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Registered number: 11716061










CHALLS INTERNATIONAL GROUP LIMITED & SUBSIDIARIES










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
CHALLS INTERNATIONAL GROUP LIMITED
 
 
COMPANY INFORMATION


Directors
Graham Burchell 
Edwina Laurie Burchell 
Edward Lawrence Burchell (appointed 16 April 2023)




Registered number
11716061



Registered office
Unit 46 Lady Lane Industrial Estate
Hadleigh

Ipswich

Suffolk

IP7 6BQ




Independent auditors
MHA
Statutory Auditors

Moorgate House

201 Silbury Boulevard

Milton Keynes

Buckinghamshire

MK9 1LZ





 
CHALLS INTERNATIONAL GROUP LIMITED
 

CONTENTS



Page
Group Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditors' Report
 
5 - 8
Consolidated Statement of Comprehensive Income
 
9
Consolidated Balance Sheet
 
10
Company Balance Sheet
 
11
Consolidated Statement of Changes in Equity
 
12
Company Statement of Changes in Equity
 
13
Consolidated Statement of Cash Flows
 
14 - 15
Consolidated Analysis of Net Debt
 
16
Notes to the Financial Statements
 
17 - 35


 
CHALLS INTERNATIONAL GROUP LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The Directors have pleasure in presenting their report and the financial statements of the Group for the year ended 31 December 2023.

Business review
 
The principal activity of the Group is the distribution of household cleaning products.
Following the pandemic and subsequent inflationary periods, the Group has embarked on a three-year plan to stabilise, strengthen and then ultimately grow the business.
This first year has seen a number of additions to the senior management team, with both internal promotions and external appointments. 

Principal risks and uncertainties
 
The Directors continually monitor the financial health and performance of the business by reviewing monthly management accounts and key performance indicators. These include turnover, stockholding and turnover, cashflow and debtors and creditors.
The principal risks and uncertainties facing the Group are as follows:
Liquidity Risk
The Group has arranged its borrowings over a period of time so as to ensure that it has sufficient liquid resources to meet the operating needs of the business.
Credit Risk
Receivable Balances are continually monitored, and appropriate action is taken to recover them.
Price Risk
The Group carefully monitors the price of raw materials and componentry, as well as transport and labour costs. This is essential as all these costs are under continuous inflationary pressure. 

Financial key performance indicators
 
The Directors monitor the progress of the Group by reference to the following KPIs. During the year, the Group has maintained performance under these KPIs through the management strategies in place.
Gross Profit Margin: 33.89% (2022: 32.89%)
Operating Profit Margin: 1.88% (2022: -3.78%)
Stock Turnover Days: 53 (2022: 82)
Trade Debtor Days: 71 (2022: 60)
Trade Creditor Days: 43 (2022: 53)

Page 1

 
CHALLS INTERNATIONAL GROUP LIMITED
 

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

Employees
 
The Group recognises that its employees are critical to its success. The Directors therefore strive to develop its people so that they have long term, fulfilling careers. The Group promotes openness and has regular meetings to allow information to flow freely. Business updates are delivered to all staff twice a year.
Engagement levels are measured and show that staff are well motivated and feel valued. Staff levels have not changed significantly in the period. 


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


................................................
Graham Burchell
Director

Date: 26 September 2024

Page 2

 
CHALLS INTERNATIONAL GROUP LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


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

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

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

Results and dividends

The loss for the year, after taxation, amounted to £223,698 (2022 - loss £533,148).

During the year the company paid dividends of £200,000 (2022: £220,000) to the directors. 

Directors

The directors who served during the year were:

Graham Burchell 
Edwina Laurie Burchell 
Edward Lawrence Burchell (appointed 16 April 2023)

Future developments

The broad strategic direction for the Group remains the same as in prior years and that is to consolidate the
current already strong market position through continued investment in new products, salesforce training and
enhancements to the service model for the Group.

Page 3

 
CHALLS INTERNATIONAL GROUP LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

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

Post balance sheet events

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

Auditors

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

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





................................................
Graham Burchell
Director

Date: 26 September 2024

Page 4

 
CHALLS INTERNATIONAL GROUP LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHALLS INTERNATIONAL GROUP LIMITED
 

Opinion


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


In our opinion the financial statements:


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


Basis for opinion


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


Conclusions relating to going concern


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


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


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


Page 5

 
CHALLS INTERNATIONAL GROUP LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHALLS INTERNATIONAL GROUP LIMITED (CONTINUED)


Other information


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


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.


