IRIS Accounts Production v24.3.0.553 SC343018 Board of Directors Board of Directors 1.7.23 30.6.24 30.6.24 false true false false true false iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWhSC3430182023-06-30SC3430182024-06-30SC3430182023-07-012024-06-30SC3430182022-06-30SC3430182022-07-012023-06-30SC3430182023-06-30SC343018ns15:Scotland2023-07-012024-06-30SC343018ns14:PoundSterling2023-07-012024-06-30SC343018ns10:Director12023-07-012024-06-30SC343018ns10:Director22023-07-012024-06-30SC343018ns10:PrivateLimitedCompanyLtd2023-07-012024-06-30SC343018ns10:SmallEntities2023-07-012024-06-30SC343018ns10:AuditExemptWithAccountantsReport2023-07-012024-06-30SC343018ns10:SmallCompaniesRegimeForDirectorsReport2023-07-012024-06-30SC343018ns10:SmallCompaniesRegimeForAccounts2023-07-012024-06-30SC343018ns10:FullAccounts2023-07-012024-06-30SC343018ns10:CompanySecretary12023-07-012024-06-30SC343018ns10:RegisteredOffice2023-07-012024-06-30SC343018ns5:CurrentFinancialInstruments2024-06-30SC343018ns5:CurrentFinancialInstruments2023-06-30SC343018ns5:Non-currentFinancialInstruments2024-06-30SC343018ns5:Non-currentFinancialInstruments2023-06-30SC343018ns5:ShareCapital2024-06-30SC343018ns5:ShareCapital2023-06-30SC343018ns5:RetainedEarningsAccumulatedLosses2024-06-30SC343018ns5:RetainedEarningsAccumulatedLosses2023-06-30SC343018ns5:LeaseholdImprovements2023-07-012024-06-30SC343018ns5:PlantMachinery2023-07-012024-06-30SC343018ns5:FurnitureFittings2023-07-012024-06-30SC343018ns5:MotorVehicles2023-07-012024-06-30SC343018ns5:ComputerEquipment2023-07-012024-06-30SC343018ns5:LandBuildings2023-06-30SC343018ns5:LeaseholdImprovements2023-06-30SC343018ns5:PlantMachinery2023-06-30SC343018ns5:LandBuildings2023-07-012024-06-30SC343018ns5:LandBuildings2024-06-30SC343018ns5:LeaseholdImprovements2024-06-30SC343018ns5:PlantMachinery2024-06-30SC343018ns5:LandBuildings2023-06-30SC343018ns5:LeaseholdImprovements2023-06-30SC343018ns5:PlantMachinery2023-06-30SC343018ns5:FurnitureFittings2023-06-30SC343018ns5:MotorVehicles2023-06-30SC343018ns5:ComputerEquipment2023-06-30SC343018ns5:FurnitureFittings2024-06-30SC343018ns5:MotorVehicles2024-06-30SC343018ns5:ComputerEquipment2024-06-30SC343018ns5:FurnitureFittings2023-06-30SC343018ns5:MotorVehicles2023-06-30SC343018ns5:ComputerEquipment2023-06-30SC343018ns5:PlantMachineryns5:LeasedAssetsHeldAsLessee2023-06-30SC343018ns5:MotorVehiclesns5:LeasedAssetsHeldAsLessee2023-06-30SC343018ns5:LeasedAssetsHeldAsLessee2023-06-30SC343018ns5:PlantMachineryns5:LeasedAssetsHeldAsLessee2023-07-012024-06-30SC343018ns5:MotorVehiclesns5:LeasedAssetsHeldAsLessee2023-07-012024-06-30SC343018ns5:LeasedAssetsHeldAsLessee2023-07-012024-06-30SC343018ns5:PlantMachineryns5:LeasedAssetsHeldAsLessee2024-06-30SC343018ns5:MotorVehiclesns5:LeasedAssetsHeldAsLessee2024-06-30SC343018ns5:LeasedAssetsHeldAsLessee2024-06-30SC343018ns5:PlantMachineryns5:LeasedAssetsHeldAsLessee2023-06-30SC343018ns5:MotorVehiclesns5:LeasedAssetsHeldAsLessee2023-06-30SC343018ns5:LeasedAssetsHeldAsLessee2023-06-30SC343018ns5:CurrentFinancialInstrumentsns5:WithinOneYear2024-06-30SC343018ns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-06-30SC343018ns5:Non-currentFinancialInstrumentsns5:BetweenOneTwoYears2024-06-30SC343018ns5:Non-currentFinancialInstrumentsns5:BetweenOneTwoYears2023-06-30SC343018ns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2024-06-30SC343018ns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2023-06-30SC343018ns5:HirePurchaseContractsns5:CurrentFinancialInstrumentsns5:WithinOneYear2024-06-30SC343018ns5:HirePurchaseContractsns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-06-30SC343018ns5:BetweenOneFiveYearsns5:HirePurchaseContracts2024-06-30SC343018ns5:BetweenOneFiveYearsns5:HirePurchaseContracts2023-06-30SC343018ns5:HirePurchaseContracts2024-06-30SC343018ns5:HirePurchaseContracts2023-06-30SC343018ns5:WithinOneYear2024-06-30SC343018ns5:WithinOneYear2023-06-30SC343018ns5:Secured2024-06-30SC343018ns5:Secured2023-06-30SC343018ns5:DeferredTaxation2023-06-30SC343018ns5:DeferredTaxation2023-07-012024-06-30SC343018ns5:DeferredTaxation2024-06-30
REGISTERED NUMBER: SC343018 (Scotland)















