxation |
Tax charged/(credited) in the profit and loss account
2023 |
2022 |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
- |
( |
964,214 |
352,913 |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2023 |
2022 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of expense not deductible in determining taxable profit |
|
|
Decrease in UK and foreign current tax from adjustment for prior periods |
- |
( |
Tax increase from other short-term timing differences |
|
|
Total tax charge |
|
|
Deferred tax
Deferred tax assets and liabilities
2023 |
Asset |
Liability |
Accelerated capital allowances |
- |
|
Revaluation of investment properties |
- |
|
- |
|
2022 |
Asset |
Liability |
Accelerated capital allowances |
- |
|
Revaluation of investment properties |
- |
|
- |
|
CCHG Ltd
Notes to the Financial Statements for the Year Ended 31 December 2023
Intangible assets |
Goodwill |
Software |
Assets under construction |
Total |
|
Cost or valuation |
||||
At 1 January 2023 |
|
|
|
|
Transfers |
- |
|
( |
- |
Additions |
- |
|
- |
|
At 31 December 2023 |
|
|
- |
|
Amortisation |
||||
At 1 January 2023 |
|
|
- |
|
Amortisation charge |
|
|
- |
|
At 31 December 2023 |
|
|
- |
|
Carrying amount |
||||
At 31 December 2023 |
|
|
- |
|
At 31 December 2022 |
|
|
|
|
CCHG Ltd
Notes to the Financial Statements for the Year Ended 31 December 2023
Tangible assets |
Furniture, fittings and equipment |
Motor vehicles |
Property improvements |
Plant and machinery |
Total |
|
Cost or valuation |
|||||
At 1 January 2023 |
|
|
|
|
|
Additions |
|
|
|
|
|
Disposals |
( |
( |
( |
- |
( |
At 31 December 2023 |
|
|
|
|
|
Depreciation |
|||||
At 1 January 2023 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
Eliminated on disposal |
( |
( |
( |
- |
( |
At 31 December 2023 |
|
|
|
|
|
Carrying amount |
|||||
At 31 December 2023 |
|
|
|
|
|
At 31 December 2022 |
|
|
|
|
|
CCHG Ltd
Notes to the Financial Statements for the Year Ended 31 December 2023
Investment properties |
2023 |
|
At 1 January 2023 |
|
At 31 December 2023 |
|
Investment property is valued at open market value.
The property was valued by Paul Carr MRICS BSc (Hons) for and on behalf of Hardies Property & Construction Consultants on 14 January 2016.
The directors continue to be satisfied that the valuation continues to be appropriate at the balance sheet date.
Investments |
2023 |
2022 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 January 2023 |
|
Carrying amount |
|
At 31 December 2023 |
|
At 31 December 2022 |
|
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2023 |
2022 |
|||
Subsidiary undertakings |
||||
|
1 Huly Hill Road,
|
|
|
|
Subsidiary undertakings |
RT812 Limited
The principal activity of RT812 Limited is |
CCHG Ltd
Notes to the Financial Statements for the Year Ended 31 December 2023
Stocks |
2023 |
2022 |
|
Finished goods for resale |
|
|
Impairment of stocks
Stock is stated net of a provision for impairment of £883,293 (2022 - £904,170).
Debtors |
Current |
2023 |
2022 |
Trade debtors |
|
|
Other debtors |
|
|
Prepayments |
|
|
|
|
Cash and cash equivalents |
2023 |
2022 |
|
Cash at bank |
|
|
Creditors |
Note |
2023 |
2022 |
|
Due within one year |
|||
Trade creditors |
|
|
|
Amounts due to related parties |
|
|
|
Social security and other taxes |
|
|
|
Outstanding defined contribution pension costs |
|
|
|
Other payables |
|
|
|
Accruals |
|
|
|
Corporation tax liability |
1,008,484 |
410,121 |
|
Deferred income |
|
|
|
|
|
Loans and borrowings |
A cross-company composite guarantee exists in favour of HSBC Bank UK over CCHG Ltd and 2 of its related parties. HSBC Bank UK also hold a floating charge over CCHG Ltd.
Deferred tax and other provisions |
Deferred tax |
Total |
|
At 1 January 2023 |
|
|
Charge to profit and loss |
|
|
At 31 December 2023 |
|
|
|
CCHG Ltd
Notes to the Financial Statements for the Year Ended 31 December 2023
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme for qualifying employees. The assets of the scheme are held separately from those of the company. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Contributions totalling £
Share capital |
Allotted, called up and fully paid shares
2023 |
2022 |
|||
No. |
£ |
No. |
£ |
|
|
|
11,797 |
|
11,797 |
Obligations under leases and hire purchase contracts |
Operating leases
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023 |
2022 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
|
CCHG Ltd
Notes to the Financial Statements for the Year Ended 31 December 2023
Share-based payments |
Scheme details and movements
The movements in the number of share options during the year were as follows:
2023 |
2022 |
|
Outstanding, start of period |
|
|
Forfeited during the period |
( |
( |
Outstanding, end of period |
|
|
|
The movements in the weighted average exercise price of share options during the year were as follows:
2023 |
2022 |
|
Outstanding, start of period |
|
|
Outstanding, end of period |
|
|
|
Analysis of changes in net debt |
At 1 January 2023 |
Cash flows of the entity |
At 31 December 2023 |
|
Cash |
898,669 |
3,193,015 |
4,091,684 |
|
|
|
|
|
Related party transactions |
The key management personnel are the directors, refer to above notes for details of remuneration and benefits.
During the year certain directors advanced loans to the company, these loans are repayable on demand. At the balance sheet date the amount due to these directors was £nil (2022 - £64).
During the year certain directors were advanced loans from the company, these loans are repayable on demand. At the balance sheet date the amount due from these directors was £nil (2022 - £1,455).
During the year dividends were paid to the directors who are also shareholders totalling £320,852 (2022 - £603,320)
Summary of transactions with other related parties
CCHG Ltd
Notes to the Financial Statements for the Year Ended 31 December 2023
Financial instruments |
Currency contracts
The fair value of derivative financial instruments, measured at fair value through profit or loss, at 31 December 2023 is a liability of £59,425 (2022 - £4,109).
The amount of the change in fair value recognised in profit or (loss) for the period is £(55,316) (2022 - £Nil).
Fair value is determined using valuation techniques that utilise observable inputs. The key assumptions used in valuing the derivatives are the forward exchange rates for GBP:USD.
The company has no interest rate derivative financial instruments.
Reserves |
Called up Share Capital
This represents the nominal value of shares that have been issued.
Profit and Loss
Represents current year and prior period retained profits and losses.
Other Reserves
Represents non-distributable gains on investment property net of tax, recognised in the profit and loss account.
Share Premium Reserve
Represents the amount over the nominal value of shares issued.
Parent and ultimate parent undertaking |