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


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Page 6

 
CHALLS INTERNATIONAL GROUP LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHALLS INTERNATIONAL GROUP LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Auditors' responsibilities for the audit of the financial statements
 

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


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

•  Discussions held with management and those charged with governance around any legal claim, frauds or   breach of laws during the year which they are aware of;
•  Audit work performed over key risks areas identified such as management override of controls and    reviewing accounting estimates for bias.
•  Review of financial statement disclosures to ensure accounting policies have been correctly followed. 


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


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


Page 7

 
CHALLS INTERNATIONAL GROUP LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHALLS INTERNATIONAL GROUP LIMITED (CONTINUED)


Use of our report
 

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




Elizabeth Newell BA (Hons) FCA (Senior Statutory Auditor)
for and on behalf of
MHA
Statutory Auditors
Milton Keynes, United Kingdom

Date: 27 September 2024
MHA is the trading name if MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313).
Page 8

 
CHALLS INTERNATIONAL GROUP LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
9,580,064
10,579,519

Cost of sales
  
(6,332,904)
(7,100,265)

Gross profit
  
3,247,160
3,479,254

Distribution costs
  
(794,916)
(1,393,369)

Administrative expenses
  
(2,218,438)
(2,548,818)

Other operating income
 5 
29,593
126,740

Other operating charges
  
(83,260)
(62,439)

Operating profit/(loss)
 6 
180,139
(398,632)

Interest payable and similar expenses
 10 
(253,924)
(156,763)

Loss before taxation
  
(73,785)
(555,395)

Tax on loss
 11 
(149,913)
22,247

Loss for the financial year
  
(223,698)
(533,148)

  

Currency translation differences
  
133,362
148,446

Total comprehensive income for the year
  
(90,336)
(384,702)

(Loss) for the year attributable to:
  

Owners of the parent Company
  
(223,698)
(533,148)

Total comprehensive income for the year attributable to:
  

Owners of the parent Company
  
(90,336)
(384,702)

There were no recognised gains and losses for 2023 or 2022 other than those included in the consolidated statement of comprehensive income.

The notes on pages 17 to 35 form part of these financial statements.

Page 9

 
CHALLS INTERNATIONAL GROUP LIMITED
REGISTERED NUMBER: 11716061

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 13 
8,162,888
8,942,693

Current assets
  

Stocks
 15 
1,092,929
1,597,426

Debtors: amounts falling due within one year
 16 
2,075,750
1,966,316

Cash at bank and in hand
 17 
72,640
173,484

  
3,241,319
3,737,226

Creditors: amounts falling due within one year
 18 
(4,110,696)
(4,565,389)

Net current liabilities
  
 
 
(869,377)
 
 
(828,163)

Total assets less current liabilities
  
7,293,511
8,114,530

Creditors: amounts falling due after more than one year
 19 
(1,756,361)
(2,388,556)

Provisions for liabilities
  

Deferred taxation
 22 
(376,216)
(274,704)

Net assets
  
 
 
5,160,934
 
 
5,451,270


Capital and reserves
  

Called up share capital 
 23 
300
300

Merger reserves
 24 
(904,248)
(904,248)

Profit and loss account
 24 
6,064,882
6,355,218

Equity attributable to owners of the parent Company
  
5,160,934
5,451,270


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 



................................................
Graham Burchell
Director
Date: 26 September 2024

The notes on pages 17 to 35 form part of these financial statements.

Page 10

 
CHALLS INTERNATIONAL GROUP LIMITED
REGISTERED NUMBER: 11716061

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Investments
 14 
300
300

Current assets
  

Debtors: amounts falling due within one year
 16 
66,701
6,261

Cash at bank and in hand
 17 
1,281
8,618

  
67,982
14,879

Creditors: amounts falling due within one year
 18 
(67,984)
(15,136)

Net current liabilities
  
 
 
(2)
 
 
(257)

Net assets
  
298
43


Capital and reserves
  

Called up share capital 
 23 
300
300

Profit and loss account carried forward
  
(2)
(257)

  
298
43


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 



................................................
Graham Burchell
Director

Date: 26 September 2024

The notes on pages 17 to 35 form part of these financial statements.