Unaudited Financial Statements for the Year Ended 30 June 2024

for

Challenge Products Ltd

Challenge Products Ltd (Registered number: SC343018)






Contents of the Financial Statements
for the Year Ended 30 June 2024




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 4

Accountants' Report 9

Challenge Products Ltd

Company Information
for the Year Ended 30 June 2024







DIRECTORS: A M Hay
Mrs C B Hay





SECRETARY: Stronachs Secretaries Limited





REGISTERED OFFICE: 28 Albyn Place
ABERDEEN
AB10 1YL





REGISTERED NUMBER: SC343018 (Scotland)





ACCOUNTANTS: Atholl Scott
55-57 West High Street
INVERURIE
AB51 3QQ

Challenge Products Ltd (Registered number: SC343018)

Balance Sheet
30 June 2024

30.6.24 30.6.23
Notes £    £   
FIXED ASSETS
Tangible assets 4 1,230,260 952,771

CURRENT ASSETS
Stocks 240,872 173,570
Debtors 5 1,075,845 671,692
Cash at bank and in hand 75,429 26,505
1,392,146 871,767
CREDITORS
Amounts falling due within one
year

6

(905,992

)

(809,943

)
NET CURRENT ASSETS 486,154 61,824
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,716,414

1,014,595

CREDITORS
Amounts falling due after more
than one year

7

(389,871

)

(250,193

)

PROVISIONS FOR LIABILITIES 10 (239,202 ) (138,389 )
NET ASSETS 1,087,341 626,013

CAPITAL AND RESERVES
Called up share capital 2 2
Retained earnings 1,087,339 626,011
SHAREHOLDERS' FUNDS 1,087,341 626,013

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 June 2024.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 June 2024 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:
(a)ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

Challenge Products Ltd (Registered number: SC343018)

Balance Sheet - continued
30 June 2024


The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 7 October 2024 and were signed on its behalf by:




A M Hay - Director



Mrs C B Hay - Director


Challenge Products Ltd (Registered number: SC343018)

Notes to the Financial Statements
for the Year Ended 30 June 2024

1. STATUTORY INFORMATION

Challenge Products Ltd is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover
Turnover represents amounts receivable for goods sold and services rendered during the year, exclusive of value added tax.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Improvements to property - 10% on cost
Plant and machinery - 15% on reducing balance
Fixtures and fittings - 15% on reducing balance
Motor vehicles - 25% on reducing balance
Computer equipment - 33% on reducing balance

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Challenge Products Ltd (Registered number: SC343018)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

2. ACCOUNTING POLICIES - continued

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

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

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

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

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 27 (2023 - 26 ) .

4. TANGIBLE FIXED ASSETS
Improvements
Freehold to Plant and
property property machinery
£    £    £   
COST
At 1 July 2023 263,192 74,246 1,679,107
Additions - - 426,695
Disposals - - -
At 30 June 2024 263,192 74,246 2,105,802
DEPRECIATION
At 1 July 2023 - 73,543 1,021,693
Charge for year - 233 162,620
Eliminated on disposal - - -
At 30 June 2024 - 73,776 1,184,313
NET BOOK VALUE
At 30 June 2024 263,192 470 921,489
At 30 June 2023 263,192 703 657,414

Challenge Products Ltd (Registered number: SC343018)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