Page 11

 
CHALLS INTERNATIONAL GROUP LIMITED
 

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


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

£
£
£
£
£


At 1 January 2022
300
(904,248)
6,959,920
6,055,972
6,055,972


Comprehensive income for the year

Loss for the year
-
-
(533,148)
(533,148)
(533,148)

Currency translation differences
-
-
148,446
148,446
148,446

Dividends: Equity capital
-
-
(220,000)
(220,000)
(220,000)



At 1 January 2023
300
(904,248)
6,355,218
5,451,270
5,451,270


Comprehensive income for the year

Loss for the year
-
-
(223,698)
(223,698)
(223,698)

Currency translation differences
-
-
133,362
133,362
133,362

Dividends: Equity capital
-
-
(200,000)
(200,000)
(200,000)


At 31 December 2023
300
(904,248)
6,064,882
5,160,934
5,160,934


The notes on pages 17 to 35 form part of these financial statements.

Page 12

 
CHALLS INTERNATIONAL GROUP LIMITED
 

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


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
300
(72)
228


Comprehensive income for the year

Profit for the year
-
219,815
219,815

Dividends: Equity capital
-
(220,000)
(220,000)



At 1 January 2023
300
(257)
43


Comprehensive income for the year

Profit for the year
-
200,255
200,255

Dividends: Equity capital
-
(200,000)
(200,000)


At 31 December 2023
300
(2)
298


The notes on pages 17 to 35 form part of these financial statements.

Page 13

 
CHALLS INTERNATIONAL GROUP LIMITED
 

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

2023
2022
£
£

Cash flows from operating activities

Loss for the financial year
(223,698)
(533,148)

Adjustments for:

Depreciation of tangible assets
529,051
585,363

Profit on disposal of tangible assets
(25,665)
(6,627)

Interest paid
253,924
156,763

Taxation charge
149,913
(22,247)

Decrease/(increase) in stocks
504,497
(354,803)

(Increase)/decrease in debtors
(109,438)
741,684

(Decrease)/increase in creditors
(192,264)
97,505

Corporation tax (paid)
(293,687)
(336,945)

Foreign exchange
133,362
148,446

Net cash generated from operating activities

725,995
475,991


Cash flows from investing activities

Purchase of tangible fixed assets
(106,522)
(81,116)

Sale of tangible fixed assets
382,941
12,995

HP interest paid
(53,117)
(60,054)

Net cash from investing activities

223,302
(128,175)
Page 14

 
CHALLS INTERNATIONAL GROUP LIMITED
 

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


2023
2022

£
£



Cash flows from financing activities

Repayment of other loans
(219,800)
(283,105)

Repayment of/new finance leases
(419,517)
(187,742)

Dividends paid
(200,000)
(220,000)

Interest paid
(200,807)
(96,709)

Net cash used in financing activities
(1,040,124)
(787,556)

Net (decrease) in cash and cash equivalents
(90,827)
(439,740)

Cash and cash equivalents at beginning of year
(205,967)
233,773

Cash and cash equivalents at the end of year
(296,794)
(205,967)


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
72,640
173,484

Bank overdrafts
(369,434)
(379,451)

(296,794)
(205,967)


The notes on pages 17 to 35 form part of these financial statements.

Page 15

 
CHALLS INTERNATIONAL GROUP LIMITED
 

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




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

173,484

(100,844)

72,640

Bank overdrafts

(379,451)

10,017

(369,434)

Debt due after 1 year

(1,241,789)

124,543

(1,117,246)

Debt due within 1 year

(368,388)

36,766

(331,622)

Finance leases

(1,436,401)

419,517

(1,016,884)


(3,252,545)
489,999
(2,762,546)

The notes on pages 17 to 35 form part of these financial statements.

Page 16

 
CHALLS INTERNATIONAL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Challs International Group Limited is a private company limited by shares in England and Wales. The principal place of business and registered office is Unit 46, Lady Lane Industrial Estate, Hadleigh, Ipswich, IP7 6BQ.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

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

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

Therefore, the Group continues to recognise a merger reserve which arose on a past business combination that was accounted for as a merger in accordance with UK GAAP as applied at that time.