4. TANGIBLE FIXED ASSETS - continued

Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
COST
At 1 July 2023 58,446 36,995 47,742 2,159,728
Additions - 26,330 2,084 455,109
Disposals - (15,995 ) - (15,995 )
At 30 June 2024 58,446 47,330 49,826 2,598,842
DEPRECIATION
At 1 July 2023 41,903 26,935 42,883 1,206,957
Charge for year 2,479 8,798 2,289 176,419
Eliminated on disposal - (14,794 ) - (14,794 )
At 30 June 2024 44,382 20,939 45,172 1,368,582
NET BOOK VALUE
At 30 June 2024 14,064 26,391 4,654 1,230,260
At 30 June 2023 16,543 10,060 4,859 952,771

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and Motor
machinery vehicles Totals
£    £    £   
COST
At 1 July 2023 1,036,607 21,000 1,057,607
Additions 424,390 26,330 450,720
Transfer to ownership (262,900 ) (21,000 ) (283,900 )
At 30 June 2024 1,198,097 26,330 1,224,427
DEPRECIATION
At 1 July 2023 527,452 12,141 539,593
Charge for year 140,034 8,798 148,832
Transfer to ownership (171,329 ) (14,356 ) (185,685 )
At 30 June 2024 496,157 6,583 502,740
NET BOOK VALUE
At 30 June 2024 701,940 19,747 721,687
At 30 June 2023 509,155 8,859 518,014

5. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.6.24 30.6.23
£    £   
Trade debtors 999,707 615,352
Tax recoverable - 22,023
Prepayments 76,138 34,317
1,075,845 671,692

Challenge Products Ltd (Registered number: SC343018)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

6. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.6.24 30.6.23
£    £   
Bank loans and overdrafts 62,431 182,677
Hire purchase contracts (see note 8)
164,160

162,689
Trade creditors 272,716 211,676
Tax 130,407 26,444
PAYE 37,308 37,790
VAT 99,651 41,908
Other creditors 4,976 5,233
Directors' loan accounts 77,651 77,651
Accrued expenses 56,692 63,875
905,992 809,943

7. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
30.6.24 30.6.23
£    £   
Bank loans - 1-2 years 4,574 41,000
Bank loans - 2-5 years - 22,166
Hire purchase contracts (see note 8)
385,297

187,027
389,871 250,193

8. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
30.6.24 30.6.23
£    £   
Net obligations repayable:
Within one year 164,160 162,689
Between one and five years 385,297 187,027
549,457 349,716

Non-cancellable operating leases
30.6.24 30.6.23
£    £   
Within one year 86,175 86,175

Challenge Products Ltd (Registered number: SC343018)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

9. SECURED DEBTS

The following secured debts are included within creditors:

30.6.24 30.6.23
£    £   
Bank overdrafts 12,431 141,677
Bank loans 54,574 104,166
67,005 245,843

Challenge Products Limited granted a floating charge over the assets of the company to Clydesdale Bank PLC on 17 August 2013.

Challenge Products Limited granted a charge and a standard security over the land at Plot 7, Barra Business Park, Mounie Drive, Oldmeldrum to Clydesdale Bank PLC on 12 April 2014.

10. PROVISIONS FOR LIABILITIES
30.6.24 30.6.23
£    £   
Deferred tax 239,202 138,389

Deferred
tax
£   
Balance at 1 July 2023 138,389
Provided during year 100,813
Balance at 30 June 2024 239,202

11. RELATED PARTY DISCLOSURES

During the year, total dividends of £112,000 (2023 - £72,000) were paid to the directors .

There was no movement in the loan from Mr & Mrs Hay (Directors) during the year leaving a balance of £77,651 (2023 £77,651). This loan is unsecured, interest free and repayable on demand.

12. ULTIMATE CONTROLLING PARTY

The company is controlled by its directors.

Accountants' Report to the Board of Directors
on the Unaudited Financial Statements of
Challenge Products Ltd

The following reproduces the text of the report prepared for the directors in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Balance Sheet. Readers are cautioned that the Income Statement and certain other primary statements and the Report of the Directors are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Challenge Products Ltd for the year ended 30 June 2024 which comprise the Income Statement, Balance Sheet, Statement of Changes in Equity and the related notes from the company's accounting records and from information and explanations you have given us.

This report is made solely to the Board of Directors of Challenge Products Ltd, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Challenge Products Ltd and state those matters that we have agreed to state to the Board of Directors of Challenge Products Ltd, as a body, in this report. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Challenge Products Ltd has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Challenge Products Ltd. You consider that Challenge Products Ltd is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Challenge Products Ltd. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

As a member firm of the Institute of Financial Accountants (IFA), we are subject to its ethical and other professional requirements which are detailed at https://www.ifa.org.uk/about-us/publicinterest/memberregulations.






Atholl Scott
55-57 West High Street
INVERURIE
AB51 3QQ


7 October 2024