 
2.3

Going concern

The financial statements have been prepared on a going concern basis. The Directors have considered relevant information, including the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment. The directors have completed an analysis surrounding the companies future expected performance.
Based on the review of the assessments and forecasts and having regard to the resources available to the company and the wider group, the Directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual reports and accounts.

Page 17

 
CHALLS INTERNATIONAL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

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

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

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

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

 
2.5

Revenue

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

Sale of goods

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

Page 18

 
CHALLS INTERNATIONAL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.7

Borrowing costs

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

 
2.8

Pensions

Defined contribution pension plan

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

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

 
2.9

Current and deferred taxation

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

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

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

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 19

 
CHALLS INTERNATIONAL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using both the straight line and reducing balance methods.

Depreciation is provided on the following basis:

Freehold property
-
2 - 4% straight line
Plant and machinery
-
3%, 10% and 15% reducing balance / straight line
Motor vehicles
-
25% reducing balance / straight line
Fixtures and fittings
-
15% reducing balance / 20% straight line
Assets under construction
-
Not depreciated
Management information systems
-
33% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.11

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.12

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.13

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 20

 
CHALLS INTERNATIONAL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.14

Cash and cash equivalents

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

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

 
2.15

Creditors

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

 
2.16

Provisions for liabilities

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

Page 21

 
CHALLS INTERNATIONAL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.17

Financial instruments

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

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

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

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

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

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

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

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

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

Page 22

 
CHALLS INTERNATIONAL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.17
Financial instruments (continued)

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

 
2.18

Dividends

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


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgments, 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.
i) Debtors
An allowance for doubtful debts is maintained for potential credit losses based upon managements
assessment of expected collectability of all accounts receivable. The allowance for doubtful accounts is
reviewed periodically to access the adequacy of the allowance. In making this assessment, management
takes into consideration any circumstances of which they are aware regarding a customers inability to
meet its financial obligations.
ii) Useful economic lives of tangible fixed assets
The useful economic lives used by the company in respect of tangible fixed assets are set out in the
accounting policies. These estimates are the best estimate based on past experience and expected
performance and are regularly reviewed to ensure they remain appropriate. The net book value of
tangible fixed assets as at 31 December 2023 was £8,162,888 after a depreciation charge in the period of £529,051.
iii) Provision for slow moving and obsolete stock
Provisions are made in accordance with the Company's guidelines and are based on past experiences.
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 only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Page 23

 
CHALLS INTERNATIONAL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


Turnover

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


2023
2022
£
£

Sales
9,580,064
10,579,519


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
9,041,409
9,838,869

Rest of the world
538,655
740,650

9,580,064
10,579,519



5.


Other operating income

2023
2022
£
£

Other operating income
27,822
126,740

Ground rent receivable
1,771
-

29,593
126,740



6.


Operating profit/(loss)

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

2023
2022
£
£

Exchange differences
123,446
267,127

Depreciation of tangible fixed assets
529,051
585,363

Page 24

 
CHALLS INTERNATIONAL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


Auditors' remuneration

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


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
33,500
31,350


Fees payable to the Group's auditor and it's associates in respect of all other services was £9,075 (2022: £8,500) for the period.





8.


Employees

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


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


Wages and salaries
2,396,404
2,344,064
-
-

Social security costs
225,689
235,633
-
-

Cost of defined contribution scheme
8,208
173,313
-
-

2,630,301
2,753,010
-
-


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


        2023
        2022
            No.
            No.







Directors
3
3



All other employees
61
68

64
71

The Company has no employees other than the directors, who did not receive any remuneration (2022 - £NIL)

9.


Directors' remuneration



During the year no retirement benefits were accruing to the Directors (2022 - NIL) in respect of defined contribution pension schemes.

Page 25

 
CHALLS INTERNATIONAL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
101,637
52,221

Finance leases and hire purchase contracts
53,117
60,054

Other interest payable
99,170
44,488

253,924
156,763


11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
(7,744)
4,202


Total current tax
(7,744)
4,202

Deferred tax


Origination and reversal of timing differences
157,657
(26,449)

Total deferred tax
157,657
(26,449)


Taxation on profit/(loss) on ordinary activities
149,913
(22,247)
Page 26

 
CHALLS INTERNATIONAL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
11.Taxation (continued)


Factors affecting tax charge for the year

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

2023
2022
£
£


Loss on ordinary activities before tax
(73,785)
(555,395)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
(18,446)
(29,525)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
-
505

Capital allowances for year less than / (in excess of) depreciation
100,281
(306,748)

Provisions tax adjustment
(34,200)
(15,625)

Short term timing difference leading to an increase in taxation
128,183
192,551

Overseas tax on foreign subsidiaries
2,615
3,000

Tax Losses and other tax charge (relief)
(28,520)
133,595

Total tax charge for the year
149,913
(22,247)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


12.


Dividends

2023
2022
£
£


Dividends paid on ordinary shares to directors
200,000
220,000

Page 27

 
CHALLS INTERNATIONAL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Tangible fixed assets

Group






Freehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Assets under construction
Total

£
£
£
£
£
£



Cost


At 1 January 2023
6,955,822
4,876,156
25,000
7,741
557,061
12,421,780


Additions
30,239
42,700
-
-
33,583
106,522


Disposals
(494,942)
(2,478)
-
-
(2,941)
(500,361)



At 31 December 2023

6,491,119
4,916,378
25,000
7,741
587,703
12,027,941



Depreciation


At 1 January 2023
1,135,319
2,313,110
22,917
7,741
-
3,479,087


Charge for the year on owned assets
145,533
381,435
2,083
-
-
529,051


Disposals
(143,085)
-
-
-
-
(143,085)



At 31 December 2023

1,137,767
2,694,545
25,000
7,741
-
3,865,053



Net book value



At 31 December 2023
5,353,352
2,221,833
-
-
587,703
8,162,888



At 31 December 2022
5,820,503
2,563,046
2,083
-
557,061
8,942,693




The net book value of land and buildings may be further analysed as follows:


2023
2022
£
£

Freehold
5,353,352
5,820,503


Page 28

 
CHALLS INTERNATIONAL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2023
300



At 31 December 2023
300





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Challs International Limited
England and Wales
Ordinary
100%
Primo Manufacturing Limited
England and Wales
Ordinary
100%
Challs Australia PTY Ltd
New South Wales
Ordinary
100%
Challs USA Inc
Pittsburgh, PA
Ordinary
100%
Challs Asia PTE Ltd
Singapore
Ordinary
100%

The aggregate of the share capital and reserves as at 31 December 2023 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£
£

Challs International Limited
5,445,906
301,252

Primo Manufacturing Limited
4,609,082
(44,056)

Challs Australia PTY Ltd
(1,271,317)
(139,442)

Challs USA Inc
(2,191,606)
(119,047)

Challs Asia PTE Ltd
(1,430,473)
(222,825)

The decision was made by the directors to mothball the operations of Challs USA Inc. from May 2023.

Page 29

 
CHALLS INTERNATIONAL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Stocks

Group
Group
2023
2022
£
£

Raw materials and consumables
451,655
600,883

Finished goods and goods for resale
641,274
996,543

1,092,929
1,597,426


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


16.


Debtors

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


Trade debtors
1,852,762
1,740,545
-
-

Amounts owed by group undertakings
-
-
66,261
6,261

Other debtors
155,513
151,667
-
-

Prepayments and accrued income
67,475
74,100
440
-

Tax recoverable
-
4
-
-

2,075,750
1,966,316
66,701
6,261



17.


Cash and cash equivalents

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

Cash at bank and in hand
72,640
173,484
1,281
8,618

Less: bank overdrafts
(369,434)
(379,451)
-
-

(296,794)
(205,967)
1,281
8,618


Page 30

 
CHALLS INTERNATIONAL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

18.


Creditors: Amounts falling due within one year

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

Bank overdrafts
369,434
379,451
-
-

Bank loans
149,252
244,509
-
-

Trade creditors
890,709
1,034,487
-
-

Corporation tax
20,634
226,967
-
-

Other taxation and social security
241,154
246,235
-
-

Obligations under finance lease and hire purchase contracts
427,817
440,665
-
-

Other creditors
1,569,401
1,346,044
67,984
15,136

Accruals and deferred income
442,295
647,031
-
-

4,110,696
4,565,389
67,984
15,136



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

Bank loans
149,252
244,509

Obligations under finance lease and hire purchase contracts
427,817
440,665

577,069
685,174

Details of security provided:

Challs International Limited
Has a bank loan secured over the freehold property. HSBC Bank PLC has a legal charge over the properties at 45 & 46 Lady Lane Industrial Estate, Hadleigh, Ipswich.
Obligations under finance leases and hire purchase contracts are secured on the assets concerned.
The invoice discounting facility is secured. HSBC Invoice Finance (UK) Limited has a fixed charge on all purchased debts and a floating charge over the Company assets.
HSBC Bank PLC has a fixed and floating charge over all assets of the Company. 
Primo Manufacturing Limited
Has a bank loan secured over the freehold property. HSBC Bank PLC has a legal charge over the
property at 5/6 Lady Lane Industrial Estate, Hadleigh, Ipswich.
Obligations under finance leases and hire purchase contracts are secured on the assets concerned.
The invoice discounting facility is secured. HSBC Invoice Finance (UK) Limited has a fixed charge on all
purchased debts and a floating charge over the company assets.
HSBC Bank PLC has a fixed and floating charge over all assets of the company.
Page 31

 
CHALLS INTERNATIONAL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

19.


Creditors: Amounts falling due after more than one year

Group
Group
2023
2022
£
£

Bank loans
1,117,246
1,241,789

Net obligations under finance leases and hire purchase contracts
589,067
995,736

Other creditors
50,048
151,031

1,756,361
2,388,556



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


Bank loans
1,117,246
1,241,789

Net obligations under finance leases and hire purchase contracts
589,067
995,736

1,706,313
2,237,525

Details of security provided:

Challs International Limited
The bank loans are secured by legal mortgage over the freehold properties known as Unit 45 and Unit 46, Lady Lane Industrial Estate, Suffolk.
There is also a fixed and floating charge over all assets of the company.
Primo Manufacturing Limited
Has a bank loan secured over the freehold property.  HSBC Bank PLC has a legal charge over the property at 5/6 Lady Lane Industrial Estate, Hadleigh, Ipswich. 
Obligations under finance leases and hire purchase contracts are secured on the assets concerned.
 
The invoice discounting facility is secured.  HSBC Invoice Finance (UK) Limited has a fixed charge on all purchased debts and a floating charge over the company assets.
HSBC Bank PLC has a fixed and floating charge over all assets of the company



Page 32

 
CHALLS INTERNATIONAL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


Loans


Analysis of the maturity of loans is given below:


Group
Group
2023
2022
£
£

Amounts falling due within one year

Bank loans
149,252
244,509

Amounts falling due 1-2 years

Bank loans
118,488
122,952

Amounts falling due 2-5 years

Bank loans
318,471
303,214

Amounts falling due after more than 5 years

Bank loans
680,287
815,623

1,266,498
1,486,298



21.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2023
2022
£
£

Within one year
427,817
440,665

Between 1-5 years
589,067
995,736

1,016,884
1,436,401


22.


Deferred taxation


Group



2023
2022


£

£






At beginning of year
(274,704)
(301,153)


Charged to profit or loss
(101,512)
26,449



At end of year
(376,216)
(274,704)

Page 33

 
CHALLS INTERNATIONAL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
22.Deferred taxation (continued)







The provision for deferred taxation is made up as follows:

Group
Group
2023
2022
£
£

Accelerated capital allowances
(376,216)
(274,704)


23.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



300 (2022 - 300) Ordinary shares of £1.00 each
300
300



24.


Reserves

Merger Reserve

The merger reserve comprises of the losses accumulated by Challs Australia Pty Ltd prior to their shares being transferred from the director, Graham Burchell to Challs International Group Limited on 31 December 2022.

Profit and loss account

Profit and loss account includes all current and previous period retained profits and losses.


25.


Commitments under operating leases

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


Group
Group
2023
2022
£
£

Not later than 1 year
113,150
88,250

Later than 1 year and not later than 5 years
381,767
332,167

Later than 5 years
306,188
219,938

801,105
640,355
Page 34

 
CHALLS INTERNATIONAL GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

26.Financial commitments, guarantees and contingent liabilities

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases of £113,150 (2022 - £88,250) and £Nil  (2022 - £nil) in respect of capital commitments.


27.


Controlling party

The ultimate controlling party of the Group is Graham and Edwina Burchell by virtue of their shareholdings.

 
Page 35